PT Lautan Luas Tbk
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:25,443 tCO2e/year (Scope 1)
Scope 1 Emissions:25,443 tCO2e/year
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:271,247 GJ/year
Water Consumption:628,690 m3/year
Waste Generated:2,504,882.37 kg hazardous waste; 489,119 kg non-hazardous waste
Carbon Intensity:Not disclosed
ESG Focus Areas
- Environmental
- Social
- Governance
- Economic
Environmental Achievements
- Hazardous and toxic waste generated was decreased by 3%
- Non-hazardous and toxic waste generated was decreased by 23%
- Water usage decreased by 10%
- Total energy consumed in 2021 reached 271,247 GJ, lower than the previous year.
Social Achievements
- 11 million safe working hours achieved in 2021
- Employee turnover rate decreased to 3.87% in 2021 from 4.81% in 2020
- 7,580 training participants in 2021
- Total training cost for employees during 2021 is Rp3,738 Million
- Construction of 3 schools in 2021
- Support for Proper House Renovation for Poor Communities: 9 houses in 2021
Governance Achievements
- Establishment of Sustainability Committee in early 2022
- Implementation of ISO 14001 Environmental Management System and ISO 45001 Occupational Safety and Health Management System
- No reports concerning corruption, bribery, and/or fraud in 2021
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Supply chain disruptions due to the COVID-19 pandemic, including global container shortages and increased prices of imported raw materials
- Ensuring the supply of raw materials to support production at subsidiaries
Mitigation Strategies
- Providing buffer stock and exploring substitute vendors to avoid raw material shortages
- Raising awareness among transporters and freight forwarders on health, safety, and environment (HSE) through dissemination and training
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Strict supplier requirements to ensure material quality
- Qualification Procedures for New Vendor Principal (Trade) (P.MKT.0053)
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Increased OPEX and COGM due to potential carbon tax
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI Sustainability Standards 2020, POJK No. 51/POJK.03/2017, ISO 26000 Guidance on Social Responsibility, Sustainable Development Goals (SDGs), AA1000 Stakeholder Engagement Standard (SES)
Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, SMK3, Responsible Care® Indonesia, Authorized Economic Operator
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 3
- Goal 4
- Goal 8
- Goal 12
- Goal 13
- Goal 16
Not disclosed
Sustainable Products & Innovation
- Environmentally friendly products
- Masterbatch Oxo-biodegradable additive for plastics
- Bioplastic from cassava starch
- Innovations in water treatment products (ultra-filtration, ozone, sterilizer, control system)
Awards & Recognition
- Not disclosed
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:56,650.6 tCO2e/year
Scope 1 Emissions:30,492.3 tCO2e/year
Scope 2 Emissions:26,158.3 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:731,261.7 GJ/year
Water Consumption:704.04 ML/year
Waste Generated:1,690 tons/year (Non-Hazardous) + 1,59 tons/year (Hazardous)
Carbon Intensity:0.09 tCO2eq/ton (manufacturing)
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced GHG emissions (Scope 1 and 2) from 72,650.6 tons CO2eq in 2022 to 56,650.6 tons CO2eq in 2023.
- Implemented energy-efficient lighting in factories and offices.
- Assessment of solar panel usage for production machinery.
- Implemented a circular economy approach, minimizing waste through recycling and reuse.
- Several manufacturing facilities received Blue PROPER awards for environmental management.
Social Achievements
- Launched the Kampung Lautan Luas program, building 70 houses, 7 schools, 7 clean water centers, and renovating 7 stalls.
- Implemented the Incredible Mom Agent (IMA) program, providing additional income for 69 women.
- Provided health education and palliative care to communities.
- Granted scholarships to 25 students and provided living expenses for 20 students.
- Conducted various CSR programs focusing on community empowerment, health, education, and livelihood development.
Governance Achievements
- Established a Sustainability Council Board.
- Implemented a Code of Conduct and Anti-Corruption Policy.
- Conducted a Good Corporate Governance (GCG) assessment.
- Implemented a whistle-blowing system.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Uncertain global economic conditions and price volatility affecting revenue and profit margins.
- Uneven understanding of sustainability among stakeholders.
- Need for support from all business units and functions in implementing sustainability initiatives.
- Potential risks of air, water, and soil pollution during production.
- Potential risks of chemical spills during storage and distribution.
Mitigation Strategies
- Implementing sustainable practices across all business operations.
- Strengthening internal communication and training on sustainability.
- Regular coordination and reporting to company leadership.
- Implementing ISO 14001 environmental management system.
- Collaborating with licensed third parties for waste management.
- Implementing a chemical emergency response system.
- Promoting Resource Efficiency and Clean Production (RECP).
- Evaluating transporter performance and compliance with ESG aspects.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Requiring suppliers to register BPJS Ketenagakerjaan for their workers.
- Providing information on OHS policies and procedures.
- Using OHS implementation as a key parameter in supplier selection and evaluation.
- Ensuring adequate PPE use by supplier workers.
- Prioritizing suppliers with ISO 45001 certification.
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Exploring potential use of renewable energy.
Reporting Standards
Frameworks Used: GRI Standards 2021, POJK No. 51/OJK.03/2017, SEOJK No. 16/SEOJK.04/2021
Certifications: ISO 9001, ISO 14001, ISO 45001, SMK3
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- No Poverty
- Good Health and Well-being
- Quality Education
- Gender Equality
- Clean Water and Sanitation
- Affordable and Clean Energy
- Decent Work and Economic Growth
- Industry, Innovation and Infrastructure
- Reduced Inequalities
- Sustainable Cities and Communities
- Responsible Consumption and Production
- Climate Action
- Peace, Justice and Strong Institutions
- Partnerships for the Goals
The report details how various initiatives contribute to these SDGs.
Sustainable Products & Innovation
- Water and wastewater treatment equipment and systems.
Awards & Recognition
- Best AEO Importer Award
- PUB Award (Singapore)
- GINSI Award 2023
- Responsible Care Indonesia Gold and Silver Awards