Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Value
• Environmental Conservation
• Community Empowerment

Environmental Achievements

• Replaced coal with palm shells in boilers
• Reduced waste through increased production efficiency and recycling
• Implemented waste sorting and management for hazardous and non-hazardous waste
• Implemented greening initiatives around factories and farms

Social Achievements

• Implemented CSR programs focusing on education, health, infrastructure, culture, and economy
• Distributed 589,560 eggs through CSR activities
• Maintained low employee turnover (0.88%)
• Provided various training programs for employees

Governance Achievements

• Established core documents for GCG (Code of Corporate Governance, Code of Conduct, Board Manual, Code of Group Governance)
• Implemented regular GCG evaluations and follow-up actions
• Established an anti-fraud program
• Strengthened internal control and risk management

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact
• Limited resources
• Meeting stakeholder expectations
• Employee awareness of sustainable business practices
• Climate change impacts (extreme weather, disease outbreaks)

Mitigation Strategies

• Implemented resource efficiency strategies (energy, water)
• Exceeded regulatory requirements
• Created shared value (CSV)
• Expanded business investments through centralization
• Implemented various transformations and pilot projects
• Developed alternative sourcing strategies for raw materials
• Implemented biosecurity measures in farms
• Provided regular training and education to employees and farmers

Supply Chain Management

Supplier Audits: Evaluated every 3 months, targeting 70-80% compliance with Sustainable Sourcing Policy

Responsible Procurement

• Sourcing Policy with sustainability requirements
• Prioritization of local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting raw material availability
• Disease outbreaks

Opportunities

• Development of alternative sourcing strategies for raw materials

Reporting Standards

Frameworks Used: OJK Regulation No. 51/POJK.03/2017

Certifications: ISO 9001:2015, ISO 22000:2018, SNI Conformity Certificate for DOC

Awards & Recognition

• Various K3 awards (Occupational Health and Safety)
• PROPER Biru (environmental management)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved PROPER Blue award for Cikande and Makassar plants for environmental management efforts.
• Used palm kernel shells as a substitute for coal for energy efficiency.

Social Achievements

• Received multiple Occupational Health and Safety (OHS) awards for zero accidents and COVID-19 prevention programs.
• Implemented Corporate Social Responsibility (CSR) programs in education, infrastructure, health, economy, and culture with Rp7,274 million in partnership costs.

Governance Achievements

• Received an unmodified opinion on the financial statements from the external auditor.
• Implemented a Whistleblowing System.

Climate Goals & Targets

Environmental Challenges

• Weakening purchasing power of the community.
• Fluctuating poultry commodity prices.
• Global economic slowdown due to new COVID-19 variants and the Russia-Ukraine conflict.
• Global supply chain disruptions and high inflation.

Mitigation Strategies

• Increased production efficiency through the use of latest technology.
• Opened a new Poultry Slaughterhouse (RPHU) and sold its products to the Company's fried chicken restaurant business to mitigate oversupply and price issues.
• Prioritized capital expenditure on essential and urgent projects.
• Expanded into downstream businesses like the Sunny’chick fried chicken restaurant.
• Strengthened integration of business segments.

Supply Chain Management

Responsible Procurement

• Collaboration with 790 local suppliers (92.18% of total suppliers).

Climate-Related Risks & Opportunities

Awards & Recognition

• PROPER Blue
• Multiple OHS awards

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Plant Cikande and Plant Makassar received the PROPER Blue award for environmental management.
• Reduced water consumption by 15.82% compared to 2022.
• Reduced hazardous waste by 14.52% compared to 2022.
• Successfully replaced coal with palm kernel shells as boiler fuel.

Social Achievements

• Disbursed Rp5,529 million in CSR funds.
• Implemented partnership-based community empowerment programs with Rp4,102 million in costs.
• Achieved a Customer Satisfaction Survey score of 84.7%.
• Average employee training hours reached 12.03 hours per employee.

Governance Achievements

• No corruption-related incidents occurred.
• Implemented a Whistleblowing System.
• Successfully completed the first export of frozen chicken and processed poultry products to Singapore.

Climate Goals & Targets

Environmental Challenges

• Rising feed maize prices and declining chicken selling prices.
• Avian influenza (AI) cases.
• Scarcity of raw materials.
• Fluctuations in live bird prices.
• Global economic turmoil due to the Russia-Ukraine war.
• Climate change impacts (e.g., extreme weather events).

Mitigation Strategies

• Improved employee training.
• Promoted technology use (mobile and data integration).
• Strengthened downstream businesses.
• Educated farmers on the importance of animal protein.
• Maximized Poultry Slaughterhouse (RPHU) operations.
• Increased exports.
• Imported raw materials from abroad.
• Researched and developed substitute raw materials.
• Implemented biosecurity measures.
• Used palm kernel shells as a more environmentally friendly fuel.

Supply Chain Management

Supplier Audits: Evaluated every 3 months; target is 100% compliance with Sustainable Sourcing Policy.

Responsible Procurement

• Sustainable Sourcing Policy
• Prioritization of local suppliers (96.32% in 2023).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting corn supply and causing disease outbreaks.

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI Standards, POJK No. 51/POJK.03/2017, SEOJK No. 16/SEOJK.04/2021

Certifications: PROPER Blue (Plant Cikande & Makassar), SMK3 Gold Flag, ISO 9001:2015, ISO 22000:2018, Halal Certifications, CPPB, NKV

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

Malindo's initiatives contribute to these goals through various programs and practices.

Awards & Recognition

• PROPER Blue (Plant Cikande & Makassar)
• Various safety and health awards from Indonesian government agencies.