Climate change and the risk of environmental damage have become major concerns for companies around the world. Sustainable business development based on the Environmental, Social and Governance (ESG) concept is an important company strategy in facing global challenges while reducing the impact of environmental change and saving operational costs.
Regarding ESG implementation, Sinar Mas Land is the only property developer in Indonesia to be included in the 2024 Top-Rated ESG Companies List for the Asia Pacific region. Based on Morningstar Sustainalytics data, Sinar Mas Land recorded an ESG Risk Rating point of 14.5, which means it is at a low risk level. ESG Risk Rating measures the implementation of ESG in a company and how well the company manages ESG risks. The lower the company’s ESG Risk Rating, the better the company is at managing ESG risks.
Sinar Mas Land Chief Risk & Sustainability Officer M. Reza Abdulmajid stated that Sinar Mas Land is always committed to implementing ESG principles in all aspects of the company’s operations. “In 2023 we will add five operational buildings that utilize new renewable energy (EBT) with a Renewable Energy Certificate (REC), namely Sinar Mas Land Plaza Thamrin, Sinar Mas Land Plaza BSD City, My Republic Plaza BSD City, Green Office Park 1 BSD City , and Green Office Park 9. Sinar Mas Land is also working with Chandra Asri to apply asphalt mixed with processed plastic waste for 8.6 km or the equivalent of 410 tons of plastic waste in the BSD City area. This makes the BSD City area the first township in “Indonesia is implementing asphalt mixed with plastic waste. Due to all these efforts, Sinar Mas Land has succeeded in increasing its ESG rating score and maintaining its status as a low ESG risk company.”
From the social governance aspect, Sinar Mas Land has provided community assistance in various fields ranging from economics, agriculture, environment, to education in the South Tangerang City, Tangerang Regency, to Bogor Regency areas. This community is empowered through several programs including School Development, Literacy Development, Village Development, Business Development, Go Digital People’s Market, and the Local Agricultural Partnership program.
The School Development and Literacy Development Program has reached 35,395 participants which is implemented through a series of activities such as increasing the capacity of teaching staff, school assistance, providing scholarships, increasing student capacity through social entrepreneurship and multimedia classes, as well as improving the quality of early childhood education (PAUD). Meanwhile, the Local Agricultural Partnership program which has reached 480 farmers is implemented through agricultural cultivation in partnership with local farmers. This program not only has an economic impact, but is also a form of environmental conservation effort because it is based on the principles of environmentally friendly agriculture (sustainable farming) and sustainability-oriented food security (sustainability) by using organic fertilizer and natural pesticides.
For its commitment to implementing sustainable and environmentally friendly development in accordance with ESG principles, Sinar Mas Land succeeded in obtaining four awards in the Indonesia CSR Excellence Award 2024, namely The Best Company for Community Commitment, The Best Integrated CSR, The Best Climate Change Management Sustainability CSR Program, and The Best Leadership Commitment on CSR given to Michael Widjaja as Group CEO of Sinar Mas Land. Not only at the national level, Sinar Mas Land won a number of awards including the ASEAN Energy Awards 2023 in the Energy Efficient Building category, Special Submission – Zero Energy Building, TrenAsia ESG Awards 2023 in the Best Action in Property Company category, Property Guru Indonesia Property Awards 2023 in the category Best Smart Building Development and Special Recognition in ESG, Property Guru Asia Property Awards 2023 in the Best Smart Building Development in Asia category, and 8th Global Good Governance Awards 2023 in the Best Green Innovation and Solution and Innovation in Environmental Solution categories. (RO/Z-2)
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