Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Converted factory’s liquid waste into electricity to replace diesel fuel and electricity from PLN, reducing reliance on fossil fuels.
• Processed solid waste into organic fertilizer.

Social Achievements

• Continued investment in employee training and development.
• Provided various employee benefits (health, transportation, meals, housing, insurance, etc.).
• Maintained harmony between the company and surrounding communities through various social initiatives (Eid packages, basic needs packages, mosque building, road repairs, etc.).

Governance Achievements

• Maintained good corporate governance practices with the assistance of the audit committee and internal audit unit.
• Promoted Mrs. Mawarti Wongso to Director from Corporate Secretary.
• Implemented a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Abnormal weather conditions (El Niño) disrupted cassava harvesting and planting, leading to a shortage and increased raw material costs.
• Increased flow of imported sweetener products affected revenue and profitability.
• Weakening of the Indonesian Rupiah against the US Dollar caused unrealized foreign exchange losses.

Mitigation Strategies

• Increased selling prices of tapioca starch and sweeteners to compensate for increased raw material costs.
• Slashed selling and administrative costs through efficiency programs.
• Concluded a deal with a buyer to terminate a long-term CER delivery agreement, generating additional cash flow and freeing up future CERs for sale.
• Investing in tapioca factories outside of Lampung to increase tapioca sourcing and bring production closer to customers.

Supply Chain Management

Responsible Procurement

• Partnership with farmers
• Providing cassava seeds and fertilizers to farmers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (El Niño)