Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Community Development
• Economic Contribution
• Environmental Preservation
• Good Corporate Governance (GCG)

Environmental Achievements

• Obtained ISO 14001:2004 recertification for Environment.
• Obtained Green PROPERDA certificate from East Kalimantan Governor.
• Reduced excavator hang time by 7.6 seconds and truck queue time to 64.2 seconds, resulting in fuel savings.
• Significant decrease in carbon emissions from operational vehicles and equipment.
• Reduced indirect emissions from flights by limiting business travel to Balikpapan.

Social Achievements

• Implemented CINTA (Continuous Improvement and Target Achievement) program, receiving over 150 improvement ideas.
• Implemented The Petrosea Way program to enhance productivity and unit utilization.
• Shifted social contribution strategy from donations to empowerment.
• Prioritized local employment in recruitment process.
• Developed various community development programs focusing on education, economic empowerment, health, and disaster mitigation.

Governance Achievements

• Implemented good corporate governance (GCG) principles.
• Maintained a strong anti-corruption stance through Code of Conduct.
• Held Annual General Meeting of Shareholders (AGMS) and Extraordinary General Meeting of Shareholders (EGMS).
• Established various committees (Audit, Good Corporate Governance, Risk and Investment Management, Human Capital).

Climate Goals & Targets

Environmental Challenges

• Decrease in global coal price impacting financial situation.
• Availability and readiness of human resources for empowerment programs.
• Significant increase in hazardous oil waste from operational vehicles and equipment.

Mitigation Strategies

• Implemented efficient operational approach and business diversification.
• Implemented several initiatives and programs like The Petrosea Way and CINTA.
• Implemented waste sorting program for recyclable materials.
• Improved equipment readiness through Supply Chain Transformation (SCT) project.
• Implemented internal assessment process to identify and address key management system issues.

Supply Chain Management

Responsible Procurement

• Providing opportunities for local businesses to supply goods and services.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 3.1

Certifications: ISO 9001, OHSAS 18001:2007, ISO 14001:2004

Awards & Recognition

• Zero Accident Awards from Ministry of Manpower and Transmigration
• 2 Million Man Hours LTI Free Award
• 10 Million Man Hours LTI Free Award
• Green PROPERDA Award
• PRATAMA Award for Mine Safety Management

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved 100% of the Environment Performance Indicator (EPI) target (set at 90%).
• POSB received the East Kalimantan PROPERDA Green Category.
• Substantial reduction of emission and energy consumption.
• Reduction of surface water resources consumption and eliminating the usage of underground water resources through intensification of recycle water usage.

Social Achievements

• Implemented training programs with a total of 60,512 training hours and 2,433 employees participating.
• Increased the proportion of local employees.
• Realized all human resource development programs.
• Supported community development programs in education, health, and economic empowerment.

Governance Achievements

• Achieved 41 million man-hours Lost Time Injury (LTI) free.
• Maintained OHSAS 18001 certification with zero major findings.
• Improved the quality of anti-corruption policies and practices through Internal Control Reviews (ICR).

Climate Goals & Targets

Environmental Challenges

• The year 2016 was a challenging year for all business players in the energy and mining sectors, affecting operational cost management.

Mitigation Strategies

• Focused on improvements in operational cost management and diversification of the Company’s business strategy.

Supply Chain Management

Supplier Audits: 50 local suppliers evaluated through vendor performance evaluation.

Responsible Procurement

• Supported local suppliers; implemented collaborative strategic sourcing and category management strategy.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001:2004, OHSAS 18001:2007, ISO 9001:2008

Awards & Recognition

• Various awards for HIV/AIDS prevention, zero accidents, and community engagement.

Environmental Metrics

ESG Focus Areas

• Environment
• Economic Empowerment
• Health
• Education
• Occupational Health & Safety
• Good Corporate Governance

Environmental Achievements

• No Major Environmental Incident (MEI) during 2017.
• Reduced groundwater consumption and increased rainwater and recycled water consumption.
• Saved 1,865,712 liters of truck fuel (US$ 932,856) and reduced truck operational cost by US$ 1,146,165 through Fleet Management System implementation.
• Realized a reforestation area of 6,766 m² around the workshop at the KJA project.
• Implemented a paperless program to lower paper usage.

Social Achievements

• Allocated Rp. 518,515,000 for various CSR programs.
• Developed Joint Business Group (KUBE) Bottom Plug and Crab Tourism Village for economic empowerment.
• Provided post-disaster relief.
• Recruited 1,890 employees (1,833 male, 57 female).
• Realized various training activities with 3,077 participants and 87,058 total training hours (average 28 hours/participant).
• Implemented a talent management program.
• Implemented a retirement preparation plan.

Governance Achievements

• Created and socialized Communication Policy.
• Ensured consistent implementation of GCG principles, legal basis, and policies.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Regular vendor evaluation

Responsible Procurement

• Specific competencies, sufficient capital, production and supporting facilities required for suppliers of capital goods; General requirements in line with regulations for supporting goods and services; Local vendors used for daily items.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI-G4 Core

Certifications: ISO 14001:2004, OHSAS 18001:2007, ISO 9001:2008, SMK3

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 13: Climate Action
• Goal 15: Life on Land

Various environmental programs; CSR programs in education, health, and economic empowerment.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards for zero accidents, HIV/AIDS prevention, environmental management, mine safety management; Kariangau BISA environmental competition; Balikpapan Fire Rescue Challenge.

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Total CSR investment in Environment reached Rp 78,740,000
• More than 400 seeds were planted for reforestation program
• CSR in Environment helped the reforestation of 11,100 hectares in three project locations
• Implementation of paperless programs to reduce paper usage.
• Recycling water using water treatment plants to meet clean water demand
• Increase the use of rainwater

Social Achievements

• Number of employees in 2018 reached 5,198 people, from 3,779 people in 2017
• Employee competency development cost in 2018 reached $580,056, from US$217,454 in 2017
• Recruitment of new employees in 2018 reached 2,404 people, an increase of 78.62% from the previous year
• In 2018, the number of local vendors reached 190 at all operational locations
• CSR impacts: In Education reached 139 schools and institutions with 16,674 students; In Health assisted 32,487 residents at six project locations; In Economic Empowerment assisted 265 residents at four project locations

Governance Achievements

• Updated charters in accordance with applicable regulations, such as the Audit Committee, Risk & Compliance Charter, and Human Capital Charter, as well as the standard operational procedure for the Whistleblowing System.
• No cases of corruption or gratification found in the Company in 2018.

Climate Goals & Targets

Environmental Challenges

• Risks associated with the global macro environment and industry in which the Company operates and to include restructuring activities, competitive threats and public policies
• Risks arising from systems, processes, people and external events that affect operations of the Company
• Risks arising from legal proceedings and compliance with integrity policies and procedures

Mitigation Strategies

• Implementation of a complete violation reporting system with the application of strict sanctions for any indications and acts of corruption and abuse of authority
• Implementation of strict, professional and responsible internal supervision
• Availability and application of accountable codes of conduct

Supply Chain Management

Responsible Procurement

• PTP-SCM-PR-G-0002 Supply Chain Management Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core)

Certifications: ISO 14001:2015, ISO 9001:2015, OHSAS 18001:2007, SMK3

Awards & Recognition

• Various awards for quality, OHS, environmental performance, and zero accidents.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Planted 1000 trees as part of the company’s reforestation program
• Implemented Marine Fleet & Environment Protection Policy to identify potential environmental hazards
• ISO 14001:2015 certification for Environmental Management System

Social Achievements

• Total CSR budget for social responsibility activities amounted to more than Rp 4.8 billion
• Recruited 58% local employees and only 0.3% expatriates to support diversity and balanced collaboration
• Number of soft skill training to increase employee competencies reached 735 activities, a 545% increase from 114 activities in 2018
• Launched SHEPRO, a digital application to enhance the ability of SHE reporting and analyzing

Governance Achievements

• ISO 37001:2016 Anti-Bribery Management System certification
• Continuous improvement of Petrosea Quality Management System (PQMS), including the implementation of the Online Audit Action Request Monitoring and Online Management System Change & Approval
• Implementation of the Whistleblowing System, Gift & Entertainment Procedure and Sponsorship & Donation Procedure

Climate Goals & Targets

Environmental Challenges

• Volatility of global thermal coal prices and weakening economy in 2019
• Risks related to the global macro environment, the line of business, restructuring activities, competition threats and public policy
• Potential threat from cyberattacks and data security issues due to digitalization

Mitigation Strategies

• Increasing productivity, optimizing asset utilization, and developing continuous improvement initiatives
• Implementing Project Minerva (Mining Engineering and Construction Advanced Analytics) for digital transformation
• Strengthening information system security and raising awareness among internal and external parties
• Consistently improving EBITDA gain and net profit, maintaining a strong balance sheet, and conducting comprehensive financial analysis

Supply Chain Management

Responsible Procurement

• PTP-SCM-PR-G-0002 Supply Chain Management Policy; prioritization of local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core

Certifications: ISO 14001:2015, ISO 9001:2015, OHSAS 45001:2015, ISO 37001:2016, ISO 45001:2018, SMK3

Awards & Recognition

• Global Lighthouse Network (World Economic Forum)
• Various awards from Ministry of Manpower and regional governments for safety performance and HIV/AIDS prevention programs

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced direct & indirect greenhouse gas emission of 248,987.84 Tons CO2 in 2020 from 369,235.37 Tons CO2 in 2019.
• Reduced total water consumption (including groundwater, surface water & rainwater) to 109,110.00 m3 in 2020 from 279,322.00 m3 in 2019.
• Reduced total waste (including hazardous & toxic waste and non-hazardous waste) to 2,026.50 tons in 2020 from 4,585.85 tons in 2019.
• Planted 2,000 mangrove seedlings at PSF.
• Achieved zero major environmental incidents.

Social Achievements

• Inaugurated the “Indika Solidarity” PCR laboratory in Balikpapan.
• Developed a training program to help teachers deliver teaching materials effectively online.
• Empowered surrounding communities in processing waste into a source of economic income.
• Conducted its “Mangrove Sustainability Program” by planting 2,000 mangrove seedlings.
• Employs 3,681 employees with 2.42% employee turnover rate.
• Employee competence enhancement costs of US$316,035.

Governance Achievements

• Implementation of ISO 37001:2016 Anti-Bribery Management System.
• Implemented a GCG roadmap which has reached stage 4, namely Good Sustainability Citizenship.
• Supports the diversity of its Management composition, in which 33.3% from the total members of the Board of Directors are female.
• Implementation of ISO 9001:2015 Quality Management System.
• Implementation of ISO 45001:2018 Occupational Health & Safety Management System.
• Achieved 28 million manhours lost time injury free.

Climate Goals & Targets

Environmental Challenges

• Various business disruptions as a direct and indirect impact from the global COVID-19 pandemic.

Mitigation Strategies

• Continued to transform, innovate and strengthen its resilience.
• Implemented various strict regulations and health protocols to assist the Indonesian government and surrounding communities in preventing the spread of the COVID-19 virus.
• Established independent isolation and self-quarantine facilities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• SUMO Project

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 37001:2016, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 50 Best of the Best Companies 2020
• IDC DX AWARDS 2020
• Various awards for zero accidents and other achievements

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Reduced GHG emissions to 329,115 tCO2e in 2021 from 370,262 tCO2e in 2019 (increase from 2020 due to increased operational areas and activities).
• Reduced waste to 3,240 tons in 2021 from 4,585 tons in 2019.
• Planted 2,500 mangrove seedlings in 2021.
• Implemented B30 biodiesel fuel for production equipment.

Social Achievements

• Established PT Kinarya Bangun Sesama, a social enterprise.
• Achieved 13,066,012 man-hours without lost-time injuries in 2021.
• Conducted 33,616 COVID-19 tests through Indika Solidarity Laboratorium.
• Provided training to 2,850 employees (126,173 training hours).

Governance Achievements

• Established a Sustainability Committee.
• Implemented an Anti-Bribery Management System (ISO 37001:2016 certified).

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (changes in rainfall patterns).
• Health and safety risks in mining and EPC operations.
• Potential negative impacts on surrounding communities.
• Legal and compliance risks.
• Bribery risks.

Mitigation Strategies

• Increased operational efficiency through digital technology (Project Minerva).
• Exploration of renewable energy sources.
• Strong OHS management system and digital applications (SHEPRO).
• Careful stakeholder engagement and community empowerment programs.
• Regular updates to certifications, licenses, and permits.
• Implementation of ISO 37001 Anti-Bribery Management System and a Whistleblowing System.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG assessment of suppliers
• Social criteria for new supplier selection
• Socialization of ABMS regulations to suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Changes in rainfall patterns

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: core options, POJK No. 51/POJK.03/2017

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 37001:2016

Third-party Assurance: SR Asia Indonesia

UN Sustainable Development Goals

• Not disclosed

Petrosea supports 9 out of 17 SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• D’Frontrunner Awards 2021 (Digital Mining)
• ESG Disclosure Awards 2021 (CCC Disclosure Rating Commitment)
• Treasury Exclusive Customer Award 2021 (Best Corporate Derivative Contributor)
• Mitra Bakti Husada Award 2021 (OHS and Health Protocols)
• UTAMA award for standardization management and mineral & coal mining services
• COVID-19 Prevention & Countermeasure Program awards (Gold and Platinum)
• Zero Accident awards
• WSO Indonesia Safety Culture Awards 2021 (Wisca Silver – 4 Star)

Environmental Metrics

ESG Focus Areas

• Occupational Health & Safety (OHS)
• Energy & Greenhouse Gas Emission Management
• Water Management
• Waste Management
• Economic Performance
• Human Capital Management
• Local Communities
• Technology & Innovation
• Supply Chain Management
• Diversity & Inclusivity
• Business Ethics

Environmental Achievements

• Reduced carbon emissions by 3,842 ton CO2eq in the KJA Project.
• Use of alternative water by 95%, preventing water withdrawal from freshwater sources.
• 30% waste diverted from landfills through reducing, reusing, and recycling practices.

Social Achievements

• Overall 11,340 beneficiaries received training, including business, entrepreneurial and vocational training which enabled them to seek alternative or additional income.
• Composition of women at the senior management level of the Company in 2022 has reached 16.13%.
• 13,136,782 manhours of Lost Time Injury (LTI) Free.

Governance Achievements

• No corruption cases with material impacts on the Company throughout 2022.
• Zero non-compliance in environmental, economic and social aspects.
• Implementation of ISO 37001 for Anti Bribery Management System.

Climate Goals & Targets

Environmental Challenges

• High and uncertain rainfall that could affect operations.
• Supply chain disruptions due to various factors (demand, supply, general disruptions).
• Climate change impacts on operations (potential profit loss of US$2.65 million).

Mitigation Strategies

• Improving operational efficiency through technology and digitalization (Project Minerva, B30 fuel).
• Exploring renewable energy sources.
• Implementing robust management systems and programs to meet government requirements.
• Using SHEPRO for improved reporting and analysis.
• Communication and collaboration with clients and suppliers.
• Implementing sustainable procurement principles.

Supply Chain Management

Supplier Audits: 881 suppliers; 100% of new suppliers screened using social criteria.

Responsible Procurement

• Lean procurement process, sustainable procurement principles, vendor assessment and performance evaluation through SAP Ariba.

Climate-Related Risks & Opportunities

Physical Risks

• High and uncertain rainfall affecting operations.

Transition Risks

• Not disclosed

Opportunities

• Renewable energy adoption, electric vehicle initiatives.

Reporting Standards

Frameworks Used: GRI Standards, POJK No. 51/POJK.03/2017

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 37001:2016, SMK3

Third-party Assurance: SR Asia Indonesia

UN Sustainable Development Goals

• SDG 3, 4, 5, 6, 12, 13, 16

Petrosea's initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Responsibility of the Board (13th IICD Corporate Governance Award 2022)
• Top 50 Mid Capitalization Public Listed Company (13th IICD Corporate Governance Award 2022)
• PROPER Daerah (PROPERDA)
• PROPER Nasional (PROPERNAS)
• ASEAN OSHNET Excellence Award 2022
• Special Award for Sustainability (IDC Future Enterprise Awards Asia Pacific 2022)
• Indonesia Safety Excellence Award (ISEA) 2022 (four awards)
• ESG Disclosure Awards 2022 (Management B Level)
• IDC Future Enterprise Awards Indonesia 2022 (Best in Future of Operations)
• Bisnis Indonesia Awards 2022 (Oil, Gas & Coal Support)
• COVID-19 Prevention & Countermeasure Program (PLATINUM)
• HIV/AIDS Prevention and Countermeasure Program (PLATINUM)
• Zero Accident Award
• Corporate Emission Transparency Awards 2022 (Green and Gold degrees)

Environmental Metrics

ESG Focus Areas

• Managing Impacts
• Prioritizing People
• Operating Ethically

Environmental Achievements

• Reduced carbon emissions by 5,022 TonCO2e at the KJA project through operational excellence initiatives.
• Reused 84% of water for operational activities.
• Reused 32% of B3 and non-B3 waste.

Social Achievements

• Implemented Graduate Development Program (GDP), recruiting 35 employees.
• Conducted 1193 OHS training activities.
• 45 CSR programs benefiting 18,549 people.

Governance Achievements

• Achieved ISO 37001 certification for Anti-Bribery Management System.
• 100% of staff employees completed anti-bribery and anti-corruption training.
• No significant corruption or bribery cases.

Climate Goals & Targets

Environmental Challenges

• Increase in scope 1 and 2 emissions by 2.67% compared to the previous year.
• Uncertain global economic outlook due to geopolitical factors.
• Access to financing, technology adoption, and diverse understanding of sustainability practices.

Mitigation Strategies

• Implementing operational excellence and continuous improvement.
• Leveraging digital technologies (Minerva Digital Platform) to increase efficiency.
• Diversifying project portfolio to other mineral sectors (nickel).
• Improving human capital competencies.
• Strengthening collaboration and communication with stakeholders.

Supply Chain Management

Supplier Audits: All suppliers underwent environmental and social assessments.

Responsible Procurement

• Lean procurement process
• Good corporate governance principles
• Supplier assessment and evaluation considering ESG aspects
• GO LOCAL Project (promoting local suppliers and reducing Scope 3 emissions).

Climate-Related Risks & Opportunities

Physical Risks

• Changes in rainfall intensity and patterns

Transition Risks

• Not disclosed

Opportunities

• Utilizing renewable energy sources.
• Developing energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI Standards 2021, POJK No. 51/POJK.03/2017, SEOJK No. 16/POJK.04/2021

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 37001:2016, ISO 45001:2018, ISO 55001:2014

Third-party Assurance: SR Asia Indonesia

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 12
• 13
• 16

Petrosea's initiatives contribute to these SDGs through various programs related to health, education, economic empowerment, and environmental protection.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 14th IICD Corporate Governance Award 2023 (Best Responsibility of the Board, Top 50 Mid Capitalization Public Listed Company)
• Corporate Emission Transparency Awards 2023 (Gold Plus)
• ESG Disclosure Transparency Awards 2023 (Management BBB)
• FIHRRST Awards 2023 (Rating A)
• The Iconomics Awards (Best Corporate Secretary, Top Good Corporate Governance)
• 10th SAP Innovation Awards 2023
• Bisnis Indonesia Awards 2023
• Regional PROPER award (PROPERDA) with GREEN rating
• Zero accident awards
• HIV/AIDS Prevention and Countermeasure Program (Platinum)
• COVID-19 Prevention and Countermeasure Program (Platinum)
• HSE Indonesia Award 2023
• Tricentis APAC Innovation Awards 2023
• IDES Awards 2023
• Indonesia Safety Excellence Award (ISEA) 2023
• UTAMA and PRATAMA Awards