ESG Report and Policy

ENVIRONMENT

Environmental protection is one of SIG's sustainability pillars in executing SIG Sustainability RoadMap 2030. In line with supporting Indonesia Sustainability Commitment, including The National Determined Contribution (ENDC) to reduce the Green House Gas emission by 31,89% unconditionally and 43,20% conditionally by 2030, SIG Continuously contributes to preserving environmental sustainability by managing and controlling the GHG emission, dust emission, energy efficiency and renewable energy sources, biodiversity, to water, and waste utilization. These initiatives have been done in accordance and referring to the national regulations and standards, such as:

• Law of Republic of Indonesia No.32/2009 on Environmental Protection and Management.
• Presidential Regulation No.61/2011 on Action Plan to Reduce Greenhouse Gas.
• Ministerial regulations of Environment and Forestry (MoEF) No.19/2017 on the Emission Quality Standards for Businesses and/or Activities in Cement Industry.
• Ministerial Regulations of Energy and Mineral Resources No.12/2014 on Procedures for Control and Monitoring of Energy Utilization in Industry.
• Ministerial Regulation of MoEMR No.7/2014 on The Implementation of Reclamation and Post-mining Activities in Mineral and Coal Mining Services.

SOCIAL

SIG's commitment in focusing on social aspects and human rights whether it is for internal or external stakeholders is stipulated in SIG Sustainability Pillar 'Creating Values from Employees and Communities'. This commitment also supports Indonesia's ratification on the International Bills of Human Rights and ILO and contribute in the achievement of National Strategy for Business and Human Rights (STRANAS BHAM).

Referring to Law of Republic of Indonesia No.13/2003 on Employment and ILO Convention no.38, SIG ensure that there is no forced or child labor in the working environment of SIG and is committed to provide fair and equal working opportunity and mandate all employees to create working environment that are free from discrimination, harassment, misconduct, threats, and violence. Adding to that, SIG prioritized Occupational Health and Safety (OHS) to all the employee across the supply chain as how it is stipulated in the Law of Republic of Indonesia No.1/1970 on Occupational Safety and Government Regulation No.50/2012 on the Implementation of Occupational Health and Safety Management System.

Not limited to the internal of the company, SIG supports the development of social economics of the surrounding people and communities to improve quality of life and preserving the environment through CSR Programs as stipulated in The Law of Republic of Indonesia No.40/2007 on Limited Liability Company and Government Regulation No.27/2012 on Social and Environmental Responsibility of Limited Liability Company.

GOVERNANCE

Governance has an important role to ensure that the company operates with integrity, accountability, and supports long-term sustainability. As one of the State-owned Companies, SIG continuously endeavor to comply to national regulations and ISO standards to be a business that operates in accordance with Global Standards and SIG has achieved certifications acknowledging compliances.

Second, SIG understands the importance of effective risk management to realize our goals and to maintain optimal and sustainable growth levels. Thus, SIG implemented the Integrated Risk Management (IRM). In conducting ethical business, SIG emphasized to conduct business in an ethical and integrated manner by committing to implement Good Corporate Governance principles through applying the shared commitment in corporate code of conduct. Lastly, Referring to Presidential Regulations No.16/2018 on Sustainable Procurement/Government Services, SIG makes efforts in communicating considerations on economy, social, and environments aspects in its procurement process, especially the criteria of Domestic Component Level percentage.