Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Gradually converting the Tangerang factory's boiler energy source from coal to 100% gas by 2023. The new factory in Central Java is planned to use energy sources from palm waste biomass and solar panels.

Social Achievements

• No work accidents, fatalities, or lost-time injuries in 2021. Rp24.92 million spent on CSR activities (excluding employee recruitment).

Governance Achievements

• Implemented SAP accounting system for timely and accurate information. Established a whistleblower system (WBS) for reporting violations.

Climate Goals & Targets

Environmental Challenges

• Delay in the construction of a new factory due to COVID-19 restrictions.
• Different sustainability standards among consumers.
• Rising price of paper raw materials.

Mitigation Strategies

• Renegotiated product prices to include paper price increases.
• Developed alternative sourcing strategies for raw materials (10 paper mills as main suppliers).
• Investing in innovative methods to meet diverse sustainability standards (in-house laboratory).

Supply Chain Management

Responsible Procurement

• Sourcing paper from trusted mills, prioritizing recycled paper and legally sourced pure pulp.

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 7
• 8
• 12
• 15

The Company's business supports sustainability through recycled paper and contributes to SDGs 7 (Affordable and Clean Energy), 8 (Decent Work and Economic Growth), 12 (Responsible Consumption and Production), and 15 (Life on Land).

Sustainable Products & Innovation

• Pre-printed corrugated boxes using eco-friendly inks and lighter paper.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Gradual conversion of Boiler Energy Source from coal to 100% gas in 2023
• Installation of solar panels resulting in 5-8% energy savings

Social Achievements

• Community investment of Rp 34,050,000 in 2022
• Zero accidents and lost time injuries in 2022
• 221 training classes conducted in 2022 (176 in-house, 45 out-house) with 3,367 employees participating

Governance Achievements

• Implementation of Good Corporate Governance (GCG) principles
• Establishment of Audit Committee and Nomination and Remuneration Committee
• Effective internal control system

Climate Goals & Targets

Environmental Challenges

• High operating expenses
• High cost of innovation
• Risk of non-renewal of large customer contracts
• Raw material supplier risk
• Labor risk and loss of key employees
• Business competition risk
• Machine damage risk
• Technology risk
• Risk of lawsuits
• Fire risk
• Political and economic risks
• Risk of changes in government policy
• Investment risk of corporate actions

Mitigation Strategies

• Diversification of raw material suppliers
• Modernization of machines and creation of innovative products
• Regular maintenance of machines
• Updates to machines and following technological developments
• Appointment of competent legal consultants
• Implementation of APAR system and insurance of assets
• Strict monitoring of cash flow
• Good industrial relations and employee development
• Use of independent parties for feasibility studies
• Maintaining low cost while ensuring quality

Supply Chain Management

Supplier Audits: Regular audits

Responsible Procurement

• Sourcing from trusted paper mills with high quality and safety standards
• Sourcing of pure pulp from legal and sustainable sources
• Tender process for supplier selection

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Indonesian Financial Accounting Standards, Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Paul Hadiwinata, Hidajat, Arsono, Retno, Palilingan & Rekan (member of PKF International)

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 12
• Goal 15

Company's business activities contribute to these goals through sustainable practices and community engagement

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Realized the use of renewable energy in the form of Gas Boilers supported by the State Gas Company (PGN) with a percentage of use of around 80%
• Participated as a member of the Industrial Chamber of Commerce (KADIN) in the Kadin Net Zero Hub program

Social Achievements

• Community investment in the form of basic food packages for orphans and the elderly, and sacrificial animals for mosques
• Maintained zero incidents and work accidents, including no lost work time throughout 2022

Governance Achievements

• Implemented Good Corporate Governance (GCG)
• Established a Whistleblowing System

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown impacting revenue
• Fluctuating exchange rates and rising energy commodity prices
• Competition from similar businesses
• Risks of machine damage and technology obsolescence
• Potential for unfair business competition

Mitigation Strategies

• Diversification of supply sources
• Improved efficiency in business processes
• Capacity expansion through a new factory in Central Java
• Regular maintenance of machinery
• Investment in new technologies
• Strong industrial relations management
• Implementation of a risk management system

Supply Chain Management

Supplier Audits: Regular audits

Responsible Procurement

• SVLK certification for wood-based paper

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, ESG, SDGs

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, SVLK

Third-party Assurance: Paul Hadiwinata, Hidajat, Arsono, Retno, Palilingan & Rekan (member of PKF International)

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 15

Company's sustainability initiatives contribute to these goals