Japfa Ltd
JAP:SP SG1AB9000005
Key Information
HQ:
Singapore
Market Cap:
$0.46bn
Primary Market:
Asia
Company Information
Company Summary
Japfa is a Singapore-based company that specialises in producing quality dairy, protein staples (poultry, beef, swine and aquaculture) and packaged food. Its business is vertically integrated from animal feed production and breeding to commercial farming and food processing. It is one of the two largest producers of poultry in Indonesia. The Company has an integrated network of modern farming, processing and distribution facilities in Indonesia, Vietnam, India, Myanmar and Bangladesh. Its Indonesian dairy business in China has made it one of the leading producers of premium raw milk in the country.![JAPFA](http://images.ctfassets.net/kc2xclar6nri/5OGueVVMuwwtUxYGtdQ1VS/811febf4c646608e679e4233ea4836ee/JAPFA.jpg?fit=scale&w=1320&fm=webp)
Revenue
Total revenue:
$4.6bn
Revenue by Geography
Revenue by Protein
Revenue by Product Type
Disclosures
CDP ScoresLast Reviewed: 11/10/2023
CDP Climate | CDP Forests | CDP Water |
---|---|---|
Yes | No | No |
Science Based Target initiativeLast Reviewed: 03/10/2023
Target classification | Status | Date |
---|---|---|
Has not set SBT | - | - |
Coller FAIRR Protein Producer Index
Analysis Overview
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Analysis Breakdown
Risk Score
24/100
High Risk
Greenhouse Gas Emissions
19/100
Scope 1, 2 & 3 Target
25/100
Type of Target
The company discloses that its Environmental targets are derived from quantitative science-based Life Cycle Assessment methodology. However, the targets are not validated by SBTi. It does not have a specific methane emission reduction target related to animal farming.
0/3
Strength of Target - Non-SBT
The company aims to reduce its Scope 1 emissions by 25% for poultry live bird production by 2030 and further reduce them by 50% by 2040. It also aims to achieve net zero Scope 1 emissions by 2050. In sourcing its raw materials, it always prioritises local suppliers within the countries it operates in. It reports Scope 3 emissions data for 75% of its operations and mentions exploring alternatives to reduce its dependency on soybean imports. However, it does not disclose explicit targets.
1.25/2
Innovation on GHG Emission Reduction
0/100
Innovation to Reduce Agriculture Emissions
The company has conducted a supplier sustainability survey to better understand suppliers' social and environmental practices. The results will be used to develop and enhance supplier engagement in sustainability to mitigate risks in its supply chain further. However, it does not explicitly disclose working with suppliers to reduce emissions from agriculture.
0/1
Feed Farming Innovation
The company produces its feed but sources raw ingredients from suppliers. It discusses efforts to improve energy efficiency at its feed mills of different regions but does not explicitly address GHG emissions reduction.
0/2
Animal Farming Innovation
The company replaced older grinding machines with more efficient and energy-saving systems and installed inverters in feed mills to reduce energy consumption. It also installed an LED lighting system to reduce emissions. It is using technology to make its animal production more efficient. However, the company does not explicitly address GHG emission reduction from animal farming.
0/2
Quality of GHG Inventory
49/100
Quality and scope of GHG inventory Completeness
The company discloses that in 2022, its direct GHG emissions (Scope 1) were 75,998 Tons CO2 eq and energy indirect (Scope 2) GHG emissions were 553,827 Tons CO2 eq. It has also reported Scope 3 emissions for FY2022, which were 16,821,995 Tons CO2 eq. The data included in the calculation are the production and transportation of raw materials, supporting materials, energy (excluding indirect energy - Scope 2) and waste processing. The estimate does not include consumer products, business travel, employee commuting, and downstream emissions. It states that the scope of the sustainability report covers operational units in Indonesia, Vietnam, Myanmar and India, covering poultry and aquaculture operations and does not include non-operational offices and swine operations.
1.43/1.5
Feed & Animal Farming Emissions
The company reports Scope 3 emissions, which includes emissions based on a Life Cycle Assessment of its poultry operations in Indonesia, Vietnam, Myanmar and India. However, it does not disclose the same for other animal farming operations and has not disclosed separately its CO2-equivalent emissions from animal farming. The company's feed mill operations are covered in Scope 1, and the transportation of purchased raw materials is covered in Scope 3. However, the disclosed Scope 3 emissions are only estimated for the poultry operations in Indonesia, Vietnam, Myanmar and India, covering 75% of operational units. It does not explicitly disclose CO2-equivalent emissions from feed production, nor does it disclose CO2-equivalent emissions from land use.
0.5/2
Transparency of GHG Inventory
The company submitted the CDP Climate Change questionnaire in 2023.
0.5/1.5
Emissions Performance
5/100
Overall Emission Performance
The company's Scope 1 and Scope 2 emissions have increased from FY2021 to FY2022, whereas Scope 3 emissions have increased from 10,825,139 tons CO2e in FY2021 to 16,821,995 tons CO2e in FY2022. Therefore, there is an increase in absolute emissions compared to the previous reporting period due to the expansion in coverage of the emission data. In 2022, the poultry life cycle assessment conducted by the company expanded to cover more than 75% of operational units in Indonesia, Vietnam, Myanmar, and India. It also reports that the scope of the emissions data covers poultry and aquaculture operations from four of the five countries where it operates. Therefore, the geographic coverage applies across 3/4 of operations.
0.25/5
Climate-related Scenario Analysis
14/100
Climate-related Scenarios Analysis Conducted
The company does not disclose information on undertaking climate-related scenario analysis. However, it has conducted a Life Cycle Assessment on Indonesian poultry to further analyse materiality, and potential impacts with a focus on key climate-related areas. It acknowledges the impact of extreme weather conditions on feed raw material prices like soybeans and stated it will conduct a risk assessment to address potential climate-related risks.
0/1
Disclosure of Analysis Results on Material Risks
The company acknowledges fluctuations in raw materials used in feed production as a risk. However, there are no details of risks related to climate change and extreme weather conditions. It mentions that changing climates in the different markets it operates in pose a challenge, and extreme heat, rain, floods, and typhoon occurrences may cause unnecessary distress to its animals. It has implemented a closed-house system to address the climatic variation. It does not disclose information related to veterinary and medicine costs. It continues to focus on energy management, including using renewable energy, energy efficiency, and cleaner production. 42% of the company's energy usage comes from renewable energy. However, it does not discuss the impact of increased electricity demand, energy demand or prices.
0.7/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company invests US$32.2 million in sustainability initiatives, focusing on people development and new closed-commercial farms and water recycling facilities. However, it needs to be clarified that the investment aligns with the GHG targets.
0/1
Deforestation & Biodiversity
14/100
Deforestation/Conversion-free Target - Soy for Animal Feed
5/100
Risk Assessment to Identify High-risk Locations
The company states that soybean meal is the second-largest component of feed production, and the requirement for this is met by imports. The company discloses that it sources certified soybean meal for some of its aquafeed. It is unclear what percentage of sourced soy is certified. The company does not disclose further information on how it manages deforestation risks linked to soy for its animal feed.
0/0.5
Strength of Deforestation Commitment
The company discloses that it expects suppliers to exercise reasonable due diligence to ensure responsible sourcing in its supplier code of conduct.
0.25/3.25
Transparency - Progress Against Commitment
The parent company (Japfa Ltd) was requested to respond to CDP questionnaire but did not response. Its subsidiary, PT Japfa Comfeed Indonesia Tbk, has been also asked to respond in 2022 but did not respond.
0/1.25
Engagement, Monitoring & Traceability - Soy for Animal Feed
27/100
Supplier Engagement
The company mentions that it is conscious of potential deforestation risks in its supply chain. It discloses it has initiated a supplier survey to increase sustainability awareness among its suppliers. It's not clear whether this survey includes both soy and cattle suppliers.
0.1/1.25
Compliance monitoring & Traceability
The company states that if non-compliance with its code of conduct is found, it can demand corrective measures. Any failure to rectify the non-compliance may then lead to further action, including re-assessment of the business relationship. For aquafeed soy products the company states that it "enhances" traceability by sourcing certified soybean meal. However, it is unclear what percentages of sourced soy is currently certified and the company does not seem to have implemented its own traceability system in its soy supply chain.
1/3.25
Feed Innovation
The company mentions it has been exploring alternative local raw materials to reduce the reliance on imported soybean meal. It discloses that it uses additional raw materials for feed, such as broken rice, wheat, rice bran, wheat bread, and oyster shell, among others.
0.25/0.5
Aquaculture Certification (ASC, BAP, GlobalGAP, SSP)
50/100
Proportion of Farms Certified
The company's aquaculture division operates in Indonesia and has received the BAP and MSC CoC certifications. The company's subsidiary, PT Indojaya Agrinusa, received the Global G.A.P. certification, and the company's Tilapia Fish Farming Unit received ASC certificates. Since certifications are listed by site, it is unclear what percentage of farms are certified. We encourage the company to improve the clarity of disclosure on this topic.
2.5/5
Feed Ingredients & Conversion Ratios
4/100
Feed Disclosure
The company does not disclose its feed ingredients by percentage, FFDRo or FFDRm, but does state that it procures soybean meal certified by ProTerra or RTRS, and marine raw materials certified by ASC, BAP, or Global G.A.P certification.
0.2/2
Performance of Feed Metrics
The overall percentage of certified ingredients is not disclosed. Similarly, the company fails to disclose the protein conversion efficiency and the feed conversion ratio.
0/3
Feed Innovation
0/100
Strategy
Despite the Comfeed business unit engaging with Gadjah Mada University on the use of Black Soldier Fly in feed lines, the company does not disclose any strategy for increasing the use of alternative feed ingredients in the company's own aquaculture operations or it is broader strategy for feed innovation.
0/2.75
Performance
The company does not dsiclose the percentage of R&D allocated to novel ingredients development. Further, it does not disclose a target related to feed innovation. It also does not disclose the average EPA and DHA content of salmon it produces.
0/2.25
Ecosystem Impacts
0/100
Escapes
The company does not disclose data on escapes, or disclose the financial cost of all escape events and/or provides a discussion of escapement prevention. Finally, the company does not disclose a timebound target for 0 escapes.
0/3.25
Reducing Biodiversity Impacts
The company tries to restore biodiversity through various measures, such as planting mangroves and cemara air trees. However, this seems more akin to a CSR activity, with no information regarding their involvement with a stakeholder and its operations. Its operations do not set a time-bound target for zero human-wildlife contact.
0/1.25
Algal Blooms
The company does not disclose a management plan in the event of algal blooms.
0/0.5
Water Use & Scarcity
9/100
Water Use & Scarcity in Facilities
23/100
Monitoring Water Consumption & Withdrawals
The company reports that it has engaged with a third party to identify water-stressed areas and quantify the water scarcity footprint in its operations. The company does not disclose whether it only operates in areas of low water stress, nor does it disclose water-stressed locations. It states it is committed to recycling water to reduce freshwater and groundwater withdrawal and has water conservation initiatives in place. In 2021, the company launched a Sustainability-Linked Bond that focuses on water sustainability, through which it commenced a project to construct nine water recycling facilities by 2025, following the construction of three water recycling facilities in 2022. It also discloses its total water consumption in the reporting year.
0.52/0.75
Target to Reduce Water Consumption & Withdrawals
The company takes various measures to minimise water consumption and withdrawals. Its Sustainability-Linked Bond has a KPI that is linked to the achievement of a water-related Sustainability Performance Target. The target is to minimise the impact of water pollution from untreated wastewater and/or recycling and utilisation of wastewater to improve water circularity and reduce water withdrawal. However, the company has not set a time-bound target to reduce total water consumption or withdrawals.
0/1
Disclosure & Performance of Water Risks in Facilities
The company discloses water withdrawals by source. It does not disclose water-related CAPEX or water-related OPEX for the reporting year. Water withdrawals decreased in 2022, but total water consumption increased in 2022.
0.61/3.25
Water Use & Scarcity in Feed Farming
0/100
Supplier Engagement in Water Use in Feed Farming
The company operates feed manufacturing facilities, which produce feed for fish, poultry and swine. Though the company has implemented measures to improve water consumption efficiency in its feed mills, it does not discuss water scarcity in its feed supply chain. The company also states that it has conducted a life cycle assessment and identified the water-stressed regions which need primary focus in relation to the Sustainability Performance Target.
0/2.5
Disclosure of Water Risks in Feed Farming
The company's subsidiary Japfa Comfeed Indonesia Tbk discloses that palm kernel meal, a byproduct of palm oil production, can be used as an alternative feed ingredient, and this year the company has successfully used palm kernel meal as part of a new formulation without compromising feed quality. However, it does not disclose how it supports sustainable feed production in terms of water usage.
0/2.5
Water Use & Scarcity in Animal Farming
5/100
Supplier Engagement in Water Use in Animal Farming
The company states it takes various measures to mitigate water scarcity, minimise pollution and promote water circularity. However, it is unclear whether the company has a sustainable agricultural policy addressing water use in animal farming operations/supply chains.
0.24/3
Disclosure of Water Risks in Animal Farming
The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.
0/2
Waste & Pollution
8/100
Wastewater at Facilities
14/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company has not set a time-bound target to reduce wastewater volumes or improve quality.
0/1.5
Transparency on Water Pollution Risks
The company does not disclose wastewater quality (by standard effluent metrics). It discloses the volume of wastewater for its poultry and aquaculture business divisions.
0.23/2
Performance on Wastewater Quality & Volume Discharged
The total water discharged from poultry operations increased in 2022. Conversely, the aquaculture business units reduced total water discharge. Overall, the total wastewater discharge decreased in 2022.
0.45/1.5
Nutrient Management in Feed Farming
0/100
Supplier Engagement in Nutrient Pollution Risks
The company operates feed manufacturing facilities, which produce feed for fish, poultry and swine. The company sources soy and corn for its poultry feed, as well as soy and fish-based raw materials such as fish oil and fish meal in its aquafeed. However, no information on nutrient management in feed farming is provided.
0/4
Innovation to Improve Nutrient Management in Feed Farming
The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.
0/1
Manure Management in Animal Farming
9/100
Disclosure of Pollution Risks from Manure
The company converts manure into fertiliser and also sends the manure to licensed third parties to be processed into fertiliser. In Indonesia, the company started a project to process poultry manure into fertiliser using biodigesters. It discloses that the biogas produced is used on-farm to power heaters and generators. The company aims to expand this initiative to other farms. Japfa does not disclose risk assessments to identify locations at a high risk of or especially susceptible to nutrient pollution.
0.24/1.25
Supplier Engagement in Manure Management
The company does not make site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms management. Nor does it provides technical and/or financial support to suppliers and/or own farms to develop nutrient management plans and improve manure storage.
0/1.5
Innovation to Improve Nutrient Management in Animal Farming
The company reports that it uses feed that can limit the amount of excess nutrients excreted in chicken, fish and shrimp waste.
0.2/2.25
Nutrient Management in Aquaculture
12/100
Disclosure of Pollution Risks in Animal Farming Operations
The company states that it chooses sites based on water quality and throughput. However, this is disclosed from an animal welfare perspective, and their risk assessment processes are not disclosed. The company reduces wasted aquafeed through the implementation of an aquafeed broadcaster. However, it does not discuss eliminating organic loading or faecal matter from the seabed. The company has ASC certification for one of its sites, so it can be assumed that there is no sludge discharge to public waterways at this location. However, the same cannot be assumed for its other sites as the company fails to disclose this matter.
0.38/3
Performance on Pollution Management
The company has ASC certification for one of its sites, so its metrics of effluent water will be within ASC limits. However, the company does not centrally disclose any information on the envrionmental performance of its shrimp farms and does not disclose details of a community engagement plan.
0.2/2
Antibiotics
21/100
Policy on Antibiotics Use
43/100
Policy on Antibiotics Use
The company commits to not using antibiotics routinely or preventatively, relying instead on veterinary oversight during health crises, and has halted the use of antibiotics as growth enhancers in Indonesia. It implements vaccines and biosecurity methods in poultry to bolster bird health and reduce antibiotics use, supplemented by health monitoring in aquaculture units. Nonetheless, the company's disclosure on antibiotic controls in aquaculture is unsatisfactory, with the current policy limited to chickens and lacking specifics on the classes of antibiotics covered, offering insufficient assurance of restricted antibiotic use. Moreover, the shift towards an AGP-free approach in operations beyond Indonesia is still ongoing.
2.13/5
Disclosure of Quantity of Antibiotics Used
0/100
Disclosure of Quantity of Antibiotics Used
The company does not disclose the quantity of antibiotics used.
0/5
Animal Welfare
20/100
Animal Welfare Policy
40/100
Welfare Policy
The company commits to the Five Freedoms and provides animal welfare training to contract farmers and processing facility employees. It has also invested in research and development infrastructure such as the Japfa Poultry Research Farm, collaborating with Kindai University, Japan, and Universiti Sabah Malaysia for the Japfa Aquaculture Research and Development Center. However, these research initiatives focus primarily on productivity and feed conversion, not specifically addressing animal welfare aspects such as overall well-being, health, and treatment.
0.98/2
Key Welfare Issues
The company commits to the Five Freedoms of animal welfare, including adequate poultry stocking density and ethical slaughtering methods for chickens. It provides ventilated transport for chicks and farms the Ayam Ulu breed, noted for high welfare characteristics. However, it lacks explicit commitments against close confinement in pork, dairy, and beef operations. Limited transport times for all species and conditions for cattle sourced from Australia are undisclosed. Humane slaughter methods for animals other than chicken are not mentioned. Lastly, the company's environmental provisions for poultry lack a focus on enrichment initiatives.
1/3
Assurance & Certification
10/100
Auditing & Assurance by an Animal Welfare Organisation
The company aligns with Aviagen's Animal Welfare Goals and Principles and conducts internal audits in its poultry and aquaculture units in India and Indonesia. However, it is not certified by any recognised farm assurance programme.
0.5/4
Public Reporting on Welfare
The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.
0/1
Performance on Key Material Risks
25/100
Performance on Key Material Welfare Risks by Protein
The company commits to enriched environments for poultry through its closed-house system and has a stocking density of 17/m² for "For Sale" birds. However, this results in an actual stocking density of 42.5kg/m², exceeding the recommended 30kg/m² standard. Details on environmental enrichment and water bath stunning are not disclosed. Additionally, it lacks information on tethering, lameness, and mastitis for dairy, as well as the use of gestation crates, tail docking, and surgical castration in pork operations.
1.23/5
Aquatic Animal Welfare
5/100
Welfare Policy
The company states that it maintains an optimal environment for its aquatic animals. The company discusses running a partnership programme to provide technical advice to small shrimp farmers. The company also holds some aquatic animal welfare certifications, such as BAP. However, the company does not discuss health/pain monitoring or reducing fear and stress via handling protocols. The company asserts that tilapia are stunned before slaughter, utilising the most humane methods possible. However, it does not disclose the specific stunning techniques employed.
0.25/2.5
Reporting on Animal Welfare Metrics
The company does not disclose sufficient information to ascertain if it assures a stocking density of lower than 17kg/m3 for salmon at all times.
0/2
Reporting on Measures to Improve Welfare
The company has an aquaculture research centre (Japfa Aquaculture Research and Development Center (JARDC)). However, it is unclear if there is an R&D spend on optimal environmental enrichment.
0/0.5
Disease Management - Shrimp Aquaculture
20/100
Mortality
The company does not disclose any information related to disease management in shrimp farming.
0/2
Disease Outbreak & Biosecurity
The company implements water chlorination systems with an optimised dosage to aid the disinfection process and remove unwanted microorganisms from water.
1/3
Working Conditions
36/100
Human Rights
10/100
Strength of Policy
The company commits in writing to uphold employees' human rights. However,does not not discuss whether it adheres to internationally agreed human rights standards.
0.5/1
Due Diligence Process
The company does not discuss human rights due diligence, monitoring, risk mitigation or remediation for people and communities.
0/3
Evidence of Remediation
The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence
0/1
Fair Working Conditions
42/100
Policy for Direct Operations
The company prohibits discrimination, harassment, forced labour and child labour. However, the company does not commit to paying all its employees a fair wage or state that it undergoes audits covering the selected policies. The company's Supplier Code of Conduct prompts suppliers to prohibit discrimination, child labour and forced labour. However, whether the company requires suppliers to refuse abuse and inhumane treatment or promote fair wages is unclear.
1.4/3
Monitoring & Discosure
Beyond a reservation of the right to assess suppliers, it is still being determined if the company audits suppliers for compliance with the Supplier Code of Conduct.
The company has a grievance mechanism for its direct operations, suppliers and business associates, with an internet site and a postal address to submit whistleblowing claims. However, the company clearly states that the reports cannot be made anonymously. It also does not be clarified if the policy is designed in consultation with stakeholders. The company's subsidiary, Comfeed Indonesia Tbk, reports receiving one complaint, which was closed as of the reporting date. However, data is only written for some of the company's operations.
0.7/2
Safety & Turnover Data
65/100
Committee representation of workers
The company mentions it prioritises Occupational Health and Safety (OHS) in its operations. To ensure the compliance of OHS implementation in all business activities with the prevailing law, the company has formed an OHS Committee comprising employee representatives. The company has also implemented ISO 450001:2018 for hazard identification, risk assessment and determining control (HIRADC) for its operations in PT Japfa Tbk and adopted a hazard and operability study (HAZOP) in Vietnam. However, these certifications do not cover the majority of the company's operations. Further, the company does not state the proportion of facilities/sites with a dedicated health and safety committee with worker representatives.
0.64/2
Disclosure of safety and turnover data
The company discloses its injury rate per million working hours for four operating regions. In FY2022, injuries in Indonesia, Vietnam, Myanmar and India were 2.62, 0.53, 0, and 0, respectively. In FY2021, injuries in Indonesia, Vietnam, Myanmar and India were 3.05, 0, 0, and 0.81, respectively. The company discloses an overall lower injury rate in FY2022 compared to FY2021, but some operating regions did experience an increase in injury rates. There were no fatal injuries for the reporting year, compared to two fatal accidents in 2021.
The company discloses the overall average turnover rate as 14.2% but does not disclose turnover rates by seniority level.
2.61/3
Freedom of Association
25/100
Strength of Policies
The company states that it supports its employees' right to freedom of association but does not disclose the unionisation rate. In addition, the company's suppliers are expected to respect the rights of employees to freely associate and engage in collective bargaining through legally established unions. That said, the company does not provide evidence of any actions supporting these rights.
1/3
Disclosure of Collective Bargaining Metrics
The company reports the number of contract and permanent employees for all operating regions. Currently, it employs 3,962 permanent employees and 2,670 contractual employees. However, it does not discuss the proportion of its part-time or full-time workforce or whether collective bargaining agreements cover any workers.
0.25/2
Food Safety
39/100
Food Safety System
25/100
Certifications
The company states that its owned slaughterhouses and food processing units are FSSC 22000-certified, a GFSI-recognised certification. Additionally, it mentions that their farm management practices adhere to Good Farming Practices and Best Aquaculture Practices (BAP). It owns 16 slaughterhouses and primary processing plants, three aquaculture cold storage and processing plants and four meat processing operations. However, whether all the facilities are certified against FSSC 22000 is unclear. Further, it does not disclose whether suppliers are expected to be GFSI-certified, nor the portion of those that are.
1.25/3.5
Performance
The company reports that its products undergo stringent audits to ensure they are safe for consumption. However, it does not disclose the number or frequency of audits related to food safety or the corrective action rate. It mentions that it provides traceability to the farm level by working with the suppliers but does not confirm whether this is through a consumer-facing technology. In its 2022 Sustainability Report, the company discusses several innovative consumer-facing technologies. However, it is not specified whether these apps provide traceability or whether they pertain to food safety. These include a delivery tracking application ("J-VOS"), a "Best Sales" application for customer service and promotions, and an app allowing both the company and customers to monitor sales data ("SM4SH").
0/1.5
Product Recalls & Market Bans
53/100
Product Recall Systems
The company lists food safety certifications as a material risk but does not disclose if it has a product recall system in place. It reports zero recalls during the reporting period.
2.13/3
Performance
The company does not disclose market bans, and none were detected in media screening.
0.5/2
Sustainability Governance
48/100
Assessment of a Company's Sustainability Governance
48/100
Board Sustainability
The company has a sustainability committee overseen by the board of directors. In addition, the company conducted a survey and identified ten issues as material in 2022. Fair remuneration and water and wastewater management have emerged as priority focus areas in the current reporting period. The material topics are food safety certifications, providing access to nutritious and affordable food, anti-corruption, traceable suppliers, consumer health and safety, ethics and integrity, economic performance, waste management and waste treatment, fair remuneration and benefits, occupational health and safety and wastewater treatment. This is developed under the supervision of the sustainability committee. However, the board's involvement in the materiality assessment must be clarified. One board member has expertise in ESG and sustainability reporting, but board-level expertise in food safety or innovation is kept secret.
1.13/2
Incentives & Policy Engagement
The company reports information on its remuneration framework, which includes forward-looking indicators to measure performance and ensure sustainable development. However, it does not explicitly state the proportion of monetary remuneration linked with climate performance.
The company collaborates with various national and international parties to work on sustainability goals. It includes working with the Indonesian Feedmills Association (GPMT) and the Indonesian Aquaculture Society (MAI), among other collaborations. However, the specific topics of engagement are not disclosed. The company also reports details of memberships with various trade associations. Still, it does not state if it aligns any policy-engagement activities to restrict global temperature rise to 1.5C.
0.75/2.5
Innovation & Benchmarking
The company discloses innovation in its packaging material in its Indonesian operations whereby they have succeeded in developing new packaging that uses less material yet is still durable enough to protect its contents. Another innovation is Biofloc, an aquaculture system which uses microbiological control technology to break down waste material. The company also discusses the importance of innovation to drive productivity and has extensive research and development work in feed technology, nutritional balance and animal health. In addition, as part of the company's materiality assessment, it uses industry and peer benchmarking to examine environmental and social risks.
0.5/0.5
Alternative Proteins
0/100
Diversification of Products to Alternative Protein Sources
0/100
Existing product portfolio
The company does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources
0/2.5
Investing for future growth
In its Sustainability Report, the company mentions diversifying from the five proteins it already deals in poultry, swine, beef, aquaculture and dairy. Its swine protein business has grown into a robust, industrialised value chain. However, it needs to indicate having an approach towards diversifying its product range to include plant-based and alternative proteins.
0/2.5
Members-only Content
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Workstream Information
2023 Risk Score:
24/100
Level:
High Risk
Ranking:
40/60
Main Protein:
Poultry and eggs
Assessed Proteins:
Poultry and eggs, Pork, Dairy, Aquaculture
Company Feedback Given:
Yes
Last Updated:
31 October 2023
2023 Resources
2023/24 Index Report Summary (Mandarin) 报告总结摘要(中文) Launch of the Coller FAIRR Protein Producer Index 2023/24 2023/24 Company Dialogue Questions 2023/24 Full Report Coller FAIRR Protein Producer Index
Coller FAIRR Climate Risk Tool
Analysis Overview
Cost Increase
Cost Increase
EBIT Margin
Cost Increase (%)
60%
40%
20%
0%
-20%
-40%
-60%
Net Zero Aligned
BAU
High Climate Impact
Cost Breakdown
2030 | Net zero aligned | BAU | High climate impacts |
---|---|---|---|
Total Costs | 0% | 4% | 6% |
Carbon Tax | 1% | 2% | 2% |
Feed | -1% | 2% | 3% |
Feed Additives | N/A | N/A | 0% |
Heat Stress | 0% | 0% | 0% |
2050 | Net zero aligned | BAU | High climate impacts |
---|---|---|---|
Total Costs | 1% | 6% | 10% |
Carbon Tax | 2% | 3% | 3% |
Feed | -1% | 2% | 6% |
Feed Additives | N/A | N/A | 0% |
Heat Stress | 0% | 0% | 0% |
Members-only Content
To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.
Workstream Information
Last Updated:
5 April 2023
2023/24 Resources
Walkthrough Video 2023 Public Report 2023 (English) Public Report 2023 (Mandarin) Coller FAIRR Climate Risk Tool