Indofood Environmental Policy

Indofood’s commitment to protect the environment is reflected in its Environmental Policy.
Under this policy, the Company and its subsidiaries strive to develop and maintain the management system as well as provide resources in enabling us to:

• Adhere to the relevant rules and regulations related to environmental management;
• Take preventive measures against pollution covering water, air and soil pollution through continuous assessment and improvement of environmental practices, taking into consideration the development of regulations and new technologies to obtain positive outcomes in the conservation of resources;
• Conduct effective and efficient use of energy and natural resources;
• Conserve water and protect biodiversity, including reducing waste with “Reuse, Recycle and Recovery” principles;
• Increase employees awareness and competency in environmental management.

Since our Agribusiness Group manages oil palm plantation business activity, the Group has developed a more specific environmental policy as stated in the Sustainable Palm Oil Policy. The policy reflects our commitment in producing a safe, traceable and sustainably produced palm oil. The policy also applies to the supply chain of smallholders and third-party CPO suppliers to ensure all palm oils produced by Indofood are safe, traceable and sustainable.
Key principles of the policy are as follows:

• No deforestation, protection of High Conservation Values (“HCV”) areas and High Carbon Stock (“HCS”)
• No planting on peat regardless of depth
• No burning
• Respect for human rights, including Free, Prior and Informed Consent (FPIC)

The environmental task force is established in each operating unit. They are assigned to manage, monitor and measure, as well as report the environmental performance covering energy, GHG emissions, waste and water in their respective operating units. We build the capacity of our task force through regular environmental related trainings

Program for Pollution Control, Evaluation and Rating (“PROPER”)
PROPER is an environmental assessment, initiated by the Ministry of Environment and Forestry of the Republic of Indonesia (“MoEF”) to encourage corporate compliance with environmental performance. It covers a broad range of criteria from environmental permits and hazardous waste management to air, water pollution and environmental damage control.

In 2017, there were approximately half of Indofood operating units has been appointed by MoEF for PROPER assessment, of which four operating units were awarded green ratings for beyond compliance environmental performance. We also conduct PROPER internal self-assessment in other units across the Group to ensure our operations meet the government’s environmental requirements.

Environmental and Energy Management System
We have implemented environmental management systems that conform to international standards. We are also actively promoting good environmental and energy management practices to mitigate the impact of our operations on the environment.
As of 2017, many of our operating units were certified to ISO 14001 for Environmental Management System and several of them were certified to ISO 50001 for Energy Management System.