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Indofood Agri Resources Ltd

Natural rubber assessment
  • Latest update: March 2021
  • Next scheduled: March 2022

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Company assessment: Indofood Agri Resources Ltd – March 2021

Assessment date:

Score by disclosure type:

Total: 41.9% 47.75 / 114
  • Organisation: 15 / 28 53.6%
  • Policy: 25.5 / 45 56.7%
  • Practice: 7.3 / 41 17.7%
  • Self-reported: 7.3 / 41 17.7%
  • External: 0 / 41 0%
  • Sustainability policy and leadership Sustainability policy and leadership
    6 / 9 66.7%
    • Organisation: 5 / 5 100%
    • Policy: 1 / 1 100%
    • Practice: 0 / 3 0%
    • Self-reported: 0 / 3 0%
    • External: 0 / 3 0%
    • Y
      1 / 1

      1. Sustainable natural rubber policy or commitment for all its operations?

      The company has a sustainable agriculture policy that covers multiple dimensions of sustainability across all of the company's operations covering both social and environmental issues.

    • 2. Sustainable natural rubber policy or commitment applies to all suppliers excluding smallholders?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • Y
      1 / 1

      3. High-level position of responsibility for sustainability?

      CEO supported by the management team, an ERM unit, an R&D team, as well as sustainability representatives from all business units.

    • Y
      1 / 1

      4. One or more members within the board of the company have responsibility for sustainability?

      The company's board of directors are actively involved in evaluating the group's sustainability risks and opportunities, reviewing the material ESG topics, and overseeing the management and reporting processes.

    • Y
      1 / 1

      5. Percentage or number of women in senior management team?

      70 (11.76%) - The company reports the total number of female employees at manager and senior manager levels in its sustainability report 2019.

    • Y
      1 / 1

      6. Percentage or number of women board members?

      0 (0%) - The board comprises of nine members, all of which are male.

    • N
      0 / 1

      7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with natural rubber production?

    • N
      0 / 1

      8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with natural rubber production?

    • Y
      1 / 1

      9. Sustainability report published within last two years?

      Sustainability report for 2019 is published by the company.

    • N
      0 / 1

      10. Climate risks assessment available?

  • Landbank, maps and traceability Landbank, maps and traceability
    4.5 / 11 40.9%
    • Organisation: 4.5 / 10 45%
    • Policy: 0 / 1 0%
    • Practice: 0 / 0 0%
    • Self-reported: 0 / 0 0%
    • External: 0 / 0 0%
    • Y
      1 / 1

      11. Lists countries and operations?

      Indonesia (North and South Sumatra, East Kalimantan, and Sulawesi).

    • N
      0 / 1

      12. Total land area managed/controlled for natural rubber (ha)?

    • Y
      1 / 1

      13. Total natural rubber planted area (ha)?

      16,796 - The company reports the total natural rubber planted area in its sustainability report 2019.

    • Y
      1 / 1

      14. Scheme smallholders/outgrowers planted area (ha)?

      3,259 - The company reports the total planted area under plasma smallholders on its website.

    • N
      0 / 1

      15. Unplanted area (areas designated for future planting) (ha)?

    • P
      0.5 / 1

      16. Conservation set-aside area, including HCV area (ha)?

      23,279 - The company reports that it has identified 23,279 ha of HCV areas which include riparian areas, Indigenous land, and habitats for endangered species. However, it is unclear if this area covers all crops or only natural rubber.

    • N
      0 / 1

      17. Maps of estates/management units?

    • N
      0 / 1

      18. Management plans for natural rubber production are available for all estates/management units?

    • Y
      1 / 1

      19. Number of company owned natural rubber processing facilities?

      7 - The company reports that it has four crumb and three sheet rubber processing facilities.

    • N
      0 / 1

      20. Names and coordinates of company owned natural rubber processing facilities?

    • N
      0 / 1

      21. Commitment to traceability of the whole supply chain?

  • Certification standards/Sustainability initiatives Certification standards/Sustainability initiatives
    0 / 5 0%
    • Organisation: 0 / 1 0%
    • Policy: 0 / 1 0%
    • Practice: 0 / 3 0%
    • Self-reported: 0 / 3 0%
    • External: 0 / 3 0%
    • N
      0 / 1

      22. Member of the Global Platform for Sustainable Natural Rubber (GPSNR)?

    • N
      0 / 1

      23. Submitted self-declaration form for the Sustainable Natural Rubber Initiative (SNR-i)?

    • N
      0 / 1

      24. Percentage area (ha) FSC certified?

    • N
      0 / 1

      25. Certified under voluntary sustainability certification scheme?

    • N
      0 / 1

      26. Commitment to become 100% certified under voluntary sustainability certification scheme?

  • Deforestation and biodiversity Deforestation and biodiversity
    3.5 / 12 29.2%
    • Organisation: 0 / 1 0%
    • Policy: 3.5 / 7 50%
    • Practice: 0 / 4 0%
    • Self-reported: 0 / 4 0%
    • External: 0 / 4 0%
    • Y
      1 / 1

      27. Commitment to zero deforestation or zero conversion of natural ecosystems?

      The company reports its commitment to no deforestation in its sustainable agriculture policy.

    • 28. Commitment to zero deforestation or zero conversion of natural ecosystems applies to all sourcing excluding smallholders?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • P
      0.5 / 1

      29. Criteria for defining deforestation?

      The company mentions zero deforestation of primary forests, High Conservation Value areas and High Carbon Stock areas. However, the cut-off date beyond which deforestation or conversion would not be accepted is not reported by the company.

    • N
      0 / 1

      30. Evidence of monitoring deforestation?

    • N
      0 / 1

      31. Amount of illegal/non-complaint deforestation recorded in own operations?

    • N
      0 / 1

      32. Commitment to restoration of non-compliant deforestation/conversion?

    • N
      0 / 1

      33. Implementing a landscape or juridictional level approach?

    • Y
      1 / 1

      34. Commitment to biodiversity conservation?

      The company reports its commitment to biodiversity conservation in its sustainable agriculture policy.

    • N
      0 / 1

      35. Identified species of conservation concern, referencing international or national system of species classification?

    • N
      0 / 1

      36. Examples of species and/or habitat conservation management?

    • P
      0.5 / 1

      37. Commitment to no hunting or only sustainable hunting of species?

      The company reports that it operates a strict zero tolerance policy towards hunting, destroying, logging, or burning of protected species and wildlife. However, this commitment only applies to certain extent of operations (HCV and HCS areas).

    • P
      0.5 / 1

      38. Commitment to protect areas from illegal activities?

      The company's commitment to protect areas from illegal activities only covers certain forms of illegal activities.

    • N
      0 / 1

      39. Commitment not to use genetically modified organisms?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    3 / 6 50%
    • Organisation: 0 / 0 0%
    • Policy: 3 / 3 100%
    • Practice: 0 / 3 0%
    • Self-reported: 0 / 3 0%
    • External: 0 / 3 0%
    • Y
      1 / 1

      40. Commitment to conduct High Conservation Value (HCV) assessments?

      The company reports its commitment to conduct High Conservation Value (HCV) assessments in its sustainable agriculture policy.

    • N
      0 / 1

      41. High Conservation Value (HCV) assessments available?

    • N
      0 / 1

      42. High Conservation Value (HCV) management and monitoring plans available?

    • Y
      1 / 1

      43. Commitment to the High Carbon Stock (HCS) approach?

      The company reports that it commits to use the HCS evaluation methodology using the HCS Approach Toolkit before any new development takes place.

    • 44. High Carbon Stock (HCS) assessments available?

      This indicator is disabled as the company reports it has not undertaken any new planting since January 2015.

    • Y
      1 / 1

      45. Commitment to conduct social and environmental impact assessments (SEIAs)?

      The company reports that prior to the development of every estate, it conducts an Environmental Impact Assessment (AMDAL) and Social Impact Assessment (SIA), which enables it to identify baseline conditions and likely social impacts of development.

    • N
      0 / 1

      46. Social and environmental impact assessment (SEIAs) undertaken, and associated management and monitoring plans?

  • Soils, fire and GHG emissions Soils, fire and GHG emissions
    4.75 / 14 33.9%
    • Organisation: 0 / 3 0%
    • Policy: 4 / 6 66.7%
    • Practice: 0.8 / 5 15%
    • Self-reported: 0.8 / 5 15%
    • External: 0 / 5 0%
    • Y
      1 / 1

      47. Commitment to no planting on peat of any depth?

      The company reports its commitment to no planting on peat regardless of depth.

    • N
      0 / 1

      48. Landbank or planted area on peat (ha)?

    • N
      0 / 1

      49. Implementation of commitment to no planting on peat of any depth?

    • Y
      1 / 1

      50. Commitment to best management practices for soils and peat?

      The company reports its commitment to best management practices for soils and peat in its sustainable agriculture policy.

    • N
      0 / 1

      51. Evidence of best management practices for soils and peat?

    • Y
      1 / 1

      52. Commitment to best/sustainable tapping practices?

      The company reports that it has implemented best practices in rubber tapping to maximise latex yield while maintaining the health and extending the useful life of the tree.

    • P
      0.75 / 1

      53. Evidence of best/sustainable tapping practices?

      The company reports that is uses spot marking to predict when trees are mature and ready for tapping, monitors the trees' growth rates and girth, and conducts spot marking in the last few months before the tree reaches the optimum size for tapping. It also mentions that tapping is done at certain heights, based on each tree's characteristics. Tapping panels are rotated according to the condition of the panel and the tree. However, evidence is not externally verified.

    • Y
      1 / 1

      54. Commitment to zero burning?

      The company reports its commitment to zero burning in its sustainable agriculture policy.

    • N
      0 / 1

      55. Evidence of fire monitoring and management?

    • N
      0 / 1

      56. Details/number of hotspots/fires in company estates/management units?

    • N
      0 / 1

      57. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

    • N
      0 / 1

      58. GHG emissions intensity?

    • 59. GHG emissions from land use change?

      This indicator is disabled as the company reports it has not undertaken any new planting since January 2015.

    • N
      0 / 1

      60. Progress towards commitment to reduce GHG emissions intensity?

    • N
      0 / 1

      61. Methodology used to calculate GHG emissions?

  • Water, chemical and pest management Water, chemical and pest management
    6.75 / 17 39.7%
    • Organisation: 1.5 / 2 75%
    • Policy: 2 / 6 33.3%
    • Practice: 3.3 / 9 36.1%
    • Self-reported: 3.3 / 9 36.1%
    • External: 0 / 9 0%
    • N
      0 / 1

      62. Time-bound commitment to improve water use intensity?

    • Y
      1 / 1

      63. Water use intensity?

      43.5 - The company reports water use intensity figures for 2017 (41 m3/tonne), 2018 (30.6 m3/tonne) and 2019 (43.5 m3/tonne).

    • N
      0 / 1

      64. Progress towards commitment on water use intensity?

      The company reports water use intensity figures for 2017 (41 m3/tonne), 2018 (30.6 m3/tonne) and 2019 (43.5 m3/tonne). However, the figures do not show improvement.

    • Y
      1 / 1

      65. Time-bound commitment to improve water quality (BOD and COD)?

      The company's BOD and COD levels are already within legal limits. BOD legal limit is 60 mg/L and company's BOD level for 2019 is 34 mg/L. COD legal limit is 200 mg/L and company's COD level for 2019 is 79 mg/L.

    • P
      0.75 / 1

      66. Progress towards commitment on water quality (BOD and COD)?

      The figures reported by the company for BOD and COD have increased in 2019 as compared to the figures reported in 2018. However, the figures are still within specified legal limits.

    • P
      0.75 / 1

      67. Treatment of effluents from processing facilities?

      The company reports that all effluents in its rubber factories are sent to wastewater treatment plants prior to release into water courses or municipal sewers.

    • N
      0 / 1

      68. Proportion of processing facilities with closed-loop water treatment system?

    • N
      0 / 1

      69. Commitment to protect natural waterways through buffer zones?

    • N
      0 / 1

      70. Implementation of commitment to protect natural waterways through buffer zones?

    • N
      0 / 1

      71. Reducing odours from natural rubber processing facilities?

    • Y
      1 / 1

      72. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

      The company commits to minimise the use of chemical fertilisers and pesticides.

    • N
      0 / 1

      73. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides?

    • N
      0 / 1

      74. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

    • P
      0.5 / 1

      75. Chemical usage per ha or list of chemicals used?

      The company reports consumption of herbicides, fungicides, insecticides, rotendicides and paraquat in litres across rubber and palm oil estates combined. However, the names of chemicals used or levels of use per hectare are not reported.

    • P
      0.5 / 1

      76. Implementation of commitment to reduce chemical usage?

      The company reports figures for chemical fertilisers consumption (2018- 83.8 and 2019- 58.9) and pesticides consumption (higher in 2019 as compared to 2018). However, the figures reported are included with the figures reported for palm oil estates and only figures for chemical fertilisers consumption are improving.

    • P
      0.75 / 1

      77. Integrated Pest Management (IPM) approach?

      The company reports that it applies IPM techniques and mentions that natural, biological, and mechanical controls are preferred over chemical controls.

    • P
      0.5 / 1

      78. Waste management system in place to avoid negative impacts?

      The company reports it has a waste management system in place for rubber operations, however very limited information is reported.

  • Community, land and labour rights Community, land and labour rights
    16.75 / 25 67%
    • Organisation: 4 / 5 80%
    • Policy: 9.5 / 14 67.9%
    • Practice: 3.3 / 6 54.2%
    • Self-reported: 3.3 / 6 54.2%
    • External: 0 / 6 0%
    • Y
      1 / 1

      79. Commitment to human rights?

      The company reports its commitment to the UN Declaration on Human Rights in its sustainable agriculture policy.

    • 80. Commitment to human rights applies to all sourcing excluding smallholders?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • P
      0.5 / 1

      81. Commitment to respect Indigenous and local communities' rights?

      The company only commits to Indigenous peoples' rights but does not reference the UN Declaration/ILO Convention.

    • P
      0.5 / 1

      82. Commitment to respect legal and customary land tenure rights?

      The company reports its commitment to respect legal and customary land tenure rights but only in relation to FPIC.

    • Y
      1 / 1

      83. Commitment to free, prior and informed consent (FPIC)?

      The company reports its commitment to free, prior and informed consent (FPIC) in its sustainable agriculture policy.

    • 84. Commitment to free, prior and informed consent (FPIC) applies to all suppliers excluding smallholders?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • N
      0 / 1

      85. Details on Free, prior and informed consent (FPIC) process available?

    • P
      0.75 / 1

      86. Examples of local stakeholder engagement to prevent conflicts?

      The company reports multiple examples of local stakeholder engagement to prevent conflicts.

    • N
      0 / 1

      87. Details of process for addressing land conflicts available?

    • P
      0.5 / 1

      88. Supports the inclusion of women across natural rubber operations, including addressing barriers faced?

      The company reports its commitment to support the inclusion of women across natural rubber operations, including addressing barriers faced. However, details on types of support provided is not reported by the company.

    • Y
      1 / 1

      89. Commitment to mitigate impacts on food security?

      The company reports its commitment to mitigate impacts on food security.

    • P
      0.5 / 1

      90. Progress on commitment to mitigate impacts on food security?

      The company only provides one example for its progress on commitment to mitigate impacts on food security.

    • Y
      1 / 1

      91. Commitment to provide essential community services and facilities?

      The company reports its commitment to provide essential community services and facilities.

    • P
      0.75 / 1

      92. Progress on commitment to provide essential community services and facilities?

      The company reports multiple examples for its progress on commitment to provide essential community services and facilities.

    • N
      0 / 1

      93. Commitment to provide business/work opportunities for local communities?

    • Y
      1 / 1

      94. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

      The company reports its commitment to all eight fundamental ILO Conventions.

    • Y
      1 / 1

      95. Commitment to eliminate gender related discrimination with regards to employment?

      The company reports its commitment to eliminate gender related discrimination with regards to employment.

    • P
      0.5 / 1

      96. Progress on commitment to eliminate gender related discrimination with regards to employment?

      The company only reports one example which mentions it has a gender committee in place which manages the harassment complaint services.

    • Y
      1 / 1

      97. Percentage or number of temporary employees?

      25,099 (40.24%) - The company reports the number of seasonal contract workers (20,161) and short-term employees (4,938) for all operations in its sustainability report 2019.

    • Y
      1 / 1

      98. Percentage or number of women employees?

      13,097 (21%) - The figure includes permanent employees, non-permanent employees and seasonal workers.

    • Y
      1 / 1

      99. Commitment to pay at least minimum wage?

      The company reports its commitment to pay at least minimum wage in its sustainable agriculture policy.

    • P
      0.75 / 1

      100. Progress on commitment to pay at least minimum wage?

      The company reports its progress on commitment to pay at least minimum wage in its sustainability report 2019.

    • N
      0 / 1

      101. Reporting of salary by gender?

    • Y
      1 / 1

      102. Commitment to address occupational health and safety?

      The company reports that it commits to ensure all its operations have an OHS policy and corresponding management system in place.

    • N
      0 / 1

      103. Provision of personal protective equipment and related training?

    • Y
      1 / 1

      104. Time lost due to work-based injuries?

      1.6 - The company reports the Accident Frequency Rate for all its operations.

    • Y
      1 / 1

      105. Number of fatalities as a result of work-based accidents?

      2 - The company reports the number of fatalities in 2019 for all of its operations.

  • Smallholders and suppliers Smallholders and suppliers
    0.5 / 9 5.6%
    • Organisation: 0 / 1 0%
    • Policy: 0.5 / 2 25%
    • Practice: 0 / 6 0%
    • Self-reported: 0 / 6 0%
    • External: 0 / 6 0%
    • P
      0.5 / 1

      106. Commitment to support smallholders?

      The company only reports a general commitment which mentions to support the inclusion of smallholders in its supply chain and ensure its best efforts to assist its smallholders to adopt its sustainability policy and best sustainability practices.

    • N
      0 / 1

      107. Percentage of supply from smallholders?

    • N
      0 / 1

      108. Programme to support scheme smallholders/outgrowers?

    • N
      0 / 1

      109. Percentage of scheme smallholders/outgrowers involved in programme?

    • N
      0 / 1

      110. Programme to support independent smallholders?

    • N
      0 / 1

      111. Percentage of independent smallholders involved in programme?

    • N
      0 / 1

      112. Process used to engage smallholder suppliers on compliance with company's policy and/or legal requirements?

    • N
      0 / 1

      113. Number or percentage of smallholder suppliers engaged on compliance with company's policy and/or legal requirements?

    • 114. Process used to prioritise, assess and/or engage non-smallholder suppliers on compliance with company's policy and/or legal requirements?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • 115. Number or percentage of non-smallholder suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • 116. Suspension or exclusion criteria for suppliers?

      This indicator is disabled as the company reports that it does not have any non-smallholder suppliers.

    • N
      0 / 1

      117. Percentage of supply coming from agroforestry?

  • Governance and grievances Governance and grievances
    2 / 6 33.3%
    • Organisation: 0 / 0 0%
    • Policy: 2 / 4 50%
    • Practice: 0 / 2 0%
    • Self-reported: 0 / 2 0%
    • External: 0 / 2 0%
    • Y
      1 / 1

      118. Commitment to ethical conduct and prohibition of corruption?

      The company reports that it is committed to ethical conduct and is against corruption. All its new employees receive induction training on its Code of Conduct, including anti-corruption.

    • N
      0 / 1

      119. Progress on commitment to ethical conduct and prohibition of corruption?

    • N
      0 / 1

      120. Disclosure of the company's management approach to tax and payments to governments?

    • P
      0.5 / 1

      121. Whistleblowing procedure?

      The company states it has a whistleblowing policy but only limited details are provided on the procedures.

    • P
      0.5 / 1

      122. Own grievance or complaints system open to all stakeholders?

      The company indicates that it has grievance mechanisms in place, but no further details are provided.

    • N
      0 / 1

      123. Details of complaints and grievances disclosed?

Media monitor: Indofood Agri Resources Ltd

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