Climate Change Data

Environmental Metrics

ESG Focus Areas

• Good Corporate Governance
• Environmental Management
• Human Capital Management

Environmental Achievements

• Achieved Blue Rating for Company Performance in Environmental Management for 2019-2020 period

Social Achievements

• Provides Employee Social Insurance of BPJS Ketenagakerjaan and BPJS Kesehatan, holiday allowances, as well as providing employee mess and housing facilities, worship facilities and sports facilities.
• Various programs to ensure the Company gets the best candidate, which includes its participation in job fairs and while also maximizing database from online or e-mail applications.

Governance Achievements

• Consistently improved the quality of the implementation of corporate governance in accordance with the values of accountability, transparency, responsibility, independence and fairness.
• Implemented Good Corporate Governance standards in all aspects of the Company

Climate Goals & Targets

Environmental Challenges

• Quality of wood raw material supply which influentially affects the quality of the products, especially for Plywood products.
• COVID-19 pandemic causing economic growth to contract and decrease in the number of requests and selling prices from the Company’s main export destination countries.

Mitigation Strategies

• The Company turns to be more selective in cooperating with suppliers of wood raw materials in order to get a high-quality wood supply.
• Increasing production capacity by adding new MDF product facilities and developing innovations for processed wood products.
• Focusing on profitable market segmentation and development of other processed wood product innovations.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• MDF
• HMR
• Veneer
• Plywood
• MDF laminated paper
• Plywood MDF

Awards & Recognition

• Award for COVID-19 Prevention and Control Efforts
• Blue Rating Award for Company Performance in Environmental Management for 2019-2020 period
• IPC Customer Of The Year 2020 The Best Customer Of Jambi Category Containerized Cargo Owner

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Governance

Environmental Achievements

• Maintained PROPER BIRU rating for environmental compliance.
• Reduced coal use in power plant, switching to biomass (wood waste, shells, palm fiber).

Social Achievements

• Recorded 1,269,255 zero accident work hours.
• Implemented various CSR programs benefiting 1,200 people.
• Spent Rp412,441,333 on employee CSR activities.

Governance Achievements

• Implemented ISO 9001:2015 Quality Management System.
• Established a sustainability governance structure with delegated responsibilities across divisions.

Climate Goals & Targets

Environmental Challenges

• Raw material (wood) availability due to long growth cycles of rubber and racuk trees and shifting land use to palm oil plantations.
• Increased transportation costs due to shifting raw material sourcing areas.
• Emissions from coal-based power plant.
• Limited production capacity at current MDF facilities.

Mitigation Strategies

• Using river transport for remote raw material sourcing.
• Collaborating with community for replanting.
• Switching to biomass fuel for power plant.
• Planning to replace boiler with Circulating Fluid Bed Boiler (CFB).
• Planning to expand MDF production facilities to increase capacity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing local suppliers
• Requiring SVLK certification for timber suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Damage to road infrastructure due to weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: POJK 51/POJK.03/2017

Certifications: ISO 9001:2015, SVLK (Timber Legality Assurance System), US EPA 40 CFR Part 770 TCSA Title VI, California Air Resources Board (CARB), Japanese Industrial Standards (JIS)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• MDF meeting JIS standards

Awards & Recognition

• PROPER BIRU

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Secured blue PROPER from the Ministry of Environment and Forestry (KLHK) for environmental performance.
• Met emission standards for MDF products with US EPA, CARB, and JIS certifications.
• Recycled wood waste for fertilizer, boiler fuel (chips), and paving blocks (fly ash).
• Utilized steam boiler Power Plant for steam supply to MDF factory and process wastewater for cooling tower water.

Social Achievements

• Increased zero-accident working hours to 1,360,477 hours.
• Achieved a customer satisfaction survey score of 91 (out of 100) with a “Good” predicate.
• Distributed Rp1.443 million for CSR programs in social and religious fields.
• Provided equal employment opportunities and did not discriminate based on gender.

Governance Achievements

• Implemented good corporate governance (GCG) principles.
• No sanctions or penalties received during the reporting period.
• Delegated ESG responsibilities to relevant divisions (Finance, ERS, SHE).

Climate Goals & Targets

Environmental Challenges

• Uncertain global conditions (geopolitical pressures, supply chain disruptions, inflation).
• Increased raw material costs due to rising petroleum prices.
• Limited availability of rubber and racuk wood for MDF production (3-5 year growth cycle).
• Changing and distant raw material supply areas, increasing transportation costs.
• Emergence of oil palm plantations reducing rubber tree cultivation.

Mitigation Strategies

• Sought alternative, more affordable wood raw materials.
• Increased synergy with surrounding communities for replanting.
• Implemented river transportation for distant supply areas.
• Replaced power plant’s combustion engine (boiler) with a circulating fluid bed boiler (CFB).
• Used biomass (wood waste) as fuel for power plants to replace coal.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing local suppliers.
• Requiring SVLK certification for wood suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (e.g., rain damaging road infrastructure)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2021, POJK No. 51/POJK.03/2017, SEOJK No. 16/SEOJK.04/2021

Certifications: ISO 9001:2015, SVLK, CARB, US EPA 40 CFR Part 770 TCSA Title VI, JIS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• MDF produced to meet JIS standards (low emission levels).

Awards & Recognition

• Blue PROPER from KLHK

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Maintained Blue PROPER predicate from the Ministry of Environment and Forestry (KLHK)
• Obtained certifications from the US EPA 40 CFR Part 770 TCSA Title VI, California Air Resources Board (CARB), and Japanese Industrial Standards (JIS)
• Increased biomass utilization in the power plant to replace coal
• Reduced energy consumption intensity by 1.89% compared to 2022

Social Achievements

• Successfully conducted 38 trainings for 330 employees with 1,464 training hours per employee/year
• Distributed Rp1.494 million in CSR funds
• Achieved a customer satisfaction score of 92 (excellent)

Governance Achievements

• No fines or penalties received from any institutions or regulators in 2023
• Implemented a strict quality control system throughout the production process

Climate Goals & Targets

Environmental Challenges

• Sustainability concerns regarding raw material requirements, especially wood
• Constantly changing areas of wood supply and considerable distances, increasing transportation costs
• Shift in community planting habits from rubber trees to palm trees, impacting raw material supply
• Damaged road conditions during the rainy season, hindering transportation

Mitigation Strategies

• Increased biomass utilization (wood waste, palm shells, palm fiber, empty fruit bunch) as an alternative fuel for the Boiler Power Plant
• Implemented a policy to leverage waterborne transport for remote supply areas
• Strengthened synergy with surrounding communities for replanting
• Constructed new roads to improve transportation access
• Regularly maintained main roads used for raw material distribution

Supply Chain Management

Responsible Procurement

• Prioritizing local suppliers
• Requiring SVLK certification for wood suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns impacting transportation

Reporting Standards

Frameworks Used: GRI Standards 2021, POJK No. 51/POJK.03/2017, SEOJK No. 16/SEOJK.04/2021

Certifications: ISO 9001:2015, SVLK, CARB, US EPA 40 CFR Part 770 TCSA Title VI, JIS, SMK3 (awaiting new certificate)

Sustainable Products & Innovation

• MDF with low emission levels meeting JIS standards

Awards & Recognition

• Blue PROPER predicate