Climate Change Data

PT INDOFOOD SUKSES MAKMUR Tbk

Climate Impact & Sustainability Data (2019)

Reporting Period: 2019

Environmental Metrics

Renewable Energy Share:>50%

ESG Focus Areas

  • Environmental Stewardship
  • Labor Practices, Occupational Health and Safety Practices
  • Social and Community Development
  • Delivering Responsible Products

Environmental Achievements

  • Three operating units rated Green in PROPER assessment, exceeding compliance levels.
  • Over half of Indofood's total energy use derived from renewable energy sources.
  • 503,000 tonnes of certified CPO production under ISPO requirements (71% of total nucleus CPO production).

Social Achievements

  • Harmonious industrial relations maintained with labor unions.
  • Various training programs implemented to improve employee competency and organizational competitiveness.
  • Indofood Nutrition Care program provided free education and healthcare services in remote areas.

Governance Achievements

  • Good Corporate Governance policies developed in line with Indonesian laws, regulations, and GCG principles.
  • Audit Committee and Nomination and Remuneration Committee met regularly and made relevant recommendations.
  • Implementation of ERM framework to identify, measure and manage risks.

Climate Goals & Targets

Medium-term Goals:
  • Achieve ISPO certification for all nucleus estates by 2023.

Environmental Challenges

  • Weak commodity prices (CPO, wheat).
  • Intensifying competition in FMCG industry.
  • Declines in CPO production due to replanting programs and lower supply from smallholders.
Mitigation Strategies
  • Product portfolio optimization, new product launches, and effective brand campaigns.
  • Capacity expansion in dairy and flexible packaging facilities, new seasoning factory.
  • Cost-reduction initiatives, strategic expansion of Surabaya refinery, competitive pricing.

Supply Chain Management

Responsible Procurement
  • Partnerships with local farmers and suppliers.
  • Diversification of raw material supplies.
  • Halal requirements for all suppliers and partners.

Climate-Related Risks & Opportunities

Physical Risks
  • Erratic rainfalls, prolonged droughts, floods, declining ground water levels, wildfires.

UN Sustainable Development Goals

  • Goal 1: No Poverty
  • Goal 2: Zero Hunger
  • Goal 13: Climate Action

Various initiatives such as Pojok Selera, SUN Movement, and environmental stewardship programs contribute to these goals.

Awards & Recognition

  • CSA Award 2019
  • Indonesian Biodiversity Conservation Trust Fund (KEHATI) – Constituent of Sustainable Responsible Investment (SRI) – KEHATI INDEX 2019
  • Bank Indonesia Award 2019
  • Indonesia The Best PR 2019
  • PR Indonesia Award 2019
  • Social Business Innovation Award 2019
  • University of Indonesia Awarding Night 2019
  • CECT Sustainability Awards 2019
  • The 8th Indonesia Inhouse Magazine Awards 2019
  • SWA 100 Best Wealth Creator ASEAN Best Public Companies 2019
  • 100 Best Listed Companies Awards 2019
  • the 11th IICD Corporate Governance Conference and Award
  • Subroto Award 2019
  • Most Chosen Brand 2019
  • BrandZ Top 50 Most Valuable Indonesian Brands 2019
  • Indonesia WOW Brand 2019
  • The Indonesia’s Most Valuable Brands
  • Halal Award 2019
  • Tempo Country Contributor Award 2019
  • Indonesia Living Legend Brand