Sustainability is the foundation of our business. The Merdeka Group believes that the sustainability of our company depends not only on efficient and profitable business practices but also on responsible environmental management, employee health and safety, employee empowerment, as well as our significant contribution to the welfare of society and the adoption of the highest standards of corporate governance.
Our commitment to sustainability is outlined in the Sustainability Policy which is based on:
- The United Nations Guiding Principles on Business and Human Rights
- International Labour Organization Declaration on fundamental principles and rights at work
- OECD Due Diligence Guidance for Responsible Business
- Financial Services Authority Regulation No. 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies.
As a signatory of the United Nations Global Compact (UNGC), the Merdeka Group is committed to adhering to the 10 UNGC principles regarding fundamental responsibilities in human rights, labor, environment, and anti-corruption.
In 2022, we formulated the Six Pillars of Sustainability Strategy aligned with the Sustainable Development Goals. These six pillars are:
- Preserving the environment
- Ensuring “everyone is safe, always”
- Empowering our workers
- Caring for the community
- Respecting human rights
- Adopting good corporate governance.
In October 2023, Merdeka’s MSCI ESG rating increased from BBB to A, placing Merdeka as the only Indonesian mining company in the diversified Metals and Mining sub-industry to receive this rating. Merdeka is also included in the ESG Leaders Index by MSCI Indonesia, which includes various large and mid-sized companies with relatively higher ESG performance compared to their peers in the sector.
Throughout 2023, we maintained our position as the leader in the ESG risk ranking by Sustainalytics among diversified mining companies in Indonesia in the comprehensive assessment category. This ranking improved our global position from the 18th percentile to the 16th percentile of the metals and mining sub-industry. The Merdeka Group also received several sustainability awards in 2023 and 2024.
The board of directors is fully responsible for the implementation of sustainability at Merdeka, approving the sustainability strategy, targets, and policies to realize Merdeka’s sustainability commitment.
The Merdeka Board of Directors has established a Sustainability Committee, which is outlined through the Sustainability Committee Charter. The committee’s role is to support the Board in decision-making and oversee the implementation of sustainability. Led by the Vice President Director, committee members include the President Director, Executive Management, General Manager at each mining operation, Chief Mining Engineer (CME), General Manager at the head office, and managers from the Sustainability Department. The sustainability committee holds meetings at least four times a year. The meeting results are reported by the Committee Chair to the Board during board meetings.
Responsibilities and Duties of the Sustainability Committee
- Review the sustainability policy, strategy, targets, and guidelines of Merdeka.
- Monitor sustainability laws and regulations at the national and global levels, relevant developments in sustainability standards and trends for Merdeka, and make recommendations to update Merdeka’s sustainability strategy, policies, targets, and guidelines.
- Identify and manage the environmental, social, and economic impacts of Merdeka’s operations.
- Review methods of communicating sustainability policies, strategies, targets, and performance to internal and external stakeholders.