Show Sustainability Commitment, Pertamina Hulu Energi Successfully Wins ESG Medium Rating

Photo: Doc. Pertamina Hulu Energi

JAKARTA - PT Pertamina Hulu Energi (PHE), as Pertamina's Upstream Subholding, has successfully won the Environment, Social, Governance (ESG) rating of 21.5 or medium risk after going through an assessment process from the Institute of International Ratings, Sustainalytics. PHE managed to get the sixth rank out of 308 oil and gas producers globally. This success can be seen from the increase in ratings in 2022 where PHE won 30.5 or high risk.

Sustainalytics divides the value of ESG into five categories based on the company's performance in managing ESG risk and its business risk. Among them are 0 to 10 in the 'Negligible Risk' category, 10 to 20 in the 'Low Risk' category, 20 to 30 in the 'Medium Risk' category, and 30 to 40 in the 'High Risk' category, as well as 40 and above in the 'Severe Risk' category.

Sustainalytic conducted an evaluation of 11 ESG material issues consisting of 50 ESG indicators with a total of 301 sub indicators. Of the 301 sub indicators, there are 189 sub indicators of environmental aspects (environment), 73 sub indicators of social (social) and 39 sub indicators of governance.

Exploratory activities and oil and gas production are high-risk activities, the smaller the value score obtained the better because it shows that the company has been able to manage ESG's risk and material issues very well. PHE is considered to have committed to implementing the principle of sustainability in all environmental, social and governance aspects. The assessment of the ESG rating affects the company to continue to maximize its steps towards a sustainable company.

PHE's VP HSSE, Geri Simansyah Achsan, revealed that achieving the PHE ESG rating is a form of the Company's commitment to industrial sustainability from the ESG pillar.

Some assessments include aspects of management and reduction of GRK emissions, water management, biodiversity, work safety, human capital, community relations, and business ethics. We also thank all stakeholders who always support PHE's performance," he explained.

PHE will continue to invest in upstream oil and gas operations and business management according to Environmental, Social, and Governance (ESG) principles. PHE has been registered with the United Nations Global Compact (UNGC) as a member since June 2022. PHE is committed to Ten Universal Principles or Ten Principles of the UNC in its strategy and operations, as part of implementing the ESG aspect.

Supporting the Government aspect, PHE is also always committed to Zero Tolerance on Bribery by ensuring that prevention of fraud is carried out and ensuring that the company is clean from bribery. One of them is the implementation of the Anti-Bribery Management System (SMAP) which has been standardized ISO 37001:2016.

PHE continues to develop prudent and excellent operation management at home and abroad professionally to realize the achievement of becoming a world-class oil and gas company that is Environmentally Friendly, Socially Responsible and Good Governance.