Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Social
• Environmental

Environmental Achievements

• Replaced ordinary lamps in 20 warehouses with LED lamps, saving up to 50% energy and reducing CO2 emissions.
• Replaced wooden pallets with recycled plastic pallets.

Social Achievements

• Provided Rp327,198,076 in humanitarian aid to communities affected by COVID-19.
• Provided Rp62.25 million in student scholarships.
• Implemented a work from home policy to prevent the spread of COVID-19.

Governance Achievements

• Established a sustainable governance structure.
• Implemented Internal Control Effectiveness (ICE) version 2 for risk mitigation.

Climate Goals & Targets

Environmental Challenges

• Economic recession in Indonesia due to COVID-19 pandemic.
• Management of accounts receivable and inventory risks.
• Risk of fires, earthquakes and floods damaging inventory.

Mitigation Strategies

• Ensuring customer business sustainability and providing distribution financing (DF).
• Insuring buildings and inventories.
• Upgrading to Oracle and increasing cloud computing for ERP system.

Supply Chain Management

Responsible Procurement

• OHS requirements for partner companies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, POJK No. 51/POJK.03/2017

Certifications: ISO 9001:2015, ISO 27001, ISO 45001:2018, CDOB (Good Drug Distribution Method), CDAKB (Good Medical Device Distribution Method)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 3 (Good Health and Well-being)

Student scholarship program and provision of health services and products.

Sustainable Products & Innovation

• MOSTRANS, EMOS, MOSHEALTH digital platforms

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Governance

Environmental Achievements

• Replaced wooden pallets with more eco-friendly plastic pallets (50% recycled plastic)
• Installed solar panels at Cikarang Distribution Center
• Implemented rainwater harvesting system at Cikarang Distribution Center
• 30 out of 48 branches switched to LED lighting

Social Achievements

• Distributed COVID-19 vaccines to 19 cities/districts across 7 provinces
• Distributed vitamins to over 7,700 healthcare workers
• Provided scholarships to 79 children of employees (Rp 53.5 million)
• Provided humanitarian aid to communities affected by COVID-19 (Rp 359,992,500)
• MOSTRANS provided working capital support to MSMEs (Rp 200 million)

Governance Achievements

• Appointed Handi Halim as Director responsible for sustainability performance
• Received ISO 27001:2013 certification for information security management system
• Spin-off of MOSTRANS business unit into PT Mostrans Global Digilog

Climate Goals & Targets

Environmental Challenges

• Distribution challenges due to PPKM (community activity restrictions)
• Maintaining sustainability awareness among employees
• Managing accounts receivable and inventory risks
• Risks associated with third-party logistics providers

Mitigation Strategies

• Digital transformation and empowerment to facilitate access to health products
• Regular training and socialization on sustainability values
• Distribution Financing (DF) facilities for customers
• Insurance for warehouses and inventory
• Vendor selection based on safety and governance aspects
• Enterprise Resources Planning (ERP) system for inventory monitoring

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with local businesses (100% of partners)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, POJK No. 51/POJK.03/2017

Certifications: ISO 9001:2015, ISO 27001, ISO 45001, CDOB, CDAKB

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 13: Climate Action

Initiatives aligned with these goals are described throughout the report.

Sustainable Products & Innovation

• Plastic pallets (50% recycled plastic)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health Access
• Digital Transformation
• Occupational Health and Safety
• Environmental Sustainability
• Social Responsibility
• Good Governance

Environmental Achievements

• 100% use of plastic pallets in distribution centers and 60% in branch warehouses.
• Reduced GHG emissions by 516 tons of CO2 compared to 2021.
• 85.99 TOE of green energy generated from solar panels.

Social Achievements

• Provided Rp110,500,000 in scholarships to 144 students.
• Donated Rp52.5 million to YKAKI and Rp62,098,896 to natural disaster victims.
• Employee turnover rate of 6.9%.

Governance Achievements

• No fines or legal sanctions received in 2022.
• Implementation of Internal Control Effectiveness (ICE) for risk management.
• Consistently conducted periodic emission tests on operational vehicles.

Climate Goals & Targets

Environmental Challenges

• Extreme weather and natural disasters impacting distribution.
• Rising inflation and government regulations.
• Cybersecurity threats.
• Supply chain disruptions.

Mitigation Strategies

• Insurance on warehouses and inventory.
• Implementation of ERP system for inventory management.
• Vendor insurance for third-party courier services.
• Security awareness training and data encryption.
• Collaboration with banks for Distribution Financing (DF) to customers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strengthened supply chain sources through joint venture with Synergy Investment.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather and natural disasters

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO 27001, ISO 9001:2015, ISO 45001:2018, Halal Assurance System from LPPOM MUI, CDOB from BPOM, CDAKB from Kemenkes RI

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 13: Climate Action

Initiatives supporting health access, employee training, economic development, digital transformation, and environmental sustainability.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Sustainability
• Social Responsibility
• Governance
• Diversity and Equality
• Digital Transformation
• Access to Health
• Waste Management

Environmental Achievements

• Reduced GHG emissions by (745) tons CO2 eq in 2023 (compared to 2022). Note: There is a restatement of information due to changes in calculation methods and units.
• Avoided creation of 80.29 tons CO2 eq/year in carbon emissions through electrification of 37 delivery motorcycles.
• Potential to avoid the creation of 1,629 tons of CO2 eq/year carbon emissions through digital ordering via EMOS.
• Potential to produce 3,528 GJ/year of clean electrical energy and avoid 972.91 tons CO2 eq/year of carbon emissions through solar panel technology.
• Reduced paper usage by 1.33 tons through digital invoicing.
• Switched to 100% plastic pallets in central warehouses and 75% in branch warehouses.

Social Achievements

• Implemented the "Insan Enseval Berbagi" CSR program, donating to 50 locations.
• Distributed scholarships to 162 children of employees.
• Provided human resource development training in local manufacturing, digitalization, data management, entrepreneurship, and leadership.
• Reduced employee turnover to 12.39%.

Governance Achievements

• Appointed Mr. Sugianto as Director in Charge for sustainability performance.
• Held sustainability-related trainings for management and employees.
• No fines or legal sanctions received during 2023.

Climate Goals & Targets

Environmental Challenges

• Shift in consumer spending towards tourism and leisure.
• Increased fuel prices and impact of geopolitical conflicts.
• Fluctuations in the price of imported raw materials.
• Potential risks related to trade receivables, inventory management, product delivery, data security, and climate change (natural disasters and extreme weather).

Mitigation Strategies

• Strengthened distribution network in areas with tourism and National Strategic Projects.
• Increased product portfolio through collaboration with new principals.
• Improved supply chain quality and sustainability through partnerships.
• Developed local manufacturing capabilities for medical devices and diagnostics.
• Established PT Mitra Ananda Megadistrindo for cold chain distribution and logistics.
• Optimized digitalization for efficiency and productivity.
• Implemented Sales Order Management (SAM) system, Distribution Financial (DF) facilities, real-time monitoring of receivables, and Enterprise Resources Planning (ERP).
• Insured stock and assets, established an emergency response team.
• Required vendors to insure products, standardized third-party selection and evaluation.
• Provided security awareness training, encrypted data, and implemented Disaster Recovery.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strategic partnership with Global Starway Synergy Co.Ltd for raw materials.
• Joint venture with PT Global Starway Synergy Co., Ltd. in Shenzhen, China.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters and extreme weather

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: CDOB, CDAKB, Halal, ISO 9001:2015, ISO 45001:2018, ISO 27001:2022, PSE, CPAKB, ISO 13485:2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed