Extreme climate change is one of the setbacks in smooth operations. Therefore, we face the challenges of climate change by carrying out optimal decarbonization activities. Decarbonization activities include energy reduction and efficiency initiatives to reduce emissions, other emission reduction initiatives through green mining practices, and responsible production to reduce waste.
Decarbonization Policies and Roadmaps [EM-MM-110a.2]
The decarbonization policy supports the Environment & Climate Change Pillar through a series of activities and initiatives aimed at reducing emissions. In 2023, we were preparing a decarbonization roadmap towards net zero emissions by 2060, designed to achieve emission reduction targets for the next 36 years. Through the implementation of this decarbonization, PT TIMAH Tbk will contribute to the achievement of the carbon-neutral target launched by the government. Based on the results of the risk assessment, the factors that affect the success of this roadmap are high costs and regulatory changes. In order to achieve net zero emissions by 2060, we have emission reduction targets to be achieved each year. By 2023, we have a monthly reduction target of 2% against Business as Usual (BAU). Overall, we recorded an emission reduction of 2.03% in 2023.
Our Endeavors to Achieve Climate Resilience [201-2]
Climate risk has become one of the global risks that need to be addressed. We have analyzed climate-related risks, both physical and transitional that will impact the Company’s business activities. Some of the mitigation efforts against physical climate-related risks include:
Achieving GHG emission reduction targets, leading to carbon neutrality takes a long time. Therefore, in addition to taking action to mitigate climate-related risks, the Company also optimizes existing opportunities to support decarbonization activities, as follows:
Optimizing Energy Efficiency[302-1, 302-4][EM-MM-130a.1]
To support the decarbonization process, we reduce energy consumption using renewable energy sources. The energy sources we use are biodiesel (B30) 78.5%, Marine Fuel Oil (MFO) 9.0%, electricity (PLN) 7.3% and coal 5.2%. The renewable energy we use is solar cells and the alternative energy we use is biodiesel (B30), reducing GHG emissions. Energy management refers to the ISO 50001 Energy Management System standard and Government Regulation No. 70 on Energy Conservation. The energy management system to improve energy efficiency includes appointing a certified energy manager, developing an energy conservation program, conducting periodic energy audits by certified auditors, implementing the results of energy audits, and reporting the implementation of energy conservation to the government every year. The methods used in calculating energy efficiency are UNFCCC - GHG Emissions Inventory Guidelines (I PCC 2006) and WBCSD/WRI (World Business Council for Sustainable Development / World Resource Institute) - GHG Protocol for Corporate Accounting by following the annual energy reporting format from DG EBTKE which is reported before April 1 of each year. Energy efficiency calculations are based on the 2010 baseline.
Energy Consumption
In this report, we inform the use of energy inside and outside the Company. The calculation is carried out using the reporting method based on the type of energy source referring to the policy of the Ministry of Energy and Mineral Resources. In 2023, the total volume of energy consumed was 1,844,872 GJ.
Use of New and Renewable Energy (EBT) [302-1, 302-4][EM-MM-130a.1]
The Biosolar (B30) is the main renewable energy source which accounts for 80% of the total operational energy use. In addition, we also utilize energy from On-grid Solar PV installed at the location of Kampoeng Reklamasi Air Jangkang in Bangka, Kampong Reklamasi Selinsing in East Belitung. Renewable energy use from biodiesel amounted to 1,448,063 GJ and solar energy use amounted to 82.94 GJ.
Energy Intensity [302-3]
Energy intensity is measured as the total amount of energy required from both electricity consumption and fuel use to produce one ton of product. The calculation does not include energy use outside the scope of the Company. The energy intensity value in 2023 reached 120.27 GJ/ton.
GHG Emission Calculation and Reduction [305-1, 305-2, 305-3]
Decarbonization is our ongoing support for achieving net zero emissions while reducing GHG emissions from operational activities. The main sources of emissions from our operation are the use of mining equipment that uses fossil fuels such as diesel and gasoline and the installation of power plants that use diesel fuel to produce GHG emissions and other emissions. We have been calculating GHG emissions by taking into account the total emissions from various sources, including transportation, industrial activities, and the energy sector. Gases included in the calculation are CO2, CH4, N2O, HFC, PFC, SF6, NF3. The GHG emission calculation method applied is based on the 2006 IPCC standard. The GHG emission calculation process has significance in climate change mitigation ef for ts and supports the government’s target of carbon neutrality. The consolidated approach to emissions data is based on the equity portion. [305-1, 305-2, 305-3, 305-4, 305-5, 305-6, 305-7]
The calculation of GHG emissions for Scope 1 includes production activities and consumption of fuel oil (BBM), while Scope 2 involves the use of electricity. The results of the GHG emission calculation are expressed in tons of CO2 equivalent (CO2eq). This calculation is based on the energy consumption balance method of fossil fuels and gases that have greenhouse effect impacts. We used the 2019 baseline based on the mutual agreement with the Holding (MIND ID) and the amount of GHG emissions of 171,000 tons of CO2 and used the Global Warming Potential (GWP) index = 1. [305-1, 305-2, 305-3, 305-5]
Scope 3 GHG emissions, one of which comes from business trips conducted by the Board of Directors and Board of Commissioners, are calculated using a conversion that can be accessed at https://www.airmilescalculator.com. [305-3]
During 2023, the Company carried out initiatives to reduce GHG emissions through the use of Biodiesel (B35), the substitution of fossil energy for renewable energy, reconditioning (OH), and procurement of new engines in Sea Transportation Vessels, Fuel Monitoring System in KIP in UPLB area (5 KIP), the overhaul of main engines of KK and KIP Tin in UPLB & UPK area (3 KK and 12 KIP), and modification of Soil Disposal System on KIP in UPLB Operation area (6 KIP units). The absolute calculation result of GHG emission reduction in 2023 was 37,399 tons CO2eq, an increase from the previous year. [305-5]
Emission Intensity [305- 4]
The GHG emission intensity presented in this report only includes scope 1, 2, and 3 GHG emissions. The result of the calculation of GHG emission intensity in 2023 is 8.48 CO2eq/ton.
Other Emission Control (Non-GHG) and Air Quality Control [ 305 -7] [ EM- MM-120a.1]
Periodically, the Company tests other emissions from stationary emission sources. These tests include several parameters such as Par ticulates, SO2, NOX, HCI, NH3, Pb, Sn, CO, and TVOC. These emission sources come from both supporting equipment (Wheel Loaders, Forklifts, Trucks, and Tronton) and from chimneys associated with PLTD activities. The source of the emission factor used is IPCC 2006. [305-7]
To manage non- GHG emissions coming out of the chimney, the Company has installed Filter Bag as an air pollution control facility. This is so that the emissions released can meet the Standard Quality Emissions (BME) set by the government. Other initiatives for reducing other emissions are increasing the efficiency of generator use, routine maintenance of generators, and electrification of electricity needs to the baghouse. We ensure that these other gas emissions are under the prevailing environmental quality standards.
Emissions Containing Ozone Depleting Substances (ODS) [305-6]
We attempt to reduce emissions containing ozone-depleting substances from the operation of equipment and the use of substances that damage the ozone layer. Our efforts are to gradually replace refrigerants that use chlorofluorocarbons (CFCs) and other equipment containing chlorine, fluoro, and carbon, to use more environmentally friendly hydrocarbon materials. The source of the emission factor used is https://exceloplossing.nl/refrigerant-co2-equivalent-calculator. [305- 6]
