Climate Change Data

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