Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Community Development
• Consumer Satisfaction
• Employee Welfare
• Occupational Health & Safety (OHS)
• Good Corporate Governance (GCG)

Environmental Achievements

• Improved waste management practices, including recycling and alternative fuel use for organic waste.
• Wastewater treatment to meet quality standards before discharge.

Social Achievements

• Held the 10th annual Diplomat Success Challenge, receiving 12,500 business proposals.
• Supported literacy programs in Surabaya, providing books to 25 schools.
• Supported the preservation of 9 historical buildings in Pontianak and Singkawang.
• Provided healthy nutrition to children in a learning park in South Tangerang.
• Supported Indonesian delegate to the International Student Festival in Trondheim.

Governance Achievements

• Zero sanctions from regulators.
• Received the 2019 Annual Corporate Financial Report Award from the Ministry of Trade.
• Implemented Good Corporate Governance (GCG) principles based on best practices.

Climate Goals & Targets

Environmental Challenges

• Uncertain global economic pressures (trade wars, Brexit, geopolitical conflicts).
• Increased cigarette excise taxes.
• Anti-smoking campaigns.
• COVID-19 pandemic impact on the economy.

Mitigation Strategies

• Consistent implementation of strategic initiatives (production optimization, facility relocation).
• Maintaining healthy capital ratios and maximizing shareholder value.
• Strengthening distribution channels and implementing concise marketing.
• Investing in new filter machinery to attract new customers.
• Adapting to changes in government policies.
• Building awareness of responsible cigarette consumption.

Supply Chain Management

Responsible Procurement

• Policy on selection of vendors.

Climate-Related Risks & Opportunities

Awards & Recognition

• 2019 Annual Corporate Financial Report Award from the Ministry of Trade
• OHS Award from the East Java Provincial Government (PT Gelora Djaja)
• Zero Accident Award from the Ministry of Manpower (PT Gelora Djaja)

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Entrepreneurship
• Occupational Health and Safety (OHS)
• Corporate Social Responsibility (CSR)

Environmental Achievements

• Implemented waste management practices, including recycling and waste processing for alternative fuel.
• Built Temporary Storing Site (TSS) for hazardous waste at Surabaya Production Facility and Head Office.

Social Achievements

• Successfully held the 11th Diplomat Success Challenge (DSC XI) with 15,589 participants.
• Launched the "From Wismilak for the People" CSR program to support communities affected by COVID-19.
• Achieved 9,400,095 Person Work Hours without work accidents at PT Gelora Djaja (awarded OHS Award and Zero Accident Award).

Governance Achievements

• Consistently implemented good corporate governance principles.
• Established a Sustainability Task Force.
• Implemented a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations and social programs.
• Government regulations, including excise tax increases, affecting the cigarette industry.
• Decreased consumer purchasing power due to the pandemic.

Mitigation Strategies

• Implemented health protocols and safety measures.
• Adapted CSR programs to online formats.
• Developed new products with affordable prices.
• Implemented cost efficiency programs.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 17025 (for PT Gelora Djaja laboratory)

Awards & Recognition

• OHS Award (East Java Provincial Government)
• Zero Accident Award (Ministry of Manpower)
• Marketeers OMNI Brands of the Year 2020
• Indonesia CSR & PKBL Award 2020

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic

Environmental Achievements

• Reduced energy intensity by 2.4% to 7.64 GJ/Ton.
• Reduced emissions by 352 tons CO2eq.
• Reused 61.64% of organic solid waste.
• Planted 4,157 trees, 17,187 shrubberies, and bushes covering 17,540 m2.

Social Achievements

• Achieved zero fatality with 4,624,608 safe man-hours, receiving a national-level 'OHS Zero Fatality' award.
• Successfully held Diplomat Success Challenge (DSC) XII entrepreneurship program with 18,233 participants (57% women).
• Implemented 18,347 hours of employee training.
• 46% of workforce is local manpower.

Governance Achievements

• Maintained compliance with all applicable policies and regulations; no corruption or conflict of interest cases reported.
• Established a whistleblowing system.
• Implemented new policies on labor to guarantee employee welfare (HR-C&B 009, HR-C&B 007, HR-C&B 001).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting purchasing power and operational activities.
• Increase in cigarette excise rates by 12.5%.
• Use of non-renewable energy as the main energy source.

Mitigation Strategies

• Implemented Business Contingency Plan (BCP) and adapted to the pandemic.
• Implemented energy efficiency initiatives (low, medium, and high cost).
• Established a Temporary Disposal Site (TPS) for B3 waste to generate electricity.
• Prioritized employee welfare and OHS.
• Increased partnerships with local suppliers (71% for tobacco).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing local suppliers (55 total, 71% for tobacco, 100% for cloves).
• Supplier selection based on company policies and procedures.

Climate-Related Risks & Opportunities

Physical Risks

• Climate impacts on tobacco and clove harvests.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Core

Certifications: ISO 9001:2015, ISO/IEC 17025:2017, ISO/IEC 17043:2010

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)
• Goal 16 (Peace, Justice, and Strong Institutions)

Initiatives supporting OHS, training, community development, local economic inclusion, emissions reduction, and ethical business practices.

Sustainable Products & Innovation

• Galan Prima (HRC segment)

Awards & Recognition

• National OHS Zero Fatality Award (PT Gelora Djaja)
• National OHS Zero Fatality Award (PT Gelora Djaja Unit Bojonegoro 2)
• The Best Media Relation PR Program of the Year 2021
• Award for COVID-19 Prevention and Handling at the Workplace (Platinum)
• Marketeers OMNI Brands of the Year 2021 (Diplomat Success Challenge)
• HR Excellence Awards 2021 (COVID-19 Response)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance
• Governance

Environmental Achievements

• Reduced energy consumption by 2,408 GJ
• Reduced emissions by 75 Ton CO₂
• Construction plan for solar power plant started in December 2022 (to be finalized in 2023)
• 26% reduction in wastewater production

Social Achievements

• 23,657 entrepreneurs participated in Diplomat Success Challenge (DSC) 2022
• Entrepreneurship education in 28 cities/regencies, 8,328 participants
• 40 incubation programs and mentoring programs provided through DSC 2022
• 3,595 books distributed to school libraries
• 11,177 total training hours for 3,244 employees (3.4 hours/employee)

Governance Achievements

• No cases of conflict of interest, corruption, or legal issues
• Consistently complied with regulations regarding reporting submissions and corporate actions
• Collaboration with APINDO and AUA

Climate Goals & Targets

Environmental Challenges

• Changes in customer preferences and lifestyles
• Significant increase in cigarette excise costs (12%)
• Dynamic predictability of regulations and limited investment

Mitigation Strategies

• Launching new products
• Strengthening synergy
• Implementing best practices in business strategies, operational management, environmental protection, and community development programs
• Fostering collaboration with stakeholders
• Implementing comprehensive and continuous business strategy with prudence

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing local goods and services procurement
• Supplier selection in accordance with regulations
• Vendor evaluations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate change impacting production and raw material availability

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

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

Certifications: ISO/IEC 17025:2017, ISO/IEC 17043:2010, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Supporting the achievement of Sustainable Development Goals (SDGs) in Indonesia

Sustainable Products & Innovation

• Wismilak ARJA (new SKT product)

Awards & Recognition

• East Java Zero Accident Awards (2022)
• National Zero Accident Awards (2022)
• Indonesia Customer Experience Champions 2022
• Diplomat Success Challenges, Marketeers Editor's Choice Award
• INDI 4.0 Award 2022
• Surabaya Mayor Awards (2022)

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Successfully completed the construction of a solar power plant (PL TS) with a panel area of 570 m² and a capacity of 126.5 kWp, reducing emissions by 31 tons of CO₂eq.
• Reduced energy intensity by 14% (1.04 GJ/Ton) compared to 2022.
• Reduced greenhouse gas emission intensity by 13% (0.09 Ton CO₂eq/Ton) compared to 2022.

Social Achievements

• Diplomat Success Challenge (DSC) 2023 program successfully executed with 29,780 participants, the highest number since 2010.
• Employee turnover rate decreased to 8.6% (with projects) and 8.5% (without projects).
• 3,155 employees received training with an average of 4.1 hours per individual.

Governance Achievements

• No cases of conflicts of interest, corruption, or legal issues.
• Continued collaboration programs with engaged organizations and expanding relationships with other organizations.
• Company has an anti-corruption policy that applies to all employees, business partners, and those involved in the Company's activities.

Climate Goals & Targets

Environmental Challenges

• Consumer behavior impacting domestic consumption.
• Rising prices of commodities and cigarette taxes resulting in retail price increases.
• Extreme weather changes impacting the supply of raw materials.

Mitigation Strategies

• Implemented efficiency strategies and prioritized activities in line with business plans.
• Collaborated with various suppliers to ensure the availability of raw materials.
• Implemented best practices in business strategy, operational management, environmental stewardship, and community development programs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing local and national companies
• Vendor policy prohibiting the employment of underage labor

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate change affecting production and raw material availability

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO 9001:2015, ISO/IEC 17025:2017, ISO/IEC 17043:2023

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

Wismilak supports SDGs through six priority objectives: health, education, economy, equality, climate action, and governance.

Sustainable Products & Innovation

• Diplomat evo SOPRA (SKM)

Awards & Recognition

• Prevention and Countermeasures (P2) of COVID-19 in the workplace with Gold Category
• Zero Accident Award for PT Gelora Djaja-Unit Bojonegoro 2
• Contribution in Empowering Small Medium Enterprises in Indonesia
• Human Resources Excellence Awards 2023
• ACSB Indonesia Presidential Award 2023