Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Protection
• Efficient Use of Resources
• Health, Safety and Environment
• Growing with the community

Environmental Achievements

• Achieved Blue Rating in PROPER 2021 for Bayah and Ciwandan plants
• Maximum utilization of Waste Heat Recovery System (WHRS) at Bayah (30MW) and Trang Kenh (13MW) plants
• Increased use of Alternative Fuel & Raw Material (AFR) in production

Social Achievements

• New hire from local communities (69% of total recruitment in 2021)
• Zero fatalities for 3 consecutive years in Indonesia and 2 consecutive years in Vietnam
• Average training hours for employees: 11.79 hours/employee

Governance Achievements

• Implementation of Good Corporate Governance (GCG) principles
• Establishment of an Audit Committee and a Nomination and Remuneration Committee
• Completed the Initial Public Offering (IPO) and listed on the Indonesia Stock Exchange

Climate Goals & Targets

Environmental Challenges

• Impact of government policies to suppress the spread of COVID-19
• Rising raw materials and energy prices
• Increased logistics costs due to COVID-19
• Decreased cement demand in Vietnam due to lockdowns

Mitigation Strategies

• Maximizing coal inventory planning and utilization of long-term coal supply contracts
• Maximum utilization of WHRS and increased use of AFR to reduce production costs and emissions
• Maximizing utilization of logistics centers and ports
• Investing in environmentally friendly products
• Providing quality and affordable products with attractive promotions
• Choosing regions with efficient logistics costs
• Implementing digitalization in distribution management system
• Adjusting cement production volume to match demand in Vietnam

Supply Chain Management

Responsible Procurement

• Stable and cost-effective supply of raw materials through cooperation with subsidiaries

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: POJK No. 51/2017

Certifications: ISO 45001:2018, ISO 14001:2015, ISO 50001:2018, ISO 9001:2015, SMK3

Sustainable Products & Innovation

• PCC Plus (PCC P) cement product

Awards & Recognition

• Zero Accident Award
• Golden Dragon Awards 2021
• Award for contribution in Corporate Social Responsibility programs

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Occupational Health and Safety
• Community Engagement

Environmental Achievements

• Launched Semen Merah Putih Watershield, a water-repellent cement reducing water absorption in buildings.
• Reduced CO2 emissions by 19.3% (2022 vs 2021)
• Waste reduction of 19.3% (2022 vs 2021)
• WHRS generated energy of 111.977 MWh in 2022

Social Achievements

• 73.55% of total recruitment in 2022 were from local communities.
• Total TJSL cost of Rp5.162 billion in 2022
• Employee training programs with 4,067 participants and 8 programs in 2022

Governance Achievements

• Developed and ratified Board of Directors and Board of Commissioners Manuals.
• Implemented a Whistleblowing System.
• Implemented Good Corporate Governance (GCG) principles.

Climate Goals & Targets

Environmental Challenges

• Global commodity price increases and supply chain disruptions due to the Covid-19 pandemic and the Russia-Ukraine conflict.
• Sharp increase in raw material prices (coal and oil).
• Increased logistics costs and reduced transportation services.
• Oversupply of cement in the Indonesian market.

Mitigation Strategies

• Product innovation (Semen Merah Putih Watershield).
• Energy efficiency through alternative fuels and raw materials.
• Use of cheaper and more environmentally friendly transportation.
• Implementation of automation and digitalization.
• Market expansion in Sumatra, Kalimantan, and Sulawesi.
• Focus on existing projects and key customers.
• Intensive collection management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 50001:2018, ISO 9001:2015, SMK3, ISO 14001:2018, Industri Hijau No. SIH 23941.1:2018, ISO 14001:2015, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Semen Merah Putih Watershield

Awards & Recognition

• Top Innovation Choice Award 2022 (INFOBRAND.ID)
• Certificate of Merit (Hai Phong People’s Committee)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Health and Safety
• Community Engagement

Environmental Achievements

• Reduced specific CO2 emission by 3.7% compared to 2022 (624 kg/ton cement equivalent)
• Reduced average clinker factor by 4.4% compared to 2022 (73.5%)
• Specific Heat Consumption decreased by 0.3% compared to the average of the last three years (780 kCal/kg clinker)
• Increased Gross Power Generated from WHRS by 10.4% compared to the average of the last three years (178,295 MWh)
• Used 526,274 tons of alternative raw materials and fuels in 2023
• Bayah plant won the Climate Action Award from the World Cement Association in 2023
• Purchased electric vehicles (trucks, wheel loaders, and forklifts) to replace diesel-based vehicles

Social Achievements

• Zero workplace accidents at Ciwandan plant (2017-2022) and Bengkulu plant (2021-2023)
• Various community engagement initiatives in Indonesia (free medical check-ups, qurban aid, road construction, school support, etc.)
• Various community engagement initiatives in Vietnam (donations for house construction, aid to underprivileged communities, etc.)
• Received the Golden Dragon Awards 2023 (22nd consecutively)

Governance Achievements

• Implementation of advanced process control systems in Bayah plant
• Installation of AFR feeding facility at Bayah plant to improve thermal substitute rate (TSR)
• Modification of Line #1 raw mill at Bayah plant to improve energy efficiency
• Received PROPER BLUE rating in 2023 (pending award ceremony)
• Received Platinum ranking for Occupational Safety and Health
• Received award for Domestic Product Usage

Climate Goals & Targets

Environmental Challenges

• Weakening cement market in Vietnam, resulting in a 21% decrease in cement sales
• Overall slight decrease in total revenue due to weakening operational performance of the cement business in Indonesia

Mitigation Strategies

• Increased export sales by 1.2 million tons to countries including Singapore, Philippines, Mauritius, and Madagascar
• Maintaining gross profit margin at 26% and EBITDA margin at 19%

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Cement anti-air and fast-drying concrete

Awards & Recognition

• Winner Climate Action 2023
• Golden Dragon Awards 2023
• PROPER BLUE 2023 (pending)
• Platinum ranking for Occupational Safety and Health
• Award for Domestic Product Usage