Climate Change Data

PT Medco Energi Internasional Tbk

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

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:2,184,980 tCO2e (Scope 1)
Scope 1 Emissions:2,184,980 tCO2e
Scope 2 Emissions:11,329 tCO2e
Renewable Energy Share:Approximately one-third (Medco Power)
Total Energy Consumption:18.0 million GJ (Oil & Gas)
Water Consumption:758,133 m3 (Oil & Gas)
Waste Generated:931 tons (Oil & Gas non-hazardous)
Carbon Intensity:Reduced Scope 1 GHG emission intensity

ESG Focus Areas

  • Climate Change
  • Energy Transition
  • Health and Safety
  • Community Development
  • Good Corporate Governance

Environmental Achievements

  • Reduced oil & gas Scope 1 GHG emission intensity by 12% from 2018-2020
  • Reduced oil & gas energy consumption by 11% from 2019-2020
  • Reduced South Natuna Sea Block B's total emissions by 269,512 tCO2e between 2018 and 2020 through fuel gas optimization
  • Received Gold PROPER rating for TJBPS and JOB Tomori

Social Achievements

  • Distributed 1,200 mobile devices to students and teachers and provided teacher and parent remote education skills training
  • Provided aid totaling US$1 million to hospitals, community health centers, and clinics
  • Supported women's tailor cooperatives in producing face masks
  • Improved Oil and Gas Total Recordable Injury Rate (TRIR) for four consecutive years

Governance Achievements

  • Launched revised Code of Conduct integrating international best practices
  • Obtained ISO 37001:2016 certification for Procure-to-Pay process in several assets and Medco Power
  • Established three task forces to manage the impacts of the COVID-19 pandemic

Climate Goals & Targets

Environmental Challenges

  • COVID-19 pandemic
  • Sudden drop in energy demand
  • Fall in oil prices
  • Fatality during demobilisation of Ijen Geothermal drilling operations
Mitigation Strategies
  • Established three task forces (COVID-19 Task Force, Social Impact Task Force, Work from Office Resumption Task Force)
  • Spent approximately US$7 million on employee health protocols
  • Disbursed US$1 million in aid to communities
  • Implemented strict health protocols and work-from-home arrangements
  • Conducted thorough independent investigation into fatality and implemented recommendations

Supply Chain Management

Supplier Audits: 21 ABC Vendor Audits in 2020

Responsible Procurement
  • Transparent and accountable procurement processes
  • e-procurement system
  • Integrated Performance-based Contract
  • Vendor Day events

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Renewable energy development

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001:2015 (53% of assets), ISO 45001:2018 (35% of assets), ISO 37001:2016 (Procure-to-Pay process in several assets and Medco Power)

Third-party Assurance: KAP Purwantono, Sungkoro & Surja (A member firm of Ernst & Young Global Limited, or “EY”)

UN Sustainable Development Goals

  • SDG 1
  • SDG 2
  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 10
  • SDG 12
  • SDG 13
  • SDG 14
  • SDG 15
  • SDG 16
  • SDG 17

Various initiatives contribute to these goals (see details in report)

Awards & Recognition

  • Various awards from Ministry of Energy and Mineral Resources, SKK Migas, and other organizations (see page 82)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:5,710,288 tCO2e/year (Oil & Gas and Power combined)
Scope 1 Emissions:4,345,147 tCO2e/year (Oil & Gas), 1,365,141 tCO2e/year (Power)
Scope 2 Emissions:24,390 tCO2e/year (Oil & Gas), 1,760 tCO2e/year (Power)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:21% (Power)
Total Energy Consumption:51,416,903 GJ/year (Oil & Gas and Power combined)
Water Consumption:7,025,400 m3/year (Oil & Gas and Power combined)
Waste Generated:6,158 tonnes/year (Oil & Gas and Power combined)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Energy Transition
  • Local Communities
  • Human Rights
  • Business Ethics
  • Governance

Environmental Achievements

  • Reduced Oil & Gas Scope 1 & 2 GHG emissions by 5% from 2021
  • Reduced Oil & Gas Scope 1 & 2 GHG emissions by 19% from 2019
  • Reduced methane emissions by 18% from 2019
  • South Natuna Sea Block B received its second consecutive Green PROPER rating

Social Achievements

  • Strengthened Social Management System (SMS)
  • Continued community empowerment programs
  • Improved Corporate Total Recordable Incident Rate (TRIR) from 0.29 in 2021 to 0.21 in 2022
  • Achieved zero fatalities in 2022 for the second consecutive year

Governance Achievements

  • Completed updated Materiality Assessment and Human Rights Assessment
  • Established 2023-2027 Sustainability Roadmap
  • Extended ISO 37001:2016 Anti-Bribery Management System (ABMS) certification to Thailand operations
  • MSCI ESG rating upgraded to A from BBB, Sustainalytics risk score improved from 42.2 to 36.7

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions for Scope 1 and Scope 2 by 2050
  • Net zero emissions for Scope 3 by 2060
Medium-term Goals:
  • Reduce 30% of Oil & Gas GHG Scope 1 & 2 Emissions by 2030
  • Reduce 37% of methane emissions for oil & gas business by 2030
  • Increase renewable energy installed capacity by 30% by 2030
Short-term Goals:
  • Reduce 20% of Oil & Gas GHG Scope 1 & 2 Emissions by 2025
  • Reduce 25% of methane emissions for oil & gas business by 2025
  • Increase renewable energy installed capacity by 26% by 2025
  • Disclose Scope 3 GHG emissions by 2025

Environmental Challenges

  • Community health and safety concerns related to an incident at Block A in 2021
  • Climate change and energy transition
  • Growing stakeholder expectations in ESG and climate landscapes
  • Increased exposure to global risks, including human rights risks
Mitigation Strategies
  • Upgraded grievance mechanism system at Block A
  • Strengthened engagement with local government and communities
  • Issued climate interim targets for 2025 and 2030
  • Updated materiality assessment and conducted corporate-level human rights assessment
  • Developed a Human Rights Policy
  • Implemented numerous GHG reduction opportunities and emissions management initiatives

Supply Chain Management

Supplier Audits: 22 ABC Vendor Audits in 2022

Responsible Procurement
  • Code of Conduct
  • Compliance with laws and regulations
  • Vendor Self-Registration
  • E-procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Impacts on asset infrastructure
Transition Risks
  • Regulatory changes
  • Market shifts
  • Carbon pricing
Opportunities
  • Development of renewable energy projects
  • Expansion of natural gas portfolio

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 37001 (ABMS)

Third-party Assurance: KAP Purwantono, Sungkoro & Surja (A member firm of Ernst & Young Global Limited)

UN Sustainable Development Goals

  • SDG 4
  • SDG 7
  • SDG 12
  • SDG 13
  • SDG 15
  • SDG 17

Initiatives contribute to various SDGs (detailed in report)

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Numerous sustainability awards (listed in report)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:4,223,200 tCO2e (Oil & Gas) + 1,416,625 tCO2e (Power) = 5,639,825 tCO2e
Scope 1 Emissions:4,223,200 tCO2e (Oil & Gas) + 1,416,625 tCO2e (Power)
Scope 2 Emissions:26,354 tCO2e (Oil & Gas) + 1,566 tCO2e (Power)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:19% (Power)
Total Energy Consumption:38,738,652 GJ (Oil & Gas) + 15,100,104 GJ (Power) = 53,838,756 GJ
Water Consumption:42,172,000 m3 (Oil & Gas) + 1,375,000 m3 (Power) = 43,547,000 m3
Waste Generated:6,413 tons (hazardous) + 1,207 tons (non-hazardous) = 7,620 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Health and Safety
  • Community Development
  • Human Rights
  • Governance

Environmental Achievements

  • Reduced Oil & Gas Scope 1 and Scope 2 GHG emissions by 22% from 2019 baseline (two years ahead of target)
  • Reduced Oil & Gas methane emissions by 40% from 2019 baseline (ahead of target)
  • Implemented 41 GHG emission reduction initiatives resulting in emission reductions of up to 147,963 tCO2e/year and a one-time reduction of 94,860 tCO2e
  • South Natuna Sea Block B and Sampang assets received Green PROPER awards
  • JOB Tomori achieved Gold PROPER award

Social Achievements

  • Launched Medco & I - Two Trees program, planting 22,637 trees
  • Improved Sustainalytics ESG risk rating score to 29.6 (Medium Risk) from 36.7 (High Risk)
  • Maintained 'A' MSCI ESG Rating score and 'B' CDP Climate Change score
  • Conducted Employee Engagement Survey (EES) with 92% participation rate
  • Implemented various community development programs with total funding of USD 1,812,866

Governance Achievements

  • Established a standalone Human Rights Policy
  • Obtained ISO 37001 Anti-Bribery Management System (ABMS) certification for Corridor assets
  • Maintained certifications for all other certified assets
  • Reduced the number of allegation reports to 63 from 73 in 2022
  • Improved the quality of disclosure in sustainability reporting by increasing the number of assured GRI Performance Indicators

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions for Scope 1 and Scope 2 by 2050
  • Net zero emissions for Scope 3 by 2060
Medium-term Goals:
  • Reduce 30% of Oil & Gas Scope 1 & 2 GHG Emissions by 2030
  • Reduce 37% of methane emissions for oil & gas business by 2030
  • Increase renewable energy installed capacity to 30% by 2030
Short-term Goals:
  • Reduce 20% of Oil & Gas Scope 1 & 2 GHG Emissions by 2024
  • Reduce 25% of methane emissions for oil & gas business by 2024
  • Increase renewable energy installed capacity to 26% by 2024

Environmental Challenges

  • Claims of odours in Block A (found unsubstantiated)
  • Challenges in engaging vendors on Scope 3 GHG emissions
  • Climate-related risks (extreme heat, water scarcity, inland floods, coastal floods)
Mitigation Strategies
  • Actively monitored air quality and implemented thorough HSE readiness procedures
  • Began influencing vendors to disclose Scope 1 and 2 GHG emissions
  • Conducted a quantitative Climate Change Risk Assessment (CCRA) for Block A and JOB Tomori, aligning with TCFD recommendations and Equator Principles 4 requirements
  • Developed mitigation measures based on CCRA findings

Supply Chain Management

Supplier Audits: 22 ABC Vendor Audits

Responsible Procurement
  • Code of Conduct
  • Code of Suppliers
  • Vendor Days
  • Sustainability considerations in procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme heat
  • Water scarcity
  • Inland floods
  • Coastal floods
Transition Risks
  • Carbon pricing
Opportunities
  • Renewable energy development
  • Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 37001

Third-party Assurance: KAP Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited)

UN Sustainable Development Goals

  • SDG 7
  • SDG 13
  • SDG 14
  • SDG 8
  • SDG 4
  • SDG 3
  • SDG 2
  • SDG 6
  • SDG 12
  • SDG 15
  • SDG 17

Initiatives contribute to these goals through various programs and policies

Sustainable Products & Innovation

  • Renewable energy projects (solar PV, geothermal)

Awards & Recognition

  • Green PROPER awards
  • Gold PROPER award
  • MedcoEnergi Awards