10 Companies Graduated from KADIN Net Zero Hub (NZH) Corporate Assistance Program (CAP), Showing Real Commitment of Private Parties in Decarbonization Efforts in Indonesia

The event was an appreciation event for companies that have completed the Corporate Assistance Program (CAP) under KADIN NZH. CAP is a 5-month intensive technical assistance program to help companies inventory and calculate greenhouse gas (GHG) scope 1, 2, and 3 emissions and commit to net zero. Scope 1 is direct emissions, scope 2 is indirect emissions from company consumption, while scope 3 is other indirect emissions generated in the company’s value chain.

CAP facilitates training, 1:1 consultations with mentors, industry best practice sharing sessions, pre-assessment, and guidance and tools that have been adapted to the Indonesian context.

“Many companies in Indonesia have done good sustainability practices. We hope that NZH and CAP can facilitate the good to become great, because they adopt internationally recognized science-based GHG accounting protocols and net zero emission targets,” said Nanda Noor as Sustainable Business & Corporate Engagement Manager of WRI Indonesia.

KADIN Net Zero Hub, which was launched in November 2022 at B20, is KADIN’s real effort in encouraging more private sector involvement in decarbonization. KADIN Indonesia collaborates with WRI, CDP, and IBCSD as key partners to develop KADIN NZH as a platform to build strategic partnerships and accelerate the net zero ecosystem in Indonesia.

“KADIN Net Zero Hub was established to help companies plan, implement, and report concrete actions in achieving net zero, one of which is through the Corporate Assistance Program (CAP) program that we are celebrating today. With this KADIN NZH platform, we hope that Indonesian companies can achieve net zero,” said Octavianus Bramantya as a member of the KADIN Net Zero Hub team.

In the CAP program, companies are assisted to adopt several international standards such as the GHG Protocol and Science-Based Targets Initiative (SBTi) framework. These targets are used to ensure that all company climate actions have a strong science base and are aligned with the 1.5 C pathway so as to reduce the possibility of worse impacts from the climate crisis.

“SBTi is a standard that has been used globally by more than 4,600 companies from various sectors. By aligning science-based emission reduction targets through SBTi, companies in Indonesia can not only contribute to climate change, but also open up various business opportunities and increase competitiveness with peers in the region and related sectors,” said Dedy Mahardika as SBT Engagement Manager, SEA and Oceania from CDP.

The companies that have completed the CAP program recognize that this mentoring is very important for the private sector in Indonesia. The ten companies are PT Ever Shine Tex Tbk, PT Pan Brothers Tbk, PT Chemstar Indonesia Tbk, PT Avia Avian Tbk, PT Omega Mas, PT Buana Triarta, PT Honicel Indonesia, PT Samora Usaha Makmur, PT Indo Oil Perkasa, and PT Hakiki Donarta. Among the 10 companies, there were 4 companies that successfully delivered science-based net zero commitments, namely PT Pan Brothers, PT Samora Usaha Makmur, PT Honicel Indonesia, and PT Ever Shine Tex. In addition, PT Indo Oil Perkasa as an MSME has successfully submitted a net zero target to be validated by SBTi.

“Both markets and investors are turning to businesses that are ambitious about climate change because it not only reduces environmental and social impacts, but also ensures the future viability of the business itself. By joining NZH, companies can get direct assistance to develop and initiate strategies in achieving climate targets, especially towards net zero,” said Indah Budiani as Executive Director of IBCSD.

Going forward, NZH Chamber of Commerce will continue the CAP program to help more companies reduce their carbon emissions. Currently, 80 companies have expressed interest and 68 of them have signed a memorandum of agreement to join KADIN NZH.

Below are excerpts from the companies that have joined the CAP program under KADIN Net Zero Hub:

Michael Sung, Director of PT Ever Shine Tex Tbk: “NZH CAP helps us to analyze more deeply our emissions from our production process and supply chain. The clarity helps us to adjust our strategy both from energy efficiency, renewable energy and procurement, to go net zero.”

Erik Hendra, Manager of PT Buana Triarta: “In accordance with our company’s vision and mission, which is to become an ambassador for Indonesia’s forestry resources by maximizing the added value of forestry products through good business operations and an integrated supply chain and ensuring business and industry sustainability through market research and creative product development, we fully support the Net Zero Hub program and contribute to reducing carbon emissions as a sense of our concern for the sustainability of the ecosystem which is currently under repair.”

Tanu Yota, Center of Technical & Technological, Excellence Director and Business Unit Head of Samora Group: “As something new, the knowledge of Samora Group’s Net Zero Carbon (NZC) team still needs to be scaled up to all subsidiaries. Learning from the CAP attended by the NZC Corporate team, Samora Group is consulting with KADIN Net Zero Hub so that internal training can be facilitated for all NZC teams in all our subsidiaries. So that the NZC program can be successful.”

Wenty Rasjid, Corporate Secretary of PT ChemStar Indonesia Tbk: “As one of the textile chemical manufacturers in Indonesia, PT. ChemStar Indonesia Tbk. sees that climate change is one of the challenges that the world is facing. One of the causes of climate change is GHG emissions produced by the industrial sector. Therefore, PT ChemStar Indonesia Tbk. is encouraged to commit to net-zero to reduce carbon emissions. With the assistance and guidance through KADIN NZH CAP, PT ChemStar Indonesia Tbk. has started to calculate the company’s carbon footprint and develop a strategy to reduce it.”

  

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Contact:

Sakinah Ummu Haniy, Senior Communications Coordinator WRI Indonesia, [email protected], +62-813-8343-5507

Fitriannisa Soegiharto, Communications Manager CDP, [email protected], +62813-8095-9299

Nurina Izazi, Communication Manager IBCSD, [email protected], +62-813-3261-4268

Request for Proposal: Katingan Investment Outlook

Investment Opportunities in Katingan

The concept of green growth (green growth) presents a new approach to economic growth. Putting human well-being at the center of development and ensuring natural resource assets continue to provide resources and environmental services to support sustainable development.

“Currently there are still many economic practices that do not pay attention to environmental sustainability. These practices should be improved through initiatives to regulate, foster and provide incentives and disincentives for economic activity.

The greatest natural resource potential in Katingan Regency is the agricultural sector which includes agriculture and food crops, plantations, animal husbandry, maritime affairs and fisheries. The development of livestock in Katingan Regency is still on a small scale and is still in the household business stage. Plantation is one of the potentials for development and high potential in Katingan Regency. This is supported by the physical condition of the area. Potential plantations can be divided into several leading commodities such as rubber and palm oil.

With this great potential, we hope that in the future many investors will enter to participate in developing the existing potential, this is supported by the geographical conditions of Katingan which is the gateway to West Kalimantan both from land, air and sea routes, where this is one of the supporting factors. to expedite the entry and exit of goods.

    2. The Outcome

The ultimate outcome of this initiative is to promote, inform and attract investors to invest in an investment plan in Katingan Regency to support green growth through an “Investment Outlook” that will be jointly developed by jurisdictional stakeholders, an approach in Central Kalimantan, which includes governance conditions governance that follows green growth, social and economic growth that encourages investment growth, as well as stakeholder efforts to support the SDGs and climate change mitigation and adaptation efforts.

    3. Expected Output

Jurisdictional approaches need to adhere to principles of collective action and as such they must have a strong sense of ownership of the information generated from those jurisdictions. Thus, there are two results that need to be produced, as follows, so that the activities in this initiative can contribute to producing .

Read More :

RFP Term of Reference Katingan Investment Outlook (2)

Period of Assignment

March-May 2023

Please send your RFP to [email protected] with subject ‘Application: Consultant “Katingan Investment Outlook”.

Welcoming PT Mukti Mandiri Lestari

President Director of PT Mukti Mandiri Lestari, Wawan Budiawan, stated that PT Mukti Mandiri Lestari, as a business leader in e-waste management in Indonesia, is not only put the concern on the business side, but also for the environment for future generation. PT Mukti promotes the handling of e-waste in environmentally friendly ways to any e-waste generator stakeholders, including manufacturers, OEMs, large multinational enterprises, service providers, local government agencies and communities.

E-waste contains numerous toxins which can be dangerous if it’s not disposed properly, as it can cause environmental pollution and health hazards. Moreover, some parts of e-waste still can be recovered and recycled. PT Mukti Mandiri Lestari proudly does the honors as a leader to offer a complete and highly efficient solution for eco-friendly management end-of-life electronic assets.  

CEO Column: Continuing GGF’s Journey on 2023 to Benefitting the Planet and Communities

Based on the framework for a circular economy, we implement an integrated farming system. We minimize waste by utilizing the residual organic component from the production process and the biogas produced from the livestock for the plantation. With this integrated farming system, we want to ensure our production process from the plantation to distribution is more sustainable.

Aside from the environmental aspect, we also implement social responsibility through our Creating Shared Value (CSV) Program. This program allows partnerships with local farmer groups based on empowerment and mutual advantage to add value to their harvests. We want farmers to have a more stable income and prosperous lives.

We realize the concrete steps taken in achieving the SDGs through various initiatives, and we are hopeful that we can do more in the future to create more value in sustainability. Our pillars of sustainability—Great People, Great Lives, and Great World—will be our principles to maintain and ensure we do business within the corridor of sustainability.

With these remarks, let us embark on our journey in 2023 to continue creating harmonious and balanced practices that will benefit the planet and communities.

Roadmaps to Nature Positive: WBCSD’s Guideline for Sustainable Business

Nature loss is disrupting the global economy, with around half of the economy moderately or highly dependent on it. The 2021 Dasgupta Review highlights that the economy is closely tied to the biosphere and that the loss of nature is causing material risks in operation and value chains. Businesses need to move to collective action to achieve a nature-positive future.

Nature-positive roadmaps will assist companies in setting and assessing financial risks related to nature. They will serve as a foundation for developing ambitious strategies and plans for integrating nature-positive practices throughout their entire value chains. These roadmaps will help companies implement and improve their nature-related goals and objectives. The roadmaps adopt relevant frameworks and resources, such as Natural Capital Protocol, and key voluntarily standards from Science Based Targets Network (SBTN) and Taskforce on Nature-related Financial Disclosures (TNFD), as well as the baseline reporting framework from International Sustainability Standards Board (ISSB).

In order to achieve a nature-positive planet by 2030, companies and financial institutions must adopt comprehensive strategies across all their spheres of control and influence throughout their value chains. To ensure accurate and robust claims about nature, businesses should aim to be as thorough as possible in their assessments, commitments, transformations and disclosures of their impacts and dependencies on nature. This requires a shift in mindset from risk mitigation to a “just and regenerative” approach, as outlined in the Vision 2050. To effectively implement these changes, companies should consider the scope, range of nature issues, integration with sustainability, and corporate mindset for each action: assess, commit, transform and disclose. Furthermore, there are maturity levels which measure the scope of the companies: “starting”, “developing”, “advancing”, and “leading”. To credibly align with the global goal for nature, companies should aim for “advanced” and “leading” maturity levels.

This roadmaps will be a guidance that provides a checklist of actions to assess, commit, transform, and disclose performance for companies. Six value-chain specific objectives are also identified for businesses to collectively undertake, aligning nature conservation efforts with climate action goals. These objectives include assessing the materiality of the issue, setting targets, allocating resources, promoting supportive policy, using credible metrics, and reporting progress.

The roadmaps guideline can be downloaded from this link.

A Lesson Learned from the Implementation of Waste Reduction by Producers

Held on December 19, 2022, in Pullman Hotel Jakarta, this event is a continuation of the previous series of activities supported by UNEP and SEA-Circular project. Executive Director of IBCSD, Indah Budiani, mentioned that this event brings hope for the sustainability of waste reduction management, especially to reduce waste at sea. “To solve the plastic waste issue requires cooperation between various parties because it is not only the responsibility of the producer but also to be resolved together with other stakeholders”, she added.

Ujang Solihin Sidik, as the Head of Sub Directorate of Producer Administration, Directorate of Waste Reduction, Directorate General of PSLB3, Ministry of Environment and Forestry, highlighted the function of Permen LHK No. 75 0f 2019 as a tool for encouraging collaboration to reduce and handling the marine waste. He said, “There has been positive progress in achieving a reduction of marine waste of 28.5%.” Through collaboration, the producers are expected to be the users of recycled packaging, the distributors and retailers will recollect the waste packaging, and the consumers are expected to live a minimal waste lifestyle.

Moreover, Christine Halim, the Chair of the Indonesian Recycling Association (ADUPI), explained the Extended Producer Responsibility (EPR) implementation in several countries in Europe. She mentioned that the EPR systems in those countries are good and highly supported by the government. As a plastic recycling association, ADUPI wants to increase the plastic recycling effort and improve the EPR implementation in Indonesia.

Through this event, the stakeholders ranging from the government, associations, and the private sectors are expected to strengthen collaborative action to reduce marine waste. Furthermore, the producers are expected to map the risk and opportunities to implement the Roadmap for Waste Reducing. The coaching clinic session of this event was also aiming to facilitate producers and retailers to establish a Waste Reduction Planning Document that will be implemented in their operation and submit it to the Ministry of Environment and Forestry portal for reporting. 

BASF Puts the Social Responsibility Into Action with Kids’ Lab Program

“Science education is part of BASF social commitment. With “BASF Kids’ Lab goes to School”, we are bringing science and inspiring the younger generations to discover the world of chemistry through safe and fun experiments in the comfort of their school,” said Agus Ciputra, President Director of BASF Indonesia.

During the pandemic, BASF Indonesia introduced a BAFS’ Virtual Lab in Bahasa Indonesia version which allows children to explore chemistry from home. This is part of BASF’s social engagement strategy to open up learning opportunities. At BASF, education is a key to children’s future and society’s development, in order to meet tomorrow’s challenges and create a sustainable future.

Advancing Private Sectors’ SBTi: An Attempt to Walk-the-Talk

With the intention to accelerate the net zero target achievement, IBCSD, as the strategic partner of KADIN Net Zero Hub, together with CDP as the knowledge partner, held the 5th batch Greenhouse Gas (GHG) Protocol Bootcamp. The event was held in Wyndham Casablanca, on December 13, 2022. A total of seven companies attended the event, namely PT. Vale Indonesia Tbk, PT Rimba Makmur Utama, PT. Krakatau Bandar Samudera, PT. Gunung Raja Paksi Tbk, PT Lautan Natural Krimerindo, PT. Wismilak Inti Makmur Tbk, and PT. PZ Cussons Indonesia.

This Bootcamp is one of the KADIN Net Zero Hub flagship activities for the Hub members. It is intended to provide an overview of the target setting using SBTi, as well as to conduct an internal deep dive training about GHG Protocol to support companies’ journey towards net zero using SBTi approach. This event was also devoted as a platform to discuss companies’ way forward and strategies for their net-zero targets and how Net Zero Hub could support the companies.

For the companies, adopting SBTi as a globally acknowledged standard will be beneficial as the companies will be able to benchmark their climate ambition with their international peers. Through this Bootcamp, the companies can get assistance to assess their emission baseline through GHG accounting. The GHG Protocol provides a guideline for companies if they want to set their emission reduction targets in line with the latest climate science. It is highly recommended for the Net Zero Hub signatories familiarize themselves with the GHG Protocol and consider applying them in emission calculation and reporting.

Grasping Opportunity for Strategic Partnerships of Fighting Food Loss and Waste

On the second day, November 16th, IBCSD and WRAP had a courtesy meeting with the Netherlands Embassy to inquire about the Netherlands support in addressing the FLW in Indonesia. According to Joost van Uum, the Agriculture Counselor of the Embassy, there have been several programs of government-to-government cooperation with Indonesia, in particular on sustainable food systems and climate change adaptation and mitigation.  Related to food systems and FLW, the Netherlands supports the development of agriculture research and innovation centre which collaborate with an Islamic school in West Java. The program was particularly focused on horticulture commodities and supported by a Dutch company operating in Indonesia.

The next agenda on November 17th was to join the GRASP2030 Steering Group Meeting. The GRASP2030 Steering Group Meeting held was the 3rd meeting in which IBCSD together with the Steering Group members evaluated the delivered GRASP2030 programs and discussed the next steps for the upcoming year. The meeting was attended by Nita Yulianis, Director for Food and Nutrition Surveillance of National Food Agency, the representative from the Government which is very supportive of GRASP2030. In her remarks, she said that Indonesia has a food policy governance structure led by the National Food Agency that is directly responsible to the President of the Republic of Indonesia. The current efforts to save food are focused on preventing food waste and distributing to people in need. She emphasized that all of these activities need to be strengthened by data, policy, and stakeholder commitment. The meeting concluded that the current progress was achieved by none other because of the efforts from all signatories and generous funding from P4G and Avery Dennison Foundation, and therefore, GRASP2030 was expected to be sustained by continuous support from the stakeholders.

Following the Steering Group meeting, IBCSD and WRAP visited the Danish Embassy to discuss the opportunity of collaboration. The meeting was started with exchange of information about each organization and follow up of the GRASP2030 proposed collaboration activities in the next year. The Danish Embassy agreed to support the agenda of GRASP2030 in raising public awareness on FLW through the #Consumindful campaign which planned to be started in early 2023. The #Consumindful campaign was a part of the GRASP2030 activities to build the consumer understanding by engaging signatories in delivering the message.