“Running a business or investment based on the Environmental, Social and Governance (ESG) principles is increasingly becoming a global necessity, and Pertamina, Indonesia’s national energy company, is taking the initiative in this area to help create a better world,” President Director and CEO of PT Pertamina Nicke Widyawati stated in Jakarta, Wednesday.
In terms of its environmental endeavors, Widyawati noted that Pertamina zeroes in on three key areas: addressing climate change, reducing its environmental footprint, and protecting biodiversity.
As part of its corporate social responsibility efforts, Widyawati noted that the company concentrates on five elements: health and safety; prevention of major accidents; employee recruitment, development and retention; innovation and research; and community engagement and impact.
“On the governance front, its focuses on cyber security and corporate ethics,” she affirmed.
Widyawati also remarked that Pertamina is at the forefront of supporting the Indonesian government’s policies targeting emission reduction. These encompass reducing overall greenhouse gas emissions by 29 percent and eliminating 314 million tons of CO2 equivalent in the energy sector by 2030.
“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 per year by 2050,” Widyawati emphasized.
Pertamina’s initiatives designed to realize the target of 10 gigawatts of new and renewable energy (NRE) produced by 2026 include: the development of carbon capture, utilization, and storage (CCUS) projects, such as those in the Sukowati and Gundih oil and gas fields; continued development of clean energy mechanisms in geothermal operations; building 171 Green Energy Stations with green, future, digital and high-grade fuel concepts and continuing efforts to build five thousand gas stations with solar panels across Indonesia; and installing solar panels, with a total capacity of 910 MW by 2026.
“The application of CCUS technology is part of Pertamina’s transition to clean energy. This low-carbon technology will support Pertamina’s business sustainability in future,” Widyawati stated.
In addition, she highlighted that Pertamina had consistently improved energy efficiency with each passing year to achieve its greenhouse gas emissions reduction targets.
The company also has in place a flora and fauna conservation program that aims to preserve 87 endemic animal species, most of which are critically endangered, and 52 endemic plant species.
Social Progress
In the areas of health and safety, Pertamina continuously targets zero accidents and operates a stringent contractor safety management system (CSMS).
During the pandemic, for instance, the rate of positive COVID-19 cases at Pertamina had reached 0.21 percent, lower than Indonesia’s national average of 0.8 percent, while the death rate stood at 0.76 percent, far below the national average of 3.37 percent, with all figures as of October 2021.
“Other initiatives include free vaccinations for all employees; building three hospitals for emergency COVID-19 treatment in Simprug, Tanjung Duren and Wisma Haji Pondok Gede, Jakarta, and applying the CSMS to all suppliers and contractors,” Widyawati remarked.
As part of its commitment to prioritizing employee welfare, she noted, Pertamina endeavors to provide a discrimination- and harassment-free workplace in addition to offering salaries and other forms of remuneration, including pension plans, that are above the regional minimum wage.
The company also supports diversity and inclusion, as well as gender equality. It applies a zero-gap gender pay ratio, and one-third of the Board of Directors are women, while 16 percent of the management roles across the entire company are held by women.
“Moreover, 17.5 percent of the management roles are held by people under 40 years of age, while the company has also implemented recruitment programs for people with disabilities,” she affirmed.
Pertamina also actively recognizes the importance of training and education, recording a total of 2.5 million learning hours for employees in 2020 and targeting 250 hours of training per employee per year from 2021. Other education and training resources include the company’s university; a health, safety and environment training center; a maritime training center; and the CSR program Pertamina Cerdas.
The company also implements a community CSR program as well as its Small Medium Enterprises & Partnership Program.
Related news: Supporting ESG: Pertamina to allocate nine percent of Capex for NRE
Related news: Pertamina ensures energy supply amid Christmas 2021, New Year 2022
Related news: Pertamina aiming to become sustainability-driven energy player
Reporter: Azis Kurmala
Editor: Sri Haryati
Copyright © ANTARA 2021
