TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
PT Vale Indonesia receives medium ESG risk rating from Sustainalytics
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
M
arking its commitment to sustainability, PT Vale Indonesia has received a revised environmental, social and governance (ESG) risk rating of 29.4 from Sustainalytics, placing the company in the medium ESG risk category.
A substantial improvement from its previous classification as high ESG risk, Vale Indonesia’s latest ESG score is the lowest for a nickel mining company in the nation, ranking 27th out of 195 global companies in the diversified metals and mining category.
Out of a total of 238 diversified metal companies globally rated by Sustainalytics, fewer than 20 percent have achieved a medium, low or negligible ESG risk rating.
“This is a proud moment for Vale Indonesia as we continue to embed sustainable practices across all aspects of our operations,” said Bernardus Irmanto, chief sustainability and corporate affairs officer of Vale Indonesia.
“Our improved ESG rating is not only a reflection of our progress, but also a commitment to the future. We are determined to drive down ESG risks even further and continue playing a pivotal role in Indonesia’s sustainable mining landscape.”
A medium-risk rating by Sustainalytics, especially in the diversified mining industry, represents a significant achievement given the industry's inherently high exposure to ESG risks.
The rating signals to investors that the company is proactively addressing ESG issues and is well-positioned to enhance its performance further, with manageable gaps that offer opportunities for continuous improvement and long-term sustainability.
To address these challenges, Vale Indonesia has implemented several key initiatives, including environmental stewardship through progressive reclamation efforts and biodiversity conservation. In addition, the company’s use of hydropower and commitment to decarbonization play a vital role in reducing greenhouse gas (GHG) emissions.
In connecting with local communities, Vale Indonesia has invested in local community programs that promote economic growth, education and healthcare, ensuring that its operations contribute positively to the development of the regions where it operates.
In line with global governance practices, Vale Indonesia is also actively strengthening its governance frameworks to comply with global standards, enhancing transparency and accountability across all levels of the organization.
“We will continue to raise the bar on sustainability in Indonesia’s mining industry,” added Bernardus. “This is not just about meeting expectations; it is about creating lasting positive impact for our environment, our people and our country. This result is valuable feedback for Vale Indonesia and an opportunity to be recognized on the global stage.”
