Sustainability Report
Sustainability Approach
Overview
Sustainability Strategy and Governance
Alignment with SDGs
Environmental Stewardship
Overview
Environmental Policy
Environmental Management System
Environmental Assessment by Government
Climate Change and GHG Emissions
Energy Management
Water Management
Waste Management
Packaging and Plastic Waste Management
Biodiversity and Sustainable Plantations
Resilience in Delivering Food for All
Overview
Product Safety, Quality, and Halal
Products with Improved Nutritional Level
Responsible Marketing and Communications
Sustainable and Responsible Sourcing
Socio-Economic Inclusion
Resilience and Innovation
Stronger Together with Our People and Communities
Overview
Labor Practices and People Development
Ensuring Occupational Health and Safety
Developing Our Communities
Sustainable Procurement

We are very active in engaging with and influencing the practices used by our suppliers. Our Sustainable Procurement Policy and Responsible Supplier Guidelines encourage suppliers to integrate environmental and social considerations into their business activities, and our key suppliers receive training on the Guidelines on an ongoing basis. The Principles of the Policy and Guidelines are as follows:

  • Conduct business responsibly, upholding integrity and transparency;
  • Understand and comply with all applicable laws and regulations;
  • Ensure fair business relations without engaging in bribery and corruption;
  • Respect for labor and human rights;
  • Prohibit child labor;
  • Prohibit all forms of forced labor;
  • Provide a safe and healthy workplace;
  • Conduct environmental sustainability and comply with all applicable environmental laws and regulations;
  • Provide products and services that meet the prevailing standards of quality and safety.


In the Indofood Group the practice of supplier audit has been led by our Agribusiness Group, and environmental and social considerations are being included in our supplier audits program for other parts of the Group, in line with our Sustainable Procurement Policy and Responsible Supplier Guidelines.

Our Agribusiness Group’s Sustainable Agriculture Policy commits all plantation estates (nucleus and plasma), mills, and third-party CPO suppliers to practices recognized by the Indonesian Sustainable Palm Oil (ISPO). As more than 70% of our refinery CPO supply is from our own mills, we focus our Policy compliance audit on our internal supply chains. Besides compliance to our Policy, our assessments also focus on:

  • Agronomy (Good Agricultural Practices, yield, soil health, crop protection);
  • Responsible operations (safety, biodiversity, peatland, fire risk, human rights, community engagement, Free Prior and Informed Consent (FPIC));
  • Efficiency of operations (energy and water consumption, Greenhouse Gas (GHG) emissions, waste); and
  • Compliance with Government Regulation and ISPO certifications.

 

Further, human rights assessments in the Agribusiness Group are completed, based on the Sustainable Agriculture Policy, the ISPO certification, and the Indonesian Government Regulation and their ratified International Labour Organization (ILO) Conventions. Our certified internal auditors conduct these internal audits twice a year and we undergo annual external audits by independent bodies on our operation units that are ISPO-certified. We also regularly engage with our third-party CPO suppliers to ensure their compliance with our Policy. Major findings and recommendations are communicated and followed-up.