Pertamina’s ESG Rating Rises, Becomes World’s Number One

Jakarta, December 8, 2023 - The Environmental, Social, and Governance (ESG) Risk Rating of PT Pertamina (Persero) has risen to become number one globally in the Integrated Oil and Gas sub-industry. Pertamina leads with the highest score among 61 global companies, according to the ESG Rating Institution Sustainalytics. Pertamina's score as of December 1, 2023, stands at 20.7 (Medium Risk), increasing from the previous 22.1 (Medium Risk). The lower Sustainalytics score reflects a better risk level.

With the released rating and score in December 2023, Pertamina is evaluated to be at a Medium risk level in managing ESG-related factors.

President Director of Pertamina, Nicke Widyawati, stated that Pertamina remains committed to becoming a environmentally friendly world-class energy company by implementing Environmental, Social, and Governance (ESG) aspects to support the Net Zero Emission 2060 target or earlier.

"This success is a gift for Pertamina as we celebrate our 66th anniversary. The improvement in the global ESG ranking serves as a driver for Pertamina to continue delivering positive impact and benefits for the society, the environment, and the future of Indonesia and the global community," said Nicke.

Nicke added that Pertamina continues to fulfill its three major roles as a national energy company: maintaining national energy resilience, transitioning through clean and renewable energy, and actively contributing to achieving NZE.

Pertamina also continues various decarbonization innovations by producing environmentally friendly energy that positively impact the company's ESG performance. Additionally, Pertamina continues to strengthen workplace safety, corporate governance, community empowerment, and MSME (Micro, Small, and Medium Enterprises) development.

"Pertamina will continue to solidify its position as a leader in Indonesia's energy transition by harnessing its natural resources to drive sustainable and environmentally friendly business," Nicke emphasized.

For reference, the ESG Risk Rating by Sustainalytics measures a company's exposure to material ESG risks for each industry, as well as how well the company manages these risks, providing a quantitative measure that can be compared across all industries.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, added that in the Sustainalytics assessment process, there are at least 11 aspects to focus on, including E (environmental) aspects such as emissions, waste, carbon, and biodiversity. Meanwhile, S (social) aspects are related to human resources in Pertamina, health and safety at work, and relationships with the surrounding community. Regarding G (governance) aspects, they are linked to governance, bribery and corruption, and business ethics.

"Pertamina has demonstrated good implementation that follows the international standards in the assessment parameters. Furthermore, the increase in this ESG score reflects an improvement in Pertamina's ESG implementation compared to previous years," explained Fadjar.

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, and Governance (ESG) implementation across all Pertamina's business lines and operations.