In an effort to achieve sustainability, a governance system is needed that will assist companies in managing the process of setting goals, implementing a businesswide sustainability strategy, reporting, strengthening relationships with external stakeholders, and ensuring overall accountability. PLN is committed to implementing sustainable governance by taking into account various aspects such as economic, environmental, social and governance. The realization of the Company’s sustainability goals and commitments is stated in the Company’s Long Term Plan document.
Our sustainability goals cannot be separated from the mission that explains our existence and noble goal, namely, to run a business electricity and other related fields, satisfaction-oriented customers, company members and shareholders, make electric power as a medium to improve quality people’s lives, strive for electric power to become a driving economic activity, and carry out environmentally friendly business activities.
IIn carrying out this mission, we have set a vision that becomes a measurable focus of the achievements we want to achieve, namely to become the Leading Electricity Company in Southeast Asia and #1 Customer Choice for Energy Solutions
Effective sustainability management requires leadership commitment and clear directions that can be communicated to all members of the Company. All of this requires a strong governance structure. To that end, the Company established a sustainability governance structure to strengthen the Company’s strategy to transform into a Green, Lean, Innovative and Customer Focused company.
Currently, the person in charge of implementing sustainability within the Company is under the Sustainability Committee. This is in line with OJK Regulation No. 51/ POJK.03/2017 concerning Sustainable Finance, SEOJK No. 16/SEOJK.04/2021 concerning the Form and Content of the Annual Report of Issuers or Public Companies, as well as responding to the GRI and TFCD frameworks.
As an attempt to implement sustainable Good Corporate Governance, we also continuously prepare the human capital by carrying out capacity building and training for all the personnel of units involved. Moreover, the technical equipment, such as Technical Guidance or Standard Operating Procedures (SOP), are continually developed, so that the rule up to the unit level can be implemented sustainably. The guidance and SOP become the guidelines for PLN’s units to fulfill the requirements of environmental protection and management based on international standards, as well as to fulfill Indonesian regulations.
A Sustainability Committee was established in 2021 to oversee the implementation of PLN’s delivery of its Corporate Social Responsibility (CSR) program and of the achievement of the Sustainable Development Goals (SDGs). The same committee will also be responsible for the oversight of PLN’s ESG Framework. The committee’s organization is shown below. It is supervised by PLN’s President-Director (equivalent to a CEO) and headed by the Director responsible for Human Resources Management. Members represent PLN divisions responsible for governance, human rights, the environment, human resources, health and safety, consumers, supply chain management, communications and CSR. The Committee reports to the Board of Directors and, through this, to the Board of Commissioners.
Day-to-day delivery of environmental, biodiversity, gender and social protection matters are decentralized to the regional and operating unit level under the oversight and direction of PLN’s head office. PLN is committed to ensure all regional and operating units are fully staffed with trained experts to perform these responsibilities.
As described earlier, PLN is developing corporate guidelines, where these are currently missing, to ensure consistent application of ESG policies across all units. PLN also recently issued corporate guidelines on emergency response planning and activities, which will also need to be fully rolled-out across all offices.
At a corporate level, PLN’s overall governance is already considered good. This includes:
- Independent oversight.
PLN is managed by an executive Board of Directors which is overseen by a 12-member Board of Commissioners. The Board of Commissioners is split equally between Commissioners representing concerned Government ministries and agencies and independent Commissioners (including the President). - Conduct and ethics.
All PLN employees are obliged to abide by a Code of Conduct which is widely socialized and to sign up to PLN’s Ethical Standards. PLN has adopted best practice rules and guidelines governing procurement and anti-corruption measures including, in 2020, implementing a new anti-bribery program following international standards (SNI ISO37001:2016). - Transparency and reporting
PLN publishes a comprehensive Annual Report explaining all aspects of its business and financial performance. The Annual Report is accompanied by a Sustainability Report providing detailed information on PLN’s environmental and social performance