Climate Change Data

PT Pan Brothers Tbk

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Renewable Energy Share:1.57% (2020)
Waste Generated:1205 tonnes/year (2020)

ESG Focus Areas

  • Economic Sustainability
  • Environmental Sustainability
  • Social Sustainability

Environmental Achievements

  • 29.87% Reduction in Energy intensity
  • 31.92% Reduction in Water Intensity
  • 25% Sustainable Material Sourcing in 2020
  • 23.3% Local Material Sourcing in 2020
  • 1.64% Reduction in Waste
  • Green Office in Boyolali awarded Platinum standard by Green Building Council Indonesia

Social Achievements

  • Community Empowerment: IDR 467 million sales of Canteen project with MSMEs
  • Health and Well-Being: 642,481 capsules of Vitamin C donated
  • Health and Well-Being: 400,000+ non-medical cloth masks and PPE donated
  • Training and Education: 7,930 trainees and participants in various programs
  • Training and Education: IDR 6.912 billion academic scholarships and education subsidies
  • Training and Education: 123,034 total training hours
  • Occupational Health and Safety: 0 fatal incidents caused by work accidents in 2020
  • 10.91% of total employees promoted in 2020

Governance Achievements

  • Established Internal Sustainability Advisory Committee (ISAC) and Sustainability Task Force (T2K)
  • Implemented transparent supply chain and code of conduct to eliminate corruption
  • Strong financial performance with net sales revenue of USD 684.9 million in 2020

Climate Goals & Targets

Long-term Goals:
  • Double the indirect economic impact made towards the local community from 2020 by 2030
  • Double the outreach for educational programs that emphasize the importance of health and hygiene by 2030
  • Increase productivity and efficiency by an additional 25% from 2020 by 2030
  • Implement 100% data integration and communication throughout the end-to-end production process by 2030
Medium-term Goals:
  • Increase renewable energy usage to at least 31% by 2030
  • Increase % of sustainably sourced material to at least 60% by 2030
  • Halve amount/volume of waste generated for all waste types from 2020 by 2030
  • At least 75% of all non-hazardous waste generated must be recycled, downcycled, or upcycled by 2030
  • Halve our carbon footprint/GHG emissions by 2030
  • Double the amount of academic scholarship and education subsidy recipients by 2030
  • Achieve gender balance in upper management level by 2030
  • Expand our recruitment pipeline to include more diverse workforce by 2030
  • Continue to comply with regional and national minimum wage standard (UMK) by 2030
  • Halve the number of average annual work-related accidents from 2020 by 2030
Short-term Goals:
  • Increase renewable energy usage to at least 23% by 2025
  • Increase % of sustainably sourced material to at least 40% by 2023
  • Increase average training hours per employee annually to minimum of 12 hours by 2022

Environmental Challenges

  • Declining trend in global consumer spending on non-essential goods
  • Covid-19 pandemic impacting businesses
  • Difficulty meeting product quality, social, and environmental standards from local suppliers
  • Difficulty meeting production capacity required for output from local suppliers
  • Delayed shipment/logistical issues from local suppliers
  • Difficulty sourcing raw materials from local suppliers
Mitigation Strategies
  • Developed Personal Protective Equipment (PPE) products
  • Implemented Covid-19 protocols in all production facilities
  • Worked with suppliers to improve quality standards
  • Audited suppliers monthly/yearly
  • Split orders to other suppliers
  • Split sourcing to different countries
  • Collaborated with suppliers to ensure on-time shipment
  • Developed local suppliers
  • Collaborated with import suppliers to assist local suppliers

Supply Chain Management

Responsible Procurement
  • Sustainable/recycled/local procurement approach
  • Supplier assessment
  • Collaboration with suppliers to meet production lead time and output/capacity expected

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, POJK-51/2017

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 45001:2018, SA8000:2014, ZDHC, OCS, RCS, EDGE

UN Sustainable Development Goals

  • Goal 1
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 16

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Products using organic fibers and natural dyes
  • Products using organic kapok fiber

Awards & Recognition

  • Numerous awards listed in the report (too many to list individually)

Reporting Period: 2022

Environmental Metrics

Carbon Intensity:0.00004105 tCO2e/USD in 2022

ESG Focus Areas

  • Economic Sustainability
  • Environmental Sustainability
  • Social Sustainability
  • Governance

Environmental Achievements

  • Reduced energy consumption per unit of revenue from 0.0010087 GJ/USD in 2016 to 0.0009549 GJ/USD in 2022.
  • Reduced water consumption per unit of income from 0.00000246 megaliter/USD in 2016 to 0.00000139 megaliter/USD in 2022.
  • Reduced emissions per unit of revenue from 0.0000991 tCO2e/USD in 2017 to 0.00004105 tCO2e/USD in 2022.
  • Green Office Building awarded Platinum standard by Green Building Council Indonesia.
  • Two subsidiaries certified ISO 14001:2015 for Environmental Management System.
  • Installation of 1.8 MWp solar panels, targeting 1.2 MWp by end of 2023, resulting in 3 million tons/year CO2 reduction.

Social Achievements

  • CSR Program Fund 2022: USD 870,908,060
  • Zero fatal occupational injuries in 2022.
  • Total training hours for active PBRX employees & prospective employees: 354,524 hours.
  • Employees are paid above the Minimum Wage Standard (UMK).
  • Launched vocational training program in collaboration with AK Tekstil, training approximately 481 participants from 2018 to 2022.

Governance Achievements

  • Implemented good corporate governance (GCG) principles.
  • Established Internal Sustainability Advisory Committee (ISAC) and Sustainability Task Force (T2K).
  • Enforced anti-corruption policies and communication.

Climate Goals & Targets

Long-term Goals:
  • Achieve Net-Zero Emission by 2060.
Medium-term Goals:
  • Increase renewable energy usage to at least 31% of total energy mix by 2030.
  • Halve GHG emissions by 2030.
  • Increase percentage of sustainably sourced material to at least 60% by 2030.
  • Halve amount/volume of waste generated for all waste types from 2020 by 2030.
  • Achieve gender balance in upper management level by 2030.
Short-term Goals:
  • Increase renewable energy usage to at least 23% of total energy mix by 2025.

Environmental Challenges

  • Pandemic challenges impacting operations.
  • Global economic uncertainties.
  • Maintaining production efficiency in a disruptive global environment.
Mitigation Strategies
  • Investing in sustainable technological innovations to improve productivity and efficiency.
  • Promoting good corporate governance (GCG).
  • Ensuring transparency across the supply chain.
  • Implementing a new paradigm focusing on People, Planet, and Profit.

Supply Chain Management

Responsible Procurement
  • Using local and sustainable materials.
  • Engaging suppliers and customers in sustainability initiatives.
  • Supplier assessment based on categories (nominated and non-nominated).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015, ISO 45001:2018, EDGE Certification, OEKO-TEX Standard 100

Third-party Assurance: KAP Amir Abadi Jusuf, Aryanto, Mawar & Rekan (RSM International)

UN Sustainable Development Goals

  • Goal 1
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 16

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Products using organic kapok fiber.
  • Products using natural dyes.
  • Recycled fabric products.

Awards & Recognition

  • UN Women 2022 Indonesia WEPs Awards 1st Runner-up in Transparency & Reporting Category
  • Top GRC Awards 2022 #4 Stars
  • Top CSR Awards 2022 #4 Stars
  • Kadin Net Zero Hub 2022
  • ASEAN Business Award
  • Indonesia Sales & Marketing Award 2022
  • Tempo Circular Economy Award

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced emissions through digitalization and automation; implemented science-based measurement indices to evaluate ESG performance; achieved validation of GHG emission reduction target from SBTi.
  • Won the Energy and Water Saving Movement Award for Central Java Province in 2023 for the Industry category; Central Java Resilient Exporter Award for Fiscal Year 2023 in the Go Green Pioneer and Raw Material Recycle category; Subroto Award 2023 for EBTKE Subsector in the Energy Efficiency Category of Energy Management in Buildings and Industry from the Ministry of Energy and Mineral Resources.

Social Achievements

  • Facilitating women's education with U-Go; partnership with Merdeka Campus for internship programs; Award for Companies Caring and Actively Participating in the Development of Persons with Disabilities from the Regent of Boyolali.
  • Won the Indonesia Best Corporate Sustainability Initiative 2023 in the Circular Economy Category from MIX; various other awards related to CSR and sustainability initiatives.

Governance Achievements

  • Successfully conducted a Capital Increase with PMHMETD IV; received an ESG Entity Rating of '3' from Sustainable Fitch; implemented Sustainability System (Susy) for data-driven governance practices.
  • Won Top GRC Awards 2023 #5 from Top Business; various other awards related to GCG and risk management.

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero Emission by 2060
Medium-term Goals:
  • Achieve Net Zero Emission by 2060

Environmental Challenges

  • Global economic uncertainty impacting global purchasing power and apparel sales; geopolitical instability and inflation; slowdown in Indonesia's textile and textile products (TPT) industry; limited working capital support.
  • Fluctuations in raw material prices and availability due to climate change; risks to supply chain due to climate events; competition from other Asian countries with cheaper products; potential for higher import tariffs.
Mitigation Strategies
  • Close synergy between management, employees, shareholders, and business partners; utilization of industry 4.0 technology and innovation; automation and digitalization; diversification of products and sourcing strategies.
  • Investment in agility, innovation, and sustainability; proactive adaptation to changing market dynamics; strengthening supply chain through collaboration with suppliers; development of environmentally-friendly products; investment in disaster-resistant infrastructure.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Droughts

Reporting Standards

Frameworks Used: GRI, SBTi

Certifications: US Cotton Trust Protocol, Responsible Down Standard (RDS), Global Recycled Standard (GRS), ISO 9001, ISO 14001, ISO 45001, Authorized Economic Operator (AEO), C-TPAT, SA 8000, Social & Labor Convergence Support

Awards & Recognition

  • Top GRC Awards 2023 #5
  • Energy and Water Saving Movement Award
  • Central Java Resilient Exporter Award
  • Subroto Award 2023
  • Indonesia Best Corporate Sustainability Initiative Award
  • Various other awards related to CSR, sustainability, and GCG