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PT PLN (Persero) continues to make significant strides in enhancing sustainability risk management within the electricity sector, focusing on Environmental, Social, and Governance (ESG) principles. In 2023, PLN achieved a remarkable reduction in its ESG risk rating by 8 points, dropping from 38.5 in 2022 to 30.3 in 2023, as assessed by Sustainalytics, marking the lowest rating among electricity utilities in the ASEAN region.
Darmawan Prasodjo, President Director of PLN, attributed these impressive ESG accomplishments to the company’s unwavering commitment to sustainable business practices. This commitment aligns with the government’s initiatives for a just energy transition towards achieving Net Zero Emissions (NZE) by 2060 and realizing sustainable development goals.
“We are gratified by the positive assessment of PLN’s commitment to ESG, resulting in an 8-point reduction in our ESG risk rating from 2022. However, this achievement motivates us to strive for continuous improvement,” remarked Darmawan.
Key factors contributing to PLN’s reduced ESG risks include robust climate change risk management, greenhouse gas emissions reporting, water management programs, talent development, cybersecurity initiatives (ISO 27001), and tax transparency measures.
In terms of decarbonization efforts, PLN successfully decreased Greenhouse Gas (GHG) emissions by 9.7 million tons of CO2e in 2023 compared to Business As Usual. Additionally, PLN’s Muara Karang Block 3 Gas and Steam Power Plant (PLTGU) is set to commence trading Emission Reduction Certificates (SPE) in October 2023, with a trading quota of 900 thousand tons of CO2e, positioning PLN as a major player in the carbon exchange market.
Furthermore, PLN added 296 Megawatts (MW) of new renewable energy-based generation in 2023 and utilized 1 million tons of biomass for co-firing coal-fired power plants, resulting in a reduction of 1.05 million tons of CO2e emissions.
In support of the electric vehicle ecosystem, PLN supplied electricity to 1,081 Electric Vehicle Charging Stations (SPKLU) units in 2023, with plans for further expansion.
To enhance transparency in ESG risk management, PLN released reports such as the Task Force on Climate-related Financial Disclosure Report, ESG Performance Report, and participated in initiatives like the Climate Disclosure Project (CDP) questionnaire on Climate Change and Water Security.
Darmawan emphasized PLN’s readiness to fulfill its mission of providing a sustainable living environment for future generations. To drive continuous improvement, PLN established a Sustainability Committee focusing on ESG, Energy Transition, and Enablers.
Looking ahead, Darmawan is committed to sustaining these efforts to achieve a lower ESG risk rating for PLN, targeting a rating below 30 by 2024.
“We approach ESG with utmost seriousness to ensure PLN’s resilience and prosperity. Through ongoing transformation, PLN remains steadfast in its commitment to shaping a sustainable future,” concluded Darmawan. |
