Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance

Environmental Achievements

• Reduced ATF usage by 19,767,185 liters, equivalent to 49,496,203 kilograms of CO2 reduction.
• Reduced water consumption at Garuda City Centre Head Office by 12,448 m3 (16.09%).
• Reduced electricity consumption at Garuda City Centre Head Office by 1,200 kWh (equivalent to 4 GJ).

Social Achievements

• Zero severe occupational accidents.
• Conducted 1,708 trainings for 23,700 participants (503,453 training hours total).
• Allocated Rp6.20 billion for CSR and PKBL programs.

Governance Achievements

• Achieved a GCG score of 86.83% (Very Good).
• Obtained SNI ISO 37001:2016 Anti-Bribery Management System certification.
• Appointed Director of Human Capital as the person responsible for implementing and monitoring GCG.

Climate Goals & Targets

Environmental Challenges

• Significant impact of COVID-19 pandemic on aviation industry, resulting in reduced passenger and cargo numbers.
• Liquidity risk due to reduced passenger traffic.
• Sensitivity to fuel and forex fluctuations.
• Challenges in achieving revenue targets due to travel restrictions and lockdowns.

Mitigation Strategies

• Revision of RKAP 2020.
• Implementation of 3R strategy (Refocus, Rightsizing, Reshaping).
• Boosting charter flights.
• Cost efficiency program.
• Revenue stream enhancement through market expansion, product improvement, and new business development.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing national suppliers, especially SMEs; direct procurement from manufacturers or authorized distributors; periodic evaluation of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core Options

Certifications: SNI ISO 37001:2016 Anti-Bribery Management System

Third-party Assurance: Internal team; no third-party assurance.

UN Sustainable Development Goals

• Goal 1, 2, 3, 4, 5, 8, 9, 11, 13, 14, 15, 16

Various CSR and PKBL programs contribute to these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 5-Star On Time Performance Rating 2020 from OAG Flightview; The Best Airline in Indonesia (2017-2020); Travelers’ Choice Major Airline Asia (2018-2020) from TripAdvisor; One of the Global Airlines with the Best Health and Safety Protocol Standards in the World from Safe Travel Barometer; various BUMN awards.

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance

Environmental Achievements

• Reduced avtur consumption by 10,706,017 liters (equivalent to 26,794,162 kg CO2), down compared to 2021.
• Reduced electricity usage by 20% compared to 2021 (6,689,375 kWh vs 8,365,515 kWh).
• Reduced water usage compared to 2021 (52,388 cubic meters vs 71,384 cubic meters).
• No significant spill incidents and no environmental complaints.

Social Achievements

• No recorded incidents of discrimination, forced labor, or child labor.
• Gender equality maintained (2,151 female employees and 2,308 male employees).
• Conducted 9,074 training sessions for 23,415 participants.
• 8 accidents related to occupational health and safety reported (Air Crew and Lost Time Injury Frequency Rate).

Governance Achievements

• Achieved a GCG Assessment score of 92.69 (very good category) for the 2023 fiscal year.
• Successfully completed debt restructuring with 365 creditors, covering a total debt of IDR 138 trillion.
• Implemented the “Garuda Way” corporate culture.

Climate Goals & Targets

Environmental Challenges

• High aircraft lease costs (highest compared to other airlines globally).
• Suboptimal route management and lack of synergy between Garuda and Citilink.
• Significant decrease in production volume requiring cost efficiency and cuts.
• Potential risk of failed restructuring due to lawsuits and unstable industry conditions.
• Suboptimal performance of subsidiaries.

Mitigation Strategies

• Renegotiated contracts with lessors, creditors, and vendors; achieved homologation.
• Established a sinking fund account.
• Received IDR 7.5 trillion in PMN from the government.
• Secured third-party funding for aircraft restoration.
• Increased revenue from ticket, cargo, and charter sales.
• Implemented cost-cutting measures (streamlining organization, manpower rationalization, fuel optimization, etc.).
• Restructuring of subsidiaries in terms of organization, business lines, and cost efficiency.

Supply Chain Management

Responsible Procurement

• Prioritizing national suppliers (including MSMEs).
• Direct procurement from manufacturers, official distributors, or sole agents.
• Avoiding intermediaries that do not add value.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: SNI ISO 37001:2016 (Anti-Bribery Management System), IOSA (IATA Operational Safety Audit), AOC (Air Operator Certificate)

Awards & Recognition

• YouGov in Branding Campaign (YouGov Travel & Tourism)
• Suramadu Leading Airlines of The Year (Suramadu Tourism Award)
• Best Printed Company Profile (BUMN Awards)
• Corporate Reputation Awards (Indonesia Public Relations Summit)
• Best Corporate Communications Material (Public Transportation Company BUMN Forum)
• Best Corporate Secretary in Airlines Industry (Indonesia Corporate Secretary Awards)
• Environmental Development Initiatives Pengelolaan Sampah Kuta Mandalika (Anugerah CSR)
• Indonesia Tourism Business Leader in International Airlines (Indonesia Tourism Business Leader Awards)
• Top 50 MID Capitalization Public Listed Company (IICD Corporate Governance Conference)
• Successful State-owned Enterprise Recovery Program (CEO Achievement Award)
• IT Maturity Level Score 3.51 (Balai Besar Bahan dan Barang Teknik)
• Prima Madya awards for various branch offices (Ministry of Transportation)
• Resilience Award (Changi Airline Awards)
• Most Punctual Airline in Asia-Pacific (OAG Flightview Award)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced plastic waste by 26.1 tons/year and carbon emissions by 65.2 tons/year through the Recycle In-Flight Material program.
• Conducted flight tests of aircraft using Sustainable Aviation Fuel (SAF) or Bioavtur.
• First commercial flight using SAF on October 27, 2023.
• Saved 8,643,489 liters of jet fuel (equivalent to 21,850,740 kgCO2 emission reduction) through fuel optimization program.

Social Achievements

• Maintained harmonious industrial relations with no complaints or labor disputes.
• No recorded incidents of discrimination or violations of employee rights.
• Consistently conducted education and training programs (IDR3,937,988 per trainee; 21,415 employees trained).
• Achieved 84.0% customer satisfaction (up from 82.4% in 2022).

Governance Achievements

• Successfully completed business performance restructuring process.
• Obtained SNI ISO 37001:2016 Anti-Bribery Management System certification.
• Implemented a Gratification Control Program (PPG).

Climate Goals & Targets

Environmental Challenges

• Indonesia’s passenger recovery rate at 85% (lower than other countries).
• High avtur prices increasing airfares and operating costs.
• Weakening rupiah against the dollar impacting operating costs.
• Environmental and social impact risks on operations.
• Limited supply chain for aircraft restoration, availability of suitable aircraft types, and liquidity limitations.

Mitigation Strategies

• Fuel and forex hedging mechanisms and fuel optimization program.
• Social and Environmental Responsibility (TJSL) programs.
• Compliance with environmental regulations.
• Renegotiation with lessors, creditors, and vendors.
• Third-party funding for aircraft restoration.
• Revenue increase from ticket, cargo, and charter sales.
• Strengthened IT security system to mitigate cyber attack risks.

Supply Chain Management

Supplier Audits: Periodic evaluations based on quality, service, and delivery.

Responsible Procurement

• Compliance with Ministry of SOEs regulations.
• Prioritization of national suppliers (including MSMEs).
• Direct procurement from manufacturers, authorized distributors, or sole agents.
• Focus on domestic production and increasing TKDN (Domestic Component Level).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacting flight operations.

Transition Risks

• Not disclosed

Opportunities

• Use of Sustainable Aviation Fuel (SAF).

Reporting Standards

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

Certifications: SNI ISO 37001:2016 Anti-Bribery Management System, IATA Operational Safety Audit (IOSA), AOC (Air Operator Certificate)

Third-party Assurance: PT BSI Group Indonesia (AA1000 Assurance Standard 2018 Type 2 Moderate Level)

Sustainable Products & Innovation

• Sustainable Aviation Fuel (SAF)

Awards & Recognition

• The Most Punctual Airline 2023
• Campaign of The Year
• Renewal Certification IATA Operational Safety Audit (IOSA)
• Silver Play Button YouTube
• Best Airline Customer Service
• Brand Advocacy Terbaik (Gold Winner)
• Forbes 2023 Global 2000
• World’s Best Cabin Staff
• Best Airline Staff in Indonesia
• Transparansi Penurunan Emisi Korporasi 2023
• Transparansi Perhitungan Emisi Korporasi 2023
• Top 100 Fortune Indonesia
• TrenAsia ESG Award 2023
• Mega Company Turnaround/Transaction
• Top 50 Big Capitalization Public Listed Companies
• Best State-Owned Enterprise 2023
• Best Crisis Communications Management (Gold Winner)
• Top 100 Perusahaan Paling Berpengaruh Dalam Bidang Komunikasi Korporasi