Indonesian energy company PT Pertamina (Persero) has said that its approach to and performance in managing sustainability is already on the right track.
“In general, Pertamina’s sustainability performance is very good and it’s on the right track,” said Leodan Haadin, vice president of health, safety, security and environmental (HSSE) Policy, standard & risk management system, PT Pertamina (Persero), during a talk show at the Indonesia Pavilion on the sidelines of the 26th UN Climate Change Conference (COP26) in Glasgow, Scotland, on Wednesday.
Pertamina’s sustainability performance has been measured using the ESG performance rating, said Haadin. ESG uses three essential factors — environmental, social, and governance — to assess the sustainability and performance of a company, he explained.
“The implementation of the ESG rating measurement aims to determine Pertamina’s sustainability risk because there is expectation from the stakeholders,” Haadin said.
“In 2021, Pertamina voluntarily found out about the environmental social and governance (ESG) rating. The implementation was carried out by one rating agency… The result is that Pertamina has been included in the ‘medium risk category’ with a score of 28.1,” he informed.
Such an ESG rating score has put Pertamina 15th out of 2,251 companies worldwide, he said.
“Officially, among world oil and gas companies, Pertamina (ESG) is ranked 7th,” Haadin said.
Pertamina is ranked 49th out of 100 companies (based on ESG rating) on the aspect of climate and energy for oil and gas companies measured by the World Benchmarking Alliance, he added.
Furthermore, Haadin also pointed out that ESG alignment can bring some benefits to businesses. For instance, he said, good ESG quality can help companies to expand financing options and develop a competitive advantage, which can drive out business performance.
Pertamina’s sustainability strategy has been translated into 10 ESG Focuses, each of which is aligned with sustainable development goals (SDGs) and has a primary target, he added.
Those 10 ESG Focuses are addressing climate change; reducing the environmental footprint; protecting biodiversity, health, and safety; prevention of major accidents; employee recruiting, development, and retention; innovation and research; community engagement and impact; cybersecurity; and corporate ethics, he said.
Source: Antara News