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