Corporate Responsibility and Sustainable Development 2017-18 | Indonesia Cargill provides food, agriculture, financial and industrial products and services to the world. Together with farmers, customers, governments and communities, we help people thrive by applying our insights and over 150 years of experience. We have 155,000 employees in 70 countries who are committed to feeding the world in a responsible way, reducing environmental impact and improving the communities where we live and work. Making a lasting impact Cargill continues to deliver on our corporate responsibility and are aligned with their own economic and social objectives. Key Peter van Deursen sustainability initiatives in the Asia Pacific region. Our charitable highlights of 2017-18 included our work with the Indian authorities CEO, Asia Pacific giving in this region for 2017-18* was over USD 13 million to advance to advance food security in the country, our partnership with the programs that made a difference across three core pillars: nourishing Chinese authorities to educate manufacturing companies about the the world, protecting our planet and enriching our communities. importance of environmental protection, and our efforts to establish 100 percent transparency in our palm oil supply chain starting at the This report highlights our efforts to contribute to the social and source in Indonesia. economic development in three of the world’s most populous countries and important growth markets for Cargill globally: China, Unwavering commitment to sustainability India and Indonesia. We are on track to meet our 2020 goal of building a 100 percent transparent, traceable and sustainable palm oil supply chain and we Delivering shared value continue to advance towards our 2030 goal of eliminating deforestation Corporate responsibility and sustainability continue to become in our supply chains. We are consistently and transparently reporting increasingly interweaved with our business objectives. They our progress on our commitments related to addressing issues of serve as our social license to operate as we demonstrate how our deforestation, development on peat areas and exploitation of labor and contributions improve the lives of farmers and help grow the local communities and inclusion of smallholders (NDPE), while creating a economy. In the past year, we partnered with local governments, clear roadmap and indicators to measure our progress. NGOs and industry bodies to improve the lives of more than 1.3 million people in rural communities across Asia Pacific through It is only the beginning farmer productivity and financial training, nutrition programs and Going forward and being passionate about our purpose to nourish school building exercises. the world in a safe, responsible and sustainable way, we will continue investing in local communities through economic development and Leveraging partnerships partnerships combined with the volunteer efforts of our employees. We remain committed to working closely with governments in Working with farmers, customers, communities and other partners, the region to develop corporate responsibility programs that we look forward to bringing about meaningful change.
*Cargill follows fiscal calendar from June 1 to May 31. The period considered for the purpose of this document is FY 2017: June 1, 2016 to May 31, 2017 and FY 2018 YTD Q3: June 1, 2017 to Feb 28, 2018 Corporate Responsibility and Sustainable Development 2017-18 | 1 Leading bold impact Growing outreach USD 13 million annual charitable for change in Asia $ contribution in 2017-18 in Asia
1.9 million farmers taught sustainable agricultural practices
100 million consumers reached annually through fortified edible oils in India
Nourishing our world
1.1 million people impacted by Cargill-CARE partnership in India in the last decade
470 women farmers to be supported by Cargill- Heifer partnership in China by 2020
100,000 rural citizens impacted by Cargill-WFP partnership in Indonesia
Protecting our planet Enriching our communities
150,000 trees planted in Indonesia 85 schools built in Vietnam impacting 13,000+ children annually 100% transparency, traceability, sustainability targeted for palm oil supply chain by 2020 18,000 children impacted through education programs in Indonesia and China 1,000 Philippino farmers trained, 300 certified in sustainable coconut oil production 100,000 people provided better healthcare services in India, Thailand, Indonesia
2 | Corporate Responsibility and Sustainable Development 2017-18 Adding bite to Indonesia’s food system The World Economic Forum (WEF) in its 2016 Global Risks study Farmer livelihoods have been additionally impacted through a host has pointed to food security being a Number 1 risk for nations, a of local economic empowerment initiatives and a Rural Development Arief Susanto challenge that is particularly significant in the Asian continent, where Campaign. Whether it is preserving and promoting the age old Country Representative, Indonesia problems related to hunger are most acute. method of dyeing—Batik or helping chicken, fish, and goat farmers to scale incomes, Cargill has increased its outreach. Recognizing this as a key issue impacting its own economy, Indonesia has been focused on how it can provide food to its As an effort targeted at enriching communities that surround its population that is nutritious, healthy, sustainable and above all centers and facilities, Cargill has been enhancing the infrastructure of secure and safe. In order to support the government of Indonesia schools, built roads, as well as sports and health facilities, creating a in these endeavors Cargill in Indonesia has rolled out programs that state-of-the-art educational foundation for a better life for children. aim to play a transformational role in the country’s food and food security system and prepare it for exigencies going forward. Interestingly, and spurred by the great forest fires that had Indonesia in their grip in 2015 and grew into a major life and environment Recognizing that child nutrition is a crucial element for Indonesia to hazard, Cargill has been working on an on-going program to free continue to thrive, Cargill has been working to blend education with villages from fires and decrease the number of fire incidents, nutrition and a healthy lifestyle, to build a robust pipeline of workers together with the Indonesian government. for tomorrow. Pursuing the path of sustainability, Cargill in Indonesia has been At another level, Cargill has been lending a helping hand in particular working to reverse the impact of deforestation and save the Anoa, to cocoa, oil palm plantation and coconut farmers through trainings an endangered miniature water buffalo that lives only in that country. on Good Agricultural Practices (GAP), intercropping and enhanced farm management skills and the strengthening of farmer groups. Cargill has stayed on its chosen tracks in the area of corporate These initiatives have helped them to enhance crop yield, improve responsibility and sustainable development in Indonesia, delivering their livelihoods, access marketplaces, become ‘Sustainable on the promises it has made to nourish Indonesia and mainstream its certified’ and build transparency in their supply chains. marginalized.
Corporate Responsibility and Sustainable Development 2017-18 | 3 Key milestones in Indonesia
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Establishes a feed mill in Bogor, West Java. Sets up agricultural Completes Forms joint venture Today, serves hundreds of farmers with supply chains by acquisition of with So Good Food, customized animal nutrition solutions for starting soybean import Poliplant Group, to make fully-cooked poultry, pork, aquaculture and ruminant and later expanding adding around poultry products in to grain and oilseeds 35,000 hectares of Indonesia supply chain activities company land and 15,000 hectares of smallholder land Establishes cocoa Acquires major stake in Expands capacity of Sorini business in business in Makassar, PT Sorini Agro Asia Cikande Sub-district by building a new South Sulawesi plant to produce Glucose syrup and Maltodextrine
Cargill enters oil palm Develops 10,000 business by acquiring hectares of new Hindoli, oil palm sustainable oil palm plantation in South plantation at Mukut, Sumatra South Sumatra
Invests USD100 million to construct cutting-edge cocoa processing facility in Gresik, East Java
Sets up palm mills and a kernel crushing plant in West Kalimantan and South Sumatera
4 | Corporate Responsibility and Sustainable Development Report 2018 Nourishing Indonesia in a safe, responsible and sustainable way
Corporate Responsibility and Sustainable Development 2017-18 | 5 Walking in the path of Sustainable Development Goals (SDGs)
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While for the purpose of this report we are spotlighting the initiatives that Cargill is rolling out across the Asia Pacific region to support the UN Sustainable Development Goals, the organization is also working across 70 countries around the world where we are present to advance this commitment.
Cargill is committed to supporting the Sustainable Development Goals (SDGs) established in 2015 by the United Nations. We are using our global reach, deep insight and experience within the agriculture, food and nutrition sectors to help achieve the SDGs. Our work in nourishing our world, protecting our planet and enriching our communities has uniquely positioned us to understand the role we can play and contribution we can make, alongside our partners, to advance the aim of the global goals to end poverty, address climate change and ensure prosperity for all by 2030.
6 | Corporate Responsibility and Sustainable Development 2017-18 No poverty Zero hunger Good health and wellness Quality education Committed to benefiting one million Cargill and WFP have collaborated to Cargill in Vietnam has launched a Cargill’s Global Scholars Program, cocoa farmers in Indonesia, Cote support Homegrown School Meals large-scale safety vehicle initiative to provides financial support to d’Ivoire, Cameroon, Ghana and Brazil programs in Indonesia, Kenya and promote traffic safety and safe driving undergraduate students in China, by 2030, Cargill’s Cocoa Promise Honduras behaviors in commercial operations. India, Indonesia, Russia, Brazil and Program is improving incomes and Cargill will offer 720 cars on rental to USA. In Vietnam, Cargill will build 100 living standards, and delivering a employees by 2020 schools by 2020 (from the existing 85) transparent and sustainable supply chain
Gender equality Clean water and sanitation Decent work and economic growth Reduced inequalities Responsible consumption and Cargill-Heifer’s Qingshan Sustainable Cargill has partnered with TechnoServe Cargill’s Agri Fellow program in As part of a Sustainable Coconut Oil production Livelihoods project enables women- (Project Saathi), installing a 1000-meter Karnataka, India is helping rural Program in the Philippines, Cargill Cargill in India has changed the led, family-owned poultry farms in water supply for 1,200 farming unemployed youth to build agri- is supporting farmers to achieve the packaging of its NatureFreshTM Anjiaba and Zhongyan villages in households in Davangere, Karnataka. enterprises. In Indonesia, Cargill is Rainforest Alliance certification for their wheat flour brand, replacing plastic China to thrive by increasing family Cargill also provides water purification providing training to help farmers/ copra. 2,500+ small farmers have also with polymers with better functional income, creating an organized chicken systems to schools in India smallholders improve their income and received access to healthcare properties. This has lowered plastic production system and building market food security usage by 27% and Cargill’s carbon linkages footprint
Climate action Life below water Life on land Peace justice and strong institutions Partnership for goals Cargill aims to reduce GHG emissions Cargill is helping aquaculture Cargill aims to build a 100% Cargill obeys the law, conducts Cargill is partnering with organizations in its operations by at least 10% by producers raise more fish and seafood transparent, traceable and sustainable its business with integrity, keeps and stakeholders to meaningfully 2025. Cargill’s commitment is aligned sustainably and adapt to climate palm supply chain in Indonesia by accurate, honest records, honors impact the nutrition and health of those with science-based targets, aimed at change. The focus is on increasing 2020. It is utilizing a High Carbon business obligations, treats people in its communities, foster sustainable keeping the global rise in temperature farmer yields, and improving food Stock (HCS) study to determine eligible with dignity and is committed to being economic development and promote below 2 degrees celsius security and farmer livelihoods planting areas of palms a responsible global citizen responsible business practices in its supply chains
Corporate Responsibility and Sustainable Development 2017-18 | 7 Nourishing our world Promoting healthy living, hearty livelihoods
Ellyn is among many students intervention in this nutrition who have a similar story to tell project, learners like Ellyn and whose lives are impacted benefited from access to healthy by the school meal initiative meals at school and grew strong launched by Cargill in support and smart. of the Indonesian government’s National Nutrition Program for The fact that the meals were School Children (PROGAS). ‘home grown’ further doubled Cargill partnered with the World the impact of the project. For Food Program (WFP) to help besides improving the nutrition with the integration of the project of the children in Indonesia’s “I am Ellyn and I study in the Ngerong Elementary and at the end of 2017, had poorest classrooms, it helped to served more than 76,000 in three build sustainable supply chains school. For many years, I began my day with breakfast at provinces of Indonesia—Banten, for these meals. The program home that was prepared by my mother. Since resources East Java and Nusa Tenggara for instance, used ingredients were limited, my family would give me IDR 5,000 to buy Timur. It additionally designed sourced locally from smallholder food at school, but that amount was not sufficient for and distributed material on farmers. In this way it increased anything except unhealthy junk food. This was my daily nutrition, health and hygiene to the productivity and income of routine until a new school program gave me a chance 100,000 students across the these men and women farmers. to receive delicious and nutritious breakfast three times country. At a second level it drew into a week for an entire year! The food was prepared freshly Through the provision of a its fold the parents of students, by the parents of students. Besides keeping me healthy, hearty breakfast three times a who were assigned the task the program taught me to adopt a hygienic lifestyle by week to the schools, as well of preparing the meals. These washing my hands and maintaining personal cleanliness. as nutrition education and adults were organized into Owing to the high quality food I ate, I am feeling much character-building, PROGAS cooking groups and received healthier as compared to the previous year. I have also helped improve the eating and training in food preparation, food hygiene habits of school age safety and storage, nutrition, been able to save the IDR 5,000 and use it for other children. Each PROGAS meal healthy diets and above all purposes”. contained a minimum of 400-500 hygiene. The goal was to Ellyn Kcals and fulfilled 25 percent strengthen best practices for Cargill-WFP project of the daily nutrient needs of meals programs, and inculcate children. Through Cargill’s timely clean living behavior so that
8 | Corporate Responsibility and Sustainable Development 2017-18 Corporate Responsibility and Sustainable Development 2017-18 | 9 future generations would be healthy.
As part of the project, Cargill also worked with WFP to strengthen the national capacity of provincial and local government officials to take over safety net programs that protected the most vulnerable. Government employees were imparted training on balanced diets, dietary diversity, and health and hygiene including proper hand washing, at PROGAS target schools. 76,000 portion of meals served through our nutrition related programs in 2017-18
30% cooks wanted to learn healthy recipes and cooking techniques
Children eating healthy breakfast increased from 24.7% to 47.7%
Absences halved from 2 days to 1 Photo credit: Photo: @WFP/Fauzan Ijazah day a month
Corporate Responsibility and Sustainable Development 2017-18 | 9 Protecting our planet Focusing on sustainable supply chains
Kusno was among the seven chains and community water farmers who helped plant and resources. maintain 8,000 trees at the Watupereng water springs in Promoting sustainability Jatiorjo Village as part of the practices within our palm oil Sorini program, initiated by supply chain, we worked with Cargill’s Starch and Sweetener farmers, governments and business in Indonesia. The environmental organizations to farmers joined the Jatiarjo achieve greater transparency, Community Forest Village traceability and sustainability in Organization to reverse the our palm supply chain. The plan “I am 48-year-old Kusno, a goat and vegetable farmer impact of tree destruction and is to reach 100 percent success in the forest area. Facing the challenge of forest fires set felling. in each of these areas by 2020. off by hunters that destroyed newly planted trees during Besides encouraging farmers to the drought, and wild pigs, monkeys and hedgehogs, Also, 3,000 farmers were take the path to sustainability, I decided to participate in a tree plantation exercise trained and 825 prepared for a Cargill itself walked the talk, initiated by Cargill. As compensation, Cargill gave me sustainability certification in the taking measures to strengthen coconut production project in two goats of good breed to improve my livelihood. I its Green focus. In 2017-18, the Philippines and Indonesia. now have seven goats and can sell young goats every four Cargill Indonesia monitored months, which helps me pay for the education of my the Green House Gas (GHG) children. I now remove the weeds in the planted areas— emissions and water usage of its Planting trees, which I use to feed my goats—ensuring that the trees plants and facilities, drew power protecting forests from renewable energy sources In 2017-18, we promoted grow well”. and devised an innovative balanced land use and Kusno method to reuse nutrient-rich sustainable agricultural practices Sorini Project waste water for land use in our to protect forests. This meant palm plantations. It also adhered a continued focus on our tree to Cargill’s focus on water, plantation drive, which we including the water used in launched on Earth Day 2015, operations, water quality, both in to commemorate Cargill’s terms of waste water treatment 150th anniversary. Committed and water quality in its supply to planting 150,000 trees in
10 | Corporate Responsibility and Sustainable Development 2017-18 three years, we grew crop trees such as coconut, cocoa and fruit in 2016-17 to support bio- diversity and the livelihoods of surrounding communities. In another move, our employees planted around 500 mangroves in Jakarta Bay, to reverse the damaging effect of erosion and high tides on the coastline.
Protecting wildlife Recognizing that wild animals could stray into an operating plantation, and that employees needed to respond swiftly to their presence, keeping themselves and the animal safe, Cargill Indonesia launched the Human-Wildlife Contact (HWC) program. Introduced in Poliplant, our oil palm plantation in West Kalimantan, HWC established operating guidelines and practical techniques for employees to keep themselves and any wild animals safe, if contact occurred between the two.
7,000 trees planted in 2017
Corporate Responsibility and Sustainable Development 2017-18 | 11 Enriching our communities Transforming learning, health, livelihoods and infrastructure
Faiz is one among over 6,000 Providing better students from 42 schools education to every child managed by Yayasan Harapan In 2017-18, Cargill extended Masa Depan Cerah (YHMDC), its support to public schools an education foundation set up across Indonesia. We renovated and supported by Cargill’s oil schools and began a campaign palm plantation business, Cargill to provide books to children. Tropical Palm (CTP). Founded Since 2014, Cargill has donated in 2012, YHMDC schools are around 60,000 books, renovated located in South Sumatra and 101 schools and 55 libraries, West Kalimantan and take presented 899 scholarships and pride in their innovative student trained 191 teachers. enrichment programs. “I am Faiz Rizki Maarif from Manis Mata village in Empowering Kalimantan, Indonesia and I study in the YHMDC In 2017, CTP partnered with the school. I wake up every day before the sun rises, pray, Chelsea FC Foundation for the communities In 2017-18, Cargill also began wash up, have breakfast and ride to school in my father’s Cargill-Chelsea Football Festival projects that were aimed at the car. Once the morning bell sounds in school, I enter the Indonesia 2017. The objective local economic empowerment. of the festival, held in South classroom with my friends, greet the teacher and take These included a slew of Sumatra and West Kalimantan, my seat. I enjoy studying science, mathematics, Bahasa programs in the areas of was to use the language of Indonesian, English, and farming and often, after school, chicken, fish, goat and vegetable football and Chelsea FC’s farming for communities near join in the extracurricular activities such as the science star power to inspire and help Cargill facilities and overall club. I have also been to Jakarta twice to participate in children in rural Indonesia realize improvement of infrastructure. A science competitions with my school. My dream is to be their potential and view the world Batik village was set up to revive a scientist because I want to invent things that are useful as their oyster. the traditional art of dyeing and become famous like other inventors”. cloth among local craftsmen. Faiz Rizki Maarif More than 1,500 students and a In all, around 900 farmers were Cargill’s YHMDC school student classroom of YHMDC physical impacted by these programs and education teachers benefited improved their livelihoods. from the clinics conducted by Furthermore, Cargill supported the Chelsea coaches. local communities by building
12 | Corporate Responsibility and Sustainable Development 2017-18 and maintaining roads and bridges in our oil palm plantation. In Indonesia, we contributed to local development by building and repairing close to 400 km of road, renovating 43 public facilities, providing 46 units of safe water facilities and providing regular medical services for 7,700 community members.
Raising the health and wellness quotient Health and infrastructure continued to be a top priority for Cargill in Indonesia. In 2017-18 we provided free medical care through clinics at our oil palm plantations. Local doctors made their way to remote villages to hold “visiting clinics” and offer 2,500 book being donated in 2017 through book for medical aid to patients. Around kids program, number of impacted library 7,722 people were benefited by the free medical services. 400 teachers attend training, attend from 19 schools Cargill also collaborated with CARE International to 56 community groups join our economy development implement ‘PROSPER’, a program, equal to 272 families two-year program designed to improve water, sanitation and hygiene practices for students in 7,700 persons received medical support through our Indonesia. health program
Corporate Responsibility and Sustainable Development 2017-18 | 13 Employee engagement Moving forward by giving back
Cargill’s interventions to enrich business objectives while serving our communities, improve Over 75 employees volunteered our communities depend in large local communities. nutrition, strengthen education for the Cargill-WFP school meals part on our employee volunteers, opportunities and protect our program and held awareness who work closely with our Employees and retirees global natural resources. workshops on health and partners to make a difference contribute on an individual nutrition, served meals to the to the world surrounding us. basis with their co-workers and In Indonesia, Cargill employees children and attended sports Employees work individually or through Cargill Cares Councils are encouraged to get involved and cultural programs at these collectively, to create impact by in activities like strengthening in a wide range of corporate schools. taking action. Globally, Cargill has of schools, mentoring and responsibility activities as part of 350 employee-led groups called tutoring youth and children, a volunteer scheme. More than 20 employees Cargill Cares Councils (CCCs) to educating farmers, cleaning up regularly volunteered at the implement strategic community shorelines, promoting health, In 2017-18, our employees were Cargill-CARE PROSPER engagement activities. The planting saplings and supporting involved in several events and program and joined the project Councils ensure that we are economic development and initiatives. team as it conducted WASH investing Cargill’s financial and charitable giving. The efforts (Water, Sanitation and Hygiene) human resources to meet our aim to reduce hunger in 170 people, for instance, trainings and awareness participated in a tree planting sessions for school children, and mangrove planting activity, their parents and teachers. as part of our overall Earth Day agenda. The goal was to An immunization program, create greater awareness about launched in partnership with the need for protecting and Ronald McDonald House expanding the green cover and Charities drew interest from natural eco-systems. employees. The Charity used its Mobile Clinic in Jakarta area to Employees got into the act, benefit the underserved. cleaning a beach in Amurang in North Sulawesi as part of These activities were conducted the Earth Day program. 45 in each location, in coordination employees scanned the beach with Indonesia’s local Cargill for marine plastic pollutants and Care Councils. Employees took litter, in an effort to keep the part in the activities based on coast tidy. their interest and time availability.
14 | Corporate Responsibility and Sustainable Development 2017-18 Corporate Responsibility and Sustainable Development 2017-18 | 15 Our partners around the world
16 | Corporate Responsibility and Sustainable Development 2017-18 We are forging a new path with our corporate responsibility and sustainable development programs with a focus towards helping the world thrive PT Cargill Indonesia Wisma 46 – Kota BNI Lt.26. Jl. Jend. Sudirman Kav. 1. Jakarta 10220, Indonesia Tel.: +62-21-5746868, +62 (0)21 5789 1900