Indonesian Political, Business & Finance News

PTPP Accelerates Green Transformation, ESG Integrated into Business Strategy

| | Source: REPUBLIKA Translated from Indonesian | Business
PTPP Accelerates Green Transformation, ESG Integrated into Business Strategy
Image: REPUBLIKA

PT PP (Persero) Tbk (PTPP) is strengthening its sustainability transformation by integrating environmental, social, and governance (ESG) principles into the company’s business strategy and risk management. This step is in line with the improvement in PTPP’s 2025 ESG Risk Rating from Sustainalytics, which continues to show a positive trend over the past three years.

PTPP Corporate Secretary Joko Raharjo stated that PTPP’s ESG Risk Rating score has improved from 39.5 in 2023 to 36.9 in 2024, then down to 32.3 in 2025. According to Joko, this achievement reflects the gradual strengthening of governance and company risk management.

“This gradual improvement reflects the strengthening of the risk management system, governance, as well as the integration of sustainability principles in the company’s business strategy,” said Joko in his statement in Jakarta on Thursday (7/5/2026).

Joko said that the construction industry faces significant ESG challenges, ranging from carbon emissions, waste management, occupational safety, to supply chain governance. Therefore, PTPP has begun to strengthen various initiatives to support the company’s green transformation.

According to Joko, several steps being implemented include the formation of an ESG Committee at the corporate level, implementation of the 2024-2028 ESG Roadmap, integration of ESG into Enterprise Risk Management (ERM), application of green construction, and digitalisation of monitoring through the ESG dashboard and GREENV Platform.

“We ensure that every project not only meets construction quality standards but also considers governance aspects, safety, as well as environmental and social impacts,” said Joko.

He conveyed that a data-based approach and integrated management system become the main foundation to maintain ESG implementation consistency across all company operational lines. With this approach, the company can carry out identification, mitigation, and evaluation of sustainability risks in a more measurable manner.

Entering 2026, PTPP targets the expansion of ESG implementation to subsidiaries, strengthening the measurement of Scope 1, Scope 2, and Scope 3 emissions, as well as increasing energy and material efficiency in strategic projects.

“With a consistent improvement trend, PTPP continues to strengthen its position as a construction company oriented towards sustainable development and integrated risk management,” said Joko.

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