VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

VOInews, Jakarta: PT Pertamina (Persero) has launched a Sustainable Finance Framework that aims to ensure the company's sustainability efforts are integrated into its funding strategy. The framework is the basis for Pertamina and its subsidiaries to access funding for green projects and energy transition projects. "The strategic step to develop the Sustainable Finance Framework is in line with efforts to provide a broader commitment to create long-term value and sustainability for stakeholders and have a positive impact," said Pertamina's Finance Director, Emma Sri Martini, as reported by pertamina.com, Thursday (20/6/2024).

According to her, the Sustainable Finance Framework also strengthens Pertamina's commitment to achieving the 32% emission reduction target from the business as usual (BAU) scenario by 2030 and supports the Indonesian Government's efforts to achieve Net Zero Emissions (NZE) by 2060 or even sooner, while ensuring national energy security.

ISS-Corporate, as an independent opinion provider, has issued a Second Party Opinion (SPO) validating the consistency of the Sustainable Finance Framework with Pertamina's sustainability strategy.

In addition, the platform conforms to international sustainability funding standards, namely the Green Bond Principles (GBP) issued by the International Capital Market Association (ICMA) and the Green Loan Principles (GLP) issued by the Loan Market Association (LMA). "Through this Sustainable Finance Framework, Pertamina and its subsidiaries can issue green or transitional funding instruments to finance or refinance eligible green or transitional projects in nine categories," said Emma.

The nine categories include renewable energy, green hydrogen, transmission and distribution networks for renewable and low-carbon gases, green buildings, clean transport, low-carbon fuels, sustainable management of living natural resources and land use, emission reduction, and to transition in the shipping sector.

It said the implementation of the Sustainable Finance Framework also includes a robust governance and reporting process for transparency and visibility for investors and lenders, regarding the positive environmental impact of Pertamina's green investments or energy transition. "The presence of the Sustainable Finance Framework is expected to be one of Pertamina's concrete steps as a leader in energy transition, which can contribute to Indonesia's sustainability journey," added Pertamina's VP Corporate Communication, Fadjar Djoko Santoso.

With the support of Crédit Agricole Corporate and Investment Bank (CACIB) who acted as Structure Advisor during the process, the development of the Sustainable Finance Framework not only strengthens Pertamina's commitment to sustainable business practices.  But more than that, it also demonstrates Pertamina's intention to use the Sustainable Finance Framework as a reference for integrating sustainability in future funding.

Pertamina, as a leading company in the energy transition sector, is committed to supporting the Net Zero Emission 2060 target by continuing to encourage programmes that have a direct impact on the achievement of the Sustainable Development Goals (SDGs).

"All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) in all lines of business and Pertamina's operations," she concluded.