Climate Change [201-2]
During the reporting period, we faced the phenomenon of physical climate change in the form of weather anomalies, which affected our mining operations and product delivery to customers. This had an impact on the Company's finances, which had an additional operating expense. However, the Company was able to optimize its production, sales, and delivery of products and able to meet the set targets.
Throughout 2022, the Company has identified the risks and opportunities of climate change to the Company’s performance, which include transition risk and physical risk. The followings are the risks and opportunities that we have identified:
1. Transition Risk:
- Potential decrease in company revenue.
- Potential increase in the cost of production.
- Potential for lawsuits for environmental damage and climate change from the company's operational activities.
- Potential non-compliance with regulations/regulations regarding emission limits & carbon reduction.
- Potential reduction of fossil energy consumption through increased energy efficiency.
- Potential use of environmentally friendly energy in the company's operations.
- Potential reduction of carbon for the Company's sustainable business.
2. Physical Risk:
a. Risks: • Potential value reduction of carbon-producing assets with the transition to green energy.
- The potential availability of high-technology assets that are environmentally friendly and low cost.
- Potential investment in business development with the use of New and Renewable Energy (EBT).
The risk mitigation carried out by the Company to manage the identified risks are:
- Conducting research and development of environmentally friendly technologies in accordance with operational needs in carbon reduction efforts.
- Monitoring air emission and ambient.
- Biodiesel energy use optimization program & replacement to low emission energy sources.
- Implementation of nature-based solution programs, such as biodiversity conservation (planting mangroves, restocking mangrove squid/cuttlefish and crabs, coral reef transplantation, artificial reef/fish shelter), use of environmentally friendly machines, construction of PLTS, reclamation of ex-mining land, and programs other environmental programs.