Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic

Environmental Achievements

• Reduced energy consumption intensity by 2.43%
• Reduced GHG emission intensity by 1.33%
• Planted 11,602 trees on 12 hectares of land
• 9 subsidiaries achieved Green rating and 25 subsidiaries achieved Blue rating in Astra Green Company assessment

Social Achievements

• Fostered 118 Vocational High Schools (SMK)
• Fostered more than 300 Small and Medium Enterprises (SMEs)
• Reduced work accident frequency rate from 0.3 in 2018 to 0.2 in 2019
• Increased customer satisfaction index for 3 consecutive years to 7.80

Governance Achievements

• Implemented LEAP strategy (Leverage Trading Business, Leverage Position as Preferred OEM Suppliers, Operational Excellence In All Aspects to become Lowest Cost Producer, Product-based instead of Process-based, People Readiness & Organization Effectiveness)
• Consistently implemented Good Corporate Governance (GCG) principles
• No formal sanctions related to violations of product and service information and labeling

Climate Goals & Targets

Environmental Challenges

• Challenging automotive industry growth in 2019
• Decreasing car sales in Indonesia (10.8% decrease)
• Weakening consumer purchasing power impacting after-sales market
• Limited access and capability for community growth alongside industry

Mitigation Strategies

• Implemented LEAP strategy to improve efficiency and productivity
• Developed new products with high added value
• Shifted from process-based to product-based business model
• Developed WINTEQ division for Industry 4.0 implementation
• Consistently implemented CSR programs

Supply Chain Management

Supplier Audits: Regular evaluation of suppliers based on QCDSM (Quality, Cost, Delivery, Safety, Morale)

Responsible Procurement

• Prioritizing local suppliers
• Considering affordability and quality

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 8
• SDG 9
• SDG 12
• SDG 13

Contributions through CSR programs, employee development, environmental initiatives, and economic growth

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 5-star rating in Astra Friendly Company assessment for 26 companies

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental

Environmental Achievements

• Reduced energy consumption by 25% (from 5.19 million GJ to 4.15 million GJ)
• Reduced CO2 emissions by 35% (from 633 thousand tons to 470 thousand tons)
• Planted 2,600 trees
• Implemented cleaner production initiatives (reuse, recycle, reduce)
• Achieved at least a Blue level in the Astra Green Company (AGC) assessment

Social Achievements

• Assisted 41 SMEs and provided training to 53 individuals
• Developed 3 Kampung Berseri Astra (KBA)
• Maintained 41 Posyandu
• Facilitated 13,738 employees in training and development
• Maintained harmonious industrial relations with no complaints, sanctions, or fines

Governance Achievements

• Implemented Good Corporate Governance (GCG) principles
• Established a Whistleblowing System
• Implemented an Anti-Corruption/Gratification Program
• No violation reports received in 2020

Climate Goals & Targets

Environmental Challenges

• Significant decline in automotive sales due to the COVID-19 pandemic
• Supply chain disruptions
• Changes in consumer behavior
• Economic uncertainty

Mitigation Strategies

• Implemented a Cost Reduction Program (CRP)
• Optimized digital technology and e-commerce
• Developed new products (face shields, etc.)
• Closely monitored supply chain
• Adjusted operations and capacity
• Implemented health protocols

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with SMEs
• Focus on ethical sourcing and sustainable materials

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: POJK 51

Certifications: ISO 14001, ISO 50001, ISO 9001, IATF 16949, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Top Brand Award 2020
• Top Digital PR Award
• Top Digital Company Award 2020
• Indonesia Original Brand Award 2020
• WOW Brand 2020
• Corporate Image Award 2020
• PROPER Award

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Received 5 Gold AGC, 10 Green AGC, and 22 Blue AGC in environmental assessment.
• Planted 6,567 trees.
• Implemented "No single use plastic" policy.
• Reduced energy intensity per product by 7.69%.

Social Achievements

• Zero fatality work accidents.
• Provided training to 380 employees.
• Expanded business network to over 40 export countries.
• Spent Rp2.1 billion on health programs.
• Spent Rp506 million supporting education initiatives.
• Supported 74 MSMEs and provided entrepreneurship training to 93 people.
• Donated Rp1.2 billion to disaster relief and other social causes.

Governance Achievements

• Appointed Bambang Widjanarko E.S as Independent Commissioner.
• No corruption incidents recorded.
• Implemented a comprehensive whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Market uncertainty due to the ongoing COVID-19 pandemic.
• Global raw material shortages and logistical constraints.
• Evolving employment regulations.
• Cybersecurity risks.
• Foreign exchange volatility.
• Product liability risks.
• Sustainability risks (environmental, social, and governance).

Mitigation Strategies

• Maintaining operations at a reasonable level, prioritizing employee health and safety.
• Continuously managing production and supply chain, maximizing digital sales channels.
• Monitoring raw material availability and prices, securing key supplies.
• Maintaining good communication with labor unions.
• Implementing comprehensive IT security policies and raising employee awareness.
• Managing currency exposure within limits, conducting regular analysis and hedging.
• Implementing comprehensive product quality control processes.
• Embedding sustainability practices into business activities, ensuring compliance with regulations.

Supply Chain Management

Responsible Procurement

• Inclusive business practices, providing equal opportunities to suppliers.
• Transparent and ethical procurement processes.
• Periodic evaluation of supplier performance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: POJK 51/POJK.03/2017

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land
• Goal 16: Peace, Justice and Strong Institutions

The Company's CSR programs and business practices contribute to these SDGs.

Sustainable Products & Innovation

• Transparent mask with electric fan
• FREZAIR air purifier
• Grin MILES bicycle helmet
• SIGOGRIN High Flow Nasal Canula

Awards & Recognition

• Various CSR awards from local governments and organizations.
• PROPER awards
• AGC awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Greenhouse Gas emissions by 8.87% from 214,323 tons of CO2 in 2019 to 202,901 tons of CO2 in 2022.
• Increased renewable energy mix to 7.65% (112,673 GJ) of total energy consumption (1.472 million GJ).
• Reduced water use intensity by 7.98% to 0.0033 m3/production.
• Achieved 93.88% solid waste diversion through waste reduction, vendor development, and plastic waste management.

Social Achievements

• Reached 1,571 scholarship recipients, 2,713 training recipients, and 157 teacher training recipients through CSR programs.
• Implemented iPosyandu application in 37 Posyandu, improving health data management and reporting efficiency.
• Launched Astra Otopower, a charging facility for Battery-Based Electric Vehicles (KBLBB).
• Realized Rp2.53 billion in CSR costs.

Governance Achievements

• Implemented a comprehensive risk management system including Risk Assessment, Business Continuity Plan, Insurance Review, and Whistleblowing System.
• Maintained a strong code of ethics with no reported violations in 2022.
• 37.5% of Board of Commissioners are Independent Commissioners, exceeding the minimum requirement.

Climate Goals & Targets

Environmental Challenges

• Market risk due to potential lower demand affecting revenue.
• Supply chain risk due to geopolitical conditions impacting raw material prices and scarcity.
• Industrial relations risk due to changing labor regulations.
• Cybersecurity risk due to electronic interactions.
• Foreign exchange risk due to currency fluctuations.
• Product liability risk due to potential quality issues.

Mitigation Strategies

• Continuous production management, supply chain stabilization, and maximizing digital channels for sales.
• Monitoring price movements, improving efficiency, and securing key raw material supplies.
• Monitoring labor regulations, maintaining good communication with labor unions, and regular discussions.
• Comprehensive IT security policies and procedures, continuous cybersecurity awareness training, and periodic testing.
• Managing currency exposure within specified limits, regular analysis, and hedging.
• Comprehensive product quality control processes from upstream to downstream.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Transparent and integrity procurement process
• Compliance with QCDSM guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products
• Growth in the electric vehicle ecosystem

Reporting Standards

Frameworks Used: GRI, POJK No. 51/POJK.03/2017

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949, SMK3

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

The company's initiatives contribute to these goals through renewable energy adoption, job creation, sustainable production practices, community development programs, and climate change mitigation efforts.

Sustainable Products & Innovation

• Astra Otopower
• Medical devices (USG 2D, Anthropometry Set, Autoclave)

Awards & Recognition

• Bisnis Indonesia Award 2022
• The ASEAN Enterprise Innovation Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Good Corporate Governance

Environmental Achievements

• Reduced GHG emissions by 10.55% (from 178,991 tons CO2 to 160,106 tons CO2)
• Reduced GHG emission intensity by 6.41% (from 0.00078 tons CO2/product to 0.00073 tons CO2/product)
• Reduced liquid waste generated by 9.04%
• Reduced solid waste generated by 34.09%
• 14 companies achieved Gold level in Astra Green Company (AGC) assessment (180% increase from previous year)
• Planted 20,260 trees

Social Achievements

• Provided 215,625 hours of employee training (average 6.81 hours per employee)
• Reduced number of accidents by 50% (from 146 to 73)
• Reduced number of lost days due to accidents by 81.79% (from 379 to 69)
• Increased CSR expenditure to Rp3.97 billion (from Rp2.53 billion)

Governance Achievements

• Implemented Good Corporate Governance (GCG) practices based on 5 principles: Transparency, Accountability, Responsibility, Independency, Fairness and Equality
• Established a Violation Reporting System (VRS) to monitor and enforce ethical behavior
• No cases/incidents of corruption reported in 2023
• No reports of violations of the Company's Code of Ethics

Climate Goals & Targets

Environmental Challenges

• Global economic challenges (economic slowdown, geopolitical tensions, inflation)
• Increased demand for electric vehicle components due to growing EV adoption and climate change
• Tight competition in the export market

Mitigation Strategies

• Monitored price movements, improved cost efficiency, managed raw material needs wisely
• Developed and diversified products (including EV components and charging stations)
• Implemented operational excellence (focused on working capital management, productivity, non-automotive product diversification, and electric vehicle ecosystem initiatives)
• Implemented omnichannel marketing strategy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Transparent and integrity-driven procurement practices
• Environmental and social criteria for new suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme rain/flooding
• Long-term temperature rise

Transition Risks

• Government's National Energy Policy to increase renewable energy
• Changes in vehicle types and fuels

Opportunities

• New markets in EVs and EV services
• Efficiency through automation and technology

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949, SMK3

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

The report details how various initiatives contribute to these goals through economic growth, job creation, environmental sustainability, community development, and climate action.

Sustainable Products & Innovation

• Astra Otopower (EV charging stations)
• Medical devices (patient monitors, syringe pumps, infusion pumps, centrifuge, USG 2D v2)

Awards & Recognition

• Marketeers OMNI Brand of The Year 2023 (Shop & Drive)
• National Lighthouse Industry 4.0 award (PT Astra Komponen Indonesia)