Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• PT KIA Keramik Mas factory maintained the BLUE PROPER (Program Penilaian Peringkat Kinerja Lingkungan Hidup Perusahaan) for the 6th time.
• Consistently campaigned for clean water saving policy in the office environment.

Social Achievements

• Resumed the “Sharing the Dream 2021” program, an annual scholarship program for outstanding students.
• Increased total employees to 815 people from 764 in 2020.

Governance Achievements

• Implemented Good Corporate Governance (GCG) principles throughout the company.
• Established a Whistleblowing System (WBS).

Climate Goals & Targets

Environmental Challenges

• Competition with imported ceramics from China and India.
• Implementation of the Zero Over Dimension Over Load (ODOL) policy increasing shipping costs.
• Low non-essential consumption due to the prolonged pandemic.
• Fluctuations in exchange rates impacting production budget.
• High gas prices in Indonesia compared to other countries.

Mitigation Strategies

• Developing new product designs with High Value Added (HVA), specifically KIA and KIA HD.
• Strengthening distribution network, improving quality, broadening product options.
• Conducting annual sales promotion programs.
• Implementing cost reduction program through engine reconditioning.
• Investing in production technology and conducting research and development.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: POJK No. 51/POJK.03/2017

Certifications: ISO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)

The Company's initiatives contribute to these goals through various programs and activities.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented Eco-Office (environmentally friendly office)
• Reduced waste production through prevention, reduction, recycling, and reuse

Social Achievements

• Held a scholarship program “Sharing the Dream” for teenagers
• Provided employment to anyone regardless of gender
• Supported employee career development programs
• Ensured fulfillment of employee rights

Governance Achievements

• Full implementation of Good Corporate Governance (GCG)
• Established a Whistleblowing System
• Implemented an anti-corruption policy and program

Climate Goals & Targets

Environmental Challenges

• High cost of investment in environmentally friendly technology
• Uneven education and understanding of employees regarding sustainability
• Over Dimension Over Loading (ODOL) policy
• Fluctuating exchange rates affecting raw material imports
• High gas prices compared to neighboring countries
• Increased energy prices (electricity)
• High competition in the market

Mitigation Strategies

• Gradual implementation of Eco-Office
• Providing sustainability-related training to employees
• Studying strategies to handle the ODOL policy
• Monitoring raw material inventory and setting minimum and maximum limits
• Conducting monthly production planning to estimate energy needs
• Regular maintenance of machines and equipment
• Implementing multiple work shifts to ensure sufficient workforce
• Monitoring developments in the field and implementing mitigation plans
• Monitoring currency movements and factors affecting exchange rates
• Monitoring macroeconomic, socio-political, and industry developments and adjusting to changes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair procurement mechanism for goods and services
• Transparency of the procurement process

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: POJK No. 51/POJK.03/2017, SEOJK 16/2021, SDGs

Certifications: GREEN LABEL INDONESIA

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)

Various initiatives contributing to these goals (see report)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved the 6th Blue Proper certificate for the Cileungsi Factory and the first Blue Proper for the Karawang Factory in 2023.
• Used renewable energy at the Karawang Plant by installing Solar Roof Panels with a capacity of 3.1 Megawatts.

Social Achievements

• Organized the “Sharing the Dream” scholarship program, awarding it to 417 high school students and 10 university students in 2023.

Governance Achievements

• Maintained compliance with regulations and GCG principles throughout 2023.
• No sustainability risks occurred during 2023.

Climate Goals & Targets

Environmental Challenges

• Decline in people's purchasing power.
• Negative performance of national ceramic exports due to global macroeconomic disturbances.
• Increased imports of products from China.
• Fluctuations in USD prices affecting raw materials and final product prices.
• High gas energy prices compared to neighboring countries.
• Gas energy payments in USD, leading to increased production costs due to USD strengthening against Rupiah.
• Over Dimension Over Loading (ODOL) policy.

Mitigation Strategies

• Implemented strategies such as efficiency improvements, launching new products monthly, creating trend-aligned product designs, and implementing attractive promotional programs.
• Implemented cost reduction programs through machine reconditioning.
• Implemented superior production processes and invested in production technology R&D.
• Developed employee competencies and implemented Total Quality Management (TQM) and problem-solving strategies.

Supply Chain Management

Responsible Procurement

• Compliance with the Code of Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Reporting Standards

Frameworks Used: POJK No. 51/POJK.03/2017, SEOJK No. 16/SEOJK.04/2021, SCG's Sustainable Development principles

Certifications: Blue Proper (Cileungsi & Karawang Factories), GREEN LABEL INDONESIA

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)

Company's business activities contribute to these goals through various sustainability programs and initiatives.

Awards & Recognition

• Blue Proper (Cileungsi & Karawang Factories)
• GREEN LABEL INDONESIA