During the 2020-2023 period, there were no violations related to environmental management, including water-related incidents. All of Pupuk Indonesia's operational activities complied with applicable environmental laws, regulations, and permits. This compliance is demonstrated by achieving Green and Gold PROPER ratings awarded by the Ministry of Environment and Forestry (KLHK), reflecting both adherence to regulatory standards (compliance) and exceeding compliance (beyond compliance) in environmental management.

The disclosure of sustainability performance data aims to inform stakeholders about our progress in sustainable performance through a comprehensive review of key sustainability metrics, including emissions, energy, water, and waste data. This disclosure aligns with international reporting standards to ensure comparability and transparency for the benefit of stakeholders.

Pupuk Indonesia supports the Indonesian Government's commitment to achieving the Nationally Determined Contribution (NDC) target by 2030. We have redefined and recalculated our greenhouse gas (GHG) inventory (Scope 1 and Scope 2) and developed a decarbonization roadmap based on a 2010 baseline year.

Pupuk Indonesia is committed to realizing the Net Zero Emissions (NZE) target by 2060 through various decarbonization initiatives, including direct emissions reduction via technology upgrades and additional efforts such as emissions reduction through community forest programs.

Our progress toward achieving the NZE 2060 target is measured based on emissions intensity, which reflects emissions released per ton of urea produced. From the 2010 Business-as-Usual baseline, we aim to reduce emissions intensity by 91.6%, reaching 0.083 by 2060.

In accordance with PER-03/MBU/03/2023, the granting of tantiem/performance incentives to directors is done by considering the achievement of predetermined performance. In particular, the Director of Portfolio and Business Development has a Key Performance Indicator (KPI) in 2023 which includes reducing carbon emissions by 80,000 tons CO2e through new initiatives. By 2024, the carbon emission reduction target increases to 100,000 tons CO2e. In addition, in the same year, the Portfolio and Business Development Director's KPIs also include targets related to ESG (Environmental, Social, and Governance) rating, to achieve an industry average rating or medium level. These targets are expected to contribute to the companys environmental performance and support better sustainability and social responsibility.

VOC Emission Free

As part of our commitment to maintaining sustainability and protecting the environment, Pupuk Indonesia proudly states that our entire production process does not produce VOC (Volatile Organic Compounds) emissions. We understand the importance of maintaining air quality and minimizing the impact on the surrounding environment.

Our commitment to zero VOC emissions is part of Pupuk Indonesia's big vision to support the creation of a sustainable industry, environmentally sound, and in line with ESG (Environmental, Social, and Governance) standards. Through technological innovation and responsible operational practices, we strive to continue making a positive contribution to a cleaner and healthier future

Pupuk Indonesia, through its subsidiaries, conducts a comprehensive assessment of water use in all its operational areas, with the main objective of identifying opportunities to improve water use efficiency. This assessment includes analysis of water consumption patterns, utilization of environmentally friendly technology, and implementation of best practices in water management. Some of the excellent water consumption efficiency programs that each Pupuk Indonesia subsidiary has carried out include:

Most water efficiency programs involve reusing recycled water or wastewater as one of the key measures in reducing water consumption

Waste Management Internal Audit

The waste management system within Pupuk Indonesia requires the waste generated to be processed before being discharged into licensed water bodies to not exceed the quality standards set out in the laws and regulations. Solid waste sent to landfills must be managed by licensed and certified third parties. To ensure that the Company's waste management practices are in accordance with the requirements of laws and regulations, waste management activities are carried out by employees with competency certification in accordance with aspects of waste management.

Olah Sampah dari Rumah Webinar program

Pupuk Indonesia is committed to raising environmental awareness among employees and stakeholders through various waste management programs. Since 2023, Pupuk Indonesia has periodically organized educational activities to promote sustainable waste management and apply the 3R principles (Reduce, Reuse, Recycle).

In 2023, Pupuk Indonesia started the Olah Sampah dari Rumah Webinar program, held online. The webinar is designed to provide practical education to the public on how to effectively manage household waste, hoping to reduce the amount of waste generated and increase individual participation in waste management.

Sustainability Workshop

As a continuation of this initiative, Pupuk Indonesia is organizing a Sustainability Workshop for Pupuk Indonesia Employees on July 4, 2024 at Kertabumi Recycling Center. The workshop will focus on the application of the 3R principles for waste, aiming to deepen participants' understanding of their real contribution to sustainable waste management and provide practical skills that can be applied in daily life.

Pupuk Indonesia applies maximum effort to monitor energy consumption in the production process following the energy management concept centered on Significant Energy Use (SEU). Low Energy Intensity illustrates the efficient use of energy in the production process. Pupuk Indonesia sets energy intensity targets as part of the company's commitment to improve energy efficiency and support environmental sustainability. This target aims to optimize energy use in every production stage, to reduce environmental impacts while increasing the company's competitiveness

By applying environmentally friendly technologies and production process innovations, we strive to achieve lower energy intensity in each business unit.