On the environmental aspect, PT Adaro Minerals Indoensia Tbk ("AMI") supports the development of Indonesia’s green ecosystem, in particular the commodities required in the transition toward green economy. AMI participates in the Adaro Group’s support of Indonesian government’s commitment to reducing GHG emissions and achieving the NZE target in 2060 or earlier.
The Indonesian government has established the policies and implemented the measures to achieve the target to reduce GHG emission by 31.89% (or up to 43.2% with the international support) in 2030 as its Enhanced Nationally Determined Contribution (“ENDC”).
The challenges to solve the impacts of climate change can create new opportunities such as the utilization of green technologies and renewable energy. In facing this situation, the company has integrated environmental policies into the policy framework of quality, mining safety, environment, energy, and GHG. Such integration demonstrates its commitment to facing the environmental challenges and climate change in a comprehensive manner, enhancing the effectiveness of environmental risk management, minimizing negative impacts of the operational activities on the environment, and capitalizing on the opportunities to enhance business sustainability.
For environmental management, the company refers to the Adaro Group’s Integrated Management System policy documents, which include:
Environmental Management Standard.
Energy Management Standard.
Technical Guideline for Water Monitoring.
Technical Guideline for Air Quality Management and Monitoring.
Technical Guideline for Hazardous Waste Management (“B3”).
Technical Guideline for Hazardous Material Management (B3).
Technical Guideline for Biodiversity Monitoring.
Technical Guideline for Wastewater.
Energy Management
AMI strives to manage and reduce the impacts of its operational activities through responsible approaches toward energy consumption and GHG emissions, since energy plays a crucial role in ensuring the company’s operational sustainability. Energy management has been an essential aspect of the company’s sustainability strategies and an integral part of its responsibilities.
In order to optimize energy consumption, the company applies the Energy Management System (“EnMS”) developed by the Adaro Group. The EnMS serves as the company’s control reference to ensure efficient energy consumption, which helps to reduce carbon footprint as well as operational costs. In addition, the ISO 14001:2015 certification concerning Environmental Management System obtained by MC in 2022 has affirmed AMI’s commitment to sustainable environmental management, including on the energy management.
In its operations, the company consumes the environmentally-friendly fuel biodiesel B30 and B35 in addition to carrying out various initiatives to support energy transition and Indonesia’s ENDC, including the implementation of the energy and conservation opportunity programs.
Emission Control
AMI recognizes the urgency to take significant immediate actions toward the decarbonization commitment in operational activities, and more importantly, as part of the responsibility to the environment. AMI through its subsidiary has set up a Zero Emission Task Force assigned to perform GHG emission calculation.
AMI has calculated scope 1 emission using the Intergovernmental Panel on Climate Change (IPCC) 2006 methodology with the scope including fuel combustion, cooling, fire extinguisher, waste burning, and wastewater treatment plant or WWTP. AMI does not produce scope-2 emissions because it produces its own electricity (without the supply from the state utility company PLN).
The company also control non-GHG emissions such as sulphur dioxide (SO2), nitrogen oxide (NOx), carbon monoxide (CO), particulate, and emissions containing ozone depleting substances. AMI also monitors and controls the quality of the air affected by the generator’s emissions by examining the contents of those substances in the air samples to ensure that the environmental standards imposed by the government are always fulfilled.
Furthermore, the use of a refrigerant that does not produce Ozone Depleting Substances (ODS) to prevent ozone layer depletion is another initiative of the company to fulfil its commitment to environmental sustainability.
Water and Effluent Management
Water and effluent management are among the crucial aspects of the company’s attention. The water supply for AMI’s operations is sourced from the surface water, for which the volume consumed and quality are monitored and reported regularly to the government through the Information System for Environmental Contamination Monitoring (SIMPEL). Proper management can help to prevent environmental contamination which may be produced by the operational activities, including the operations of the employee dorm.
The company does not use surface water from water stress areas, and ensures efficient consumption and in accordance with the applicable regulations.
Mine effluents are managed to ensure that the water discharged to the environment has fulfilled the required quality standard. To ensure compliance, daily and monthly monitoring is performed by employing an external laboratory. The effluent samples taken in 2023 have shown compliance with the four required parameters, i.e. pH, total suspended solid (TSS), iron (Fe), and manganese (Mn). The company did not record any effluent spillage or violation against the effluent discharge limits.
Waste Management
Waste management has been one of the company’s focused areas in environmental management. Each action taken, from the development of environmental policy to the implementation of environmental management and monitoring programs, has been directed toward minimizing the impacts of waste on the surrounding environment.
The company’s solid waste management include the following:
Reducing waste at the source/generator of the waste by implementing various programs and methods.
Separating waste at the source by providing waste bins classified into four types (organic waste, unorganic waste, residual waste, and hazardous waste).
Using organic waste for animal feeds.
Composting organic waste that cannot be used for animal feeds by performing window composting, from which the compost is used as fertilizer for reclamation plants.
Recycling certain waste such as glass, metal, cans, wood, and plastic.
Performing incineration on the waste that no longer has economic value to reduce the waste volume by 5% to 10%.
Controlled landfilling by regular landfilling and closure.
Biodiversity Conservation
AMI is responsible for running operational activities in a safe, effective, efficient, and environment-oriented manner, in addition to contributing to the local community development.
The company also ensures the participation of all employees in biodiversity monitoring within the work environment. The employees are given the access to report their observations on biodiversity through a link provided. In event of any incident related with biodiversity, the employees have been provided with an incident reporting mechanism that accommodates quick and efficient reporting. Hence, the reports can be followed up with proper responses for biodiversity conservation purpose.
The company’s activities for biodiversity management, monitoring, and conservation are:
Biodiversity Risk Assessment and Biodiversity Management Action Plan (BMAP), which has five main focused areas of the management of operational impacts, forest (habitat) management, the management of Rare, Endangered, Endemic, Protected Species (REEPS), stakeholder involvement, and community participation.
Initial Baseline Survey, performed particularly at the land clearing stage, to reduce land clearing impacts.
Proactive conservation of endemic plants, to conserve plant diversity, especially the endemic plants which can only be found in particular locations. Plant conservation consists of three main steps: recording, rescue, and transplantation.
The OkeHati (biodiversity observation) program that aims to enhance the awareness of the employees and contractors on the importance of biodiversity conservation around the operational sites. The employees and contractors are encouraged to report the existence of important wild animals as additional information on biodiversity monitoring and important habitat identification for wild animals. The information from the OkeHati program is also treated as key consideration in the infrastructure planning and development, to minimize the impacts on the biodiversity around the operational areas.