JAKARTA, Indonesia, Oct. 26, 2021 /PRNewswire/ -- Pertamina's commitment to implementing Environmental, Social & Governance (ESG) aspects has increased Pertamina's ESG rating globally.
PT Pertamina Geothermal Energy (PGE) is a company engaged in geothermal energy utilization, and it is part of the Subholding Power & New Renewable Energy (PNRE) of PT Pertamina (Persero). PGE’s Karaha Unit I Geothermal Plant with the capacity of 30 MW has been commercially operated since April 6, 2018.
In September 2021, Pertamina received an ESG Risk Rating by Sustainalytics of 28.1 and was assessed to be at Medium risk of experiencing a material financial impact from ESG factors. This Risk Rating experienced a significant improvement from the previous, reaching 41.6 (Severe Risk) in February 2021.
Sustainalytics is a prominent independent ESG research, rating, and data company that help investors develop and implement responsible investment strategies. The ESG Risk Rating from Sustainalytics measures a company's exposure to material ESG risks and how well the company manages that risk.
With this score, Pertamina occupies the 15th position out of 252 companies in the Oil & Gas industry and the 8th position in the integrated Oil & Gas sub-industry. Pertamina is in the same cluster (Medium Risk) with global companies such as Repsol, ENI, PTT Thailand, and TotalEnergies. This position is also recorded as better than BP, Exxon, and Chevron.
"This rating improvement confirms Pertamina's seriousness in carrying out the ESG agenda in an integrated manner, especially to contribute to the sustainability of the environment and society in the world we live in," said Finance Director of Pertamina, Emma Sri Martini.
According to Emma, in the future, Pertamina will continue to align ESG aspects into the company's business strategy by continuously reflecting on international standards. Therefore, realize the company's vision to become a world-class energy company.
In carrying out ESG, Pertamina has determined ten sustainability focuses that will guide ESG implementation in the future. Pertamina will also form a Sustainability Committee to ensure that ESG aspects are implemented properly. Pertamina has also launched policies related to ESG such as the Sustainability Policy, Human Rights Policy, Respective Workplace Policy, and others.
Regarding efforts to overcome climate change, Pertamina has reduced carbon emissions from energy production and consumption. Pertamina has also protected ecosystems and biodiversity in each of its operational areas.
In 2020, Pertamina has succeeded in reducing greenhouse gas (GHG) emissions by 27 percent compared to 2010. Pertamina will pursue its GHG reduction target to 30 percent by 2030.
In the social sector, Pertamina continues to strengthen health and safety policies to achieve zero accidents in the future. Pertamina also carries out initiatives in the human resources field, research and innovation, and others.
As a state-owned enterprise, Pertamina is mandated by the government to fulfill energy security and provide access to energy nationally. To that end, Pertamina has carried out several excellent initiatives, such as One Price Fuel and One Village One Outlet (OVOO) implementation.
Pertamina has also developed an empowerment program to strengthen relationships with communities in all areas of operation. Pertamina conducts employee recruitment and development, including opening the way for people with disabilities to join.
Regarding the governance aspect, Pertamina has launched the New Pertamina Clean Charter in June 2020. It is done by Pertamina as one of the efforts to implement ISO 37001:2016 regarding the Anti-Bribery Management System. It includes avoiding conflicts of interest, not tolerating bribery, upholding professional management, trust, and integrity, whose implementation refers to the strong principles of good corporate governance (GCG) throughout the organization.
"The integrated implementation of ESG is expected to increase Pertamina's competitiveness and reputation in the eyes of the world, including increasing investor confidence to support Pertamina's investment funding needs," concluded Emma.