At the S-LCA International Conference, JAPFA Shares Science-Based Sustainable Finance Strategies

Kevin Monteiro, Director and Chief Financial Officer Japfa Ltd (doc. Japfa)

BOGOR - PT Japfa Comfeed Indonesia Tbk (JAPFA) shared its experience as the first integrated poultry company in Indonesia that integrates formal scientific studies into its financial strategy in a panel session entitled "Science-Based Sustainable Finance" at the Social Life Cycle Assessment (S-LCA) Conference in Bogor.

During the session, JAPFA explained how the company's comprehensive Life Cycle Assessment (LCA) study became a strategic foundation in accessing various global sustainable financing instruments, while supporting the company's vision of "Growing Towards Shared Prosperity".

This approach further confirms JAPFA's position as a pioneer in the Indonesian poultry sector in implementing comprehensive scientific evaluation to measure environmental impacts throughout the production chain owned by the company.

As sustainable finance practices grow globally, investors, bondholders, and banking institutions are increasingly considering environmental and social aspects in investment decision-making. On the other hand, financial institutions are also facing increasing demands to ensure that the sustainability initiatives they finance are truly credible and have a real impact.

In this context, science-based methodologies such as Life Cycle Assessment (LCA) become an important instrument that is able to provide a transparent and reliable basis in determining sustainability targets and measuring their achievement. This discussion panel also encourages LCA practitioners who are present in the largest S-LCA conference to date to form a professional accreditation institution, so that the results of the studies produced can be increasingly trusted by the financial community and other stakeholders.

The discussion highlighted the importance of accurate scientific data in identifying environmental hotspots, so that companies can set ambitious and relevant sustainability performance targets. The findings from the study then became the basis for the preparation of Sustainability Performance Targets that are integrated into JAPFA's sustainable financing instruments.

Kevin Monteiro, Director and Chief Financial Officer of Japfa Ltd, stated that building credibility in the eyes of ESG investors must begin by making sustainability a core part of the business, not just a separate initiative. This means that companies need to focus on aspects that are truly material along the value chain to identify areas that have the most significant improvement potential.

"One of the most credible ways to do this is through a science-based LCA approach," he said in a written statement, Friday, June 19.

He added that JAPFA's experience in integrating a scientific approach with financial strategies has produced a variety of tangible achievements. In 2021, the company managed to obtain funding through a Sustainability-Linked Bond (SLB) worth US$350 million, which was the first in the world for the agrifood sector.

This achievement was then continued in 2025 through a Sustainability-Linked Loan (SLL) worth US$150 million which for the first time included social indicators (Social KPI), with a focus on improving the nutritional status and well-being of children, especially in rural areas, through the JAPFA for Kids program.

JAPFA's commitment to sustainability is also supported by the Japfa Sustainability Reporting System (JSRS), a digital ecosystem that manages 5,095 ESG (Environmental, Social and Governance) data points every month across the Company's operations in various countries.

Not only focusing on internal operations, JAPFA also contributes to the development of global industry standards through collaboration with the United Nations Environment Programme (UNEP) in the first international study on the livelihoods of plasma farmers. The results of the study also serve as the basis for the preparation of S-LCA guidelines for the global poultry industry.

Thanks to its transparency and strong sustainability performance, JAPFA managed to enter the list of "World's Best Companies 2025" by TIME and Statista, as well as winning the "Best Sustainability-Linked Loan - Agriculture" award in 2026.