Climate Change Data

PT. ERATEX DJAJA Tbk.

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:32,033.95 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:23,998.98 tCO2e/year
Scope 2 Emissions:8,034.98 tCO2e/year
Scope 3 Emissions:not calculated
Renewable Energy Share:18% (electricity from solar power plant)
Total Energy Consumption:305,180,926.22 MJ/year
Water Consumption:950,252 KL/year
Waste Generated:Data on total waste is incomplete. Specific waste types are reported in tons and kg.
Carbon Intensity:3.61 kg CO2e/ton of production (2021)

ESG Focus Areas

  • Economic
  • Social
  • Environmental

Environmental Achievements

  • Reduced water use intensity by 38.2% compared to 2017.
  • Started operating a 1.3 MW solar panel-based power plant, reducing non-renewable energy use by 18% of Company's electrical energy consumption from PLN.
  • Reduced energy consumption by 7.9% compared to 2017.

Social Achievements

  • Regularly organizes sewing training for Probolinggo City residents.
  • Distributed vitamins and healthy food and drinks to the community.
  • Disseminated information on the prevention and control of HIV-AIDS and Covid-19.
  • Consistently conducts cleaning activities from river waste.
  • Donated to flood victims and Semeru eruption victims.

Governance Achievements

  • Implemented an anti-corruption policy and conducts weekly refreshment training for middle management.

Climate Goals & Targets

Long-term Goals:
  • Replace coal boilers with biomass boilers by 2026.
  • Achieve 30% reduction in GHG intensity by 2030.
Medium-term Goals:
  • Gradually replace 400 clutch type sewing machines with servo motors in 2023-2026.
  • Adding tools and processes after the WWTP to increase the quality and quantity of wastewater used back into the washing process by up to 80% by 2023.
Short-term Goals:
  • Increase solar panel capacity in 2022 (1.2 MWp) and in 2024 (1 MWp).
  • Replace 1000 TL lamps with LED lamps in 2022.
  • Replace old dryer with secomatic dryer in 2022.
  • Replace old belly-type laundry machines with front-loading machines in 2022-2030.
  • Adding nano bubble machine in 2022-2023
  • Harvesting rainwater in 2022

Environmental Challenges

  • Hazardous solid waste reduction has not decreased significantly due to production needs.
  • Covid-19 pandemic impacted training and some social activities.
Mitigation Strategies
  • Replacing TL lamps with LED lamps.
  • Adding a condensate recovery system for boilers.
  • Implementing strict health protocols during the Covid-19 pandemic.
  • Conducting vaccinations for employees.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Prioritizing local suppliers when possible.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001:2015, WRAP Gold Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Sustainability
  • Health and Safety
  • Good Corporate Governance (GCG)

Environmental Achievements

  • Successfully renewed WRAP certificate with Gold category.
  • Installed a 1.3 MW solar panel based Power generation capacity in Dec 2021.
  • Planning to invest in an 8-tonne gas boiler in 2023 and a biofuel-based boiler in 2024 to reduce coal consumption and CO2 emissions.
  • Exploring options to increase the usage of recycled water in coming years.

Social Achievements

  • Celebrated “Mothers Day” in the factory premises with employees and their families.
  • 99% of employees received first, second, and third booster doses of the Covid-19 vaccine, and almost more than 86% received the fourth booster dose.
  • Received an award from the Governor of East Java and the Ministry of Labor for outstanding efforts in preventing the spread of Covid-19.

Governance Achievements

  • Regular meetings between the Board of Commissioners and the Board of Directors to review operational performance and strategies.
  • Satisfactory level of GCG practices.
  • Appointment of Mr. Vinod Sureka to replace Mr. Sanjay Goyal as Director.

Climate Goals & Targets

Medium-term Goals:
  • Commissioning of 577KVA solar panel power project by end of 2023.
Short-term Goals:
  • Reduce water consumption in coming years.
  • Reduce coal consumption in upcoming years.

Environmental Challenges

  • Prolonged war between Russia and Ukraine creating uncertainty in US and European markets.
  • High inflation rates globally impacting consumer purchasing power.
  • Potential reduction in retail demand leading to lower order volumes.
  • Increased competition in the South East Asian/India/Bangladesh garment market.
  • Delays in material arrival from China due to port congestions and China's Zero Covid-19 policy.
  • Lack of long-term visibility from buyers and shorter lead times affecting production planning.
  • Frequent changes in order volumes based on retail demand.
Mitigation Strategies
  • Close monitoring of market scenarios and adjustments to strategies.
  • Focus on new product development and cost optimization.
  • Increased coordination between sales and production for improved planning.
  • Offering competitive prices to customers.
  • Developing new products and exploring new customers.
  • Working with fabric and material suppliers to reduce raw material costs.
  • Improving production planning and coordination to meet shorter lead times.
  • Optimizing operational flow by centralizing laundry and finishing operations.
  • Evaluating areas for automation and cost reduction.
  • Maintaining liquidity by optimizing working capital levels.
  • Investing in sustainable technologies and partnering with customers on carbon footprint reduction initiatives.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: WRAP

Certifications: WRAP (Gold), CT-PAT, ISO 9001

Awards & Recognition

  • Award on Prevention and Countermeasures for Covid-19 in Work Place - Platinum category (East Java Governor and Ministry of Labor)
  • Award on Prevention and Countermeasures for HIV & AIDS in Work Place - Platinum category (East Java Governor and Ministry of Labor)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:22,062.71 tCO2e/year (Scope 1 & 2)
Scope 3 Emissions:not calculated
Renewable Energy Share:21%
Total Energy Consumption:31,697,100 MJ/year
Water Consumption:1,080,659 KL/year

ESG Focus Areas

  • Economic
  • Social
  • Environmental

Environmental Achievements

  • Increased renewable energy use to 21% in 2023 from 13% in 2022.
  • Reduced hazardous liquid waste (used lubricants) by 43% in 2023 compared to 2022.
  • Reduced total energy consumption by 41% compared to 2018 by the end of 2023.

Social Achievements

  • Almost 100% of workers are from local areas.
  • Regularly organizes sewing training for local residents.
  • Distributed healthy food packages and conducted HIV/AIDS and TB prevention and control programs in 2023.
  • Allocated USD 0.97 million for CSR activities in 2023 (increased from USD 0.29 million in 2022).
  • 7,130 female workers received health-related training through the HER Project.

Governance Achievements

  • Conducted monthly anti-corruption refreshment training for middle management.
  • Implemented a comprehensive anti-corruption policy.
  • Obtained various international certifications (e.g., WRAP, ISO 9001:2015, AEO).

Climate Goals & Targets

Long-term Goals:
  • Improve energy efficiency by installing additional front loading machines, hydro extractors, and solar panels by 2030.
  • Phase out coal consumption by increasing biomass utilization and using natural gas boilers by 2030.
  • Improve water use efficiency by replacing old laundry machines, installing a wastewater recycling system, and harvesting rainwater by 2030.
Medium-term Goals:
  • 100% certified chemicals for production by 2025.
  • Reduce GHG intensity by 30% by 2030.
Short-term Goals:
  • Increase certified chemicals to 95% in dye/pigment and supporting categories by 2024.

Environmental Challenges

  • Unexpected changes in demand patterns affecting cost reduction strategies.
  • Highly fluctuating demand in 2024.
Mitigation Strategies
  • Postponed production capacity expansion to 2024.
  • Focused on adapting to changed demand and business environment.
  • Developed new products and explored new customers.
  • Strengthened marketing and laundry teams.
  • Improved production planning and coordination.
  • Reduced fixed costs.
  • Invested in sustainable technologies (new gas boiler, planned solar panels).

Supply Chain Management

Responsible Procurement
  • Prioritizing local suppliers when possible.
  • Using certified chemicals (Oekotex, Bluesign, GOTS, SciveraLens).

Climate-Related Risks & Opportunities