PT Toba Bara Sejahtra Tbk
Climate Impact & Sustainability Data (2015, 2016, 2018)
Reporting Period: 2015
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Achieved Gold rating in PROPER (Company Performance Rating Assessment Program) by the Governor of East Kalimantan for ABN. IM and TMU obtained Blue ratings.
- Planted more than 119,900 trees.
- ABN met ISO14001:2004 standards and TMU met ISO14001:2004 + Cor 1:2009 Certification standards.
Social Achievements
- Employed approximately 65.0% local workforce from Sangasanga, Loa Janan, and Muara Jawa districts.
- Implemented various community empowerment programs including KUB development, digital printing kiosk development, integrated farm businesses, and goat raising programs.
- Provided educational assistance, scholarships, and health services to local communities.
Governance Achievements
- Implemented good corporate governance practices in line with Indonesian regulations and best practices.
- Established an Audit Committee with independent members.
- Held Annual General Meeting of Shareholders (AGMS) to make decisions on financial matters and governance.
Climate Goals & Targets
Long-term Goals:
- To be one of the best-managed world-class mining companies in Indonesia with a focus on high growth.
Environmental Challenges
- Weakening global economy and lower coal demand leading to decreased global coal prices.
- New government regulations for the coal industry (advance royalty payments, income tax, L/C usage).
- Pressure from developed countries to use cleaner emissions and alternative energy sources.
Mitigation Strategies
- Developed flexible business strategies to anticipate fluctuating coal industry conditions.
- Focused on cost management initiatives and better mine plan execution to maintain margins.
- Optimized pricing strategies and diversified customer base (increased end-user sales).
- Implemented an integrated mine plan and infrastructure sharing among subsidiaries.
- Developed downstream business and integrated energy sector plans.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Weather risk affecting mining activities
Transition Risks
- Pressure to use cleaner emissions and alternative energy sources
Awards & Recognition
- Finance Asia Award for Committed to Paying Good Dividends
- Zero Accident Award (ABN)
- KUKAR CSR Award (ABN)
- PROPER Gold Rating (ABN)
- PROPER Blue Rating (IM, TMU)
Reporting Period: 2016
Environmental Metrics
ESG Focus Areas
- Environmental Preservation
- Corporate Social Responsibility
- Occupational Safety and Health (K3)
- Good Corporate Governance (GCG)
Environmental Achievements
- ABN received the Gold PROPER Environmental Award.
- IM and TMU received the Green PROPER Environmental Award.
- Corporate Biodiversity Responsibility Achievement (CBRA) Award for commitment to natural resource conservation at ABN.
- Government award for 1,458,733 hours of work with no lost-time injuries.
Social Achievements
- Community development programs to increase the welfare of communities around the mines (e.g., prioritizing local workforce).
- Health and safety initiatives (e.g., safety campaigns, training, emergency response simulations).
Governance Achievements
- Implementation of Good Corporate Governance (GCG) practices in accordance with Indonesian regulations.
- Establishment of governance organs with defined responsibilities (Board of Commissioners, Board of Directors, Audit Committee, Internal Audit Unit, Corporate Secretary).
- Regular management meetings to ensure transparency and facilitate problem-solving.
Climate Goals & Targets
Environmental Challenges
- Dynamic and fluctuating economic conditions.
- Volatile global coal prices.
- Oversupply of coal in China (temporarily resolved by production control measures).
Mitigation Strategies
- Cost efficiency programs (joint mine plan, infrastructure sharing).
- Selective and intensive customer management to secure market share.
- Diversification of export destinations and customer base (end-users and traders).
- Business diversification into the electricity sector (Power Purchase Agreement with PLN).
Supply Chain Management
Climate-Related Risks & Opportunities
Awards & Recognition
- Gold PROPER Environmental Award (ABN)
- Green PROPER Environmental Award (IM, TMU)
- Corporate Biodiversity Responsibility Achievement (CBRA) Award
- Government award for 1,458,733 hours of work with no lost-time injuries.
Reporting Period: 2018
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Three mining subsidiaries (ABN, IM, TMU) received PROPER (Program Penilaian Peringkat Kinerja Perusahaan dalam Pengelolaan Lingkungan Hidup) Green ranking from East Kalimantan Provincial Government.
- ABN received Zero LTI award from East Kalimantan Governor and Main Category award for OHS Mining Performance from Ministry of Energy and Mineral Resources.
- IM received Zero Accident Award from Ministry of Manpower.
Social Achievements
- Over 50% of the Company’s workforce in 2018 was sourced locally.
- CSR programs focused on education, health, and economic empowerment of local communities.
- Community engagement in operational activities.
Governance Achievements
- Good Corporate Governance (GCG) practices implemented.
- Regular evaluation and revision of GCG policies, guidelines, and procedures.
- Improvement of standard operating procedures (SOP) and occupational health and safety (K3).
Climate Goals & Targets
Short-term Goals:
- Completion of Sulbagut-1 and Sulut-3 power plant projects (2020 and 2021 respectively).
Environmental Challenges
- Completion of power plant projects on time and within budget.
- Maintaining strong cash flow from coal portfolio to fund power sector investments.
- Coal price volatility.
- Domestic Market Obligation (DMO) requirements.
Mitigation Strategies
- Consistent cost management and operational efficiencies.
- Diversification into the power sector.
- Acquisition of PT Batu Hitam Perkasa (BHP) for stable income and competency building in large-scale power plant management.
Supply Chain Management
Climate-Related Risks & Opportunities
Awards & Recognition
- Top 50 of Mid Market Capitalization Public Listed Companies from IICD
- Energy & Resources In-House Team of the Year from ALB
- Top 30 Indonesian High-Performing Listed Company from Forbes Indonesia