Sustainability Governance Environment Social NZE Statement Sustainability
Reports

GOVERNANCE

 

Under Governance, AEI aims to maintain our business integrity as the company transforms its business model to secure business resilience. We chose governance over profit to highlight that we believe the success of AEI extends beyond financial gain, but it is about serving a greater purpose: contributing to national development, supplying energy demand, supporting Indonesia’s climate targets and ambitions, and maintaining an ethical, transparent, and sustainable business. Focus areas under this Strategy Pillars are ‘Promoting More Sustainable Business, Products and Services’ and ‘Contributing to a Prosperous Society’.

CORPORATE GOVERNANCE

AEI Corporate Governance Structure

Law No. 40 of 2007 concerning Limited Liability Companies which has been amended by the Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (referred to as the "Company Law") is cited in the requirement of company governance structure. The General Meeting of Shareholders (GMS), the Board of Commissioners, and the Board of Directors make up the main bodies of AEI's governance structure. These bodies are supported by a number of supporting roles like Internal Audit and Corporate Secretary.

According to the governance system and the Company Law, the Board of Directors (BoD) makes daily operational decisions, with the Board of Commissioners (BoC) serving as a supervisor and the General Meeting of Shareholders (GMS) as the highest decision-making body and it has all the authority which is not vested with the BoD and/or BoC. The primary bodies are supported in carrying out their duties and are provided with the relevant GCG instruments from AEI, such as the Charters for the BoC, BoD, and Audit Committee. The primary bodies established the Code of Conduct, Corporate Values, as well as other operational policies which supports consistent and sustainable implementation of Good Corporate Governance (GCG). The Corporate Secretary Division is responsible for promoting the implementation of GCG. The Corporate Secretary actively communicates with all members of the BoD and other corporate functions’ personnel and is immediately accountable to the Chief Financial Officer and Director.

SUSTAINABILITY GOVERNANCE

Board of Commissioners

The Board of Commissioners (BoC) supervises the Board of Directors (BoD) and grants permission for risk management and sustainability-related strategy.

Board of Directors

The BoD oversees all business sustainability management, including risks linked to climate change. The BoD monitors sustainability-related risk management, reviews sustainability-related company goals, and oversees the integration of sustainability-related problems, risks, and opportunities into strategic planning and decision-making.

Sustainability Management Committee

  • The Sustainability Management Committee consists of two directors, newly established ESG Division, the head of Corporate Social Responsibility (CSR); Human Resources (HR); Health, Safety, Environment and Risk Management (HSE&RM); Finance; and Legal Divisions. The ESG Division acts as the lead of this committee.
  • The Sustainability Management Committee assists the BoD in setting the strategic direction for sustainability policies and management.
  • In addition, The Committee implements the sustainability policies and management by coordinating with corporate function, as well as evaluate the corporate sustainability performance.
  • The Committee has a hands-on approach in determining basic policies, monitoring execution, and reviewing the effectiveness of the strategy to ensure it is consistent with the Company’s business strategy and objectives. The Committee also discusses the necessary next steps in the sustainability journey.

Independent Experts

Independent experts are experts in the sustainability field from outside AEI who are dedicated to providing advice regarding sustainability which is suitable for AEI’s business.

Corporate Functions

Corporate functions integrate sustainability-related decisions into their work to ensure the KPI is achieved as well as monitor the business unit in the KPI implementation.

Business Units

Business units carry out the assigned KPIs and integrate sustainable approaches into their business operations.

RISK MANAGEMENT

At AEI, each work unit participates in the corporate-level risk management system in an integrated manner with the goal of preserving and enhancing the organization’s or company’s value. Managing risks and exploiting opportunities are an integral part of AEI business activities. Within the AEI group, risk and opportunity management plays an important role in our internal business planning. AEI’s business involves processes from pit to power and is exposed to a wide range of external and internal influences. There are many risks that all management levels across the AEI Group need to manage in a structured and consistent manner to achieve business targets and objectives to create value to our shareholders. Every business decision is therefore based on the associated risks and opportunities.

STAKEHOLDER ENGAGEMENT

The ability to build harmonious relationships with all stakeholders is essential for the long-term viability of any firm. To support AEI Group's operational sustainability, to be able to grow together and contribute to economic development, and to improve the quality of life for people and the environment, AEI always maintains harmonious relationships with our stakeholders. As a result, AEI has made a point of carefully identifying the stakeholders who carry a weighted impact on our company’s sustainability, and we have worked to use all of our resources to try to live up to the stakeholders’ expectations. Customers, employees, communities, partners/suppliers, government/regulators, and community leaders/local officials are among the stakeholders.

Last modified on October 24, 2023, 3:58 pm | 8961