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Geothermal Power 

Pertamina Geothermal recognized for environmental, social sustainability efforts

November 17, 2023 Alterna Asia & Pacific, awards, community engagement, Environment, ESG, General, Geothermal, Geothermal Power, Indonesia, Julfi Hadi, Kamojang, Lahendong, panas bumi, Pertamina, Pertamina Geothermal Energy, PGE, PGEO, social engagement, social impact, Sustainability, Sustainalytics, Think GeoEnergy

Energy Disrupter

Pertamina Geothermal recognized for environmental, social sustainability efforts Lahendong Unit 5 and 6 geothermal power plants (source: Pertamina Geothermal Energy)

Pertamina Geothermal Energy has been assigned a rating of 8.4 by global ESG rating institution Sustainalytics, recognizing measures to eliminate ESG risks.

PT Pertamina Geothermal Energy (PGE) has been given a score of 8.4 based on Environment, Social, and Governance (ESG) practices by global ESG rating agency Sustainalytics. This corresponds to a “negligible risk” and makes the PGEO the highest-ranked utility company based on ESG in Indonesia and third globally.

This ESG assessment from Sustainalytics is the first ESG evaluation for the Company after becoming a public company by considering environmental, social, governance, and corporate governance aspects. The score indicates that the company has successfully eliminated ESG risks and that “PGE has integrated sustainability into its business operations,” as PGEO President Director Julfi Hadi said.

Sustainalytics is a global ESG rating institution that assesses the ESG risk exposure of companies conducting operations and business activities in certain industries. In conducting the ESG rating measurement and assessment, Sustainalytics measures a company’s exposure to material ESG risks in a specific industry and how well the company manages those risks.

Expressing his appreciation for the award and pride for the achievement, Julfi also reminded that this positive achievement is a responsibility that must be maintained and improved.

Lumut Balai Unit 1 geothermal power plant (source: Pertamina Geothermal Energy)

Julfi explained that PGE’s seriousness in the ESG aspect has been implemented in Lahendong, North Sulawesi. In this area, he said, PGE built the Mapalus Tumompaso Circular Economic System. This program has educated more than 1,400 local residents through the Tourism Village Business (SADEWI) program, Independent and Empowered Joint Business Group (KUBEMADA), Livestock Business with Renewable Energy, and Setor Jo Waste Bank.

“The Mapalus Tumompaso Circular Economy System has also empowered people to get side jobs and improve the regional economy,” he said.

Furthermore, Julfi stated that other ESG practices have also been implemented through the Kamojang Green Living Ecosystem (KANG ELIE) program in Kamojang, West Java. This program, said Julfi, is an innovative ecosystem for environmentally friendly community empowerment with three main values – green lifestyle, sustainability, and resilience.

“KANG ELIE has won the Gold Champion award for the Economy Element category in the 2023 Bisnis Indonesia Social Responsibility Awards (BISRA),” he said.

All of these ESG programs, Julfi said, are PGE’s dedication to advancing the sustainability agenda, with ongoing and future initiatives. “Everything aims to further improve ESG performance and provide value benefits to the environment and surrounding communities,” he said.

Source: Email correspondence

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