JAKARTA, Indonesia, Oct. 4, 2021 /PRNewswire/ — Pertamina has proven its commitment in implementing the ESGs (Environment, Social, Governance) through the establishment of 10 Sustainability Focuses. These ten focuses are the company’s priorities with various targets and efforts to achieve them.
PT Kilang Pertamina Internasional (KPI) Refinery Unit Cilacap, Central Java, Indonesia has optimized a solar power plant (PLTS) with a capacity of up to 1.34 Mega Watts for Pertamina’s office, residential and hospital areas. Solar power energy is also channeled for surrounding residents and public services in the southern Cilacap area.
Director of Finance, Emma Sri Martini explained, these 10 Sustainability Focuses will be incorporated to all lines of Pertamina Group. He continued, there are three main aspects, each with its own derivative program. Namely, the Environmental aspect will have three focuses, the Social aspect with five focuses, and the Governance aspect will include two focuses.
Environmental Aspect
“There are three sustainability focuses within the Environmental aspect. The first focus is related to tackle climate change, the second will emphasize environmental footprint reduction, and last but not least is to protect and preserve biodiversity,” said Emma.
As a company engaging within the energy sector, environmental aspects are most significant, especially in tackling climate change and reducing environmental footprint. In this case, Pertamina has set targets to reduce emissions as of 30% towards 2030 compared to the 2010 baseline. Currently, in 2020 Pertamina has thrive in reducing 27% of total emissions.
Social Aspect
Within the social aspect, the focuses implemented are heavily centered towards health and safety issues, incident prevention measures; recruitment, development, and retention of employees; innovation and research as well as building relationships with the community.
To support this aspect, Pertamina has made several efforts, such as a commitment to creating a respectful work environment (Respective Workplace Policy, Zero Harassment Program), and policies to address gender equality. Pertamina also implements HSSE SUPREME as means of incident mitigation, resuming community empowerment and development programs through various CSR activities, especially for SMEs.
Furthermore, Research & Innovation is also a major part of this aspect, especially in supporting technology advancement within the scope of New & Renewable Energy. This effort includes the initiation of the CCUS (Carbon Capture, Utilization, and Storage) as part of our innovation to reduce carbon.
“To monetize CO2, we’ve implemented the CCUS. Moreover, we are ready to extend cooperation with various technology providers in implementing this innovation to numerous fields,” said Emma.
Governance Aspect
Meanwhile, for Governance, there are two derivative focuses, namely cyber security, and corporate ethics.
“As cyber security is part of our government aspects, we sought the opportunity to corelate said issue as part of our corporate ethics. I believe Pertamina is doing its upmost exertion to improve such aspects,” added Emma.
To do so, Pertamina has built a Special Team for Cyber Security, by implementing an Anti-Bribery Management System, Whistle Blowing System, and has collaborated with the KPK for mandatory reporting of LHKPN (State Officials Wealth Report).
Of these ten focuses, as of 2021, Pertamina has succeeded in carrying out various ESG initiative programs. This includes the development of renewable energy in which Pertamina has succeeded in building 76 Green Energy Stations (GES). Pertamina will also build solar panels with a capacity of 500 MW in all areas of Pertamina Group Operations which is targeted to conclude by 2030. Moreover, as many as 205-300 Pertamina gas stations throughout Indonesia are aimed to have solar panels installed.
Pertamina will also double its geothermal capacity until 2030. Consequently, this will further increase the efforts within new renewable energy, especially in the production of electricity for the next few years.
Pertamina is fully committed to implement the Environmental, Social, & Governance (ESG) aspect. Thus, encourage Pertamina’s global ESG rating. In September 2021, Pertamina received an ESG Risk Rating by Sustainalytics with an ESG Score of 28.1 and a medium risk category for the financial impact of ESG factors.
This Risk Rating experienced a significant improvement from previous, reaching 41.6 (Severe Risk) in February 2021.
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