Pertamina: Pertamina’s ESG Implementation Getting Stronger, Recognized by Several International Institutions
Pertamina’s ESG (Environmental, Social, & Governance) implementation is getting stronger this year and has attracted foreign countries’ attention. It can be seen in several international awards that Pertamina received.
The latest acknowledgment is from JP Morgan, which includes Pertamina in the JESG EMBI (JP Morgan ESG Emerging Market Bond Instrument) Index with a score of 44.2 in June 2022, or more than the 20 thresholds set by the JESG EMBI.
It shows that Pertamina succeeded in running its business, especially with insightful principles and good governance. With this recognition, Pertamina will get bigger financial access opportunities in the market, including more competitive interest rates.
Pertamina’s position has also become globally recognized as a driving force in Indonesia, especially since Indonesia is committed to implementing the Paris agreement to reduce carbon emissions.
“Align with Pertamina’s vision to be a sustainable global energy company, we as Directors continues to improve the ESG aspect according to the international sustainability practices so that our initiatives fit the ESG standards,” said Finance Director of Pertamina, Emma Sri Martini, who is also the Sustainability Committee of Pertamina.
Pertamina has done several things, including contributing to reducing carbon emissions, maintaining biodiversity, and implementing Good Corporate Governance (GCG) aspects.
In reducing carbon emission, Pertamina has succeeded in reducing 7.4 Million Tons of Equivalent (MTOE) carbon, or about 29% from the 2010 baseline until 2021. Meanwhile, to maintain biodiversity, in the last five years ,Pertamina carried out conservation for around 30 endemic fauna species and about 24 flora species, where most are endangered.
Specifically, regarding the GCG implementation, Pertamina won the Anti-Bribery Management System certification in early 2022, which signifies the company’s commitment to implementing clean work procedures.
Besides the recognition in the JP Morgan Index, Pertamina also received several awards for sustainability. In June 2022, Pertamina Hulu Rokan managed to get The High Commended category for Sustainability Business Awards (SBA) Indonesia. This award is given to companies with a strong commitment and consistent efforts in various fields with a good roadmap.
SBA Indonesia is organized by Global Initiatives, an international company concerning sustainability based in Singapore, with local partners PwC Indonesia, the Indonesian Business Council for Sustainable Development (IBCSD), Control Union, and the Indonesian Chamber of Commerce and Industry (KADIN). SBA is held in several countries besides Indonesia, such as Singapore, Malaysia, Indonesia, the Philippines, and Thailand.
Previously, Pertamina had also received 28.1 ESG score from Sustainalytics in 2021, which showed a moderate level of risk, on par with other companies such as Repsol and ENI.
In addition, the World Benchmarking Alliance (WBA) also placed Pertamina at 49th rank out of 100 oil and gas companies in the WBA Climate & Energy topic.
“We also encourage all Pertamina sub holdings and collaborations to improve the ESG implementation. Thus, the company’s operational and business programs implement applicable ESG best practices,” Emma added.