Strengthening Green Governance by Integrating Climate Change Risks into Business Strategy
National paint manufacturer PT Avia Avian Tbk (Avian Brands) has published its first Climate Risk Report, based on the global International Financial Reporting Standards (IFRS) S2. This move marks a strategic milestone for the company in strengthening climate governance transparency amidst increasing investor focus on sustainability issues. The climate risk report was released alongside the company’s Sustainability Report for the 2025 fiscal year.
Robert Christian Tanoko, Director of Operations and Development at Avian Brands, explained that the report was prepared using the Climate-related Disclosures (IFRS S2) standard issued by the International Sustainability Standards Board (ISSB). Through this framework, climate change issues are now directly integrated as part of financial risks and long-term business resilience strategies.
“This Climate Risk Report is the initial step for Avian Brands to build a climate reporting system that is more transparent, measurable, and integrated with the company’s business strategy. We believe that companies capable of understanding and managing climate risks effectively will possess stronger business resilience in the future,” Robert stated on Monday.
In its inaugural report, Avian Brands maps two main aspects of climate risk: physical risk, resulting from extreme weather changes that could disrupt supply chains, and transition risk, related to regulatory changes and shifting consumer preferences towards green products.
Through this report, Avian Brands is beginning to integrate climate risk identification, business impact analysis, mitigation strategies, and climate transition management into its business processes and corporate governance. This step demonstrates that climate change is no longer viewed merely as a non-financial issue, but has become a vital part of the company’s sustainability and business resilience strategy.
In this first Climate Risk Report, Avian Brands outlines various aspects of climate governance, physical and transition risk identification, climate risk management approaches, and business opportunities arising from more sustainable product development and operations. Robert added that the commitment to adopting the IFRS S2 standard will be followed up concretely in field operations. Avian Brands plans to accelerate energy efficiency programmes in production areas, reduce carbon emissions from logistics activities, and launch more eco-friendly decorative paint product innovations.
The publication of this report based on international standards also enhances the readiness of the paint manufacturer to meet regulatory expectations for information disclosure, both from domestic capital market authorities and green audit standards for global business partners.