At EMP, the protection of the environment stands as a perpetual commitment to the company’s stakeholders. EMP is committed to the effective management of environmental resources within its operations, striving to make a positive environmental impact across the communities it serves. The company’s ambition extends beyond mere compliance with environmental regulations, aspiring to leadership in environmental stewardship. EMP has established ambitious goals across various domains, including emissions, biodiversity, and water use, aiming to minimize its environmental footprint.
Environmental Performance
EMP’s environmental performance is closely monitored and communicated to EMP’s stakeholders, including consumers, investors, and regulators. EMP also highlights its environmental performance on an annual basis in the annual sustainability report
Scope 1 & Scope 2 Carbon Emissions
| Emission Type | Unit | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| Scope 1 | Ton CO2 Eq | 238,873 | 247,916 | 218,824 |
| Scope 2 | Ton CO2 Eq | 495 | 306 | 221 |
| *EMP accounts for its Scope 1 and 2 carbon emissions using the Equity Share approach per the Greenhouse Gas Protocol, covering all assets currently in production – Malacca Straits, Kangean, Bentu, WK’B’, Sengkang, Korinci Baru and the corporate office (“EMP Tbk”) | ||||
In 2023, there was a 3.5% reduction in overall emissions, primarily attributed to a significant decrease in Scope 1 emissions in Malacca Strait. This reduction is attributed to improved performance of power generation turbines, compared to previous year, thus resulting the unnecessary use of diesel generators at the Malacca Straits asset. Conversely, in Bentu, emissions witnessed an uptick following the installation of two gas compressors, and similarly, in Kangean, an increase in emissions was observed due to the installation of a gas compressor, both measures undertaken to maintain the gas pressure and production rates.
Scope 1 & Scope 2 Emissions Intensity
| Emission Type | Unit | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| Emissions Intensity | Ton CO2 Eq/BOE | 0.018 | 0.016 | 0.014 |
Environmental Initiatives
Building on the long-time commitment to environmental stewardship, EMP is proud to announce the new ambitions under our Environmental policy. To meet these targets, EMP will continue to build on existing and implement a suite of new initiatives.
| Target | Initiatives to meet EMP’s ambitions (Non-Exhaustive) |
|---|---|
|
GHG Emissions Reduction “EMP is committed to a 20% carbon emission by 2030 and achieve Net Zero by 2060” |
|
|
Responsible waste management “EMP is committed to a 5% year-on-year reduction on hazardous and toxic waste generation.” |
|
|
Responsible water stewardship “EMP is committed to zero wastewater incidents” |
|
|
Biodiversity Conservation “EMP is committed to protecting the natural environment by minimizing potential impact on land and marine ecosystems and mitigating local system impacts through conservation and ecological restoration schemes” |
|
Environmental Outreach
Environmental awareness and education will continue to be a key area of interest for EMP.
EMP conducted a townhall for EMP employees to share the company’s environmental targets and initiatives. The session detailed our goals for reducing emissions, ensuring responsible water usage and minimizing waste production. The interactive town hall session fostered open dialogue, allowing employees to engage, offer feedback and contribute ideas to enhance our sustainability efforts. Employees are also continually expanding their environmental knowledge through educational videos, bulletins, and posters published on the company intranet.
EMP is committed to enhancing environmental knowledge not just among its employees but also among all third-party collaborators. Through its annual “Environmental Days,” EMP acts as a platform for environmental education, inviting external experts, including representatives from the Ministry of Environment, to impart knowledge on various topics such as waste reduction and regulations to over 250 participants from EMP and its contractors, in both Jakarta Office and fields.
In local communities, EMP collaborates on developing eco-tourism programs centered around the local mangrove ecosystem and has published a book detailing the flora and fauna species within its operational areas. These initiatives serve as vital touchpoints for fostering environmental awareness.
Environmental Management System
As part of its commitment to be a leader in environmental stewardship, EMP has in place a robust Environmental Management System that is fully complaint with local environmental regulations. This includes:
- Law No. 32 of 2009 on Environmental Protection and Management.
- Government Regulation Number 22 of 2021 Concerning the Protection and Management of Environment (Replaces GR No 27/2012 and 101/2014).
- Regulation of the Minister of Energy and Mineral Resources Number 14 of 2012 concerning Energy Management.
- Regulation of the State Minister for the Environment of the Republic of Indonesia Number 16 of 2012 on Guidelines for the Preparation of Environmental Documents.
- Regulation of the State Minister for the Environment No. 14 of 2013 regarding Symbols and Labels of Hazardous and Toxic Waste.
Beyond compliance, EMP is committed to aligning its Environmental Management Systems with international best practices. Two out of six active operational sites (Kangean and Bentu) have received ISO14001 certifications. This means that 33% of our active operations have internationally recognised EMS certification. Additionally, EMP achieved PROPER BLUE categories at ITA (Malacca Strait) and Bentu, highlighting EMP’s compliance with local regulations, and PROPER GREEN at Kangean, highlighting environmental stewardship beyond compliance.
To ensure the proper implementation of our Environmental Management System, annual audits are conducted by EMP, which serves the dual purpose of ensuring readiness for external certification and identifying potential areas for corrective action. Externally, for all sites that have been certified by ISO14001, recertification audits are carried out once every three years, and annual surveillance audit to ensure continued alignment with the standard.
Environmental Impact Analysis and Monitoring
EMP rigorously adheres to the Analisis Dampak Lingkungan (AMDAL) procedure, conducting comprehensive environmental impact analyses that encompass land, air, water, forestry, and biodiversity assessments before initiating any new projects or expansions. Following these analyses, an Environmental Management and Monitoring Plan is developed and submitted for review to the Ministry of Environment and Forestry. This plan is also made available to external stakeholders through a structured public consultation process to ensure transparency and inclusivity. Development activities only proceed upon receiving the necessary approvals.
Additionally, EMP is committed to maintaining strict adherence to the Environmental Management Plan by producing performance reports every 6 months on the management of environmental conditions and impacts. These reports detail critical environmental parameters including water and air quality, biodiversity health, and monitoring of ecologically sensitive sites. This ongoing reporting ensures continuous oversight and alignment with our environmental objectives, reinforcing our commitment to sustainable development and environmental stewardship.
Implementing the Environmental Management System
EMP’s Environmental Management System is guided by the company’s Operations Excellence Management System (OEMS), which is also used as a standard guideline for the company SHE Management Guideline (SMK3LL). This consists of the following 12 elements:
| OEMS Element | Addressing |
|---|---|
| Leadership, commitment, and accountability | Responsibility of leaders to conduct and exemplify health and safety culture |
| Risk management | Identification and assessment of OSH risks inherent in activities with subsequent development of strategies to mitigate these risks |
| Personnel, training, and behavior | Ensuring that SHE practices are carried out by competent personnel and that a culture of SHE is promoted throughout the organization |
| Contractor management | Ensuring the compliance of contractors to SHE during selection and operational processes |
| Facilities design and construction | Ensuring that construction and modification of the company’s facilities are in accordance with SHE standards |
| Operation and maintenance activities | Adherence to government regulations during operation and maintenance activities |
| Management of change | Maintaining low HSE risk during major operational changes in the organization |
| Information and documentation | Providing accurate information on materials, processes, and facilities to mitigate risk |
| Emergency and crisis management | Protection of the company’s assets, resources, and reputation during a crisis |
| Communication and community and stakeholders’ awareness | Active communication with stakeholders to maintain public trust |
| Incident reporting and investigation | Identification and investigation of every incident related to health, safety, technical, security, and environment |
| Assessment, assurance, and improvement | Internal and external assessments to improve performance and processes |
EMP acknowledges that despite best efforts, accidents relating to the environment may still occur within its scope of operations. Therefore, EMP’s SHE policy stipulates a detailed emergency preparedness procedure in the event of environmental emergencies, such as oil spill. This includes clear roles and responsibilities in the event of an emergency and identification of the necessary resources for crisis management. To ensure the process remains robust in the event of an emergency, EMP tracks emergency readiness through regular drills and continues to socialize and educate these procedures with all relevant stakeholders.
Transparency is crucial to mitigate the effects on impacted communities and on EMP’s reputation. In the event of an accident, a clear line of communication is immediately established between the area manager, General Manager and Vice-President of SHE, as well as with the Emergency Response Taskforce, which includes Board-level members. External communication with local media is done through an established Media Communications Team. These procedures ensure the accurate and timely reporting of environmental issues that may arise within the scope of EMP’s operations.
Incident Management Procedure
Most importantly, EMP is committed to avoiding the recurrence of similar environmental issues. To that end, EMP has in place a robust procedure for incident reporting, investigation and follow-up, which includes:
| Reporting & Improvement Procedure | Explanation |
|---|---|
| Incident Reporting | Principle of reporting every incident, regardless of severity and including near misses, which are then used to refine ongoing preventative programs. |
| Incident Investigation | Comprehensive identification of root causes or system failures that led to the incident or near-misses. |
| Incident Trends | Quarterly and annually analysis and review by management of the trends in incident occurrence, highlighting the follow-up actions needed on a quarterly basis. |
| Lessons Learnt | Findings from documented investigations, with results socialized across functions and business units. |
| Corrective Action | Provisions on the findings from the investigations to prevent the recurrence of similar incidents. |