Table of Content Performance Highlights 2020 04 Awards and Certifications 06 Message from Director 08 Responsibility for Sustainability Report 09 About Sustainability Report 10 Company Profile 18 Governance 30 Economic Performance 38 Environmental Performance 42 Social Performance 51 Standard GRl Index 60 Index POJK No.51/POJK.03/2017 62 SDG’s 63 Feedback Sheet 65 3 PT. Indo Kordsa, Tbk | www.indokordsa.com PERFORMANCE 01 HIGHLIGHTS 2020 Economy Net Total Total Sale Asset Debt 168.492.294 263.740.526 55.218.439 Company Total Loss Capitalization 4.432.414 1.022.117 Social (203-1) ISMO (IndoKordsa Sustainability Movement) describes Indo Kordsa’s commitment in the form of corporate responsibility to 3 pillars: People Planet Profit Social Environment Economy 4 Indo Kordsa Sustainability Report 2020 March 2020 Online Socialization of Coronavirus (COVID-19) Prevention Efforts. The purpose of this socialization is to protect the Company’s employees from the COVID-19 pandemic by complying with the health protocol regulations established by the government . April 23, 2020 Face Mask Donation to Three Villages. The company donated masks to each of the villages located around the Company, namely Sanja Village, Sukahati Village, and Karang Asem Timur Village. May 15, 2020 Face Mask Donation to Sub-District of Citeureup. The Company donated 100 boxes of masks to Citeureup Sub-District in the context of caring for the prevention of COVID-19 to the area around the factory. The aid was received directly by the Head of Citeureup Sub-District. Environment Indo Kordsa’s responsibility, is by participating and preserving the environment through Indo Kordsa’s efforts to recycle, reuse, compost processing which is proof of Indo Kordsa’s responsibility to the environment. 3 Total water withdrawal: (m ) Waste Management: CO2 GHG Emissions 202014.095 tCO2e River (surface), lake, or Total weight of hazardous waste, sea water with a breakdown based on the Tons following disposal methods if applicable: Tons Total weight of non-hazardous waste, as described according to the following disposal method Tons if applicable: (Total domestic waste + reuse of sorted internal + waste used by external recycling). Tons Total volume of water recycled usage: (m3) Treated hazardous 2020 Transported waste (filter press 38.430 hazardous waste cake latex) Tons Tons 5 PT. Indo Kordsa, Tbk | www.indokordsa.com Awards and Certifications (102-12) • Golden Taxpayer from the Directorate General of Taxation. • Crowned as a loyal customer of PT. PGN since the Company became its customer in 1984 (34 years) from PT. Perusahaan Gas Negara Tbk (PGN), December 15, 2018 • Anti-Corruption Awards From the Directorate General of Customs and Excise Quality Management System ISO 9001: 2015 by Lloyd’s Register Indonesia. • Occupational Health and Safety Management System Certificate from the Ministry of Manpower of the Republic of Indonesia for PT Indo Kordsa, Tbk and PT Indo Kordsa Polyester. Issued on September 17 2020 and is valid for three years. • Environmental Management System ISO 14001: 2015 by Lloyd’s Register Indonesia. Valid until May 18, 2023. 6 Indo Kordsa Sustainability Report 2020 • 100 Fastest Growing Companies Award from Infobank Magazine. • Best Trade Financial Solution Award, Award from The Assets Triple A among all companies in Indonesia for successfully increasing working capital by using the Letter of Credit import facility in collaboration with Standard Chartered Bank. • Stars Award 2019 - Global Synergy Category: Security Operating Center from Kordsa. • Kordsa’s All Stars - Cost Improvement Category Award. • All Stars Award - Best Total Productive Maintenance from Kordsa. • All Stars Award - Best Kordsa Improvement Team from Kordsa. • All Stars - Global Sinergy from Kordsa Category: GTPM-P.176 New Gen. Polyester Yarn Development, GTM-P.288 development of New Generation Low DSI Polyester Fabrics. • All Stars Award - Commercial Approval Success from Kordsa Category: Hankook Hungary NY. • All Stars Award - Best Total Productive Maintenance from Kordsa. • Best Supplier on Implementing Quality Assurance System. • Worker Champion Award (Champion I) in the Manufacturing Sector, West Java Province in 2019, from the Government of West Java Province. • TEMPO Country Contributor Awards 2019. This award is given to 23 public companies from 631 selected public companies. The parameters used by the assessment team were as follows: (1) Company Tax Turnover Ratio (CTTOR); (2) Effective Tax Rate (ETR); and (3) Payment of Company Annual Taxes. • Corporate Annual Financial Report Award from the Ministry of Trade of the Republic of Indonesia. 7 PT. Indo Kordsa, Tbk | www.indokordsa.com Message from Director (102-14) As a ‘Reinforcer’, Indo Kordsa support every step towards a better future. From time to time, this support is transformed into activities that have a positive impact on economic, social and environmental aspects. Therefore, we are part of Kordsa, proud to present the first edition of the “2020 Indo Kordsa Sustainability Report”. From a broad perspective, from the expectations and priorities of Kordsa employees, clients, shareholders and investors regarding sustainability, in the coming period, Kordsa will focus on five main areas of the United Nations Sustainable Development Goals. The five areas are: “Industry Innovation and Infrastructure”, “Responsible Consumption and Production”, “Decent Work and Economic Growth”, “Gender Equality”, and “Quality Education”. Ibrahim O. Yildirim President Director 8 Indo Kordsa Sustainability Report 2020 Through that perspective, we support better education by providing academic scholarships to bright students in our community to support better education. We believe that scholarships will provide opportunities for children to improve their facilities and learning environment. In addition, to build healthy and resilient communities, we also participate in improving health facilities. We believe that strong education and health can be a pillar that improves the economy of the surrounding community. We believe that Indo Kordsa’s business also provides economic benefits to the surrounding community, especially in developing mutually supportive partnerships. We also embrace the surrounding community by inviting local entrepreneurs to partner and grow together. We believe that the environment has a big influence in strengthening and building the resilience of our company. To maintain a strong work ethic in our company, we always fulfill and comply with any regulations set by the government; one of them is to maintain and preserve biodiversity. We are putting our best efforts and resources to minimize our carbon footprint by reducing energy consumption and waste output through various programs and innovations. Therefore, on this occasion, I would also like to express my gratitude to Kordsa’s life- enhancers who have given their best initiatives to support the efficient use of energy in their daily activities. We will always appreciate any changes and efforts to improve a safe and comfortable workplace for all of us. Committed to the vision of “Inspired to strengthen life”, we will continue to be committed to strengthening lives and preserving the environment as well as increasing the positive impact of our operations on everyone around us. Responsibility for Sustainability Report Board of Commissioners and Directors of PT. Indo Kordsa Tbk. has evaluated and claimed full responsibility for the accuracy of the contents of this Sustainability Report, including financial statements and other related information. Ibrahim O. Yildirim President Director 9 PT. Indo Kordsa, Tbk | www.indokordsa.com ABOUT 02 SUSTAINABILITY REPORT 10 Indo Kordsa Sustainability Report 2020 This report is prepared based on POJK No.51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Service Institutions, Issuers and Public Companies as well as the GRI Standards (GRI Standards) which are officially effective as of July 1, 2018. 11 PT. Indo Kordsa, Tbk | www.indokordsa.com About Sustainability Report 2020 Indo Kordsa Sustainability Report is the first report published by PT Indo Kordsa Tbk., and is submitted for the period January 1st to December 31st, 2020. This report is planned to be published annually. The information conveyed in the report comes from the Head Office of PT Indo Kordsa, Tbk, except for consolidated financial data, including financial data from all Subsidiaries. (Disclosure 102-45, 102-50, 102-51, 102-52). The publication of this report is part of the implementation of the principles of Good Corporate Governance, namely Transparency, Accountability, Responsibility, Independence and Fairness. The publication of the report is also a form of our commitment to comply with the provisions of Article 66 paragraph 2c, Law No. 40 of 2007 concerning Limited Liability Companies (PT), which requires PT Indo Kordsa, Tbk to submit a report on the implementation of Social and Environmental Responsibility (TJSL) in the Annual Report. The issuance of this report is also our effort to fulfill our obligations as stipulated in OJK Regulation No. 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies. 12 Indo Kordsa Sustainability Report 2020 This report has been prepared based on POJK No.51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies as well as the GRI Standards, which officially