Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Employee Well-being
• Corporate Governance

Environmental Achievements

• Reduced pollution levels through the use of more environmentally friendly natural gas and Regenerative Burner technology (recovering 20% of wasted heat)
• Achieved a blue rating for proper waste management
• Regularly conducted examinations of wastewater, ambient air, and air emission samples for UKL-UPL evaluation reporting

Social Achievements

• Signed a Collective Labor Agreement with SPSI in 2018 to strengthen company-employee relations
• Low employee turnover rate of 0.37% in 2019
• Provided health insurance coverage for employees, spouses, and children through the Indonesian government's program
• Offered various employee training and development programs (Cost Reduction Tooling, Heat Treatment Aluminium, Waste Water Pollution Control, AEO socialization)
• Donated to orphans, renovated government buildings, religious foundations, and schools
• Conducted routine blood drives and facilitated free employee transportation during Eid al-Fitr

Governance Achievements

• Adherence to good corporate governance principles (transparency, fairness, accountability, independence, responsibility)
• Established a robust corporate governance structure with clear roles and responsibilities for the Board of Directors and Commissioners
• Implemented an internal audit unit and audit committee to ensure compliance and financial reporting integrity
• Regularly held Board of Directors and Commissioners meetings
• Consistently achieved 100% success rate in handling customer claims since 2017

Climate Goals & Targets

Environmental Challenges

• Slow and erratic business conditions due to global economic slowdown and trade wars
• Decreased international aluminum prices leading to some domestic customers holding back purchases
• Increased costs in the construction service sector impacting profitability
• Transportation challenges impacting raw material supply and finished product delivery
• Economic turmoil affecting the property business and construction services

Mitigation Strategies

• Diversification of markets (export sales increased by 10.53% compared to the previous year)
• Periodic maintenance, timely spare part replacement, and equipment rejuvenation to maintain production facilities
• Continuous improvement efforts to achieve good corporate governance
• Development of more efficient management control systems
• Proactive marketing strategies, especially for export markets
• Implementation of a flexible capital structure policy

Supply Chain Management

Responsible Procurement

• Long-term purchase contracts with 4 suppliers (minimum 1 year)
• Incoming inspections to ensure raw material quality

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Indonesian Financial Accounting Standards (SAK)

Certifications: ISO 9001:2015, Accreditation Certification from the National Accreditation Committee for Testing Laboratories and Calibration Laboratories

Third-party Assurance: PKF - Paul Hadiwinata, Hidajat, Arsono, Retno, Palilingan & Rekan

Awards & Recognition

• Palamarta Silver 2019
• Forbes Top 50 Listed Companies for 2019 Award
• Infobank 100 Fastest Growing Companies Awards
• Authorized Economic Operator (AEO) certification

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environment
• Social
• Economic

Environmental Achievements

• Obtained a BLUE PROPER rating in the company's performance appraisal program in environmental management.
• Use of natural gas that is more environmentally friendly for the production process of smelting and heating, with the impact of lower pollution levels. With Regenerative Burner technology, the wasted heat from the chimney can be recovered to help the combustion process by 20%.
• 100% of scrap (aluminum waste) is reprocessed.
• Decreased electricity consumption compared to 2020.

Social Achievements

• Donated 5850 boxes of masks or 292,500 masks, 7000 bars of soap, 2000 fans, 40 air purifiers, 30 tons of rice, 500 packages of basic necessities and other household equipment and supplies to various communities.
• Provided material donations and sponsorships for mass vaccine events, assistance to orphanages in Lamongan and several community foundations in Surabaya, as well as construction of public facilities in the factory area.
• Employee turnover rate of 4.42% in 2021.
• Average training hours per employee of 0.79 hours.

Governance Achievements

• Continuous efforts to improve the implementation of Good Corporate Governance (GCG) practices at all levels of the organization.
• The Company held 1 (one) Annual SGM (AGM) on August 31, 2021.
• The Audit Committee has completed its work plan program and reported findings to the Board of Commissioners.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and rising fuel prices.
• Weakening domestic demand due to depressed purchasing power during the pandemic.
• Shipping problems due to the scarcity of transportation facilities (containers and shipments).
• Delays in project implementation in the construction services business, leading to delayed payments.
• High competition in the aluminum and construction services industries.

Mitigation Strategies

• Diversification of products into the alternative energy sector (solar panel support systems).
• Intensified market penetration in America, Australia, and Europe.
• Control of raw material inventory from multiple suppliers with long-term contracts.
• Minimizing exposure to foreign currency exchange differences using Trust Receipts.
• Improving product quality, cost efficiency, and production capacity.

Supply Chain Management

Responsible Procurement

• The Company uses materials that are RoHS (The Restriction of Hazardous Substances Directive) and REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) certified materials.

Climate-Related Risks & Opportunities

Opportunities

• Diversification into renewable energy products (solar panel support systems).

Reporting Standards

Frameworks Used: GRI, PSAK 72

Certifications: ISO 9001:2015, KAN (National Accreditation Committee)

UN Sustainable Development Goals

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

The company's initiatives contribute to these goals through renewable energy product development, job creation, infrastructure development, and emission reduction efforts.

Sustainable Products & Innovation

• Solar Panel Support System

Awards & Recognition

• PROPER Blue rating

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• 100% of aluminum scrap is reprocessed in production activities.
• Used materials certified by RoHS and REACH.
• Implemented Regenerative Burner technology, recovering 20% of wasted heat.

Social Achievements

• Allocated Rp. 101,961,357 for community programs (part of a larger Group allocation).
• Maintained minimum wages at or above government standards.
• Provided 0.77 average training hours per employee.

Governance Achievements

• Implemented a Whistle Blowing System.
• Established an anti-corruption policy, integrated into the Code of Ethics.
• Regularly conducts internal audits and reviews.

Climate Goals & Targets

Environmental Challenges

• Slow recovery of the property sector impacting the construction services subsidiary (PT Indalex).
• Fluctuations in aluminum prices.
• Maintaining smooth supply of raw materials and delivery of finished products.

Mitigation Strategies

• Diversification into alternative energy sector (solar panel frames).
• Focus on rejuvenation of production facilities to increase efficiency.
• Long-term purchase contracts with raw material suppliers.
• Tightening controls to minimize unexpected costs.

Supply Chain Management

Responsible Procurement

• 766 suppliers from all over Indonesia.
• Uses RoHS and REACH certified materials.

Climate-Related Risks & Opportunities

Opportunities

• Increased demand for solar panel support systems.

Reporting Standards

Frameworks Used: OJK Regulation No. 51/POJK.03/2017

Certifications: ISO 9001:2015, RoHS, REACH, TUV, Kite Mark

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 1 (No Poverty)

Initiatives contribute to these goals through various community programs, renewable energy product development, and job creation.

Sustainable Products & Innovation

• Aluminum extrusion profiles for solar panel frames.

Awards & Recognition

• Palamarta Silver 2019 (PT Indalex)

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• 100% reprocessing of aluminum scrap in production
• Professional management of 342 tons of waste by a certified company
• Achieved PROPER BLUE rating from the Ministry of Environment and Forestry

Social Achievements

• Community programs with IDR 198,510,558 contribution in 2023 (centralized by the Group)
• 1,203 employees participated in training with an average of 0.22 hours per employee

Governance Achievements

• Good Corporate Governance (GCG) principles as a high priority
• Implementation of an effective internal control system
• Regular socialization of the anti-corruption policy in the Code of Ethics

Climate Goals & Targets

Environmental Challenges

• Uncertainty in product demand and material supply from international markets
• Weakening export demand
• Slowing international trade traffic
• Pressure on cash flow and profitability due to delays in development projects and increased costs

Mitigation Strategies

• Diversification of products and markets
• Focus on domestic market
• Re-evaluation of internal procedures and policies
• Rejuvenation of resources to keep up with changes in product and technology trends
• Stricter control to minimize unexpected costs

Supply Chain Management

Responsible Procurement

• Use of RoHS and REACH certified materials
• 782 suppliers from all over Indonesia

Climate-Related Risks & Opportunities

Opportunities

• Diversification into renewable energy sector (solar panel frames)

Reporting Standards

Frameworks Used: PSAK (Indonesian Financial Accounting Standards), OJK (Financial Services Authority) Regulations

Certifications: ISO 9001:2015, KAN (National Accreditation Committee) for laboratory

UN Sustainable Development Goals

• Goal 9: Industry, Innovation and Infrastructure
• Goal 3: Good Health and Well-being
• Goal 1: No Poverty

Initiatives related to infrastructure maintenance, community programs, and donations

Sustainable Products & Innovation

• Components for solar panel frames

Awards & Recognition

• PROPER BLUE rating