Climate change and global warming are risks that Indofood has identified and analyzed through our Enterprise Risk Management processes; these risks are evaluated and integrated within our business strategy. Increasingly unpredictable weather patterns and increasing occurrence of natural disasters are hallmarks climate change risk.

Some of these events, such as erratic rainfall, prolonged droughts, floods, declining ground water levels, and wildfires, have a direct and often adverse impact on our operations, assets, and supply chains. These include shortages of key raw materials, disruption to production, water shortages at our production facilities and at our farmer partners’ operations, volatility in the price of raw materials including packaging, and other transition risks in making agricultural practices more sustainable. Indofood must innovate to address changing needs and demands, through mitigation and adaptation solutions.

Mitigation includes:

• Increasing our use of renewable energy, energy efficiency, and overall reduction of GHG emissions;
• Water risk assessments, water use efficiency, and habitat restoration efforts;
• Specifically, in our Agribusiness Group, mitigation includes protecting forests, peatland, biodiversity, fire control and partnerships with community groups.

Adaptation includes:

• Stockpiling raw materials, diversifying suppliers and establishing contingency plan and insurance for foreseeable emergencies;
• In our Agribusiness Group, we improved our weather forecasting, our fire protection in the dry season, and drainage systems in the wet season.

See our Sustainability Report for GHG emissions across the product life cycle, as well as other air emissions