SIG Achieved Position of Top 10 Construction Materials Issuers with the Best ESG Ratings in Southeast Asia

PT Semen Indonesia (Persero) Tbk (SIG) is ranked as the first best ESG Rating in Southeast Asia for the construction materials category, through achieving the Medium Risk predicate with a score of 22.9 on the assessment performance of Environmental, Social, Governance (ESG) Ratings carried out by the international rating agency, Sustainalytics. The results of this assessment have been announced on the official Sustainalytics website.

The ESG Rating carried out by Sustainalytics is a reference for investors regarding the performance of issuers or public companies in the ESG aspect. The assessment is carried out to see the company's ability to manage risks and the impact of business operations on the environment, social and governance. Sustainalytics divides ESG Rating assessments into 5 categories, including Negligible Risk 0 - 10, Low Risk 10 - 20, Medium Risk 20 - 30, High Risk 30 - 40 and Severe Risk >40.

SIG President Director, Donny Arsal said, SIG is proud to be the best in implementing ESG in Southeast Asia for construction materials company category. This is a manifestation of SIG's commitment in implementing ESG-based best business practices to improve risk management capabilities, as well as optimize every potential that supports the Company's business growth. 

As a building materials company with potential risks, SIG places ESG factors as the basis of our operations and strengthens our commitment to improving sustainability performance by establishing the 2030 Sustainability Road Map and establishing a Sustainability Committee," said Donny Arsal.

SVP Sustainability Office SIG, Johanna Daunan explained, SIG Sustainability Road Map 2030 is a guide for all SIG business entities, which contains the Company's strategies, targets and initiatives in achieving sustainability. This roadmap serves as a guide in integrating sustainability into the Company's overall business strategy. 

"The Medium Risk predicate from Sustainalytics indicates that the implementation of ESG in SIG business operations is going well so that it is considered to have the ability to even achieve improvements in risk management. "This achievement will certainly further encourage us to accelerate the achievement of the sustainability targets set by the Company in the 2030 Sustainability Road Map," said Johanna Daunan.

In the environmental aspect, SIG focuses on reducing CO2 emissions, including through the use of alternative fuels from industrial waste, biomass, urban waste which is managed into refuse-derived fuel (RDF), hydrogen injection and thermal energy efficiency (STEC). SIG also supports the development of renewable energy through the use of solar panels to substitute electrical energy in operational units, as well as optimizing waste heat gas from the cement production process (Waste Heat Recovery Power Generation).

Through various efforts that have been carried out in 2023, SIG succeeded in reducing 17.37% CO2 emission intensity in scope 1 (from operations) compared to the 2010 baseline. Meanwhile in scope 2 (indirect energy use) it was successfully reduced by 5.22%.

Meanwhile, in the social aspect, SIG also contributes to improving the quality of life of the community through health programs to reduce stunting rates and community-based economic empowerment. Several of SIG's social innovation programs, such as the conservation of bilih fish, which is an endangered endemic species in Lake Singkarak, West Sumatra, and the management of post-mining land in Tuban, East Java, into an ecopark for agricultural education and community development, have succeeded in bringing SIG to the 2023 Gold PROPER from the Ministry of Environment. Life and Forestry.

SIG's concern for supporting economic improvement and the quality of education for communities around operational areas is carried out through various programs, including scholarship programs, education programs for orphans and disabled children, to company-based vocational education (Enterprise-based Vocational Education). SIG has also helped MSMEs to achieve next grade, including MSMEs that are members of Rumah BUMN SIG in Rembang, Central Java and Rumah BUMN SIG in Baturaja, South Sumatra. To date, these various programs have provided benefits to more than 7.2 million people.

While in the governance aspect, SIG is committed to implementing the principles of Good Corporate Governance (GCG) at every level of the organization and operational activities. This commitment is realized through employee competency development programs, the preparation of a Code of Conduct for all employees, as well as gratification control by achieving ISO 37001 certification regarding Anti-Bribery Management Systems.

In human resource development, apart from innovation programs, various training and scholarship programs for employees, SIG also ensures the implementation of the principles of equality and fairness, as well as the principle of equal opportunity in the human resource (HR) management process. Currently, 20% of the top talent at SIG are women. SIG provides equal opportunities to work and fill positions or positions according to employee capacity and competency without discrimination. 

"As the leading building materials solutions company in Indonesia, SIG is ready to become a role model for the industry in implementing ESG aspects to support the government in realizing sustainable development goals in Indonesia and the region," said Johanna Daunan.