PT FKS Multi Agro Tbk
Climate Impact & Sustainability Data (2021, 2022, 2023)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Food security
- Community welfare
- Food safety and hygiene
- Employee engagement
- Environmental responsibility
Environmental Achievements
- Reduced CO2 emissions by 36% in 2021 through port handling revitalization
- Significantly reduced spillage/waste through port handling revitalization and terminal clustering
- Increased warehouse productivity from 800 tons/day (3 shifts) to 1200 tons/day (1 shift) through efficient operations
Social Achievements
- Achieved zero accidents in operations
- More than 90% of employees and their families fully vaccinated against COVID-19
- Improved employee engagement to 1060 hours/year (310 hours above target)
- Launched customer appreciation program, Bola Bonanza 2021
- Commenced construction of Tempe Park, an educational concept park
Governance Achievements
- Implemented anti-corruption policies and obtained ISO 37001:2016 certification
- Established a sound system for risk oversight
- Effective implementation of Good Corporate Governance (GCG)
Climate Goals & Targets
Long-term Goals:
- Maintain sustainable growth of the Company and its subsidiaries
Medium-term Goals:
- Continue expansion projects in logistics unit, improve facilities, expand market share, accelerate digitalization projects
Short-term Goals:
- Increase sales volume by 7.0%-7.5% in 2022
Environmental Challenges
- Low prices of eggs and chickens impacting independent farmers
- Fluctuations in feed ingredient prices causing unstable demand
- Uncertainty in domestic corn harvest and policies on alternative raw materials
- High logistics costs
- Competitiveness of Indonesian poultry products
- COVID-19 pandemic causing supply chain disruptions and uncertainties
Mitigation Strategies
- Built Integrated Warehouses to improve efficiency and reduce costs
- Improved risk management to reduce cost of revenue
- Expanded transportation fleet for port-to-door delivery
- Implemented strict health protocols and vaccination campaigns
- Developed automated scheduling system and time monitoring system for efficient warehouse operations
- Implemented technology-based transportation management system (TMS)
Supply Chain Management
Responsible Procurement
- Strict supplier selection
- Supplier code of conduct
- Environmentally friendly procurement practices
- Considering welfare of local communities
- Sourcing sustainability certified soybeans (SSAP)
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI Standards: Core Options
Certifications: ISO 37001:2016, ISO 9001:2015
UN Sustainable Development Goals
- Goal 2: Zero Hunger
- Goal 9: Industry, Innovation and Infrastructure
Company's operations contribute to food security and sustainable agriculture (Goal 2) and building durable infrastructure (Goal 9).
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:6,895,566 kg CO2-eq (Scope 1); 6,472,674 kg CO2-eq (Scope 2)
Scope 1 Emissions:6,895,566 kg CO2-eq
Scope 2 Emissions:6,472,674 kg CO2-eq
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:158.61 TJ
Water Consumption:30,006 m3
Waste Generated:445 metric tons (Non-Hazardous); 33.80 metric tons (Hazardous)
Carbon Intensity:Not disclosed
ESG Focus Areas
- Food Safety and Food Security
- Healthy, Safe and Comfortable Workplace
- Environmental Management
- Community Development
Environmental Achievements
- Reduced energy consumption by more than 18% at FKS Multi Agro Semarang Branch.
- Planting of 200 mangrove seedlings in Semarang.
- Revitalization of ports, increasing loading/unloading speed by 233% and reducing congestion.
Social Achievements
- Increased agricultural productivity and provided employment opportunities for more than 500 farmers in Jambi through Water Saturated Cultivation.
- 100% of teachers and students benefited from Higher Thinking Order Skills workshops.
- Zero workplace fatalities and heavy injuries.
Governance Achievements
- Conveying the Code of Ethics to 100% of employees.
- Implementing a whistleblowing policy.
- Implementing an effective internal audit process.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Global market instability due to global recession and conflicts in Eastern Europe.
- Irregular arrival of customer trucks, leading to slower loading processes.
Mitigation Strategies
- Implementing adaptive strategies and sustainable practices (optimizing logistics, upgrading warehouses, building modern infrastructure).
- Implementing a Delivery Management System (DMS).
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Prioritizing suppliers with sustainability certificates.
- Considering environmental, social, and economic impacts.
Climate-Related Risks & Opportunities
Physical Risks
- Rising sea levels and storm disasters impacting port infrastructure.
- Increased risk of damage to stored raw materials due to higher temperatures.
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI 2021 Standards, POJK 51/POJK.03/2017
Certifications: ISO 9001 (one warehouse)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 2 (Zero Hunger)
- SDG 8 (Decent Work and Economic Growth)
Supporting food security, sustainable agriculture, and providing employment opportunities.
Sustainable Products & Innovation
- Ready-to-serve tempeh.
- Soy milk ice cream.
- Tempeh chips.
Awards & Recognition
- 48th position in Fortune 100 Indonesia’s Biggest Corporations.
- PEFINDO rating of 'A'
- Zero Accident awards for several units.
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:12,570 tCO2e/year
Scope 1 Emissions:7,613 tCO2e/year
Scope 2 Emissions:4,957 tCO2e/year
Renewable Energy Share:0.02%
Total Energy Consumption:136,863 GJ/year
Water Consumption:5,773 m3/year
Waste Generated:480.9 tons/year
Carbon Intensity:0.00194 tonCO2eq/ton of product
ESG Focus Areas
- Food Safety and Food Security
- Environmental Management
- Healthy, Safe, and Secure Workplace
- Community Development
Environmental Achievements
- Reduced energy consumption by 10.6% (from 153,288 GJ in 2022 to 136,863 GJ in 2023)
- Reduced water consumption (from 7,885 m3 in 2022 to 5,773 m3 in 2023)
- Waste reduction (from 478.9 tons in 2022 to 480.9 tons in 2023)
- Planted 1,500 mangrove seedlings in Maron Beach, Semarang
- Implemented a Waste Management Program in collaboration with Waste4Change, processing 11,613 kg of waste
Social Achievements
- Implemented a comprehensive onboarding process for new employees
- Provided training and development programs for employees, including the Leadership Essentials Acceleration Program (LEAP)
- Maintained employee wages above the Provincial Minimum Wage
- Implemented a Performance Appraisal Management System (PMS)
- Conducted various community development programs such as the Inspirational Teacher Festival, Literacy and Numeracy Olympics, Tempe Park Project, and Tanjung Jabung Timur Project
Governance Achievements
- Implemented a whistleblowing system (FKS SpeakUp)
- Obtained ISO 37001:2016 certification for Anti-Bribery Management System
- Implemented a clear and transparent procedure related to conflicts of interest
Climate Goals & Targets
Environmental Challenges
- Global economic slowdown impacting sales volume and commodity prices
- Ensuring product quality and safety
- Maintaining supply chain resilience
- Product and service innovation
- Implementing environmental programs
- Maintaining a safe and comfortable working environment
- Implementing community empowerment programs with measurable positive impact
Mitigation Strategies
- Leveraging business collaborations to attain maximum efficiencies and operational excellence
- Implementing comprehensive digitalization to integrate operational activities
- Investing in extending conveyor belt lines at Integrated Warehouses to improve cargodoring performance and minimize food loss
- Implementing a stringent management system to meet food safety and quality standards
- Appointing ESG Champions to catalyze the promotion of programs related to the environment
- Implementing a dynamic risk management system
- Conducting regular employee training and development programs
Supply Chain Management
Responsible Procurement
- Prioritizing soybean suppliers with sustainability certificates
- Encouraging other raw material suppliers to adopt sustainable practices
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI Standards 2021, SEOJK No. 16/SEOJK.04/2021, Sustainable Development Goals (SDGs)
Certifications: ISO 9001:2015 (Quality Management System), ISO 37001:2016 (Anti-Bribery Management System)