Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Good Corporate Governance

Environmental Achievements

• Planted 2,205 trees, absorbing 9,348.48 tons of CO2 per year.
• Implemented "Go Green" program to improve environmental awareness among employees.
• Established water catchment areas to prevent flooding.

Social Achievements

• Implemented employee competency development programs through education and training.
• Recruited 77 employees in 2020.
• Allocated Rp1,779,600,000 for CSR programs focusing on community development and disaster relief.

Governance Achievements

• Consistently conducted socialization of the company's Code of Ethics.
• Established a Whistleblowing System for reporting violations.
• Implemented Good Corporate Governance (GCG) principles based on Law No. 40 of 2007 and Indonesian GCG General Guidelines.

Climate Goals & Targets

Environmental Challenges

• Decreased demand for steel products from the infrastructure sector due to the COVID-19 pandemic.
• Overall import decrease of 33% in 2020.

Mitigation Strategies

• Implemented efficiency policies to minimize excess inventory.
• Modernized supporting systems to improve business process efficiency and transparency.
• Focused on growth strategy emphasizing collaboration and R&D.

Supply Chain Management

Responsible Procurement

• Ensuring fair and transparent treatment of suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Awards & Recognition

• Certificate of appreciation for contribution to COVID-19 handling (BNPB)
• Award for company performance in environmental management (Ministry of Environment and Forestry)

Environmental Metrics

ESG Focus Areas

• Responsible Procurement
• Environmental and Social Compliance
• Energy Transition and Low-Carbon Solutions
• Contributing to Responsible Environmental Management
• Nurturing Talent

Climate Goals & Targets

Environmental Challenges

• Global climate pledge to become net zero by mid-century
• Stakeholder concerns about climate impact of steelmaking
• Increasing uncertainty driven by climate change and market shifts towards a low-carbon economy

Mitigation Strategies

• Investing in Electric Arc Furnace (EAF) technology
• Implementing a robust GHG data management system and transparent reporting
• Reducing GHG emission intensity (Scope 1 and 2)
• Utilizing renewable energy
• Understanding and reporting climate risks and opportunities in line with TCFD
• Obtaining ResponsibleSteel™ certification

Supply Chain Management

Responsible Procurement

• Updated supplier code of conduct to align with ResponsibleSteel™
• Awareness raising campaigns and/or ESG audits with suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Decreased GHG emission by 26.1% (from 737,113 ton CO2eq to 544,702 ton CO2eq)
• Decreased Hazardous Waste (B3) by 56.8% (from 252,600 kg to 109,140 kg)
• Increased renewable energy use by 100% (installation of 9,283 kWp solar power plant)

Social Achievements

• Increased number of employees receiving training by 125.6% (from 1,396 to 3,150)
• Decreased occupational accident rate by 6.1% (from 3.3% to 3.1%)
• Allocated Rp2.1 billion (USD 135,000) for social and environmental responsibility fund

Governance Achievements

• Established strong policies to respond to economic, social, and environmental challenges
• Implemented a comprehensive risk management system
• Updated whistleblowing policy to improve clarity and effectiveness

Climate Goals & Targets

Environmental Challenges

• Uncertain global economic conditions
• Geopolitical issues affecting international trade
• Volatile world steel prices
• Extreme weather challenges due to climate change
• Improving sustainable policies and programs

Mitigation Strategies

• Implementing adaptive business strategies
• Strictly controlling product selling prices and raw material purchasing prices
• Utilizing scrap as recycled material
• Activating sustainability units to socialize and improve understanding of sustainability
• Developing and improving the quality of the risk management system
• Implementing cost efficiencies
• Focusing on responding to external changes

Supply Chain Management

Responsible Procurement

• Requiring suppliers to submit environmental and social management reports
• Updating policies based on relevant regulations
• Prioritizing local suppliers in Jabodetabek
• Discussing renewable energy use with suppliers
• Requiring suppliers to sign an Integrity Pact

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021 (with reference), POJK No. 51/POJK.03/2017, SEOJK No. 16/SEOJK.04/2021, ResponsibleSteel™

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 17025:2017, SMK3 PP 50/2012, Various SNI certifications, Green Label Indonesia, DNV GL, Lloyd’s Register, TUV Rheinland, AISC, CWB, EPD Southeast Asia, Bureau Veritas, KAN, JQA certifications

Third-party Assurance: Internal verification only

Sustainable Products & Innovation

• Green steel products
• Box Beam product with Electro Slag Welding (ESW)

Awards & Recognition

• The Best SPEx2® Company in Manufacturing Industry
• The Best Company in Executing Digital Transformation in Manufacturing Industry
• The Best Chief Digital Officer in Manufacturing Digital Transformation
• Indonesia’s 100 Largest Companies in 2023 (Ranked 71st)
• Proper Biru (Blue Proper)
• Top 50 Mid Capitalization Public Listed Company (Best Disclosure and Transparency)
• Appreciation for Contribution in Bekasi Regency Virtual Job Fair