Registered in the ESG Quality 45 IDX KEHATI Index, PT Pertamina Geothermal Energy Tbk Demonstrates Commitment to Sustainability
Jakarta, May 30, 2024 – PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) continues to strengthen its commitment to becoming a world-class green energy company. The initiatives in upholding Environmental, Social, and Governance (ESG) principles in all its business and operational activities have successfully placed the company's shares, coded PGEO, into the ESG Quality 45 KEHATI index.
With this achievement, PGE's shares are listed among the 45 best stocks based on sustainability performance, company financial quality, and good liquidity. The ESG Quality 45 IDX KEHATI is one of two ESG-based indices launched by the KEHATI Foundation in collaboration with the Indonesia Stock Exchange on December 20, 2021. The selection process for issuers considers the implementation aspects of ESG within the company.
In an announcement on the Indonesia Stock Exchange released on Tuesday (28/5), PGE's shares were included in the ESG Quality 45 IDX KEHATI from June 3 to November 29, 2024. The composition of shares in the ESG Quality 45 IDX KEHATI Index will be reviewed and updated regularly in May and November.
President Director of PGE, Julfi Hadi, emphasized that sustainability and ESG aspects implementation are inseparable from the company's business operations and activities. “The ESG implementation is a continuous process. As a world-class green energy company, PGE is committed to consistently improving operational efficiency, enhancing environmental appreciation, improving the socio-economic conditions of communities around the company's operation sites, and upholding transparency and accountability,” said Julfi Hadi.
In 2023, PGE achieved notable success in the ESG sector. Based on rankings from Sustainalytics, PGE achieved an ESG score of 8.4 (negligible risk), placing PGE as the third company out of 701 with the lowest ESG risk in the utility sector. PGE also received the PROPER Gold award in several operational areas, namely the Kamojang Area with 13 consecutive Gold PROPER awards, the Ulubelu Area with two consecutive Gold awards, and one Gold award for the Lahendong Area. Additionally, PGE avoided emissions of up to 3.971 million tons of CO2 in 2023.
Further strengthening its commitment to clean energy development, PGE issued green bonds worth USD 400 million in April 2023, which were well received by global investors. The issuance of these green bonds was oversubscribed by 8.25 times or valued at USD 3.3 billion, showing positive sentiment and investor confidence in the potential for investment in the green energy sector, especially geothermal.
In the same year, the company also entered the Indonesian carbon market through the Pertamina New and Renewable Energy (Pertamina NRE) aggregator, with carbon credits from the Lahendong Geothermal Power Plant Units 5 and 6.
Julfi Hadi appreciates the KEHATI Foundation and the Indonesia Stock Exchange for recognizing the company's ongoing efforts in upholding ESG principles and its consistency in developing new and renewable energy.
“Being included in the ESG Quality 45 KEHATI Index is the beginning of a journey to consistently uphold ESG principles. We will continue to invest in the best technology to improve the efficiency and effectiveness of the company's operations and minimize the environmental and social impacts of our operations to build a sustainable future,” said Julfi Hadi.
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.**
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About PT Pertamina Geothermal Energy Tbk
PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) is part of PT Pertamina (Persero)'s Subholding Power & New Renewable Energy (PNRE), engaged in the exploration, exploitation, and production of geothermal energy. Currently, PGE manages 13 Geothermal Working Areas and 1 Assignment Working Area with a total installed capacity of 1,877 MW, comprising 672.5 MW operated and managed directly by PGE and 1,205 MW managed under a Joint Operation Contract scheme. The installed geothermal capacity in PGE's working areas contributes about 80% of the total installed geothermal capacity in Indonesia, with a potential CO2 emission reduction of approximately 9.7 million tons of CO2 per year.
As a world-class green energy company, PGE aims to create value by maximizing the management of end-to-end geothermal potential and its by-products and participating in national and global decarbonization agendas to support Indonesia's net-zero emission target by 2060. PGE has excellent ESG credentials, with 16 PROPER Gold awards from 2011 to 2023, recognizing the highest environmental compliance from the Ministry of Environment and Forestry's ESG Ratings & Engagement.