PGN Successfully Reduces Emissions by 598.39 Tons of CO2 eq in 2023

Jakarta – Sustainability strategies, particularly in Environmental, Social, and Governance (ESG) aspects, are integral to the business and operations of PT PGN Tbk, as a Subholding Gas of Pertamina. PGN continues to integrate sustainability values with four main focuses to support the achievement of Net Zero Emission (NZE) targets.

PGN's Director of Strategy and Business Development, Rosa Permata Sari, explained that one of PGN's contributions to the NZE target is its commitment to decarbonization. In 2023, PGN succeeded in reducing its Greenhouse Gas (GHG) emissions for Scope 1 and Scope 2 on a consolidated basis by 598.39 tons of CO2eq through various initiatives.

The emission reduction in 2023 was significantly higher compared to 2022, where it was only 220 tons of CO2eq. This demonstrates the effectiveness of the measures PGN has implemented to reduce the environmental impact of its operations.

PGN, including its subsidiaries and affiliates, has implemented several sustainable innovations, such as the installation of Offshore Solar Panels at Sidayu to meet electricity needs at Well Head Platforms C (WHP-C) and WHP-D. This initiative achieved a reduction in emissions of 67.42 tons of CO2eq per semester.

Additionally, PGN developed energy efficiency innovations through methods like replacing O-Ring Bundles to optimize gas distribution and the TWIN (Time-Weighted Drainage) method to improve air compressor performance. Furthermore, PGN Saka replaced gas engines with electric-driven flash gas compressors, contributing to a reduction of 4,143 tons of CO2eq per year.

"In the long term, PGN aims to achieve an emission reduction of 460 tons of CO2eq to support NZE. Natural gas, which is the primary commodity in PGN’s business, can also contribute to reducing emissions by 377 tons CO2 in the energy sector by 2035 and lowering emissions by approximately 40 percent compared to other energy sources," explained Rosa.

Environmental initiatives are also implemented in PGN’s community development programs, which provide both economic and environmental benefits. For example, in Sidomulyo Tourism Village and the Used Cooking Oil Processing Garden, PGN has successfully produced liquid fertilizers, ecobricks, soap, and candles from used cooking oil, contributing to minimizing environmental pollution.

PGN’s efforts in carbon emission reduction have earned the company the Corporate Emission Reduction Transparency Award in the Green category and the Corporate Emission Calculation Transparency Award in the Platinum category. These awards were organized by investortrust.id in collaboration with the Bumi Global Karbon Foundation (BGK Foundation).

Internally, PGN has committed to being an environmentally friendly company by implementing good corporate governance and being socially responsible while managing environmental standards as per applicable guidelines.

"We consistently strive to reduce emissions, waste, and energy usage to minimize our environmental footprint, in line with our HSSE policy," Rosa emphasized. During 2023, PGN saved 26,203.93 units of energy and reduced Non-B3 waste from 163.3 tons to 142.2 tons.

PGN will continue to enhance its decarbonization and environmentally friendly initiatives to maximize their benefits. PGN also ensures ESG aspects are considered to achieve carbon emission reductions in accordance with environmental standards.

Throughout 2023, PGN received an ESG score of 24.7 from the ESG rating agency Sustainalytics. This score is the highest among similar companies in the market capitalization category of USD 1.9 – USD 3.0 billion. "This achievement symbolizes our success and dedication to sustainability and encourages us to further improve ESG practices across all operational aspects," concluded Rosa.

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