Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Improved water efficiency by 10.2% at Cikande feed mill unit through rainwater harvesting.
• Significantly increased the digestibility of nitrogen and phosphorus in fish and shrimp feed, minimizing waste.
• 99% of poultry and aquaculture operations run by coal-free energy.

Social Achievements

• Maintained open communication with employees through various forums, fostering engagement.
• Developed a Talent Management System to identify leadership needs and potential leaders.
• Implemented various initiatives to support farmer partners, ensuring income certainty.

Governance Achievements

• Established a Sustainability Committee to strengthen commitment to sustainability.
• Implemented a comprehensive Occupational Health and Safety Management System.
• Upholds ethical values in business operations through good corporate governance principles.

Climate Goals & Targets

Environmental Challenges

• Oversupply of Day-Old-Chicks (DOCs) and decreased demand for poultry products due to the Covid-19 pandemic.
• Impact of Covid-19 on consumer demand and purchasing power.
• Water scarcity issues in some operational areas.

Mitigation Strategies

• Focused on improving efficiency and profitability.
• Provided education to farmers and fish farmers to maintain product competitiveness.
• Reviewed capital expenditure, prioritizing short-to-medium term investments and tighter cash management.

Supply Chain Management

Responsible Procurement

• Strict qualifications for raw materials.
• Supplier Code and Japfa Code of Conduct.
• Requirement for BAP Certification for aquaculture partners.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, POJK No. 51/POJK.03/2017

Certifications: ISO 9001:2015, ISO 14001:2015, Halal Certification (MUI)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 4: Quality Education
• Goal 12: Responsible Consumption and Production

Initiatives contribute to alleviating hunger, promoting education, and achieving sustainable consumption and production.

Sustainable Products & Innovation

• Seafood Lovers product line

Awards & Recognition

• Indonesia Green Award (IGA) 2020 (SI REPI waste bank)

Environmental Metrics

ESG Focus Areas

• Improving Nutrition
• Efficient Production System
• People Development

Environmental Achievements

• Construction of three water recycling plants (Lampung, Wonoayu, and Pemalang), bringing the total to five.
• Transitioning to closed-house poultry systems to mitigate climate change risks.
• Expanded use of solar panels in Vietnam for three feed mills.
• Increased use of biomass energy sources (rice husks, wood waste, candlenut shells, palm kernels).

Social Achievements

• Established Japfa The Learning Center (JTLC) for employee training and development.
• Launched a Supplier Code of Conduct.
• Secured the Group's first sustainability-linked loan.
• Implemented Japfa Sustainability Targets with environmental and social goals, including Net Zero by 2050.
• JAPFA for Kids program assisted 12 elementary schools, impacting 2,341 students and 165 teachers.

Governance Achievements

• All directors completed mandatory sustainability training (42 hours).
• Established a Sustainability Committee to oversee sustainability-related issues, including climate-related risks and opportunities.
• Implemented a Supplier Code of Conduct.
• Developed a Sustainability-related Investment Guideline.

Climate Goals & Targets

Environmental Challenges

• High production costs due to high raw material costs and inflation.
• Lower consumer purchasing power due to global inflation.
• Water scarcity in some operational areas.
• Climate change impacts on poultry health and operational efficiency.
• Social unrest in Myanmar impacting food access and supply chain.
• Deforestation risk in the supply chain.

Mitigation Strategies

• Implementing closed-house poultry systems.
• Investing in research and development for efficient feed and livestock production.
• Improving energy efficiency through automation and digitalization.
• Utilizing renewable energy sources (biomass).
• Implementing water and wastewater management strategies (rainwater harvesting, wastewater treatment plants, water recycling facilities).
• Waste reduction and recycling initiatives.
• Initiated a Supplier Survey to raise sustainability awareness.
• Working with trusted suppliers to mitigate supply chain disruptions in Myanmar.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Supplier engagement survey
• Responsible sourcing requirements (country of origin, due diligence, etc.)
• Traceability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat, rain, floods, typhoons affecting livestock.
• Water scarcity

Transition Risks

• Changes in raw material costs
• Regulatory changes

Opportunities

• Development of energy-efficient products and processes
• Use of renewable energy sources
• Water recycling and conservation

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

Certifications: ISO 22000:2018, HACCP, NABL Accreditation, Good Manufacturing Practices, Best Aquaculture Practices, ISO 9001, Halal, FSSC 22000, MSC CoC, BRC Certification, BIS Certification, Good Farming Practices, VietGAP, ISO 450001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2: Zero Hunger

Providing affordable nutritious proteins, improving nutrition knowledge, and supporting community food security.

Sustainable Products & Innovation

• Ayam ulu (affordable ayam kampung alternative)
• Local shrimp broodstock
• Biofloc aquaculture system
• New feed packaging using less material

Awards & Recognition

• Apresiasi GERMAS award from the Ministry of Health, Indonesia

Environmental Metrics

ESG Focus Areas

• Food security
• Efficient Production System
• People Development
• Improving Nutrition

Environmental Achievements

• Completed 8 out of 9 water recycling facilities (on track to meet Sustainability-Linked Bond commitment)
• Initiated Life Cycle Assessment (LCA) for swine operations in Vietnam
• Enhanced Japfa Sustainability Reporting System (JSRS) with digital database and analytics
• Embedded sustainability into the Japfa Capital Commitment (CapCom) System
• 21% reduction in coal consumption in PT Japfa Tbk poultry and aquaculture operations compared to 2022

Social Achievements

• Enhanced Japfa for Kids programme with individual school focus and impact assessment, reaching 13,060 students and 1,050 teachers
• Improved traceability in product labels (16% in 2023)
• Reduced customer complaints significantly to 7% in 2023
• Santosa untuk Anak Nusantara (SAN) programme reduced stunting by 17.1%
• Increased number of respondents in materiality survey to 274 (from 259 in 2022)

Governance Achievements

• Established comprehensive action plans aligned with sustainability goals
• Implemented Supplier Code of Conduct and conducted a supplier sustainability survey
• No material impact corruption cases reported in 2023
• Head of Internal Control completed Sustainability and Climate Risk course

Climate Goals & Targets

Environmental Challenges

• Unpredictable weather, geopolitical tensions disrupting global food supply chains
• Reduced demand for protein staples in emerging markets due to economic uncertainty and inflation
• Rising costs of raw materials due to climate-related events and geopolitical events
• Global pressure on CO2 emissions from animal protein industry
• Water scarcity in operational areas

Mitigation Strategies

• Implemented closed-house systems for poultry operations to mitigate extreme heat
• Prioritised use of local raw materials to reduce logistics carbon footprint and enhance supply chain resilience
• Developed local poultry breeds to meet consumer preferences and adapt to climate change
• Implemented improved water management systems, including water recycling facilities
• Strengthened biosecurity protocols to mitigate risks of diseases

Supply Chain Management

Supplier Audits: More than 50% of assessed suppliers confirmed no association with deforestation, implemented Environmental Management Systems, and integrated sustainability practices.

Responsible Procurement

• Supplier Code of Conduct
• Certificate of Origin for raw materials
• Focus on suppliers certified for traceability and sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Flooding
• Water scarcity

Transition Risks

• Climate-related reporting obligations
• Increased costs of raw materials
• Changes in market conditions
• Reputational risks

Opportunities

• Resource efficiency
• Energy source diversification
• Product and service development
• Market expansion
• Resilience enhancement

Reporting Standards

Frameworks Used: GRI Standards, GRI’s Sector Standards for Agriculture, Aquaculture, and Fishing, TCFD Recommendations

Certifications: ISO 45001, ISO 9001, ISO 14001, FSSC 22000, Halal, BAP

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

Japfa's initiatives contribute to food security, economic growth, resource efficiency, and climate change mitigation.

Sustainable Products & Innovation

• Ayam Kampung Super (Indonesia)
• Colour bird (Vietnam)