Climate Change Data

Environmental Metrics

ESG Focus Areas

• Education
• Environment
• Social and Neighbourhood Communities

Environmental Achievements

• Achieved Blue level rating in Programme for Pollution Control Evaluation and Rating (PROPER)
• Average emissions of COD and BOD in wastewater did not exceed government standards (69 ppm and 11 ppm, respectively)
• Tissue paper products included in Eco-products Directory 2019 for using recycled materials and FSC-certified pulp
• Launched "Return To Earth" program with cleanup activities, tree planting, and wood waste donation to tofu industry

Social Achievements

• Provided scholarships, educational resources, and practical learning experiences to students and universities
• Supported community development programs, including brick production, parking management, transportation services, and catering
• Organized blood donation drives for employees, provided PPE to medical workers, and distributed free masks to the poor
• Supported community activities such as fasting breaks with orphans and aid to natural disaster victims

Governance Achievements

• 50% of Board of Directors were Independent Directors, one of whom served as Corporate Secretary
• Board of Commissioners actively monitored Audit Committee and management performance
• Effective internal control system implemented to protect assets and investments
• Continuous efforts to improve Good Corporate Governance (GCG) implementation

Climate Goals & Targets

Environmental Challenges

• Decreased paper production due to strategic shift from Kraft to lighter Tissue Paper
• Global economic instability due to US-China trade tensions impacting world trade and growth
• Decreased export performance to major trading partners due to slowing economies and lower global commodity prices
• Potential decrease in consumer purchasing power due to COVID-19 pandemic

Mitigation Strategies

• Revised net sales target to 70% of 2019 achievement and comprehensive income target to 44% of 2019
• Adjusted marketing strategies to focus on domestic markets and sanitary products related to COVID-19
• Shifted tissue paper market from HoReKa to modern markets and households
• Continued efforts to improve GCG to enhance transparency, accountability, and reliability

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Eco-friendly tissue paper

Awards & Recognition

• Green Initiative Award

Environmental Metrics

ESG Focus Areas

• Good Corporate Governance (GCG)
• Social Responsibility
• Environmental Sustainability

Environmental Achievements

• Achieved Blue level rating in Program Penilaian Peningkatan Kinerja Perusahaan dalam Pengelolaan Lingkungan Hidup (PROPER) in 2020. Average COD and BOD emissions in wastewater were 71 ppm and 8 ppm respectively, below government standards.
• Provided supply of wood waste to tofu industry in Sidoarjo as fuel replacement for plastic, awarded Green Initiative Award.

Social Achievements

• Provided PPE (hazmat suits, masks, face shields, hand sanitizer, disinfectant) to medical personnel in several hospitals.
• Donated basic necessities and masks to communities affected by COVID-19.
• Supported government programs to stop the spread of COVID-19 (masks, handwashing facilities).

Governance Achievements

• Continuously improved the quality of Good Corporate Governance (GCG) implementation.
• Independent Commissioners reached 83% of total number of Commissioners.
• Independent Directors were 25%.

Climate Goals & Targets

Environmental Challenges

• Decreased demand for products due to the COVID-19 pandemic, resulting in a 3.2% decrease in paper production.
• Significant decrease in domestic purchasing power due to economic recession.
• Decreased supply of imported recycled paper and pulp due to global pandemic and stricter import regulations.
• Contraction in national banking credit growth (2.41%) and difficulties in boosting credit growth.

Mitigation Strategies

• Maintained marketing strategies focused on the domestic market, which provided better margins.
• Developed sustainable sourcing strategies by increasing the use of waste paper and locally sourced materials.
• Implemented a tight cash management strategy and self-financing to cover working capital needs and capital expenditure.

Supply Chain Management

Responsible Procurement

• Maintaining good relationships with suppliers.
• Using recycled materials.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Eco-green products using recycled materials.

Awards & Recognition

• Green Initiative Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved Blue level rating in Programme for Pollution Control Evaluation and Rating (PROPER) in 2021.
• Reduced energy consumption intensity from 3.6 GJ/MT in 2019 to 3.2 GJ/MT in 2020 and 2021.
• Uses recycled raw materials and FSC-certified pulp.

Social Achievements

• Implemented employee retention program since 2012.
• Complied with Perjanjian Kerja Bersama (PKB) which was renewed for two years.
• Conducted 48 managerial and technical trainings in 2021 (3 hours/year/employee).

Governance Achievements

• 75% of Board of Commissioners are Independent Commissioners.
• One Independent Director on the Board of Directors.
• Established an effective internal control system.

Climate Goals & Targets

Environmental Challenges

• Pandemic Covid-19.
• Increase in global commodity prices.
• Decreasing supply of imported recycled paper due to domestic logistics problems.
• Fluctuation of Rupiah against USD.
• Risk of lack of liquidity.

Mitigation Strategies

• Maintained marketing strategies that proved effective in reducing the critical impact of Covid-19.
• Implemented commercial hedging strategy (obtaining export proceeds in USD equal to import needs).
• Developed sustainable sourcing strategies (increasing waste paper consumption).
• Self-financing for working capital needs.
• Tight cash management.

Supply Chain Management

Responsible Procurement

• Using raw materials of pulp and waste paper that meet FSC requirements.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: OJK Regulation No. 51/POJK.03/2017, SEOJK No. 16/SEOJK.04/2021

Certifications: ISO 14001:2015, FSC, HALAL, SVLK, PROPER, FSSC 22000, SNI

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 13 (Climate Action)
• Goal 2 (Zero Hunger)
• Goal 11 (Sustainable Cities and Communities)
• Goal 3 (Good Health and Well-being)

CSR activities align with these SDGs.

Sustainable Products & Innovation

• Recycled products processed with enzymatic deinking technology.
• Plastic packaging containing OXO-Biodegradable material “OXIUM”.

Awards & Recognition

• Bisnis Indonesia Award (Appreciation for business growth during the pandemic)
• PROPER Blue level rating