Reduce Emissions by 21 Percent, SIG Wins ESG Award 2026 from KEHATI

Photo: Dok. Semen Indonesia Group (SIG)

JAKARTA - Low-carbon cement innovation and consistency in reducing emissions have led PT Semen Indonesia (Persero) Tbk (SIG) to receive the 2026 ESG Award from the KEHATI Foundation. SIG is considered to show a strong commitment to implementing the principles of Environmental, Social, and Governance (ESG), especially through the development of more environmentally friendly building materials products.

The award was given to SIG which was included in the Capital Market Sector, Listed Company Category. The award trophy was handed over by the Minister of Environment/Head of the Environment Control Agency, Mohammad Jumhur Hidayat, to Pgs Group Head of Strategic Growth & ESG SIG, Muhammad Taqiyuddin, at Soehanna Hall, Energy Building, Jakarta, Thursday, August 6.

SIG's Corporate Secretary, Vita Mahreyni, said the award from KEHATI further confirms that the implementation of ESG has become part of SIG's business strategy, as well as encouraging the Company to provide building material solutions with a lower carbon footprint.

"The application of the ESG principle is the foundation for SIG in carrying out business operations. This commitment is based on the awareness that ESG is not merely fulfilling regulatory obligations, but is a competitive advantage for the Company's future success. The achievement of the 2026 ESG Award shows that the application of ESG at SIG is going well," said Vita.

One of the manifestations of this commitment is the development of green cement, which is produced through the use of more environmentally friendly materials and processes. Supported by continuous research and development, SIG's green cement products have carbon emissions up to 38 percent lower than conventional cement, while still meeting quality standards as provided for. SIG is also accelerating the decarbonization of the production process through increased use of alternative fuels derived from industrial waste, biomass, to urban waste that is processed into refuse-derived fuel (RDF).

Throughout 2025, the utilization of SIG alternative fuels increased by 24% to 681 thousand tons. This use is equivalent to reducing coal consumption by 467 thousand tons and encouraging the thermal substitution rate (TSR) to reach 9.77 percent.

On the energy side, SIG continues to expand the use of cleaner energy sources through the installation of solar panels at various operational units as well as the use of Waste-Heat Recovery Power Generation (WHRPG) technology that converts waste heat from the production process into electricity.

These various efforts contributed to a reduction in the intensity of greenhouse gas (GHG) emissions Scope 1 by 21 percent compared to the 2010 baseline, as well as a reduction in Scope 2 emissions by 15 percent compared to the 2019 baseline.

"To ensure that the implementation of ESG runs consistently, SIG has a Sustainability Roadmap 2030 which serves as a reference in determining sustainability strategies, indicators, and targets. Its implementation is also monitored through the Sustainability Committee which ensures that sustainability aspects are integrated into the Company's business management," said Vita Mahreyni.

This consistency is also reflected in the assessment of external institutions. SIG achieved an ESG Rating 2025 with the Medium Risk rating and a score of 25 from Sustainalytics, which reflects the Company's ability to manage potential ESG risks and impacts from its operations.

SIG also obtained a score of 49 on the S&P Corporate Sustainability Assessment (CSA) and S&P ESG Rating, which is one of the Company's performance indicators in managing environmental, social, and governance aspects.

Meanwhile, the ESG Award by KEHATI is an appreciation event for companies, financial institutions, investors, and business actors who show leadership in the implementation of ESG and provide an impact on sustainable development in Indonesia. The assessment process is carried out through a number of stages, ranging from administrative selection, substantive evaluation, scoring according to categories, to the Plenary Session by the Jury Board.

This award also strengthens the sustainable investment ecosystem developed by KEHATI. Since launching the SRI-KEHATI index with the Indonesia Stock Exchange in 2009, KEHATI has continued to develop ESG-based investment instruments, including the ESG Sector Leaders IDX KEHATI and ESG Quality 45 IDX KEHATI indices introduced in 2021.

"All of these achievements are motivation for SIG to continue to accelerate the sustainability targets that have been set in the Sustainability Roadmap 2030, as well as strengthening the Company's contribution to the realization of sustainable development in Indonesia," said Vita Mahreyni.