Climate Change Data

Environmental Metrics

ESG Focus Areas

• Best in Class Real Estate
• Climate Change and the Environment
• Sustainable Communities
• Educational Patronage

Environmental Achievements

• Received the “Best of the Best Award 2020” in the Top 50 Listed Companies for 2020 from Forbes Indonesia.
• One (SML Plaza Thamrin) Green Building Certified
• Recycled 374,742 m3 of water, equivalent to savings of IDR4.72 billion
• GHG emissions decreased in High-Rise Office Building (16.23%) and ITC Project (28.18%) due to reduced operations during the Covid-19 pandemic.

Social Achievements

• ITC Peduli Kemanusiaan activities across ITC projects
• Launched various value-added products for the public, including fully-furnished products for millennials.
• Sekolah Pasar Rakyat program for UMKM businesses in Pasar Modern BSD City, focusing on digital platforms and financial management.

Governance Achievements

• No reported cases of non-compliance concerning market communications, health and safety impacts, social and economic regulations, or environmental regulations.
• No corruption cases or fines reported.
• Active facilitation of employee training on risk management, fraud, corruption, and asset embezzlement.

Climate Goals & Targets

Environmental Challenges

• Low public awareness of environmentally friendly products due to potential additional costs.
• Impact of Covid-19 pandemic on business performance, particularly in commercial, asset management, retail, and hospitality segments.
• Low public compliance with government-enforced health protocols during the Covid-19 pandemic.
• Difficulty in fully monitoring employee compliance with Covid-19 policies due to habits and behavior.

Mitigation Strategies

• Introduction of innovative products and proactive increase in public awareness.
• Adjustment of business policies, including introducing concepts suitable for post-pandemic lifestyles.
• Implementation of strict health protocols across properties, including physical distancing, touchpoint reduction, and enhanced hygiene.
• Creation of an online tracing system to improve Covid-19 case monitoring and contact tracing.

Supply Chain Management

Responsible Procurement

• Outsourcing of various jobs (design, construction, cleaning); requirement of IUJK for contractors; new requirements for environmental compliance for suppliers (ISO 14001 certification, licensing for wood suppliers, minimum percentage of recycled materials).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core approach), POJK No. 51/POJK.03/2017

Sustainable Products & Innovation

• Green buildings (SML Plaza Thamrin); products with better air circulation and comfortable workspaces.

Awards & Recognition

• Best of the Best Award 2020 (Forbes Indonesia)

Environmental Metrics

ESG Focus Areas

• Providing Excellent Products, Facilities and Services
• Setting Programs to Achieve Sustainable Development
• Resilience to IT Cybersecurity Risk
• Attention to Customer and K3 (Occupational Health and Safety)
• Compliance to All Related Regulatory Requirements

Environmental Achievements

• High-rise Office Buildings: -3% energy intensity reduction (in 8 years period), -24%
• High-rise Office Buildings: -3% emission intensity reduction (in 8 years period), -25%
• High-rise Office Buildings: -2% water intensity reduction (in 8 years period), -43%
• 53% tree planting target achieved (2,344 trees)
• 56% built RTH (Green Open Space) target achieved (100,376 m2)
• 38% biopori holes target achieved (1,317 biopori holes)

Social Achievements

• Launched Sekolah Pasar Rakyat (SPR) program, training over 327 market managers
• 95% of complaints resolved for Property Management
• 0 worker fatalities
• 0 non-compliance incidents (fines, sanctions, etc.)
• Employee turnover rate reduced from 48% in 2020 to 11% in 2021

Governance Achievements

• Implemented fraud awareness training for 356 participants
• Improved whistleblowing practices
• Integrated sustainability into existing governance structure
• Expanded Corporate Risk Management to include ESG and climate-related risks

Climate Goals & Targets

Environmental Challenges

• Pandemic impact on commercial, asset management, retail, and hospitality segments
• Economic recession due to PPKM (Restrictions Towards Community Activities) policy
• Low awareness of vaccination importance
• Cybersecurity risks due to digital transformation and remote work

Mitigation Strategies

• Portfolio expansion and diversification
• Shifting to digital customer complaint management
• Covid-19 vaccination program for employees and communities
• Cybersecurity assessment and action plan to improve capabilities

Supply Chain Management

Responsible Procurement

• Use of certified vendors for hazardous waste management
• Contractors required to have government certificates and licenses

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Sea level rise

Transition Risks

• Increased energy costs
• Regulations on building materials

Opportunities

• Development of energy-efficient products
• Green building certification

Reporting Standards

Frameworks Used: GRI Standards (Core option), POJK 51/2017, SDGs

Sustainable Products & Innovation

• Green buildings

Awards & Recognition

• Indonesia Property Awards 2021 Best Mixed-Use Development (Southgate Apartment)
• Golden Property Awards 2021 Best Township Development (Grand Wisata)

Environmental Metrics

ESG Focus Areas

• Best in-Class Real Estate
• Climate Change and the Environment
• Sustainable Community
• Educational Patronage

Environmental Achievements

• Launched a new integrated waste management process in ITC projects to find innovative ways to reuse plastic and organic waste and minimize waste diverted to landfill.
• Incorporated the use of green materials in construction projects (20-29% green material usage).

Social Achievements

• Transitioned Sekolah Pasar Rakyat to Pasar Rakyat Go Digital, which aims to enhance MSME sellers’ skills and knowledge needed to operate digitally (612 MSMEs participated, 302 received digital payment training).
• Distributed 5,016 doses of COVID-19 vaccines.

Governance Achievements

• Drew up a TCFD Compliance Roadmap for each of the pillars of TCFD (Governance, Strategy, Risk, Metrics and Target).
• Developed an ESG checklist for new investments and performed a physical risk assessment.

Climate Goals & Targets

Environmental Challenges

• Climate change and GHG reduction are relatively new for Indonesian property companies, limiting benchmarking.
• Certain ESG regulations are in progress or not fully implemented.
• Changing stakeholder mindsets on ESG practices is challenging.
• Prolonged construction processes and changes in development priorities impacted RTH, Tree Planting, and Biopores targets.

Mitigation Strategies

• Continuously seeking information and consulting with experts on climate change and GHG reduction.
• Managing relationships with governmental agencies and associations to provide input on regulations.
• Continuously socializing ESG programs and their benefits.
• Revised program with expanded scope including East Indonesia with new targets to be announced in 2023.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Using recycled materials (scrap steel, fly ash, certified green materials).

Climate-Related Risks & Opportunities

Physical Risks

• Flood
• Drought/wildfire
• Heavy rainfall
• Landslide
• Rise of sea level

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2021, POJK 51/2017, TCFD

Certifications: Green Building Council Indonesia, Greenmark BCA

Third-party Assurance: Internal Assurance (Institute of Internal Auditors (IIA))

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11

The Company's initiatives align with these SDGs through various programs and commitments.

Sustainable Products & Innovation

• Green buildings

Awards & Recognition

• GPA Awards the People’s Choice (Favorite Housing Project)

Environmental Metrics

ESG Focus Areas

• Providing excellent products, facilities and services
• Attention to customer and occupational health and safety
• Compliance to all related regulatory requirements
• Resilience to IT cyber security risk
• Reduce the Company’s environmental impact to surrounding environment and society
• Mitigate and adapt to climate change risk and impact
• Engagement program for all stakeholders
• Improving community welfare in surrounding development area
• Initiating programs to support knowledge enhancement
• Improving educational method and facility

Environmental Achievements

• Reduced non-hazardous waste generated and sent to landfill by 41%
• Used an average of 28.13% green materials in residential development projects
• Achieved 2,347 tCO2e reduction from purchased Renewable Energy Certificates (RECs)
• Developed 75,170 m2 of RTH (green open space)
• Planted 3,557 trees
• Constructed 3,245 biopore holes

Social Achievements

• Launched new whistleblowing systems
• Implemented Pasar Rakyat Go Digital program, with 882 MSMEs participating and 442 receiving digital payment training
• Conducted voluntary blood donation program, collecting 1,777 blood bags
• Implemented Social Care for Community program, donating cooking oil to charity

Governance Achievements

• Updated Good Corporate Governance policies, including introducing Anti-Money Laundering and Terrorism Financing Prevention Guidelines
• Launched mandatory anti-bribery and corruption e-learning module (75% participation rate, 89% average post-test score)
• Implemented a third-party administered Whistleblowing System

Climate Goals & Targets

Environmental Challenges

• Early stage of climate change and GHG reduction strategies in the Indonesian property sector (limited benchmarking opportunities)
• Evolving ESG regulations (carbon taxation, green taxonomies, labor laws)
• Shifting stakeholder mindset towards ESG practices
• Limited availability of EPD (Environmental Product Declaration) information from material suppliers in Indonesia

Mitigation Strategies

• Actively seeking insights and consulting with experts to develop an effective roadmap
• Proactive engagement with governmental bodies and industry associations
• Consistent communication of the value and long-term advantages of ESG programs
• Seeking EPD information from neighboring countries (Singapore, Australia)

Supply Chain Management

Supplier Audits: Assessment of supplier legality before inclusion in approved vendor list

Responsible Procurement

• Use of recycled materials (concrete, steel, cement)
• Utilization of certified green materials

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall
• Rise in sea level
• Floods
• Landslides
• Wildfires

Transition Risks

• Policy changes
• Technological advancements
• Market shifts
• Reputational risks

Opportunities

• Development of energy-efficient products
• Construction of green buildings

Reporting Standards

Frameworks Used: GRI Standards 2021, POJK 51/2017, TCFD framework, UN SDGs, ASEAN Corporate Governance Scorecard Revised 2023

Certifications: Green Building Certification (from Green Building Council Indonesia and Greenmark’s Building and Construction Authority)

Third-party Assurance: Internal assurance by DUTI’s Internal Audit Unit

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

Alignment of sustainability objectives with SDGs through pillars and focus areas

Sustainable Products & Innovation

• Green buildings
• Eco-friendly materials

Awards & Recognition

• Golden Property Award: Best Township Development Region in Cibubur & Bogor Surrounding; Best City Development Region Bekasi & Surrounding