Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved energy efficiency: In 2021, for every Gigajoule (GJ) of energy used, the Company received Rp0.5 billion, up from Rp0.2 billion in 2020 and Rp0.4 billion in 2019.
• Regular ship maintenance to minimize fuel spills and improve fuel efficiency, reducing emissions.

Social Achievements

• Participation in mass circumcision events and flood disaster donations.
• Empowerment of local communities through employment opportunities and community development programs.
• Compliance with regional minimum wage requirements.

Governance Achievements

• Formation of an Audit Committee and implementation of a whistleblower system.
• Implementation of good corporate governance principles (transparency, accountability, responsibility, independence, and equality).
• Regular review and updates of the Board of Commissioners and Board of Directors charters.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in revenue due to dependence on commodity transportation.
• Risks related to business competition, contract non-renewal, rising fuel prices, work accidents, and government policies.
• Need for continuous improvement in sustainability practices.

Mitigation Strategies

• Building strong relationships with customers and maintaining good communication.
• Implementing a risk management system to identify, analyze, and mitigate risks.
• Regular ship maintenance and adoption of new technologies to improve efficiency and reduce risks.
• Active monitoring of government regulations and adapting to changes in the industry.
• Maintaining an optimal capital structure to manage financial risks.

Supply Chain Management

Responsible Procurement

• 100% of suppliers are local (domestic).

Climate-Related Risks & Opportunities

Opportunities

• Participation in the growth of the electric vehicle ecosystem through nickel transportation.

Reporting Standards

Frameworks Used: Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015

Third-party Assurance: Kanaka Puradiredja, Suhartono

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action
• Goal 14: Life Below Water
• Goal 15: Life On Land
• Goal 17: Partnerships for the Goals

The Company's initiatives contribute to these goals through various programs and practices related to economic development, environmental protection, social responsibility, and good governance.

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Continued efforts in energy efficiency through ship maintenance, fuel use monitoring, and energy efficiency efforts at the head office.

Social Achievements

• Periodic distribution of economic value, including through MSME empowerment programs.
• Participation in the construction and renovation of places of worship.
• Contribution to the 2022 Grand Deliberation Activity and Gathering of Indonesia Maritime Academy Alumni.

Governance Achievements

• Implementation of Good Corporate Governance (GCG) principles.
• Establishment of a Whistleblowing System (WBS).

Climate Goals & Targets

Environmental Challenges

• Increasing fuel prices due to global oil price fluctuations.
• Limited availability of vessels amidst increasing transportation demand.
• Limited access to partnerships for CSR activities.
• Limitations in budget and competent human resources for CSR.

Mitigation Strategies

• Strategic steps to improve efficiency, including optimizing productive asset maintenance and supply management collaboration.
• Long-term cooperation and synergy with other sea transportation companies to secure additional fleet supply.
• Periodic review and adjustment of strategic policies and strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of domestic suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001:2015, ISM CODE

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 8
• Goal 9
• Goal 10

CSR activities and sustainable business practices contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Social Responsibility (CSR)
• Good Corporate Governance (GCG)

Environmental Achievements

• Reduced CO2 emissions through the use of environmentally friendly technology and biofuel blends.
• Implemented energy saving programs in offices and ships.
• Responsible waste management to minimize environmental pollution.

Social Achievements

• Launched programs to help communities.
• Supported environmental conservation activities.
• Upholds fair and responsible employment standards, including equal employment opportunities, regional minimum wages, a decent working environment, employee training and development, and providing opportunities for development.
• Prioritized local workers, used products and services from local companies, provided channels for public complaints, and implemented Social and Environmental Responsibility (TJSL) programs.

Governance Achievements

• Consistently implemented Good Corporate Governance (GCG) principles.
• Established an Anti-Bribery and Gratification Policy.
• Implemented a Whistleblowing Policy.
• Implemented a comprehensive risk management system.
• Held a General Meeting of Shareholders (GMS) and an Extraordinary General Meeting of Shareholders (EGMS).

Climate Goals & Targets

Environmental Challenges

• Fluctuations in global fuel prices.
• Limited ship fleet and increased vessel charter costs.
• Intense competition in the shipping industry.
• Unfavorable weather conditions.
• Limited resources (funds and technology) for sustainability targets.
• Impacts of climate change.
• Changes in maritime regulations.

Mitigation Strategies

• Improved efficiency through asset optimization and partnerships.
• Increased fleet capacity through collaborations.
• Implemented digitalization in business processes.
• Maintained financial health and operational efficiency to compensate for fuel price increases.
• Continuous crew training to improve competence and ensure safe operations.
• Actively monitored and complied with regulations.
• Maintained optimal capital structure to manage financial burdens.
• Monitored political and economic conditions to anticipate potential impacts.
• Implemented a disaster risk management system and secured insurance coverage for natural disasters.
• Focused on service diversification, area division, continuous cooperation with existing customers, and expansion of new customer market references.

Supply Chain Management

Responsible Procurement

• Collaboration with suppliers to ensure sustainable sourcing of raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (storms, tsunamis) impacting operations and assets.

Transition Risks

• Changes in maritime regulations related to emissions.

Opportunities

• Growing demand for sustainable products and services.
• Development of new technologies supporting sustainability (energy-efficient technology, renewable energy).

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

The Company's initiatives contribute to these goals through various programs and policies related to economic growth, environmental sustainability, and social responsibility.