Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Social Performance
• Environmental Performance
• Good Corporate Governance

Environmental Achievements

• Reduced energy consumption by 32% (from 5,772 GJ to 3,897 GJ)
• Reduced water consumption by 27% (from 6,722 m3 to 4,937 m3)
• Reduced CO2 emissions by 10% (from 601 tCO2 to 541 tCO2)
• Reduced effluent by 12.6% (from 635 m3 to 555 m3)
• Implemented a plastic bottle waste sorting and management program at the head office

Social Achievements

• Maintained zero fatalities and zero lost-time incidents in occupational safety
• Increased CSR spending to Rp 95 million, benefiting 21 people/institutions
• Implemented a new scholarship policy for children of employees
• Maintained 100% return-to-work rate for employees after maternity leave
• Received EDGE certification for diversity and gender equality in the workplace
• Developed a manual on the prevention and handling of sexual harassment/violence and intimidation in the workplace

Governance Achievements

• Consistently improved GCG implementation to achieve the company's vision, mission, and values
• Maintained compliance with prevailing laws and regulations
• Held regular meetings of the Board of Commissioners, Board of Directors, and Audit Committee

Climate Goals & Targets

Environmental Challenges

• Limited working capital and increased steel prices in late 2021 and early 2022
• Global steel crisis due to production stoppages and logistics disruptions
• Russia-Ukraine war impacting European steel supply
• Negative impact of government policies on alloy steel import system
• Decreased demand for medical oxygen due to reduced Covid-19 cases

Mitigation Strategies

• Obtained additional working capital
• Empowered the Manufacturing Division by utilizing the induction melting plant
• Increased business portfolio in Gases Division through market penetration and portfolio enlargement
• Improved financial structure
• Maximized existing stocks and intensified communication with suppliers

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, POJK 51/POJK.03/2017, SEOJK 16/SEOJK.04/2021

Certifications: ISO 9001:2015 (Industrial Gases and Supply Chain), SMK3 criterion 64

UN Sustainable Development Goals

• Goal 12: Responsible Consumption and Production

Plastic bottle waste sorting and management program.

Awards & Recognition

• EDGE certification

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Social Performance
• Environmental Performance
• Governance

Environmental Achievements

• Commitment to achieving Net Zero Emission from operational activities by 2030
• Formation of ESG Group to integrate ESG principles into operations

Social Achievements

• Active participation in Sustainable Development Goals programs (Good Health and Well Being, Affordable and Clean Energy, Responsible Production and Consumption, Partnership for the Goals, Gender Equality, Quality of Education and Decent Work and Economic Growth)
• Employee training programs focusing on skills, abilities, and attitudes
• Focus on employee regeneration and succession

Governance Achievements

• Implementation of Good Corporate Governance (GCG) principles (Transparency, Accountability, Responsibility, Independence, and Fairness)
• Formation of Audit Committee to oversee financial reporting, risk management, and internal control
• Planned formation of Nomination and Remuneration Committee in 2024

Climate Goals & Targets

Environmental Challenges

• Global supply imbalances impacting inflation
• Geopolitical issues affecting trade relations
• Supply chain disruptions due to Government Regulation No. 28 of 2021 (later revised by No. 46 of 2023) impacting alloy steel imports
• High global interest rates
• Potential for Indonesian inflation increase and reduced purchasing power
• Potential for Rupiah weakening against the US dollar

Mitigation Strategies

• Focus on improving supply chain and material procurement
• Development of products not subject to import restrictions (stainless steel, TEPS)
• Operational cost efficiencies
• Strengthening working capital
• Building a more solid team
• Improving business processes
• Strengthening distributor networks
• Increasing production volume
• Development of new products (Microbulk Tanks, Iso Tank T11)
• Improving Quality, Service, and Delivery

Supply Chain Management

Responsible Procurement

• Standard procedures for assessment, audit, and coaching of suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001:2015 (Gases Division, Steel Division), Halal Certificate (Gases Division)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 12: Responsible Consumption and Production
• Goal 17: Partnerships for the Goals
• Goal 5: Gender Equality

Initiatives focus on these SDGs through various programs and policies