Pertamina Hulu Energi Gets BBB Rating From The International Rating Institute

Photo: Doc. Antara

JAKARTA - PT Pertamina Hulu Energi (PHE), Pertamina's Upstream Subholding, received a BBB rating from the MSCI ESG Research UK Limited international rating agency for its commitment to implementing Environmental, Social and Governance (ESG) principles in operational activities.

"For us, the BBB rating score has become an indicator of how the commitment to environmental and social management around our region operates. We also express our appreciation to all relevant stakeholders and we will continue to make this achievement a motivation to continue to improve sustainable programs through various innovations," said PHE Corporate Secretary, Arya Dwi Paramita in a statement in Jakarta, quoted by Antara, Monday, December 30.

The rating obtained by PHE on December 19, 2024 is the result of an assessment process carried out on various aspects of the company's ESG. MSCI ESG Research UK Limited conducted an evaluation based on data obtained from ESG information reported by the company, information from other sources (covering product risk data, macro risk, regulatory bodies, and events) and company characteristics (covering product segments, geography and other company characteristics).

MSCI ESG Research UK Limited divides the value of ESG into three categories based on the company's performance in managing ESG risks and business risks, namely the Leader, Average and Laggard categories. For the Leader category, MSCI divides the value of ESG into two rating score groups, namely AAA and AA.

Meanwhile, for the Average category, the assessment of the ESG rating score is divided into three groups, namely A, BBB and BB. As for the Laggard category, the assessment of the ESG rating score is divided into two groups, namely B and CCC.

Arya said oil and gas exploration and production activities are high-risk activities. The Leader category shows that the company has been able to manage ESG's risk and material issues very well.

For the Average category, it is a company with a diverse track record or both in managing ESG risks and opportunities.

Meanwhile, the Laggard category is a company that lags behind and fails to manage the risk of ESG compared to other companies in the same industry category.

VP HSSE Pertamina Hulu Energi (PHE), Degree Winawidhi Suganda emphasized that the HSSE function (Health, Safety, Security, and Environment) will continue to play an important role in supporting companies to achieve the ESG rating target.

"Through this role, HSSE supports the company to meet the ESG target, which ultimately increases the company's ESG rating and supports long-term sustainability," he said.