Sustainability Report 2018
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2018 SUSTAINABILITY REPORT: DOORS OF SUSTAINABILITY 2 PT Perusahaan Gas Negara Tbk 2018 Sustainability Report DOORS OF OPPORTUNITY “Environmentally-friendly” has become a trend and topic of discussion in public and among businesses in recent years, resulting in increased awareness of the importance to protect the planet from global warming. The trend is an excellent opportunity for PGN as a supplier of the relatively cleanest fossil fuel. We wish to capitalize the opportunity to develop the economy, create value, and conserve the environment for future generations. Together, we can open doors of opportunity. 2018 Sustainability Report PT Perusahaan Gas Negara Tbk 1 TABLE OF CONTENTS PGN 2 SUSTAINABILITY AT PGN 90 OPPORTUNITY IN CONSERVATION Sustainability at 2 Economy 95 Environmental Management Systems 3 Social 95 Environmental Program Policies 5 Environment 96 Environment Training 6 Important Events 96 Environmental Management and Monitoring Message 10 Awards and Certifications 96 Water 97 Emissions 14 REMARKS 98 Waste 17 Remarks from the President Commissioner 99 Effluent Waste About 21 Remarks from the President Director 100 Energy 101 Materias This Report 26 ABOUT THIS REPORT 102 Environmental Programs 30 Reporting Period, Scope and Frequency 30 Reporting Standards and Compliance with 104 OPPORTUNITY IN PRIORITIZING SAFETY Standards 108 Occupational Health and Safety Aspect Policy 30 Determination of Report Content and Topic 109 Ohs in Collective Labor Agreement to Develop to Develop Opportunity Boundaries 109 Ohs in Pgn Management System Sustainability 31 Determining Materiality Level 113 Ohs Road Map Implementation 32 List of Materiality Aspects 116 Ods Performance 2018 33 Change in the Report 121 Ohs Awards 33 Assurance By External Party 33 Contact For Sustainability Report 124 OPPORTUNITY TO SERVE THE CUSTOMER Business to Build the 129 Giving Priority to Customers’ Health and Safety Opportunity 36 OPPORTUNITY TO DEVELOP SUSTAINABILITY 129 Quality Assurance 42 Operational Location 129 Priority for Customer Safety 44 Vision of Pgn 129 Delivering Quality Consistent with Regulations and 45 Mission of Pgn Standards 46 Corporate Culture 130 Providing the Best Service Nation 50 Company History in Brief 130 Customer Interaction Opportunity 52 Corporate Business Development 131 Ensuring Customer Satisfaction to Prosper the 54 Market Segment 131 Customer Card 54 Jaringan Pipa Gas 131 Latest Technology 54 Organizational Scale 131 Network Expansion 56 Supply Chain in 58 Changes In Organization and Supply Chains 134 OPPORTUNITY TO BUILD PGN’S PEOPLE 60 Business Units of Subsidiary and Affiliated 138 Strategies and Policies to Develop PGN Individuals Opportunity Companies 139 PGN Employee Profile Conservation 140 PGN Employee Turnover 64 OPPORTUNITY TO BUILD THE BUSINESS 142 Welfare of PGN Individuals 69 Governance Structure 144 Developing Diversity and Equality 70 General Meeting of Shareholders 145 Ratio of Basic Wage and Remuneration for Female Safety 70 Board of Commissioners to Male Employees Opportunity 70 Directors 145 Fulfilling the Employees’ Human Rights in Prioritizing 71 Risk Management 146 Development of Pgn Individuals 71 Risk Management Governance 148 Retirement Welfare Program 72 Precautionary Approaches and Principles 72 Corruption Prevention 150 OPPORTUNITY TO BRING PROSPERITY TO THE NATION Customer 74 Ethics and Integrity the to Serve Opportunity 74 Integrity Pact 154 Background 75 International Initiatives and Association 156 Natural Disaster Assistance Memberships 156 Education and/or Training Assistance 76 Stakeholder Involvement 160 Health Improvement Assistance PGN’s 160 Assistance for Infrastructure and/or Public Facility to Build 80 OPPORTUNITY TO PROSPER THE NATION Development 85 Contribution to Stakeholders’ Economy 160 Assistance for Worship Facilities Opportunity 85 Contribution to The State 161 Nature Conservation Assistance 86 Contribution to Regions 161 Community Social Assistance 86 Business Lines And Customers 86 Development Strategies 164 ASSURANCE STATEMENT 166 STATEMENT GRI IN ACCORDANCE CHECK 88 Climate Change Challenges to the Nation Opportunity to 167 GRI STANDARDS INDEX Bring Prosperity 171 LINKING THE SDGS AND GRI STANDARDS 2 PT Perusahaan Gas Negara Tbk 2018 Sustainability Report SUSTAINABILITY AT PGN GCG SCORE 2017 2018 94.61 94.68 CREATING SHARED ECONOMIC VALUE DIRECT ECONOMIC ECONOMIC VALUE REWARD FOR PAYMENT TO VALUE GENERATED DISTRIBUTED WORKERS SUPPLIERS (US$ Million) (US$ Million) (US$ Million) (US$ Million) 5,000 4,000 150 2 3,050 4,000 120 3,000 1.86 1.5 1.81 139.93 3,858.75 2,500 3,770.32 3,000 90 4,010.19 2,000 112.34 1 3,673.62 2,000 1,500 60 1,000 0.5 1,000 30 500 0 0 0 0 2017 2018 2017 2018 2017 2018 2017 2018 CSR FUND CONTRIBUTION DIVIDEND TAX (US$ Million) TO THE STATE FOR STATE PAYMENT (US$ Million) (US$ Million) (US$ Million) 8 500 80 500 7 70 400 400 7.24 6 60 77.89 6.89 5 417.62 50 300 300 403.73 390.59 4 40 375.15 200 3 200 30 2 20 100 31.34 100 1 10 0 0 0 0 2017 2018 2017 2018 2017 2018 2017 2018 2018 Sustainability Report PT Perusahaan Gas Negara Tbk 3 PGN Sustainability at SOCIAL Message CUSTOMER INDEX SATISFACTION INFRACTION OF MARKETING 2017 CASES About 5.48 This Report 2018 2018 NONE 5.43 to Develop to Develop Opportunity Sustainability WORKERS WALKED OUT CASES OF INFRINGEMENTS OF HUMAN RIGHTS 2018 Business to Build the NONE 2018 Opportunity NONE Nation Opportunity to Prosper the NUMBER OF FEMALE WORKERS NUMBER OF MALE WORKERS 2017 2017 in 327 1,012 Opportunity Conservation 2018 2018 316 974 Safety Opportunity in Prioritizing WORKER INCORPORATED IN WORKERS RECEIVED WORKERS FEDERATION ANNUAL KPI Customer to Serve the to Serve 2018 2018 Opportunity 80.4% 100% PGN’s to Build Opportunity to the Nation Opportunity to Bring Prosperity 4 PT Perusahaan Gas Negara Tbk 2018 Sustainability Report FEMALE SENIOR LEADERS AWARDS IN OCCUPATIONAL (TOP AND MIDDLE) - (PEOPLE) SAFETY 2017 2017 56 8 2018 2018 63 11 TOTAL EMPLOYEE TRAINING AND EDUCATION (MANDAYS) 2017 2017 1,339 11,592 2018 2018 1,290 9,946 NUMBER OF FATALITY SAFE-MAN HOURS 2017 2017 4 83,009,685 2018 2018 NONE 94,407,387 2018 Sustainability Report PT Perusahaan Gas Negara Tbk 5 PGN Sustainability at ENVIRONMENT Message AIR EMISSION MONITORING TREE PLANTING RESULTS 2017 About 2017 96,314 This Report < QUALITY STANRADS 2018 2018 30,000 to Develop Opportunity < QUALITY STANRADS Sustainability Business to Build the ACCUMULATED LENGTH OF ENERGY CON SUMP TION Opportunity TRANSMISSION & (GIGAJOULE) DIST RIBUTION PIPES (KM) 2017 2017 7,453.19 686,255 Nation Opportunity 2018 to Prosper the 2018 9,915.87 693,943 in Opportunity NATURAL WATER CONSUMPTION GREENHOUSE GAS EMISSION Conservation INTENSITY (TON CO EQ/MMscfd) 2017 2 CO 3 2 2017 44,509 m 68.85 Safety Opportunity 2018 2018 in Prioritizing 14,565 m3 57.14 Customer to Serve the to Serve Opportunity PGN’s to Build Opportunity to the Nation Opportunity to Bring Prosperity 6 PT Perusahaan Gas Negara Tbk 2018 Sustainability Report IMPORTANT EVENTS 18 January 2018 9 February 2018 15 February 2018 Widar Operates Two Power Plants in a Inauguration of 10,101 Home PGN Collaborates With Regional Week in Aggressive Expansion Connections Mojokerto; Minister Government-Owned Enterprises (January 18, 2018) of Energy and Mineral Resources: Of Papua To Expand Natural Gas Prioritize Resources for the People Infrastructure PT Widar Mandripa Nusantara PGN continued to demonstrate its (Widar), a subsidiary of PGN, On February 9, 2018, the Minister commitment to develop natural recorded new achievements. of Energy and Mineral Resources, gas infrastructure and its utilization After supplying electricity to the Ignasius Jonan, inaugurated 10,101 in many regions. This time, PGN Teluk Lamong Port, Widar is now home connections (sambungan collaborated with PT Papua Doberai supplying 5 megawatts (MW) of rumah, SR) to the Residential Natural Mandiri (Padoma) to develop a electricity to Pulau Tanjung Balai Gas Distribution Network (Jaringan natural gas infrastructure network Karimun in Riau for use in the Zone Distribusi Gas Bumi Rumah Tangga, in Papua in order to improve the II Tanjung Balai Karimun free trade Jargas) in Kota Mojokerto and region’s access to energy. zone. This achievement was made Kabupaten Mojokerto. The project possible thanks to collaboration was funded using the State Budget with PT Karimun Power Plant 2017. Development of the network’s (KPP), the electricity license holder infrastructure in Kota Mojokerto was 5 April 2018 in the region. This achievement assigned to PGN while PT Pertamina Three State-Owned Enterprises Sign MoU demonstrated PGN’s commitment (Persero) was responsible to build on Settlement of Civil Cases and State to distribute good energy across the the network in Kabupaten Mojokerto. Administration with the Attorney country. The gas distribution network is General Office constructed following President Joko Widodo’s direction for social equity, prioritizing existing resources for 25 January 2018 people’s prosperity in the spirit of Extraordinary General Meeting energy security. of Shareholders Deputy Attorney General for Civil Law and State Administration (Jaksa Agung Muda Bidang Perdata dan Tata Usaha Negara, Jamdatun) of the Attorney General of the Republic of Indonesia, Loeke Larasati Agoestina, signed a joint memorandum of PGN held the Extraordinary General understanding (MoU) with three Meeting of Shareholders (EGMS) to State-Owned Enterprises, PGN, show its commitment and in response PT Rajawali Nusantara Indonesia to the Government’s instructions,