Chandra Asri Group has improved its ESG (Environment, Social, and Governance) ratings from international organizations MSCI and Morningstar Sustainalytics. This improvement strengthens the company's position with MSCI's ESG rating score at BBB and shows an improvement in the ESG Risk Rating from Morningstar Sustainalytics through a decrease in risk score from 16.6 to 16.3. This achievement reflects Chandra Asri Group's commitment to sustainability and places the company in the top-rated ESG category globally in the chemical industry. In addition, this result opens up greater opportunities to access sustainable financing, including Sustainability-Linked Loans (SLL).
Chandra Asri Group's Head of ESG & Sustainability, Andang Pungkase, said that this achievement results from the company's commitment to proactively managing environmental and social impacts and transparent governance. Chandra Asri Group also successfully maintained its International Sustainability & Carbon Certification (ISCC) certification for the second time, which marks recognition of the company's facilities' success in producing environmentally friendly products from bio-feedstock. Through these achievements, Chandra Asri Group continues to be committed to increasing more efficient energy use and driving innovation in using sustainable feedstocks, such as Bio-Propylene and Bio-Ethylene, to support the energy transition agenda and national climate targets.
PT Chandra Shipping International (CSI), a subsidiary of PT Chandra Daya Investasi (CDI) engaged in shipping and logistics, signed a Memorandum of Understanding (MoU) with PT Pertamina International Shipping (PIS) on October 4, 2024 and was witnessed by leaders from both companies. The cooperation aims to conduct a feasibility study to identify synergy opportunities in the marine transportation sector, chemical, and bitumen products. Both companies hope to expand their global reach in the marine transportation industry through this strategic partnership. This collaboration is a tangible manifestation of PT Chandra Shipping International's (CSI) commitment to being an industry growth partner through reliable and innovative marine services.
President Director of Chandra Asri Group, Erwin Ciputra, stated that the collaboration between CSI and PIS will positively impact Indonesia's marine logistics industry, especially by combining technological excellence and sustainability. This collaboration will also help strengthen supply chain resilience and improve service standards in the marine transportation sector, both domestically and internationally. PIS Director of Gas, Petrochemicals and New Business, Arief Sukmara, added that this move is expected to establish them as a market leader in the petrochemical transportation segment as well as other industrial products while driving innovation in supply chain operations. This feasibility study is expected to open new opportunities for both companies in facing the challenges of an increasingly competitive maritime industry.
Chandra Asri Group won the 2024 Subroto Award in the Contribution to Emission Reduction in Energy Efficiency - Energy Management in Industry and Building Category; Large Manufacturing Subcategory on the 79th Anniversary of Mining and Energy on Thursday, October 10, 2024. Chandra Asri Group was selected for its commitment and dedication to implementing effective energy management through systematic and sustainable energy conservation measures.
In the 2024 Subroto Award contest, Chandra Asri Group submitted the title “Integration of SMEn and ESG Principles - Strategic Steps towards Energy Efficiency and Sustainable Growth at UCC1 PE Plant” and successfully went through 2 stages of judging, namely paper selection and final judging. The winners have the opportunity to compete at the ASEAN level through the ASEAN Energy Awards (AEA), the highest award in Southeast Asia that aims to recognize and appreciate the contribution of industry players in the development of the energy sector and the participation of various sectors in the ASEAN region. The Subroto 2024 Award is the Ministry of Energy and Mineral Resources’ highest honor for stakeholders who have played a role in advancing the energy and mineral resources sector within the past year.
Chandra Asri Group has signed a Sale and Purchase Agreement with Shell Singapore Pte. Ltd. to acquire Shell Energy and Chemicals Park (SECP) in Singapore. The acquisition was made through a strategic partnership involving Glencore plc and is pending regulatory approval until the end of 2024. The move aims to strengthen the company's contribution to Indonesia's energy security and support the domestic chemical industry and infrastructure sectors. Through the acquisition of SECP, Chandra Asri will ensure the supply of petroleum and chemical products, such as gasoline and jet fuel, as well as ethylene, polyethylene, propylene, MEG, and styrene monomers, to support the needs of various local industries and manufacturing processes.
Chandra Asri Group President Director & CEO, Erwin Ciputra, stated that this move will positively impact the Indonesian economy. Proceeds from SECP operations will be repatriated and reinvested for domestic industrial development, including creating new job opportunities through the establishment of a company that will manage SECP operations. In addition, the transfer of technology and knowledge from SECP to Indonesia is also expected to help improve operational efficiency and strengthen the national industrial value chain.
Chandra Asri Group's expansion into the ASEAN region aligns with the company's strategy to expand its global presence, capitalizing on the projected market growth of 4.5% by 2024 and ASEAN's combined GDP estimated to reach USD 4.5 trillion by 2030. The partnership with Glencore and the acquisition of the Shell Energy and Chemicals Park (SECP) in Singapore not only strengthens Indonesia's global position but also drives innovation through technology and knowledge transfer. This collaboration is expected to improve the company's operational efficiency and competitiveness in the energy and chemical industry, while positively impacting national economic growth.
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On 27 September 2024, Bapak Andang Pungkase, Head of ESG & Sustainability at Chandra Asri, served as a panelist in a discussion hosted by HSBC Indonesia, featuring 28 Financial Talents from the Hong Kong Academy of Finance (AoF) who are participating in the Financial Leaders Programme 2024. The discussion focused on the theme Client Transition to Net Zero and aimed to share insights and knowledge about the industrial sector's transition journey to net zero. During this opportunity, Chandra Asri shared the company’s sustainability journey and ongoing decarbonization strategies, while also discussing the crucial role financial institutions play in supporting these transition efforts.
In an effort to conserve coral reef ecosystems, PT Chandra Asri Pacific Tbk, in collaboration with the Kelompok Konservasi Alam Bawah Laut (KABL) of Sukarame Village, has undertaken coral reef rehabilitation in the northern waters of Pulau Panjang, Serang Regency, Banten Province. Through artificial coral transplantation methods, a total of 1,270 coral seedlings have been planted since 2020 as part of efforts to restore the coral reef ecosystem.
Biodiversity monitoring conducted on February 25, 2024, showed that the substrate of the northern waters of Pulau Panjang was dominated by live coral, covering 60.5% of the area, an increase from 51% in 2021 and 52.2% in 2022. According to the Ministry of Environment Decree No. 4 of 2001 on Coral Reef Damage Quality Standards, this live coral cover is classified as being in Good condition. The dominant type of hard coral is Coral Massive, indicating strong currents and high sedimentation levels.
During the Indicator Reef Fish observation, 19 genera were found, dominated by Neopomacentrus sp., a carnivorous fish that acts as a predator for small organisms, including dead coral-eating species. Thalasoma sp. was also found, which plays an important role in the ecosystem by spending 90% of its day chewing, helping to clean live coral by eating algae that hinder coral growth. The Shannon-Weaver diversity index (H’) was recorded at 2.23, indicating a highly stable condition, with an evenness index of 0.75 and a dominance index of 0.16, both of which also point to ecosystem stability.
Additionally, water quality measurements were carried out in the northern waters of Pulau Panjang, assessing parameters such as temperature, salinity, and pH. The analysis results showed that water quality is very suitable for optimal coral growth, meeting the seawater quality standards according to the Ministry of Environment Decree No. 51 of 2004.
Click here to access the Panjang Island Coral Reef Transplantation Report.
Chandra Asri Group participated in ExxonMobil’s thematic session at the Indonesia Sustainability Forum (ISF) 2024, held on September 6 at JCC, with the theme "Carbon Capture & Storage (CCS): Advancing Collaboration Opportunities for Emission Reduction and Sustainable Growth." Represented by Edi Riva'i, Director of Legal, External Affairs, and Circular Economy, Chandra Asri Group outlined the company's decarbonization strategy and commitment to achieving net zero emissions, in line with Indonesia's ENDC targets. One of the technologies under consideration is CCS/CCUS, which is seen as crucial for reducing greenhouse gas emissions. Chandra Asri Group also emphasized the importance of cross-sector collaboration and government support, whether through regulations or incentives, to accelerate the implementation of this technology in support of industrial transformation and future emission reduction goals.
Chandra Asri Group is participating in the pilot program initiated by the Cilegon City Government, providing free nutritious meals at five schools in the city. A total of 2,054 students benefit from this program, receiving a set of eating utensils made from certified SNI and Halal plastic, which are reusable and recyclable, along with nutritious meals. Chandra Asri Group contributed by distributing the eating utensils made from the company's reusable plastic materials.
The Chairman of the Presidential Advisory Council (Wantimpres), Wiranto, in his speech, stated that the Free Nutritious Meals program in Cilegon is part of a national initiative supported by local companies through Corporate Social Responsibility (CSR) programs. "We highly appreciate the implementation of the free nutritious meals scheme in Cilegon City involving industrial CSR. Thank you to Chandra Asri for participating in this program," said Wiranto.
The packaging assistance in this program also supports the domestic economy, as the production and materials come from local manufacturers. Additionally, using these eating utensils helps maintain food hygiene, ensuring that the recipient students can consume their meals safely. We hope that future Free Nutritious Meals programs will continue to utilize packaging that adheres to the mentioned standards and benefits. The pilot project for Free Nutritious Meals in Cilegon City took place from August 19 to 22, 2024, with the target schools being SMPN 5, SDN Cilegon 09, SDN Cilegon 12, SDN Pangabuan, and SDN Samangraya I.
Chandra Asri Group successfully won the Katadata ESG Awards on August 8, 2024, in the Chemicals sector, thanks to the Company’s strong commitment to transparency in ESG (Environmental, Social, and Governance) performance information. One of the key criteria for this award was the comprehensive and detailed sustainability report, which covers various important sub-aspects such as environmental cost reporting, the use of eco-friendly materials, energy management, biodiversity conservation, and the management of emissions, waste, and effluents. Through this award, Chandra Asri Group is recognized for its strong ESG performance, demonstrating its commitment to creating a sustainable and responsible business.
The Katadata ESG Awards is part of the Katadata Sustainability Action for The Future Economy (SAFE) 2024 event series, aimed at appreciating companies with significant contributions to the implementation of sustainability principles. This award serves as recognition of Chandra Asri Group's efforts in conducting business aligned with sustainable development goals while strengthening our position as a leader in the chemicals industry. The event also highlights the important role of companies in balancing economic growth with environmental preservation for the future.
Chandra Asri Group once again showed its concern for environmental conservation by supporting the Wildlife Journalism Competition (WJC) agenda organized by the Center for Environmental Communication Studies of Padjadjaran University (Unpad). The roadshow, themed “Negative Human-Wildlife Interactions from an Environmental Journalism Perspective”, took place in Banten on August 6 and 7, 2024, in collaboration with Sultan Ageng Tirtayasa University (Untirta). The program aims to instill the value of animal conservation to students, develop journalistic skills, and provide an understanding of human-animal interactions from an environmental journalism perspective.
Throughout the event, around 70 students from various universities in Serang and Cilegon, Banten participated to learn practical skills in developing news, articles or reports related to wildlife conservation. Then, at the closing of the roadshow on August 8, 2024, a total of 50 students from Unpad and Untirta participated in mangrove planting at Lembur Mangrove Patikang, Pandeglang, an edu-ecotourism area assisted by Chandra Asri Group with an area of 9,500 square meters. This activity is expected to form a young generation who cares about nature conservation and strengthen efforts to protect the environment and animals.
