Climate Change Data

PT Matahari Department Store Tbk

Climate Impact & Sustainability Data (2020, 2021, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Not disclosed

Environmental Achievements

  • Initiation of the use of cassava-based shopping bags

Social Achievements

  • Introduced the first Branchless Banking feature in Atrium Senen store
  • Launched the social commerce Shop & Talk and marketplaces such as Shopee
  • Launched the New! Matahari.com

Governance Achievements

  • Achieved an ASEAN Corporate Governance Scorecard score of 86.25
  • Consistently assessed GCG practices against the ASEAN Corporate Governance Scorecard
  • Implemented POJK No.16/POJK.04/2020 regarding the Procedures for Implementing Electronic GMS

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • COVID-19 pandemic adversely affected the financial performance, leading to a loss of Rp873 billion
  • The pandemic triggered an offline retail collapse across Indonesia
  • Widespread closures and reduced traffic due to the pandemic
Mitigation Strategies
  • Took aggressive cost actions to mitigate the pandemic impact
  • Closed underperforming stores (13 large-format and 12 specialty stores)
  • Negotiated rental waivers and discounts, resulting in a 21.3% decrease in operating expenses
  • Launched several digital initiatives (new Matahari.com website, Android App and iOS App, Shop & Talk, official stores on Shopee)
  • Implemented safety measures in stores (priority cashier for families, elderly, and medical workers; easy-to-find essential products; regular sanitising; safer pathway system)

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Indonesia Most Admired Company Award 2020
  • Top 5 Most Admired Companies: Retail Warta Ekonomi
  • Investor Awards 2020 100 Best Listed Companies Majalah Investor
  • IICD Governance Conference and Award ke-12 Top 10 Mid Capitalization Public Listed Company
  • IICD Governance Conference and Award ke-12 Best Non Financial Sector - 3rd Winner
  • Implementation of Tax Compliance and Role and Contribution in Realising KPP Pratama Cikupa Receipts for the 2020 Fiscal Year
  • Regional Innovation in the New Normal City Cluster 3rd Winner: Semarang/Matahari Paragon Semarang, Modern Trade Sector
  • Regional Innovation in the New Normal City Cluster 1st Winner: East Java/Matahari Tunjungan Plaza, Modern Trade Sector

Reporting Period: 2021

Environmental Metrics

Total Energy Consumption:337,916 Kwh/year
Water Consumption:168 m3/year

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced water usage by 62%
  • Reduced plastic shopping bag usage by 16%, with 43% of bags being environmentally friendly (82% oxium bags, 9% cassava bags, and 9% paper bags)
  • Switched to more energy-efficient LED lighting in stores

Social Achievements

  • Launched the self-training program “MILEA” (Matahari Integrated Learning)
  • Provided humanitarian aid to communities affected by the COVID-19 pandemic, employees, and healthcare workers
  • 100% of employees fully vaccinated for first and second doses ahead of the industry norm

Governance Achievements

  • Devised a road map for 2022 to navigate emerging environmental, social, and governance (ESG) issues
  • Established a new dividend policy with a clear direction of a minimum 50% payout ratio
  • Consistently enhanced its GCG framework and improved the quality of its implementation

Climate Goals & Targets

Long-term Goals:
  • Achieve sustainable growth of the Company’s financial performance
Medium-term Goals:
  • Increase the supply of eco-friendly merchandise
Short-term Goals:
  • Complete booster vaccinations for all employees before Idul Fitri

Environmental Challenges

  • Pandemic and new COVID-19 variants
  • Supply chain disruptions
  • Inflationary pressures
Mitigation Strategies
  • Accelerated sales through online platforms
  • Strengthened local supply chain and relationships with domestic vendors
  • Secured more inventory in advance for key seasons

Supply Chain Management

Responsible Procurement
  • Prioritizing local suppliers (92% of total suppliers)
  • Assessing environmental and social aspects of suppliers
  • Terminating contracts with suppliers who harm the environment or violate labor regulations

Climate-Related Risks & Opportunities

Opportunities
  • Sustainable financing for business and environmental and social projects

Reporting Standards

Frameworks Used: GRI, ASEAN Corporate Governance Scorecard

UN Sustainable Development Goals

  • 1
  • 3
  • 4
  • 6
  • 7
  • 8
  • 10
  • 11
  • 12
  • 13
  • 15
  • 16
  • 17

Matahari's initiatives contribute to these goals through job creation, community investment, environmental protection, responsible procurement, and ethical governance.

Sustainable Products & Innovation

  • Environmentally friendly shopping bags made of cassava starch and paper

Awards & Recognition

  • Top 10 Mid Capitalization ASEAN Corporate Governance Awards 2021
  • Top 3 Best Non-Financial Sector ASEAN Corporate Governance Awards 2021
  • Excellent Service Experience Award in Departmental Store
  • Golden Grade in Service Quality Index
  • Customer Journey Experience Index - CAT Purchase Clothes and Accessories at store or mall

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:131,339.2 tCO2e/year
Scope 1 Emissions:501.3 tCO2e/year
Scope 2 Emissions:130,837.9 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Less than 1% (offset through REC purchase)
Total Energy Consumption:552,504.9 GJ/year
Water Consumption:480.5 megaliters/year
Waste Generated:14.4 tons/year (Distribution Center only)
Carbon Intensity:0.13 tCO2e/m2 in 2023

ESG Focus Areas

  • Environmental: Operating Sustainably
  • Social: Empowering Our People and Communities
  • Governance: Conducting Business Ethically

Environmental Achievements

  • Increased the use of eco-friendly materials in packaging from 82.6% in 2022 to 93.4% in 2023.
  • Reduced waste generated in the Distribution Center from 125.3 tons in 2022 to 14.4 tons in 2023.
  • Reduced the use of single-use plastic bags by 74% in 2023.
  • Collected 1.8 tons of textile waste through a recycling program in 2023.

Social Achievements

  • Employed four times more people with disabilities in 2023.
  • Increased the percentage of women in managerial positions to 45% in 2023.
  • Invested Rp854 million in community development initiatives in 2023, focusing on literacy and education for children.

Governance Achievements

  • Implemented a Gratification Policy and conducted anticorruption training for staff.
  • Maintained zero cases related to breach of customer privacy and achieved a 4.04 service quality index in 2023.
  • No complaints or fines related to customer data loss or privacy breaches in 2023.

Climate Goals & Targets

Long-term Goals:
  • Maximise the use of sustainability materials across the supply chain.
  • Maximise waste management initiatives.
  • Assess energy consumption from the value chain and Scope 3 GHG emissions.
  • Support career advancement for female managers and people with disabilities.
  • Strengthen safe and inclusive workplace.
  • Conduct omnichannel socialisation and training on anticorruption policies.
Medium-term Goals:
  • Engage with suppliers on sustainability practices.
  • Increase the number of reusable bags usage.
  • Develop an energy reduction plan.
  • Roll out LED lighting at the Distribution Center.
  • Roll out human rights and D&I training.
  • Launch a career support program for female employees.
  • Extend the socialisation of the whistleblowing system to business partners.
Short-term Goals:
  • Increase the use of eco-friendly materials.
  • Reduce single-use plastic bags further.
  • Maintain post-consumer garment recycling program.
  • Increase workforce diversification.
  • Develop Human Rights policy.
  • Establish CSR framework and procedures.
  • Intensify internal socialisation of the whistleblowing system.

Environmental Challenges

  • Limited understanding and awareness of sustainability issues and risks within the organization and among suppliers.
  • Complexity in accurately calculating material usage, waste generation, and energy consumption.
  • Difficulty in tracing and cooperating with stakeholders to measure the impact of material choices on products.
  • Need to expand responsible procurement practices to product packaging.
Mitigation Strategies
  • Planning a series of internal training sessions, outreach programs, and workshops to enhance sustainability awareness and knowledge.
  • Partnering with tier-2 or tier-3 suppliers to create marketing campaigns for eco-friendly products.
  • Requiring suppliers to assess the percentage of eco-friendly materials in their products.
  • Encouraging reusable shopping bags to replace paper bags.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Collaboration with local suppliers; criteria for supplier selection includes zero child labour and forced labour.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Shifting to greener operations
Opportunities
  • Resource efficiency, energy resources, and resilience; products, services, and market opportunities.

Reporting Standards

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

Certifications: Null

Third-party Assurance: Tanudiredja, Wibisana, Rintis & Rekan (a member firm of PricewaterhouseCoopers International Limited) - Financial statements only

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 10 (Reduced Inequalities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Initiatives contributing to these goals are detailed in the report.

Sustainable Products & Innovation

  • Apparel products made of recycled plastic bottles; denim products using less water; products using responsibly sourced wood pulp.

Awards & Recognition

  • TrenAsia’s ESG Award 2023 (Retail for Action)
  • HerStory Best Women Empowerment Company 2023
  • Kontan Business Stellar Workplace Award 2023 (Employee Satisfaction and Commitment)