ESG Performance, Pertamina's Decarbonization Exceeds 124% Target
Jakarta, January 18, 2024 - PT Pertamina's (Persero) Environmental, Social, and Governance (ESG) performance shines brightly following the decarbonization innovations implemented throughout 2023, surpassing set targets. The emissions reduction realization in Pertamina's scope 1 & 2 reached 124%, exceeding the 2023 target. By December 2023, Pertamina had successfully decarbonized 1.13 million tons of CO2e, surpassing the 910 thousand tons CO2e target.
Decarbonization within the Pertamina Group is a collective effort involving all sub-holdings, with the Upstream Sub-holding (SHU) being the largest sub-holding, successfully reducing scope 1 & 2 emissions in the Pertamina Group.
The 2023 ESG achievements are also marked by Pertamina's rise in ESG rankings, securing the first position in the Integrated Oil and Gas subsector among 61 global companies, based on the rankings by ESG Rating Sustainalytics. Pertamina's ESG score at the end of 2023 increased to 20.7 (Medium Risk) from 22.1. This lower Sustainalytics score reflects a lower level of risk.
Fadjar Djoko Santoso, Vice President of Corporate Communication of Pertamina, stated that Pertamina's impressive ESG performance through decarbonization innovations is Pertamina's tangible expression to support the government's goal to achieve net-zero emissions (NZE) by 2060.
"In supporting ESG performance, Pertamina is focusing on two pillars: decarbonizing emissions from business activities and building green businesses that generate clean and environmentally friendly energy," Fadjar said.
Fadjar added that Pertamina continues implementing various decarbonization innovations by producing environmentally friendly energy that positively impacts the company's ESG performance, leading to Pertamina being the world's number one company in ESG performance.
A significant innovation implemented by Pertamina in decarbonization is the Carbon Capture Storage (CCS)/Carbon Capture Utilization and Storage (CCUS) technology adoption, including the inaugural CO2 injection at the Pertamina EP Jatibarang Field in Indramayu, West Java, and the Sukowati Bojonegoro Field in East Java. The decarbonization potential across several other oil and gas fields is currently in the study stage.
"Indonesia has significant potential in CCS/CCUS and could be the direction of Pertamina's future business," Fadjar added.
Pertamina's Decarbonization efforts extend beyond scope 1 & 2, including the emissions reduction in scope 3 through the B35 distribution at 119 TBBM locations throughout Indonesia. Pertamina supports the government's program related to the implementation of B35 biodiesel. The implementation in 2023 refers to the Minister of Energy and Mineral Resources Decree No. 1.K/EK.01/MEM.E/202 regarding Amendments to the Minister of Energy and Mineral Resources Decree No. 295.K/EK/01/MEM/E/2022 concerning the stages of Utilization of Vegetable Oil-Based Biodiesel as a Blend of Diesel Oil within the Framework of Financing by the Palm Plantation Fund Management Agency.
In accelerating the energy transition, Pertamina has also operated downstream electric vehicle infrastructure through public electric vehicle battery swapping stations (SPBKLU) located at 25 locations in Jabodetabek.
Pertamina also took the initiative to introduce transitional energy utilization to the public through clean energy innovations based on village-based programs in the Independent Energy Village Program (DEB). By the end of 2023, Pertamina has developed 85 DEBs throughout Indonesia until December 2023, wherein these DEBs, rural communities can use clean energy as a source of their activities, thereby enhancing energy efficiency, boosting the village economy, and even reducing emissions.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**