Indofood

Lobbying
Indofood discloses a list of trade associations of which it is a member.

Stakeholder engagement
Indofood discloses an overview of the issues raised during its stakeholder engagement activities along with frequency and channels it uses to engage with its stakeholder groups. Furthermore, its stakeholder engagement covers nature, nutrition, and social issues.

Sustainability strategy and accountability
Indofood discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy.

Ecosystem conversion and restoration
Indofood has a commitment to minimise ecosystem conversion.

Resource exploitation and circularity performance
Indofood discloses activities to improve soil health or agrobiodiversity in its production or sourcing practices.

Solid and air pollution
Indofood is reducing the production of hazardous waste. It also demonstrates commitment to plastic use reduction and transitioning towards sustainable packaging.

Water
Indofood reports how much water is withdrawn for its own operations in water-stressed areas and discloses its processes for managing and monitoring discharge water quality.

Indigenous Peoples’ and land rights
Indofood is committed to respect Indigenous Peoples’ rights. Also, the company discloses its processes to identify and recognise the rights of Indigenous Peoples when activities in its own operations may impact their rights, and describes how it obtains Indigenous Peoples’ free, prior and informed consent.

Act ethically
Indofoodhas a grievance mechanism for stakeholders to raise concerns and complaints regarding bribery and corruption.

Provide and promote decent work
Indofood discloses that 48% of its workers are covered by collective bargaining agreements. Furthermore, it reports the proportion of its total direct operations workforce for each employee category by age group, gender, and educational level.

Respect human rights
Indofood has a publicly available policy statement committing it to respect human rights.

Lobbying
While the company states its alignment with the UNGC, it has an opportunity to disclose a clear and detailed framework for assessing alignment of its trade associations with its sustainability targets and to report (potential) misalignments.

Sustainability strategy and accountability
The company discloses some sustainability objectives/targets including climate. However, there is an opportunity to establish group-wide targets for the most material parts of its value chain. Also, while the company reports consistently against some targets including climate, it has an opportunity to report consistently against all its targets. Furthermore, it could link performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. Lastly, the company could improve its transparency by disclosing whether its highest governance body has expertise with respect to the company’s most material sustainability topics.

Ecosystem conversion and restoration
The company does not have a commitment to ensure zero conversion, and does not have time-bound targets to achieve conversion-free supply chains. Additionally, the company does not disclose activities to minimise ecosystem conversion or to achieve conversion-free supply chains.
Furthermore, the company is not committed to restoring ecosystems, and it does not disclose details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.

GHG emissions
The company should set time-bound targets to reduce its scope 1, 2 and 3 greenhouse gas emissions as well as report progress against them. Crucially, the company needs to reduce its scope 1,2 and 3 emissions and its targets need to align with a 1.5-degree trajectory.

Impact and dependencies assessment
The company actively contributes to environmental preservation and biodiversity through initiatives and collaborations, notably with its conservation efforts in the Mempawah area of West Kalimantan. However, it has an opportunity to assess and disclose its impacts on nature, including biodiversity, within its own operations and upstream business relationships. Additionally, understanding its dependencies on nature in its operations and supply chain would further bolster its commitment to sustainability.

Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Key areas and species
While the company and its subsidiary IndoAgri have taken initiatives such as forming HCV teams and identifying High Conservation Value areas, there’s an opportunity for the parent company to disclose all species existing in or adjacent to its own operational areas. This could include providing their status according to national and international conservation standards. Additionally, the company could enhance transparency by disclosing locations of its own operations that are adjacent to crucial biodiversity areas. On the supplier side, the company has yet to disclose the locations of suppliers that are adjacent to important biodiversity areas, as well as the species populations adjacent to supplier locations.

Resource exploitation and circularity performance
No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Solid and air pollution
The company should commit to avoid developing or marketing new chemicals or products with SVHC (substance of very high concern) properties, as well as work on reducing the production of hazardous substances. The company reports some data on air quality parameters of emissions of harmful air pollutants, however, it has an opportunity to report this data regularly across all operations and disclose time-bound targets to reduce air pollutants across the most material parts of its value chain. It could also provide quantitative evidence regarding plastic use reduction and use of sustainable packaging, including the amount of plastic waste generated and proportions directed from or to disposal.

Water
The company has an opportunity to further improve water withdrawal by engaging with suppliers and setting time-bound targets to reduce water withdrawal. It has an opportunity to set time-bound targets to reduce water pollution metrics. The company does not disclose relevant information on rights to water in its operations or supply chains.

Indigenous Peoples’ and land rights
The company does not disclose its processes to identify and recognize the rights of Indigenous Peoples when activities in its own operations may impact their rights or describes how it obtains Indigenous Peoples’ free, prior and informed consent.

Safe, clean, healthy and sustainable environment
The company has an opportunity to commit to respecting local communities’ right to a safe, clean, healthy and sustainable environment, and to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders. Moreover, it should track its actual or potential negative impacts on the health of local communities.

Act ethically
The company has an opportunity to disclose a publicly available policy document that prohibits bribery and corruption and to includes anti-bribery and anti-corruption clauses in its business relationships’ contracts. Additionally, it can establish a process to identify risks and impacts related to bribery and corruption.
Furthermore, the company can demonstrate ethical conduct by publishing a policy statement that outlines its approach to lobbying and political engagement and emphasizes its non-participation in political contributions, or alternatively, states the criteria of exceptions. It could also transparently disclose all lobbying expenditures.

Provide and promote decent work
The company states that it respects the health and safety of workers but could further formalise this commitment into a public policy document and extend the expectation to its business relationships. It could also provide evidence of monitoring suppliers’ compliance.
Additionally, it has an opportunity to set a time-bound target for ensuring all workers receive a living wage and describes the living wage determination methodology in regions where it operates. While it has set expectations on the wage paid by its suppliers, it has an opportunity to add a requirement for them to pay a living wage, and disclose how it supports the payment.
Furthermore, the company could formalise its commitment to gender equality and women’s empowerment into a public policy document and disclose related time-bound targets. It could also disclose that it has at least 30% women on the Board of Directors and report the ratio of the basic salary and remuneration of women to men in its direct operation.

Respect human rights
The company discloses statements committing it to respect the ILO’s fundamental rights at work and expecting its suppliers to do the same. However, it has an opportunity to incorporating them into a formal policy document.
Additionally, the company could describe the process for identifying human rights risks and impacts in specific activities or locations, covering its operations and value chain, as well as the process for assessing and identifying its salient human right issues. Moreover, the company could establish a global system to address these salient human rights issues by implementing preventive, mitigative, or remedial measures.