Top 10 Indonesian Plantation Companies with the Best Sustainability Index

According to research by the Katadata Insight Center (KIC), PT Salim Ivomas Pratama Tbk has the best corporate sustainability index in Indonesia's plantation sector.

This is recorded in the Katadata Corporate Sustainability Index report released by KIC in August 2022.

KIC compiled this index based on data from sustainability reports released by 18 domestic publicly listed plantation companies in June 2022.

KIC then analyzed these reports, highlighting several key indicators such as energy and water consumption, waste and greenhouse gas emission reduction, environmental and social programs, and company-held sustainability-related certifications.

The results of the analysis were formulated into a score on a scale of 0-100. A score of 0 indicates a very low level of sustainability, while 100 means very good.

Using this method, PT Salim Ivomas Pratama Tbk received a score of 71.5, the highest among other plantation companies whose data were available.

"Based on its sustainability report, PT Salim Ivomas Pratama Tbk's total energy consumption in 2021 was 5.42 million gigajoules (GJ), down from 7,334,000 GJ in 2020," said the KIC team.

"In 2021, greenhouse gas emissions from PT Salim Ivomas Pratama Tbk's factory and operations also decreased by 18%, mainly due to the shift in fuel at the palm oil mill from diesel generators to electricity," they continued.

Other plantation companies that achieved fairly high sustainability index scores include PT Pinago Utama Tbk, PT PP London Sumatra Indonesia Tbk, and others as shown in the graph.

"This appreciation is expected to encourage companies to present complete data," said the KIC team.

"The results of the assessment are also a form of support for sustainable financing implemented by various financing institutions, and a reference for sustainable business from upstream to downstream," they continued.

In addition to assessing the sustainability of plantation companies, KIC also compiled a similar index for the mining and food and beverage sectors. The complete report can be viewed and downloaded at this link.