PT PLN’s Collective Strategy in Managing Sustainability Risks

PT PLN’s Collective Strategy in Managing Sustainability Risks 800 500 Maxima


PT PLN’s Collective Strategy in Managing Sustainability Risks

21 April 2024 | by Maxima

PT PLN has reduced its ESG risk from 38.5 to 30.3 (2022-2023), the lowest in ASEAN. They apply ESG principles through climate change risk management, emissions reporting, talent development, and cybersecurity. This strategy enhances reputation, operational efficiency, and long-term sustainability. With the Maxima Impact Model framework, PT PLN demonstrates a commitment to significant social, economic, and environmental impacts.

One of the critical issues for an Impact Agency is how a company can identify and measure the real effects of its actions. Therefore, in developing various plans, Maxima not only looks at visible results but also understands how these actions can have a long-term impact on people and the surrounding environment.

As a guideline or standard for companies in making investments, one of the bases of sustainability is Environment, Social, and Governance (ESG), which aims to create an impact on the environment through energy savings and waste management. Quoting from OG Indonesia, based on the Sustainalytics assessment results, PT Perusahaan Listrik Negara (PLN) successfully reduced its ESG risk rating by 8 points from 38.5 to 30.3 during the 2022-2023 period. This figure is also the lowest in the electric utility sector in the ASEAN region.

Implementing ESG has become essential for companies because of the long-term benefits it provides. According to Regulatory System Compliance, the benefits for companies implementing ESG include “supporting company performance, helping to identify risks and business innovations, enhancing company reputation, leveraging business opportunities, improving management quality through transparency, maintaining long-term business sustainability, and supporting financial performance.”

PT PLN’s detailed achievements in reducing ESG risks include climate change risk management, Greenhouse Gas (GHG) emissions reporting, water governance programs, talent development, cybersecurity programs (ISO 27001), and tax disclosure.

In the Impact Model concept, the steps taken by PT PLN to become a company that implements ESG are already part of a systemic impact. This is demonstrated by the organization’s ability to significantly change the system. The scale of the impact is not only limited to benefits for the company but is also felt in social, economic, and environmental aspects. This is proof that PT PLN is capable of moving deeply and building a collective commitment to achieving sustainable business.