Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Social Performance
• Environmental Management

Environmental Achievements

• Air emissions, noise levels, and effluent levels did not exceed government-set environmental quality standards.
• Land rehabilitation reached 146.8% of obligations.
• Public complaints related to environmental issues were lower than the previous year, with no sanctions from regulators.
• Biofuel use reached 72.6% of total energy in mining operations.

Social Achievements

• Zero fatal occupational accidents.
• Employee competency development increased by 66.1% from the previous year.
• Employee remuneration was above the minimum wage.
• Community Development and Empowerment (CDE) program benefited 6,181 people and 9 villages.

Governance Achievements

• Enhanced corporate governance through the application of sustainability principles.
• Implementation of ISO 45001:2018 for Occupational Health and Safety Management Systems.
• Implementation of ISO 9001:2015 for Quality Management System.
• Implementation of ISO 14001:2015 for Environmental Management System.

Climate Goals & Targets

Environmental Challenges

• Limited number of sustainable social programs and difficulty in determining achievement indicators for social sustainability.
• Changes in domestic and international policies towards sustainable business practices, particularly regarding new and renewable energy, impacting market share and financial performance.

Mitigation Strategies

• Building communication with local communities to identify needs for economic independence.
• Adjusting the business model life cycle in the coal mining sector.
• Investing in the nickel industry to diversify business and contribute to energy transition.

Supply Chain Management

Responsible Procurement

• Fair and open selection of business partners to prevent corruption, collusion, and nepotism.
• Involvement of local business partners.

Climate-Related Risks & Opportunities

Physical Risks

• Changes in various natural factors beyond our control, in particular weather and natural disaster, may materially affect the mining operations.

Transition Risks

• Changes in domestic and international policies that direct operational activities to sustainable business practices, especially policies related to the use of new and renewable energy.

Opportunities

• Use of renewable energy sources (solar panels and biofuel).

Reporting Standards

Frameworks Used: Financial Services Authority Regulation No. 51/POJK.03/2017

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

Third-party Assurance: Internal party verification, no independent external party assurance.

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

The report mentions alignment with SDGs but does not provide detailed explanations of how specific initiatives contribute to each goal.

Awards & Recognition

• Platinum Award for Covid-19 Prevention and Handling Program in Workplace (Ministry of Manpower)
• Blue Rating for Company Performance Rating Assessment in Environmental Management (Governor of East Kalimantan and Ministry of Environment and Forestry)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Social Performance
• Environmental Management
• Governance
• Climate Change
• Community Development and Empowerment (PPM)

Environmental Achievements

• Coal production volume increased by 51.5% from 3.6 million tons in 2021 to 5.4 million tons in 2022.
• Sales volume increased by 45.4% from 3.5 million tons in 2021 to 5.0 million tons in 2022.
• Rehabilitation of former mining land reached 72.7% of the obligation.
• Air emission, noise level, and effluent level are below the applicable environmental quality standard.
• No complaints from the public regarding environmental problems, and no sanctions were imposed by regulators in 2022.
• 100% use of biofuel for coal mining operational fuel needs.
• Completed a formal framework regarding strategy and implementation of long-term ESG policies.

Social Achievements

• Implemented 242 Community Development and Empowerment (CDE) programs, 55 of which were featured activities, costing USD 364,828.
• Cost of employee competency development activities increased by 111.6% from 2021.
• No fatal occupational accidents (zero fatality) throughout the work environment of the Company and its Subsidiaries.
• Employee wage levels are above the minimum wage requirements.
• No complaint report related to employment issue.

Governance Achievements

• Improved the quality of governance, risk management, and compliance.
• Built data management, especially related to environmental impacts.
• Strengthened communication, collaboration, and partnerships.

Climate Goals & Targets

Environmental Challenges

• Internal challenge: understanding sustainability principles and their benefits for the company, environment, and community.
• External challenge: implementing sustainability with business partners.
• Limited investment, technology, or domestic resources for diversification into the nickel industry.
• Uncertain and highly fluctuating coal prices.

Mitigation Strategies

• Disseminating sustainability issues and gradually integrating sustainability principles into company regulations.
• Providing understanding and limited incentives to business partners.
• Diversifying business into the nickel industry.
• Monitoring global economic and coal market situation for appropriate pricing decisions.

Supply Chain Management

Responsible Procurement

• Involving competent and honest business partners
• Transparent selection process to prevent corruption, collusion, and nepotism
• Ensuring fulfillment of work contracts and implementing joint evaluation procedures
• Involving local business partners

Climate-Related Risks & Opportunities

Physical Risks

• Changes in various natural factors beyond our control, particularly weather and natural disaster

Transition Risks

• Changes in various natural factors beyond our control, particularly weather and natural disaster

Opportunities

• Developing and expanding renewable energy business
• Exploring opportunities to take advantage of mining logistics and services
• Investing in research related to sustainable mining business operations and technologies
• Assessing the feasibility of building low carbon supply chain in business operations

Reporting Standards

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

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 (MSJ)

UN Sustainable Development Goals

• SDG 3: Healthy Lives and Well-Being
• SDG 4: Quality Education
• SDG 7: Clean and Affordable Energy
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 15: Life on Land

The strategies, initiatives, and sustainability targets are connected to the SDGs that the Indonesian government wants to achieve in 2030.

Awards & Recognition

• Platinum Award for the Prevention and Management of Covid-19 Program in the Workplace
• Platinum Award for the HIV-AIDS Prevention and Control Program in the Workplace
• PROPERDA Blue Rating (MSJ and KUP)
• PROPERNAS Blue Rating (MSJ)
• Certificate of Appreciation for Company Participation in Community Development and Empowerment Program in Kutai Kartanegara Regency
• Award for Sustainable Development of Committed Cattle in 2021

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Rehabilitation of ex-mining land in 2023 reached 122.3% of obligations
• All operational fuel in the mining area utilized biofuel

Social Achievements

• Realization of competency development activities at a cost of USD32 thousand, attended by 151 participants
• There were no fatal occupational accidents
• CDE programs were held as many as 263 activities
• There were several assisted villages as a form of our contribution to the progress of micro, small, and medium enterprises (MSMEs) around the operational areas of the Company and Subsidiaries.

Governance Achievements

• No sanctions due to corrupt practices and fraud committed by the Company and Subsidiaries’ personnel in all work environments.
• No conflict of interest in any decisions and policies adopted by the Company.

Climate Goals & Targets

Environmental Challenges

• Limited understanding of the importance of sustainability principles, both for Company personnel and the surrounding community.
• The dynamics of coal and nickel prices tend to be uncertain and highly fluctuating.

Mitigation Strategies

• The Company continues to disseminate issues and organize competency activities related to sustainability principles in stages and integrate sustainability principles into Company regulations.
• Keeping updates on global economic as well as coal and nickel market in order to encourage the right decision-making on pricing and necessary adjustment on price timing.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Conducting transparent tenders
• Maintaining the fulfillment of rights and obligations in the work contract

Climate-Related Risks & Opportunities

Physical Risks

• Changes in various natural factors beyond our control, in particular weather and natural disaster

Transition Risks

• Amendment to laws and regulations that may have material impacts on some or all of our business activities.

Opportunities

• Developing and expanding renewable energy business

Reporting Standards

Frameworks Used: GRI Standards 2021, GRI 12: Coal Sector 2022

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

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 15

The various sustainability efforts that we carry out are always adjusted to SDG indicators that the government wants to achieve by 2030 and are related to the Company’s business activities.

Sustainable Products & Innovation

• Nickel Pig Iron (NPI)
• Nickel Matte
• Mixed Hydroxide Precipitate (MHP)

Awards & Recognition

• Gold Award for P2 HIV and AIDS in the Workplace Program
• Platinum Award for P2 Covid-19 Program in the Workplace
• Zero Accident Award
• Company Performance Rating Assessment in Environmental Management (PROPERDA) for the 2022-2023 Period Blue Category
• Company Performance Rating Assessment in Environmental Management (PROPERDA) for the 2022-2023 Period Green Category
• Award for Corporate Social Responsibility Participation and Collaboration
• Award for Participation in the Scholarship Funding Program
• Award for Participation in the Community Development and Empowerment Program
• Best Under a Billion
• Award as The Most Blood Donor
• Award as a 2023 CSR Award Participant
• Kukar CSR Award 2023 Category of Biosphere Gold Predicate
• Kukar CSR Award 2023 Category of Societies Gold Predicate
• Tamasya Award for Participation in Coal Community Empowerment and Development Performance