Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Environmental Management
• Occupational Safety and Health

Environmental Achievements

• Wastewater treatment facilities operated in compliance with Law No. 32 of 2009 and Regulation No. 72, 2013. Monthly testing ensures quality standards are met.
• Air quality tests every six months show results better than standards under Regulation No. 10, 2009.
• B3 waste management in compliance with Government Regulation No. 101, 2014.
• Non-B3 waste sorted and processed, with organic waste used for alternative energy or compost.
• Gempol and Kediri facilities received a Blue rating for meeting national regulatory standards.
• Water conservation through rainwater harvesting using 27 wells in Kediri.
• Greening program in Kediri to improve air quality and aesthetics.

Social Achievements

• Contributed Rp 78.9 billion to CSR programs covering cultural activities, sports, education, and social infrastructure.
• Provided emergency relief after Lombok and Bali earthquakes, including food, water, shelter, and infrastructure.
• Participated in house rehabilitation programs in Probolinggo District under the One Village One Corporate (OVOC) initiative.
• Provided humanitarian support through ‘Salam Tempel’ activities.
• Sponsored Kediri Night Carnival and Surabaya Flower Parade Vaganza.
• Financed skateboard park facilities.
• Provided educational scholarships and assistance to local schools.
• Organized free healthcare and treatment in Kediri.
• Participated in ‘buka puasa’ and ‘zakat’ and ‘fitrah’ activities.
• Provided tents for police during Idul Fitri, Christmas, and New Year travel periods.

Governance Achievements

• Implementation of ‘Catur Dharma’ principles, reflecting company culture and values.

Climate Goals & Targets

Environmental Challenges

• Natural disasters (earthquakes in Lombok and Bali)
• Poverty (approximately 20% of the population vulnerable)

Mitigation Strategies

• Emergency relief efforts after earthquakes (food, water, shelter, infrastructure rehabilitation).
• House rehabilitation programs in Probolinggo District.
• Humanitarian support through ‘Salam Tempel’ activities.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community welfare
• Education
• Responsible sale of products
• Environmental management
• Employee safety and health

Environmental Achievements

• Wastewater treatment compliant with Regulation No. 72, 2013 (East Java Governor)
• Air quality better than standards in Regulation No. 10, 2009 (East Java Governor)
• B3 waste management compliant with Government Regulation No. 101, 2014
• Use of biomass (used tobacco and wood packaging) for fuel
• Water conservation through 27 rainwater harvesting wells
• Greening program to improve air quality and aesthetics

Social Achievements

• Rp 28.3 billion invested in CSR programs (culture, education, social infrastructure)
• House rehabilitation programs in Probolinggo (OVOC initiative)
• Sidewalk improvements in Kediri
• Irrigation canal normalization in Kediri
• Planting 3,900 trees (durian, avocado, tamarind, banyan)
• Participation in Kediri Culture and Decorative Car Parade, Night Carnival, Surabaya Vaganza, and Jazz Brantas Music Concert
• Scholarships and school renovation donations
• Employee participation in blood donation programs
• Provision of tents for police during Idul Fitri, Christmas, and New Year travel periods

Governance Achievements

• Compliance with labor law and collective labor agreement
• Implementation of SMK3 (Occupational Health and Safety Management System) achieving 93.37% (Satisfactory) in audit by PT. Sucofindo
• Full compliance with government regulations on health warnings and advertising

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Award from the Governor of East Java for SMK3 achievement

Environmental Metrics

ESG Focus Areas

• Community Development
• Environmental Sustainability
• Occupational Health and Safety
• Product Responsibility

Environmental Achievements

• Improved wastewater treatment facilities meeting East Java Governor's Regulation No. 72 of 2013 standards.
• Air quality better than standards in East Java Governor's Regulation No. 10 of 2009.
• Proper management of B3 and non-B3 waste.
• Water conservation through 27 rainwater harvesting wells.
• Greening programs improving air quality and aesthetics.
• Use of biomass (used tobacco and wood packaging) for fuel.

Social Achievements

• Rp 48.4 billion spent on CSR programs.
• Provided community support to combat COVID-19 (PPE, ambulance, vehicles).
• Improved clean water facilities in Puncu and Satak Villages.
• Planted 12,482 Crystal Guava and 3,405 Star fruit trees.
• Built supporting facilities in Totok Kerot Park.
• Equal opportunity employer, compliant with labor law and collective labor agreement.
• Community engagement during Ramadan (buka puasa, zakat, fitrah).
• Donated tents for officers during homecoming season.

Governance Achievements

• Full compliance with government regulations on health warnings and responsible sales to adults only.
• Company Performance Rating Program (PROPER) Blue rating for Gempol and Kediri facilities.
• Occupational Health and Safety Management System (SMK3) audit achieved 93.37% (Satisfactory).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting normal operations and community health.
• Market trends and consumer preferences for alternative smoking products.

Mitigation Strategies

• Implemented safety measures in workplaces (temperature checks, masks, hand sanitizers).
• Disseminated information on minimizing infection risk.
• Provided community support to combat COVID-19.
• Monitored market trends and preferences to maintain competitive position.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (floods, forest fires)

UN Sustainable Development Goals

• UN SDG Goals (implicitly mentioned)

CSR activities contribute to social, economic, and environmental balance.

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Kediri and Gempol facilities received a Blue PROPER rating, signifying compliance with national regulatory standards.
• Improved wastewater treatment in compliance with East Java Governor's Regulation No. 72/2013.
• Air quality test results better than standards in East Java Governor's Regulation No. 10/2009.
• Responsible energy management through biomass utilization (used tobacco and wood packaging).

Social Achievements

• Rp 47.4 billion spent on community programs in 2021.
• COVID-19 support measures including protective equipment, disinfection teams, and vehicle donations.
• Construction of integrated community service facilities for Kediri City Police.
• Support for local farmers in Dandangan village with generators and livestock feed chopping equipment.
• Link & Match programs with vocational high schools to prepare graduates for the job market.

Governance Achievements

• Commitment to ethics in business dealings and a code of conduct for employees.
• Oversight by the Board of Commissioners and Independent Audit Committee.
• Regular audits of the Company's Occupational Health and Safety Management System (SMK3) by PT Sucofindo.

Climate Goals & Targets

Environmental Challenges

• Pandemic challenges impacting operations and community support.
• Pressure on water resources due to population growth and agricultural expansion.
• Maintaining responsible marketing practices in the tobacco industry.

Mitigation Strategies

• Implementation of COVID-19 safety measures in the workplace.
• Community support programs addressing water access and agricultural production.
• Compliance with government regulations on health warnings and responsible marketing.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption
• Lower dependence on fossil fuels
• Reduction in energy intensity and carbon emissions
• Both Kediri and Gempol facilities received a Blue PROPER rating

Social Achievements

• Spent Rp 46.3 billion on CSR programs
• Maintained health and safety of employees during the pandemic
• Provided support measures to local communities during COVID-19
• Continued investment in human capital and communities
• Maintained equal opportunities employment

Governance Achievements

• Commitment to ethics in business dealings and a code of conduct for employees
• Supervision and oversight by the Board of Commissioners and Independent Audit Committee
• Risk assessments incorporated within established Governance protocols
• No issues in 2022 in implementation of sustainability programs

Climate Goals & Targets

Environmental Challenges

• Climate change
• Pandemic (COVID-19)

Mitigation Strategies

• Efficient energy management
• Reduced electricity consumption and fossil fuel dependence
• Maintaining health and safety protocols for employees
• Providing support to local communities

Supply Chain Management

Responsible Procurement

• Maintaining relationships with suppliers including tobacco and clove farmers

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: SMK3 (Occupational Health and Safety Management System)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 15% compared to the previous three-year average.
• Reduced water usage.
• Reduced waste generated.
• Both Kediri and Gempol facilities received a Blue PROPER rating, signifying compliance with national regulatory standards.

Social Achievements

• Spent Rp 29.4 billion on CSR programs.
• Active participation in Kediri's anniversary events.
• Donated tent facilities for officers during Idul Fitri, Christmas, and New Year.
• Completion of the Dhoho Airport project.

Governance Achievements

• Full compliance with prevailing environmental standards.
• Implementation of a Code of Conduct for all Directors, Commissioners, and employees.
• Regular meetings of the Board of Commissioners and Board of Directors.
• Satisfactory assessment of the Independent Audit Committee's performance.

Climate Goals & Targets

Environmental Challenges

• Decline in national cigarette sales volume by 9.0% due to consecutive high excise duty increases since 2020 and stagnant purchasing power.
• Intense competition in a contracting market.
• Weaker household consumption.
• Impact of El Nino on agricultural production and food prices.

Mitigation Strategies

• Progressive price increases to protect the Company’s financial condition.
• Maintaining a wide range of brands and secure distribution.
• Efficient operations through IT automation.
• Use of sustainable alternatives, including biomass as fuel.

Supply Chain Management

Responsible Procurement

• Maintaining relationships with suppliers, including tobacco and clove farmers.

Climate-Related Risks & Opportunities

Physical Risks

• El Nino impacting agricultural production.

Transition Risks

• Changes in regulation of advertising.

Reporting Standards

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

Awards & Recognition

• Certificate of Appreciation from the Governor of East Java