Pertamina is creating a better world through its efforts to address climate change, reducing its environmental footprint and protecting biodiversity. This is its latest initiative rooted in the increasing demand for environmental, social and governance (ESG) business implementation globally. Additionally, Pertamina encourages the need to increase NRE from 9.2 percent in 2019 to 17 percent in 2030 by expanding the green energy portfolio.

Pertamina’s Environmental initiatives

"To be able to provide significant results in mitigating climate change, with the current business pattern, the global oil and gas sector must reduce emissions by at least 3.5 gigatons of carbon dioxide equivalent [GtCO2e] per year by 2050," said Nicke Widyawati, President director and CEO of Pertamina.

In order to achieve this, Pertamina has launched a number of initiatives, such as realizing the target of generating 10 gigawatts (GW) of renewable energy from renewable energy sources by 2026. Moreover, the company is developing carbon capture utilization and storage (CCUS) projects, continuing the clean energy development in geothermal operations, building 99 green energy stations (GES) with a green, future, digital and high-grade fuel concept and up to 5000 gas stations with solar panels throughout Indonesia. Furthermore, the company is installing solar panels for internal power use throughout its operational areas.

“The application of CCUS technology is part of Pertamina's energy transition to a clean energy agenda. This low-carbon technology will support Pertamina's business sustainability in the future. The implementation of carbon capture technology is part of Pertamina's eight-item green energy transition agenda, which will ensure business sustainability in the future," Nicke added.

In order to fully support the government’s goal, the company has conducted studies into net-zero emission strategies and carbon dioxide monetizing schemes. In terms of energy efficiency, the company consistently improves its energy efficiency from year to year. As of 2020, it was recorded at 92.57 million gigajoules (GJ).

Pertamina has also remained dedicated to its flora and fauna conservation program, including the preservation of 87 endemic animal species, most of which are in critical condition, and the conservation of 52 endemic plant species.

"We have committed to becoming an environmentally friendly company. We want to become a part of the global effort to combat climate change," said Nicke.

Pertamina’s social and governance Initiatives

As part of the ESG's social aspect, Pertamina is focusing on five areas, namely health and safety, prevention of major accidents, employee recruiting, development and retention, innovation and research and community engagement and impact. Whereas in governance, Pertamina focuses on cybersecurity and corporate ethics.

In relation to health and safety, Pertamina is aiming for zero accidents and runs a contractor safety management system (CSMS) for contractors. The company has also been supporting the handling the COVID-19 pandemic in the country by building a COVID-19 special hospital in Simprug, Tanjung Duren, and Wisma Haji Pondok Gede, in Jakarta, and providing vaccinations for all its employees. The death rate in the Pertamina Group was recorded at 0.76 percent, far below the national level recorded at 3.73 percent as of October.

Moreover, Pertamina strives to provide a workplace without discrimination and free from harassment, provide salaries and remuneration above the regional minimum wage and empower the younger generation by employing 17.5 percent of leaders under 40 years old at management levels.

For training and education, the company carries out initiatives, such as targeting 250 hours of training per employee, which started in 2021, and implementing corporate social responsibility (CSR) programs, as well as providing a health, safety and environment (HSE) training center, maritime training center and the CSR program at the company's university.

Pertamina also applies a zero gender pay gap ratio in support of gender equality, and implements recruitment programs for persons with disabilities. A number of initiatives carried out include the representation of 33.3 percent of women on Pertamina's six boards of directors, and 16 percent of women at the management level, an initiative run by the Empowerment of Women Employees (Pertiwi) program.

Other initiatives run by the company include empowering MSMEs through partnership programs and maintaining good relations with law enforcement and related agencies rooted in their complaint handling and management.

The most essential initiative has to be the New Pertamina Clean Charter, which was signed by all of the company's board of directors and board of commissioners. This declaration is a commitment to implementing an anti-bribery management system, in line with clean Pertamina values, namely managing the company professionally, avoiding conflicts of interest, not tolerating bribery, upholding trust and integrity and adhering to the principles of good corporate governance.

"This New Pertamina Clean [Charter] is expected to be implemented into a new culture and values ​​to enrich, and perfect, Pertamina's people who have integrity, are clean and transparent," said Nicke.

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