Jakarta, May 11, 2023 - Two of Asia Pulp & Paper (APP) Sinar Mas' business units, PT Indah Kiat Pulp & Paper Tbk (IKPP) and PT Pabrik Kertas Tjiwi Kimia Tbk (Tjiwi Kimia) received the Indonesia Green & Sustainable Companies Award (IGSCA) 2023 in the Natural Resource-based Industry category. The award, received at the Shangrila Hotel, was given for APP Sinar Mas' commitment and achievement in implementing ESG (Environment, Social, and Governance) in the company environment.
"This award is an achievement of our commitment to continue innovating and implementing sustainable business practices. This is also in line with the Sustainability Roadmap Vision 2030 (SRV 2030) that we have launched," said APP Sinar Mas Director Suhendra Wiriadinata on a separate occasion.
Suhendra added, in order to become a company that continuously runs a sustainable business and implements ESG principles to support the Government in realizing Net Zero Emission (NZE), the Company also believes that it will be able to provide benefits, not only for those directly involved in the business, but also for the entire community and the surrounding environment.
Chairman of KADIN Indonesia Arsjad Rasjid in his online speech said, "Implementing ESG principles is a must, not only as a form of corporate responsibility to the environment, social, and good business governance, but also as a long-term investment for the company. Today, more than 70% of global consumers in developed countries are willing to pay more for green and sustainable products. On the investor side, social and environmental impacts also become their focus, not only dividends and profits, so the application of ESG is becoming increasingly important," he said.
Arsjad also hopes that the award-winning companies can become ESG champion companies, so that they can inspire other companies to implement ESG.
The award assessment criteria are measurable tangible results, including sustainable business, social inclusion, social welfare and comfort, good environmental management, and ethical and compliance standards. PT IKPP and PT Tjiwi Kimia are able to demonstrate this achievement through the efforts that have been made in recent years.
One of the main focuses of PT IKPP and PT Tjiwi Kimia in continuous improvement in the production process is by implementing energy efficiency. In the last 3 years, PT IKPP managed to reduce the use of electricity and steam in the production process by 2.9% for electricity and 3% for steam. While PT Tjiwi Kimia managed to reduce the use of electricity and steam in the production process by 5% for electricity and 3.75% for steam.
While efforts to contribute to reducing greenhouse gas emissions are achieved through energy efficiency programs both in terms of paper production processes, as well as power plant operations. In the last 4 years, PT IKPP's carbon intensity reduction reached 15%, while PT Tjiwi Kimia managed to reduce carbon intensity by 5.8% in the last 3 years.
In addition, in running their CSR programs, PT IKPP and PT Tjiwi Kimia also implement planning, implementing, monitoring, and evaluating. This aims to strengthen the planning system based on Social Impact Assessment (SIA) & program evaluation, encourage self-reliance that focuses on community empowerment including women, and multi-stakeholder collaboration between the community, government, NGOs, academics and academics, and various other related parties. The active involvement of various parties helps companies in realizing CSR programs that are more effective and have a positive impact on the surrounding community.
The IGSCA is an award given to companies in Indonesia that have concern for the environment and consistently implement the triple P principles (people, planet, profit) in creating sustainable business growth.