ADARO’S COMMITMENT

 

PT Adaro Andalan Indonesia Tbk and its subsidiaries (“Adaro”) support the Indonesian government’s commitment to reduce greenhouse gas (GHG) emissions, including measures to achieve net-zero emissions (NZE) by 2060 or sooner. In this regard, Adaro has been preparing a set of decarbonization strategies.

 

Adaro’s decarbonization strategies include the following initiatives:

1. Disclosing and executing Adaro’s ESG strategy framework. 
2. Preparing a detailed calculation of GHG emissions produced by our operational activities under scope 1 and scope 2. 
3. Utilizing low carbon fuel (biodiesel) and renewable energy and exploring the effectiveness of utilizing low-carbon fleet in operational activities.
4. Conducting energy conservation measures on the back of operational excellence and energy management system.
5. Preparing to participate in carbon trading and carbon offsetting program, including the utilization of the right technologies and implementation of Nature-based Solutions.

 

Adaro’s ESG Strategy Framework

 

Adaro’s ESG Strategy Framework was formulated to identify, address and manage Adaro’s ESG risks through ESG three components: environment, social and governance. The focuses and priorities for these three components are based on the materiality and relevance to the business. Adaro’s ESG Strategy Framework also includes “enablers”, or the measures set as the bases of the Adaro’s ESG roadmap, programs, and initiatives. In line with the current global trend, among Adaro’s priorities, the main focus is GHG emissions and energy performance management. 

 

Adaro’s mitigation measures:

1. Pioneering the use of biodiesel (B5) in operational activities in 2013, and since then Adaro has continued using biodiesel in accordance with the government program.
2. Reducing the use of fossil fuel through electrification and increasing the renewable energy consumption using solar PV – for operational activities and infrastructure facilities.
3. Conducting operational excellence and energy management programs.
4. Using renewable energy certificate (RECs) for carbon offset mechanism.
5. Executing carbon sequestration projects and watershed rehabilitation program.
6. Conducting revegetation and building energy garden.

 

Adaro is exploring the feasibility of the available technological options to ensure effective decarbonization measures, such as the technologies for low-carbon fuel and low-carbon fleets. Furthermore, Adaro will continue to monitor and keep up with the decarbonization technological advancement as a part of the measures to achieve its NZE commitment.