Climate Change Data

PT Bakrie & Brothers Tbk

Climate Impact & Sustainability Data (2015, 2017, 2019, 2021)

Reporting Period: 2015

Environmental Metrics

Total Energy Consumption:874,819,112 KWH (2014); 331,308,311 KWH (2015)

ESG Focus Areas

  • Governance
  • Economy
  • Human Resource
  • Community Development
  • Occupational Health & Safety
  • Environmental Protection

Environmental Achievements

  • Reduction of electricity consumption by 62% compared to the previous year.
  • Water recycling system implemented.
  • Used oil utilization program as alternative fuel.
  • Waste management following 3R principles (Reduce, Reuse, Recycle).

Social Achievements

  • 195 new recruitments.
  • Rp 1.35 billion invested in community development.
  • Various health initiatives (health counseling, blood donation, mass circumcision).
  • Investment in education (internship programs, support for educational facilities).

Governance Achievements

  • Developed a Corporate Governance Charter.
  • Established a Corporate Risk Management Division.
  • Implemented a whistleblowing system with zero violations reported.
  • Established mandatory anti-bribery procedures and controls.

Climate Goals & Targets

Environmental Challenges

  • Sluggish economic conditions in Indonesia impacting financial performance.
  • Managing risks related to procurement, production, transportation, human resources, commercial activities, warehousing, maintenance, and information technology.
Mitigation Strategies
  • Focus on infrastructure and manufacturing to strengthen recurring income and respond to opportunities.
  • Implementation of a comprehensive Enterprise Risk Management framework.
  • Development of mitigation strategies for identified risks.

Supply Chain Management

Responsible Procurement
  • Prioritization of local suppliers and businesses.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (Core option)

Certifications: ISO 9001:2008, ISO 14001:2004, ISO/TS 16949:2009, OHSAS 18001:2007 (various subsidiaries), Green Listing Indonesia Label (PT Bakrie Building Industries)

Sustainable Products & Innovation

  • Versa Board and Versa Wood (PT Bakrie Building Industries), environmentally friendly building materials.

Awards & Recognition

  • Zero Accident Awards (PT Bakrie Autoparts, PT Bakrie Construction, PT Bakrie Pipe Industries)
  • Top Brand Award (PT Bakrie Building Industries)
  • Best Contribution Achievement (PT Bakrie Autoparts)
  • SNI Award (PT Bakrie Pipe Industries)

Reporting Period: 2017

Environmental Metrics

Total Energy Consumption:63,882,248 KWh (2017)

ESG Focus Areas

  • Economic
  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 38% average reduction on electrical energy consumption (or a total 38.6 million kWh through various energy efficiency programs conducted at all operations throughout 2017, compared to 2016).

Social Achievements

  • Various community development programs under the pillars of Cerdas Untuk Negeri, Sehat Untuk Negeri, Peduli Untuk Negeri, Hijau Untuk Negeri, and Kemitraan Untuk Negeri, with a total expenditure of Rp1,068,932,710.
  • Implemented various training and development programs for employees, with a total investment of Rp1,051 billion.

Governance Achievements

  • Received the Top 50 Mid-Market Capitalization Publicly Listed Companies with Best GCG practices based on the ASEAN Corporate Governance Scorecard (ACGS) award, scoring 71.01 points out of 100.
  • Received a score of 73.07 from the Indonesian Institute for Corporate Governance (IICG), qualified for the category “Trusted Company”.

Climate Goals & Targets

Environmental Challenges

  • Environmental issues such as clean water availability, waste management, and climate change.
  • Economic challenges and intense competition.
Mitigation Strategies
  • Implementing water conservation and recycling programs, waste management following the 3R principle, and energy efficiency programs.
  • Implementing effective and efficient operational programs to secure business sustainability.

Supply Chain Management

Responsible Procurement
  • Sustainable partnerships with suppliers, routine supplier performance assessments.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standard: Core Option, ISO 26000

Certifications: ISO 14001:2004 (TÜV Rheinland, TÜV SÜD PSB Pte Ltd, BSI, ANAB, IAF, Bureau Veritas Certification, AJA Registrars), OHSAS 18001:2007 (various certifiers)

Sustainable Products & Innovation

  • Versa Wood (environmentally friendly wood substitute)

Awards & Recognition

  • Indonesia Trusted Companies Award
  • Annual Report Award 2016
  • Golden SNI Award
  • Top 50 Mid-Market Capitalization Public Listed Companies based on ASEAN CG Scorecard 2016
  • CSR award for Partnering in West Java’s Development
  • Top Brand Award

Reporting Period: 2019

Environmental Metrics

Total Energy Consumption:57,292,167 KWH (electricity); 342,323 liters (fuel)
Water Consumption:172,439 m3
Waste Generated:1,584,248 tons (solid); 184,034 m3 (liquid)

ESG Focus Areas

  • Economic Performance
  • Social Development
  • Environmental Preservation
  • Occupational Health and Safety
  • Corporate Governance

Environmental Achievements

  • Obtained PROPER Blue certification for Environmental Management (PT Bakrie Metal Industries)
  • PT Bakrie Pipe Industries received the 2019 Gold SNI Award
  • Implementation of 3R waste management policy (Reduce, Reuse, Recycle)
  • Use of environmentally friendly materials (Versa Wood by PT Bakrie Building Industries)

Social Achievements

  • Increased total number of employees to 3,180
  • Implemented various CSR programs: Peduli Untuk Negeri, Cerdas Untuk Negeri, Sehat Untuk Negeri, Kemitraan Untuk Negeri, Hijau Untuk Negeri
  • Total remuneration of Rp390.77 billion distributed to employees
  • Various training and development programs for employees

Governance Achievements

  • Improved corporate governance practices in line with ISO 26000 and POJK No. 51 / POJK.03 / 2017
  • Implementation of a Whistleblowing System
  • Debt restructuring of Rp11.41 trillion
  • No legal or tax cases involving the company, board, directors, or employees in 2019

Climate Goals & Targets

Environmental Challenges

  • Dynamic business challenges in 2019
  • Decline in sales in the automotive sector (PT Bakrie Autoparts)
Mitigation Strategies
  • Strengthening company's business foundation in manufacturing and infrastructure
  • Debt restructuring
  • Improving company efficiency
  • Implementing various business sustainability programs

Supply Chain Management

Responsible Procurement
  • Involvement of local suppliers
  • Regular review of supplier performance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standard: Core Options, ISO 26000

Certifications: ISO 14001:2015 (various subsidiaries), ISO 45001:2018 (PT Bakrie Pipe Industries), PROPER Blue (PT Bakrie Metal Industries)

UN Sustainable Development Goals

  • Goal 8: Decent Work and Economic Growth
  • Goal 9: Industry, Innovation and Infrastructure
  • Goal 11: Sustainable Cities and Communities
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action

Various initiatives contribute to these goals through economic development, infrastructure projects, environmental preservation, and community development programs.

Sustainable Products & Innovation

  • Versa Wood (PT Bakrie Building Industries)
  • Electric buses (PT Bakrie Autoparts)

Awards & Recognition

  • Top Brand Award 2019 (PT Bakrie Building Industries)
  • Trusted Company Based On Corporate Governance Perception Index (PT Bakrie & Brothers Tbk, PT Bakrie Pipe Industries)
  • Achievement quality 2018 (PT Bakrie Autoparts)
  • Kaizen Festival 2019 awards (PT Bakrie Autoparts)
  • Gold SNI Award 2019 (PT Bakrie Pipe Industries)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:7,772,261 Ton of CO2 Eq
Total Energy Consumption:173,234 GJ
Water Consumption:172,439 M3
Waste Generated:10.2 tons (Zinc, reused)
Carbon Intensity:0.073 GJ/ Juta Rp and 3.26 Ton CO2 Eq,/ Juta Rp

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 10.2 ton Zinc waste was reused
  • Development of renewable energy power plant with capacity of 195 MW

Social Achievements

  • CSR activities reached more than 300 thousand beneficiaries with assistance worth Rp 91.56 billion
  • 1,573 employees participated in training programs

Governance Achievements

  • Implementation of the GRC (Governance, Risk and Compliance) Series
  • GCG implementation in accordance with OJK Regulation No. 21/POJK.04/2015 and ASEAN Corporate Governance Scorecard

Climate Goals & Targets

Environmental Challenges

  • Impact of the COVID-19 pandemic on the economy
  • Delayed long-term contracts awarded to BNBR subsidiaries
  • Decreasing demand for products of the Company’s manufacturing subsidiaries
Mitigation Strategies
  • Adjustments and efficiency made by management
  • Debt restructuring efforts
  • Agile in honing the strategy to increase sales and seeking breakthroughs in new products and businesses
  • Optimizing risk management practices
  • Increasing focus on business development considering ESG aspects
  • Increasing collection effort for trade receivables

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Development of renewable energy

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Kantor Akuntan Publik Y. Santosa & Rekan (financial performance only)

UN Sustainable Development Goals

  • SDG 9
  • SDG 11

Participation in national programs related to infrastructure development and the development of industries for the future

Sustainable Products & Innovation

  • Electric buses
  • Solar power plants
  • Prefab houses
  • 3D printed houses

Awards & Recognition

  • Bakrie Autoparts Kaizen Festival 2021 (Silver)
  • Appreciation of 3rd HICO 2021
  • 11th Isuzu Innovation Award 2021
  • YWK Supplier Convention November 2021 (3rd Expected Winner)
  • Award for COVID-19 Preventif Program (Silver)
  • Appreciation of Quality Achievement in 2021 from Hino Indonesia
  • Appreciation for Participation in Accelerating Covid-19 Vaccination
  • Award for Internship Cooperation
  • SNI Awards 2021 (Silver)
  • CSR Partner Award (West Java Provincial Government)