Sustainability into Action

We have numerous initiatives within each of the Sustainability Pillars.

Pillar 1: Efficient Production System

Healthy Animals

As a leading protein producer, we are committed to provide the best possible care for the animals we raise through the adoption of the Five Freedoms of Animal Welfare.

We ensure a favourable living environment for our animals to thrive:

We produce a balanced feed, in line with nutritional needs during each growing phase;
We implement proper and safe handling practices to reduce animal stress at farms, hatcheries and during transportation;
We implement stringent biosecurity protocols to create a healthy environment for our animals; and
We vaccinate our animals to boost the immune system as a preventive measure to strengthen resilience against animal health threats. Our subsidiary Vaksindo is a leading poultry vaccine producer in Indonesia. You can read more about Vaksindo here

Efficient Use of Resources and Minimisation of Waste and Emissions

Energy

To reduce our carbon footprint, we focus on utilising renewable energy sources (i.e. solar photovoltaic systems, biomass, biogas) and increasing efficiency across our operations through process automation and digitalisation. In the 2021 Sustainability Report, we extended our monitoring to include Other Indirect (Scope 3) GHG emissions.

Water

We are committed to minimise our water use, avoid wastage and treat and manage properly wastewater, to preserve this precious resource for future generations.

In 2021, our subsidiary PT Japfa Tbk issued a Sustainability-Linked Bond (“SLB”), with sustainability KPIs to build nine water recycling facilities at our poultry operations in Indonesia. This SLB was the first of its kind in the agri-food industry in the world.

Local sourcing

In line with our approach “produce locally, consume locally”, we prioritise local procurement within the countries we operate in.

Air Pollution Control

To mitigate emissions from operational processes, such as dust particles and fly ash from feed manufacturing, we adopt dust collectors in all our feed mills and we continuously monitor the emissions to ensure we comply with prevailing standards.

Responsible Waste Management and Utilisation

While reducing our impact on the environment, we aim at creating value from the waste we produce through product modification, waste sorting and conversion into usable resources (e.g. use of poultry manure as fertiliser).

Pillar 2: People Development

Empowering our Employees

Our people are our most valuable resource and we strive to foster their professional growth and development in a safe, inclusive and enriching working environment so that we can put our best foot forward as a team.

Supporting our Farmers

We produce broiler chicken in our company managed farms, as well as in contract farms under a partnership programme. In Indonesia alone, we partner with around 10,000 poultry contract farmers.

Staying true to our motto of Growing Towards Mutual Prosperity, the partnership programme aims to provide a substantial socio-economic contribution to these contract farmers. The programme builds and enhances farmers’ knowledge through education on up-to-date farming practices. For example, Japfa provides technical expertise to its contract farmers to upgrade their farms from open to closed-house systems with better controlled environment, resulting in healthier chickens and increased productivity. In addition, Japfa’s contract farmers have a clear contractual agreement on profit sharing and a floor price which helps buffer market price volatility.

Following the success in Indonesia, we have replicated this contract farming arrangement in Vietnam, India and Myanmar, with specific terms and arrangements according to the conditions in each country.

In 2020, Japfa was invited to participate as a road tester in a Social Life Cycle Assessment (LCA) project of the United Nations Environment Programme (UNEP), where we took the opportunity to assess the extent of the benefits of our programme for our contract farmers. According to the findings, 86% of the contract farmers interviewed experienced an income increase since their partnership with Japfa began. In addition, the Social LCA demonstrated that being a contract farmer with Japfa improves the farmer’s skill set, productivity, yields and, ultimately, economic livelihood and well-being.

Contributing to the Community

In line with our commitment towards UN SDG2: Zero Hunger, our development programmes focus on improving the quality of life of the communities where we live and operate.

We work to cultivate the next generation of farmers who will continue our mission to produce staple protein foods for the masses in a sustainable way, some examples are our Edufarmers Foundation, and the Teaching Farms programme in collaboration with universities.

As we recognise the importance of biodiversity, we constantly look for opportunities to conserve nature such as trees planting, mangrove and coral restoration, in an effort to contribute to maintain a harmonious ecosystem and a better environment for the communities.

We believe as well in the importance of sport as a vehicle to promote a healthy living and a way to support young talents in developing their skills. In Japfa, we have the Japfa Chess Club and Tournaments to support young players through chess, which has been linked with improving children's concentration and problem-solving.

Edufarmers Foundation (formerly Japfa Foundation) is a non-profit organization established in 2015 to accelerate the development of farmers and youth through education and practical R&D to forge the new generation of farmers in Indonesia.

Pillar 3: Improving Nutrition

Our efforts address hunger reduction by increasing access to affordable staple proteins as well as by advocating, through education initiatives, the importance of a balanced diet and good hygiene for a healthy living. This sustainability pillars aligns to the recent FAO report* highlighting that more than 3 billion people could not afford a healthy diet in 2020, and Asia accounts for the largest share with 1.9 billion people for whom a healthy diet is out of reach.

*FAO, IFAD, UNICEF, WFP and WHO. 2022. The State of Food Security and Nutrition in the World 2022. Repurposing food and agricultural policies to make healthy diets more affordable. Rome, FAO.

Japfa for Kids

Japfa for Kids is our flagship CSR programme dedicated to improving the well-being of children, particularly those living in rural areas. Our programme is designed to train and enable school children to adopt nutritional health and hygiene practices in everyday life to promote lasting social change in their communities.

Helping children understand the importance of healthy nutrition, personal hygiene and a cleaner school environment can boost their ability to study and build incremental motivation for higher education, hence realise their social and economic potential as future adults. By adopting the Japfa for Kids programme, children can also become agents of change in their communities, especially those in rural areas, that face many challenges in terms of resources and know-how.

The programme is currently carried out in Indonesia, with projects tailored to suit local needs.

For the full list of the community activities that we implement every year, please check our Sustainability Reports

Please check our Sustainability Reports here

Key Achievements and Initiatives