PTPN Group Achieves Top Position Globally for the Agriculture Sector Agriculture Sector Based on Sustainalytic Rating

Jakarta, August 16, 2023 – Following an assessment by Sustainalytics (an international ESG rating agency) in July 2023, PTPN III (Persero) holding’s Perkebunan Nusantara was declared to have a low risk of material financial impact caused by environmental, social and Governance (ESG) factors. In its report published in July 2023, PTPN III (Persero) received an ESG Risk Rating of 17.1, which places the company at low risk of significant impacts from ESG factors.

The ESG Risk Rating conducted by Sustainalytics measures a company’s exposure to ESG risks and measures how well prepared the company is to manage these risks. The lower a company’s ESG Risk Rating, the better the company is considered to manage ESG risks. This quantitative measurement can also use comparative results from similar industries and sub-industries. This ESG Risk Rating puts PTPN III (Persero) at the top globally in the agriculture sub-industry. This achievement illustrates the company’s earnest efforts in applying ESG principles and practices in all its business and operational activities.

According to Sustainalytics, PTPN III (Persero)’s business activities in the agriculture industry have a “medium” ESG Exposure Risk. This category is often associated with issues related to human rights, greenhouse gas emissions, and the environmental impact of commodity products. However, the strict risk management practices implemented by PTPN III (Persero) management, especially with regard to environmental issues, biodiversity, water use, climate change, and diversity initiatives, are considered quite effective in mitigating such risks.

CEO of PTPN III Holding (Persero), Mohammad Abdul Ghani, stated that PTPN III (Persero)’s efforts to implement environmentally friendly business practices and initiatives to tackle climate change have played an important role in improving the company’s ESG performance. “Efforts to strengthen workplace safety, corporate governance, and community empowerment have also contributed to this success,” Ghani said in Jakarta, Wednesday (16/08/2023). Ghani further revealed that this achievement is a catalyst and at the same time motivation for all PTPN people to continue to strengthen their commitment and consistency in applying the principles of sustainable development for the environment and society in order to improve company performance. “Of course the results of this ranking will increase PTPN III (Persero)’s motivation in managing ESG issues, and the company is committed to continuing to improve its performance on issues of natural sustainability in the future,” Ghani said.

As one of the largest agricultural companies in the world, Ghani emphasized that PTPN III (Persero) is committed and continues to strive to apply the principles of sustainability in the fields of Environment, Social and Corporate Governance (ESG) in all its business activities. Ghani stated that the transformation of PTPN III (Persero) which has been carried out over the past four years and has proven to be able to improve operational and financial performance, is inseparable from the ESG initiatives that have been implemented. “In carrying out all business activities, the company always ensures that the products produced not only have an economic impact but also have an impact on society and the environment, while adhering to applicable corporate governance provisions.”

In line with the company’s vision, namely “To become a leading national agribusiness company and world-class competitiveness that contributes sustainably to the nation’s progress,” PTPN’s ESG/sustainability strategy is undoubtedly intertwined with and has even become an integral part of the company’s overall vision, of which sustainability is a fundamental element.