Sido Muncul Has Dropped 89 Percent Of Carbon Emissions By 2024
JAKARTA - PT Industri Jamu and Pharmacy Sido Muncul Tbk (SIDO) is recorded to have reduced 89 percent of carbon emissions by 2024 compared to the level of 2021. This decline exceeds the target that the company has targeted.
Citing the Company's 2024 Sustainability Report, SIDO's greenhouse gas (GHG) emissions originating from production activities and supporting facilities in 2024 are perched at 1,773 tons of equivalent CO2. This volume is 89 percent lower than the position in the underlying year 2021 of 15,494.9 tons of equivalent CO2. This percentage of decline is also higher than the target set by Sido Muncul.
The issuer with the stock code SIDO previously targeted a percentage decrease of 14% compared to 2021.
"Emission reductions reaching 89% in 2024 are largely due to the application of the Renewable Energy Certificate (RECs)," management wrote in the sustainability report, quoted Tuesday, April 22.
For the record, Sido Muncul has indeed agreed to purchase 100% of electricity from new renewable energy with the PLN for the Renewable Energy Certificate (REC) scheme.
SIDO management said the purchase of electricity requires greater costs, but contributes significantly to reducing the resulting emissions, especially for coverage 2 emissions. Coverage 2 emissions are indirect emissions originating from energy plants purchased by the company.
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In addition to the renewable energy supply from PLN, Sido Muncul has also installed a Roof Solar Power Plant (PLTS) installation at the main production facility in Semarang, Central Java. The investment for the installation of PLTS is worth US$2 million or around Rp32.7 billion.
The financing itself is carried out with a performance base rental scheme, in collaboration with SUN Energy. The potential reduction in carbon emissions from the Roof PLTS reaches 1,980 tons per year and supports saving electricity usage costs.
In line with this, Sido Muncul's contribution to the use of renewable energy throughout 2024 reached 68 percent outside of REC. This percentage is higher than the basis year 2021 of 47 percent.