Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) has proudly secured the top position in the global ESG Risk Rating by Sustainalytics, achieving a score of 7.1, classified as "Negligible Risk." This accomplishment positions PGE as the company with the lowest ESG risk within both the renewable energy subsector and the global utilities industry. This accomplishment underscores the company's effective management of material ESG risks, rated at a medium risk level, demonstrating PGE’s capability to successfully mitigate various ESG risks impacting its operations.
The Sustainalytics ESG Risk Rating evaluates a company’s exposure to material ESG risks, including carbon emissions and workplace incidents, alongside its management strategies for these risks. A lower score signifies a reduced risk that could affect the company’s performance. Furthermore, Sustainalytics has recognized PGE as a leader in the IDX ESG Leader Index, which tracks the stock performance of companies with strong ESG ratings.
Julfi Hadi, President Director of PGE, emphasized that the integration of ESG principles is a strategic initiative for PGE, aimed at creating substantial positive impacts on society and the environment, while managing an ethical business and delivering added value to the community and stakeholders.
“The commitment of PGE to proactively address climate change risks exemplifies best practices in sustainable and accountable geothermal management. We take pride in setting a benchmark for ESG management not only within the geothermal sector but across the global renewable energy industry landscape. This achievement further solidifies our position as a world-class green energy company and underscores the viability of geothermal energy as a sustainable resources with wide-ranging benefits,” said Julfi Hadi.
PGE is enhancing its Sustainability Strategy (ESG Roadmap) for 2024–2030 through a range of initiatives. In environmental effort, PGE aims to reduce emissions by approximately 29% by 2023 and has actively reported climate-related risks through the Task Force on Climate-related Financial Disclosure (TCFD). Additionally, the company’s biodiversity initiatives continues to progress under the Biodiversity Action Plan (BAP).
On the social front, PGE is dedicated to sustainable employee development, targeting a 15% representation of women in managerial roles by 2030 and increasing the inclusion of workers with disabilities to 1%. In terms of governance, PGE practices sustainable procurement by ensuring vendor compliance with ESG standards and adhering to Good Corporate Governance (GCG) principles. As a publicly listed company, PGE remains committed to fulfilling GCG requirements and maintaining compliance with regulations governing public companies.
Kitty Andhora, Corporate Secretary of PGE, remarked that the company's achievements reflect a steadfast commitment to environmental protection, community empowerment, and upholding GCG in all operational aspects.
“The ESG principles have been deeply ingrained in the culture at PGE, ensuring that all our initiatives and innovations are consistently evaluated through the lens of environmental, social, and governance considerations. I extend my gratitude to all PGE employees for their unwavering dedication to mainstreaming sustainability, which has enabled us to achieve a leading global position as a utility and renewable energy company with the lowest ESG risk,” concluded Kitty Andhora.
