Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environment
• Social
• Governance

Environmental Achievements

• Fresh water consumption decreased by 3.71 times in 2021 compared to 2020.
• Energy needed to produce pulp is reduced by 2.69% in 2021 compared to 2020.
• Power Consumption per ton of pulp decreased 0.98% in 2021 compared to 2020.
• 99.76% of fuels used in Both Boillers in 2021 are renewable fuels.
• 100% of wastes is reused, recycled or recovered in 2021.
• 198,046 trees planted.
• 195 Ha of natural succession.
• 13.14 Ha of artificial succession.

Social Achievements

• 98% Retention rate of employees that took parental leave.
• 16,238 hours of employee training conducted.
• 100% of new hire employees underwent OHS training.
• Community development programs supported 197 programs, costing Rp. 12,700,684,096.
• 38 infrastructure projects completed.

Governance Achievements

• Updated Sustainability Policy launched in 2021.
• Strengthened Anti-Corruption Policy and Human Right Policy.
• Conducted Sustainable Supply Chain Assessment for woods, services, and goods.
• No findings or discrepancies in PHPL, ISO, IFCC and SMK3 audits.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to rising inflation rates and unstable times.
• Maintaining biodiversity in operational areas near high conservation value areas.

Mitigation Strategies

• Community development programs to expand community income sources.
• Environmental monitoring plan to manage the protection of conservation areas.
• Policies in place to ensure the ecosystem near high conservation value areas are protected.

Supply Chain Management

Supplier Audits: 100% of all wood suppliers were screened using environmental criteria.

Responsible Procurement

• Distribution of Sustainability and Environmental policy to all new suppliers.
• Evaluation of new suppliers according to their commitments that cover environmental aspects.
• Pre-screening of new suppliers to ensure legal requirements are in place.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, OJK’s guidelines on sustainability reporting, ZSL’s SPOTT assessment

Certifications: PEFC/IFCC, Bureau Veritas Certification, PEFC – Chain of Custody, Societe General de Surveillance (SGS), Pengelolaan Hutan Produksi Lestari (PHPL), PT Ayamaru Sertifikasi, Occupational Safety And Health Management System (SMK3), PT Sucofindo, ISO 9001:2015, ISO 14001:2015, ISO 45001, Timber Legality Verification (VLK)

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 6
• 8
• 9
• 11

CD/CSR program aligned with 8 SDGs and 23 targets. Focus on socio-economic inequality through education, employment opportunities and economic growth.

Awards & Recognition

• North Sumatera Governor Award in Prevention and Control of COVID 19

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance

Environmental Achievements

• Reduced fuel consumption by 1.25% or 151,037 GJ compared to 2021
• Reduced water consumption at the plant by 947,134 m3 from 2021
• Planted 121,983 trees
• Protected area enrichment of 32.20 Ha through natural succession and 46.32 Ha through artificial succession

Social Achievements

• One of the social investment programs, Gerobak Madu, won a Silver Award at the 2022 CSR & Sustainable Village Development Awards
• Average employee training hours increased to 17,806 hours in 2022
• Zero fatal accidents and cases of work-related illness in 2022

Governance Achievements

• Established a Sustainability Committee to monitor sustainability progress
• Implemented a robust grievance mechanism for both internal and external stakeholders
• Revised Sustainability Policy in 2021 based on stakeholder input

Climate Goals & Targets

Environmental Challenges

• Many stakeholders still lack understanding of ESG issues
• Damage to the lime kiln increased fuel consumption and CO2 emissions

Mitigation Strategies

• Improved outreach program to stakeholders through training, assessments, and distribution of sustainability reports
• Implemented measures to reduce energy consumption and carbon footprint

Supply Chain Management

Supplier Audits: Sustainable Supply Chain Assessment activities carried out for wood suppliers, goods suppliers, and service suppliers.

Responsible Procurement

• Supplier selection based on risk assessment; sustainability policy as basis for assessment; commitment to sustainable practices from suppliers.

Climate-Related Risks & Opportunities

Opportunities

• Industrial decarbonization; development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021: In-Accordance, Regulation of Financial Services Authority (POJK) No. 51/POJK.03/2017

Certifications: IFCC, PEFC – Chain of Custody, Sustainable Production Forest Management (PHPL), Occupational Health and Safety Management System (SMK3), ISO 9001:2015, ISO 14001:2015, Timber Legality Verification (VLK), ISO 45001

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 6
• 8
• 9
• 11
• 17

TPL’s CD/CSR programs contributed to 9 targets with 21 indicators related to these SDGs.

Sustainable Products & Innovation

• 100% biodegradable dissolving pulp

Awards & Recognition

• Silver Award at the 2022 CSR & Sustainable Village Development Awards

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 emissions by 11,567 tCO2e
• Reduced water usage by 1,595,635 m3
• Reduced waste by 24,962 tons
• Provided 161,173 natural seeds
• 9.7 Ha of protected area enrichment through natural succession
• 4.7 Ha of protected area enrichment through artificial succession

Social Achievements

• Implemented 178 CD/CSR programs
• Provided 13,526 total employee training hours
• Zero death accidents due to work
• Zero work injuries with high consequences (excluding death)

Governance Achievements

• Updated Human Rights Policy, Anti-Corruption Policy, and Collective Bargaining Agreement
• Published Wood and Fiber Sourcing Policy and Human Rights Due Diligence (HRDD) Framework
• Initiated FSC Remedy process

Climate Goals & Targets

Environmental Challenges

• Reduced raw materials (wood) supply due to land claims
• Ensuring consistent compliance with corporate ethical and behavioral standards
• Effectively managing stakeholder expectations
• Adapting governance framework to new challenges and opportunities

Mitigation Strategies

• Implementing sustainable forest management strategies
• Ongoing education and training programs
• Refining stakeholder engagement strategy
• Regularly reviewing and enhancing internal controls and risk management protocols
• Collaboration with Earthworm Foundation for conflict resolution and capacity building

Supply Chain Management

Supplier Audits: Sustainable Supply Chain Assessment activities carried out for wood, goods, and service suppliers based on risk assessment results.

Responsible Procurement

• Prioritizing local suppliers (92% in 2023)
• Adherence to SOPs, procurement policies, Code of Conduct, and anti-corruption policies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: OJK Regulation No. 51/POJK.03/2017, OJK Circular Letter No. 16/SEOJK.04/2021, GRI Standards 2021 (In Accordance)

Certifications: IFCC ST 1001:2013, PEFC Chain of Custody, Sustainable Production Forest Management, Occupational Health and Safety (OHS) Management System, ISO 9001:2015, ISO 14001:2015, Timber Legality Verification (VLK), ISO 45001, ISO 14001:2015 (Fiber)

Third-party Assurance: Bureau Veritas Indonesia (BVI)

UN Sustainable Development Goals

• SDG 2
• SDG 4
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 11

CD/CSR programs contributing to various SDGs through education, health, welfare, job creation, environmental improvement, and government relations.

Sustainable Products & Innovation

• Biodegradable Dissolving Pulp (DP)

Awards & Recognition

• Not disclosed