Sustainability Governance Environment Social NZE Statement Sustainability
Reports

Environment

  • Emissions

The Adaro Group proactively manages Greenhouse Gas (GHG) emissions and takes an active role in climate change mitigation. This management is not only a manifestation of environmental responsibility but is also recognized as a strategic step to ensure the long-term business resilience of the Adaro Group. The Adaro Group has focused its efforts on accelerating the transition to cleaner energy, with a significant expansion of its portfolio in the renewable energy, and green mineral sectors, under the Adaro Green and Adaro Minerals pillars.

In this context, the Adaro Group is committed to continuous innovation and investment in sustainable solutions to reduce environmental impact. The Company’s concrete measures include reducing energy consumption without compromising production levels, along with improving operational efficiency. We are working on improving coalfired power plants with co-firing trials and creating naturebased solutions using our land assets. The Adaro Group has also developed a Roadmap for GHG Emission Reduction by 2060 or earlier to achieve NZE. This roadmap is a crucial step in setting emission management targets. Thus, the Adaro Group not only makes a positive contribution to the environment but also builds a solid foundation for a sustainable and responsive business to the evolving global market demands for sustainability.

  

Emission Management

  • Development of a Carbon Reduction Roadmap

Adaro Group has designed a Carbon Reduction Roadmap that sets emission reduction targets for climate impact management. This step is taken through techno-economic and commercial analysis while maintaining our business growth. Currently, we have evaluated 11 of our subsidiaries and are committed to continuing the development of a carbon reduction roadmap for our other subsidiaries. Through these initiatives, the Adaro Group is actively contributing to environmental protection and achieving sustainability goals.

  

  • Installation of Emission Control Equipment

Various efforts are made to control emissions, including non-GHG emissions, such as:

  • Electrostatic Precipitator at MSW to control emissions, including non-GHG emissions.
  • Continuous Emissions Monitoring System (CEMS) which has been integrated with the Ministry of Environment and Forestry through the Continuous Industry Monitoring Information System (SISPEK)
  • Nozzle sprays to utilize runoff water to maintain ambient air quality.
  • Planting trees to reduce particulate exposure.

  

  • Use of Low-Carbon and Renewable Energy

Transition to clean energy sources is also an effort to diversify the energy supply, stimulate innovation in the energy sector, and enhance energy security by utilizing abundant renewable resources. We implement the use of low-carbon and renewable energy through various efforts, such as:

  • Since 2013, Adaro has been using 5% biodiesel (B5) fuel, which has been continuously increased to 35% biodiesel (B35) in 2023. This has reduced our GHG emissions by 34.98% compared to using pure diesel.
  • Installing solar PV expected to generate up to 749,294 kWh per year. This project can replace up to 200,000 liters of biodiesel per year and avoid emissions of up to 400 tCO2e per year. We plan to continue further development to generate up to 8 MWp.
  • Implementing the latest technology by conducting co-firing trials using approximately 5 tons/ day of organic waste pellets to substitute coal combustion in the MSW power plant.

 

  • Exploration of Nature-Based Solutions

In managing climate impacts, the Adaro Group also prioritizes Nature-Based Solutions (NBS), an approach or strategy that integrates ecosystems and natural processes to address environmental, social, or economic challenges.

PT Alam Sukses Lestari (Barito Lestari Forest Restoration Project BLFRP) with a concession area of approximately ±19,059 Ha and PT Hutan Amanah Lestari (Barito Lestari Peatland Project-BLPP) with a concession area of approximately ±25,804 Ha.

In accordance with the development of the green taxonomy regulations and the establishment of methodologies for calculating carbon emission reduction values, PT ASL and PT HAL are currently preparing Mitigation Action Plan Documents (DRAM), which are adjustments from the previously prepared Project Design Documents (PDD).

 

  • Other Efforts:
    • Implementing carbon sequestration projects, watershed rehabilitation, and revegetation to support the government’s environmental programs, as well as establishing energy plantations;
    • Preparing for the implementation of Carbon Economic Value (NEK);
    • Implementing programs for operational excellence and energy management.

Adaro assessed the feasibility of available technology options to ensure effective decarbonization measures, such as low-carbon fuel and low-carbon operational fleet technologies, carbon removal, and renewable offset mechanisms (carbon credits and renewable energy certificates). Furthermore, Adaro will stay abreast of and adopt decarbonization technology advancements to support the achievement of its NZE commitments.

 

Water and Waste Management

  • Water Management

The protection of water resources plays a central role in maintaining the sustainability of ecosystems and meeting human needs. Recognizing the importance of water resources, the Adaro Group has taken concrete measures to ensure responsible water management in compliance with applicable laws and regulations. We carefully manage water withdrawal to maintain the water balance in the surrounding environment. Through a comprehensive water management approach, the company ensures efficient water use and takes action to prevent water scarcity.

 

  • Waste Management

Proper waste management is key to reducing environmental impact and maintaining the sustainability of the industry. Therefore, AEI emphasizes compliance with applicable environmental regulations and standards in Indonesia and the places where we operate, in addition to adopting the latest innovations and technologies in waste management to minimize its negative impacts. We also prioritize the 3R concept (reduce, reuse, recycle) in our waste management. Regarding waste management, our approaches are as follows:

  • Utilizing organic waste as livestock feed for the community.
  • Composting waste as fertilizer for reclamation activities.
  • Repurposing usable solid waste residues for operational activities.
  • Disposing non-recyclable inorganic solid waste and residues to the Landfill (TPA).
  • Collecting and monitoring waste data using an online database inventory known as Adaropedia.

 

  • Biodiversity and Land Management, Reclamation & Rehabilitation

The Adaro Group recognizes that preserving biodiversity and ecosystem health is a crucial step on the journey towards sustainability. The company has embedded a strong commitment to environmental stewardship as an integral part of its principles. Recognizing the significance of environmental conservation, the Adaro Group has incorporated biodiversity and ecosystem health aspects into its corporate framework. This includes improvements in environmentally responsible mining practices, the implementation of the latest technologies to minimize impacts, and collaborations with ecological experts and stakeholders to design sustainable solutions. We are committed to continuously refining our practices to make a positive contribution to global biodiversity and conserve ecosystems that provide fundamental support for life.

The Adaro Group ensures compliance with environmental regulations and monitors biodiversity in reclaimed operational areas, areas undergoing reclamation, and the Paringin biodiversity zone. Various policies and activities undertaken to preserve biodiversity include: 

  • Developing sustainable biodiversity strategies, plans, and programs.
  • Identifying biological resources within operational areas;
  • Determining species to be protected or conserved;
  • Identifying processes and activity categories that have or are expected to have significant impacts on biodiversity.
  • Regularly monitoring and overseeing species and biodiversity; and
  • Enhancing the conservation status of biodiversity of species identified as critical biological resources by conducting ongoing reviews and improvements to our biodiversity protection programs.

 

Mining Areas and Biodiversity

In managing biodiversity, the Adaro Group involves local communities, government agencies, and other stakeholders to understand their concerns and expectations, as well as to collaborate in addressing them. In particular, we conduct intensive biodiversity management in AMI mining areas, rich in various flora and fauna species. Regular monitoring is carried out every six months by a third party to monitor our mining area. In addition, employees and business partners also carry out biodiversity observations (OKEHATI) throughout the year.

The Adaro Group has a Biodiversity Monitoring Program (BMP). This program involves regular monitoring of species diversity, populations, and habitats in an area to identify changes, evaluate the impacts of human activities, and design better conservation strategies. This is based on various international standards, best practices, and studies such as:

  • EIA 2006;
  • Social Economic Baseline Study 2006 and 2008;
  • Social Economic Opportunity Assessment for the Lampunut Project 2015;
  • Environmental Management and Monitoring Reports 2009-2022;
  • Independent monitoring reports (OKEHATI);
  • Directly obtained data such as limited stakeholder discussions and field surveys
Last modified on July 1, 2024, 2:48 pm | 10233
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