Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Social

Environmental Achievements

• Achieved PROPER Emas for Pupuk Kalimantan Timur, PROPER Hijau for Pupuk Kujang, Petrokimia Gresik, Pupuk Sriwidjaja Palembang, and PROPER Biru for Pupuk Iskandar Muda.
• Reduced energy intensity by 17,446,752 GJ.
• Reduced greenhouse gas emissions by 23% compared to the previous year.

Social Achievements

• Provided stimulus for SMEs affected by the COVID-19 pandemic.
• Provided loan relaxation for partnership recipients.
• Distributed CSR funds of Rp51.1 billion and Community Development Program funds of Rp43.48 billion (32% for poverty alleviation).

Governance Achievements

• Implemented Integrated Risk Management (MRT) based on ISO 31000.
• Centralized marketing, procurement, and HR functions.
• Received an AAA (idn) rating with a stable outlook from Fitch Ratings.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting construction and trade segments.
• Decrease in sales prices of urea and ammonia.
• Changes in subsidized fertilizer allocation.
• High gas prices and limited gas supply.
• Implementation of Permentan No. 28 Tahun 2020 impacting subsidy income.

Mitigation Strategies

• Diversified funding sources through loans and bonds issuance.
• Implemented a two-shift policy (later changed to three-shift with stricter protocols) to limit employee interaction.
• Implemented comprehensive policies and strategies to protect employees during the pandemic.
• Implemented strategic initiatives in the financial sector to maintain profitability.
• Centralized functions to improve competitiveness.

Supply Chain Management

Responsible Procurement

• Prioritization of local suppliers (87% of total procurement value).

Climate-Related Risks & Opportunities

Physical Risks

• Changes in harvest time
• Narrowing of agricultural land
• Flooding disrupting distribution

Transition Risks

• Changes in government policies

Opportunities

• Development of biofertilizers
• Development of retail and agrosolution businesses

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001:2015, ISO 37001:2016, ISO 14001:2015, ISO 50001:2011, SIH 20122:2015, SIH 20122.1:2018, Halal Certificate

Sustainable Products & Innovation

• Biofertilizers
• Organic fertilizers
• Petrocas fertilizer
• Nitralite fertilizer
• Agricultural lime

Awards & Recognition

• PROPER Emas, PROPER Hijau, PROPER Biru
• AAA(idn) rating from Fitch Ratings
• Various other awards (Indonesia Digital Innovation Award, Marketeers Award, RRI Iconomics BUMN Award, BUMN Marketing & Branding Award, Anugerah Humas Indonesia, Asia Sustainability Reporting Rating, Corporate Governance Perception Index, Indonesia Best BUMN Award, Temu Karya Mutu & Produktivitas Nasional)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Good Corporate Governance (GCG)

Environmental Achievements

• Achieved Gold PROPER for Pupuk Kalimantan Timur, Petrokimia Gresik, Pupuk Kujang, Pupuk Sriwidjaja Palembang, and Green PROPER for Pupuk Iskandar Muda, exceeding regulatory requirements.
• Reduced emissions by 1,912,198 tons of CO2eq
• Reduced waste by 393,674 tons
• Reduced effluent by 321,962 megaliters
• Mangrove planting (3 ha), coral reef planting (8,356 m²), sambar deer farming (2 ha), biodiversity park development (47.7 ha).

Social Achievements

• Disbursed Rp276.229 billion for CSR programs, implemented in 812 programs.
• Disbursed Rp65.315 billion to 2,277 fostered partners through PUMK.
• Implemented the Makmur Agro Solution program to improve farmer productivity and welfare.
• Achieved 91.05 environmental satisfaction score (very satisfied).

Governance Achievements

• Implemented Integrated Risk Management (IRM) in accordance with Regulation of the Minister of SOEs No. PER-2/MBU/03/2023 and SNI ISO 31000:2018.
• Launched a Multi-Company Whistleblowing System (WBS) in collaboration with KPK and LPSK.
• Implemented strict anti-corruption policies, resulting in no proven corruption incidents.
• Achieved 100% compliance rate in LHKPN reporting.

Climate Goals & Targets

Environmental Challenges

• Higher production costs for sustainable fertilizers compared to chemical fertilizers.
• Technical challenges in developing effective and efficient sustainable fertilizers.
• Waste and emission management in sustainable fertilizer production.
• Climate change impacts on raw material availability, planting patterns, soil quality, nutrient leaching, and harvest timing.
• Land narrowing due to urban expansion.
• Flooding and drought affecting distribution and soil fertility.

Mitigation Strategies

• Innovation in developing efficient and eco-friendly fertilizers (organic, biodecomposers, biofertilizers, advanced products, precision farming).
• Expanding marketing in the plantation sector and increasing exports.
• Designing buffer stock systems and adding modes of fertilizer shipment.
• Adjusting distribution to avoid stockpiling.
• Implementing sustainability strategies (energy, water, resource efficiency, circular economy, waste management, biodiversity management).

Supply Chain Management

Responsible Procurement

• Prioritizing local suppliers (81.87% of procurement value)
• Using PaDi UMKM for procurement of goods and services.
• Meeting TKDN requirements (67.37%)

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns affecting agricultural production.
• Increased rainfall intensity or flooding disrupting distribution.
• Drought affecting soil fertility.

Transition Risks

• Changes in raw material availability.
• Changes in planting patterns and fertilizer needs.
• Land narrowing due to urban expansion.

Opportunities

• Developing more efficient and eco-friendly fertilizers.
• Expanding marketing in the plantation sector and increasing exports.

Reporting Standards

Frameworks Used: GRI Standards 2021, SEOJK No. 16/SEOJK.04/2021

Certifications: PROPER Emas, PROPER Hijau, SNI ISO 9001:2015, SNI ISO 14001:2015, SNI ISO 37001:2016, ISO 20000-1:2018, ISO 45001:2018, ISO 50001:2011, SIH 20122:2015, SIH 20122.1:2018

Third-party Assurance: Sucofindo

Sustainable Products & Innovation

• Organic fertilizers
• Biofertilizers
• Biodecomposers
• Circular economy products
• Advanced products
• Precision farming systems

Awards & Recognition

• Gold Stevie® Award (Innovation in Technology Management)
• Gold Stevie® Award (Innovation in Education or Training apps)
• Gold Stevie® Award (Innovation in Shopping or E-commerce apps)
• Gold Stevie® Award (Innovative Management In Manufacturing Industries)
• Gold Stevie® Award (Innovation in Product Placement)
• Silver Stevie® Award (Respectful Workplace Policy Program)
• Silver Stevie® Award (Virtual walk, run and Cycling Program)
• Bronze Stevie® Award (Wastra Nusantara Conservation Program)
• Platinum Award (Pillar of Economy Category)
• Gold Award (Pillar of Social Category)
• Gold Award (Pillar of Environment Category)
• Governance Champion (KaDaDa - Corporate Sustainable Awards)
• Platinum rating (Asia Sustainability Reporting Rating)
• Good Corporate Governance Award 2023
• BUMN Branding & Marketing Award 2023