Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance

Environmental Achievements

• Maintained PROPER Gold rating for the fourth time and third consecutive year.
• Reduced GHG emission intensity by 1.95% from 2020.
• Implemented various initiatives to reduce emissions, including using biodiesel (B30), Coal Transport Monitoring System, and solar PV installations.
• Successfully completed watershed rehabilitation of 440.43 Ha and handed it over to the Ministry of Environment and Forestry.
• Increased proboscis monkey population by 63.6% since 2014 in Paringin post-mining area.

Social Achievements

• Recruited 2,027 new employees.
• Average training hours per employee increased to 42.13 hours.
• Implemented various CSR initiatives focused on assisting the community and government in navigating the COVID-19 pandemic, including donating over IDR 2.75 billion and providing 15,000 free vaccines.
• Received several awards for CSR initiatives, including Gold Champion in Corporate Social Responsibility Program and Top Corporate Social Responsibility Award of the Year 2021.

Governance Achievements

• Upgraded MSCI ESG Ratings to BBB from BB.
• Successfully conducted the 2021 Annual General Meeting of Shareholders.
• Implemented a robust risk management system with a Three Lines of Defense approach.
• Established a Whistleblowing System.

Climate Goals & Targets

Environmental Challenges

• Three fatality incidents resulting in increased LTIFR to 0.12 and increased SR to 176.86.
• Challenges and uncertainties due to the COVID-19 pandemic.
• Coal production decreased by 3% y-o-y.
• Increase in overburden removal volume and fuel costs led to a 16% y-o-y increase in coal cash cost per ton.

Mitigation Strategies

• Instilled Adaro Zero Accident Mindset (AZAM) and took immediate corrective actions after fatality incidents.
• Developed an ESG roadmap for future goals.
• Developed a Carbon Abatement Project for Net Zero Emissions roadmap.
• Implemented various green initiatives to reduce GHG emissions and improve environmental performance.
• Implemented various initiatives to reduce wastewater pollution load.

Supply Chain Management

Supplier Audits: 41 subsidiaries; CSMS (Contractor Safety Management System) used for evaluation.

Responsible Procurement

• Strict selection process based on company requirements.
• Compliance with applicable laws and regulations.
• Identification of prohibited materials (asbestos, ODS, PCBs, etc.).
• Use of technical guidelines for contractor QSHE management.

Climate-Related Risks & Opportunities

Physical Risks

• Rainy season impacting overburden removal and increasing fuel costs.

Transition Risks

• Not disclosed

Opportunities

• Development of non-coal businesses (aluminum smelter)
• Carbon sequestration and storage opportunities.

Reporting Standards

Frameworks Used: GRI Standards (Core and Comprehensive options), Mining and Metals Sector Supplement (MMSS)

Certifications: ISO 14001:2015 (AI and SIS), ISO 45001:2018 (SIS), ISO 17025:2017 (AI Coal Laboratory Services), ISM Code (MBP)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Various initiatives contribute to these goals through emission reduction, renewable energy adoption, and sustainable development programs.

Sustainable Products & Innovation

• Envirocoal (low-pollutant thermal coal)

Awards & Recognition

• PROPER Gold (AI)
• Global CSR Award (AEI)
• Indonesia SDGs Award (ISDA) (AI)
• ASEAN Coal Award (AI)
• Top Corporate Social Responsibility Award of the Year 2021 (AEI)
• Tempo Country Contributor Award 2020 (AEI)

Environmental Metrics

ESG Focus Areas

• Green Economy
• Renewable Energy
• Environmental Performance
• Community Development
• Sustainable Growth

Environmental Achievements

• Reduced total energy consumption by 21% y-o-y
• Reduced GHG emission (scope 1) by 22% y-o-y
• Installed 130 kWp PV Rooftop and 468 kWp PV Floating (one of the largest operational floating PV in Indonesia)
• Ecosystem restoration and carbon capture through subsidiaries

Social Achievements

• Various CSR programs including education, economic development, health, environmental enhancement, socio-cultural enrichment
• Received 5th PROPER Gold Award
• MSCI ESG rating of BBB

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Regulatory changes impacting royalty rates and tax structures
• Fluctuating coal prices
• Global push towards renewable energy affecting coal demand

Mitigation Strategies

• Diversification into renewable energy and green minerals
• Cost control through integrated business model
• Focus on low-cost operations
• Exploration of opportunities to serve green mineral and green energy needs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Global push towards renewable energy affecting coal demand

Opportunities

• Development of renewable energy projects

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 5th PROPER Gold Award
• Various other awards listed in the report