SIG Officially Releases Sustainability Framework as a Step to Support the Company's Vision and Sustainability Strategy

PT Semen Indonesia (Persero) Tbk (SIG) officially released the Sustainability Framework as a step to support the Company's vision and sustainability strategy to continue to innovate to create products and solutions by paying attention to sustainability aspects. This is in line with the Sustainable Development Goals (SDGs 2030) proclaimed by the government.

The Sustainability Framework is a supporting document that will become a reference in terms of corporate plans to obtain Sustainability Linked Loans or other sustainable financial instruments, which companies will need in implementing ESG aspects in all chains and company operations.

The GIS Sustainability Framework was developed in collaboration with PT Bank Mandiri (Persero) Tbk, Mandiri Securities Pte. Ltd and PT Bank HSBC Indonesia as the Sustainability Coordinator, and has received a Second Party Opinion from Sustainalytics, a company that is recognized worldwide as a provider of ESG research, ratings, and data.

The launch of the SIG Sustainability Framework was marked by the symbolic submission of the Sustainability Framework document by the Director of Corporate Banking of Bank Mandiri, Susana Indah Kris Indriati, and the President Director of PT Bank HSBC Indonesia, Francois de Maricourt to the President Director of SIG Donny Arsal in the Plenary Room of the SIG Head Office, Jakarta on Friday (14/10).

The President Director of GIS, Donny Arsal said that the launch of the GIS Sustainability Framework is the first step in supporting the company's mission to create environmental protection and sustainable social responsibility. SIG focuses on developing innovations to answer challenges in the building material field and provide solutions to stakeholders.

“SIG has set a Sustainability Framework with a focus on reducing carbon emissions gradually with a target of 520 kg CO2/ton of cement and a stretch target of 493 kg CO2/ton of cement by 2032. The determination of the carbon emission reduction target will be done by reducing the clinker factor, increasing substitution heat from alternative fuels, and optimization of specific thermal energy consumption. The initiative to reduce carbon emissions will also have a positive impact on cost efficiency, thereby increasing the Company's profitability,” said Donny Arsal.

Bank Mandiri's Director of Corporate Banking, Susana Indah Kris Indriati, said that the preparation of the Sustainability Framework is a form of Bank Mandiri's commitment to consistently support the green ecosystem trend. "The sustainability framework released by GIS today is a tangible form of synergy and seriousness of SOEs as industry players and the government in their commitment to supporting sustainable economic growth and sustainable development," said Susana Indah Kris Indriati.

Meanwhile, until the second quarter of 2022, Bank Mandiri has contributed 20.7 percent of the total green credit in the country. Going forward, the issuer-coded BMRI bank is committed to continuing to innovate to develop various sustainable products according to best practices to support customers and industry players towards a sustainable economy.

Meanwhile, President Director of PT Bank HSBC Indonesia, Francois de Maricourt expressed his pride in being involved in planning the transition to reduce carbon emissions and implementing ESG principles in the company by launching the Sustainability Framework. “As an international bank with a long history in Asia and Indonesia, we are committed to supporting our customers to begin the transition to a low-carbon and sustainable economy,” said Francois de Maricourt.

This Sustainability Framework includes but is not limited to the ESG implementation strategy, ESG governance, and Key Performance Indicators used, in this case Scope 1 Carbon Emissions along with Sustainability Performance Targets (“SPT”). One of the concrete steps taken by GIS in supporting the company's mission is to implement a long-term Scope 1 Carbon Emissions reduction strategy. SIG has set the 2019 Scope 1 Carbon Emissions as the baseline.

SIG has also appointed the Public Accounting Firm of Tanudiredja, Wibisana, Rintis & Rekan (a member of the PwC Firm network) to carry out a limited assurance engagement and conclude that the 2019 Scope 1 Carbon Emissions information has been prepared, in all material respects, in accordance with with reporting criteria.