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ESG Pathways:

Adapt.
Collaborate.
Thrive

2022
PT Chandra Asri Petrochemical Tbk
In this presentation

Environmental, Social, and Governance (ESG)


why it matters to Chandra Asri
Caring for Environment
Sharing Social Values
Sustainability Governance

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ESG - Why it matters to Chandra Asri
Chandra Asri manages Environmental Social Governance
Environmental, Social,
EMISSION COVID-19 MANAGEMENT
and Governance Material • Greenhouse OF THE LEGAL
Topics based on our Gas Emissions OCCUPATIONAL AND AND REGULATORY
materiality assessment, • Toxic Emissions PROCESS SAFETY COMPLIANCE
we believe by managing
ESG, the Company will WASTE TRAINING,
• Hazardous Waste EDUCATION,
be able to increase
• Non-hazardous DIVERSITY
employee productivity,
Waste
mitigate potential risks, • Circular Economy LOCAL COMMUNITIES
reduce costs, and meet
expectations from ENERGY PRODUCT
stakeholders RESPONSIBILITIES
CLEAN TECHNOLOGY • Chemical Safety
• Product Stewardship

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Our Sustainability Commitments

Implementing Engaging Measuring,


and maintaining stakeholders monitoring,
the principles evaluating, and
and behaviour of communicating
CSR sustainability
performance
Building a Promoting and
culture of social encouraging the
responsibility practice of socially
responsible behaviour

*Complete information about our sustainability commitment can be seen on Chandra Asri Sustainability Report

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Green Manufacturing Roadmap
2018 - 2020 2021 - 2023 2024 - 2026
Excellent Green Manufacturing

GOLD PROPER Rating, Social


Eco-Innovation, Benchmark World
Class Company, VOC Reduction

Enhance Green Manufacturing

GREEN PROPER Rating, Reduce-Reuse-Recycle, VOC Management

Establishing Green Manufacturing

Reduction program for emission, water consumption, and waste

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Company Performance Rating Program
in Environmental Management (PROPER)
PROPER is a form of government policy, to improve the Company’s
environmental management performance within the framework of compliance
and beyond compliance efforts using ratings. In 2021, there were 2,593
companies consist of 299 types of industries assessed.

2018 - 2019 2019 - 2020 2020 - 2021 2020 - 2021


Green Blue Green Green

PT Styrindo Mono PT Styrindo Mono PT Chandra Asri PT Chandra Asri


Indonesia Indonesia Petrochemical Tbk Petrochemical Tbk
(now Pulo Ampel (now Pulo Ampel Ciwandan Site Pulo Ampel Site
Site) Site)

Note: Since the merger with Chandra Asri in 2021, PT Styrindo Mono Indonesia is now PT Chandra Asri Petrochemical, Pulo Ampel Site.

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Addressing Climate Challenges: Reduce
Energy and Emissions
tons
Chandra Asri strives to improve its energy of CO2e GHG emission
performance while at the same time increase per annum
productivity, with the following approach:
• Implement international standard i.e;
Environmental Management System 3,146 Powering

ISO 14001:2014 and Energy Management solar panels generates


System ISO 50001:2018, energy audits, and clean energy
global benchmarking to improve energy
performance
• Maximize operational efficiency and optimize electric
natural resources energy conservation forklifts
• Support purchase of energy-efficient
products and services, and support
energy-efficient designs.

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Emissions
Enclosed Ground Flare (EGF)
Greenhouse Gas Toxic Emissions to prevent air emissions
Chandra Asri committed to support Chandra Asri is
Indonesia’s Nationally Determined committed to controlling
Contribution (NDC) on Climate Change, toxic emissions, including
we focus on reducing carbon footprints, Volatile Organic
especially from processes, use of energy, and Compound (VOC), SOx,
emission sources from operations, including: and NOx, including:
• Implement international standard • VOCs reduction
Environmental Management System for Open Source of
ISO 14001:2014 Hydrocarbon/Leak
• Adopting more advanced technologies Detection and Repair
and processes to increase efficiency (LDAR)
and reduce costs • Manages and monitors tons of heat hydrocarbons
• Implementing energy efficiency the toxic emissions hydrocarbons and air from
programs and apply more environmentally so that they do not burning per radiation combustion
friendly technologies exceed the permissible
threshold value.
hour released
• Conducting ESG and GHG Framework
studies, as well as green opportunities
to improve ESG Performance.

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Energy and Emissions Performance
Renewable Energy
ELECTRICITY USAGE FROM SOLAR PV ENRGY INTENSITY AND REDUCTION GHG EMISSION INTENSITY
(GIGAJOULE) (TON CO2e/TON PRODUCT)
12.78 0.71
2019 1,252.00 11.28 11.43
2.56 0.637
2020 3,664.40 2.21 Reduction 0.633
1.23 target:
Reduction
target 1%
1% from (0.627/ton)
baseline*
2021 4,424.40
2019 2020 2021 2019 2020 2021

Energy Intensity Intensity reduction


Energy Conservation (Gjoule/ton product) (% weighted average)

461,599.23 GJ Reduction percentage is calculated from


the energy required per ton of production.
Energy conservation result in 2021 * GHG emission Scope-1 and 2, emission
* Excluding the use of Solar PV * Each plant has its own energy baseline, 2014-2015 measuring method refers to the PERMEN LHK
for PE and PP Plant, 2016 for Cracker and SM Plant No. 73 of 2017 and IPCC Energy

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Waste
Chandra Asri applies Extended Producer Responsibility (EPR)
to prevent and minimize impacts on the environment by
implementing Circular Economy
Reduce waste Innovation of
generation and reusable and
increase utilization recyclable products

4,454.45 ton
Recycled hazardous waste Plastic circulation in
(97.38% of the total the economy that
hazardous waste) are not polluting the
environment
529.24 ton • Plastic Asphalt Roads
Reutilized non-hazardous waste • End-to-end Plastic Waste Management
(50.19% of the total • Sagara Reducing Plastic Marine Debris
non-hazardous waste) • Jakarta Recycle Center (JRC)

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Waste Management
Hazardous Waste Management Hazardous Waste Intensity (ton/KT product)

7,216.37 2.40

4,574.29
3,323.5
Reduction
Total of Hazardous 0.88 Target 5%
Waste Generation (0.84)
2,634.38 (ton) 1.19
1,209.67
0.95
Reused (ton)
2019 2020 2021 2019 2020 2021

Non-hazardous Waste Management Non-hazardous waste utilization ratio (%)

1,351.76 62.7%*
Utilization
1,054.44 Ratio Target
847.44 50.2% 2%
685.69 (53.8%)
529.24 Non-hazardous
28.3%
Waste Generation
194.12 (ton)
* Data includes
Utilization (ton) scrap metal waste
2019 2020 2021 2019 2020 2021

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Plastic Asphalt Roads
50.8 km
Plastic asphalt road
Since 2018,
utilizing plastic bag
waste as a mixture 3,133 people
of plastic asphalt Absorbed workforce

In 2022, we are
37.5
million pieces
Plastic bag waste
progressing plastic
asphalt road in
coorperation with 218,971 kg
Plastic waste managed
Regional Government from landfill

of Garut, West Java * Since 2018 until 2021

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End-to-end
Plastic Waste Management
Plastic waste management facility of IPST ASARI
managed by the community in Serdang, Serang.

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Employment
Management
3,911 liters
opportunities Plastic fuel production
capacity of 8 tons
of plastic
waste/month and
pyrolysis capacity of

8,199 kg
100 kg/batch
1,412 people
Plastic waste diverted from landfills
Beneficiaries

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Sagara Reducing Plastic Marine Debris
Cleaning and segregation of plastic waste collected
by fishermen while at sea 2,111 kg
Plastic waste including

812
collected marine
debris

people
Beneficiaries

4,588
Plastic waste
kg

diverted from landfills

2,006 kg
Collaboration
Plastic marine debris
collected in four months with IPST
until December 2021 ASARI

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Water
Clean Technology to Save Water
Chandra Asri is committed to manage and
optimize the use of water in a responsible manner
to minimize environmental impacts that may
result from operational activities.

Water conservation approach including:

Optimize use of Implement 4R Implement


alternative water (reduce-reuse- green technology
source from recycle-recovery) to conserve
seawater in process water

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Water Performance
Percentage of water use from Water use by source (ton)
alternative source
5,000

25.00%
3,000

15.00% Water from


Third Party
Percentage of 1,000
water use from
5.00% alternative Desalinated
source water
2018 2019 2020 2021 2018 2019 2020 2021

Water Consumption and Intensity

4,512 4,494 4,787

Water Consumption 1.5 Reduction


(thousand ton) 1.21 1.25
target of 1.5%
(1.19 ton/
Water Intensity ton)
(ton water/ton product)
2019 2020 2021

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Wastewater
Chandra Asri is committed to manage and ensure
the quality of wastewater is within the threshold
value and environmental load.

Wastewater management including:

• The largest WWTP Olefins at Ciwandan Site


Office and WWTP at Pulo Ampel Site Office have
each been connected to the SPARING water
quality monitoring tool which sends wastewater
quality data in real time to the data center of the
Ministry of Environment and Forestry

• Daily control and monitoring of wastewater


quality from Ciwandan and Pulo Ampel site to
ensure meet the quality standard

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Wastewater
The volume of wastewater discharged from the wastewater treatment process in 2021 has decreased
by 6.9% compared to the total wastewater generation in 2020. This was achieved by reducing the
volume of water that needs to be treated in the WWTP using the 4R method.

Pollution Load From Olefins WWTP Wastewater Volume and Intensity

40.92
2,715 2,526
1,222
0.064
25.11 22.7 0.721
Intensity
0.058 Reduction
0.054 Target 5% 0.407 0.407
(0.061 ton/KT
Product)
2019 2020 2021 2019 2020 2021

Pollutant Load (ton COD) Wastewater disposal into the sea (ton)
Pollutant Load Intensity (ton/KT products) Wastewater intensity (ton wastewater/ton product)

Note:
The increase of wastewater volume and pollution load in 2020 was due to the operation of New Polyethylene and B1-MTBE plants,
commissioning, start up, and shutdown activities, as well as additional records from new compliance points.

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Green Energy

Chemistry
saving of
Reducing
Reducing 6 million
carbon dioxide
nitrogen oxide kilowatts
emissions by up
Chandra Asri collaborates emissions by to 2,100 tons
with Ecolab to implement up to 75%
sustainable chemistry
which can save water, Green
reduce manual cleaning
or draining and therefore
Chemistry
prevent wastewater Design
generation, save energy Projection Reducing
wastewater
for draining, and prevent generation by
GHG emissions. up to 472,000
Reducing water
tons
consumption
by up to 92.2
million gallons
per year

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Clean Technology The first 2020
plant in Indonesia
Clean technology to apply the latest petrochemical
that can minimize technology called Lummus
the environmental Technology
and social impacts to MTBE and Butene-1
(B1) plants
of petrochemical
operations is at the
core of investment
considerations in
2021
Chandra Asri. 2019 Construction of Solar
Photovoltaic Power Plant with a
capacity of 1,153 kWp

Initiation of Green Chemistry


Enclosed Implementation using PRISM™
Ground Flare (EGF) and 3D TRASAR technology in
operation for an water treatment plant
enclosed combustion of
hydrocarbons

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Sharing Social Values
COVID-19 Assistance for Communities
Medical 90 500 600 5 42 125,106
Devices liters of pcs hand unit units of units of hazardous trash bags
hand sanitizers wash water tank swab booths vaccine carrier box for medical waste

Pharmaceuticals
429 30,640 920,000 25,700
tons of oxygen unit rapid test flocked swab PCR kits

Personal
Protective
Equipment
12,242 50,400 392,202 4,430 1,320
pcs hazmat pcs medical gloves surgical mask KN95 masks pcs face shield

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Occupational and Process Safety
0.24
0
Case of fatal
Lost Time
Accident Rate
(Chandra Asri
Occupational Safety Performance

0.11
only) 0.10
accident 0.09 0.09

1
0.06

0.00 Total accident


case 0.02 0.02
Incident rate 0.01
(Chandra Asri only) 0.00 0.00 0.00

2016 2017 2018 2019 2020 2021

Benchmark Chandra Asri

4,098,722 * Safety performance of Chandra Asri and contractors


Total working hours
(Chandra Asri only) ** Benchmark from International Oil and Gas
Producer (IOGP), 2021 data is not available in the
date of publication

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Training and Education
Employee Value Proposition Programs in employee Training program that supports
(EVP) encourages the alignment management to increase the Company’s operations
of employee motivation with the employee engagement and development
Company’s aspirations to grow together

57,924.06 77%
Number of training hours Result of Employee
Total Number of Training Hours

Engagement Survey
(2021 target: 77%) 2021 57,924.06

1,987 25% 2020 46,265.60

Number of employees Increase in total training


hours compared to 2020 2019 136,190.73

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Diversity and Inclusion

Opportunity
for female
ZERO CASE
Labor disputes at the Bipartite
candidates with cooperation institution level
suitable qualification (2021 target: 0 case)
to apply for Program
designed by

15%
employment
the ‘CA Women’
Team
Number of female employees
(2021 target: 14.9%)
Inclusion
Program which
includes several
activities in women’s
20%
Women at
health managerial level

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Local Communities
Helps communities affected
73
Mothers and children
253
Participants of community
by COVID-19 participating development program
in the health program (Community development
(Health program target: program target: 60
Support the Sustainable 70 beneficiaries) beneficiaries)

Development Goals (SDGs) PERFORMANCE


METRICS

Conducted a Community
Satisfaction Index survey
86
Scholarship
US$2.5 million
(Scholarship program target: Investment for CSR activities
84 beneficiaries) * Part of ESG investment of total
Preserve and protect the US$5.01 million
environment as well as
biodiversity
COMMUNITY SATISFACTION INDEX SCORE

74.2 77.6
Interventions for vulnerable
communities in the fields
Satisfactory predicate Satisfactory predicate
of education and health (Ciwandan Site) (Pulo Ampel Site)

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Health Pillar Education Pillar

86
Free COVID-19 Vaccination by Chandra Asri 12 university students received 6 selected students in ring 1
Recipients 1st dose 2nd dose Booster
education and training for chemical received full tuition university
Scholarships industry engineer Anyer Merak scholarship for orphans and
General public 3,788 3,788 406 Cilegon/Chemical Manufacturer less fortunate children
* data as of January 22, 2022 Association (P3TIK AMC/CMA)
equivalent to Diploma-1, in
cooperation with the Faculty of
Engineering of Untirta

73
beneficiaries
Health intervention

106
for mothers and
children

Families received
access to clean
water, hygiene, and
sanitation

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Economic Pillar Social and Environment Pillar

2
Economic institution
Construction
of a 60-meter
bridge at
strengthening
program Cihara, Cibeber
District, Lebak
Regency, and
the inauguration
of 1 Tangkilsari
bridge at

253
beneficiaries
Cimanggu
District,
Pandeglang
Economic Safety
empowerment Regency for
Inspector training for

15
program youths from community
Mangunreja access.

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Maintain and
monitor the
Develop an Edu- coral reef
Ecotourism Mangrove conservation
Area covering an area on Panjang
of 9,500 m2 in Lembur Island
Mangrove, Patikang
Hamlet, Citeureup Village,
Panimbang District,
Pandeglang Regency

The faunal
diversity index is at
2.06 for the Aves
Preservation family, 1.63 for the
and monitoring Herpetofauna family,
of Taman Kehati and 1.1 for the
Kadubereum, Mammal family Maintenance of a tree Transplanted
Padarincang, an area of 50 ha in Cidanau 1,270 coral seedlings
area of 6.5 Ha watershed of 22,620 hectares in Panjang Island
through the payment for since 2020
environmental services

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Community Satisfaction Index conducted by an independent third party,
Center for Entrepreneurship, Change and Third Sector - Trisakti University (CECT-Trisakti)

Priority Zones of CSR Program

74.2
out of 100 and fits in the
Ring II Satisfied category for
Radius 4 – 10 km Ciwandan Site
Ciwandan District and
Anyer District

Ring I Ring III


Radius 0 – 4 km Radius > 10 km

77.6
Gunung Sugih Banten Province and
Subdistrict; Indonesian Territory
out of 100 and fits in the
Kosambironyok Village Satisfied category for Pulo
and Anyer Village Ampel Site

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Product Responsibilities
Currently, all stages of manufacturing for Asrene® and Trilene® have
comply with the SVHC EU-REACH Candidate List of Substances.
Chandra Asri is on track for phasing-out of certain chemicals.

2021 - 2023
The application of Non-Phthalate Impact Copolymer Polypropylene (ICP)

Chandra Asri continues to


develop better and safer
product to meet customer needs 2022
Phase out or discontinue use of tris (nonylphenyl) phosphite (TNPP)
and product-related safety antioxidant in the manufacture of Polyethylene products
regulations, i.e Non-Phthalate
Polypropylene in accordance with
the European Union Regulation 2024
on Registration, Evaluation, The application of Non-Phthalate products
Authorization, and Restriction of which is currently under development

Chemicals (EU-REACH).

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Product Utilization

Innovation of UR3840V.
Developed into a
COVID-19 vaccine
Thin wall carrier box.
injection
Chandra Asri molding (TWIM)
continues to develop HI50TN
products as an
effort to innovate
and fulfil customer
needs, including by
designing material as
PP Homo Injection
response to COVID-19 HI10HO
pandemic situation. to make flock swab test
on COVID-19 PCR test
equipment. The consortium
of University of Indonesia
and several leading
industries have been able
RI20HC02 to produce swab sticks from
for syringes and the resin under the name
housewares of HS19.

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Corporate Governance
Board of Commissioners (BoC) is tasked with supervisory
General Meeting of Shareholders and advisory duties to the Board of Directors of the
application of the GCG principles of the Company.
• 5 of the 14 members are independent commissioners
(35%) higher than requirements of 30%
• Annual Performance Appraisal is conducted by
Board of Commissioners Board of Directors applying self-assessment
• The BoC is assisted with Audit Committee and
Remuneration Committee
Supporting Structure Supporting Structure

Audit Committee Corporate Secretary


Board of Directors (BoD) is responsible for the
Remuneration Committee Internal Audit accomplishment of goals and objectives set by the
management of the Company.
• Consists of 15 members with respective expertise
• Annual Performance Appraisal is conducted by using
Corporate Scorecard
Soft Structure Charters • The BoD is assisted with Corporate Secretary and
Business Principles Board Charter
Code of Conduct Audit Committee Charter
Internal Audit Unit
Corporate Values Remuneration Committee Charter

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Sustainability Governance
Sustainablity Committee

Chandra Asri Sustainability Committee

Safety, Health Corporate


Corporate Product Corporate Social Employee Human
& Environment Management
Communication Development Responsibility Relations Resources
(SHE) Office

5 1
Independent Commisioners
Sustainability Director
(more than the required 30%)

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Ethics and Integrity
Chandra Asri’s The dissemination Ethics and Integrity

9
Code of Conduct of the rules and are uphold by Ethics
based on standards of Oversight and Bribery
iSTAR Values is behavior in the & Anti-Corruption Code of Conduct
Training Sessions
communicated Code of Conduct Policy, and supported throughout 2021
to every to all employees by the implementation
individuals in
the Company, as
was carried out
since it was first
of Whistleblowing
System. 100%
Percentage of employees
a fundamental published in 2015 covered by Code of
instrument and annually as Conduct training
for behavior a module in the
guidelines for all
employees.
New Employee
Orientation
0
Cases of Ethics
Program. Violation

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For more information please contact:
Head Office Address:
PT Chandra Asri Petrochemical Tbk
Wisma Barito Pacific Tower A, 7th Floor @chandraasri.id
Jl. Let. Jend. S. Parman Kav. 62-63 PT Chandra Asri Petrochemical Tbk
Jakarta 11410, Indonesia @ChandraasriID
Phone: (62-21) 530 7950 PT Chandra Asri Petrochemical Tbk
Fax: (62-21) 530 8930 PT Chandra Asri Petrochemical Tbk
Visit our website at www.chandra-asri.com

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