65th Anniversary, Pertamina Strengthens ESG Aspects for Sustainable Business

Jakarta, November 3,  2022 – As a State-Owned Enterprise (SOE) that manages State assets in the energy sector, especially oil and gas (Migas), Pertamina has strived to run business operations that are more environmentally friendly, caring, socially responsible, and with good governance. 

It is evidenced by the Environmental, Social & Governance (ESG) implementation in all lines of business from upstream, processing, and downstream. Pertamina's ESG aspect is translated into ten sustainability focuses and 16 initiatives that follow the Sustainable Development Goals (SDGs) Program.

"At the age of 65, we are committed to running a sustainable business because it is driven by the awareness not to sacrifice the ability of future generations to meet their needs," said Heppy Wulansari, Acting. Vice President of Corporate Communication of PT Pertamina (Persero).

In the environmental field, Pertamina supports the Government in achieving Net Zero Emission (NZE) by developing a roadmap that includes two pillars. Namely decarbonizing assets and building a green business. Pertamina also establishes three enablers. Namely carbon reporting and accounting, strengthening capabilities and organizations, and stakeholder engagement. Pertamina also carries out eight energy transition initiatives in the context of producing Renewable Energy.

Through these various initiatives, Pertamina targets a 30% reduction in emissions by 2030. The process of achieving the target has begun to be felt by emissions reductions of 7.4 Million Tons of CO2 Equivalent (MmtCO2E) during 2010 – 2021. These results are obtained from energy efficiency efforts in the Upstream and Processing business lines that reuse heat generated from waste and other initiatives from Geothermal activities. It includes the utilization of Flare Gas for own use and gas supply for consumers in the upstream sector and processing, fuel gasification, and commercialization of CO2 release to consumers in the upstream sector and optimization of Geothermal activities.

"We involve national and international partners to explore partnerships to support the decarbonization program and accelerate the growth of NRE," said Heppy.

In the social sector, Pertamina has developed a Corporate Social Responsibility (CSR) Program with the Pertamina Green pillar to support environmental conservation, one of which is through the Biodiversity program. Through the biodiversity program, Pertamina has succeeded in planting more than 4.1 million trees, conserving 95 species of plants. As for fauna, there are 261 types of animals, with a total of more than 800 thousand that are conserved.

In addition, Pertamina guides fostered MSMEs during the Covid-19 Pandemic so they could rise faster through SMEXPO. Then, since 2019, Pertamina has carried out an affirmative recruitment program for Persons with Disabilities. Together with other SOEs, Pertamina reaches out to the Disabled People network group to inform the Pertamina Group's opportunities. Pertamina also forms a community of women workers "Srikandi" with four main programs, Sustainability, Development, Welfare, and Partnership & Communication.

"From the social side, Pertamina is committed to supporting the protection and respect for Human Rights in every business activity," said Heppy.

In terms of governance, she added, Pertamina has obtained the ISO 37001:2016 Anti-Bribery Management System (SMAP) certification for the corporate scope. The certification is proof that Pertamina, as the Oil and Gas SOE Holding, has implemented an anti-bribery management system in all its business processes.

The implementation of SMAP is also an effort to strengthen clean and transparent business governance, which follows the commitment to the management of ESG and SDGs. As of December 31, 2021, 19 PERTAMINA Group entities have implemented ISO 37000:2016. Concerning suppliers, the company also includes several clauses related to anti-corruption in the supplier registration process as part of its due diligence.

With a high commitment to the Environment, Social, Governance, and Sustainable Development Goals, since October 2022, Pertamina's ESG rating has been improving, with a score of 22.1. The ESG Rating Sustainalytics agency assesses it is at the Medium risk level in experiencing a material financial impact from ESG factors. The ESG Risk Rating also places Pertamina at 2nd place globally in the Integrated Oil & Gas sub-industry. This position significantly raise from the 8th ranking of the same 54 companies in 2021.

"This strong sustainability commitment enables us to compete with other global energy companies," said Heppy.**

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