Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced waste and effluents through sustainable manufacturing strategies
• Collaboration with WWF Indonesia's Global Forest & Trade Network (GFTN) for sustainable forest management
• Recycled wastewater and reused it for sanitary water and factory equipment cooling
• Used wood waste (sawdust and bark) as fuel for kiln dryers

Social Achievements

• Increased female employee composition to 23.4% in 2020 from 21.9% in 2019
• Implemented various social programs (scholarships, nutritious food, basic food parcels, free health services)
• Zero tolerance policy against workplace violence and harassment
• Provided 17.8 man-days of training and held 21 internal and 9 external training programs

Governance Achievements

• Implemented a structured risk management plan
• Established a Whistleblowing System for reporting misconduct
• Developed a Code of Ethics covering business and work ethics

Climate Goals & Targets

Environmental Challenges

• Government regulation risk
• Exchange rate fluctuation risk
• Interest rate risk
• Raw material availability risk
• Fire risk
• Wage increase risk
• Risk of reliance on customers
• Business competition risk

Mitigation Strategies

• Adjusting internal policies to comply with regulations
• Monitoring exchange rate fluctuations and adjusting financial projections
• Considering favorable interest rates before taking on debt
• Maintaining sufficient raw material inventory
• Actively monitoring and improving operating efficiency, maintaining health and safety standards
• Projecting wage increases and determining appropriate business strategies
• Maintaining long-term relationships with main customers
• Improving product quality, expanding distribution network, maintaining competitive prices

Supply Chain Management

Responsible Procurement

• Using legal and certified wood

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standard, POJK No. 51/2017 (Sustainable Finance)

Certifications: ISO 9001:2015, FSC, SVLK

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 6: Clean water and sanitation
• Goal 8: Decent work and economic growth
• Goal 13: Climate action
• Goal 15: Life on land

Integra's sustainability strategy and initiatives align with these SDGs through various programs and practices described in the report.

Awards & Recognition

• Palamarta Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Issued Verified Carbon Units (VCU) in 2022 and expected to conduct carbon trading in 2023.
• Recycled wastewater and reused it so that no wastewater is discharged to water sources or other media in operational facilities.
• Implemented Reduce Impact Logging (RIL) practices in the process of wood harvest.
• Sustainable forest management under FSC guidelines.

Social Achievements

• Provided various community programs such as rice distribution, building material assistance, donations to orphanages and nursing homes, provision of free space areas for street vendors, and emergency response assistance.
• Provided wages and benefits that meet, even above, the regional minimum wage.
• Implemented a zero-tolerance policy against any violations related to gender and employment rights.
• No terminations related to the pandemic were made except for performance-related reasons.

Governance Achievements

• Implemented Good Corporate Governance (GCG) procedures well in every aspect of the business.
• Annual GMS and Extraordinary GMS were held.
• No violations or irregularities were found within the Company in terms of business ethics, operations and financial.

Climate Goals & Targets

Environmental Challenges

• Significant business challenges, slowing demand, and the impact of various external factors.
• Decline in demand in the US market.
• High inflation in the US and Europe.
• High increase in shipping cost rates.

Mitigation Strategies

• Adopting a strategy that focuses on business efficiency and productivity improvement.
• Improving efficiency, expanding production capacity, and driving innovation to strengthen sales and market position.
• Shifting to the domestic market and expanding export destinations to non-traditional markets.
• Improving margins through direct marketing arms, and capitalizing on increased demand on online platforms.

Supply Chain Management

Responsible Procurement

• Using legal and certified woods.
• Certified suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SDGs

Certifications: ISO 14001:2015, SVLK, FSC, ISO 45001:2018, Higg Index, ISO 9001:2015, CARB (US), EPA (Europe)

UN Sustainable Development Goals

• SDG 5
• SDG 6
• SDG 8
• SDG 13
• SDG 15

Integra’s sustainability strategies and initiatives adopt five basic objectives from the SDGs.

Awards & Recognition

• Palamarta 2023 award