Sustainability

AEI includes ESG considerations in its every action. AEI dedication to protecting the environment and improving environmental performance through the constant implementation of green initiatives is demonstrated by integrated mining operations that take into account the ideals of good mining practices and environmental protection.

Environment

AEI recognizes the urgency to address the impact of climate change on our business by ensuring we maintain the wellbeing of the environment and ecosystems. The focus areas under this Strategic Pillar are: “Managing greenhouse gas GHG and energy performance”, “Minimizing direct environmental impacts”, and “Preserving ecological functions.”

Social

AEI recognizes that our workforce is our most valuable asset. We also aim to improve our livelihoods by developing our business, therefore it is crucial for us to support and empower local communities. The focus areas under this Strategic Pillar are: “Caring for our community”, and “Empowering local communities”.

Governance

AEI aims to continuously uphold its business integrity as the company transforms its business model to achieve sustainable business. The focus areas under this Strategy Pillar are: “Promoting more sustainable businesses, products, and services” and “Contributing to a prosperous society”.

Values

AEI continues to instil the values of integrity, meritocracy, openness, respect, and excellence in our employees. These five core values serve as behavioural guidelines in the implementation of work activities. A series of compliance-based codes of conduct that define and guide the application of the company’s values and principles have also been formulated and announced. For further details, please visit the Code of Conduct page on our company website.

Material Topics

AEI has undertaken the identification of material topics, followed by a prioritization and validation process. Subsequently, a review was conducted, incorporating valuable input from stakeholders, particularly the OJK as the regulator. The list of material topics is as follows:

• Sustainability Vision & Mission & Strategy

Sustainability Vision

Our commitment to sustainability underpins our business approach. AEI is committed to managing ESG topics and issues with the UN SDGs as the driving force. We have formulated our ESG initiatives with the following vision:

“To Lead with Purpose Towards a Sustainable Future”

Sustainability Mission

1. Implement best practices in GHG and energy management.
2. Maintain low environmental pollution across our operations.
3. Achieve zero incidents related to occupational health and safety (OHS).
4. Secure long-term value for our stakeholders.
5. Support professional and personal development for our human resources.
6. Manage and implement corporate social responsibility (CSR) programs to support local community development.

Sustainability Strategy

1. Work inclusively, designating the community as a strategic partner and embracing all community groups.
2. Uphold local wisdom to ensure that programs are implemented according to needs, utilize community potential, and do not conflict with existing positive values in the community.
3. Build multi-stakeholder partnerships.
4. Directed towards the principle of sustainability through capacity building and institutional strengthening.
5. Ensure CSR programs are implemented in a transparent, accountable, effective, and efficient manner.
6. Share knowledge through local and national media.
7. Diversify into the green economy and embark on a carbon reduction journey.

• Culture of Sustainability (SDGs)

Developing a Culture of Sustainability

To support the national agenda for sustainable development, Adaro Group has developed a comprehensive sustainability program outlining the company’s commitment to sustainable development in the following areas. These programs are also part of our efforts to develop a culture of sustainability across all aspects of Adaro Group’s operations.

1. Implementation of Responsibilities Towards Consumers/Customers [SDGs 7 & 12]. We ensure to meet the satisfaction of our consumers/customers, including engagement, product delivery, and information, as well as compliance and respect for all mutually agreed terms and conditions.

   

2. Management and Implementation of Community Development Programs [SDGs 4, 6, & 11]. We recognize the significance of engaging with local communities and are committed to promoting social development in the areas where we operate. The company has implemented various community development programs, including educational and training initiatives, health and sanitation projects, and infrastructure development.

   

3. Environmental Management [SDGs 13, 14, & 15]. Adaro Group has implemented various initiatives to reduce its carbon footprint, including energy efficiency programs, the use of renewable energy sources, and good water and waste management practices.

   

4. Human Resource Management [SDG 8]. Our company’s human resources are of paramount importance to us. We invest in the development of our employees to realize and achieve our sustainability goals.

   

5. Occupational Health and Safety Management [SDG 3]. Community development will not be optimal without a safe place to grow. We ensure that our workplaces are safe and supportive.

   

6. Gender Equality Aspect Management [SDGs 5]. To achieve gender equality and empower all women, as well as to end all forms of discrimination against women, the Adaro Group has committed to creating an inclusive work environment, regardless of gender. In the composition of the Board of Directors and Commissioners in AEI, there is 1 woman out of 11 management positions, making the composition of women and men 9% and 91% respectively.