PT Bakrie & Brothers Tbk
Climate Impact & Sustainability Data (2015, 2017, 2019, 2021)
Reporting Period: 2015
Environmental Metrics
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
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
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
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)