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PT Avia Avian Tbk
Leading with Color,
Inspiring with
Sustainability
PT Avia Avian Tbk (“Avian Brands”) continues to progress towards
a sustainable and colorful future through its commitment to
sustainability across all aspects of its operations. Avian Brands has
successfully maintained its dominance as the number one paint
brand in Indonesia, supported by the most extensive distribution
network reaching various regions to the farthest corners of the
country. This excellence is reinforced by an ever-expanding
product portfolio, modern R&D capabilities, and strong, integrated
manufacturing operations. Various national and international
achievements further affirm Avian Brands’ competitive position at
the global industry level, including improvements in sustainability
ratings and various relevant independent certifications
The theme of the 2025 Sustainability Report, “Leading with
Color, Inspiring with Sustainability,” illustrates Avian Brands’
2025 Sustainability Report
role not only as the leader in the Indonesian paint market but
also as a primary driver of sustainability transformation within
the industry. This theme emphasizes that product innovation,
creativity in color solutions, and commitment to the environment
and sustainability are a cohesive unit that mutually reinforce one
another. Avian Brands believes that market leadership comes
with the responsibility to deliver greater impact for consumers,
the industry, and the environment.
This year also marks a significant milestone in Avian Brands’
sustainability journey. The improvement in the Sustainalytics
assessment, which now places the company in the Low Risk
category, the attainment of better EcoVadis scores, success in the
FTSE Russell assessment, and consistency in the MSCI Indonesia
Small Cap Index prove that ESG strengthening efforts have
yielded tangible results. With stronger governance, integrated
supply chain control, and a certified professional workforce, Avian
Brands strengthens its position as a pioneer of sustainability in the
Indonesian paint industry, offering colors that bring more than
just beauty, but also the promise of a better future.
2025 Sustainability Report 1
Page 3
PT Avia Avian Tbk
About the 2025 Avian Brands
This year’s assurance scope focused on the Avian Brands Sustainability Strategy (ABSS), which serves as Avian Brands’
primary ESG implementation framework, covering four priority pillars: Product, Environment, People & Community, and
Sustainability Report
Governance. This approach ensures that performance measurement and information disclosure related to ABSS have been
carried out transparently, consistently, and in accordance with materiality principles and stakeholder expectations.
In selecting an independent assurance provider, Avian Brands ensures that the decision is made through objective and
The 2025 Avian Brands Sustainability Report is the 5th edition of a report that has been published annually since 2021. transparent governance mechanisms. The selection of an assurance partner considers credibility, independence, technical
This report is a manifestation of Avian Brands’ commitment to providing transparent and comprehensive information to all competence, international track record, and alignment with the company’s strategic needs in strengthening the reliability of
stakeholders on the company’s sustainability performance across economic, social, environmental, and governance areas. sustainability reporting. Through this process, Avian Brands reaffirms its commitment to continuously improving reporting
quality while building stronger trust among all stakeholders.
Through this report, Avian Brands reaffirms its strategic sustainability direction as, as encapsulated in the Avian Brands
Sustainability Strategy, which is executed through four main pillars: Product, Environment, People & Community, and
Governance. These four pillars serve as the foundation for Avian Brands’ initiatives to deliver high-quality, eco-friendly products,
conserve nature, empower people and communities, and implement transparent, and responsible corporate governance.
The preparation of this Sustainability Report refers to the following standards:
Reporting Period, Frequency,
Financial Services Authority Regulation No. 51/POJK.03/2017
on the Implementation of Sustainable Finance for Financial
Global Reporting Initiative (GRI) Standards
2021 using the with Reference option as Information Restatements, and Contact
Services Institutions, Issuers, and Public Companies and a guideline, while demonstrating support
its implementing regulations, namely the Circular Letter of for the achievement of the Sustainable
Avian Brands prepares and publishes the Sustainability Report once a year. The report for the previous period was published
the Financial Services Authority of the Republic of Indonesia Development Goals (SDGs), including
in April 2024. The 2025 Sustainability Report period is from January 1, 2025, to December 31, 2025. This 2025 Sustainability
No. 16/SEOJK.04/2021 on the Form and Content of Annual the early adoption of the GRI 103: Energy
Report has no significant changes compared to the previous period. To comply with the principle of validity, in the event
Reports for Issuers or Public Companies. 2025 standard.
of a restatement or reiteration of information contained in the previous report due to certain reasons, such as differences
in methodology or calculation methods, we will mark such restatement or reiteration with: *restated. Further information
regarding this report and its contents can be obtained through:
Sustainability Accounting Standards Climate Disclosure Standards Board
Board (“SASB”) – Chemical Standards. (“CDSB”).
Dodik Moerdijanto Hera Septi Astuti
Sustainability Officer Corporate Secretary
(62-31) 8968000 (62-31) 99850500/99850600
Reporting Boundaries and Scope qas_4@avianbrands.com
corsec@avianbrands.com
investor.relations@avianbrands.com
Avian Brands’ Sustainability Report contains information on social aspect, as well as the energy consumption and www.avianbrands.com www.avianbrands.com
the implementation of sustainability principles in economic, emissions aspect, data disclosure is currently limited to
environmental, social, and governance aspects within PT Avia Avian Tbk (AVIA) at the operational locations of
Avian Innovation Center Avian Brands Building
Avian Brands and all Subsidiaries. In the economic section, Avia Avian Sidoarjo (AAP) and Avia Avian Serang (AAS),
financial information is presented in accordance with the PT Tirtakencana Tatawarna (TKTW), and PT Tirtakencana Jl. Raya Buduran No. KM 19 Jl. Ahmad Yani No. 317
Consolidated Financial Statements, including information Batamindo (TKBI). Furthermore, the governance and Sidoarjo 61252 Surabaya 60234
on Avian Brands and all Subsidiaries. Meanwhile, in the environmental aspects only include data from Avian Brands. Jawa Timur, Indonesia Jawa Timur, Indonesia
Report Verification and Validation (Assurance)
from External Parties
To ensure the quality, accuracy, and credibility of the Standard (AA1000AS) at a Type 2 – Moderate Assurance
information presented, the 2025 Avian Brands Sustainability level, which includes an evaluation of the sustainability
Report has undergone an independent assurance process data management system, the accuracy of reporting
by Decar Verite Asia. This process was conducted in methodologies, and the level of consistency between the
accordance with the international AA1000 Assurance narrative and the data presented.
2 2025 Sustainability Report 2025 Sustainability Report 3
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PT Avia Avian Tbk
Table of Contents
76 Green Label Certification 78 Customer Satisfaction 79 Customer Complaint Handling
77 Product Recycling 79 Information Security Protection 80 GMO-Free and Animal Testing-Free
Products
Environmental Pillar
1 Theme of the Sustainability Report 2 Report Verification and Validation (Assurance) from External
Parties Performance
2 About the 2025 Avian Brands Sustainability Report
3 Reporting Period, Frequency, Information Restatements,
84 Key Performance Achievements of 92 Energy Consumption Outside the 102 GHG Management Budget Plan
2 Reporting Boundaries and Scope and Contact the Environmental Pillar in 2025 Organization
4 Table of Contents 102 Waste Management and Utilization
84 Environmental Impact Management 93 Renewable Energy Usage
Strategy
105 Biodiversity
Foreword from 94 Water Usage
85 Environmental Management 107 Environmental Expenses
Top Management 97 Emissions Management
87 Evaluation of Environmental Management
100 Emissions of Ozone Depleting Substances
6 Foreword from the President Commissioner 8 Foreword from the President Director 88 Sustainable Production Process
101 Air Emissions of Nitrogen Oxides (NOx),
90 Energy Efficiency Sulfur Oxides (SOx), and Other Significant
Sustainability in Motion: Air Emissions
2025 Highlights & Progress
People & Community Pillar
10 Product and Environment Performance 12 Avian Brands’ Product Pillar Performance 14 Avian Brands’ People & Community Pillar
Performance Performance
11 Social and Governance Performance 13 Avian Brands’ Environment Pillar
Performance 15 Avian Brands’ Governance Pillar 110 Key Performance Achievements of the 128 Remuneration 137 Implementation of SMK3 (Occupational
Performance
12 Avian Brands’ Economic Performance People & Community Pillar in 2025 Health and Safety Management System)
130 Benefit Programs Supporting All Aspects
111 Human Resources Management of Life 139 Emergency Preparedness and Response
Avian Brands’ 112 Diversity and Equality 132 Workplace Culture and Environment 140 Hazard Identification, Risk Assessment,
Sustainability Strategy and Investigation
116 Employee Recruitment and Turnover 133 Minimum Notice of Changes in
the Workplace 141 Occupational Health and Safety
18 Avian Brands’ Sustainability Strategy 21 Avian Brands ESG Roadmap 2030 24 Evaluation of Sustainability Strategy 120 Employee Competence Development Performance
Implementation 133 Industrial Relations
19 Avian Brands Sustainability Policy 22 Support for the Sustainable Development 125 Continuous Improvement Program 142 Corporate Social Responsibility
Goals (SDGs) 24 Challenges and Issues in Implementing 134 Labor Protection and Human Rights
20 Sustainability Management Review Sustainability Principles and Future Strategies
126 External Human Resources Development Policies 143 Community Empowerment Program
23 Sustainability Strategy Related to Climate
Change 26 Sustainability Culture 136 Occupational Health and Safety 148 Avian Brands Peduli: Coloring Indonesia
127 Performance Evaluation Management System
About
Avian Brands Governance Pillar
Performance
32 Avian Brands’ Sustainability Governance 40 Business Units, Products, and Segmentation 51 Group Structure and Subsidiaries
154 Key Performance Achievements of 158 Sustainability Risk Management 163 Taxation Governance
34 Avian Brands’ Identity 46 Manufacturing Facilities 51 Scale of the Company the Governance Pillar in 2025
159 Avian Brands’ Business Ethics and Code of 164 Statement of Non-Contribution to Politics
38 Avian Brands’ Sustainability Vision 47 New Products in 2025 52 Membership in Associations 154 Avian Brands Sustainability Policy Conduct
164 Cybersecurity, Data Privacy, & IT Governance
39 Avian Brands’ Sustainability Mission 48 Supply Chain 53 Sustainability Management Standards 155 General Meeting of Shareholders 161 Conflict of Interest Guidelines
166 Whistleblowing System
39 Corporate Values 50 Factory Operational and Marketing Areas 56 Leading with Color: Highlights & 155 Board of Commissioners 162 Communication Policy Guidelines
Milestones 2025 167 Sustainable Procurement Practices
157 Board of Directors 162 Anti-Fraud, Anti-Gratification, and Anti-
Corruption Policies
Determination of
Material Topics
60 Material Topic Determination Process 61 Material Topics of the 2025 Sustainability 62 Stakeholder Identification 169 Sustainability Report Responsibility 191 Sustainability Accounting Standards Board (“SASB”) Index –
Report Chemicals Sector Version 2023-12
171 Reader Survey
192 List of Disclosures in Accordance with Financial Services Authority
Product Pillar 173 Responses to Reader Survey Previous Year’s Report Regulation No. 51/POJK.03/2017 (“POJK 51/2017”) and Circular Letter
of the Financial Services Authority of the Republic of Indonesia
Performance 173 Written Verification from Independent Party No. 16/SEOJK.04/2021 (“SEOJK 16/2021”)
177 ESG Performance Data 195 Climate Disclosure Standards Board (“CDSB”) Index
68 Key Performance Achievements of 72 Integrated and Responsible Production 74 Optimization of Certified Products and
the Product Pillar in 2025 Systems Services
185 GRI Standards Index 2021 – with Reference
69 Commitment to Product Safety and 73 Served Markets 75 Product Innovation and Development
Quality
69 Health and Safety of Products and Services
4 2025 Sustainability Report 2025 Sustainability Report 5
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Foreword from
Top Management
PT Avia Avian Tbk
Foreword from
Dear valued stakeholders,
the President Commissioner
With deep gratitude, pride, and joy, we present the 2025 Avian Brands Sustainability Report. This year not only brings a string
of achievements but also marks the Company’s journey toward becoming a driving force and market leader that is oriented
toward Sustainability meaningfully contributing to the environment, people, and the future.
Our theme, “Leading with Color, Inspiring with Sustainability,” reflects our conviction that our company’s colors bring more
than just beauty; they also bring hope, optimism, and positive change. Through sustainability, we ensure that every color we
provide leaves no negative footprint on the planet we love.
Throughout 2025, Avian Brands has once again successfully maintained its position as the market leader with extensive
Hermanto Tanoko market reach, a comprehensive product variety, and sales that continue to dominate the national paint and coatings industry.
President Commissioner This success is by no means a coincidence, but rather the result of the collective commitment, hard work, and passion of
thousands of Avian Brands employees throughout Indonesia.
PT Avia Avian Tbk (Avian Brands)
Achievements and Recognition that Build Trust
We are proud that our success has been recognized through various national awards, official certifications, and international
sustainability ratings that place Avian Brands in the top percentile rank compared to global industry peers. This excellence is
reinforced by an extensive marketing network, cutting-edge production facilities, robust research and innovation capabilities,
and increasingly mature supply chain control through vertical raw material integration. Behind it all stands a workforce that is
not only skilled but also passionate and dedicated, backed by professional certifications that ensure quality and safety remain
the top priorities.
For us, sustainability commitment does not stop at numbers and targets. It lives in the way we work, how we select raw materials,
manage energy, protect water, reduce waste, and create more environmentally friendly innovations. We believe that sustainability
is a learning process. It is not just about what we have achieved, but how we continuously improve ourselves over time.
Through a decarbonization strategy, integration of ESG values into governance, low-carbon product innovation, and increased
operational efficiency, we keep moving toward long-term targets, including emission reductions and strengthening our
contribution to the circular economy. Simultaneously, we remain committed to maintaining occupational safety, developing
employee competence, and expanding social impact through community empowerment programs around our operational
areas, as well as other CSR initiatives that reach beneficiaries in the farthest corners of the country.
Collaboration for a Sustainable Future
We are grateful to have successfully pushed beyond our limits, making this journey a collaboration and a success. None of these
achievements would have been possible without the support of our customers, suppliers, local communities, government,
business partners, investors, and the entire Avian Brands family. Therefore, we express our sincere appreciation, not only for
supporting us but for walking together toward a greater vision: a better future.
This report stands as a testament to our commitment. Yet, more than that, it is an invitation to keep moving forward together,
building a more responsible industry, and ensuring a livable future for generations to come.
With great optimism, we carry on with this journey: to bring beauty to life with colors, and to protect the future through
sustainability.
Sincerely,
Hermanto Tanoko
President Commissioner
PT Avia Avian Tbk (Avian Brands)
6 2025 Sustainability Report 2025 Sustainability Report 7
Page 6
Foreword from
Top Management
PT Avia Avian Tbk
Foreword from
Dear valued stakeholders,
With profound gratitude and a sense of responsibility, we present the 2025 Avian Brands Sustainability Report. This report is
the President Director more than just a document; it is a manifestation of our commitment to sustainable growth, maintaining business ethics, and
creating value for the environment, customers, society, and future generations.
The year 2025 marks a significant milestone for Avian Brands. Amidst global shifts, rising customer expectations, and
increasingly urgent climate challenges, we continue to execute our sustainability strategy, which focuses on four main pillars:
Product, Environment, People & Community, and Governance. These pillars form the foundation of the Avian Brands
Sustainability Strategy, which represents a long-term journey toward cleaner operations, more responsible products, and more
robust governance.
Wijono Tanoko
President Director Through the Product Pillar, we reinforce our commitment to quality, safety, information transparency, as well as innovations
in low-carbon and low-VOC formulations. We continue to listen to our customers, adapt our standards, and ensure a better
PT Avia Avian Tbk (Avian Brands) experience at every service touchpoint.
In the Environment Pillar, we enhance energy efficiency, manage water and raw materials more wisely, strengthen circular
economy initiatives, and develop a decarbonization roadmap through renewable energy, emission management, and
low-carbon products. More than just operational targets, these actions represent our concrete contribution to addressing
climate change.
Through the People & Community Pillar, we ensure that corporate growth goes side by side with individual well-being.
We are expanding our CSR programs, strengthening our commitment to Human Rights, DEI, occupational safety, continuous
training, and employee welfare as the pillars of our organization.
The final pillar, the Governance Pillar, reinforces corporate integrity through transparent governance, a robust whistleblowing
system, legal compliance, and sustainable procurement and supply chain practices, including supplier assessments, the use of
renewable raw materials, and logistics optimization.
While significant achievements have been made, we are aware that sustainability is a long journey that requires consistency,
innovation, and collaboration. As such, we remain open to dialogue, building partnerships, and fostering a sustainability
culture in every part of the organization, from the formulation laboratory to the hands of our customers.
We would like to thank all stakeholders, employees, customers, suppliers, investors, regulators, and the community for taking
part in this transformation. Together, we are not just building products and businesses, but also a better future.
With great optimism, we continue on this path to bring colors that brighten up our lives without sacrificing the planet we all
share.
Sincerely,
Wijono Tanoko
President Director
PT Avia Avian Tbk (Avian Brands)
8 2025 Sustainability Report 2025 Sustainability Report 9
Page 7
Sustainability in Motion:
Highlights & Progress 2025
PT Avia Avian Tbk
Sustainability in Motion:
Highlights & Progress 2025 56.60% Use of Renewable Materials
in Production Processes
6.16% Increase in
57.76% Increase in
Medali Silver Ecovadis Cleaning Water Reuse
Low Risk Sustainalytics Inclusion in FTSE Russell Index: Hazardous Waste (B3)
for Production Processes
with a score of 17.3 (Low Risk) FTSE4Good ESG Series. Reuse compared to
Percentile Rank Top 11% (Advanced) compared to
the Previous Year
the Previous Year
Social and Governance Performance
SRI-KEHATI, ESG Sector Leaders
MSCI Indonesia Small Cap Index IDX KEHATI, Indeks ESG Quality 45 IDX ESG Leaders
IDX KEHATI
1.23% Reduction in Total 35.38% Increase in the
All Employees, including
Recordable Injury Rate (TRIR) of Implementation of Avian Brands
Outsourced Employees, Receiving
Operational Employees in Peduli CSR Programs, with a total
Regular Medical Check-Ups
Product and Environment Performance Avian Brands’ Plants investment of 5,253 million rupiah
5.36% Use of Renewable Electricity
27.26% Reduction in Scope 1 & 2 97.36% Increase in Renewable
compared to Total Energy, through 17.43% Decrease in Employee
Emissions compared to Energy Use from Solar Panels 20.00% Female Representation on 15.64% Increase in the Number of
Collaboration with Cirata and Turnover compared to
the 2021 Baseline. compared to the Previous Year the Board of Directors Employee Training Sessions
Saguling Hydropower Plants (PLTA) the Previous Year
Carbon Offset through the planting
62.30% Usage of Eco-Friendly of 15,165 trees on Mount Arjuno 40 Eco-Friendly Products Certified 100% of Key Suppliers have
Zero Human Rights Violation Cases,
Heavy Equipment and 6,100 mangroves at with Green Label Singapore 74.84% Local Supplier Engagement Undergone Sustainability
with 100% of employees receiving
Martajasah Beach Relative to Total Suppliers Assessments across Environmental,
Human Rights policy socialization
Social, and Governance Aspects
10 2025 Sustainability Report 2025 Sustainability Report 11
Page 8
Sustainability in Motion:
Highlights & Progress 2025
PT Avia Avian Tbk
Avian Brands’ Economic Performance Avian Brands’ Environment Pillar Performance
Net Revenus (Million Rupiah) Net Profit (Million Rupiah)
Scope 1 & 2 Emissions Renewable Energy Usage
Tons CO2e (GJ)
8,000,000 2,000,000 12,500.00 12,500.00
10,000.00 10,000.00
6,000,000 1,500,000
7,500.00 7,500.00
8,123,685
1,744,020
7,016,882
7,471,356
1,643,096
1,663,699
4,000,000 1,000,000 8,581.65 8,564.96 0 0
5,000.00 7,244.66 5,000.00
5,400
2,000,000 500,000 2,500.00 2,500.00
2,761.86 2,717.63
2,491.54 2,013.12 3,973.15
1,814.71
0 0 0.00 0.00
2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025
Scope 1 Emissions Scope 2 Emissions Solar PV REC
Total Renewable & Non-Renewable
Production Tonnage (Ton) Number of Customers Energy Consumption (GJ) Scope 1 & 2 Emissions Intensity (KgCO2e/Ton of product)
200,000 60,000 125,000.00 25.00
150,000 100,000.00 20.00
40,000
75,000.00 15.00
227,266
60,109
180,540
197,339
100,000
100,722.08
101,477.45
56,878
58,600
99,930.92
24.55
23.34
17.21
20,000 50,000.00 10.00
50,000
25,000.00 5.00
0 0 0.00 0.00
2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025
Avian Brands’ Product Pillar Performance Reuse of Effluent liter Renewable Material Usage Ratio (%)
800,000.00 60.00
83.10% 2025
600,000.00
82.17% 2024 40.00
Ratio of Water-Based Products 82.14% 2023
400,000.00
56.60
682,495.60
651,724.00
50.70
56.30
642,887.00
20.00
200,000.00
0.00 0.00
2023 2024 2025 2023 2024 2025
Industrial Wastewater Reuse Ratio (L/Ton of WB Product) B3 Waste Reuse (Ton)
6.00 5,000.00
Number of GLS-certified products Revenue from Sustainable Products 4,000.00
40.00 25.00% 4.00
3,000.00
20.00%
5.05
30.00
5.06
4.86
2,000.00
2.00
15.00%
2,048.80
2,882.28
4,616.83
20.00 1,000.00
10.00%
40
29
34
24.40%
0 0.00
11.40%
23.70%
10.00
5.00% 2023 2024 2025 2023 2024 2025
0.00 0.00%
2023 2024 2025 2023 2024 2025
12 2025 Sustainability Report 2025 Sustainability Report 13
Page 9
Sustainability in Motion:
Highlights & Progress 2025
PT Avia Avian Tbk
Avian Brands’ People & Community Pillar Performance Avian Brands’ Governance Pillar Performance
Employee Training Hours (Hours) Total Recordable Injury Rate (TRIR)* Percentage of Female Employees Relative to Percentage of Female Employees at the Manager &
150,000.00 1.00
the Total Workforce Deputy Director levels
% %
30.00 15.00
0.80
100,000.00
0.60
20.00 10.00
0.40
14.02
125,554.50
144,528.75
50,000.00
14.60
72,184.75
23.26
14.23
20.32
22.62
0.20 10.00 5.00
0.80
0.57
0.81
0.00 0.00
2023 2024 2025 2023 2024 2025 0.00 0.00
2023 2024 2025 2023 2024 2025
* Scope of TRIR data: AVIA (AAP and AAS)
Investment Value of Percentage of Local Supplier Engagement
Avian Brands Cares Program (Activity) Avian Brands Cares Program (Million Rupiah) %
250.00 5,000 80.00
200.00 4,000
60.00
150.00 3,000
40.00
75.24
264
77.94
76.14
195
100.00 2,000
20.00
5,253
1,995
2,344
50.00 1,000
98
0.00 0 0.00
2023 2024 2025 2023 2024 2025 2023 2024 2025
100% of key suppliers have
undergone the sustainability
assessment process
Sustainability Policies
Aligned with
Corporate Governance
Establishment of 1 cooperative (koperasi) of
local producers, consisting of 20 members,
through the Community Development
Program in Wadungasih Village
14 2025 Sustainability Report 2025 Sustainability Report 15
Page 10
PT Avia Avian Tbk Avian Brands Sustainability Strategy 16 2025 Sustainability Report 2025 Sustainability Report 17
Page 11
Avian Brands
Sustainability Strategy
PT Avia Avian Tbk
Avian Brands Sustainability Strategy Avian Brands Sustainability Policy
The Avian Brands Sustainability Strategy (ABSS) is formulated as the Company’s strategic framework for integrating Avian Brands has established a Sustainability Policy as the Company’s official commitment to conducting operations that
sustainability principles across all business activities. This strategy reflects Avian Brands’ commitment to conducting business are responsible, transparent, and oriented toward long-term sustainability. This policy is signed by the President Director as
responsibly, grounded in four main pillars: Product Pillars, Environment Pillars, People & Community Pillars, and Governance a proof of the highest management’s commitment and serves as a guideline for all business units in designing and executing
Pillars. These four pillars serve as the strategic foundation that guides Avian Brands in driving robust and sustainable business operational activities aligned with sustainability principles.
growth, while simultaneously creating long-term value for all stakeholders.
The Avian Brands Sustainability Policy is developed in alignment with the Sustainable Development Goals (SDGs) and is
integrated into the Avian Brands Sustainability Strategy (ABSS), implemented through these four pillars:
Environmentally Friendly Products Energy Efficiency and Emission Reduction
1 2 3 4
Developing paints with low Volatile Organic Compounds (VOC) Implementing energy-saving technologies and progressively
content, lead-free, and water-based formulations to reduce transitioning to renewable energy sources.
carbon emissions. Product Quality and Social, Labor and Ethics and Governance Sustainable Procurement
Environment Pillar Human Rights Pillar Pillar Pillar
Safe and Diverse Products Waste Management and Recycling
Investing in research and development to create paint solutions Optimizing raw material usage and implementing recycling
that are safer for consumers, healthier, and accessible to all systems within operations to reduce industrial waste. The Sustainability Policy is integrated into work processes, decision-making, and risk management across all levels of
market segments.
the organization. Implementation is supported by periodic evaluation mechanisms, monitoring, internal and external audits,
Production Efficiency as well as stakeholder engagement to ensure alignment between field practices and sustainability goals. Through this policy,
Climate Change Mitigation and Adaptation Programs
Avian Brands ensures that all employees and business units implement sustainability principles in a consistent, systematic, and
Utilizing modern technology to enhance efficiency and minimize A series of strategic initiatives designed to reduce the adverse measurable manner.
environmental impact throughout the production process. impacts of climate change and enhance the resilience of
socio-economic systems and ecosystems against existing effects.
Stakeholders can access the full Sustainability Policy document via the link or QR code provided in this report.
Product Certification
Compliance with national and international standards by
obtaining certifications such as SNI (Standar Nasional Indonesia/
Indonesian National Standard), ISO (for Management Systems),
TKDN (Tingkat Komponen Dalam Negeri/Domestic Component Avian Brands Sustainability Policy
Level), and Green Label for environmentally friendly products.
https://avianbrands.com/viewer/
Kebijakan+Keberlanjutan+PT+Avia+Avian+Tbk/dokumen_
pendukung_202508041437_Kebijakan_Keberlanjutan_PT_Avia_Avian_Tbk.pdf
PRODUCT PILLAR ENVIRONMENT PILLAR
PEOPLE & COMMUNITY PILLAR GOVERNANCE PILLAR
CSR Programs and Community Empowerment Responsible Partnerships
Organizing educational programs, skill development training, and Collaborating with suppliers and business partners with
paint donations for public facilities and houses of worship. a commitment to ethical and sustainable business practices.
Occupational Health and Safety Supply Chain Sustainability
Ensuring a safe and healthy working environment for employees Promoting sustainable procurement practices by ensuring
through high safety standards and regular training. the responsible sourcing of raw materials.
Employee Development Transparency and Compliance
Providing training programs and skill development initiatives to Conducting operations based on principles of transparent
enhance workforce capabilities. governance and maintaining compliance with environmental
and social regulations.
18 2025 Sustainability Report 2025 Sustainability Report 19
Page 12
Avian Brands
Sustainability Strategy
PT Avia Avian Tbk
Sustainability Management Review Avian Brands ESG Roadmap 2030
Avian Brands ESG Roadmap 2030
The Sustainability Management Review is a periodic evaluation (Baseline 2021) Progress in 2025
process conducted quarterly to ensure the direction, quality,
and effectiveness of sustainability strategy implementation
across all activities of PT Avia Avian Tbk. This activity is led by top 50% Reduction in Scope 1 & 2 GHG Emissions 27.26% Reduction in Scope 1 & 2 GHG Emissions
management and involves cross-functional representatives and
relevant internal stakeholders. Through this forum, the Company
conducts a comprehensive assessment of ESG performance 20.00% Completion of Scope 3 Emissions Inventory
30% Completion of Scope 3 Emissions Inventory
(Categories 4, 9, 11)
achievements, program effectiveness, and the alignment of
strategies with both short-term and long-term targets.
80% Water-Based Product Ratio 83.10% Water-Based Product Ratio
The Sustainability Management Review has been formally
established within the Company’s internal policy documents.
50 Green Label Singapore-Certified Products 40 Green Label Singapore-Certified Products
During the review process, the Sustainability Team presents
a summary of the reporting status, covering report structures,
data sources, information scope, and alignment with global 100% Manufacturing Facilities are certified ISO 14001 100% Manufacturing Facilities are certified ISO 14001
reporting standards. This also includes evaluations of
environmental aspects, such as energy, water, waste, and emission
management, as well as social aspects, including employee 100% Manufacturing Facilities are certified ISO 50001 100% Manufacturing Facilities are certified ISO 50001
welfare, occupational safety, competence development, Corporate
Social Responsibility (CSR) program implementation, and
fulfillment of Human Rights principles. Moreover, sustainability 50% Renewable Material Usage Ratio 56.60% Renewable Material Usage Ratio
governance, including regulatory compliance, risk management,
anti-corruption, and operational integrity, serves as a primary 40% Renewable Energy Installation in Production Areas 33.33% Renewable Energy Installation in
focus of the assessment. and Warehouses Production Areas and Warehouses
This review also serves as a mechanism to identify gaps, data
discrepancies, and areas requiring improvement, both technical 100% of Waste Processed for Reuse, Recycling, and Recovery 100% of Waste Processed for Reuse, Recycling, and Recovery
and substantive. Material risks that could potentially impact the
business, including climate and operational risks, are analyzed to
determine appropriate mitigation strategies. Management input 100% of Employees Return Home Safely Every Day, with at 100% of Employees Return Home Safely Every Day,
Least a 5% Annual Reduction in Occupational Accident Rates with a 1.23% Reduction in Occupational Accident Rates in 2025.
is vital in strengthening strategic messaging, policy direction, and
sustainability priorities for the subsequent period.
100% of Major Suppliers Assessed based on 100% of Major Suppliers were Assessed based on
The results of the Sustainability Management Review are Sustainability and Social Responsibility Criteria by 2030 Sustainability and Social Responsibility Criteria
documented as in the form of managerial decisions, improvement
recommendations, and approvals for follow-up action plans.
100% Increase in the Number of Packaging and Raw Material 100% Increase in the Number of Packaging and Raw Material
These recommendations encompass performance enhancement Suppliers that Meet Sustainability Standards by 2030 Suppliers that Meet Sustainability Standards by 2030
opportunities, strengthening internal competencies, resource
fulfillment, and creating new policies or refining existing ones.
Every recommendation serves as a reference for sustainability 20 Billion Rupiah Investment for 13.45 Billion Rupiah Investment for
programs implementation in the following quarter, which includes Avian Brands Peduli Programs Avian Brands Peduli Programs
corrective actions taken in accordance with the Company’s
internal procedures. 1. SRI-KEHATI,
2. ESG Sector Leaders IDX KEHATI,
Inclusion in 4 Indonesian Sustainability Indexes
Through this structured and data-driven review process, Avian 3. ESG Quality 45 IDX KEHATI Index,
4. IDX ESG Leader
Brands ensures that sustainability is more than just a declaration,
but an integral part of governance that continues to evolve,
remain measurable, and deliver value to both the Company and 1. Ecovadis,
2. Sustainalytics,
its stakeholders. Evaluated by 5 Global Sustainability Rating Agencies
3. FTSE Russell: FTSE4Good ESG Series,
4. MSCI Indonesia Small Cap Index
20 2025 Sustainability Report 2025 Sustainability Report 21
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Avian Brands
Sustainability Strategy
PT Avia Avian Tbk
Support for the Sustainable Development Goals Sustainability Strategy Related to Climate Change
(SDGs)
The sustainability transition in Indonesia marks a critical 2. Alignment with national and global climate goals
phase in the transformation toward a more responsible As a national-scale paint and coatings manufacturer,
Product Pillar development system with a long-term vision. This shift Avian Brands holds a responsibility to support
Developing environmentally friendly products based on
1 is not merely a strategic step to support climate change Indonesia’s climate targets through production process
technological innovation.
The Product Pillar focuses on improving mitigation, but also an effort to strengthen national industrial efficiency, the selection of eco-friendly materials, and
Improving the efficiency of material and energy use in the
product innovation, quality, and safety that 2 competitiveness in alignment with global trends. In this low-carbon product innovation;
production process.
supports responsible consumption and
production. Contributions to the SDGs are
context, accelerating sustainable business practices has 3. Rising stakeholder expectations
3 Implementing Life Cycle Assessments (“LCAs”) as a basis for
realized through: evaluating product impacts. become an urgent necessity, including within the paint and Customers, regulators, investors, and business
coatings industry, to provide tangible contribution to national partners now demand higher transparency, greater
4 Educating customers and the public about product safety.
and global climate agendas, such as the Paris Agreement, and environmental value, and supply chain sustainability,
Through this agenda, Avian Brands supports the to support national sustainable development priorities. thereby driving a broader transformation within the
implementation of sustainable industries and reduces the company; and
environmental impact of the product value chain. As a leader in the national manufacturing industry, 4. Financial resilience
Avian Brands faces complex challenges in accelerating Investments in energy efficiency, emission reduction,
decarbonization across the entire value chain, from raw and sustainable innovation require strong financial
Environment Pillar Optimizing clean energy use and efforts to improve energy
1
efficiency across all plants.
material procurement and manufacturing processes to resilience to create long-term value for shareholders,
distribution and post-consumption. These challenges customers, and the community.
The Environment Pillar serves as the foundation Reducing greenhouse gas emissions through measurable
2 are amplified by limited access to renewable energy and
for the efforts in climate change mitigation monitoring and management.
and the preservation of natural resources. a persistent reliance on carbon-based materials. Recognizing For Avian Brands, sustainability is not merely a compliance
Contributions to the Sustainable Development Water conservation programs, 3R (Reduce, Reuse, Recycle) for
3 this, Avian Brands has established a long-term commitment obligation but a core business strategy to ensure future
Goals (SDGs) are realized through: solid waste, and responsible hazardous waste management.
to reinforcing the transition toward low-carbon operations resilience, meet stakeholder expectations, and support
4 Biodiversity protection and air pollution control.
through enhanced resource efficiency, environmentally low-carbon development agenda. In line with this
friendly product innovation, and increasingly robust commitment, Avian Brands balances three strategic
These efforts pave the way for a greener operational transition sustainability governance. priorities: supply security and quality, environmental
and have a positive impact on the ecosystem.
and social sustainability, and cost efficiency and product
Avian Brands’ long-term strategic framework is built upon accessibility. This sustainability trilemma framework serves
four key strategic imperatives: as a decision-making guide to ensure manufacturing
People & Community Pillar Providing a safe, inclusive work environment grounded in 1. Climate risks that transform business fundamentals competitiveness while delivering sustainable benefits to
1 Human Rights. The physical impacts of climate change and increasingly society and the nation.
The People & Community Pillar reinforces 2 Ensuring equal employment opportunities without progressive environmental regulations require Avian
discrimination.
Avian Brands’ contribution to social aspects, Brands to strengthen operational resilience, investment
labor relations, and community impact. Enhancing employee capabilities through continuous
3 learning and development.
planning, and risk management to ensure long-term
Contributions to the Sustainable Development
Goals (SDGs) are realized through: business stability;
Community empowerment programs and expanding access
4 to education.
Providing decent work opportunities through ethical
5 standards, respect for freedom of association, and As part of a structured transition approach, this strategy is also integrated with the Climate Risk Report, which maps
preparation for retirement. physical and transition climate risks while providing direction for mitigation and adaptation based on materiality analysis and
Through this pillar, Avian Brands supports fair and dignified long-term scenarios. This document can be accessed via the official Avian Brands website.
socio-economic growth.
Governance Pillar Prevention of corruption, bribery, fraud, money laundering,
1 and conflicts of interest.
The Governance Pillar reinforces the principles Data protection and information security, including reliable
2 and transparent systems.
of corporate governance, business ethics, and
value chain transparency. Contributions to
Political neutrality and operational risk management based
the Sustainable Development Goals (SDGs) 3 on robust governance principles.
are realized through:
Implementation of sustainable procurement, supplier
4 selection based on environmental, social, and human rights
standards, as well as the empowerment of local suppliers
and women-owned businesses.
Transparent and competitive sustainable procurement
5
practices.
Through strong governance, Avian Brands builds trust and
strengthens partnerships for sustainability.
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Avian Brands
Sustainability Strategy
PT Avia Avian Tbk
Evaluation of Sustainability Strategy No. Challenges Avian Brands’ Response
Implementation
2. The production of eco-friendly products Avian Brands enhances operational efficiency through production technology,
requires raw materials with sustainability expands partnerships with sustainable suppliers, and strengthens research
standards, which often incur higher costs. and development activities to produce more economical formulations without
compromising sustainability standards and quality.
As part of the commitment to ensure targeted and impactful sustainability implementation, Avian Brands conducts periodic
evaluations of its sustainability strategy. This evaluation assesses the effectiveness of policies, targets, and programs
B. External Challenges
implemented within the Avian Brands Sustainability Strategy (ABSS) framework, while ensuring alignment with business
dynamics, stakeholder needs, and evolving global regulations and standards. This evaluation process has been formally
No. Challenges Avian Brands’ Response
established through the Company’s internal policies and regulations.
1. Rising stakeholder expectations, including Avian Brands sets measurable sustainability targets and implements
The evaluation process covers all sustainability pillars within the ABSS, namely: expectations of investors, for the company achievement strategies progressively. Progress is evaluated through internal
to demonstrate sustainability achievements performance indicators as well as external ESG assessments to ensure
within a relatively short timeframe. transparency.
1 2 3 4 2. Shifting and demanding compliance with Avian Brands monitors policy developments and makes adjustments to ensure
sustainability regulations, both nationally alignment with the latest requirements, including reporting, certification, and
Product Pillar Environment Pillar People & Community Governance Pillar and internationally. industry standards.
Pillar 3. Limited customer awareness regarding the Avian Brands increases public education on the benefits of sustainable
added value of environmentally friendly products, including health and safety aspects, and expands its product variety
The involvement of these pillars ensures that the assessment encompasses all aspects of sustainability, ranging from product products compared to conventional ones. with competitive price ranges to improve market accessibility.
innovation and environmental management to social and labor aspects, as well as governance and sustainable supply chains.
In addition to these challenges, Avian Brands views its sustainability commitment not only as a regulatory obligation but also
In practice, evaluation is conducted alongside top management and relevant business units through performance monitoring,
as a strategic opportunity for innovation, reputation enhancement, and long-term value creation. Through continuous
policy reviews, gap analysis, and alignment of priority programs. Results thereof serve as the basis for refining the Avian Brands
research and development, Avian Brands strives to expand its portfolio of high-performance products that adhere to
ESG Roadmap, enhancing organizational capabilities, and strengthening sustainability culture across all operational lines.
sustainability principles, and aims to set new standards in the paint and coatings industry.
Through this structured, ABSS-based evaluation mechanism, Avian Brands ensures that its sustainability strategy functions not
only as a commitment but also as a measurable and sustainable system that brings tangible contributions to the achievement
Strategic Opportunities Ahead
of its short, medium, and long-term targets.
Type Potential Opportunities Potential Financial Impact
Low-Carbon Raw • Increasing the use of low-carbon, bio-based, and • Reduction of future carbon compliance costs.
Materials and Resources green-labeled raw materials. • Enhancement of environmentally friendly
• Development of clean and low-emission product competitiveness
production technologies. • Potential for certification and access to premium
Challenges and Issues in Implementing • Collaboration with suppliers for sustainable
material innovation.
market segments.
Sustainability Principles and Future Strategies Resource and Energy
Efficiency
• Optimization of energy and water usage through
manufacturing digitalization.
• Implementation of energy-efficient production
• Reduction in Operational Expenses
• Mitigation of energy price fluctuation risks.
• Enhanced operational stability.
equipment.
• IoT-based operational monitoring.
In implementing sustainability principles, Avian Brands faces a number of dynamics arising from both internal and external
Sustainable Products and • Expansion of low-VOC and water-based product • Revenue growth from green market segments.
factors. These challenges not only pertain to meeting sustainable operational standards but also encompass changes in Services lines to support green building concepts. • Enhanced customer loyalty and market
organizational behavior, technological readiness, access to high-quality raw materials, regulatory shifts, and ever-increasing • Development of sustainability solution services differentiation.
stakeholder expectations. for customers. • Strengthening national and regional competitive
• Increased investment in low-emission material positioning.
innovation.
As part of its commitment to sustainable transformation, Avian Brands adopts an adaptive approach by conducting periodic
evaluations, fostering organizational learning, and adjusting strategies in accordance with evolving market needs as well Green Market Access and • Expansion into market segments with • Lower cost of capital through green financing.
Financing a preference for green products. • Diversification of revenue streams.
as national and global policies. Through this approach, Avian Brands is confident in its ability to transform challenges into • Utilization of green financing and government • Mitigation of risks related to energy and carbon
opportunities to strengthen long-term business competitiveness. incentives. regulatory changes.
• Alignment with national decarbonization
Information on Avian Brands’ challenges and responses is outlined below: policies.
Operational Resilience • Strengthening of climate-resilient infrastructure. • Reduction of operational disruption risks due to
and Transformation • Development of human resource competencies extreme weather.
A. Internal Challenges in green technology. • Stability in raw material supply.
• Supply chain collaboration to enhance • Long-term efficiency.
No. Challenges Avian Brands’ Response operational resilience.
1. Building sustainability awareness and Avian Brands consistently conducts socialization, training, and internal
culture across the entire organizational engagement to enhance understanding and integrate sustainability values
levels. into work processes and decision-making.
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Avian Brands
Sustainability Strategy
PT Avia Avian Tbk
Sustainability Culture based on its impact on energy efficiency, waste reduction,
process effectiveness, workplace safety, and added value for
The program is conducted routinely and structurally. Every
month, the development status of ideas and implementation
customers and the Company. results are reported to Top Management as part of the
sustainability performance monitoring process. Furthermore,
Sustainability Awareness Program To encourage active participation, Avian Brands grants the Company annually hosts an Innovation Festival and
awards to employees or teams whose ideas significantly internal competitions to present the best ideas, disseminate
impact process improvement and operational cost savings. best practices, and enhance motivation and collaboration
Additionally, the level of participation and implementation between teams. This program not only enhances operational
of innovation ideas is a component of the Key Performance efficiency but also strengthens a culture of innovation,
Indicators (KPIs) for each business unit. employee engagement, and corporate readiness in adapting
to future business and sustainability challenges.
Employee Star Program
Avian Brands consistently builds and strengthens sustainability awareness as an integral part of the corporate culture through
structured internal communications. Information is disseminated via various channels, including internal media, official
corporate social media, the Avian Newsletter, and the Avian Learning Management System (LMS).
Furthermore, Avian Brands periodically publishes information regarding sustainability performance, corporate achievements,
and community empowerment activities through both internal and external media. This communication also serves as a form
of transparency regarding Avian Brands’ sustainability performance for external stakeholders.
These awareness efforts are reinforced through sustainability training programs designed to ensure employee understanding
and competence in supporting the implementation of the Company’s sustainability strategy. Training materials cover key As a form of appreciation and to strengthen employee engagement in the Company’s sustainability journey, Avian Brands
topics such as energy efficiency, hazardous waste management, occupational health and safety, and sustainability reporting. implements the Employee Star Program. This program is designed to encourage active participation of all employees in various
Further information regarding training implementation is presented in the discussion of Performance of People & Community corporate initiatives focusing on innovation, safety, efficiency, self-development, and cross-functional collaboration.
Pillar.
The Employee Star assessment is conducted structurally through a system integrated with the employee activity database.
Individuals can accumulate scores based on their involvement in various programs, including:
• Quality Control Circles (GKM);
Continuous Improvement Program • Suggestion System (SS);
• Environmental, Health, and Safety (EHS) Patrols;
As part of the efforts to strengthen the sustainability • Participation in training and competency development;
culture across all business lines, Avian Brands implements • Contribution to internal content, such as the Avian Newsletter; and
Continuous Improvement Program as a formal mechanism • Participation in employee engagement activities and corporate events.
to drive innovation, operational efficiency, and sustainable
performance enhancement. This program operates on the Each activity is objectively assessed through a digital system that provides measurable weighting while ensuring transparency,
principle that every process, system, and work output always accountability, and seamless progress monitoring for both employees and management. At the end of each designated period,
has the potential for improvement through continuous score recapitulations are verified and ratified by Top Management prior to the selection of Employee Star recipients.
ideas, collaboration, and evaluation.
Employee Star awardees receive formal recognition and incentives in accordance with corporate policy. This program serves to
Implementation is supported by competent and certified bolster employee motivation and pride, reinforce a culture of collaboration and innovation, and encourage active participation
human resources, as well as a dedicated Continuous in achieving sustainability targets. Furthermore, it fosters positive behaviors aligned with corporate values. Therefore, each
Improvement functional unit responsible for program individual’s contribution is duly recognized as an integral part of cultivating a workplace culture that is adaptive, conscientious,
management, execution, monitoring, and reporting. and sustainable.
Each innovation idea proposed by employees is assessed
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Avian Brands
Sustainability Strategy
PT Avia Avian Tbk
Digitalization: Avian Portal Routine internal events held annually include:
• Employee Gathering;
• Corporate Anniversary Celebrations;
• Halal Bihalal; and
• Award ceremonies for employees entering retirement.
These activities serve as a platform to strengthen relationships among employees, build a sense of community, and
cultivate corporate cultural values aligned with the principles of integrity, collaboration, and result-oriented work. Indirectly,
a comfortable work environment and strong interpersonal relationships have been proven to result in increased productivity
and employee retention.
Employee Sports & Wellness Program
As part of its commitment to strengthening sustainability governance and operational efficiency, Avian Brands has implemented
digital transformation through development of the Avian Portal. This platform serves as an integrated system to monitor,
manage, and document all sustainability performance data centrally and in real-time, supporting data-driven decision-making
across all organizational levels.
The Avian Portal is developed by Avian Brands’ IT professionals who understand the business needs, operational process
structures, and sustainability indicators of the Company. Consequently, the system is designed to be adaptive, modular, and
aligned with evolving Company needs, industry standards, and global sustainability reporting trends.
The portal is integrated with all business units and departments, facilitating consolidation of data such as energy and water
usage, waste management, workplace safety parameters, employee innovations, certifications, and other ESG performance
metrics. Through the ESG performance monitoring dashboard within the Avian Portal, management can conduct routine
evaluations and performance reviews with Top Management to ensure process improvements align with targets. To support the physical and mental well-being of employees, These programs directly improve employee health and
Avian Brands organizes various sports activities and health physical fitness, help reduce the risk of diseases associated
Beyond data governance, digitalization via the Avian Portal also directly impacts material resource efficiency. By making all programs aimed at improving quality of life and work with a sedentary lifestyle, and strengthen social bonds
documents, reports, and data available digitally, paper usage is significantly reduced, supporting paperless processes and the productivity. The Company provides gym facilities as part and teamwork. This initiative also creates a more dynamic
Company’s carbon footprint reduction goals. of its commitment to employee welfare. Employees also and productive work atmosphere, demonstrating the
actively participate in various sports activities, ranging from integral position of employee well-being in Avian Brands’
women-only aerobic programs to football and badminton sustainability strategy. By providing adequate sports facilities
Avian Cultural Event communities, fully facilitated and supported by the and equipment, the Company ensures all employees have
Company. access to a sustainable, healthy lifestyle.
To strengthen a people-centered sustainability culture,
Avian Brands consistently promotes engagement between
the Company and all employees through various cultural
and team-building activities. These programs aim to create
a positive, inclusive, and harmonious work environment,
thereby enhancing employee motivation, pride, loyalty, and
psychological well-being.
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PT Avia Avian Tbk About the Avian Brands 30 2025 Sustainability Report 2025 Sustainability Report 31
Page 18
About the Avian Brands PT Avia Avian Tbk
Avian Brands’ Sustainability Governance
Avian Brands is committed to building an organization that places sustainability at the core of its corporate strategy and
operations. To uphold this commitment, Avian Brands has established the Quality Assurance & Sustainability (QAS) Department,
which operates under direct oversight of the Board of Directors. This structure ensures that sustainability aspects, including ESG
management, decarbonization strategies, risk mitigation, community development programs, biodiversity, circular economy,
and climate change adaptation, are integral components of every strategic decision.
The Board of Directors is responsible for defining Avian Brands› sustainability direction, vision, and mission, as well as ensuring
the integration of sustainability across all business functions. Implementation is subsequently delegated to the relevant
departments in their respective fields. To ensure effective execution, monitoring is conducted through periodic meetings,
structured performance reporting, and compliance evaluations against prevailing sustainability standards.
The QAS Department serves as a cross-functional coordination hub with the mandate to:
• Manage sustainability risks and opportunities;
• Facilitate the achievement of ESG targets and decarbonization strategies;
• Enhance the quality of sustainability reporting;
• Strengthen the implementation of human rights and responsible business practices; and
• Foster sustainability awareness throughout the organization and the value chain.
Through this focused governance approach, Avian Brands ensures that all operational aspects are aligned with the Company’s
sustainability goals while delivering value to the environment, society, Shareholders, and all stakeholders.
The diagram below illustrates the sustainability governance structure of Avian Brands:
Board of Directors
Business Strategy, Operations, and Integration
Executive Leadership
Quality Assurance and
Sustainability Department
Business Units
Sustainability Strategy and Operations; Innovation and
Implementation; Sustainability Reporting
Functional Sustainability All Departments
Description:
Reporting Line
Coordination
32 2025 Sustainability Report 2025 Sustainability Report 33
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About the Avian Brands PT Avia Avian Tbk
Avian Brands’
Identity
PT Avia Avian Tbk*)
Stock Code Business Sector Shareholding Headquarter
AVIA Manufacture and trade of paints and printing inks,
PT Tancorp Surya Sentosa : 36.60% Jl. Raya Surabaya – Sidoarjo KM. 19
varnishes, lacquers, adhesives or glues, mortar or Desa Wadungasih, Kec. Buduran, Sidoarjo 61252
PT Wahana Lancar Rejeki : 32.49%
ready-mixed concrete. Jawa Timur, Indonesia
Archipelago Investment Pte Ltd : 6.30%
Robert Christian Tanoko : 2.30% (62-31) 8968000
Listing of Shares on Rudi Tanoko : 1.68%
the Stock Exchange Date of Establishment corsec@avianbrands.com
Rony Tanoko : 0.04% investor.relations@avianbrands.com
Saham Treasuri : 4.26%
December 8, 2021 March 1, 1983 www.avianbrands.com
Masyarakat : 16.33%
on the Indonesia Stock Exchange
(masing-masing di bawah 5%)
Branch Office
Authorized Capital Legal Basis of Establishment
Avian Brands Building
IDR2,000,000,000,000.- PT Avia Avian was established based on the Deed
Jl. Ahmad Yani No. 317
of Establishment of Limited Liability Company
No. 06 dated March 1, 1983, as amended by Surabaya 60234
Deed No. 63 dated May 23, 1983, both drawn Jawa Timur, Indonesia
Issued and Paid-up Capital up before Indrawati Setiabudhi, S.H., a Notary in (62-31) 99850500/99850600
Malang. The deed has been ratified by the Minister
IDR619,535,556,000.- of Justice of the Republic of Indonesia, by the
Decree of the Ministry of Justice of the Republic Address of Manufacturing Facilities
of Indonesia No. C2-4948.HT01.01 Th83 dated
July 5, 1983 and has been registered with the Sidoarjo
Latest Deed Amendment Malang District Court No. 016/PP/PI/VIII/1983 Jl. Raya Surabaya – Sidoarjo KM. 19
dated August 8, 1983. Social Media Desa Wadungasih, Kec. Buduran
The latest amendment to Avian Brands’ deed is Sidoarjo 61252
Deed No. 3 dated April 10, 2025 drawn up before Jawa Timur, Indonesia
Dr. Susanti S.H., M.Kn., a Notary in Surabaya City Total Employees (62-31) 8968000
regarding Changes to the Composition of the Board
Avian Brands Serang
of Directors and/or the Board of Commissioners
(Including Employees of Subsidiaries and
of PT Avia Avian Tbk. This change has been Jl. Raya Serang KM. 60
Outsourced Employees)
notified to the Ministry of Law of the Republic of Kawasan Pancatama 5 Kav. 50,
Indonesia based on the Letter of Acceptance for Male: Leuwilimus, Leuwi Limus, Cikande
avian.brands
the Notification of Changes to the Company’s Data 7,160 Employees Kabupaten Serang 42186
No. AHU-AH.01.09-0182183 dated April 11, 2025. Female: Banten, Indonesia
(62-254) 402655
*) Throughout 2025, Avian Brands did not undergo any name changes.
2,170 Employees @avianbrands
34 2025 Sustainability Report 2025 Sustainability Report 35
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Tentang Avian Brands PT Avia Avian Tbk
Avian Brands Highlights
For over four decades, Avian Brands has brought colors
to the lives of millions of Indonesian families through its
high-quality products, including Avian Cat Kayu dan Besi,
Avitex Cat Tembok, and No Drop Cat Pelapis Anti Bocor.
Avian Brands’ presence is dedicated to delivering tangible
benefits to society and contributing to coloring Indonesia
through safe, innovative, and eco-friendly solutions.
“Avian Brands has grown into a pioneer of transformation
within the national paint industry through a combination
of product excellence, an extensive distribution network,
a dedication to quality, and reliability within a single
integrated ecosystem. With more than 2,600 SKUs reaching
over 60,000 retail outlets across Indonesia, Avian Brands
ensures that every color created is delivered on time and
with excellent product quality.”
The Journey of Avian Brands
Avian Brands is Indonesia’s leading manufacturer of
decorative paints and coatings, founded by Mr. Soetikno
Tanoko in 1978. Throughout its journey, Avian Brands has
continuously developed products that cater to the needs
of Indonesian consumers, blending innovation and quality
This holistic approach ensures that the Company generates
with a deep understanding of tropical climate characteristics.
positive impacts for customers, employees, business
Driven by a steadfast commitment to quality, sustainability,
partners, the environment, communities, shareholders, and
and customer satisfaction, Avian Brands has become one of
all other stakeholders.
the largest and most trusted paint companies in Indonesia.
National Distribution – The Largest in
Avian Brands’ Manufacturing Facilities Indonesia
Avian Brands operates two vertically integrated To strengthen product availability across the Indonesian
manufacturing facilities, making it one of the largest and archipelago, Avian Brands is supported by PT Tirtakencana Stakeholders can access the Avian Brands Sustainability
most efficient paint manufacturers in Indonesia. These Tatawarna, a distribution company established in 2001. Strategy document via the link or QR code provided
facilities are located in: This company: in this report.
• Sidoarjo, East Java; and • Operates 129 distribution centers nationwide, spanning
• Serang, Banten. from Sabang to Merauke; Avian Brands Sustainability Strategy
• Reaches more than 60,000 retail outlets;
Each facility is equipped with cutting-edge production • Digitalized research operations via the Laboratory • Supported by an integrated IT system providing real-
technology to enhance efficiency, data accuracy, and Information Management System (LIMS) integrated with time data; and
support more environmentally friendly operations. the ERP system. • Ensures a supply chain that is rapid, efficient, and
responsive to customer needs.
The Avian Brands RDI team comprises various specialized
Innovations through the Avian divisions, including Water-based Paint, Automotive Refinish, Sustainability Commitment
Innovation Center (AIC) and Architectural Coatings. Each year, the R&D team:
• Develops over 20 new products, with 5–10 successfully As the leader in the Indonesian paint industry, Avian Brands
The Avian Innovation Center (AIC), operational since May launched nationwide; is committed to conducting business responsibly through
2020, is the largest innovation hub in Indonesia for paint • Utilizes advanced instrumentation such as Rheology the Avian Brands Sustainability Strategy (ABSS), focusing
and building materials. AIC serves as the engine for Avian Profiling and Gas Chromatography; on four strategic pillars:
Brands’ innovations, fostering creativity, collaboration, and • Adheres to international testing standards; and 1. Product Pillar – creation of safe, high-quality, and
sustainable business practices. • Produces industry-leading innovations, including innovative products;
Avitex One Coat, the first wall paint in Indonesia with 2. Environment Pillar – energy efficiency, emissions https://avianbrands.com/viewer/
The AIC facility features: single-coat technology. Avian+Brands+Sustainability+Strategy+2025/dokumen_
reduction, circularity, and waste management;
pendukung_Avian_Brands_Sustainability_Strategy_2025.pdf
• Utilization of solar photovoltaic panel; 3. People & Community Pillar – human resources
• Optimal safety and air circulation systems; and Avian Brands’ products hold certifications such as SNI, Green development and community empowerment; and
Label Singapore, and other prominent quality standards. 4. Governance Pillar – robust, ethical, and transparent
corporate governance.
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About the Avian Brands PT Avia Avian Tbk
Avian Brands’ Avian Brands’
Sustainability Vision Sustainability Mission
“To become an integrated,
environmentally friendly,
leading, and trusted paint
company in Indonesia.“ “ To provide added value to stakeholders through
the development of various quality paints.”
Corporate Values
C IN T A
Customer Focus Integrity Teamwork Agility
Ability to be agile, flexible, and assertive
Able to make (internal and external) Be honest in words, have Ability to be part of a group, to work
in anticipating, initiating, and taking
customers and their needs as the main the commitment and consistency with the members of the group, and to
advantage of any opportunity as well as to
focus in a positive and productive in acting according to rules, norms, contribute to the achievement of the
avoid negative consequences from
working relationship. and morality. group’s goals.
the changes.
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About the Avian Brands PT Avia Avian Tbk
Business Units, Products, and Segmentation
The classification of Avian Brands’ products, in alignment with international coatings industry segmentation and the Sustainable
Product Framework, is as follows:
Decorative Paints: Sustainable Home & Building Solutions
Referring to the business structure information set out in the Consolidated Financial Statements of PT Avia Avian Tbk, Avian
Brands conducts business activities in two main segments, i.e., the Architectural Solutions Segment and the Trading Goods
Segment.
Architectural Trading
Solutions Goods Wall paint is the product category most intimately connected to consumers’ daily lives. Our innovation focuses on providing
wall paints that offer high opacity, durability, and, most crucially, low or zero Volatile Organic Compounds (VOCs).
The architectural solutions products are the main Avian Brands’ trading goods are mainly supporting
products produced by Avian Brands, comprising wall products for architectural solutions, including pipes,
VOCs are carbon-based chemical compounds that evaporate easily at room temperature. These compounds are prevalent
paint, wood and metal paint, waterproofing paint, furniture, and items required for painting, such
in various everyday products, including solvent-based paints, thinners, adhesives, and other building materials. Upon
wood care, as well as other architectural solutions as paint rollers, paint brushes, sealing tape, and
evaporation, they release gases into the air, both indoors and into the external environment. The presence of VOCs in paint
such as roof paint, instant cement, and automotive sandpaper. Such trading goods are not manufactured
poses a significant threat to Indoor Air Quality, which is vital for the health of occupants. Short-term exposure may cause eye,
refinish paint. As of December 31, 2025, Avian Brands by Avian Brands but are procured from its affiliates.
nose, and throat irritation, as well as headaches. Meanwhile, long-term exposure to certain VOCs has been linked to more
has a diversified portfolio of more than 2,600 SKUs Trading of these goods is performed by a Subsidiary,
severe health issues, including damage to the liver, kidneys, and central nervous system, with some compounds identified as
of architectural solution products marketed and PT Tirtakencana Tatawarna.
carcinogenic. Consequently, reducing VOC content has become a primary objective within the global paint industry to meet
distributed across 124 brands. Some of Avian Brands’
increasingly stringent health and environmental standards.
major household brands include Avian, Avitex, and
No Drop.
Recognizing these impacts, Avian Brands is proactively leading product transitions through continuous innovation, focusing
on low- or zero-VOC products, particularly in within our water-based product lines. These innovations replace high-risk organic
solvents with water as the primary medium. This transition extends beyond regulatory compliance; it is a core component
of the Company’s ESG strategy to minimize its environmental footprint. The majority of our premium decorative lines are
water-based and fall under the Green Label Singapore categorization. These formulations minimize the release of hazardous
More detailed information regarding the portfolio and chemicals into the air, directly contributing to the well-being of both occupants and applicators.
product specifications can be accessed through the following
official Avian Brands website. Avian Brands offers a highly diverse range of wall paints, classified into premium, medium, and economic categories.
• Avian premium wall paints include the Lenkote Sunguard series for exteriors and Lenkote Supersilk for interiors,
https://avianbrands.com/ providing most optimal customer experience in terms of durability, washable characteristics,, and aesthetics;
• Medium-category wall paints, widely recognized by Indonesian consumers, are available through the Avitex series for
interior, exterior, and multipurpose use. Avitex Gold offers versatile interior/exterior applications, while Avitex Wizz
provides a more economical and efficient wall paint solution with 40% higher viscosity; and
• Economical wall paint is widely available from Avian through the Aries, Aries Gold, and Aries Bling series, as well as the
This segmentation not only reflects the business focus and growth strategy, but is also designed to advance the Company’s Jasmine brand. Economical paint is not synonymous with poor quality; these products are formulated to meet specifications
sustainability objectives by increasing the proportion of products that are safer for health and the environment. that ensure good decorative performance.
Avian Brands believes that true business growth is inseparable from environmental and social responsibility. Every drop
of paint produced embodies a commitment to quality, health, and preservation of the planet. This philosophy drives us to
innovate continuously, transitioning from conventional solutions toward more eco-friendly materials in alignment with global
market demands and the national sustainability agenda.
As part of the transition toward a low-environmental-impact product portfolio, Avian Brands implements Sustainable Product
Framework principles, which encompass:
• Increasing the proportion of water-based products;
• Reducing the use of heavy metals, such as lead and chromium;
• Developing low-VOC emission products;
• Enhancing resource efficiency in both formulation and packaging; and
• Implementing circularity concepts, including reuse, recycle, and redesign.
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About the Avian Brands PT Avia Avian Tbk
Waterproofing Coatings: High-Performance & Long-Life Durability Wood and Metal Decorative Paint: Aesthetics and Utility
Water damage represents a significant sustainability challenge, as it often leads to inefficient consumption of energy and
Protecting wood and metal base materials is essential for historical roots of Avian Brands and stands as one of the
building materials. In Indonesia’s tropical climate, consumers frequently face issues such as wall humidity, extreme exposure
preserving assets and supporting resource efficiency. Every most recognized trademarks in Indonesia. The «Avian» wood
to moisture and solar heat, and alkaline/efflorescence attacks. Avian Brands’ waterproofing products offer a primary line of
item in a home holds sentimental, nostalgic, and functional and metal paint serves as our flagship product, carrying
defense, engineered to protect structural integrity effectively and durably.
value, even as its colors begin to fade. Our products the company name, supported by other more economical
ensure these assets last longer and remain visually fresh, brands such as Avian Cling, Glovin, and Yoko, as well as the
This long-term protection extends the life of assets, reduces the need for repeated repainting, and minimizes material waste,
so that they are #JadiBaruLagi (#LikeNewAgain), thereby premium Avian Platinum series. We also formulate paints
while contributing to a reduction in the carbon footprint throughout the product life cycle (Life Cycle Impact Reduction).
postponing the need for new purchases. This ultimately with high flexibility such as Avian 3 in 1 Anti Karat, which
reduces the massive demand for timber harvesting and new functions as both a primer and a topcoat for both metal and
metal production. wood surfaces.
No Drop. No Bochor Bochor! The number one waterproofing coating in Indonesia
The application of top coatings on wood and metal follows Under the Avian Cling brand, we have developed a water-
Proper waterproofing techniques, supported by products capable of optimally performing the task of “waterproofing”,
a similar principle: a paint formula bound with alkyd resins based wood and metal paint. In alignment with our spirit
will reduce the need for energy- and material-intensive repairs or reconstruction. No Drop has achieved top of mind status
is applied to the surface with the aid of non-polar solvents; of environmental friendliness and sustainability, Avian
among Indonesian consumers as the reliable choice for all waterproofing needs. Responding to the diverse needs of consumers,
as the solvents evaporate, the paint forms a protective Cling Water Based embodies Avian Brands’ commitment
Avian Brands has released many variants of No Drop with special features, including:
film that seals the surface. In this manner, tables, chairs, to providing products with the same quality, features,
1. No Drop Anti Panas – exterior paint that prevents heat and lowers indoor temperatures;
cabinets, fences, door frames, children’s bicycles, iron and performance as organic solvent-based paints, while
2. No Drop Cat Dasar Anti Bocor – a primer featuring negative waterproofing capabilities that resists alkaline attacks and
poles, and various other items remain protected and delivering added value through a dedicated focus on the
enhances the opacity of subsequent decorative coats;
appear rejuvenated. Wood and metal paint represents the health of Indonesian consumers.
3. No Drop Toren/Tandon – to protect water tanks from leaks and algae;
4. No Drop Kolam Ikan – eco-friendly, non-toxic solution safe for aquatic life while ensuring leak protection;
5. No Drop Beton and Batu Alam – specialized coating for concrete walls or natural stone surfaces; Wood Protection Paints: Preserving Natural Beauty
6. No Drop Mortar, Tile Grout, and Obat Cor – construction solutions designed to prevent leaks; and
7. No Drop Tape, Serat Fiber, and Membran – practical application for treating material cracks and fractures.
Through this extensive variety, No Drop delivers a comprehensive, safe, and effective waterproofing solution tailored to the
multifaceted needs of buildings across Indonesia.
Wood protection products are formulated to highlight is clean and dry, followed by the application of Boyo Wood
the natural aesthetics of the cambium, which is the main Filler to seal pores and create a smooth, even surface.
focus of everyday furniture products. In addition to top Subsequently, Boyo/WoodEco Wood Stain is applied to
coat products that add refreshing color and shine, wood enhance the natural hues of the wood substrate, followed
protection paint is another way to enhance the aesthetic by Boyo Sanding Sealer to preserve the revealed natural
value and durability of furniture. tones. The process concludes with Boyo Clear Coat, which
protects all preceding layers while delivering a natural
Avian Brands offers the Boyo Series and WoodEco Series glossy or doff finish.
to meet these requirements. The treatment sequence for
interior wood protection begins with ensuring the surface
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About the Avian Brands PT Avia Avian Tbk
Protecting wood with multiple coats of paint provides maximum aesthetic depth and durability. For more economical, fast, and for indoor and outdoor courts. It holds a Green Label Singapore certification and has excellent bounce, as proven by its
practical applications, polish or varnish products such as Boyo Politur Vernis, Boyo Politur Melamin, and WoodEco Politur International Tennis Foundation (ITF Classified) certification in category 4 for “medium-fast” pace.
Exterior/Interior can immediately add color and protection to wooden substrates. The wood protection product series is
deeply integrated with the needs of Indonesian society, given the wide range of consumers who use wooden furnishings. Our road marking paints are formulated to withstand heavy traffic activity and extreme weather, ensuring safe navigation and
Understanding this, and recognizing the characteristics of wood as a natural organic substrate, we integrate a sustainability and reducing the frequency of repainting. Represented by Avian Roadline Paint, Avian offers marking solutions that are versatile
eco-friendly mission across many products in this series. Products such as Boyo Wood Stain 2-in-1 (Eksterior & Interior), Boyo for use on asphalt roads, pedestrian crossings, and parking lots.
Politur Vernis, and WoodEco Wood Stain come in water-based variants, supporting sustainability and mitigating environmental
impact.
Ready-to-Use Paint: Efficient and Low-Impact
Automotive Paints: Precision, Quality, and Efficiency
This ready-to-use solution enables precision painting on a small scale,
minimizing the need for large-volume purchases. It emphasizes a formula
that is easy for consumers to apply (Do-It-Yourself/DIY), empowering people
to effectively maintain their own assets. The spray products offered by Avian
consist of automotive paint, wood varnish paint, and waterproof coating
paint.
Suzuka Spray is an aerosol spray paint that allows consumers to easily paint
various body parts of their automotive vehicles. In addition to metal surfaces,
Suzuka Spray can also be used to paint other surfaces such as plastic, wood,
and walls. Boyo Politur Vernis Spray is a urethane-based spray polish for
wood, offering practical, easy application to protect wooden furniture without
dilution, instantly enhancing the aesthetics of consumers› furniture.
The automotive sector demands superior paint quality and performance. Avian automotive paint products address this need by
integrating the principles of energy efficiency and waste reduction through optimal paint performance. The Avian automotive
paint series is represented by the Suzuka brand. Additionally, No Drop, as the number one waterproofing brand in Indonesia, has also released a DIY variant. No Drop Spray is
an innovative DIY application that is perfect for Indonesian consumers, suited to Indonesia›s climate, which requires
The automotive body painting process begins with surface repair and leveling, followed by the application of surface filler high-quality waterproofing products and practical application to wall cracks or other areas that need to be sealed against leaks.
or “putty” using Suzuka Epoxy Filler or Avian Epoxy Filler. After sanding, the surface is then coated with Suzuka Cat Duco
Otomotif to provide color, and finished with Suzuka 4:1 PU Clear Coat, a 2-component polyurethane-based varnish product
that provides a high-gloss finish and strong weather resistance.
This comprehensive range of automotive paint products offers consumers a choice of options for performing light automotive
body repairs at home, as well as medium to heavy repairs at a workshop. With its sharp color performance and a finish that
delivers an optimal glossy and wet look, Suzuka can effectively reach consumers in the automotive paint market.
Road/Floor Paint (Sports Court Paint, Paving Paint, Asphalt Paint): Foundations for Sustainable Communities
Our sports court paints are engineered with high abrasion resistance and anti-slip properties, enhancing user safety and
extending the lifespan of public facilities. Avian Brands provides two variants of court paints: offers two variants of court
paints: Avian Cat Paving, an organic solvent-based product, and Avian Cat Lapangan, a water-based product, both featuring
high durability, anti-slip properties, and friction resistance. Avian Cat Lapangan, our flagship court paint product, is optimized
44 2025 Sustainability Report 2025 Sustainability Report 45
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About the Avian Brands PT Avia Avian Tbk
Manufacturing Facilities
New Products in 2025
Product development is one of Avian Brands’ strategic pillars for delivering continuous innovation and enriching its
competitive portfolio. By prioritizing an approach rooted in in-depth research and razor-sharp market insights, Avian Brands
proactively responds to the evolving dynamics of customer needs and industrial trends. Avian Brands successfully launched
12 new products throughout 2025, all of which meet stringent quality and sustainability standards.
Sunguard Basic Avian Platinum No Drop Spray No Drop Cat Dasar
Anti Bocor
• Anti-Mold and Anti-Mildew • High Gloss • Waterproof • Waterproof
• Best Opacity • No Yellowing • Elastic • Prevents Damp Walls
• Super Cover Technology • Extreme weather-resistant • Can be painted • Alkali and Efflorescence
Avian Brands operates two primary manufacturing Furthermore, 100% of Avian Brands’ manufacturing Resistant
facilities located in Sidoarjo, East Java, and Serang, Banten. facilities are certified to international standards, namely
These facilities are engineered as modern, integrated ISO 9001:2015 (Quality Management System),
manufacturing hubs, establishing Avian Brands as one of ISO 14001:2015 (Environmental Management System),
the largest and most advanced paint manufacturers in ISO 45001:2018 (Occupational Health and Safety
Indonesia. As a testament to its commitment to operational Management System), ISO 50001:2018 (Energy Management
sustainability, both facilities implement principles of System), and ISO 27001:2022 (Information Security
resource efficiency, technology-driven quality control, Management System). Implementation of this integrated
occupational safety, and responsible environmental impact management system reinforces operational governance,
management. enhances efficiency, mitigates environmental risks, and
ensures consistent, safe, and sustainable execution of
manufacturing processes.
Digital Transformation for Process Control
and Efficiency No Drop Kolam Ikan 2 No Drop Plamir No Drop Butyl Tape Boyo Wood Stain 2 in 1
Sustainable and Competitive Komponen Anti-Bocor
To ensure accurate and consistent production processes, Manufacturing
• Easy to Apply • Anti-Mold and Anti-Mildew • Elastic • Environmentally Friendly
Avian Brands employs a range of automation and
• Non-toxic • Can be painted • Waterproof • For Exterior and Interior
digitalization systems, including: Through an approach that is rooted in technology, resource • Waterproof • Elastic • Can be painted Use
• Enterprise Resource Planning (“ERP“); efficiency, energy management, and a culture of workplace • Anti-Mold and Insects
• Warehouse Management System (“WMS“); safety, Avian Brands’ manufacturing facilities not only
• Automatic Weighing System (“AWS“); support national production scales, but also:
• Distributed Control System (“DCS“); • Reduce environmental impact;
• Computerized Monitoring Board (“CMB“); • Enhance operational resilience and efficiency;
• Yard Management System (“YMS“); and • Ensure compliance with regulations and industry
• Computerized Maintenance Management System standards; and
(“CMMS“). • Contribute to the achievement of the Company’s long-
term sustainability targets.
The integration of these digital systems enables supply
chain optimization, from raw materials to distribution,
while minimizing potential errors, enhancing traceability,
and supporting paperless management, in alignment with
Avian Brands‘ environmental commitments.
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About the Avian Brands PT Avia Avian Tbk
Avian Epoxy Filler Avitex Wizz Cat Dasar Avitex Top Giant Mortar 225 –
Plamir Instan Ekonomis
• Easy to Sand • 2x thicker • Crisp White Color
• Superior Adhesion • Quick Drying • Best Opacity • Practical
• Perfect Pore Filling • Best Opacity • Best Coverage • Economical
• Perfectly Seal Hair Cracks
Supply Chain
Supply chain management is an important aspect that must be managed strategically in order to improve production
efficiency and customer satisfaction. Avian Brands strives to create, develop, and evaluate its supply chain to ensure that it
remains relevant in supporting the production process. Avian Brands prioritizes several key components in establishing its
supply chain framework:
1. Input > innovations in product development and material procurement;
2. Operations > include production operations, spanning from manufacturing to distribution;
3. Utilization > product utilization (use, reuse, recycle, and reduce); and
4. Emission Reduction > energy and water consumption efficiency for business operations.
Avian Brands regards material procurement as the foundation of product quality. Consequently, supplier selection is conducted
rigorously to ensure quality standards while maintaining market competitiveness. In addition to relying on external suppliers,
the Company has developed vertical raw materials through the integration of certain raw materials within the group to
improve quality control, supply stability, and cost efficiency.
Furthermore, Avian Brands maintains a balanced proportion of local and international suppliers to foster a fair business
ecosystem and support local economic growth. Through the combination of vertical integration and robust supplier
partnerships, the Company ensures that the supply chain operates efficiently while delivering a positive contribution to social
and sustainability aspects.
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About the Avian Brands PT Avia Avian Tbk
Factory Operational and Group Structure and Subsidiaries
Marketing Areas
PT Avia Avian Tbk
50.00% 99.99% 99.99% 67.00% 16.67%
PT Bangun Bersama PT Tirtakencana PT Solusi Rumah PT Multipro Paint
PT Dextone Lemindo
Solusindo Tatawarna Praktis Indonesia
99.98%
PT Tirtakencana
Batamindo
Scale of the Company
Production Volume/Tonnage (Tons)
200,000
Serang, Banten
Manufacturing Facilities Number of Workers (People) 9,330 150,000
227,265
100,000
180,540
197,339
Gayungan Branch 1 Avian Brands Employees (People) 1,632
Office, Surabaya Manufacturing Facilities 2 (Sidoarjo and Serang)
50,000
2 Outsourced Employees (People) 7,698
Buduran Manufacturing Branch Office 1 (Surabaya) 0
Facilities, Sidoarjo 2023 2024 2025
Operating Revenue
(Million Rupiah)
Product Distribution Areas
1,992,143 2,068,594 2,175,816
Wholly-owned Distribution Center 129 1,643,096 7,016,882 1,663,699 7,471,356 1,744,020 8,123,685
2023 2024 2025
Wholly-owned Mini Distribution Center 15
Net Sales Profit for the Year Profit Before Income Tax Expense
Independent Distribution Center 38
Capitalization
(Million Rupiah)
Number of Retail Outlets Supplied 60,055 1,245,498 1,429,095 1,544,155
2023 2024 9,540,224 2025
11,084,379
9,921,489 11,166,987 9,631,880 11,060,975
Total Assets Total Equity Total Liabilities
50 2025 Sustainability Report 2025 Sustainability Report 51
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About the Avian Brands PT Avia Avian Tbk
Membership in Associations Sustainability Management Standards
Avian Brands recognizes that expanding its network is a key step in staying relevant to global developments, enabling the Avian Brands strives to maintain consistent responsibility reflects the Company’s commitment to operating its
company to better implement sustainable business practices. To this end, Avian Brands actively engages with groups and in its business processes. This is reflected in the Company’s business efficiently, safely, sustainably, and with a high
associations that provide strategic insights into business dynamics, economic trends, and global issues. The details of Avian compliance with all regulations relevant to the industry standard of quality. By obtaining various ISO certifications,
Brands’ memberships in professional associations are as follows: sector. Beyond mandatory regulatory compliance, Avian Brands ensures the implementation of best practices
Avian Brands also strives to continuously improve its aligned with global standards, thereby enhancing
responsibility and credibility to external and internal operational performance and sustainability.
No. Name Scale Avian Brands’ Position
stakeholders by achieving certification standards issued
1. Indonesian Paint Manufacturers Association (Asosiasi
National Member by national and international institutions. By the end of As of the end of 2025, Avian Brands has secured five ISO
Produsen Cat Indonesia/APCI) 2025, Avian Brands has successfully obtained the following certifications in several key areas:
2. Indonesian Public Listed Companies Association certifications: 1. ISO 9001:2015 – Quality Management System;
National Member
(Asosiasi Emiten Indonesia/AEI)) 2. ISO 14001:2015 – Environmental Management System;
3. Indonesian Synthetic Resin Association (Asosiasi Resin 3. ISO 45001:2018 – Occupational Health and Safety
National Member
Sintetik Indonesia/ARSI)
International Standardization Management System;
4. Indonesian Employers Association (Asosiasi Pengusaha
National Member Organization (“ISO”) 4. ISO 50001:2018 – Energy Management System; and
Indonesia/APINDO)
5. ISO/IEC 27001:2022 – Information Security
ISO certification is an international standard used to Management System.
evaluate and recognize the effectiveness of Avian Brands‘
Membership in the United Nations Global Compact (“UNGC”)
management systems in various sectors. This achievement
In 2025, Avian Brands expanded its engagement in global
sustainability initiatives by joining the United Nations
Global Compact (UNGC). Through this membership, Avian
Brands aligns its corporate strategies and operations with
the Ten Principles of the UNGC.
As an active member, Avian Brands participates in various UNGC forums and working groups, and contributes to the
preparation and submission of the Communication on Progress (COP) as part of its annual accountability for implementing
UNGC principles. Through this participation, Avian Brands strengthens its commitment to building a responsible value chain,
enhancing environmental performance, and fostering sustainability innovation across all business lines.
100% of Operational Areas 100% of Operational Areas 100% of Operational Areas
(Sidoarjo & Serang) (Sidoarjo & Serang) (Sidoarjo & Serang)
UNGC Certificate
Complete information regarding Avian
Brands’ ISO Certificates is available via
the link and barcode below.
100% of Operational Areas 100%
(Sidoarjo & Serang) (All of Avian Brands) https://avianbrands.com/tentang-
kami/sertifikasi-penghargaan/iso
The implementation of these five standards reinforces Avian Brands’ operational governance foundation, ensuring consistent,
safe, and efficient work processes that support the Company’s long-term sustainability objectives.
52 2025 Sustainability Report 2025 Sustainability Report 53
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About the Avian Brands PT Avia Avian Tbk
Indonesian National Standard (Standar Nasional Indonesia/”SNI”) In addition to expanding access to more environmentally conscious market segments, this certification also adds competitive
value, reduces environmental footprint, and promotes efficiency in manufacturing processes and cost savings. Among
SNI is the standard applicable in Indonesia to guarantee product quality, safety, and performance in accordance with the flagship products that have obtained GLS certification is the Supersilk Semi Kilap, and by the end of 2025, a total of 40 Avian
established regulations. Avian Brands’ SNI certification demonstrates its commitment to providing high-quality products that Brands products have successfully obtained this certification.
meet national standards and remain competitive in broader markets. Through this certification, Avian Brands further reinforces
its presence in the domestic market and promotes quality improvement in every product it markets. By the end of 2025, Avian
Brands has obtained 2 SNI certifications for 3 product types, with the following details:
Information on Avian Brands’ products with Green Label Singapore
certification is available via the link and barcode below.
Name of
Product Type Issuing Agency Validity Period
Certification
Chempack Product Certification Institute of
SNI 3564:2014 Sunguard Exterior
the Center for Standardization, and Services
November 3, 2026 PT Avia Avian TBK
Jalan Raya Surabaya-Sidoarjo
KM 19 East Java
of Chemical, Pharmaceutical and Packaging Indonesia 612521
SNI 3564:2014 Avitex, Supersilk Interior Industry, Ministry of Industry of the Republic November 3, 2026 SUPERSILK SEMI KILAP
032-219-3926
of Indonesia Environmentally Preferred Paints & Surface Coatings
(In accordance to SEC Green Label Category 32: Paints & Surface Coatings)
Validity: 9 December 2025 to 24 November 2027
Cheang Kok Chung
Executive Director
Complete information regarding Avian Brands’ SNI Certificates is
available via the link and barcode below. https://avianbrands.com/tentang-kami/sertifikasi-penghargaan/
green-label-singapura
Executive Director
Cheang Kok Chung
Domestic Component Level (Tingkat Komponen Dalam Negeri or “TKDN”)
Validity: 9 December 2025 to 24 November 2027
(In accordance to SEC Green Label Category 32: Paints & Surface Coatings)
Environmentally Preferred Paints & Surface Coatings
032-219-3926
SUPERSILK SEMI KILAP
TKDN certification is awarded as a form of recognition for products that prioritize the use of domestic raw materials and
Indonesia 612521
KM 19 East Java
components, whilePTalso supporting the growth of local industries and strengthening national economic independence.
Jalan Raya Surabaya-Sidoarjo
Avia Avian TBK
https://avianbrands.com/tentang-kami/sertifikasi-penghargaan/sni As part of its sustainability strategy, Avian Brands consistently strives to meet the requirements of this certification in order
to contribute to regional economic development. Among its flagship products that have achieved TKDN certification is
the Supersilk Semi Kilap, which combines superior quality with predominantly local content. By the end of 2025, a total of
55 Avian Brands products have successfully obtained TKDN certification.
Information on Avian Brands’ products with TKDN
certifications is available via the link and barcode below.
Green Label Singapore (“GLS”)
SERTIFIKAT TINGKAT KOMPONEN DALAM NEGERI
Sesuai dengan Peraturan Menteri Perindustrian No. 16/M-IND/PER/2/2011
tentang Ketentuan dan Tata Cara Penghitungan Tingkat Komponen Dalam
GLS certification is a form of recognition for products that meet environmentally friendly criteria, following a comprehensive Negeri, hasil verifikasi atas capaian Tingkat Komponen Dalam Negeri (TKDN)
adalah sebagai berikut:
Jenis Produk : Cat
evaluation of various aspects, from compliance with sustainability principles for consumers to a thorough assessment of the
Tipe : Cat Tembok Semi Kilap
Spesifikasi : Water Based, Interior
Kode HS : 32091090
Merk : -
Nilai TKDN : 58,99%
product life cycle using the life cycle analysis method. This achievement reflects Avian Brands’ commitment to producing
Terbilang : Lima puluh delapan koma sembilan sembilan
persen
Standard Produk : -
Sertifikat Produk : -
products that are safe to use and support environmental sustainability. This well-known and internationally recognized
No. Laporan : TKDN - 1611 - 2501675
yang telah ditandasahkan oleh Kementerian Perindustrian dan berlaku 3
tahun terhitung sejak tanggal tanda sah,
diberikan kepada:
certification boosts public confidence in Avian Brands’ products as it ensures compliance with strict sustainability standards. Nama Perusahaan :
Alamat :
PT AVIA AVIAN Tbk
Jl. Raya Surabaya - Sidoarjo KM. 19 desa
Wadungasih RT.11, RW.3, Wadungasih, Buduran,
Kabupaten Sidoarjo, Jawa Timur, 61252
NPWP : 01.203.265.2-641.000
Jenis Industri : Industri Cat dan Tinta Cetak (KBLI: 20221)
No. Tanda Sah : 4314/SJ-IND.8/E-TKDN/3/2025
Jakarta, 25 Maret 2025
Kepala Pusat Peningkatan Penggunaan Produk Dalam Negeri
Heru Kustanto
https://avianbrands.com/tentang-kami/sertifikasi-penghargaan/tkdn
Heru Kustanto
Kepala Pusat Peningkatan Penggunaan Produk Dalam Negeri
Jakarta, 25 Maret 2025
No. Tanda Sah : 4314/SJ-IND.8/E-TKDN/3/2025
Jenis Industri : Industri Cat dan Tinta Cetak (KBLI: 20221)
NPWP : 01.203.265.2-641.000
Kabupaten Sidoarjo, Jawa Timur, 61252
Wadungasih RT.11, RW.3, Wadungasih, Buduran,
Alamat : Jl. Raya Surabaya - Sidoarjo KM. 19 desa
Nama Perusahaan : PT AVIA AVIAN Tbk
diberikan kepada:
tahun terhitung sejak tanggal tanda sah,
yang telah ditandasahkan oleh Kementerian Perindustrian dan berlaku 3
No. Laporan : TKDN - 1611 - 2501675
Sertifikat Produk : -
Standard Produk : -
persen
Terbilang : Lima puluh delapan koma sembilan sembilan
54 55
Nilai TKDN : 58,99%
2025 Sustainability Report Merk
Kode HS
Spesifikasi
:
:
:
-
32091090
Water Based, Interior
2025 Sustainability Report
Tipe : Cat Tembok Semi Kilap
Jenis Produk : Cat
adalah sebagai berikut:
Negeri, hasil verifikasi atas capaian Tingkat Komponen Dalam Negeri (TKDN)
tentang Ketentuan dan Tata Cara Penghitungan Tingkat Komponen Dalam
Sesuai dengan Peraturan Menteri Perindustrian No. 16/M-IND/PER/2/2011
SERTIFIKAT TINGKAT KOMPONEN DALAM NEGERI
Page 30
About the Avian Brands PT Avia Avian Tbk
Leading with Color:
Highlights & Milestones 2025
Throughout 2025, Avian Brands recorded several pivotal achievements that reinforced its position as an industry leader
committed to sustainability, quality, and social responsibility. Each milestone reflects a transformative journey toward
operational practices that are more transparent, adaptive, and closely aligned with the Avian Brands Sustainability Strategy
(“ABSS“).
2025 The Journey of Avian Brands in 2025
January Avian Brands successfully maintained 100% ISO 9001 and ISO 27001 certifications across all manufacturing facilities.
Avian Brands was inducted into the IDX ESG Leaders (IDX ESGL) index. Concurrently, Avian Brands improved
February community health facilities in Wadungasih by constructing a jogging track for residents. In this period, ISO 50001
(Energy Management) certifications were maintained across all plants, and a sustainability program socialization
initiative was conducted company-wide to strengthen internal culture.
The Avian Brands 2024 Sustainability Report received external assurance in accordance with the AA1000 Assurance
March
Standard (AA1000AS), bolstering the validity and transparency of published disclosures.
The Company formally became a member of the United Nations Global Compact (UNGC) and successfully convened
April
its Annual General Meeting of Shareholders (GMS) as part its annual governance agenda.
Avian Brands obtained ISO 14001 certification for its Serang Plant, thus achieving 100% Environmental Management
May System certification across all manufacturing facilities. This period also saw updates to the Sustainability Policy,
management reviews, and enhancements to data management systems to reinforce ESG governance.
The Mortar Production Plant successfully installed 500 MWh of renewable energy capacity, followed by significant
June achievements in the form of inclusion in prestigious sustainability indexes, including FTSE4Good, SRI-KEHATI,
ESGSKEHATI, and ESGQKEHATI.
Avian Brands launched the Avian Brands Sustainability Strategy (ABSS) as the long-term strategic framework for the
July
Company’s sustainability management.
Water-based paint production at the Merapi Plant utilized 50.42% renewable electricity sourced from the Saguling
Hydropower Plant, followed by the establishment of the Kartini Mandiri Cooperative (Koperasi) of Wadungasih as
August an initiative to empower the economy of the Ring 1 community. Additionally, the Company maintained its Green
Industry Certification (Sertifikat Industri Hijau/SIH) for the fourth consecutive year, with the year 2025 being the third
surveillance.
Commitment to clean energy was expanded with 55.14% renewable electricity usage for solvent-based paint
production at the Bromo Plant, sourced from the Saguling Hydropower Plant. This month, Avian Brands also received
September the Environment and Social Innovation Award (ENSIA) and the Katadata ESG Award for Good Governance, received
an A+ rating in the Katadata ESG Index 2025 for gender equality, Comprehensive training, including ISO 31000,
was also conducted across all plans.
Avian Brands implemented a clean water program through pipeline installation for areas affected by water crises.
October Avian Brands also recorded an increase in its EcoVadis score, received a Low Risk rating from Sustainalytics, and was
named a Green Candidate in the 2024–2025 PROPER period.
Avian Brands launched a scholarship program for employees’ children as part of its efforts to improve welfare and
November support education. Avian Brands received an award for its 2024 Sustainability Report assessment with an A+ rating
(top 6% among Public Companies in Indonesia) from FIHRRST and Moores Rowland.
Avian Brands launched a sustainability section on its official website, published the Investor Sustainability Summary,
December and received an award from the Asian Coatings & Ink Federation (ACIF) as a Strong Performer - Asia Top 30 in
the Paints & Coatings Category. It also carried out the planting of more than 6,000 mangroves on Martajasah Beach
and conservation activities for flora and fauna listed on the IUCN Red List.
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PT Avia Avian Tbk Determination of Material Topics 58 2025 Sustainability Report 2025 Sustainability Report 59
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Determination of
Material Topics
PT Avia Avian Tbk
Material Topic Determination Process DETERMINING SUSTAINABLE MATERIAL TOPICS
Avian Brands conducts an annual review of its material to obtain a comprehensive perspective that reflects
topics to ensure continued alignment with corporate the issues most relevant to Avian Brands. This entire process
dynamics and evolving global sustainability trends. There refers to the Avian Brands Material Topic Determination
is a difference in the materiality determination process Policy Document as the official guideline. Every stage of
for 2025 compared to previous years, i.e., the material the assessment process has been independently verified by
topics for 2025 refer to the Avian Brands Sustainability an external party during the Assurance process.
Strategy (ABSS). In this process, we developed a digital Management Validation Determination of
platform as a medium of materiality survey and engaged The process undertaken to identify and determine material and Priority Setting Material Topics
top management validation to establish priority topics. topics for the Sustainability Report is outlined as follows: Materiality survey results are Establishing 17 material topics,
This process also involved internal and external stakeholders reviewed and validated by top categorized based on the Avian Brands
management to determine the Sustainability Strategy pillars, as the
most significant and relevant foundation for the Company’s reporting
impacts for sustainability reporting. and sustainability strategy.
1 Identification of Sustainability Issues and Impacts
The first stage involves identifying and assessing various issues and impacts that influence the Company,
3 4
arising from both internal and external environments. This process aims to gain a comprehensive
understanding of the organizational context and factors affecting sustainability strategy. Identification is
carried out through collaboration between stakeholders, top management, and relevant experts. The result is 2 1
a list of significant issues related to the chemical manufacturing industry, specifically the paint sector, which
subsequently serves as the basis for determining material topics.
Assessing Significance of Identification of Sustainability
Impacts Issues and Impacts
Each issue is assessed for its level Identifying various issues and impacts
2 Assessing Significance of Impacts of significance through the digital
materiality survey of “Avian Survey”,
influencing the Company, involving
collaboration between stakeholders,
involving internal and external top management, and experts to
stakeholders to determine understand the business and
the level of significance and industrial context.
In the next stage, Avian Brands assesses the level of significance of each identified issue. This assessment relevance.
involves internal and external stakeholders through a materiality survey developed digitally via the
“Avian Survey” platform. All employees can easily access this survey, ensuring broad and representative
participation. This stage results in a ranking of issues from the most significant to those with the lowest
relevance according to stakeholders. The findings from this materiality survey serve as strategic input for the
Company in determining its sustainability priorities.
3 Management Validation and Priority Setting Material Topics of the 2025 Sustainability Report
In the 2025 materiality assessment, Avian Brands updated its material topics compared to the previous year, notably through
Based on the significance assessment results, Avian Brands prioritizes the most impactful and relevant the addition of the GHG Management Budget Plan topic. This update reflects its response to the increasing global urgency
sustainability issues. At this stage, top management plays a role in reviewing and validating the materiality regarding climate change-related business risks. By establishing this topic, Avian Brands reinforces its commitment to
assessment results to ensure alignment with the business strategy, the Company’s sustainability direction, and managing climate risks in a planned manner while driving the implementation of sustainability practices that are relevant,
the 2025 reporting context. applicable, and aligned with corporate strategy.
4 Determination of Material Topics
Product Pillar
The validated priority issues are subsequently designated as material topics in the Avian Brands Sustainability Customer Relationship Management:
1. Product Quality and Safety
Report. These material topics form the basis for formulating strategies, targets, and sustainability performance
2. Customer Requirement and Opinion
disclosures aligned with the Avian Brands Sustainability Strategy (ABSS). They are monitored and evaluated
periodically, taking into account business dynamics, global sustainability trends, and stakeholder expectations.
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Determination of
Material Topics
PT Avia Avian Tbk
4 Attention
Environment Pillar Parties that require attention from Avian Brands regarding economic, environmental, social, or governance
issues.
Environment Protection Climate Change
1. Water 1. Clean and Renewable Energy
2. Energy 2. Emission 5
3. Waste 3. GHG Management Budget Plan
Perspective
4. Material Parties that can provide new perspectives on important and relevant issues that were previously
unaddressed.
Based on the application of these principles, Avian Brands has identified stakeholder groups that are highly interconnected
with the Company’s operational continuity. These groups include both internal and external stakeholders. Each group
People & Community Pillar has distinct expectations and needs; therefore, Avian Brands implements mechanisms of engagement that are tailored to
the characteristics of each party. A detailed description of the stakeholder groups and Avian Brands’ forms of engagement is
Social Development
presented in the following section.
1. Corporate Social Responsibility
2. Human Rights and Fair Employment
3. Occupational Health and Safety Internal Stakeholders
Shareholders and Investors
Basis for Selection: Significant Topics and Stakeholders’ Needs:
• Responsibility; • Business development;
Governance Pillar • Perspective; and • Financial and operational performance; and
• Influence. • Dividend payment.
Governance Sustainable Supply Chain Method of Engagement and Frequency of Implementation: Response to Stakeholders’ Needs:
1. Corporate Governance and Performance 1. Supplier Selection and Assessment • Convention of General Meeting of Shareholders annually or as • Strategizing to improve economic performance and business
2. Whistleblowing System 2. Sustainable Procurement Practices needed; sustainability;
3. Integrity Management and Compliance • Submission of Annual Report and Sustainability Report on a • Adjusting the implementation of sustainability principles in the
with Laws and Regulations yearly basis; and Company;
• Provision of facilities for information access. • Stipulating policy on dividend payment; and
• Providing the latest information about the Company on various
media, such as the Company’s website and the stock exchange
website.
Stakeholder Identification Employees
Basis for Selection: Significant Topics and Stakeholders’ Needs:
Stakeholder engagement is a vital step for the Company to understand and meet the needs of every group associated with its
• Responsibility; • Fair and responsible management of labor practices;
operations. Avian Brands identifies stakeholder groups by referring to the AA1000 Stakeholder Engagement Standard (SES). • Dependency; • Occupational health and safety (“OHS”);
This process ensures that every decision and action taken is aligned with stakeholder interests and supports the Company’s • Influence; and • Business continuity; and
business viability. This approach also serves as the foundation for building and maintaining constructive and mutually • Attention. • Competence and career development.
beneficial relationships. The principles applied based on AA1000 SES are outlined as follows: Method of Engagement and Frequency of Implementation: Response to Stakeholders’ Needs:
• Provision of employee complaint facilities; • Preparing and complying with employment contracts and
• Convention of meetings between management and employee company regulations related to labor management;
1 Influence representatives through the Bipartite Cooperation Agency as • Providing adequate OHS facilities and/or infrastructures in all
Parties that exert influence over decisions made by Avian Brands regarding business continuity. needed; and operational areas; and
• Implementation of complaints surveys as needed. • Organizing education and training activities as well as
promotions.
2 Dependency
Parties on whom Avian Brands depends, either directly or indirectly.
3 Responsibility
Parties to whom Avian Brands has current or future responsibilities.
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Determination of
Material Topics
PT Avia Avian Tbk
External Stakeholders
Distributor Store Customer
Basis for Selection: Significant Topics and Stakeholders’ Needs: Basis for Selection: Significant Topics and Stakeholders’ Needs:
• Responsibility; and • Fair and transparent procurement practices; • Responsibility; • Product and service information;
• Dependency. • Compliance with employment contracts; • Dependency; and • Marketing communications;
• Productive and mutual business relationships; and • Attention. • Quality of products and services;
• Environmentally friendly supply chain strategies. • Product labelling;
• Customer opinions and needs; and
Method of Engagement and Frequency of Implementation: Response to Stakeholders’ Needs:
• Improvement of customer satisfaction.
• Convention of meetings with suppliers as required; • Preparing employment contracts that are favorable to both
• Periodic audits and assessments of vendors; and parties; Method of Engagement and Frequency of Implementation: Response to Stakeholders’ Needs:
• Provision of complaint facilities for suppliers. • Procuring goods and services in accordance with GCG principles; • Implementation of customer satisfaction surveys as required; • Updating product and service information;
• Complying with the obligations as stipulated in the employment and • Registering the Company’s products with certification bodies;
contracts; and • Provision of complaint facilities for customers. and
• Ensuring vendors have implemented business practices that • Maintaining product and service quality, including customer
consider environmental impacts. health and safety aspects.
Supplier Product-using Customers
Basis for Selection: Significant Topics and Stakeholders’ Needs: Basis for Selection: Significant Topics and Stakeholders’ Needs:
• Responsibility; and • Fair and transparent procurement practices; • Responsibility; • Product and service information;
• Dependency. • Compliance with employment contracts; • Dependency; and • Marketing communications;
• Productive and mutual business relationships; and • Attention. • Quality of products and services;
• Environmentally friendly supply chain strategies. • Product labelling;
• Customer opinions and needs; and
Method of Engagement and Frequency of Implementation: Response to Stakeholders’ Needs:
• Improvement of customer satisfaction.
• Convention of meetings with suppliers as required; • Preparing employment contracts that are favorable to both
• Periodic audits and assessments of vendors; and parties; Method of Engagement and Frequency of Implementation: Response to Stakeholders’ Needs:
• Provision of complaint facilities for suppliers. • Procuring goods and services in accordance with GCG principles; • Implementation of customer satisfaction surveys as required; • Updating product and service information;
• Complying with the obligations as stipulated in the employment and • Registering the Company’s products with certification bodies;
contracts; and • Provision of complaint facilities for customers. and
• Ensuring vendors have implemented business practices that • Maintaining product and service quality, including customer
consider environmental impacts. health and safety aspects.
General Public Media
Basis for Selection: Significant Topics and Stakeholders’ Needs: Basis for Selection: Significant Topics and Stakeholders’ Needs:
• Responsibility; • Operational health and safety; • Responsibility; • Performance practices and programs that preserve the
• Attention; and • The Company’s participation in helping to improve the welfare of • Dependency; and environment;
• Perspective. the community; and • Attention. • Corporate social and environmental responsibility; and
• Community development program. • Economic and financial performance.
Method of Engagement and Frequency of Implementation: Response to Stakeholders’ Needs: Method of Engagement and Frequency of Implementation: Response to Stakeholders’ Needs:
• Provision of communication and complaint facilities for the • Creating employment opportunities for local communities; and • Submission of Annual Reports, Sustainability Reports, and other • Ensuring compliance with all regulations applicable to the
surrounding community. • Implementing CSR programs for the community through Avian reports on a quarterly and annual basis; Company; serta
Brands Peduli. • Dissemination of press releases and press conferences; and • Ensuring corporate social and environmental responsibility.
• Media visit.
Government
Basis for Selection: Significant Topics and Stakeholders’ Needs:
• Responsibility; and • Compliance with relevant applicable regulations;
• Influence. • Payment of tax obligations and non-tax state revenues
(Penerimaan Negara Bukan Pajak or “PNBP”); and
• Disclosure of violations.
Method of Engagement and Frequency of Implementation: Response to Stakeholders’ Needs:
• Submission of Annual Reports, Sustainability Reports, and other • Ensuring compliance with all regulations applicable to the
reports on a quarterly and annual basis; Company;
• Payment and reporting of taxes and PNBP on a monthly or • Paying tax and PNBP obligations;
annual basis; and • Conducting certifications and assessments by external parties;
• Provision of violation reporting through a whistleblowing and
system. • Disclosing incidents of violations that occur within the Company.
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PT Avia Avian Tbk PT Avia Avian Tbk Product Pillar Performance “Avian Brands is committed to delivering high-quality, safe, and responsible products as part of its responsibility to customers and stakeholders. Each product is developed through a process that emphasizes quality, safety, and regulatory compliance to ensure reliability throughout its life cycle. Through rigorous quality control, continuous innovation, and implementation of sustainability principles in product design and formulation, Avian Brands strives to improve product performance while minimizing potential risks to consumers and the environment. Product information transparency, accurate labeling, and responsible marketing communications are integral to Avian Brands’ commitment to customer trust. This approach ensures that every product from Avian Brands not only meets the needs of the market but also reflects the values of sustainability, ethics, and quality excellence. Thus, we are committed to providing long-term value to consumers while supporting sustainable business growth. 66 2025 Sustainability Report 2025 Sustainability Report 67
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Product Pillar Performance PT Avia Avian Tbk
Key Performance Achievements of Commitment to
the Product Pillar in 2025 Product Safety and Quality
Avian Brands prioritizes safety, quality, and sustainability in Avian Brands remains committed to providing products
An increase in customer satisfaction surveys in the every it produces. Avian Brands is committed to providing and services that are equally accessible to all segments of
second half of 2025, with a score of 3.39 on a scale of products that not only meet consumer needs but are society, offering a range of products from economical to
4.00, or in the good category. also environmentally friendly and comply with national premium, in accordance with applicable mechanisms and
and international standards and certifications. Through procedures. This ensures that all consumers have access
a sustainable product management strategy, Avian Brands to safe, high-quality, and affordable products. To ensure
Launch of 12 new products in 2025. No product recalls for any Avian Brands products continuously improves product quality to ensure market credibility, Avian Brands consistently adheres to national
in 2025, reflecting the effectiveness of the quality competitiveness, cost efficiency, and reliable service, and international certification processes, including the
management system and production process control. including timely delivery and the ability to meet customer Indonesian National Standard (SNI) as a quality assurance
83.10% of Avian Brands paint products being water- needs. Systematic evaluations are conducted regularly to for products in the domestic market, the Green Label
based. ensure the effectiveness of sustainability practices, so that Certification from the Singapore Environment Council as
66.67% of key raw materials being produced internally every product meets quality standards while contributing to recognition of its environmental commitment, and the
through a vertical raw material integration system, global sustainability goals. Domestic Component Level (Tingkat Komponen Dalam
Increasing Green Label Singapore-certified products by contributing to supply chain efficiency and reduced Negeri/TKDN), which reflects its genuine support for
17.65%, or a total of 40 products. transportation emissions. national industrial independence.
In addition, Avian Brands implements the Green Industry Standards (Standar Industri Hijau/SIH) to ensure resource efficiency
Sales volume of Green Label Singapore-certified and minimize environmental impact. This commitment is supported by various ISO standards, including:
Having 129 wholly-owned distribution centers,
products reached 59,917 tons, equivalent to 32.43% of • ISO 9001:2015 – Quality Management System
15 wholly-owned mini distribution centers,
total paint sales volume in the Architectural Solutions • ISO 14001:2015 – Environmental Management System
38 independent distribution centers, and establishing
Operations segment, contributing to the proportion of • ISO 45001:2018 – Occupational Health and Safety Management System
cooperation with 60.055 building stores, expanding
environmentally friendly product revenue of 24.44% of • ISO 50001:2018 – Energy Management System
total paint sales in the same segment. domestic market reach.
• ISO/IEC 27001:2022 – Information Security Management System
Implementation of these standards is an essential foundation for maintaining product quality, improving energy efficiency,
protecting data security, and ensuring that all Avian Brands business processes align with the principles of a green, competitive,
Commitment to Product Pillar and sustainable industry.
As a company committed to sustainability, Avian Brands places its products at the heart of of its contributions to society
and the environment. Every stage in the value chain is designed to ensure that the products manufactured not only meet
quality standards but also bring long-term benefits, with a commitment to product safety and quality as the main foundation.
Avian Brands consistently ensures that all products are designed, manufactured, and tested to the highest safety standards to Health and Safety of
Products and Services
ensure safe use by consumers and business partners.
To that end, the Company implements a sustainable product management strategy, from raw material formulation and
manufacturing processes to a life cycle approach. This approach allows Avian Brands to minimize its environmental impact,
maintain resource efficiency, and increase added value. Avian Brands prioritizes the health and safety of its products and services in all its business activities. The Company ensures
that all products manufactured comply with quality and safety standards through the implementation of product stewardship.
Sustainability principles are also embodied in responsible procurement practices. The Company consistently collaborates As a manifestation of this commitment, Avian Brands continues to innovate by orienting its paint product portfolio towards
with suppliers sharing the same commitment to ethics, compliance, and environmental responsibility, thereby creating more environmentally friendly formulations. Avian Brands also introduces new water-based alternatives to solvent-based
a transparent and sustainable supply chain. In terms of the market, Avian Brands ensures the markets it serves receive products paints. To date, 83.10% of Avian Brands’ product portfolio uses water-based formulas, encompassing all paint products.
that meet their needs while accounting for consumer diversity across segments. This is followed by the optimization of certified
products and services, as a form of external recognition of the quality and credibility they offer. Additionally, Avian Brands has achieved 56.60% renewable raw material usage of its total raw material requirements. All of its
water-based products are also free of heavy metal content, thereby reducing the risk of hazardous exposure while supporting
Furthermore, Avian Brands is constantly innovating and developing products to respond to future trends and challenges. efforts to minimize environmental impact. In its operations, Avian Brands practices sustainability principles in every aspect of
Through research, technology, and creativity, the Company strives to deliver more environmentally friendly solutions while
its business, including product development and production process efficiency. Over the past year, the Company has gradually
providing the best user experience.
transitioned its solvent-based product portfolio to more environmentally friendly alternatives, including water-based paints
All these efforts culminate in customer satisfaction as an indicator of success. By listening to consumer needs and responding
with the right products and services, Avian Brands builds long-term trust while strengthening its position as an innovative and
responsible chemical manufacturing company oriented towards sustainability.
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regular evaluations covering raw materials, formulations, and methods of use to ensure they are safe, comply with regulations,
and meet customer expectations. This measure strengthens public confidence in Avian Brands’ products.
Furthermore, Avian Brands ensures that all products have undergone testing for compliance with Indonesian National
Standards (Standar Nasional Indonesia/SNI) and Green Industry Standards (Standar Industri Hijau/SIH) from the Ministry of
Industry, which emphasize resource efficiency and environmentally friendly management. In line with Green Label Singapore
certification, Avian Brands’ products are guaranteed to have low emissions and be free from hazardous chemicals. Routine
testing for lead (Pb) content in solvent-based products is conducted to ensure user and environmental safety.
In line with the principle of clean production, Avian Brands is committed to reducing the environmental impact of its
manufacturing process, particularly through the optimization of packaging materials. Efficiency efforts are carried out by
reducing the weight and size of packaging, including reducing the weight of metal and plastic cans, replacing toxic materials
with more environmentally friendly alternatives, eliminating the use of certain plastic materials, and reducing the weight of
paper packaging. Until 2025, these efforts have succeeded in efficiently reducing packaging use by 23.16 tons, or 85.67%
compared to data prior to the implementation of these efforts.
In its business operations, Avian Brands not only focuses on products that meet consumer needs but also actively develops
environmentally friendly paint products. Examples include “No Drop Kolam Ikan 2 Komponen”, specially formulated as
a non-toxic fish pond coating that is safe for aquatic ecosystems; “Avitex TOP”, a water-based ceiling and wall paint that reduces
the use of solvents; and “Sunguard Basic”, which provides up to 6 years of exterior wall protection thanks to its weather-resistant
UV Shield technology.
The policy of using environmentally friendly materials is an integral part of Avian Brands’ sustainability strategy as stated in
the Sustainability Policy, Product Quality and Environment Pillar, point 7, namely “Encouraging the use of renewable
materials and environmentally friendly chemicals” and point 8, “Implementing raw material efficiency through monitoring,
implementation, and encouraging design or development activities across entire company lines.” This policy is also in line
with the ISO Integrated Manual (ISO 9001, 14001, 45001, 50001) in Clause 8, Operations, which covers raw material operational
control, material quality requirements, and compliance with quality standards. Thus, Avian Brands is committed to minimizing
the environmental impact of its entire supply chain and manufacturing process, ensuring that every material used is safe for
the ecosystem and public health.
and products that utilize renewable raw materials through raw materials are selected, and the production process is
a biomass balance approach. The water-based paint properly optimized. Evaluation of Health and Safety of Products and Services
technology used also reduces Volatile Organic Compounds
(VOC) content, thereby minimizing adverse effects on At the procurement stage, the purchase team conducts The Company actively collects customer feedback on health and safety issues through its customer service center.
human health, particularly when applied indoors. a comprehensive evaluation of supplier profiles, including Avian Brands operates a product complaint service managed by the Quality Assurance Department. Complaints received may
energy management performance at manufacturing relate to product quality, packaging, application results, and product content, all of which are 100% followed up on through
As part of its commitment to ethical responsibility, Avian sites and supply chain analysis to ensure transportation investigation and customer service response processes. During the reporting year, there were no incidents classified as product
Brands ensures that 100% of its products are animal testing- cost efficiency. All incoming raw and packaging materials safety violations. All reports received were confirmed to pose no health or safety risks to users. In addition, during the reporting
free. This commitment also applies to partners and suppliers must meet quality standards through Material Safety Data year, there were no product recalls due to product safety concerns. All products marketed complied with the Company’s
through provisions for compliance with animal well-being Sheets (MSDS), Certificates of Analysis (CoA), and Technical internal quality standards and applicable regulations.
principles. In addition, Avian Brands uses no genetically Data Sheets (TDS). In addition to ensuring safety, material
modified organisms (GMOs) in its product formulations. specifications are reviewed to ensure the materials used As part of its efforts to educate customers on how to use its products safely, Avian Brands held 12 training sessions, socialization
comply with principles of sustainable, environmentally events, and product knowledge sessions for customers, distributors, and applicators. These activities included guidance on
In its manufacturing processes, Avian Brands implements an friendly products. proper product use, work safety procedures, and explanations of the chemical components of the products.
integrated system that covers all stages, from raw material
selection to final quality control. This optimization ensures As of the end of 2025, Avian Brands has 40 Green Label
cost efficiency while maintaining consistent product quality. Singapore (GLS)-certified paint products. This certification
Quality and safety control begins at the developmental proves the Company’s commitment to developing products
stage in the Research, Development & Innovation (RDI) with low VOC content, free of Alkylphenol Ethoxylates
Laboratory, where product characteristics are determined, (APEO), and free of heavy metals. These 40 products undergo
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Integrated and Responsible Served Markets
Production Systems
In the face of ever-evolving market dynamics, Avian Brands Product Safety and Quality
places an in-depth understanding of market needs and
Avian Brands is the first company in the Indonesian paint Avian Brands actively measures and manages its characteristics at the foundation of formulating effective and Product safety policy is an integral part of Avian Brands’
industry to successfully build a vertically integrated environmental performance through a Life Cycle Assessment sustainable business strategies. Through a customer-centric Product Management System, which is based on ISO
production chain (Vertical Raw Material Integration) (LCA) approach, Greenhouse Gas (GHG) Emission Monitoring, approach, the Company is committed to delivering products 9001:2015 – Quality Management System. This standard
from upstream to downstream. This system allows the and various other sustainability indicators. These steps are and services that are relevant to market trends, while ensures that all stages of the process, from raw material
Company to have better control over the quality, availability, taken to ensure continuous improvement and create a long- providing long-term added value to all stakeholders. selection, formulation, production, to distribution, are
and sustainability of raw materials, while simultaneously term positive impact on the environment and society.
carried out in accordance with international standards and
strengthening supply chain resilience. Key materials, such
meet safety requirements.
as calcium carbonate, resins, additives, and packaging, or The implementation of an integrated production system Geographical Location Where Products
66.67% of raw materials, are produced independently by provides a competitive advantage while strengthening and Services are Offered In addition, the Company implements the Integrated
internal business units. This approach not only guarantees Avian Brands’ commitment to responsible and sustainable
ISO Manual, which covers quality management, product
quality consistency also delivers cost efficiency, reduces production practices. By self-managing key raw materials Avian Brands and its Subsidiaries’ products and services safety, and sustainability across in all operational activities.
dependence on external suppliers, and lowers the carbon such as resins, pigments, and packaging, the Company is are available in all regions of Indonesia. With an extensive Two main departments play an important role in product
footprint by reducing transportation emissions. able to maintain product quality consistency, control costs, distribution network and partnerships with thousands quality management, namely:
and increase the efficiency of the innovation process. The of traditional and modern building material stores, Avian • Research, Development & Innovation (RDI), responsible
With vertical integration from upstream to downstream, Research, Development & Innovation (RDI) team can adjust Brands successfully maintains its position as the leader in the for developing product formulations and innovations,
Avian Brands implements a strategy that includes backward formulations quickly and flexibly according to market needs domestic decorative paint market with a 24% market share. and
integration and forward integration. Through backward without depending on external parties. In addition to strengthening its penetration in the domestic • Quality Control (QC), which ensures that every product
integration, the Company controls the production process market, the Company also continues to explore export meets quality and safety standards before being
of raw materials and formulations to ensure consistent This integration system also provides high resilience against opportunities to expand its market reach and increase its released to the market.
quality and cost efficiency. Meanwhile, forward integration global supply fluctuations and ensures the sustainability global competitiveness.
strengthens distribution, marketing, and customer of the raw material supply chain. Besides supporting
As part of the ISO 9001 Clauses on Product Release, every
engagement capabilities so that product excellence operational stability, this approach contributes to energy
Avian Brands product must undergo a thorough evaluation
can optimally reach the final consumer. This approach efficiency, emission reduction, and resource optimization, Served Sectors process before being marketed. In addition, a CCTV
reflects operational efficiency and sustainable value chain which are aligned with the principles of clean production
surveillance system is implemented in production areas and
management. and the Company’s sustainability goals. The main sectors served by Avian Brands include retail warehouses to ensure product safety and integrity during
customers, construction projects, and business-to-business storage and distribution.
In its operations, Avian Brands adopts digitalization These measures reinforce Avian Brands’ commitment (B2B) segments. For retail customers, Avian Brands serves
and automation developed by an internal IT team to to delivering an integrated, efficient, and responsible traditional building material stores and modern trade To support smooth and secure distribution, Avian Brands
increase production effectiveness while supporting production system that balances economic, social, and outlets. In the project sector, it provides products for has a series of Standard Operating Procedures (SOPs) and
green operation initiatives. Through the implementation environmental performance. Through a strong integration infrastructure, commercial buildings, and national retail Work Instructions in place, which cover planning, shipping,
of Overall Equipment Effectiveness (OEE) indicators model, every Avian Brands product not only delivers the chains. This sector diversification enables Avian Brands complaint handling, and logistics process documentation.
and the Computerized Monitoring Board (CMB) system, highest quality standards but also reflects the values of to reach a range of customer segments, from the general
the Company can perform real-time monitoring of sustainability and environmental responsibility that have public to major institutions and corporations. All of these policies ensure that supply chain and distribution
equipment performance, control energy consumption, become part of the Company’s DNA.
processes run efficiently, transparently, and in accordance
and optimize raw material usage. This technology ensures
with established quality standards.
that production processes run efficiently, save energy, and Types of Customers and Beneficiaries
generate minimal waste.
Over the past three years, there have been no Avian Brands
Avian Brands’ customers and beneficiaries come from products recalled due to quality or safety issues, reflecting
various segments of society, ranging from the lower, middle, the effectiveness of the quality control system and the
to upper-income brackets. In addition, the Company consistent implementation of production governance
also serves corporate and commercial project segments across all operational units.
in various regions of Indonesia. With its innovative, safe,
and environmentally friendly building coating products,
Avian Brands improves the community’s quality of life and
supports sustainable development in the national property
and construction sectors.
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Marketing Compliance and Governance Avian Brands’ marketing strategy is implemented through by competent independent parties to ensure the credibility In terms of innovation and intellectual property protection,
two main approaches: of the methodology and the accuracy of the measurement Avian Brands has obtained patent certificates for several
As a manifestation of its commitment to good corporate 1. Below-the-Line (BTL) Marketing, focusing on direct results in accordance with the international standards paint formulations and technologies developed through
governance, Avian Brands has implemented an Insider interaction with customers through loyalty programs, of ISO 14040 and ISO 14044. This measure reflects Avian internal research, affirming the Company’s innovative
Trading Prevention Policy since December 27, 2021. training, and educational activities, in order to build Brands’ commitment to transparency, accountability, and capabilities in creating functional and sustainable coating
This policy aims to maintain market integrity, prevent long-term relationships. continuous improvement in environmental performance. solutions.
conflicts of interest, and ensure that all of the Company’s 2. Above-the-Line (ATL) Marketing, which includes
securities trading activities are conducted fairly, promotions through various mass media platforms, In addition, Avian Brands holds Domestic Component Level For specialized products in the maritime sector, Avian
transparently, and in accordance with regulations. collaborations with Key Opinion Leaders (KOLs) and (Tingkat Komponen Dalam Negeri/TKDN) Certification to Brands has also obtained certification from the Indonesian
The Company also imposes strict restrictions on the use of influencers, to strengthen brand image and expand increase local content and strengthen the national economy. Classification Bureau (Biro Klasifikasi Indonesia/BKI) for
unpublished material information to prevent its misuse for audience reach. By using local raw materials and empowering domestic anti-fouling paint products used on ships and marine
personal gain. suppliers, the Company contributes to strengthening infrastructure. This certification ensures that the products
During the reporting period, there were no reports or the national supply chain and supporting industrial meet safety, durability, and performance standards in
complaints regarding non-compliance in the delivery independence. accordance with national and international maritime
Fair and Responsible Marketing Practices of product information or marketing communications. industry regulations.
This success reflects Avian Brands› consistent commitment
Avian Brands is committed to ethical, transparent, and to business ethics, transparency, and social responsibility
responsible marketing practices. The principles of honesty across all marketing and corporate communications
and accuracy are upheld in all product information
provided to customers, including in promotional activities,
activities.
Product Innovation and Development
advertising, and sponsorship. The Company strictly avoids
misleading or excessive marketing strategies. Innovation is a strategic element in Avian Brands’ • Weather and corrosion resistance testing equipment;
sustainable growth. Avian Brands believes that the ability and
to adapt to market needs, technological developments, • Substrate performance and industrial application
and regulatory requirements is critical to maintaining simulation tools.
competitiveness and providing added value to customers
Optimization of Certified Products and Services
and stakeholders. Therefore, Avian Brands is committed to Backed by this technology, every product development
delivering products that not only excel in quality but are also is subject to a multi-layered validation process, ranging
safe, environmentally friendly, and aligned with long-term from formulation screening, performance testing, safety
sustainability principles. compliance, to market fit evaluation. This ensures that all
As the leading paint manufacturer in Indonesia, Avian • ISO 50001:2018 – Energy Management System,
products meet market demand, comply with applicable
Brands is committed to providing products and services that optimizing energy consumption in the production To achieve this ambition, Avian Brands has a Research, regulations, and adhere to the Company’s sustainability
not only excel in quality but also meet international safety, process to support efficiency and reduce carbon Development, and Innovation (RDI) Department consisting standards, including reducing lead and chromium content,
security, and sustainability standards. Product and service emissions. of experts who are certified, experienced, and competent and expanding portfolio of water-based, low-VOC, and
optimization efforts are carried out comprehensively, • ISO/IEC 27001:2022 – Information Security Management in formulation development, product performance heavy metal-free products.
starting from the research, development, and production System, ensuring protection of company and customer improvement, material engineering, and research on more
stages to distribution, based on integrated and certified data against potential breach and abuse of information. sustainable alternative raw materials. By the end of the The RDI team consists of several thematic research divisions,
management systems. reporting period, 88 professionals were part of the RDI including:
In addition to the above management systems, Avian Brands Division. • Water-Based Paints;
Avian Brands has implemented five internationally certified has also obtained Green Label Singapore certification,
• Automotive Refinish Coatings;
management systems, serving as the main pillars in confirming that the Company’s products meet international The Company’s commitment to innovation is reinforced by • Protective & Industrial Coatings;
maintaining operational excellence and consistent product environmental criteria, including low Volatile Organic the Avian Innovation Center, a research center specifically • Decorative Architectural Solutions; and
quality: Compounds (VOC) content, free of Alkylphenol Ethoxylates designed as an ecosystem for developing new products • Color Science & Formulation Technology.
• ISO 9001:2015 – Quality Management System, ensuring (APEO), and free of heavy metals. This certification is clear and technologies. This facility features state-of-the-art
that all business processes run in accordance with evidence of Avian Brands’ commitment to providing laboratories, formulation research rooms, benchmarking Each year, the RDI team produces more than 20 innovative
international quality standards to produce consistent, products with minimal environmental impact that are safe facilities, and quality testing systems that comply with products, with 5–10 products successfully entering the
reliable products that meet customer expectations. for users. national and international industry standards and commercialization stage and being marketed in Indonesia.
• ISO 14001:2015 – Environmental Management System, regulations. These products not only meet the needs of domestic
ensuring that all operational activities take into account In supporting sustainability throughout the product life
consumers but are also designed to meet international
environmental protection, resource efficiency, and cycle, Avian Brands actively conducts Life Cycle Assessments Some of the cutting-edge technologies and testing quality standards that allow for future market expansion.
waste and emission control. (LCA) to measure and manage the environmental instruments used include:
• ISO 45001:2018 – Occupational Health and Safety impact of each stage of production—from raw material • Rheology Profiling;
Management System, creating a safe, healthy, and selection, manufacturing, distribution, to after-use. • Gas Chromatography;
productive work environment for all employees. The LCA results have been verified through critical review • VOC emission testing instruments;
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Product Pillar Performance PT Avia Avian Tbk
A major breakthrough was the launch of Sunguard Basic, a premium exterior paint made from modified acrylic, specially Revenue from Sustainable Products
formulated to protect exterior walls for up to 6 years. Its UV Shield feature provides weather resistance, preventing the paint
color from fading easily, while its Super-Cover Technology makes the painting process easier and faster by ensuring more even Avian Brands’ continuous innovation in creating environmentally friendly products has positively impacted its revenue
coverage. This product is also certified with the Green Label Singapore. generation. In 2025, Avian Brands successfully recorded sales volume of Green Label-certified products of 59,917 tons or
32,43% of total paint sales volume in the architectural solutions operating segment. This figure increased compared to the
Avian Brands will continue to increase investments in research, innovation in alternative raw materials, laboratory digitalization, previous year by 54,798 tons or 31.86%.
and human resource development to ensure a consistent stream of innovation and support the Company’s sustainability
roadmap. Of these achievements, the proportion of value of revenue generated from Green Label-certified products reached 24.44%
of the total value of paint sales in the same segment. This figure suggests an increase compared to the previous year, where
the value of revenue from Green Label-certified products was recorded at 23.66%. This accomplishment is reflective of
Avian Brands’ successful strategy in introducing and marketing high-quality products that comply with strict environmental
standards.
Green Label Certification
Product Recycling
In an effort to strengthen sustainable practices Network (GEN) through the Global Ecolabelling
implementation across all business lines, Avian Brands Network International Coordinated Ecolabelling System
continues to take strategic steps by registering its flagship (GENICES). This certification refers to ISO 14024 and
products to obtain Green Label certification from Green ISO 17065 standards, with a third-party verification
Label Singapore (GLS). This certification is a form of system that ensures life-cycle assessments are conducted As part of its commitment to reducing waste and supporting the implementation of circular economy principles, Avian Brands
international recognition of the Company’s commitment to transparently and free from potential greenwashing. carries out a program to reuse products that are no longer allocated for commercial distribution. These products include
providing environmentally friendly products that are safe to 3. New Market Opportunities materials from previous production, discontinued formulations, and leftover paint from internal activities and specific projects.
use and have minimal impact on the ecosystem. By obtaining Green Label Singapore certification,
Avian Brands’ products have more opportunities to be Through an evaluation process developed by the technical team and the Research, Development, and Innovation (RDI) Division,
The Green Label Singapore certification process involves a recognized in other GEN member countries, opening these materials are reprocessed for internal use within the Company. This process involves quality screening, formulation
rigorous and comprehensive assessment covering various access to new export markets and strengthening adjustments, and retesting to ensure compliance with applicable quality and safety standards.
aspects, from raw material selection, production process competitiveness in the international market.
efficiency, waste management, to product life cycle 4. Competitive Advantage Through this program, Avian Brands not only reduces potential waste but also optimizes resource utilization, reduces
assessment (LCA). This approach ensures that every Avian Amidst growing public awareness of environmental consumption of new raw materials, and supports a more responsible product life cycle management strategy.
Brands product that obtains the Green Label Singapore issues, Green Label certification provides significant
certificate not only meets a high standard of quality, but differentiation value for Avian Brands’ products. This This initiative is a key part of the Company’s efforts to integrate the principles of recycle–reuse–recover into the value chain,
also demonstrates environmental responsibility throughout certification not only enhances the Company’s image as while strengthening an efficient and sustainable operational culture. Throughout the reporting year, waste materials from
its production value chain. a green brand but also serves as a distinguishing factor production and non-commercial products were successfully reused for internal needs based on Quality Control (QC) test
that strengthens its competitive edge in the market. results, resulting in no significant residual waste being discarded from the production process.
This measure is in line with the Company’s sustainability 5. Reducing Environmental Impact
strategy to ensure that every product is safe for customers Products certified with the Green Label Singapore
and environmentally friendly, while supporting emission ensure that the entire production process has taken
reduction and resource efficiency targets. environmental impact into consideration, from raw
Benefits of Green Label Singapore Certification for Avian
materials to packaging. Thus, customers choosing Avian
Brands products help reduce carbon emissions and Customer Satisfaction
Brands: waste throughout the product life cycle.
1. Wide Recognition 6. Efficiency and Cost Savings As a customer-oriented company, Avian Brands views customer satisfaction as a key indicator of success and the basis for
Green Label Singapore Certification is internationally The implementation of sustainability principles, which continuous improvement. The Company consistently conducts customer satisfaction surveys every six months to measure
recognized, demonstrating that Avian Brands products are part of the certification process, also helps the customer perceptions of Avian Brands’ products, services, and distribution performance.
comply with strict environmental standards. This company improve energy, water, and material efficiency,
recognition strengthens Avian Brands’ reputation as resulting in operational cost savings and increased The customer satisfaction survey in 2025 was conducted twice, in the first semester of 2025 with a total of 163 respondents out
a sustainable paint manufacturer and increases trust manufacturing productivity. This also supports Avian of 178 invited respondents, and in the second semester of 2025 with a total of 171 respondents out of 182 invited respondents.
among customers in both domestic and global markets. Brands’ goal of achieving more sustainable and efficient The aspects evaluated included product quality, delivery quality, and service quality.
2. Guaranteed Credibility operations.
Each Green Label Singapore certificate obtained by
Avian Brands is accredited by the Global Ecolabelling
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Product Pillar Performance PT Avia Avian Tbk
The survey results show that the total average gap of customer realization for PT Avia Avian Tbk (Paint Industry) in the first All follow-up actions from monitoring results are systematically recorded to support the continuous improvement process,
semester of 2025 was 3.39 out of 4.00, and in the second semester of 2025 was 3.39 out of 4.00. This score reflects that Avian ensuring that all customer feedback, audit results, and non-conformity findings can be addressed quickly, effectively, and with
Brands’ performance is in the good category and close to the minimum target score of 3.50 out of 4.00. a focus on sustainable performance improvement.
However, the evaluation results identified several areas that still need improvement, particularly in terms of product quality,
such as packaging quality, product stability, paint quality, and pricing suitability, as well as in terms of delivery quality, i.e.,
accuracy of product quantity delivered, accuracy of delivery time, and accuracy of product type delivered. These findings form
the basis for the relevant team to determine corrective actions in the next quality improvement cycle. Information Security Protection
Customer Satisfaction Surveys
As a company that values the trust of its customers, business partners, and employees, Avian Brands considers information
security to be a key pillar of business sustainability and good corporate governance. Protecting data and information it manages
Customer Satisfaction Surveys of PT Avia Avian Tbk
is a top priority, in line with its commitment to transparency, accountability, and compliance with applicable regulations.
180 171
163
Avian Brands ensures that all corporate data and documents, including employee information, internal policies, and
158
160 151 product formulations, are kept confidential and protected from potential misuse, loss, or data breaches. This commitment is
140 implemented through the Information Security Management System (ISMS) Policy, which has been disseminated throughout
140
125
all organizational levels and serves as the primary guideline for all data management activities.
120
100 As a testament to its implementation of best practices in information security management, Avian Brands has obtained
80 ISO/IEC 27001:2022 certification for Information Security Management Systems. This international standard forms the basis for
60 implementing a comprehensive and sustainable information security system across all corporate entities.
40
In practice, the Company implements a series of strict data control and protection mechanisms, including:
20 • Access control management for sensitive data and systems to ensure that only authorized parties can access them;
3.31 3.40 3.41 3.41 3.39 3.39
0 • Data encryption standardization to ensure digital information security;
Semester I Semester II Semester I Semester II Semester I Semester II
of 2023 of 2023 of 2024 of 2024 of 2025 of 2025
• Annual review of user access rights to assess relevance and compliance with internal policies;
• Management of super users’ access rights, which are monitored regularly to avoid the risk of misuse; and
Number of Respondents Survey Values • Annual information security audits, conducted to evaluate the effectiveness of data protection controls and systems.
In addition, Avian Brands actively conducts training and socialization for employees on the importance of maintaining
Process Performance and Conformity of Products and Services information security and raising awareness of potential cyber threats that could disrupt company operations.
Throughout 2025, there were no material issues related to process performance or conformity of products and services. During the reporting year, there were no incidents of breaches, loss, or misuse of data relating to the Company, its employees,
All key performance indicators, including fulfillment of customer demand, product quality, Overall Equipment Effectiveness customers, or business partners. Likewise, there were no complaints or sanctions from regulators or external parties regarding
(OEE) achievement, number and handling of customer complaints, and customer satisfaction survey results, showed that information security violations. This achievement reflects the effectiveness of Avian Brands› information security system and
conditions were well under control. its dedication to maintaining the trust of all stakeholders.
This consistent performance is the result of the implementation of integrated quality management systems, effective
interdepartmental coordination, and commitment to maintaining the quality and reliability of products received by customers.
Non-conformities and Corrective Actions Customer Complaint Handling
All reports of non-conformities and corrective actions are monitored regularly through an internal quality control system.
The monitoring process is carried out in a structured manner and presented in monthly routine meetings with the relevant Avian Brands is committed to providing responsive, transparent, and professional customer service. The Company recognizes
persons in charge, with the following reporting mechanisms: the importance of customer feedback in improving the quality of its products and services. Therefore, Avian Brands provides
a. The Board of Directors, through monthly monitoring of Key Performance Indicators (KPIs) and Minutes of Meetings from an easily accessible channel for complaints through the Company’s official website at www.avianbrands.com under
management meetings. the Customer Care menu.
b. Operations and RDI (Research, Development & Innovation) Departments, to ensure that product and formulation
improvements are on target.
c. Operations and Support Function Departments, in reviewing effectiveness of daily operational processes.
d. Operations and Procurement Department, to ensure that all raw materials, suppliers, and procurement processes meet
established quality and sustainability standards.
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Product Pillar Performance PT Avia Avian Tbk
This platform is designed to make it easy for customers complaints directly via Direct Message or through the
to submit complaints, grievances, or feedback related to WhatsApp contact information provided. Complaints
products and services, covering various aspects such as submitted through this channel are processed directly by
product quality, delivery, and packaging. Customers can the Avian Brands.
also attach supporting documentation, such as photos,
to expedite the problem identification and resolution Through this system, Avian Brands not only accommodates
process. customer complaints but also uses them as a source of
learning for continuous improvement in product design,
All reports received will be managed by the Quality Assurance packaging, distribution, and after-sales service.
(QA) team, tasked with following up on complaints quickly,
accurately, and in accordance with procedures. Resolution is Over the past three years, Avian Brands has not received any
carried out with a customer-centric approach, ensuring that material or significant complaints regarding its products
every issue receives adequate attention and a solution. and/or services. This achievement reflects the success of
its quality control system, the effectiveness of its complaint
In addition, Avian Brands also has a special complaint management, and the high level of customer trust in the
channel for No Drop products accessible through Instagram quality of Avian Brands’ products and services.
(@nodropindonesia), where customers can submit
GMO-Free and
Animal Testing-Free Products
Avian Brands is committed to maintaining high standards of This policy extends to the supply chain. Avian Brands
safety, ethics, and sustainability in every stage of research, requires its suppliers to comply with aligned ethical
formulation, and production. As of the end of the 2025 standards, including a ban on methods involving animal
reporting period, Avian Brands confirms that all products testing and compliance with regulations on safety of
developed and marketed do not contain Genetically non-genetically modified ingredients. This assessment
Modified Organisms (GMOs). This commitment aligns is part of the supplier qualification process and ongoing
with the principles of transparency, product safety, and audits.
environmental responsibility that form the foundation of
the Company’s value chain. Through consistent implementation of this policy, Avian
Brands affirms its commitment to:
All raw materials used in the formulation have undergone a • Consumer safety;
rigorous selection process, including technical verification, • Protection of living beings;
safety assessment, and compliance with applicable national • Responsible scientific practices; and
regulations and international standards related to material • Sustainable product development.
sustainability, consumer safety, and industry compliance.
Through this approach, Avian Brands ensures that innovation
As part of the implementation of sustainability and business and business growth are in line with ethical values, consumer
ethics principles, Avian Brands also implements a No Animal health, and environmental and social responsibility.
Testing policy in all stages of product research, quality
validation, and commercialization processes. Quality testing
and verification are carried out using globally recognized
scientific methods, including laboratory simulations,
material application tests, performance testing, and the use
of non-biological testing technologies that do not impact
living beings.
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PT Avia Avian Tbk Environmental Pillar Performance “Avian Brands consistently implements a responsible environmental approach in all of its operational activities, as a manifestation of the commitment to preserving nature and ensuring sustainability for the future. Every aspect of Avian Brands’ business is designed with environmental impact in mind, from product manufacturing to distribution. Focusing on energy efficiency, resource management, emissions reduction, waste treatment, and biodiversity conservation, Avian Brands strives to minimize its environmental footprint while improving environmental performance sustainably. This approach ensures that business growth goes side by side with environmental preservation, creating harmony between economic responsibility and ecological sustainability. Through green innovations and ethical operational practices, Avian Brands is determined to play a part in the solution towards a cleaner, more efficient, and sustainable future.” 82 2025 Sustainability Report 2025 Sustainability Report 83
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Environmental Pillar
Performance
PT Avia Avian Tbk
Key Performance Achievements of 5. Climate Change Mitigation and Adaptation Programs
As part of its responsibility to the earth, Avian Brands implements various climate change mitigation and adaptation
the Environmental Pillar in 2025 programs, including:
• Regular inventory and monitoring of GHG emissions to measure and manage the Company‘s carbon footprint;
• Energy efficiency and renewable energy initiatives, such as optimizing utility systems and converting to energy-
efficient equipment;
• Reforestation and carbon offset programs, through tree planting activities around operational areas, mangrove
planting, and rehabilitation in environmentally impacted areas;
Avian Brands successfully achieved the Green PROPER
• Climate risk management, by assessing the risks of potential extreme climate impacts on the supply chain and
award, making it the only paint company in Indonesia
production facilities; and
to have received this award for 4 consecutive years
• Integration of climate adaptation principles into business planning, ensuring resilience to future environmental
from 2022 to 2025 from the Ministry of Environment
changes;
and Forestry. Water reuse through the reuse cleaning water program
6. Biodiversity Preservation and Conservation
increased by 6.16% compared to the previous year
Avian Brands recognizes the importance of maintaining ecosystem balance by protecting biodiversity around operational
areas. The Company is committed to refraining from activities that could disrupt natural habitats and to supporting
environmental restoration and rehabilitation efforts, including tree planting, green space restoration, and mangrove
A total of 4,380.99 tons of sludge and leftover paints conservation in affected areas.
Increased reuse of hazardous waste by 60.18%
from projects were recycled, an increase of 60.41%
compared to the previous year.
compared to the previous year. In addition, Avian Brands collaborates with environmental agencies and local governments to strengthen biodiversity
conservation programs, ensuring that environmental sustainability extends beyond emissions and waste management to
Use of renewable energy from hydropower plants The number of environmentally friendly heavy include maintaining the balance of life-supporting ecosystems.
and solar panels reached 9,373.15 GJ, an increase of equipment units reached 38, or 62.30% of the total.
365.60% compared to the previous year In addition, 100% of forklifts use B40 biodiesel fuel Through this strategy, Avian Brands strives not only to reduce its environmental impact but also to actively contribute to
preserving biodiversity and ecosystem stability. This approach aligns with the vision to become a sustainable, globally
competitive chemical manufacturing company that is responsible for the future of the earth.
Environmental Impact Management Strategy
Environmental Management
Avian Brands recognizes that climate change and 2. Use of Environmentally Friendly Materials and
environmental degradation are global issues that demand Product Innovation Avian Brands recognizes that every aspect of its product • Promoting the implementation of energy efficiency,
concrete action from all sectors, including the manufacturing Avian Brands continues to expand the use of water- manufacturing and distribution activities can impact emission reduction, and integrated waste management
industry. As a company engaged in building coatings and based, low-VOC, APEO-free, and Heavy-Metal-Free the environment, directly or indirectly, including the programs; and
chemicals, it is Avian Brands’ responsibility to ensure that all raw materials, as well as to develop products that are use of natural resources, energy consumption, and • Ensuring that all environmental initiatives are in line
operational activities are carried out in an environmentally Green Label Singapore-certified. The entire formulation greenhouse gas emissions. This awareness underpins with the Company’s long-term sustainability goals.
responsible manner. process refers to the Life Cycle Assessment (LCA) Avian Brands’ commitment to conducting its operations
principle, verified by independent parties, to minimize responsibly, balancing business growth with environmental In carrying out its duties, the Environmental Management
As part of its sustainability commitment, Avian Brands products’ environmental footprint; sustainability. Committee works cross-functionally and coordinates with
implements an Environmental Impact Management 3. Waste Management and Water Efficiency relevant departments, including Sustainability, Quality
Strategy that focuses on resource efficiency, emissions Avian Brands implements an integrated liquid and solid As a concrete manifestation of this commitment, Avian Assurance, Health, Safety & Environment, General Affairs,
reduction, green innovation, biodiversity conservation, and waste management system to ensure that all waste is Brands has formed the Environmental Management and Engineering, to ensure best practices are applied in
compliance with environmental regulations. This strategy processed in accordance with environmental standards. Committee, tasked with ensuring that all business processes, managing environmental impacts across Avian Brands’ value
serves as the core guideline in maintaining a balance The Company also strives to improve water efficiency from manufacturing and logistics to product innovation, chain. Through this governance structure, Avian Brands aims
between business growth and ecosystem preservation. through reuse and recycling systems in manufacturing are consistently aligned with sustainability principles and to ensure that every business decision comprehensively
processes; prevailing environmental regulations. considers environmental aspects, from raw material use
The strategic steps implemented include: 4. Environmental Education and Collaboration and manufacturing processes to distribution and product
1. Improving Energy Efficiency and Emission Avian Brands promotes employee and business partner This committee is tasked with: life cycles. This approach serves as the foundation for the
Management involvement in environmental protection through • Establishing and reviewing corporate environmental Company to implement its decarbonization, resource-
By implementing the ISO 50001:2018 Energy internal campaigns, training, and environmental policies; conservation, and sustainable green innovation strategies.
Management System, Avian Brands monitors and awareness activities, as well as establishes collaborations • Conducting regular monitoring and evaluation of
optimizes energy use across all manufacturing facilities. with local communities in reforestation, conservation, environmental performance;
It is also gradually adopting more efficient and and ecosystem preservation programs around across its • Identifying and managing risks and opportunities
low-emission technologies to support the transition to operational areas; related to climate change;
low-carbon operations;
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Environmental Pillar
Performance
PT Avia Avian Tbk
Organizational Structure of the Environmental Management Committee To ensure that all business processes have a controlled environmental impact, Avian Brands has conducted a cradle-to-grave
Life Cycle Assessment (LCA), which analyzes all stages of a product’s life cycle, from raw material acquisition, manufacturing,
and distribution to product use and end-of-life. The results of the LCA study, verified through critical review by independent
Committee parties, provide an important foundation for Avian Brands in designing a more targeted and data-driven environmental
Chairman
management strategy (science-based approach).
Findings from the LCA study also serve as a key indicator in assessing Avian Brands’ environmental performance through
the Company Performance Rating Program (Program Penilaian Peringkat Kinerja Perusahaan/PROPER) administered by
Water GHG &
Environmental Energy Hazardous Non-Hazardous Efficiency Conventional Life Cycle Biodiversity the Ministry of Environment and Forestry of the Republic of Indonesia. In addition to its focus on prevention, Avian Brands
Management Efficiency Waste Waste Solid and Pollutant Emissions Assessment Protection also implements various environmental mitigation initiatives, including tree planting to offset carbon emissions, improving
System Team Team 3R Team Waste 3R Team Load Reduction Reduction Team Team
Team Team energy and water efficiency, and reducing greenhouse gas emissions. These efforts reflect Avian Brands’ determination not
only to comply with regulations but also to actively contribute to national and global efforts to preserve the environment and
Water Efficiency GHG &
Environmental Hazardous Non-Hazardous and Water Biodiversity
minimize the impact of climate change.
Energy Conventional Environmental
Management Waste Reduction Solid Waste 3R Pollutant Emissions Protection
System Manager Manager
Coordinator Coordinator Load Reduction Reduction Coordinator
Coordinator Coordinator Coordinator
Non-Hazardous Water Efficiency
Evaluation of Environmental Management
Hazardous GHG & Life Cycle Biodiversity
Environmental Waste Solid and Water
Energy Waste Conventional Assessment Protection
Management Waste Pollutant
Auditors Reduction Team Emissions Team Team
System 3R Team Load Reduction
Members Reduction Members Member
Team Members Members Team Members Team Members
Avian Brands ensures that every employee tasked with This initiative reflects Avian Brands’ long-term commitment Avian Brands conducts periodic environmental management In the 2025 financial year, Avian Brands successfully
environmental management responsibilities possesses the to maintaining a balance between business sustainability evaluations to ensure the effectiveness, compliance, maintained its Green PROPER rating, which reflects
relevant skills, expertise, and understanding of sustainability and environmental preservation. This is explicitly stated in and sustainability of all implemented programs. These the implementation of beyond compliance practices
principles and best practices in their field. Avian Brands places Avian Brands’ Environmental Management Policy, which evaluations are critical to the continuous improvement in environmental management, energy efficiency, and
human resource competence at the core of ensuring that all serves as the main guideline for all work units in carrying mechanism within the ISO 14001:2015 Environmental environmental-based social responsibility programs. This
operational activities are carried out with consideration for out environmentally friendly and regulatory-compliant Management System, which has been implemented across achievement confirms Avian Brands’ position as the only
environmental protection and conservation. operations that are oriented towards a sustainable future. all manufacturing facilities. paint company in Indonesia to have successfully achieved
Green PROPER for four years in a row (2022–2025).
This commitment is realized through the implementation Avian Brands consistently implements comprehensive, Evaluation activities include monitoring environmental
of planned, measurable, and sustainable environmental sustainable environmental management across its entire quality at each operational facility, including testing Moreover, Avian Brands also received the Green Industry
management systems across all manufacturing facilities. operational chain. As a first step, Avian Brands ensures wastewater quality, air emission, ambient air, noise, and Certificate from the Ministry of Industry of the Republic of
Avian Brands has implemented an ISO 14001-based compliance with all environmental licensing requirements groundwater. Monitoring is carried out in collaboration Indonesia, in recognition of its success in implementing
Environmental Management System, first verified by an mandated by the government from the early stages with accredited environmental laboratories to ensure green industry principles, including efficient use of energy
independent certification body in 2012. Implementation of of business activities, through the preparation of the test results are valid and reliable. Monitoring results are and resources, emission reduction, and implementation
this standard ensures that all manufacturing processes, from Environmental Management and Environmental Monitoring then reported regularly to local and central government of environmentally friendly innovations in manufacturing
raw material use and waste processing to emissions control, Efforts (Upaya Pengelolaan Lingkungan Hidup dan Upaya agencies on a monthly or semi-annual basis in accordance processes. Both of these achievements reinforce Avian
comply with national regulations and align with global best Pemantauan Lingkungan Hidup/UKL-UPL) document. with applicable laws and regulations. In addition to internal Brands’ commitment to improving environmental
practices. Compliance with these licenses is essential in ensuring monitoring, Avian Brands also actively participates in the performance sustainably, not only through regulatory
the alignment of all operational activities with national Company Performance Rating Program (Program Penilaian compliance but also through innovation towards
By implementing ISO 14001, Avian Brands consistently regulations and good environmental governance principles. Peringkat Kinerja Perusahaan/PROPER) in Environmental low-carbon, resource-efficient manufacturing operations.
monitors, audits, and evaluates environmental performance Management, organized by the Ministry of Environment and
to ensure system effectiveness and encourage continuous As part of continuous compliance, Avian Brands routinely Forestry (Kementerian Lingkungan Hidup dan Kehutanan/
improvement. Each audit finding and monitoring result reviews and updates its environmental licenses to ensure KLHK). This program is a national benchmark for assessing
informs the development of environmental performance they remain aligned with policy changes and developments the environmental management performance of Indonesian
improvement plans, including in the areas of energy in its corporate sustainability program. Each operational companies.
efficiency, waste reduction, and responsible resource unit, including plants, warehouses, headquarters, and
management. branch offices, has taken steps to prevent adverse
environmental impacts by integrating eco-efficiency
principles into all relevant processes. This approach focuses
not only on compliance but also on optimizing resource use
and reducing waste as part of a commitment to continuous
improvement.
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Environmental Pillar
Performance
PT Avia Avian Tbk
Sustainable Production Process
Throughout 2025, Avian Brands successfully implemented Strategic Direction and Sustainability
various packaging efficiency initiatives, including: Opportunities
• Reducing the weight of metal cans by 10.57%;
• Reducing the weight of shrink film plastic packaging by Avian Brands views the management of materials not merely
Avian Brands recognizes that material use in the production This policy is also outlined in the ISO Integrated Manual 36.47%; as regulatory compliance, but as a long-term business
process is crucial to maintaining a balance among (ISO 9001, 14001, 45001, 50001), specifically in Clause • Replacing toxic materials and reducing the weight of strategy that strengthens its competitiveness. Results of
product quality, operational efficiency, and environmental 8 Operations, which regulates operational control of raw plastic packaging in Viplas shrink film, contributing to the Risk & Opportunity Assessment reveal a number of
responsibility. In line with its sustainability commitment, materials, material quality, and compliance with safety and 50% packaging efficiency; opportunities that support business continuity, including:
Avian Brands implements a holistic approach to material environmental standards. Through this approach, Avian • Eliminating plastic materials in 100% of product 1. Sustainable growth through product innovation and
management to ensure that every stage of production is Brands is committed to minimizing environmental impact packaging seal rings; national distribution network expansion;
conducted in a responsible, efficient, and environmentally throughout the supply chain and ensuring that every • Changing the size and grammage of Viplas cardboard 2. Expansion of manufacturing capacity through the
friendly manner. material used has minimal impact on the ecosystem and packaging, resulting in 8.79% efficiency, and operation of a new plant in Serang and the construction
public health. • Reducing the weight of product paper packaging by of a plant in Cirebon to meet growing market demand;
Some of the materials used in the production process are 41.67%. 3. Vertical Raw Material Integration, allowing Avian
chemicals which, if not managed properly, could potentially Brands to manage the supply chain from upstream to
cause adverse environmental impacts. Thus, Avian Brands Proportion of Materials and Efforts Overall, this program generated packaging efficiency of downstream to ensure production quality, efficiency,
has established a material management system integrated to Increase Environmentally Friendly 23.16 tons or 85.67%, with potential cost savings of up to and sustainability. This system strengthens the
with the Product Quality and Environmental Sustainability Materials IDR 1.2 billion. These measures not only reduce packaging Company’s resilience to global supply fluctuations and
Policy, which contains two key commitments: waste, but also strengthen Avian Brands’ position as an accelerates formulation innovation;
1. Promoting the use of renewable materials and In general, the materials used by Avian Brands are divided industry player that champions green innovation. 4. Market segment diversification by expanding the
environmentally friendly chemicals, and into two main categories: business lines of B2B and commercial projects, including
2. Achieving raw material efficiency through product • Renewable materials , such as calcium, paper-based or cooperation with contractors, architectural consultants,
design oversight and innovation across all company cardboard-based packaging materials, and plant-based Material Recycling and Circular Economy and heavy industry sectors such as mining and
lines. ingredients and additives. Initiatives plantations; and
• Non-renewable materials such as solvents, pigments, 5. Sustainable investment in human resource development
and various plastic-based products. In addition to efficiency, Avian Brands also implements and green product innovation, including low-VOC,
circular-economy principles through waste-reuse programs heavy-metal-free, and water-based paints, providing
Information on the use of materials in the paint manufacturing process is described below: in its manufacturing processes. A key initiative is using the foundation for more responsible and competitive
water-based paint sludge within the same manufacturing business growth.
tons
cycle to minimize hazardous waste.
Through these strategic steps, Avian Brands continues to
In 2025, Avian Brands successfully recycled 4,380.99 tons of affirm its commitment to integrating sustainability into all
sludge and leftover paints from projects a 60.41% increase business processes, from raw material procurement to the
compared to 2024, with a material recycling ratio of 26.92 finished products it delivers to consumers. This approach
72,903.20
117,435.92
69,528.10
70,887.41
89,589.48
90,063.17
kg per ton of paint production. In addition, washing solvent not only demonstrates environmental responsibility but
recycling in solvent-based paint production also produced also embodies Avian Brands’ mission to “Add Color, Preserve
235.84 tons of recycled raw materials, or 8.58 kg per ton of Life”.
solvent-based paint production, contributing to a 3.32%
reduction in hazardous waste disposal to third parties
compared to the previous year.
2023 2024 2025
Renewable Materials Non-renewable Materials These initiatives showcase the effectiveness of implementing
a closed-loop production system, where production waste
Avian Brands continuously strives to reduce its reliance on non-renewable materials by expanding the use of environmentally is reused as raw materials, while reducing dependence on
friendly materials. As of 2025, 56.60% of the materials used are renewable, marking a 0.30% increase from 2024, equivalent to new material sources.
56.30% environmentally friendly materials. This increase was achieved through efficiency strategies, product innovation, and
production process optimization oriented towards the principles of reduce, reuse, and recycle (3R).
Packaging Efficiency and Innovation Program
As part of its commitment to reducing its environmental impact, Avian Brands implements a Packaging Efficiency Program that
focuses on waste reduction and material-use optimization. Efficiency efforts are carried out through:
• Reducing packaging grammage and size;
• Replacing materials with lighter and stronger alternatives, and
• Reducing the use of cardboard and plastic.
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Energy Efficiency
All of these initiatives reinforce Avian Brands› position as that follow-up improvements are carried out quickly and
a manufacturing company focused on energy efficiency accurately.
and environmental innovation. This commitment has also
received external recognition with a Silver Medal at the By implementing a robust energy management system,
2025 Environmental & Social Innovation Awards, organized digitizing energy performance monitoring, and pursuing
Avian Brands recognizes energy as a vital element in friendly. Avian Brands also employs emission control
by SUCOFINDO, in the Environmental Innovation category, a series of innovations focused on reducing consumption
supporting all its operational activities, from manufacturing measures, including forklifts equipped with catalytic filters
thanks to the emission-reduction program. and emissions, Avian Brands is taking concrete steps toward
and distribution to office operations. Energy is used to in the exhaust system to reduce carbon monoxide and
efficient, sustainable green manufacturing operations.
power machinery, equipment, utility systems, lighting, and nitrogen oxide emissions. In addition, 100% of its forklifts
Since 2022, Avian Brands has been certified ISO 50001:2018 Going forward, the Company will continue to scale up
electronic devices in the office. Avian Brands’ primary energy use B40 diesel fuel, which is a mixture of diesel fuel and
for Energy Management Systems (EMS), ensuring that all the use of renewable energy and strengthen a culture of
sources include electricity, fuel oil, and gas obtained from 40% biodiesel (renewable). This initiative embodies Avian
energy management processes are carried out in a structured efficiency across all business lines to achieve its long-term
third-party suppliers. In line with growing awareness of the Brands› commitment to promoting renewable energy and
and sustainable manner. Through this system, the Company decarbonization and sustainability goals.
limited supply of fossil fuels and their environmental impact, reducing carbon emissions.
monitors energy consumption and efficiency performance
Avian Brands is committed to using energy efficiently and
regularly using Energy Performance Indicators (EnPi). Energy The guidelines used by Avian Brands to calculate total
responsibly and to gradually transitioning to new, more Energy efficiency is also achieved through the use of
usage data is collected in real-time through the integrated energy usage refer to the Guidelines for the Implementation
environmentally friendly renewable energy sources. transparent fiber roofs in production areas and warehouses
digital system “Avian Portal ESG,” which provides up-to- of the National Greenhouse Gas Inventory Book II-Volume
to maximize natural lighting during the day, as well as the
date information on electricity, gas, and fuel consumption, 1: Methodology for Calculating Greenhouse Gas Emission
This commitment is explicitly stated in the Sustainability use of solar-powered streetlights that have fully replaced
as well as energy efficiency achievements from time to time. Levels (Energy Sourcing and Use Activities), in line with
Policy, Product Quality and Environmental Pillar, specifically conventional lighting systems. This initiative not only
Monitoring results are evaluated monthly by the EMS Team, international best practices such as the GHG Protocol and
in the fifth point, which reads “Implementing energy reduces electricity consumption but also enhances Avian
and results are reported to the Board of Directors to ensure ISO 50001:2018.
efficiency measures and maximizing the use of new Brands’ image as a company that consistently practices
renewable energy through monitoring, implementing, and green manufacturing principles.
encouraging design or development activities across the
entire company.”. This principle serves as the foundation Additionally, the re-layout of the raw material warehouse
for all energy-efficiency initiatives implemented by Avian and finished product warehouse at the Sidoarjo plant has Energy Conversion from Physical Units to TerraJoules (“TJ”)
Brands across all production facilities and operational areas. successfully improved distribution efficiency and loading
process productivity. Implementation of this initiative has
Avian Brands has implemented various energy efficiency reduced average man-hours by 11.52% and has become Energy Use (TJ) = Energy Use (physical unit) x Calorific Value (TJ/physical unit)
initiatives across its facilities. Among the innovations a flagship project of the Quality Control Group (Gugus
successfully implemented is improved energy efficiency in Kendali Mutu/GKM) at the Sidoarjo Plant. Meanwhile,
Source: Guidelines for the Implementation of the National Greenhouse Gas Inventory Book II-Volume 1 Methodology for Calculating Greenhouse Gas
the paste production process. This innovation is achieved the re-engineering of the resin production process also Emission Levels (Energy Sourcing and Use Activities).
by adjusting the sizes of the grinding media and the disk significantly improved energy efficiency by reducing the
mixer, thereby reducing the grinding process cycle time by production cycle time from 23.58 hours to 18.25 hours, or Based on this methodology, information on Avian Brands’ energy use in all operational activities is described below:
up to 18.36%. This optimization has successfully reduced approximately 22.60%, while increasing the productivity of
electricity consumption by 29.90%, from 63,988.09 kWh solvent-based resin. Energy Consumption within the Organization
to 44,857.46 kWh. In addition, Avian Brands reduced the
Energy Type Unit 2025 2024 2023
specific energy consumption of the paste production To reduce dependence on diesel fuel, Avian Brands also
process by 23.34%, from 219.02 kWh/ton to 167.90 kWh/ton, developed a rail conveyor system that directly connects
without compromising production quality or speed. the resin plant and the solvent-based paint plant. This
innovation manages to save 4,302 liters of diesel fuel per Consumption of Non-renewable Energy
Other efforts include repositioning pipelines and optimizing year and reduce GHG emissions by 11.53 tons of CO₂e per Electricity* GJ 48,922.98 53,110.95 51,149.38
the air compressor system, resulting in a reduction in year. For this achievement, Avian Brands received the Grand Fuel Oil** GJ 2,871.91 2,857.66 3,405.69
electricity consumption of 114,644.26 kWh/month, Prize at the IDX Channel Anugerah Inovasi Indonesia 2022 in Gas*** GJ 39,554.03 43,495.72 43,561.14
equivalent to a 99.74 tonCO2e reduction in greenhouse gas the Internal Innovation category. Total Consumption of
emissions. Other efforts were made in the paint can printing GJ 91,348.93 99,464.33 98,116.21
Non-renewable Energy
oven process, where the application of automatic change- Another step taken was the modification of the pump
Consumption of Renewable Energy
over valve technology reduced the energy consumption system in the cooling tower, resulting in energy savings of
Electricity consumption from
ratio from 0.44 to 0.36 mmBTU/ton, demonstrating 39.39% and operational cost savings of up to IDR 526.83 hydropower plants (purchased)
GJ 5,400.00 0.00 0.00
significant energy efficiency. million per year. Additionally, Avian Brands also switched
Consumption from solar panels
the incinerator and burner systems, improving combustion GJ 3,973.15 2,013.12 1,814.71
(self-generated)***
As part of its decarbonization commitment, Avian Brands efficiency and reducing gas energy consumption in
Total Consumption of Renewable
has switched to using environmentally friendly heavy manufacturing facilities. GJ 9,373.15 2,013.12 1,814.71
Energy
equipment, including electric forklifts. As of 2025, 38 units,
Total Renewable Energy and
or 62.30% of the total heavy equipment, are environmentally GJ 100,722.08 101,477.45 99,930.92
Non-Renewable Energy Usage
* Electricity use within the scope of AVIA (Sidoarjo Plant, Serang Plant, and Head Office), TKTW, and TKBI;
** Solar energy use within the scope of AVIA (Sidoarjo Plant and Serang Plant); and
*** Gas and solar panel use within the scope of AVIA (Sidoarjo Plant and Serang Plant).
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Energy Intensity 2025 2024 2023
Renewable Energy Usage
GJ/Ton of Product GJ 0.14 0.17 0.18
kWh/Ton of Product GJ 38.21 47.20 49.74
9,31% 23,27% or 8,16%
Energy Use from Renewable 2.265,18 TonCO2e Reduction in Non-Renewable
Energy Consumption Outside the Organization
Sources of Total Energy Total Emission Reduction due to Energy Consumption
Consumption Renewable Energy Use
Avian Brands understands that energy management including key raw material suppliers, regional distributors, As part of its commitment to implementing sustainable production practices, Avian Brands consistently strives to reduce its
responsibility does not stop at its internal operational and third-party logistics providers. This collaborative carbon footprint by improving energy efficiency and accelerating the transition to renewable energy sources. Avian Brands’
boundaries only. In line with value chain sustainability approach enables the Company to identify areas of high renewable energy sources include the installation of solar panels and the use of Renewable Energy Certificates (RECs) in
principles, Avian Brands also monitors and manages energy consumption and develop joint strategies to reduce collaboration with the Cirata and Saguling hydropower plants.
energy consumption outside the organization that directly indirect emissions arising throughout the supply chain.
or indirectly contributes to Scope 3 GHG emissions. In addition to utilizing solar energy and REC-based electricity, Avian Brands also actively controls its non-renewable energy
Energy consumption outside the organization includes As part of this commitment, Avian Brands actively conducts consumption, including conventional electricity, fuel oil, and gas from third-party providers. In 2025, total non-renewable
transportation and distribution activities, both upstream, outreach, training, and sustainability audits with its energy consumption is projected to decrease by 8.16%, in line with the success of various energy efficiency programs
which covers Category 4: Upstream Distribution and suppliers and distribution partners. Through these activities, implemented across all operational lines, supported by a significant increase in renewable energy consumption of 365.60%.
Transportation, and downstream, which covers Category 9: the Company encourages the implementation of energy
Downstream Distribution and Transportation. efficiency practices, the use of fuel-efficient vehicles, and Avian Brands has also obtained a Green Industry Certificate as recognition for implementing an efficient, environmentally
an increase in the proportion of renewable energy sources friendly manufacturing system that complies with national industrial sustainability standards. This achievement reinforces
In 2025, Avian Brands’ total energy consumption outside in transportation and logistics activities. Several Avian Avian Brands’ position as a paint industry player committed to sustainable clean energy, green innovation, and carbon emission
the organization was recorded at 124,261.95 GJ, a 4.27% Brands’ transportation partners have also participated in reduction.
decrease from 119,167.55 GJ in 2024. Of this total, the the eco-driving program, which focuses on fuel savings
downstream transportation and distribution category and carbon emission reductions in the downstream
remains the largest contributor, accounting for 113,872.64 transportation sector.
GJ, or approximately 91.64% of the organization’s total
external energy consumption. The remainder comes In addition, Avian Brands continues to explore opportunities Solar Panels Renewable Electrical Energy
from upstream transportation and distribution activities, for supply chain decarbonization by implementing digital
including delivery of raw materials from suppliers to Avian distribution route systems based on GPS and telematics, In 2025, the total use of new and renewable energy from Continuing this success, in 2025 Avian Brands strengthened
Brands’ manufacturing facilities. which help optimize delivery routes and significantly solar panels reached 3,973.15 GJ, up 97.36% compared to its transition to clean energy by entering partnership with
reduce fuel consumption. This step not only impacts 2024, and 495.88% compared to the 2021 baseline (666.77 renewable energy providers, namely the Cirata Hydropower
Calculations of energy consumption outside the organization energy efficiency but also strengthens the integration GJ). This increase was mainly driven by the expansion of solar Plant and the Saguling Hydropower Plant. In 2025, its
were based on the GHG Protocol – Corporate Value Chain of sustainability data across departments and external panel installations, with 33.33% solar panel installations on mortar production facility uses 100% renewable electricity
(Scope 3) Standard approach, as well as the IPCC Guidelines partners. Avian Brands’ commitment to managing the roofs of production areas and warehouses. The increase with a total consumption of 500 MWh. Meanwhile,
and ISO 14064. This approach was used to ensure that the energy consumption outside the organization is part of in solar panel usage compared to 2024 contributed to the water-based paint production facility at the Merapi
generated data can be integrated into the company’s overall a larger strategy to reduce total energy intensity and expand a 959.89-ton CO₂e per year reduction in GHG emissions, Plant uses 500 MWh of renewable electricity sourced from
carbon emissions inventory system, at both the operational the sustainability impact across the value chain. Through equivalent to the environmental benefits of planting 19,500 the Saguling Hydropower Plant, equivalent to 50.42%
and supply chain levels. a collaborative, data-driven approach, Avian Brands is acacia kurmis trees. Recognizing the positive contribution of the plant’s total energy consumption. At the paint
committed to creating a greener, more efficient, and lower- of renewable energy to reducing emissions, Avian Brands is production facility at the Bromo Plant, renewable electricity
Since 2023, Avian Brands has initiated a Scope 3 emissions carbon industrial ecosystem aligned with national targets to targeting 40% renewable energy installation in its production consumption from the Saguling Hydropower Plant also
mapping and inventory program, with a primary focus on reduce greenhouse gas emissions and Indonesia’s energy areas by 2030. reached 500 MWh, representing 55.14% of the plant’s total
transportation, distribution, and logistics activities. In 2025, transition agenda toward Net Zero Emissions by 2060. energy consumption. The use of renewable electricity is
this effort was expanded to include more strategic partners, an important milestone for the Company in achieving its
medium-term target of reducing emissions by 50% by 2030
and supporting the Net Zero Emission Roadmap.
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Overall, the implementation of solar panels and renewable energy intensity per product unit, and manage the Energy
electricity in 2025 increased the proportion of renewable Performance Indicator (EnPI) database for evaluation and Water Risk Filter Score Plant Serang
energy by 7.33% and resulted in an emissions reduction continuous improvement purposes. Operational Risk Scores
of 2,265.18 tons of CO₂e. This achievement reaffirms
Avian Brands’ commitment to promoting operational Through an integrative strategy involving energy efficiency
Basin Physical Risk 2.6
decarbonization through the gradual use of clean energy. across production units, increasing solar energy capacity,
and collaborating with renewable electricity providers, Avian
The entire process of monitoring and controlling renewable Brands is determined to keep increasing the proportion of
energy use is carried out digitally, through the Avian renewable energy in its energy mix. This move is part of Avian Basin Regulatory Risk 1
ESG Portal system, under the coordination of the QAS Brands’ long-term commitment to supporting the national
Department, supported by the Energy Management System energy transition agenda and creating a greener, more
(EMS) Team as the technical supervisor. This system works resilient, and globally competitive industrial ecosystem.
in real time to record energy consumption data, monitor Basin Reputational Risk 2.17
WWF Water Risk Filter Levels
Water Usage Very Low
(1.0-1.8)
Low
(1.8-2.6)
Medium
(2.6-3.4)
High
(3.4-4.2)
Very High
(4.2-5.0)
As part of its commitment to responsible, sustainable operational practices, Avian Brands considers water management In 2025, water consumption for plant operations and domestic activities was recorded at 186.11 megaliters, increasing by
a crucial aspect of maintaining environmental balance and operational efficiency. Avian Brands consistently implements 35.31% compared to the previous year. This was influenced by increased plant operations, including utility requirements,
water-efficiency, conservation, and wastewater-reuse innovations to ensure every drop of water is used optimally. These efforts cooling systems, cleaning processes, and increased production intensity, which also rose by 16.46%. In addition, increased
align with the principles of reduce, reuse, recycle in natural resource management. water consumption was also influenced by growth in headcount.
Water Sources and Usage In line with the foregoing, the Company simultaneously strengthened its water management strategy through the
implementation of process efficiency, reuse of treated wastewater, and various water conservation initiatives.
Avian Brands obtains its water supply from two main sources: groundwater (artesian wells) and third-party water (PDAM).
Groundwater use across all manufacturing facilities is permitted by local governments and carried out in compliance with
applicable environmental regulations. Meanwhile, water sourced from third parties is generally used for domestic and Water Efficiency and Conservation Initiatives
non-production operational purposes. Avian Brands ensures that all groundwater extraction is carried out in accordance with
water extraction permits issued by the local government and has undergone environmental feasibility analysis, ensuring To support efficient and sustainable water use, Avian Brands implements various water conservation initiatives that are integrated
that no adverse impact is caused to groundwater reserves and the local ecosystem. In addition, Avian Brands regularly into its environmental management policies and systems. All monitoring is carried out digitally through the Avian ESG Portal
reviews water availability risks in its operational areas using the Water Risk Filter platform from the World Wide Fund for with the support of flowmeters at each major point of use. Water usage and efficiency data are also reported through the Green
Nature (WWF), which indicates that the plant location is in the low to moderate risk category. This also demonstrates Industry Certificate (Sertifikat Industri Hijau/SIH) issued by the Ministry of Industry of the Republic of Indonesia since 2022, as well
the Company’s commitment to not extract water in areas with a high risk of water scarcity. as the PROPER assessment by the Ministry of Environment and Forestry of the Republic of Indonesia. Water efficiency programs
that have been implemented include:
Water Risk Filter Score Plant Sidoarjo 1. Reuse of Industrial Wastewater 3. Integrated Liquid Waste Management
Rinse water from cleaning and tank sanitation processes Avian Brands operates a Sewage Treatment Plant (STP)
Operational Risk Scores
is reused as a mixture component in the paint production to manage domestic waste and an Industrial Wastewater
process, without compromising final product quality. In Treatment Plant (Instalasi Pengolahan Air Limbah/
Basin Physical Risk 2.87 2025, this initiative saved 682.50 megaliters of water, IPAL) using filtration and ozonation technologies
with a usage ratio of 5.05 L/ton of water-based products. for industrial wastewater. This process ensures that
2. Rainwater Harvesting System wastewater discharged into the environment meets
The Company’s water conservation efforts include regulatory quality standards. In 2025, no incidents of
Basin Regulatory Risk 1
rainwater harvesting, designed to utilize rainwater for non-compliance with water quality permits or violations
non-production activities. In the past year, the rainwater of quality standards were reported.
harvesting program has saved 2.36 megaliters of water, 4. Implementation of Water-Saving Sensor Faucets
Basin Reputational Risk 2.71 equivalent to a cost efficiency of IDR 40.27 million. Since 2020, all of Avian Brands’ main facilities have
Monitoring is carried out using digital flowmeters to replaced manual faucets with automatic sensor
ensure the system’s continued effectiveness. faucets. This technology prevents water waste due to
WWF Water Risk Filter Levels
unmonitored flow and has successfully reduced water
consumption by approximately 0.98 megaliters per year
Very Low Low Medium High Very High in work areas and production support facilities.
(1.0-1.8) (1.8-2.6) (2.6-3.4) (3.4-4.2) (4.2-5.0)
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5. Use of Chamber Wash for Cleaning Processes Throughout 2025, Avian Brands ensured that all liquid Laboratory test results are reported regularly through
Avian Brands developed the chamber wash, a tool for cleaning pumps and packing hoses that saves water and improves waste generated by its operations met the environmental the Electronic Environmental Reporting Information System
cleaning effectiveness. This innovation replaces the manual method that previously caused large amounts of water quality standards set by national and regional regulations. (Sistem Informasi Pelaporan Elektronik Lingkungan Hidup/
wastage. Industrial wastewater management refers to East Java SIMPEL) managed by the Ministry of Environment and
6. Optimization of Paint Tinting with Digital Technology Governor Regulation No. 52 of 2014 concerning Industrial Forestry. This reporting is a manifestation of Avian Brands’
Through the Datacolor Match Pigment (DMP) system, color mixing is performed with high precision, minimizing color trials Wastewater Quality Standards for Paints and Inks, as well transparency and accountability in ensuring regulatory
and reducing the water required for cleaning. This directly reduces the volume of water used in the tinting process. as Regulation of the Minister of Environment and Forestry compliance and environmental responsibility across all of its
7. Zero Spill Water Control Program of the Republic of Indonesia No. P.68/Menlhk/Setjen/ manufacturing facilities.
To prevent water loss from spills, Avian Brands installed automatic float valves on the filling systems for raw material water Kum.1/8/2016 concerning Domestic Wastewater Quality
tanks. This initiative has proven effective in controlling water use volume while reducing operational costs for clean water. Standards. Data on water usage and the achieved efficiency Avian Brands’ compliance with strict wastewater
are also transparently reported through the Green Industry management standards has earned government
Certificate (Sertifikat Industri Hijau/SIH) issued by the Ministry recognition, as evidenced by the Green PROPER rating
Water Use of Industry of the Republic of Indonesia since 2022. it has achieved for four consecutive years (2022–2025).
This accomplishment not only demonstrates Avian Brands’
Megaliter To ensure the quality and reliability of monitoring results, success in maintaining environmental performance but also
all wastewater analysis tests are conducted by laboratories reflects the implementation of an effective and efficient
2025 186.11 accredited by the National Accreditation Committee (Komite wastewater management system focused on continuous
Akreditasi Nasional/KAN). Testing is carried out periodically improvement.
using standardized methods, ensuring that all water quality
parameters, including pH, BOD, COD, TSS, oil and grease, and Moving forward, Avian Brands will continue to conduct
Year
2024 137.54
heavy metals, remain below the required thresholds. regular monitoring and evaluation of wastewater quality
through the Avian ESG Portal, which integrates on-site
monitoring data. This aims to ensure that every part of
2023 137.77 the manufacturing process aligns with environmental
sustainability principles and supports national efforts to
0.00 50.00 100.00 150.00 200.00 maintain water quality and aquatic ecosystems.
Discharge of water into water bodies/wastewater
(Megaliters) 2025 2024 2023
Emissions Management
Domestic 5.35 4.68 3.71
Global climate change, characterized by rising average global temperatures, poses a major challenge to the sustainability of
Industry 0.27 0.26 0.20
livelihood. Increased greenhouse gas (GHG) emissions, mostly from human activities such as fossil fuel consumption, industrial
processes, and waste management, necessitate concrete action from all sectors, including the manufacturing industry.
Industrial Wastewater Reuse Ratio (Liters/Ton of Water-Based Product) In support of the national policies, Avian Brands is committed to contributing to the implementation of Presidential Regulation
No. 98 of 2021 concerning the Implementation of Carbon Economic Value (Nilai Ekonomi Karbon/NEK), which aims to
accelerate the achievement of the national Net Zero Emission (NZE) target by 2060 or sooner. This commitment is internalized
in Avian Brands’ ESG Roadmap, in which the Company targets:
2025 2024 2023 • A 50% reduction in Scope 1 & 2 GHG emissions by 2030, compared to the 2021 baseline; dan
• Achieving the Net Zero Emission target by 2050 with an emission reduction of more than 95% through sustainable
operational transformation and carbon offset initiatives.
5.05 4.86 5.06 Scope 1 (Direct Emissions) Reduction Strategy
Scope 1 emissions originate from the use of fossil fuels in operational activities. Avian Brands implements its emissions
reduction strategy through four main approaches:
Further information on water extraction, water discharge, water consumption, and effluent reuse is provided in the
ESG Performance Data. 1. Operational Energy Efficiency
• Installation of transparent roof panels in production facilities and warehouses to utilize
natural light;
• Use of solar street lighting in plant areas; and
• Replacing the previous material transportation system between units with a closed piping
transfer system.
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2. Production Process Optimization Information regarding greenhouse gas emissions generated is presented in the following table:
• Re-layout of raw material warehouse and finished product warehouse to reduce the need for forklifts;
• Re-engineering of processes at the Resin Plant to save energy; and
• Use of rail conveyors to replace inter-building operational vehicles.
Greenhouse Gas Emissions Generated
3. Low Emission Technology
• Conversion of diesel forklifts to electric forklifts;
GHG
• Optimization of burners and incinerators for greater efficiency; and
• Modification of the cooling tower pump system to reduce energy consumption.
4. Carbon Offset Program
Avian Brands implements tree planting programs in plant areas and conservation areas (slopes of Mount Arjuno, and
TKTW), as well as mangrove planting on Martajasah Beach, Bangkalan, as part of its natural carbon absorption initiative
and commitment to biodiversity programs.
Hydrifiuo
Rocarbons
Scope 2 (Indirect Energy Consumption) Emission Reduction Strategy (HFC2)
Perfluoro Sulphur
Carbon Nitrous Oxide
1. Transition to Renewable Energy Carbons Hexafluoride
Dioxide (CO2) (N2O)
• Utilization of solar panels at manufacturing facilities and headquarters; and (PFC5) (SF2)
• Procurement of Renewable Energy Certificates (REC) to ensure that electricity supply comes from clean energy. Methane
2. Electricity Use Efficiency (CH2)
• Replacement of all lighting systems with energy-saving LED lights; and
• Implementation of digital-based smart energy monitoring system for real-time monitoring.
Emissions Monitoring and Reduction Targets
line with the implementation of the Avian Portal ESG digitalization system, which enables integrated monitoring and analysis
of emissions intensity. 1 2 3
Emissions are calculated in accordance with the GHG Protocol, ISO 14064, and IPCC (Intergovernmental Panel on Climate
Change) guidelines. This approach ensures that all greenhouse gas emissions measurements and reporting are carried out SCOPE 1 SCOPE 2 SCOPE 3
using accurate, consistent, and scientifically auditable methodological standards.
• 2025 Achievements: A 27.26% reduction in Scope 1 & 2 emissions, equivalent to 3,649.40 tons of CO₂e compared to 2021 DIRECT EMISSIONS INDIRECT EMISSIONS All Other INDIRECT EMISSIONS
From Owned or Controlled From the generation of That Occur in A Company’s Value
baseline (13,385.60 tons of CO₂e). Source purchased energy consumed by Chain
the reporting company
Scope 3 (Value Chain) Emissions Management
REPORTING COMPANY REPORTING COMPANY DOWNSTREAM ACTIVITIES
Avian Brands has begun the inventory of Scope 3 emissions, which include:
• Category 4: Upstream Transport and Distribution
Scope 3 Category 4 (Upstream Transportation and Distribution) emissions are calculated based on logistics activity data
from suppliers and distribution partners, which includes the type of transportation, type of fuel, distance traveled, and Upstream Downstream
Stationary Mobile Purchased
frequency of delivery. The type of gas emissions included in the greenhouse gas calculation is TonCO2 equivalent. Combustion Combustion Electricity
Trasnsportation Transportation
and Distribution and Distribution
• Category 9: Downstream Transport and Distribution
Scope 3 Category 9 (Downstream Transportation and Distribution) emissions are calculated from product distribution
activities to stores using data on diesel consumption, distance traveled, and delivery frequency. The type of gas emissions
included in the greenhouse gas calculation is TonCO2 equivalent.
• Category 11: Use of Sold Products Use of Sold
Product
Scope 3 Category 11 (Use of Sold Products) calculations are based on Avian Brands’ calculation of emissions generated
from the use of paint products by consumers, specifically Non-Methane Volatile Organic Compounds (NMVOC) emissions
released during the painting application process.
Reduction efforts are carried out through the Sustainable Procurement program, including supplier audits and the
implementation of sustainability criteria. The 2025 assessment results show:
• 47 local raw material suppliers meet 65.76% of sustainability aspects;
• 57 import suppliers meet 86.28% of sustainability aspects; and
• 27 packaging material suppliers meet 65.66% of sustainability aspects.
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2025 2024 2023
Air Emissions of Nitrogen Oxides (NOx),
Intensity of Scope 1 and Scope 2 17.21
KgCO2e/Ton of
23.26
KgCO2e/Ton of
24.45
KgCO2e/Ton of
Sulfur Oxides (SOx), and Other Significant
Air Emissions
Greenhouse Gas Emissions
Product Product Product
2025 2024 2023
As a manufacturing company operating in the chemical sector, Avian Brands recognizes that paint and coating manufacturing
Intensity of Scope 1 and Scope
2 Greenhouse Gas Emissions 0.0012 0.0015 0.0016 processes can generate conventional air emissions, including Nitrogen Oxides (NOx), Sulfur Oxides (SOx), particulates, and
compared to Revenue KgCO2e/IDR KgCO2e/IDR KgCO2e/IDR Volatile Organic Compounds (VOCs). These emissions, if not properly managed, may adversely affect air quality, public health,
and the balance of ecosystems.
As part of its environmental responsibility, Avian Brands implements an air emission management system that complies with
Further information regarding Scope 1, 2, and 3 emissions management data is provided in the ESG Performance Data table. industrial emission quality standards, as stipulated in East Java Governor Regulation No. 10 of 2009 Appendix I.X.
To ensure compliance with these regulations, Avian Brands implements the following strategic measures:
Continuous Monitoring and Evaluation 1. Implementation of air ventilation and filtration systems in manufacturing areas to capture dust and reduce exhaust
emissions from combustion processes;
Emissions monitoring covers all major operational facilities (Sidoarjo and Serang), with the following gases calculated: CO₂, CH₄, 2. Routine maintenance of manufacturing and combustion equipment to ensure process efficiency and prevent increases in
and N₂O. Emissions data is collected monthly through the Avian Portal ESG and Energy Performance Indicator (EnPi) systems NOx and SOx levels due to incomplete combustion;
to inform data-driven decision-making. With this strategy, Avian Brands reinforces its position as a paint and coatings industry 3. Use of low-sulfur and low-volatility fuels and solvents to reduce direct emissions from the production process; and
player committed to sustainable carbon management, in line with its vision of Net Zero Emissions 2050 and its contribution to 4. Periodic emission monitoring conducted by a laboratory accredited by the National Accreditation Committee (Komite
mitigating global climate change. Akreditasi Nasional/KAN) in accordance with the SNI ISO/IEC 17025 standard to ensure testing results are accurate and valid.
Monitoring results for the last 3 years are described below:
Emissions of Ozone Depleting Substances
Government
Parameter Unit Quality 2025 2024 2023
The ozone layer is vital in protecting life on Earth from To minimize environmental impact, Avian Brands has Standard
exposure to harmful ultraviolet (UV) radiation. However, implemented a policy of using ozone-friendly refrigerants
human activities involving the use of Ozone Depleting and cooling technologies, including: NOx mg/Nm3 650 31 4 10
Substances (ODS) such as refrigerants and propellant gases 1. Replacing all air conditioning units with R-410A type SOx mg/Nm3 150 38 25 44
pose a serious threat to the atmospheric balance. Damage to units, which are chlorine-free and have zero ozone * The quality standard value is adjusted to the East Java Governor Regulation No. No. 10 of 2009 Appendix I.X.
the ozone layer can accelerate global warming, reduce water depletion potential (ODP);
quality, and adversely affect human health and biodiversity. 2. Using non-CFC and non-Halon fire extinguishers, Emission monitoring results for 2025 show that NOx and SOx levels at Avian Brands’ manufacturing facilities fall below
resulting in no emissions that contribute to ozone the government-set environmental quality thresholds, with test results indicating safe, controlled emissions. These findings are
Recognizing this, Avian Brands is committed to supporting depletion; and concrete evidence of the effectiveness of sustainable environmental management systems implemented across all operational
the global ozone protection agenda as mandated by 3. Conducting regular monitoring of refrigerants lines of Avian Brands.
the Montreal Protocol and national regulations such as throughout all facilities to prevent leaks and ensure
the Minister of Environment and Forestry Regulation that refrigerant waste management is carried out in In addition to regulatory compliance, Avian Brands is also committed to continuous improvement through:
No. P.73/MENLHK/SETJEN/KUM.1/12/2019 concerning the accordance with environmentally friendly procedures. • Regular evaluation of emission monitoring data to identify upward or downward trends;
Control of Ozone Depleting Substances. • Use of energy-efficient technologies and clean combustion systems; and
Meanwhile, results from the evaluation of all manufacturing • Integration of monitoring results into the Avian Portal ESG system, as part of data transparency and data-driven decision-
As part of its environmental responsibility, Avian Brands has activities show that there is no use or discharge of ODS making.
conducted a comprehensive inventory of potential ODS use in the Avian Brands’ product manufacturing processes.
across all operational facilities, both in plant and office areas. This confirms that all manufacturing processes comply with Through this approach, Avian Brands not only strives to meet environmental compliance standards but also actively contributes
The analysis found that the potential use of ODS is limited applicable environmental standards and align with clean to maintaining air quality, minimizing the impact of climate change, and realizing low-emission and sustainable paint industry
to operational support equipment, namely air conditioning production principles. practices.
systems and fire extinguishers.
Through these preventive measures, Avian Brands strives not
only to comply with environmental regulations but also to
actively contribute to maintaining atmospheric balance and
strengthening global climate resilience. This commitment
is an integral part of its sustainability strategy to continue
adopting low-emission technologies and environmentally
friendly practices throughout its operational chain.
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GHG Management Budget Plan
To strengthen its environmental governance practices, 2. Reuse of Washing Solvent
Avian Brands also implements a Life Cycle Assessment (LCA) Washing solvent waste from the tank cleaning process
to identify and minimize environmental impacts across is reused as a raw material in the production of solvent-
the entire product life cycle, including post-production based paints.
Avian Brands has established a Greenhouse Gas (GHG) emissions management plan that is integrated with the 2030 ESG and waste management phases. This approach promotes 3. Reuse Sludge
Roadmap and Net Zero targets. The Company has allocated a specific budget for emissions mitigation initiatives, which include: increased resource efficiency, reduced waste generation, Sludge from water-based paint is reused in the same
1. Improving energy efficiency and replacing high-energy-intensity equipment, and optimized responsible reuse of materials. cycle to produce water-based paint.
2. Expanding on-site solar power generation capacity, and
3. Utilization of renewable electricity through cooperation with hydropower plants. The budget allocation is split between For hazardous waste that cannot be handled internally,
CAPEX for facility investments and OPEX for monitoring & maintenance programs. Hazardous Waste Management a system of collection, separation, and delivery to officially
licensed collection, transportation, processing, and utilization
Implementation and monitoring are carried out by the Energy Management System (EMS) Team collaboratively with the QAS In managing hazardous waste, Avian Brands implements partners is implemented. Avian Brands manages hazardous
Department, with direct support from top management. To ensure data accuracy, Avian Brands developed the Avian ESG various efficiency and reuse strategies based on the waste packaging returned by distributors comprehensively
Portal, which facilitates real-time monitoring, energy consumption data collection, and emissions reporting based on the GHG principles of Reduce, Reuse, and Recycle (3R). Several through cooperation with third-party waste transporters
Protocol standards. Key KPIs include tCO₂e reduction per year and energy intensity (kWh/unit of product). Evidence of budget internal initiatives to manage hazardous waste that have and managers licensed by the relevant authorities.
support and implementation results (PPA contracts, investment invoices, Avian ESG Portal monitoring reports) is stored for been implemented include: The entire transportation and processing are carried out
external verification and EcoVadis assessment purposes. 1. Reuse of Leftover Paints from Projects in accordance with the applicable licensing provisions and
Leftover paint from projects, resulting from damaged the hazardous waste manifest system. In addition, Avian
The Company has allocated a dedicated budget to develop programs that support the achievement of its GHG emission targets packaging, ordering errors, or other factors is sorted and Brands utilizes sludge from its manufacturing process as
for the 2025-2030 period. As of the end of 2025, the GHG budget allocation reached IDR 4,213.94 billion. reused. Paints that meet certain standards are used as a substitute for raw materials and as an alternative energy
alternative raw materials or reprocessed into products source, in cooperation with the cement industry and other
Year OPEX (million rupiah) CAPEX (million rupiah) Total with certain specifications, so that no leftover paints licensed third parties. This utilization supports the principle
from projects waste is discarded. of the cross-industry circular economy. The initiative to
2025 733.94 3,480.00 4,213.94 manage hazardous waste internally and externally shows
2026 880.73 4,176.00 5,056.73 that Avian Brands has achieved zero waste to landfill for the
2027 1,056.88 5,011.20 6,068.08 hazardous waste category.
2028 1,268.26 6,013.44 7,281.70
Information on hazardous waste generation and management is outlined in the table below. Further waste management data
2029 1,521.91 7,216.13 8,738.04 is available in the ESG Performance Data.
2030 1,826.29 8,659.36 10,485.65
Hazardous Waste Management
Type of Waste Unit 2025 2024 2023
Types of Generated Hazardous Waste
Waste Management and Utilization
Solid Ton 753.03 723.45 868.98
Liquid Ton 4,573.37 2,892.77 2,066.59
Total Hazardous Waste Ton 5,326.40 3,616.22 2,935.57
Avian Brands’ operations generate various types of waste, both solid and liquid, which are categorized as: hazardous and toxic Reuse of Hazardous Waste
waste; and non-hazardous waste. As part of the Company’s sustainability commitment, all waste is managed responsibly to Leftover Paints from Projects Ton 4,261.09 2,650.14 1,820.24
minimize potential adverse impacts on the environment, public health, soil and water quality, and air quality in the vicinity of Washing Solvent Ton 235.84 151.19 166.27
its operational areas.
Sludge Ton 119.90 80.95 62.29
Total Reuse of Hazardous Waste Ton 4,616.83 2,882.28 2,048.80
Avian Brands’ waste management complies with all applicable laws, regulations, and environmental licenses. With this
compliance, Avian Brands ensures that all waste is processed and disposed of within the permitted quality standards. Reporting Hazardous Waste Handed Over to Third Parties
on waste management performance is conducted regularly through the PROPER program of the Ministry of Environment Solid Ton 633.13 642.50 806.69
and Forestry of the Republic of Indonesia, as well as through the Green Industry Certificate (Sertifikat Industri Hijau/SIH) from Liquid Ton 76.44 91.44 80.08
the Ministry of Industry. This constitutes evidence and a commitment that waste management performance complies with Total Hazardous Waste Handed
applicable government regulations. Ton 709.57 733.94 886.77
Over to Third Parties
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Environmental Pillar
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PT Avia Avian Tbk
These efforts have yielded very positive results. In 2025, Avian Brands successfully avoided any incidents involving spills of
chemicals, oil, fuel, or other hazardous substances. This success indicates that there were no significant adverse impacts from
100%
Hazardous Waste Management by spills associated with Avian Brands› operational activities.
Responsible Third Parties
Household-type Waste Management Biodiversity
Throughout the reporting period, Avian Brands did not generate any non-hazardous waste. The waste generated was categorized
as household-type waste originating from office activities, canteen areas, operational facilities, and other supporting facilities.
Household-type waste management is carried out through both external and internal processes. None of Avian Brands’ operational areas is located near protected areas, conservation areas, or areas of high biodiversity.
Nevertheless, Avian Brands continues to demonstrate its commitment through Point 14 of its Product Quality and Environmental
For external waste management, Avian Brands collaborates with a waste management facility, namely the Temporary Waste Sustainability Policy, which states, “Undertaking efforts to protect and conserve biodiversity”. Initiatives undertaken by the
Disposal Area (TPS) 3R Wadungasih Berseri, based on an effective Memorandum of Understanding (MoU). Scope and term of Company include tree planting in conservation areas on the slopes of Mount Arjuno, mangrove planting in coastal areas, and
this cooperation agreement include transportation and management using a reduce, reuse, and recycle (3R) approach at TPS planting trees on the Company’s premises. In addition to supporting ecosystem protection, this program also contributes to
3R Wadungasih Berseri, meaning that Avian Brands does not dispose of waste at a final landfill (Tempat Pembuangan Akhir/ carbon emission absorption as part of the Company’s climate change mitigation strategy.
TPA), in line with the Company’s target of achieving zero waste to landfill.
Specifically, Avian Brands has also formed a Biodiversity Protection Team, a dedicated work unit with a key role in managing all
Meanwhile, internal management initiatives are carried out using the 3R approach within the Company’s internal temporary aspects related to environmental and biodiversity conservation. This team’s responsibilities include implementing programs in
waste management facility. accordance with sustainability policies, conducting program monitoring, and serving as a liaison between the Company and
external parties such as local farmer communities, environmental management agencies, and other stakeholders.
Total Household-Type Waste Processed Throughout 2025 Monitoring of tree planting activities is integrated through a digital platform called the “Avian Plant Digitalization Portal”.
Through this system, the Company, through the Biodiversity Protection Team, conducts real-time monitoring of various plant
species, planting locations, plant numbers, growth status, and plant information, including Latin names and potential benefits
Used Wood Pallets Plastic Waste
for each plant.
Reduce 1,084.41 tons Recycle 0.15 tons
(Pallets Repair, Creative Furniture) (Innovative plastic dustpan, Plastic Pots) Tree Planting in the Arjuno Mountain Slope Conservation Area
Paper Waste Used Uniform Tree planting on the slopes of Mount Arjuno has been
carried out since 2022, with numerous parties involved in
Recycle 0.34 tons Recycle 0.34 tons conservation areas since the early planning stages.
(Paper shredder for shipping protection, Waste Fabric Cloth
Used cardboard boxes for storage containers)
Organic Waste
Recycle 0.14 tons Recycle 3.85 tons
(Bio-Inoculum Plus Liquid Fertilizer) (Solid Fertilizer)
Avian Brands reuses 1,089.23 tons of household-type waste, demonstrating improved performance and the Company‘s
commitment to reducing its environmental footprint from operational activities. This achievement also reaffirms Avian Brands‘
commitment to environmental protection, supporting the circular economy, and maintaining the quality of life of communities
around its operational areas.
Information on household-type waste generation and further management thereof is available in the ESG Performance Data.
Spills of Chemicals, Oil, Fuel, and Other Hazardous Substances
The risk of spills of chemicals, oil, fuel, and other hazardous substances poses a threat to the quality of soil, water, air, public
health, and biodiversity. To address this risk, Avian Brands implements strict controls and procedures to effectively manage
high-risk materials.
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Performance
PT Avia Avian Tbk
Environmental Expenses
This program works in synergy with the Pasuruan Regency Mangrove Planting
Government to ensure that implementation is in accordance
with forest management policies and environmental In addition to planting in inland ecosystems, starting in
rehabilitation plans in the area. The Company also involves 2025, Avian Brands also expanded its biodiversity initiative
the Village Forest Management Institution (Lembaga As evidence of its sustainability commitment, Avian Brands allocates a dedicated budget to support the implementation of
by planting mangroves in the coastal area of Martajasah
Pengelola Hutan Desa/LPHD), the Jatiarjo Village farmer environmental management programs. This budget supports key activities such as waste management, emissions monitoring,
Beach, Bangkalan Regency. A total of 6,000 Rhizophora sp
group, and the Kampung Kopi Jatiarjo Camping Ground and environmental conservation initiatives. In 2025, environmental expenses amounted to 1,098 million rupiah. Changes
mangrove seedlings and 100 Sonneratia alba mangrove
Area Management Group, which are social institutions of in environmental management expenses do not automatically reflect environmental performance. Avian Brands focuses
seedlings were planted on 2.7 hectares of land, involving the
the communities that understand the characteristics of the on program effectiveness and cost optimization, including through operational efficiency and the implementation of best
local community, namely the Aman Sentosa Lestari Forest
conservation area. Avian Brands has also received an award practices in environmental management and greenhouse gas emission control.
Farmers Group of Martajasah Village, in collaboration with
from the LPHD of Jatiarjo Village for its reforestation and tree the Forestry Office of East Java Province and the Forestry
planting program in the conservation area on the slopes of and Plantation Office of Bangkalan Regency.
Mount Arjuno.
This mangrove planting is projected to sequester 287,751.00
To date, more than 15,000 trees have been planted across tons of CO₂e throughout its growth cycle, while serving as
20.3 hectares. The types of trees planted include trembesi
(samanea saman), akasia kurmis, banyan, and avocado.
a nature-based solution to climate change mitigation.
In addition to their carbon sequestration, mangroves also
Complaints on Environmental Issues
These tree species were chosen for their high carbon play a key role in preventing coastal erosion, improving
sequestration potential and resistance to the soil conditions coastal resilience, and maintaining the balance of water Avian Brands provides a complaint mechanism for all stakeholders affected or potentially affected by environmental issues
on the slopes, which help improve soil stability and prevent quality and sediment. arising from the Company’s operational activities, including but not limited to energy, emissions, water, waste and garbage,
erosion. This initiative has transformed the Arjuno mountain and other environmental indicators. Every incoming complaint will be recorded, verified, and professionally followed up
slope conservation area into a natural carbon sink with an From a biodiversity perspective, mangrove ecosystems are on in accordance with applicable procedures. In handling complaints, Avian Brands prioritizes open communication and
estimated carbon sequestration potential of 4,945.43 tons important habitats for various fauna species, namely the constructive dialogue with relevant parties, including through coordination with the community and local stakeholders. Based
of CO2e. In addition, Avian Brands, in collaboration with long-tailed macaque (Macaca fascicularis), the black egret on the Company’s records, no material or significant environmental complaints have been received in the last three years.
the Jatiarjo Village farmer group, continues to monitor the (Egretta ardesiaca), the white egret (Egretta garzetta), and
growth of the planted trees. Avian Brands replants trees the Asian swallow (Hirundo rustica). The species in these
that fail to grow due to climatic factors or other naturally mangrove ecosystems are listed in the IUCN Red List of
occurring conditions that inhibit growth. Threatened Species. Therefore, the presence and restoration
of mangroves contribute to species conservation efforts and
the protection of degraded natural habitats.
Tree Planting Programs within the
Company’s Premises
In addition to planting in conservation areas, Avian Brands
also carries out tree planting programs in green open spaces
around the premises of its plants and distribution centers
(TKTW). The types of trees planted include ornamental
plants, medicinal, and fruit trees. As of the end of 2025,
the Company has planted a total of 5,603 trees across its
plants and distribution centers, comprising 147 different
tree species.This program is estimated to contribute to
carbon sequestration of 413.18 tons of CO₂e.
More detailed information on the biodiversity program
is available in the Avian Brands Biodiversity Report,
accessible on the official Avian Brands website.
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PT Avia Avian Tbk PT Avia Avian Tbk People & Community Pillar Performance “Avian Brands believes that human resources and the surrounding community constitute the main foundation of its sustainability. Therefore, the Company consistently prioritizes a human-centered approach in every policy and operational activity, upholding the values of respect for human dignity, fairness, safety, and welfare. Through structured human resource management, strengthening an inclusive work culture, continuous competency development, and implementation of a comprehensive occupational health and safety system, Avian Brands is committed to creating a safe, fair, healthy, and productive work environment for all company personnel. This approach ensures that every individual has the space to optimize their growth, development, and contribution in supporting the Company’s performance. Simultaneously, Avian Brands expands its sustainability impact through community empowerment and implementation of integrated corporate social responsibility programs. Through its CSR programs and the ‘Avian Brands Peduli – Mewarnai Indonesia’ (Avian Brands Care – Coloring Indonesia) initiative, the Company acts as an active partner in social development, strengthening relationships with the community and creating sustainable shared value. With the synergy between internal human resource development and external social contributions, Avian Brands is building an inclusive and just sustainability ecosystem with a concrete impact on the lives of the community.” 108 2025 Sustainability Report 2025 Sustainability Report 109
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Key Performance Achievements of
Empowerment and Independence of Surrounding Communities
the People & Community Pillar in 2025
As part of its corporate social responsibility (CSR), Avian Brands is committed to making meaningful contributions to improving
the quality of life of communities surrounding its operational areas. Through various community development programs
designed based on the principles of ISO 26000: Guidance on Social Responsibility, Avian Brands strives to bring about
sustainable social impact and strengthen community independence.
The main focus of community empowerment activities includes local economic development, education and skills training,
environmental health improvement, and provision of basic infrastructure. Avian Brands also continues to develop partnership
models that are oriented towards long-term empowerment, as opposed to merely providing temporary assistance, enabling
the surrounding communities to grow alongside the Company in a sustainable manner.
100% of Avian Brands’ employees received competence A total of 264 Avian Brands Peduli CSR programs,
development programs with 125,554.50 training hours a 26.14% increase compared to 2024, reaching 106
Human Resources Management
in total, or 13.46 hours for each employee. regencies/cities across Indonesia.
Implemented 72 themes of sustainability-related A 1.23% decrease in the Total Recordable Injury Rate
training programs, with 3.989 training hours in total, (TRIR) among employees at Avian Brands plants Human Resources is a crucial element for Avian Brands Avian Brands is equipped with the Human Resources and
attended by 1.686 employees. compared to 2024. in supporting business sustainability and achieving its General Affairs (HRGA) department, dedicated to managing
vision, mission, and strategy. The Sustainability Policy, human resources. It fulfills two main functions: People and
particularly in the Social, Labor, and Human Rights pillar, Development & Recruitment, which focuses on meeting
Zero cases of human rights violations in the Avian Avian Brands successfully achieved its OHS performance reflects the Company’s commitment to supporting human manpower needs, talent development management, and
Brands environment. targets: Zero Fatality and Zero Accident. resource-related programs. Avian Brands’ approach to competence development; and Human Resource Operations
human resource management is based on the principles (HROps), which handles employment administration,
of fairness, inclusiveness, transparency, and meritocracy, as remuneration systems, and operational needs related to
well as compliance with applicable labor regulations. The human resources.
People & Community Pillar Performance
Company’s human resource management strategy focuses
on creating a safe, pleasant, motivating, and mutually Avian Brands’ human resource management is carried
respectful workplace capable of unlocking the full potential out professionally, as evidenced by relevant competence
of its employees. certificates, such as BNSP Certified Human Resource
Avian Brands believes that corporate sustainability is defined formulating needs-based training programs, and building
Manager (CHRM) and Assessment Center Assessor
not only by economic performance and product innovation, an objective and transparent performance evaluation system.
Certification (ACAC).
but also by the quality of human resources and harmonious
relations with the communities around its operational Various human resource development programs are carried
areas. These aspects constitute an essential foundation for out in a well-planned manner, from technical training to
ensuring inclusive, ethical, and sustainable business growth. leadership development, digital skills improvement, and HRGA
strengthening a performance-based culture. This approach
allows Avian Brands to ensure that equal opportunities
Resilient and Competent Human for every employee to grow alongside the Company and
Resources provide maximum contribution to the advancement of the
organization. POD & Recruitment HR Operations
Avian Brands places human resource management as
a strategic priority in achieving its vision and mission. The Beyond competence development, the Company also
Company is committed to building a workforce with high places great emphasis on employee welfare, health,
levels of competence, integrity, adaptability to change, and and occupational safety. It consistently implements
People Organization Personal Industrial HR Business
passion for innovation. ISO 45001-based Occupational Health and Safety Culture
Development Development
Recruitment
Administration
General Affair
Relation
HRIS
Partner
Management Systems to create a safe, healthy, and productive
Every Avian Brands employee is encouraged to pursue workplace. Avian Brands also continues to strengthen its
professional certification in their respective fields as a form of safety culture through socialization, regular training, and Avian Brands actively conducts periodic evaluations of all human resource management programs, aimed to ensure that every
recognition for competence and reliability. This is achieved by ongoing internal campaigns across all lines of operation. initiative and policy implemented is consistent with best practices in similar industries and is able to achieve predetermined
providing a range of structured and continuous training and
targets and objectives. One form of evaluation conducted was to review policy documents and formulate new SOPs related to
capacity-building programs. On the other hand, the adoption of equality, inclusivity,
human resource management. Throughout 2025, Avian Brands compiled and reviewed the effectiveness of a total of 30 SOPs,
and non-discrimination principles is an integral part of the
Avian Brands has established the People and Development Company’s labor policy. Avian Brands guarantees equal 19 standards, and 23 forms.
(POD) Department, dedicated to employee talent opportunities for all employees irrespective of gender, age, or
development and career management. This department plays background, and ensures a work environment that promotes
a key role in designing competence development strategies, mutual respect and supports work-life balance.
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PT Avia Avian Tbk
Diversity and Equality
Total Employees by Gender and Workers’ Status**
2024 2023
Avian Brands upholds the principles of diversity and equality in the workplace. The Company is committed to providing fair Male % Female % Male % Female %
employment opportunities and equal treatment regardless of gender, race, religion, color, ethnicity, class, or disability status. Full-time Employees 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32
This commitment also encompasses efforts to promote gender equality and women’s empowerment at all organizational
Total 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32
levels, including leadership and decision-making positions.
Implementation of this commitment is reflected in the anti-discrimination policy outlined in the Business Ethics and Code of
Male / % Female / %
Conduct, and reinforced through policies and Standard Operating Procedures (SOPs) on Anti-Discrimination. These policies
apply to all stages of human resource management, from recruitment, competence development, and performance appraisal
to career progression and employee rights.
Avian Brands’ implementation of diversity and equality principles is also evident in its workforce composition, which reflects
a variety of genders, ages, educational backgrounds, and roles within the organization. Avian Brands also ensures an inclusive 7,160 / 76.74% 2025 2,170 / 23.26%
workplace by providing various support facilities such as lactation rooms, accessibility for persons with disabilities, and holistic Total 7,160 / 76.74% Total 2,170 / 23.26%
health services accessible to all employees.
As part of this commitment, the Company strictly prohibits all forms of discrimination, harassment, and bullying in any form.
Avian Brands adheres to the belief that diversity is a valuable asset in creating a respectful, collaborative, and innovative work Male
culture, where every individual is given the opportunity to contribute and develop to their full potential.
Information regarding diversity and equality through employee demographics is outlined as follows:
Total Employees by Gender and Education Level
Employee Demography 2024 2023
Male % Female % Male % Female %
Total Employees by Gender and Employment Status Master’s Degree 19 54.29 16 45.71 20 63.33 12 36.67
Bachelor’s Degree 1,241 64.30 689 35.70 1,229 67.10 601 32.90
2024 2023
Diploma (D3) 195 60.56 127 39.44 188 62.79 112 37.21
Male % Female % Male % Female %
≤High School and Equivalent 5,758 81.82 1,279 18.18 5,321 84.19 999 15.81
Total 7,213 73.36 2,111 22.64 6,759 79.67 1,724 20.33
Permanent Employees 972 70.28 411 29.72 1,002 71.88 392 28.12
Non-Permanent Employees 169 60.36 111 39.64 128 57.92 93 42.08
Outsourced 6,072 79.28 1,587 20.72 5,629 81.96 1,239 18.04 Male / % Female / %
Total 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32
25 / 59.52% 17 / 40.48%
Male / % Female / % 1,244 / 62.51% 746 / 37.49%
195 / 60.75% 2025 126 / 39.25%
5,696 / 81.64% 1,281 / 18.36%
Total 7,160 / 76.74% Total 2,170 / 23.26%
900 / 69.88% 388 / 30.12%
199 / 57.85% 2025 145 / 42.15%
6,061 / 78.73% 1,637 / 21.27%
Total 7,160 / 76.74% Total 2,170 / 23.26%
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Performance
PT Avia Avian Tbk
Total Employees by Gender and Age Total Employee Positions Held by Male and Female Employees by Age in 2025
2024 2023 Level of Position*
Age Range Entry-level Mid-level Senior-level Executive-level Total
Male % Female % Male % Female %
Male Female Male Female Male Female Male Female
18–24 Years Old 1,143 71.35 459 28.65 1,109 75.34 363 24.66
18–24 Years Old 284 21 6 1 0 0 0 0 312
25–34 Years Old 3,709 76.49 1,140 23.51 3,428 78.80 922 21.20
25–34 Years Old 1,554 427 53 26 47 6 0 0 2,113
35–44 Years Old 1,840 81.92 406 18.08 1,744 83.05 356 16.95
35–44 Years Old 2,899 1,040 158 133 107 22 4 1 4,364
45–54 Years Old 460 82.44 98 17.56 430 84.48 79 15.52
45–54 Years Old 1,460 376 183 74 54 7 13 1 2,168
>55 Years Old 61 91.04 6 8.96 48 92.31 4 7.69
>55 Years Old 252 20 73 13 9 2 4 0 373
Total 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32
Male / % Female / % Implementation of Gender Equality
1,015 / 72.71% 381 / 27.29% Avian Brands is committed to ensuring that diversity and gender equality principles are consistently implemented in all aspects
of human resource management. Beyond recruitment and competence development, implementation of these principles
3,694 / 74.94% 1,235 / 59.52%
extends to promotion opportunities and strategic positioning across all organizational levels.
1,882 / 81.19% 2025 436 / 18.81%
500 / 81.70% 112 / 18.39% Avian Brands implements gender equality at all employee levels, from staff to leadership roles and decision-making positions.
69 / 92.00% 6 / 8.00% Avian Brands is committed to providing equal opportunities for female employees to contribute at the managerial and
Total 7,160 / 76.74% Total 2,170 / 76.74% strategic levels through leadership development programs, non-discrimination policies, and performance- and competence-
based promotion systems. As of the end of 2025, women’s representation at the Manager and Deputy Director levels within
AVIA, TKTW, and TKBI reached 38 individuals, or 14.02% of the total employees at those levels.
Total Employees by Gender and Position Female Employee Involvement at Manager and Deputy Director Levels
2024 2023
Male % Female % Male % Female %
Director / Executive-level 5 83.33 1 16.67 5 83.33 1 16.67 2025 2024 2023
Deputy Director / Executive-level 16 94.12 1 5.88 16 94.12 1 5.88
Manager / Senior-level 218 84.82 39 15.19 207 85.19 36 14.81
Supervisor / Mid-level 487 67.45 235 32.55 454 69.31 201 30.69
38 out of 271 40 out of 274 37 out of 260
Staff / Entry-level 415 62.78 246 37.22 448 64.55 246 35.45
Employees Employees Employees
Outsourced / Entry-level 6,072 79.28 1,587 20.72 5,629 81.96 1,239 18.04
Total 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32
Male / % Female / % Empowerment of Workers from Local Communities
5 / 83.33% 1 / 16.67% Avian Brands is committed to involving workers from the local communities in its organizational structure. In this context,
16 / 94.12% 1 / 5.88% local communities refer to Indonesian citizens from the operational areas of each business unit. As of the end of the reporting
period, 90.18% of employees are from local communities. Meanwhile, 100% of senior management are from local communities,
217 / 85.43% 37 / 14.57%
2025 in accordance with the stipulated limit. This reflects Avian Brands’ efforts to empower local human resources and strengthen
473 / 65.69% 247 / 34.81% relationships with surrounding communities.
420 / 62.13% 256 / 37.87%
6,029 / 78.74% 1,628 / 21.26%
Total 7,160 / 76.74% Total 2,170 / 76.74%
Notes:
* AVIA, TKTW, and TKBI.
** All AVIA, TKTW and TKBI employees are full-time employees and therefore there are no part-time employees.
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Information regarding the involvement of employees from local communities in Avian Brands’ operational activities is described Recruitment of Permanent Employees by Gender 2024* 2023*
as follows:
Total % Total %
Description Unit 2025 2024 2023 Male 135 65.53 167 67.89
Total Local Employees Individual 8,414 8,387 7,577 2025 Female 71 34.47 79 32.11
Total Employees Individual 9,330 9,316 8,477 Total Total 206 100.00 246 100.00
Percentage of Local Employees % 90,18 90,03 89,38 106
100.00%
Percentage of senior management employees who are from local
% 100% 100% 100%
communities
Notes:
* AVIA, TKTW, and TKBI. 79 / 74.53% 27 / 25.47%
Employee Recruitment and Turnover Recruitment of Permanent Employees by Operational Area
In line with the implementation of diversity and equality meet the needs for workforce aligned with the growth of AVIA 2024* 2023*
principles, Avian Brands constantly conducts the entire the organization. By bringing in external recruitment, Avian
13 / 12.26% 20 / 18.87%
recruitment process transparently and free from any Brands is able to attract new talents suited to its needs and Total % Total %
discrimination, and no recruitment fee or gender-specific standards. Both recruitment processes are part of Avian
Surabaya 19 9.22 31 12.60
criteria are applied in the candidate selection. Recruitment Brands’ efforts to attract employees with the highest level of
process is selective, focusing on compatibility between job competence and quality. 2025 Sidoarjo 32 15.53 30 12.20
qualifications and candidates’ competence. All qualified Total Serang 13 6.31 10 4.07
candidates will be given the opportunity to participate in As of the end of 2025, the total number of permanent AVIA, 63
59.43%
the recruitment process, through e-recruitment on Avian TKTW, and TKBI employees successfully recruited amounted
Brands’ website or Avian Brands’ talent pool programs. to 106 individuals or 8.23% of total permanent employees,
a decrease compared to the previous year of 206 individuals.
Other recruitment programs developed include internal This was mainly influenced by the Company’s greater focus 30 / 28.30%
and external recruitment. Internal recruitment includes on a more selective and measured workforce planning
promotions, mutations, and rotations for permanent strategy, with an emphasis on employee retention and
TKTW & TKBI 2024* 2023*
employee level. Employee mutation and rotation processes internal talent development to support organizational
are based on employee performance evaluation results for sustainability. Meanwhile, the total number of outgoing
the intended position. Promotions, in particular, are based on permanent AVIA, TKTW, and TKBI employees amounted to Total % Total %
superior’s assessment as well as a series of other assessments 180 individuals or 13.98% of total permanent employees, Area 1A North 6 2.91 13 5.29
that measure an employee’s potential and performance. a decrease compared to the previous year of 218 individuals. Sumatera
2025
On the other hand, external recruitment is conducted to This reflects the effectiveness of more optimal employee Area 1B South 8 3.88 15 6.10
Total
retention and human resource management strategies. Sumatera
43
40.57% Area 2 2 0.97 6 2.44
The following infographic presents information on employee recruitment and turnover. Jabodetabekser
Area 3 West Java 7 3.40 11 4.47
Area 4 Central Java 15 7.28 8 3.25
Recruitment of Permanent Employees
Area 5 East Java 58 28.16 46 18.70
2 / 1.89% 15 / 14.15%
Area 6 Sulawesi 22 10.68 16 6.50
Recruitment of Permanent Employees By Age 2024* 2023* 4 / 3.77% 6 / 5.66%
Area 7 Kalimantan 12 5.83 22 8.94
2 / 1.89% 3 / 2.83%
0 / 0,00% 0 / 0,00% Area 8 Eastern 12 5.83 36 14.63
Total % Total % 3 / 2.83% 5 / 4.72% Indonesia
>50 Years Old 2 0.97 0 0 3 / 2.83%
2025 36-50 Years Old 45 21.84 209 84.96
Total 18-35 Years Old 159 77.18 37 15.04 Total 106 100.00 246 100.00
106 <18 Years Old 0 0 0 0
100.00%
Total 206 100.00 246 100.00
96 / 90.57% 10 / 9.43%
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TKTW & TKBI 2024* 2023*
Employee Turnover
Total % Total %
Area 1A North 12 5.50 5 3.82
Sumatera
Turnover of Permanent Employees by Age 2024* 2023*
2025
Area 1B South 13 5.96 11 8.40
Total
Sumatera
6 / 3.33% 72 / 40.00% 107
Total % Total % 59.44% Area 2 8 3.67 7 5.34
Jabodetabekser
>50 Years Old 16 7.34 11 8.40
Area 3 West Java 10 4.59 9 6.87
2025 36-50 Years Old 94 43.12 45 34.35
Area 4 Central Java 20 9.17 7 5.34
Total 18-35 Years Old 108 49.54 75 57.25
180 Area 5 East Java 38 17.43 15 11.45
<18 Years Old 0 0 0 0
100.00% 5 / 2.78% 33 / 18.33%
Area 6 Sulawesi 24 11.01 14 10.69
Total 218 100.00 131 100.00
7 / 3.89% 11 / 6.11%
Area 7 Kalimantan 21 9.63 17 12.98
8 / 4.44% 4 / 2.22%
Area 8 Eastern 15 6.88 19 14.50
102 / 56.67% 10 / 5.56% 13 / 7.22% Indonesia
16 / 8.89% Total 218 100.00 131 100
Turnover of Permanent Employees by Gender 2024* 2023*
130 / 72.22%
Total % Total % Turnover of Permanent Employees by Reason 2024* 2023*
Male 162 74.31 100 76.34 114 / 63.33% 44 / 24.44%
2025 Female 56 25.69 31 23.66 Total % Total %
Total Total 218 100.00 131 100.00 Retirement 5 2.29 7 5.34
180
100.00% 2025 Resignation 94 43.12 73 55.73
Total Termination of 81 37.16 42 32.06
180 Employment
100.00%
Death 0 0 3 2.29
50 / 27.78%
Change in 38 17.43 6 4.58
Employment Status
22 / 12.22% Total 218 100.00 131 100.00
Turnover of Permanent Employees by Operational Area
AVIA 2024* 2023*
Turnover of Permanent Employees by Position 2024* 2023*
13 / 7.22% 11 / 6.11%
Total % Total % 65 / 36.11% 26 / 14.44%
Surabaya 4 2.08 6 4.58 Total % Total %
2025 Sidoarjo 18 9.38 15 11.45 Deputy Director 1 0.46 0 0
Total Serang 9 4.69 6 4.58 2025 Manager 33 15.14 19 14.50
73 Total Manager 128 58.72 83 63.36
40.56% 180
Staff 56 25.69 29 22.14
100.00%
Total 218 100.00 131 100.00
49 / 27.22%
89 / 49.44%
Notes:
* AVIA, TKTW, and TKBI.
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Employee Competence Development
Avian Brands is committed to fostering a supportive work environment and promoting employee capacity building to enable All training programs are evaluated periodically through pre-tests and post-tests, participant satisfaction surveys, and
them to develop and reach their full potential. To this end, the Company allocates an annual training budget and develops competence improvement monitoring. Through these programs, Avian Brands ensures that 100% of its employees have
various competency framework-based learning programs covering basic, technical, non-technical, leadership, and certification participated in competence development programs and that every employee is given equal growth opportunities, thereby
training. In conducting its employee development programs, Avian Brands collaborates with Tancorp in providing modules, directly contributing to the Company’s overall performance.
qualified trainers, and organizing training activities. The series of training programs organized by Avian Brands include:
In addition to technical and non-technical skills training, Avian Brands consistently internalizes the CInTA corporate values
through various internal communication media, such as the Avian Newsletter and educational videos regularly shared
Basic Training with employees. The Avian Newsletter platform also contains the latest corporate updates, such as new product launches,
CSR activities, safety campaigns, company achievements, and other internal information.
Mandatory training for all employees, such as trainings on Corporate Values (CINTA), GCG, Code of
Conduct, and so on. Overall, in 2025, 207 development programs have been conducted, involving 100% of Avian Brands employees. Information
about employee development programs, including training themes, number of participants, and training hours, is presented
below.
Technical Training
Average Training Hours of Employees
Training aimed at improving employee’s technical capabilities, to enhance their skills and performance in
2025* 2024* 2023*
line with Avian Brands’ needs.
Average Average Average
Description Total Total Total
Total Training Total Training Total Training
Training Training Training
Employees Hours per Employees Hours per Employees Hours per
Hours Hours Hours
Non-technical Training Employee Employee Employee
Average Training Hours by Gender
Training to improve employees’ non-technical skills, such as effective communication, creative and critical Male 7,160 94,645.75 13.22 7,208 113,673.25 15.77 6,754 104,540.97 15.48
thinking, team building, and other skills related to individual personality capacity.
Female 2,170 30,908.75 14.24 2,108 30,855.50 14.64 1,723 23,737.21 13.78
Total 9,330 125,554.50 13.46 9,316 144,528.75 15.51 8,477 128,278.18 15.13
Leadership Program Average Training Hours by Position
Deputy
17 90.00 5.29 17 133.00 7.82 17 107.50 6.32
Director
Program aimed at preparing employees to become leaders through a leadership ladder program.
Manager 254 4,497 17.70 257 5,442.50 21.18 243 6,235.35 25.66
Supervisor 720 10,698.75 14.86 722 12,848.75 17.80 655 18,008.25 27.49
Staff 8,333 110,262.75 13.23 8,320 126,104.50 15.16 7,562 103,927.08 13.74
Certification and Standardization Training
Total 9,324 125,554.50 13.47 9,316 144,528.75 15.51 8,477 128,278.18 15.13
Training to ensure employees’ technical and specialized skills are standardized according to their job Notes:
* AVIA, TKTW, and TKBI.
functions.
One of the capacity building facilities available to all employees is the digital learning platform of Learning Management
System (LMS), through which employees can access training modules, policy socialization, and internal courses anytime and
anywhere. As of 2025, Avian Brands has provided 15 new digital learning modules and recorded a total of 6.673 accesses by
employees from various departments.
Apart from digital learning, the Company also employs other development methods such as on-the-job training, knowledge
sharing, coaching, and face-to-face training for technical and non-technical skills. To improve leadership skills, Avian Brands
also organizes dedicated training programs for employees at the supervisor and manager levels to equip them with decision-
making, team management, performance management, and leadership skills.
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Average Training Hours of the Board of Commissioners and the Board of Directors of AVIA
Number of Total
No. Training Theme Participants Training
2025 2024 2023 (Individual) Hours
Average Average Average
Position Total Training Total Training Total Training 6 Fire Safety Equipment (APAR) Awareness in Serang Plant 13 26
Participants Hours per Participants Hours per Participants Hours per 7 Integrated ISO Awareness (ISO 9001, 14001, 45001, 50001) 41 82
Member Member Member
8 Basic Life Support 2 4
The Board of 1 7.00 2 8.75 9 Community Development 1 16
3 4.33
Commissioners
10 ESG Disclosure: The Role of the Corporate Secretary in Submitting ESG Metrics through SPE-IDXnet 1 2
The Board of 5 9.90 5 36.70
5 16.1 11 Forklift Academy 2 4
Directors
Total 8 11.69 6 9.07 7 28.71 12 General Safety Meeting - HIRADC Socialization 7 14
13 Halal Bihalal and Sharing Session Form E020: ESG & GHG Emissions Strategy for Listed Company 1 5,5
Executives.
Cost of Implementing Employee Competence Development 14 ISO 31000 Risk Management 25 400
15 Acute Respiratory Infection: Impact and Prevention Efforts in the Workplace 2 2
16 ISSB: Applying the IFRS Sustainability Disclosure Standards 1 3,5
2024*
17 K3 Awareness 72 144
2025* 2023* 18 OHS for Welding Specialists 1 40
19 Life Cycle Assessment Calculation Expertise (Keahlian Perhitungan Life Cycle Assessment/KPLCA) 1 34
20 Mental Health: Recognizing Signs of Stress and Burnout at Work 107 214
942.12 2,081.47 2,686.95
21 Public Issuers’ Readiness and Optimization of POJK 14 of 2025 1 6,5
22 Company Readiness in Facing Global Market Volatility: Investor Relations and Corporate Secretary 1 2
Million Rupiah Million Rupiah Million Rupiah Perspectives.
23 Hazardous Waste Management 52 104
Notes: 24 Choosing the Right Contraceptives for Men and Women 19 38
* AVIA, TKTW, and TKBI..
25 Navigating ESG Challenges through Strengthening Good Corporate Governance Policies 1 2
26 How to Maintain the Immune System During the Rainy Season 56 56
Competence Development Related to Sustainability 27 Forklift Operators 1 21
28 P3K Awareness 11 22
Internalizing sustainability values is a key focus for Avian Brands to ensure that all employees have a shared understanding
of sustainability issues and are able to implement them in their day-to-day duties. This represents a long-term investment by 29 Persons Responsible for Air Pollution Control 1 21
the Company in employee competence development, carried out through collaboration between the People & Organization 30 Prevention of Dengue Fever in the Workplace 25 50
Development (POD) Department and the QA & Sustainability Department, as a dedicated unit tasked with managing Avian 31 Prevention of Urinary Tract Infections (UTIs) 57 114
Brands’ sustainability agenda. 32 In-depth Discussion of Regulations on the Use of Public Accountant and/or Public Accounting Firm 2 4
Services in Financial Services Activities (POJK No. 9 of 2023 and SEOJK No. 18/SEOJK.03/2023)
A new program launched in 2025 is the Sustainability Awareness Training, conducted periodically for staff, supervisors, and 33 In-depth Discussion of POJK No. 14/POJK.04/2022 concerning Submission of Periodic Financial 2 5
managers. It covers basic understanding of ESG and sustainability, the Company’s sustainability performance, benchmarking Reports of Issuers or Public Companies
against industry best practices, and the role of each unit/department in helping Avian Brands achieve its sustainability targets. 34 In-depth Discussion of POJK No. 29/POJK.04/2016 & POJK No. 51/POJK.03/2017 2 5
Through this training, employees are expected to understand sustainability concepts theoretically, as well as be able to 35 In-depth Discussion of POJK No. 14/POJK.04/2019 concerning Increase in Capital of Public 2 4
integrate them into their workflows, decision-making, and continuous improvement initiatives in their respective units. Companies through Rights Issue
36 In-depth Discussion of POJK No. 29 of 2023 concerning Buyback of Shares Issued by Public 1 2
As of 2025, Avian Brands has provided sustainability-related training to 1,686 participants, or equal to 18.07% of the total Companies;
number of AVIA, TKTW, and TKBI employees. Overall, the training covers 72 training themes, with a total of 3.989 training hours. 37 In-depth Discussion of POJK 4 of 2024 concerning Reports on Ownership of, or Any Change of 2 4
A summary of the training activities is presented in the following table: Ownership of, Shares in Public Companies and Reports on the Activities of Encumbering Public
Company Shares
38 Implementation and Understanding of POJK No. 14 of 2025 concerning e-GMS, e-OM, and 2 3
Number of Total e-SUGMS
No. Training Theme Participants Training
39 Life Cycle Assessment Data Collection (Pengambilan Data Life Cycle Assessment/PPLCA) 1 34
(Individual) Hours
40 The Effect of Chemical Exposure on Employees’ Health 38 76
1 5R (Ringkas, Rapi, Resik, Rawat, Rajin) 52 104
41 Meal and medication arrangements during Ramadan fasting 31 62
2 5R and Waste Management 78 156
42 Proper use of PPE to prevent Job-related Illnesses 23 46
3 8 Waste 108 216
4 A Risk-Based Approach to ESG: Building Resilient, Responsible Businesses 1 1,5
5 Fire Safety Equipment (APAR) Awareness 84 252
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No. Training Theme
Number of
Participants
Total
Training Continuous Improvement Program
(Individual) Hours
43 Capacity Building for OHS Teams and Medical Personnel in Companies in Efforts to Provide Health 1 3 As part of its commitment to fostering innovation and operational sustainability, Avian Brands has implemented a culture of
Services for Pregnant Employees continuous improvement through its Continuous Improvement Program, known internally as the Quality Control Group
44 Heart Diseases 61 122 (Gugus Kendali Mutu/GKM). This program serves as a formal platform for all employees to contribute to improving process
45 Sexually Transmitted Diseases 40 80 quality, operational efficiency, and the implementation of environmentally friendly practices throughout the production chain.
46 IDX Regulation No. II-Q concerning Liquidity Provider Activities on the Exchange, and Exchange 2 4
Regulation No. III-Q concerning Liquidity Providers on the Exchange The GKM adopts a bottom-up approach, encouraging employees to take active roles in identifying opportunities for
improvement in their respective work areas. Thus, every innovation generated is not only operationally relevant, but also
47 Regulation I-E concerning the Obligation of Information Disclosure by Listed Companies 2 5
aligned with actual conditions on the ground and directly impacts productivity improvement and reduction of operational
48 Chemical OHS Officer 1 48
and environmental risks.
49 Plant Hygiene Program 293 618
50 Refreshment P3K 43 120 Avian Brands’ GKM program covers two main categories:
51 Risk & Governance Summit 2025 2 13 1. Internal Improvement Initiative (I3)
52 Safety BA Tank 14 42 A group-based program that involves cross-functional or inter-departmental collaboration to develop solutions for system
improvements, process efficiency, process digitization, energy optimization, waste reduction, and improvements in
53 Capital Market Dialogue Seminar: Seizing Opportunities Amid Global Policy Shifts 1 3
occupational safety and health; serta
54 2025 Issuer Seminar: Navigating Global Dynamics: The Resilience of Indonesia’s Economic and 1 3
Financial System
2. Suggestion System (SS)
A program for individuals to submit their suggestions, aimed at providing a space for employees to convey practical ideas
55 Socialization of Hazardous Material Handling and Emergency Response to Spills 14 28
that can be immediately implemented and produce tangible benefits such as quality improvement, resource savings, or
56 Socialization for Securities Issuers on the Use of eASY and Issuer-related Facilities at KSEI 2 3 process simplification.
57 Socialization on Ergonomic Health Disorders 30 60
58 Socialization on Mandiri Inhealth 104 178,5 All GKM ideas and suggestions are submitted through the Avian Portal digital system, which allows for evaluation, verification,
59 Socialization for Normal Nutritional Status 20 30 implementation, and monitoring of results to be carried out in a transparent and structured manner. Proposals that are proven
60 Socialization of POJK No. 45 of 2024 concerning the Development and Strengthening of Issuers 2 4
to provide significant added value are appreciated in the form of formal recognition and incentives.
and Public Companies
61 Socialization of POJK No. 14 of 2025 2 4
In 2025, a total of 938 employee-initiated programs were successfully implemented, contributing to operational efficiency,
with this figure showing an increase of 25.23%. As of 2025, this initiative has been running for 13 years.
62 Socialization of POJK No. 45 of 2024 concerning the Development and Strengthening of Issuers 2 5
and Public Companies
63 Socialization of POJK No. 9 of 2025 concerning the Dematerialization of Equity Securities and the 2 5
Management of Unclaimed Assets in the Capital Market
64 Socialization on Sustainability Programs 63 142,5
65 Socialization on Safety Driving 40 40
66 Socialization of SEOJK No. 10/SEOJK.04/2025 2 4
67 Manufacturing Industry Transformation: From ESG Compliance to Energy Efficiency & Digitalization 2 4
68 IDX-S&P Global Webinar: Value and Benefits of 2025 S&P Global Corporate Sustainability 2 4 Quality Control Circles Suggestion System (SS)
Assessment (CSA)
(Gugus Kendali Mutu/GKM)
69 Refresher Webinar on POJK No. 15/POJK.04/2022 and POJK No. 29 of 2023 for Public Company 2 5
70
Issuers
ESG Reporting Socialization Webinar 2 3 19 919
71 Webinar on Sustainable Landscape of Indonesia’s Capital Market 1 2
72 Zero Accidents in the Manufacturing Industry 2 4
Avian Brands’ Board of Commissioners and Board of Directors are also committed to actively implementing ESG and
sustainability principles through routine competence development activities held annually. In accordance with the Board
of Commissioners Charter and the Board of Directors Charter, Avian Brands has mandated that both organs refresh their
knowledge and competence related to current developments in sustainability, economics, finance, industry, and regulations
relevant to ESG implementation and the Company’s business activities.
Information regarding the competence development of the Board of Commissioners and Board of Directors is presented in full
in the Avian Brands 2025 Annual Report.
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External Human Resources Development Performance Evaluation
As part of its commitment to building sustainability on a broader scale, Avian Brands focuses not only on improving Avian Brands conducts periodic employee performance evaluations as part of its efforts to maintain and improve the quality
the competence of its internal human resources but also on organizing capacity building for external stakeholders. In this of its human resources. The Company has established a policy on performance evaluation, which includes standardized
regard, the Company actively involves its partners in socializing sustainability commitments and standards, while also annual employee performance evaluation forms. The Human Resources Department, as the primary organ responsible for
developing future talent through programs such as internships as part of its talent pipeline strategy. this task, collaborates with each unit’s head to conduct performance evaluations that provide a comprehensive overview
1. Training for Business Partners of core competencies in line with CInTA values, as well as general competencies that include assessments of accountability,
Avian Brands also provides Sustainability Awareness training for vendors and business partners, including suppliers problem-solving, work resilience, and work presence.
and distributors. This initiative is part of its commitment to increasing external stakeholders’ capacity and supporting
responsible business practices throughout the supply chain (sustainable procurement). Through this program, business Performance evaluations are conducted by considering each employee’s position, responsibilities, and duties. Performance
partners are provided with an understanding of the Company’s sustainability policies, as well as the compliance obligations assessments for outsourced employees are fully managed by partner companies that employ them, but still adhere to
that must be satisfied in the course of cooperation. Further information regarding policies and program that support the the standards set by Avian Brands.
implementation of sustainable procurement is available in the Sustainable Procurement Practices sub-section.
2. Student Internship Program Avian Brands utilizes the 9 Grid Box Method, an instrument for measuring employee potential and performance. This approach
In addition to providing capacity building for business partners, Avian Brands also contributes to talent development enables Avian Brands to design appropriate development programs related to promotions, employee career development,
through internship programs for vocational school and university students. This program is implemented as a form of and succession planning, thereby ensuring that each employee develops in accordance with their potential and performance.
support to improve human resource quality and align their competence with industry requirements. Avian Brands
participates in the Certified Internship and Independent Study Program (Magang dan Studi Independen Bersertifikat/MSIB)
from the Ministry of Education and Culture of the Republic of Indonesia, as well as the MagangHub Program from the Types of Employee Performance Evaluation
Ministry of Manpower. During the 16-24 week period, interns are involved in projects related to their field of study and
receive direct mentorship from Avian Brands’ professional staff. Through the internship program, participants gain practical
experience and understanding of the workplace, as well as improve their technical and non-technical competence in
preparation for entering the workforce.
As part of its efforts to manage employee competence development, the Human Resources Department regularly evaluates
the effectiveness of all employee competence development programs. This evaluation aims to identify areas that are in
need of improvement so that every program development plan remains relevant, adaptive, and in line with the needs of the
organization and industry dynamics. strategic instruments in building long-term organizational capabilities.
Competence Matrix Performance Appraisal Assessment
The process of measuring The process of measuring The process of measuring potential
technical competence fulfillment competence fulfillment to support and performance, carried out
and development plans to support job functions, which includes periodically using assessment
technical job functions. performance achievement, instruments as a consideration for
work culture (CInTA), general promotion and talent mapping.
competence, work ethics, and
leadership.
Employee Performance Awards
As of the end of 2025, 100% of Avian Brands employees have undergone annual performance evaluations. Avian Brands rewards
its highest-performing employees with special awards as a token of appreciation for their contributions to the Company.
The “Best Employee” performance award is a form of encouragement that motivates other employees to keep improving
the quality and productivity of their work. Another form of recognition is given through the Continuous Improvement Program
(CIP). Awards include financial and non-financial incentives, including career development programs.
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Remuneration
Avian Brands has established a remuneration policy as the basis for providing fair and competitive remuneration to motivate, Overall, the lowest wages received by Avian Brands employees in 2025 are higher than the regional minimum wage (UMK)
retain, and develop talent at all organizational levels. Remuneration structure includes base salary, allowances, and incentives requirements. Avian Brands also ensures that its partners that provide outsourced employees, adhere to wage standards in
determined based on position, individual and unit performance, and alignment with industry standards. accordance with UMK requirements. In this regard, Avian Brands guarantees that 100% of basic wage provided, is above the
applicable UMK threshold.
Provisions regarding employee remuneration are stipulated in the Collective Labor Agreement (Perjanjian Kerja Bersama/
PKB), Company Regulations, and Avian Brands Sustainability Policy. All remuneration policies are periodically monitored Comparison of AVIA Employee Wages of the Lowest Level to the Regional Minimum Wage (UMK)
and evaluated by the Nomination and Remuneration Committee, including the nomination and remuneration policies
and procedures for the Board of Commissioners and Board of Directors, to ensure the implementation of Good Corporate
Governance principles. Ratio of Lowest Wage of
Lowest Wage of
Regional Minimum Wage Permanent Employee to
Operational Areas Permanent Employee
More detailed information regarding Avian Brands’ remuneration policies, structure, and implementation is presented in the (IDR) Regional Minimum Wage
(IDR)
(%)
Avian Brands 2025 Annual Report.
Surabaya 5,300,000 4,961,753 106.82
GENERAL MEETING OF SHAREHOLDERS Sidoarjo 5,187,094 4,870,511 106.50
Serang 5,024,000 4,857,353 103.43
BOARD OF COMMISSIONERS
1:1
Comparison of Salaries of Male and Female Employees
at the Same Level of Position
In addition to base salary, Avian Brands also provides allowances and annual bonuses for all employees, both permanent and
fixed-term. Remuneration is evaluated periodically, taking into account opportunities for improvement and the state of the
Company’s business. Information regarding the benefits received by employees is outlined below:
HERMANTO TANOKO MOHAMMAD NOOR RACHMAN SOEJOETI
Benefits Received by Avian Brands’ Employees
President Commissioner Independent Commissioner
Benefits Permanent Employees Fixed-term Employees
NOMINATION AND REMUNERATION COMMITTEE
Base Salary
Employment Social Security
Healthcare Social Security
Religious Holiday Allowance
Annual Bonus*
MOHAMMAD NOOR RACHMAN SOEJOETI HERMANTO TANOKO IWAN SIGIT Meal Allowance and Transport
Chairman of the Nomination and Member of the Nomination and Member of the Nomination and
Remuneration Committee Remuneration Committee Remuneration Committee Night Shift and Overtime Pay*
Insurance *
Avian Brands guarantees that remuneration is granted equally for positions of equal standing, without discrimination based
on gender or ethnicity, with an equal (1:1) male-to-female remuneration ratio. In strategic and leadership positions, the Board * Only valid for employees of certain levels.
of Commissioners and the Board of Directors also receive remuneration adjusted to their respective KPI achievements. Avian
Brands also implements a Long-Term Incentive Plan (LTIP) in the form of granting shares or stock options to certain leadership
positions as a reward for strategic contributions and the long-term performance of the Company. This initiative is part of the
talent retention strategy and also supports the Company’s sustainable growth.
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Annual Total Compensation Ratio Throughout 2025, 71 of AVIA, TKTW, and TKBI female employees (excluding outsourced employees) applied for maternity
leave, and 53 male employees applied for dispensation. Dari jumlah tersebut, 100% karyawan wanita maupun pria telah
The annual total compensation ratio is an indicator for Avian Brands to assess the balance between the highest remuneration kembali bekerja pada tahun pelaporan. Further information is described as follows:
received by the employees and the average compensation in Avian Brands. The Company actively evaluates this ratio to ensure
that compensation fairly reflects employee contributions and is in line with Avian Brands’ long-term business objectives. Total Employees Who Took Dispensation/Maternity Leave
In determining the compensation ratio, Avian Brands takes into account its overall performance as well as individual
2025* 2024* 2023*
contributions to ensure proportionate remuneration structure. Compliance with prevailing laws and regulations is also a key Uraian
Male % Female % Total Male % Female % Total Male % Female % Total
focus to maintain transparency and accountability in Avian Brands’ management. The Company has not disclosed the total
annual compensation ratio, as this data is considered confidential. Employees
entitled to
53 42.74 71 57.26 124 40 28.78 99 71.22 139 63 48.46 67 51.54 130
dispensation/
maternity leave
Employees
exercising
53 42.74 71 57.26 124 40 28.78 99 71.22 139 63 48.46 67 51.54 130
dispensation/
maternity leave
Employees
returning to
Benefit Programs Supporting
work during the
reporting period 53 42.74 71 57.26 124 40 48.78 42 51.22 42 63 70.00 27 30.00 90
following their
All Aspects of Life
dispensation/
maternity leave
Employees
returning
to work
following their
dispensation/
51 68.92 23 31.08 74 40 48.78 42 51.22 42 63 70.00 27 30.00 90
maternity
Retirement Program Maternity Leave leave, who are
still employed
12 months
Avian Brands regards employee welfare as a key pillar of Avian Brands implements a maternity leave policy for female thereafter
its corporate sustainability strategy. Avian Brands’ social, employees and dispensation for male employees who
Notes:
employment, and human rights sustainability policy states accompany their spouses during childbirth, in accordance * AVIA, TKTW, and TKBI.
that the Company shall ensure that employees are prepared with the provisions stipulated in Law No. 13 of 2003 on
for retirement. Avian Brands is committed to providing Manpower, which has been amended by Law No. 11 of
long-term financial protection for all employees. Retirement 2020 on Job Creation (Omnibus Law). This policy is also in Employee Benefits
age is determined by position and entity: retirement age accordance with Law No. 4 of 2024 concerning the Welfare
at AVIA is 57 for staff and 65 for employees in supervisory of Mothers and Children in the First Thousand Days. Avian Brands consistently places great importance on employee welfare and provides remuneration in accordance with labor
positions and above, while at TKTW and TKBI, all employees regulations. Avian Brands offers competitive remuneration, both in base salary and benefits, to attract and retain top talent.
enter retirement at the age of 57. Avian Brands provides maternity leave, as well as rest days Remuneration levels are determined based on applicable regulations, internal evaluations of alignment with industry standards,
in the event of miscarriage, for 90 calendar days to female and the position level of each employee. Avian Brands always ensures a fair and equal remuneration system with a one-to-one
Retirement preparation programs are implemented by employees. This leave can be used to prepare for childbirth (1:1) male-to-female remuneration ratio. Avian Brands also guarantees that there is no pay gap for equivalent positions. The
providing life skills training and socialization regarding as well as to get ample time for postpartum recovery. Board of Commissioners and Board of Directors also receive equal remuneration based on achievement of predetermined KPIs.
pension funds. In addition, the retirement program for Avian Brands also provides special leave for 2 consecutive
Avian Brands’ permanent employees is managed by the working days for male employees to accompany their Avian Brands also has an SOP for Remuneration Management, which regulates employee incentives. Income received by
Employment Social Security Agency (BPJS Ketenagakerjaan), spouses during childbirth. This policy is a manifestation of employees consists of wage and non-wage income, including allowances and other benefits.
in which employees contribute 1%, and Avian Brands Avian Brands’ commitment to support the active role of both
contributes 2% of employees’ base salary. These parents in childcare, while ensuring a balance between work
contributions are allocated regularly to build an adequate and family life.
financial foundation for employees upon retirement.
In 2025, the total contribution reached IDR1.50 billion,
an increase of 5.46% compared to the IDR 1.42 billion
contributed in the previous year. This contribution is a
form of the Company’s appreciation for the dedication and
contribution of its employees during their years of service at
Avian Brands.
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Performance
PT Avia Avian Tbk
Workplace Culture and Environment Minimum Notification on Changes
in the Work Environment
Avian Brands is committed to creating a workplace culture Supporting Facilities for Work-Life
and environment that encourages employee productivity, Balance
comfort, and well-being. A positive and pleasant workplace As part of its commitment to creating harmonious, In certain situations where organizational changes may
is the foundation for boosting employee productivity and Avian Brands provides a variety of innovative facilities to transparent, and equitable industrial relations, Avian Brands potentially affect labor relations, Avian Brands consistently
engagement with the Company. Avian Brands implements encourage work-life balance while fostering a comfortable, always ensures open and effective communication with all ensures that decision-making, communication, and
work-life balance as part of its work culture, as stated in its healthy, and pleasant work experience for all employees. employees. The Company understands that any significant implementation processes are carried out based on the
Sustainability Policy on Social, Labor, and Human Rights This commitment is realized by providing various facilities changes in its operations may impact job security, work principles of prudence, responsibility, and respect for
Pillar. This is realized through operational working hour that help employees perform their duties optimally without processes, and organizational dynamics. employee rights. All processes are carried out in compliance
policies that comply with regulations and the provision of neglecting their rest time, health, and well-being. with national regulations, including Government Regulation
various facilities that help employees maintain a balance Therefore, in the event of material operational changes, No. 35 of 2021 concerning Fixed-Term Employment
between their professional responsibilities and personal To encourage a healthy lifestyle, Avian Brands provides including but not limited to organizational restructuring, Agreements, Outsourcing, Working Hours and Rest Periods,
lives. a fitness center, regular sports programs such as futsal business expansion, opening of new units, closure of and Termination of Employment.
and badminton organized as part of the PT Avia Avian facilities, merger of operational activities, outsourcing
Tbk Community (Paguyuban) activities, and regular of some business processes, or other changes in work As an organization that values social sustainability and good
Operating Hours of Avian Brands exercise classes specifically for female employees as part of structure, Avian Brands is committed to communicating governance, Avian Brands considers employee welfare a top
an inclusive health program, with Avian Brands also such information to employees in a timely manner in priority. Therefore, every change is implemented through an
Avian Brands’ operating hours are regulated to ensure work allocating a special budget for these programs. In addition, accordance with applicable regulations. approach that prioritizes social dialogue, consultation, and
efficiency while providing adequate rest for all employees. the Company also provides lactation rooms as a supporting deliberation to achieve the best decision for all parties.
At AVIA, employees work for 8 hours per day with 5 working facility for female employees. With regard to mental health,
days a week, bringing the total working hours to 40 per the Company provides counseling services with the Human
week. This arrangement gives AVIA employees two full days Resources team as a means of assistance for employees in
of rest each week, in support of their work-life balance. need of support related to work or personal well-being.
As for TKTW and TKBI, working hours are adjusted to the
duties and responsibilities of each section. Employees in the
Avian Brands also provides flexible workspaces, including Industrial Relations
informal workspaces such as gardens within the office area,
office administration department work for 8 hours per day, exercise bikes for light exercise while working, and library as
5 days per week, for a total of 40 hours per week. Meanwhile, an alternative workspace. The Company also provides other
operational employees at the branches work 7 hours per interactive areas such as representative office facilities and
Freedom of Assembly and Association
day from Monday to Friday and 5 hours on Saturday, with the “Avian World” paint museum (the first paint museum
a fixed total of 40 hours per week. This arrangement provides Avian Brands is committed to respecting, protecting, and upholding the fundamental rights of employees, including the right
in Indonesia) as an interactive educational space for
employees in the office administration department with two of association and assembly as stipulated in Indonesian labor regulations and international Human Rights principles. As part
employees and other stakeholders who pay a visit. These
days of rest per week, while employees in the operations of its responsible labor practices, Avian Brands provides space for every employee to freely and voluntarily choose whether or
facilities are designed to create a more balanced, creative,
department get one day of rest per week. not they want to join a labor union, without any pressure, restrictions, or discrimination of any kind.
and inspiring workplace that supports the overall quality of
life of employees.
In certain work units and employee levels, AVIA implements This commitment is formally expressed in the Sustainability Policy on Social, Labor, and Human Rights Pillar (point 9), available
a shift system, arrangements of which are adjusted to to the public on the Company’s official website. The policy affirms that freedom of association is a fundamental right and part
work conditions. In the event of excess working hours, of an inclusive work culture that respects diversity of opinion.
the Company counts them as overtime and provides
remuneration in accordance with applicable labor Avian Brands currently has two labor unions registered with the relevant authorities, i.e., the SPI Union of Association of
regulations. In addition, Avian Brands provides breaks at Family of PT Avia Avian Tbk. (Serikat SPI Paguyuban Keluarga Besar PT Avia Avian Tbk) and the PB.GB.IK Union of
certain hours to maintain the comfort and well-being of Sarbumusi PT Avia Avian Tbk. These organizations are key pillars in creating a democratic and equitable work environment
employees during work founded on social dialogue. As of the end of 2025, a total of 483 AVIA permanent employees are members of the SPI Union,
. while 50 are members of the PB.GB.IK. Sarbumusi Union. Overall, 30.16% of the total of Avian Brands’ employees are involved
in labor unions.
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Human Rights in the Supply Chain
Industrial Relations and Communications
In addition to implementing Human Rights in its operations, Avian Brands also integrates Human Rights values as a mandatory
To maintain constructive and sustainable industrial In line with the above, Avian Brands also implements policy for its suppliers in their collaborations. Avian Brands ensures that all suppliers comply with this policy and that their entire
relations, Avian Brands implements the principles of open Company Regulations, applicable to all business entities. production and operational processes do not involve Human Rights violations, such as labor exploitation or discrimination.
communication, mutual respect, and the resolution of labor This document specifies the rights and obligations of
issues through social dialogue mechanisms. The Company employees and management, procedures for resolving labor As part of monitoring of Human Rights risks, Avian Brands has conducted a Human Rights Risk–Impact Assessment (HRIA),
provides a formal platform for management and union issues, and behavioral standards that all parties must adhere which was updated in 2024. The risks identified by the Company in relation to human rights include:
representatives to discuss various topics related to labor, to, in order to create a safe, respectful, and productive work
welfare, occupational safety, productivity, and internal environment. Human Rights Risk-Impact Assesment (“HRIA”)
policy development.
These meetings are held regularly in accordance with
the principles of transparency, equality, and objectivity
UNDERAGE
in every decision-making process. Discussion results are DISCRIMINATION REMUNERATION
WORKERS
documented in the form of minutes of meetings, which form
the basis for determining follow-up actions, new policies,
and evaluations of existing policies.
FREEDOM OF
HUMAN ASSOCIATION
FORCED LABOR
Labor Protection and
TRAFFICKING AND COLLECTIVE
BARGAINING
Human Rights Policies
Anti-Child Labor and Anti-Forced Labor Policy
Avian Brands ensures that its human resource management always complies with labor regulations, including the minimum
Policy on Respecting Human Rights
working age. The Company strictly prohibits child labor by setting the minimum age for employees at 18 years old, as stated
in the Avian Brands Sustainability Policy on Social, Labor, and Human Rights Pillar, point 6. As of the end of 2025, Avian Brands
Avian Brands attaches great importance to the protection of Human Rights in all of its operations. This commitment is embodied
has successfully maintained a child labor-free work environment, both in operational areas and supply chain.
in the Business Ethics and Code of Conduct, which explicitly sets out standards of conduct and working relationships between
Avian Brands and all its personnel. This document serves as the main guideline in ensuring fair, equal, and dignified treatment
Avian Brands also implements an anti-forced labor policy as outlined in the Avian Brands Sustainability Policy on Social,
for every individual, free from any form of discrimination. This policy is aligned with points 1 and 2 of the UN Global Impact.
Labor, and Human Rights Pillar, point 12. In this regard, Avian Brands has identified and prohibited a number of activities that
constitute forced labor, as described below:
1. Recruitment by Force: Prohibiting any form of employee 7. Contract Restrictions: Not forcing employees to sign
recruitment that involves threats, coercion, slavery or contracts that restrict their right to terminate the
Business Ethics and Code of Conduct fraud; contract;
2. Confiscation of Identity Documents: Prohibiting the 8. Restrictions on Employee Movement: Employees are free
https://avianbrands.com/viewer/AVIA_
Etika+dan+Pedoman+Perilaku+Rev.2+tanggal+24+Maret+2022/AVIA_Etika_Usaha_ taking, damaging, or hiding of employees’ original to move around during working hours, including going
dan_Pedoman_Perilaku_Rev.2_tanggal_24_Maret_2022.pdf identity documents; to the toilet or for refreshments, without restrictions;
3. Charging for Recruitment Costs: Avian Brands does not 9. Forced Overtime: There is no coercion to work overtime
charge recruitment fees to prospective employees; or punishment for those who refuse; and
4. Unlawful Profits from Recruitment: Not receiving any 10. Inhumane Work Targets: Avian Brands does not set work
benefits, material or non-material, from employee targets that require employees to work without breaks
recruitment activities; or without leaving the workplace.
Human Rights in Company Operations 5. Unauthorized Deposits: Refusing all forms of deposits
from employees, except those required by law;
Implementation of human rights in the Company’s operational environment is also underpinned by the commitment stated 6. Loans that Bind Employees: Avian Brands does not
in the Avian Brands Sustainability Policy on Social, Labor, and Human Rights Pillar. This policy has been communicated to provide loans with the condition of binding employees
all employees, including new employees during induction activities, ensuring that 100% of employees understand the basic in the employment relationship as collateral;
principles of Human Rights and their responsibility in creating a safe environment that respects individual rights.
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Anti-Harassment and Anyone found to have committed serious harassment OHSMS Management Structure
Non-Discrimination Policy will have their employment terminated by Avian Brands,
and the same applies to representatives of suppliers and Avian Brands ensures effective implementation of the Occupational Health and Safety Management System (OHSMS) by
Avian Brands recognize that there is a risk of discrimination, partners. As a mitigation measure, Avian Brands ensures providing adequate resources in terms of competence, personnel, and supporting facilities. OHSMS management structure falls
harassment and sexual violence against all employees, that its anti-harassment and non-discrimination policies are under the responsibility of the Director, who plays a key role in ensuring that all OHS policies and programs are implemented
both within its environment and at its suppliers. communicated to and understood by all employees. in accordance with established standards. In its implementation, the Director is supported by the Occupational Health and
To prevent and protect all employees from harassment, Safety Committee (“OHSC”), acting as a supervisory and advisory group regarding OHS policies throughout Avian Brands’ work
Avian Brands imposes strict sanctions on anyone found environment.
guilty of harassment. This is outlined in the Avian Brands Human Rights Complaint Mechanism
Sustainability Policy on Social, Labor, and Human Rights With the OHSC Committee’s support, the Director is able to effectively direct and supervise all OHS initiatives, conduct regular
Pillar, point 4, which reads “Creating a work environment Avian Brands provides a transparent and secure mechanism risk assessments, and implement necessary corrective actions to improve workplace safety.
that is safe, comfortable, motivating, respectful, and free for reporting incidents related to human rights through
from all forms of harassment.”, and point 7, “Providing its Whistleblowing System (WBS). Every complaint
equal employment opportunities and treatment regardless received through the WBS system shall be processed fairly, Chairman
objectively, and in accordance with human rights principles, Chief Operating Officer
of gender, race, religion, color, ethnicity, class, and non-
discrimination to persons with disabilities.” to ensure that individual rights are protected and human
rights violations are addressed promptly and appropriately.
Avian Brands has established a management system in line Through these measures, Avian Brands is committed to Deputy Chairman
with the Business Ethics and Code of Conduct that governs maintaining operational security while respecting and Deputy Operational Director
the Company’s ethical standards with its personnel. This protecting the rights of every individual, in accordance with
policy applies to all individuals in Avian Brands, to protect the CInTA values upheld by Avian Brands. Implementation of Secretary
both male and female employees within the Company, this policy has also yielded positive results, with no human
as well as to protect all employees from unwanted treatment, rights violations occurring within Avian Brands during the EHS Coordinator
and to report incidents related to such harassment. If there reporting year.
is a risk or an incident that violates this policy, actions are
taken immediately to investigate and resolve the matter.
Emergency Health & Chemicals Pump
Firefighting Floor Emission First Aider
Response Environmental Handling Security Electrical Operation
Team Warden Control Coordinator
Coordinator Coordinator Coordinator Coordinator Coordinator & Hydrant
Coordinator Coordinator Coordinator
Coordinator
Occupational Health and
Safety Management System Implementation of OHSMS
Avian Brands is committed to ensuring the safety, health, 3. Avian Brands has 41 supporting documents for its OHS Avian Brands implements Occupational Health and Safety Management System (OHSMS) comprehensively in accordance
and comfort of all Avian Brands personnel. This commitment policy in the form of SOPs, forms, work instructions, and with international standards, national regulations, and best practices of safety in the industry. Implementation is focused on
is embodied in the “Safety First” principle, which emphasizes OHS-related standards, accessible digitally through the strengthening OHS awareness culture, improving employee competence, and implementing adequate risk control measures.
that safety is a top priority for all employees and stakeholders. Avian Management System Portal.
As a guide to the commitment and implementation of
the Occupational Health and Safety Management System Avian Brands’ OHSMS targets include zero fatalities and zero Strengthening OHS Culture & Awareness
(OHSMS) policy, Avian Brands has established the following accidents. To achieve these targets and optimize its OHSMS
policy documents: implementation, Avian Brands takes proactive measures to Avian Brands consistently builds a safety-conscious culture through various communication and socialization activities
1. Avian Brands Sustainability Policy on Social, Labor, and prevent incidents through risk assessments, regular safety carried out in all operational areas. The OHSMS team regularly conducts routine briefings, OHS campaigns, safety procedure
Human Rights Pillar, which emphasizes creating a safe training and simulations, and employee participation in socialization, and safety talks as part of day-to-day activities to ensure that every employee understands the potential hazards
and healthy work environment and providing access to safety inspections. All Avian Brands employees, including in the work environment and the preventive measures that must be taken. In addition, Avian Brands also applies the 5R
holistic health services, including counseling, routine business partners, receive socialization regarding Avian principle (Ringkas, Rapi, Resik, Rawat, and Rajin) to maintain cleanliness, tidiness, and order in the work area.
health checkups, promoting a healthy lifestyle, and Brands’ OHSMS policy. Avian Brands has also complied with
providing inclusive facilities such as lactation rooms and and adhered to national and international regulations related
disability access. to OHS. Accordingly, 100% of Avian Brands’ operational OHS-Related Training and Competence
2. The OHS policy, outlined in the ISO Integrated Manual, locations have obtained ISO 45001:2018 certification for
stipulates Avian Brands’ commitment to OHS as Occupational Health and Safety Management Systems Avian Brands provides OHS-related competence and skill improvement programs for employees.
an integral part of all corporate activities and the (OHSMS) since 2020. Periodically, Avian Brands conducts emergency response training such as firefighting training
responsibility of all levels of management. using fire extinguishers which is held every three months, fire hydrant training which is held
every six months at the Sidoarjo and Serang plants, evacuation drills every six months to test
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Performance
PT Avia Avian Tbk
Emergency Preparedness and Response
employee responsiveness in the event of a fire or earthquake, as well as training on handling spills of hazardous and toxic
materials every six months. These preventive training programs promote a strong understanding among all employees in
the event of an emergency. The training programs implemented can be found in the discussion on Sustainable Competency
Development.
Avian Brands is firmly committed to ensuring the Company’s resilience in facing emergencies and disaster situations, whether
caused by internal or external factors. Through the Occupational Health and Safety Committee (OHSC) structure, the Company
Risk Control in the Workplace has appointed an Emergency Response Coordinator tasked with coordinating the planning, implementation, evaluation, and
control of all emergency response programs. This commitment is realized through the following:
In addition to conducting training, Avian Brands also focuses on risk control measures in the workplace by installing visible 1. Avian Brands has formulated a Disaster Response Report covering vulnerability and disaster risk mapping, formulation of
hazard signs throughout the workplace. Workplace monitoring is also carried out through CCTV to detect and address potential SOPs and internal guidelines, and emergency response programs tailored to the risk characteristics of each facility.
risks. The use of PPE is also mandatory for all employees as a preventive measure against risks at the workplace. 2. All potential hazards are analyzed using the Hazard Identification Risk Assessment and Determining Control (HIRADC)
method, which is used to identify potential sources of hazard, including fire, chemical spills, natural disasters, and utility
risks. Risk assessment results form the basis for determining technical, administrative, and procedural control measures to
Health Facilities and Access reduce risk levels to an acceptable level
3. Avian Brands provides emergency response support facilities and infrastructure, such as evacuation routes, assembly
Avian Brands is committed to providing adequate health facilities for all employees. All (100%) of its employees, both permanent points, emergency equipment, and alarm systems that are regularly maintained to ensure good working order.
and fixed-term, have equal access to health services that are appropriate to the risks of their respective jobs. This is part of 4. Avian Brands regularly conducts emergency training and simulation programs to improve employee capacity, which
the Company’s efforts to prevent work-related illnesses and early detection of health conditions so that immediate treatment include fire drills, spill drills, earthquake evacuation drills, and flood evacuation drills. The Emergency Response Team (ERT)
can be provided in case of an emergency. Health programs and facilities provided include: is also given special technical training to serve as the primary responders in an emergency.
Enrolling Avian Brands’ employees in health insurances including insurance from the Social Security Organizing Agency
(Badan Penyelenggara Jaminan Sosial/BPJS) in accordance with employment regulations, both the Health BPJS and Fire Prevention and Control
1 Employment BPJS; Avian Brands also enrolls employees’ family members in the National Health Insurance Program -
Healthy Indonesia Card (Jaminan Kesehatan Nasional – Kartu Indonesia Sehat/JKN-KIS) in accordance with the provisions Fire risk is an aspect of occupational safety that is given high priority at Avian Brands, given the flammability of certain
of Law No. 24 of 2011. Since 2023 to date, the program has covered all employees and their family members; raw materials and production processes. To ensure employee safety and operational continuity, Avian Brands implements
structured fire prevention and fire control systems, based on risk identification, in line with occupational safety regulations.
Organizing annual medical check-ups that include physical examination, spirometry, thorax, complete urine, complete
2 blood, and audiometry. Since 2023 to date, Avian Brands has included all outsourced employees in the Medical Check-
Fire risk management begins with hazard identification using the HIRADC (Hazard Identification Risk Assessment and
Up (MCU) programs according to work exposures and risks;
Determining Control) method to map potential fire sources throughout the facility. Mapping results form the basis for designing
fire protection measures, both active (such as fire extinguishers, hydrants, fire alarm systems, and sprinklers) and passive (such
Providing a First Aid Station that specifically provides first aid treatment in the event of a workplace accident or an as evacuation routes, safe access, and other supporting infrastructure).
3 employee experiencing health problems in the workplace. This First Aid room actively operates during the Company’s
manufacturing hours from 07:30 - 16:00 WIB with the assistance of experts, namely one doctor and one nurse; and
To ensure emergency response capability on the ground, Avian Brands has established an Emergency Response Team (ERT) or
Firefighting Unit in accordance with the Minister of Manpower Regulation No. 186/1999. This team conducts regular fire drills
every six months and is responsible for simulations and emergency response.
4 Enrolling employees in private health insurance programs
Preventive measures are reinforced through routine inspections of electrical systems, lightning rods, and other utility
infrastructure to reduce the potential for technical malfunctions that could lead to fires. In addition, internal inspections and
audits are conducted periodically to evaluate the effectiveness of control systems and ensure that all workspaces remain at
an acceptable level of risk.
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Hazard Identification, Risk Assessment, Occupational Health and Safety Performance
and Investigation
Avian Brands OHS Performance Statistics
Avian Brands implements hazard identification, risk assessment, and incident investigation processes as essential parts of
OHSMS implementation. These processes are carried out systematically to prevent workplace accidents and work-related Number of Working Hours
illnesses, while ensuring that risk control is implemented effectively across all operational areas. The first step is to identify
potential hazards in all work areas, with particular attention to hazards related to production activities, the use of chemicals, (hours)
the operation of equipment, and other work activities. Identification is carried out through routine inspections, field 25,000,000
observations, employee reports, and work area evaluations.
20,000,000
Once potential hazards are identified, Avian Brands conducts a risk assessment to measure the likelihood of an incident occurring Successfully Maintaining 15,000,000
and the severity of its impact on occupational health and safety. Results of this assessment form the basis for determining risk 13,629,504 15,370,005 15,578,504
priorities and developing control measures. All risk controls are developed in accordance with the hierarchy of controls, which
Zero Accident & 10,000,000
includes elimination, substitution, engineering, administrative controls, and the use of personal protective equipment (PPE). Zero Fatality 5,000,000
3,506,349 3,691,036 3,741,957
-
Furthermore, Avian Brands implements comprehensive incident investigation procedures for each work-related accident, 2023 2024 2025
whether it is a minor incident, a near miss, or a potentially serious incident. This procedure includes reporting, gathering
evidence, analyzing root causes, and determining corrective and preventive measures to prevent recurrence of similar incidents.
Each investigation result is also used as evaluation material to improve work procedures and increase risk control effectiveness. Total Recordable Injury Rate (TRIR) Lost Time Injury Rate (LTIR)
The identification of risk hazards in Avian Brands’ operations and their control are described in more detail as follows:
4.00 3.00
3.50
Hazardous Personal Protective 2.50
Type of Hazard Location Elimination and Control 3.00
Activity Equipment (“PPE”) 2.00
2.50
Polymerization/ • Overheating RDI – Resin • Providing active fire • Boots; 2.00 3.15 2.34 3.02 1.50
esterification process reaction process; extinguishing system in the • Safety goggles; 1.50 2.71 1.95 1.99
1.00
• Hot chemicals; form of smoke detector and • Respirator; 1.00
• Water bath/heating water sprinkler; • Rubber gloves; and 0.50 0.50
0.57 0.81 0.80
mantle; and • Installing local exhaust; • Work apron. 0.27
- -
• Fire. • Using insulating materials to
2023 2024 2025 2023 2024 2025
reduce heat;
• Providing appropriate
working facilities, training, Manufacturing Operations (AVIA) Distribution & Transportation (TKTW)
and socialization of the
Safety Data Sheet (“SDS”) on
each hazardous chemical
and controlling its use in Avian Brands strives to maintain and improve its OHS performance, to achieve its target of zero accidents and zero fatalities.
accordance with the SDS; and The OHS performance of Avian Brands’ plant operations employees in 2025 saw a 1.23% decrease in the Total Recordable
• Providing workplace chemical Injury Rate (TRIR) compared to the previous year, demonstrating improved effectiveness of the risk management and accident
storage and handling facilities prevention program.
and emergency equipment.
Operating the cutting • Cut or clamped Metal Prod - Provide an emergency button on • Safety gloves; and
Meanwhile, the TRIR performance of the subsidiary entity (TKTW) saw a 28.81% increase, affected by the nature of its business
machine hands; and Kerinci each cutting machine. • Safety goggles.
• Struck by falling as a distribution company with a higher level of operational risk, particularly in transport and logistics activities. The majority of
heavy objects incidents were related to vehicles and transport activities, in line with the increasing intensity of distribution and operational
(cutting sheet). mobility.
Cleaning processing • Exposure (contact) Paint Prod- • Maximizing the dust collector • PPE special dust mask; and
tanks (work in to chemicals; Merapi function; • Safety goggles. 50 accidents were recorded in 2025, 60.00% of which constituted transport incidents. This data serves as the basis for Avian
confined spaces) • Slipping/falling; • Providing spill control kit
Brands to strengthen its accident prevention program, particularly in transport activities, through improved driving safety
• Exposure to dust (by a minimum of 2 people);
and chemicals; and and standards, safety/defensive driving training programs, and operational risk monitoring to reduce the potential for workplace
• Airborne hazards. • Using the gas detector. accidents in the future.
More comprehensive Avian Brands OHS statistics, including the number of fatalities, serious work accidents, recorded work
accidents, transportation incidents, process safety incidents, and indicators such as the Fatal Incident Rate, Lost Time Injury
Rate, and Total Recordable Injury Rate, are presented in the ESG Performance Data appendix.
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Complaints on Labor and OHS Issues 4. The Environment – supporting environmental conservation efforts through climate change mitigation and adaptation programs.
5. Fair Operating Practices – upholding business ethics and anti-corruption.
Complaints on issues related to labor and occupational health and safety can be submitted through a ballot box or a complaint 6. Consumer Issues – ensuring product safety and quality for consumers.
survey periodically conducted by Avian Brands annually. Every incoming complaint will be processed and followed up on 7. Community Involvement and Development – contributing directly to improving the quality of communities’ livelihoods.
properly and professionally. In addition, trade unions within Avian Brands also serve as a medium for employees to submit
complaints related to labor and OHS, which will be a topic of consultation and negotiation with Avian Brands in regular By implementing the principles of ISO 26000, Avian Brands ensures that its CSR programs:
meetings every 6 months. During the last 3 years, Avian Brands has not received any reports related to labor and occupational • Are aligned with international standards;
health and safety issues. • Are relevant to the needs of communities;
• Support sustainable development; and
• And strengthen the Company’s role in creating positive social impact.
Corporate Social Responsibility
Community Empowerment Programs
Summary of Achievements 4. Impact evaluation to assess social, economic, and
• Realization of 264 Avian Brands Peduli programs, environmental changes generated by each program.
representing a 35.38% increase compared to 195 PERMATA Wadungasih
programs in 2024; With this approach, Avian Brands is committed to ensuring
• The Avian Brands Peduli CSR program reaching 106 that CSR activities go beyond mere donations, but rather PERMATA Wadungasih (Pemberdayaan Masyarakat Sekitar Wadungasih/Empowerment of the Communities around Wadungasih)
regencies/cities across Indonesia; and represent social investments that deliver long-term value is a series of community empowerment programs for the residents of Wadungasih Village, an area directly impacted by Avian
• Investment in Avian Brands Peduli CSR programs for the community and the business. Brands’ operations. Implementation of the PERMATA Wadungasih CSR program covers three components:
reached 5,253 million rupiah, representing a 124.10% 1. Strengthening of MSME groups,
increase compared to 2024. 2. Training for MSME groups, and
Integration of ISO 26000 in 3. Establishment of cooperative (koperasi) organization
Avian Brands carries out its Corporate Social Responsibility CSR Implementation In addition to the ongoing program implementation, in 2025, the Company also submitted a report on the 2024 community
(CSR) programs as an integral part of its commitment to empowerment program, which has demonstrated good practices as indicated by the indicators of independence among the
generating value for society and the environment. All its CSR community members who have benefited from the program.
initiatives are aligned with the People & Community pillar of
the Avian Brands Sustainability Strategy, and contribute to The CSR programs reported in the independence monitoring and evaluation consisted of the local food self-sufficiency
the Sustainable Development Goals (SDGs). programs, which include catfish farming based on the biofloc fish farming system, and land use for urban farming.
Avian Brands’ CSR programs focus on initiatives that Overall, all activities within PERMATA Wadungasih CSR program constitute part of Avian Brands’ Community Development
generate real, lasting impact, with priorities in three key Program, oriented towards strengthening the economic, social, and sustainability capacities of the communities around the
areas: education, disaster response, and environmental Company’s operational areas.
development.
Through its sustainable approach, Avian Brands strives to
ensure that each CSR program is more than just a charitable
gesture; it must also yield long-term benefits and generate As a framework for implementing social responsibility, Avian
significant social impacts. Brands refers to the standards of ISO 26000: Guidance on
Social Responsibility. ISO 26000 provides comprehensive
guidance on how companies can conduct ethical and
Impact-Based CSR Approach socially responsible business practices.
All of Avian Brands’ CSR initiatives are designed with In the context of CSR, ISO 26000 is implemented through
a need-based and impact-based approach, which includes: seven core subjects that serve as reference points:
1. Mapping the needs of the community based on the 1. Organizational Governance – ensuring transparent and
socio-environmental conditions around the operational accountable CSR governance.
area. 2. Human Rights – promoting respect for human rights in
2. Collaboration with local stakeholders, including local all operational activities and social programs.
governments, educational institutions, communities, 3. Labor Practices – addressing labor issues, including
and partner organizations. occupational health and safety and equal opportunities.
3. Implementation of results-oriented programs, ensuring
relevance, effectiveness, and sustainability of assistance
provided.
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Strengthening MSMEs in Wadungasih Village Capacity Building for MSME Practitioners
Wadungasih Village’s economy is currently dominated by the trade sector, with diverse micro, small, and medium enterprises 1. Social Media & E-Commerce Training for MSME Groups
(MSMEs) activities having great potential for growth. Strengthening MSME groups is a strategic step in driving local economic Social Media and E-Commerce Training is designed to improve digital marketing capacity among MSME group members.
growth and improving the welfare of the village community. In this program, participants are equipped with an understanding of strategies for utilizing social media as a promotional
tool, techniques for creating engaging and communicative content, and managing online shops on various e-commerce
In 2025, Avian Brands carried out a series of activities to support MSMEs in Wadungasih Village, including the provision of platforms. As part of community development efforts, this activity provides practical digital marketing skills and opens
business equipment, support in the form of materials/capital, and product packaging facilities for the MSME group under up opportunities to expand the market reach of MSME products to a wider scale. In addition to marketing aspects, this
the Company’s guidance. In addition to providing support in the form of facilities and infrastructure, the Company also held training also includes improving business management capacity, particularly in business planning, budgeting, accounting,
capacity-building training activities with the aim of empowering MSME practitioners with knowledge and skills that can be and financial reporting for MSME groups.
utilized in a sustainable manner.
2. Product Packaging Design Training
All programs and supports are designed according to the results of social mapping and program evaluation, ensuring that Product Packaging Design Training aims to improve MSME groups’ understanding of designing attractive, functional
implementation is aligned with the actual needs of the target groups and oriented towards sustainable economic impact on packaging that meets market needs, thereby strengthening product branding and competitiveness. As part of its ongoing
the community. community development efforts, Avian Brands conducts this training targeting various business groups, not only MSMEs
under its guidance, but also BUMDes (Village-Owned Enterprises) of Wadungasih Village and other independent food
1. Provision of Production Tools, Materials, and Packaging for MSME Practitioners entrepreneurs in the village. This program focuses on encouraging the upscaling of SIIIP and ECO MSME product packaging,
Provision of support in the form of production tools, materials, and packaging represents Avian Brands’ ongoing efforts so that the products have more competitive visual and functional standards in the market. The training was attended by
to optimize the performance of the MSME groups under its guidance, i.e., the SIIIP group (moringa products) and 30 business actors from Wadungasih Village, most of whom were from vulnerable women’s groups as the main beneficiaries.
the ECO group (catfish products). This initiative is part of the Company’s community development efforts to boost Thus, the program also contributes to social inclusion and women’s economic empowerment.
production capacity and competitiveness of community businesses.
3. MSME Organizational Strengthening Training
By providing more modern production equipment, production materials, and product packaging facilities, Avian Brands shows The MSME Organizational Strengthening Training is a strategic step by Avian Brands to increase the institutional capacity
its commitment to addressing the socio-economic challenges of Wadungasih Village, particularly the disparity between the of the SIIIP (moringa products) and ECO (catfish products) MSME groups in Wadungasih Village. With this program, the
growth of the productive-age population and the availability of entrepreneurial skills and adequate employment opportunities. Company aims to strengthen organizational governance, administrative systems, and managerial capacity of the groups,
to make them more professional, adaptive, and competitive.
This program aims to encourage a more effective and efficient production process, improve production quality and quantity,
and expand the marketing reach of MSME products beyond the Wadungasih Village area. Ultimately, this program is expected Through organizational strengthening, it is expected that MSME groups are able to manage their finances more
to strengthen the economic independence of MSME groups and improve the community’s welfare in a sustainable manner. transparently, make decisions in a participatory manner, and build partnership networks that support business expansion.
Training materials include basic financial management and administrative record-keeping techniques.
4. MSME Financial Literacy Training
The MSME Financial Literacy Training Program is implemented as an effort to support capacity building for local businesses
in more structured and sustainable financial management. This initiative is designed to empower 30 businesses in
Wadungasih Village, including vulnerable women’s groups, to gain an understanding of financial planning, budgeting, and
record-keeping, as key foundations for business sustainability.
5. Establishment of Business Units
The establishment of business units forms part of Avian Brands’ commitment to strengthening the foundations of its MSME
partners through a sustainable approach and organizational capacity building. In 2025, this initiative was realized through
establishment of producers’ cooperative (koperasi) for the SIIIP and ECO MSME groups, as a strategic step to provide legality
for businesses, more structured governance, and open up access to broader financing and partnerships. This program is
developed through multi-stakeholder collaboration, involving the Wadungasih Village Government, BUMDes, and Family
Well-being Empowerment (Pemberdayaan Kesejahteraan Keluarga/PKK) groups. This participatory approach ensures that
koperasi not only function as business entities but also as spaces for community empowerment and strengthening the role
of women in local economic development.
The establishment of the koperasi was carried out in several stages, beginning with a formation meeting, drafting of the
articles of association, determining the organizational structure, and administrative and legal assistance with a notary and
the Cooperative Office. In the same year, the “Kartini Mandiri Wadungasih” producer cooperative officially obtained its deed
of incorporation, taxpayer identification number (NPWP), business identification number (NIB), and joint account as part
of its operational identification. After its legalization, monitoring and evaluation were carried out periodically to assist the
implementation of governance, member participation, and the development of the cooperative’s
economic functions. Through this program, the Company hopes to foster an institutional model
that is inclusive and adaptive, capable of promoting the sustainability of community-based
businesses.
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Cooperation Program for Sales of MSME Products Environmental Development Pillar Land Utilization for Urban Farming
Land Utilization for Urban Farming is part of the Kampung
As part of its sustainability commitment in the Community quality improvement and business competitiveness. Avian Brands recognizes the potential of developing Hijau Berseri initiative implemented in Wadungasih Village,
Development pillar, PT Avia Avian Tbk continues to Over the course of the program, the MSMEs have shown the environment in line with opportunities to minimize which is located in the ring 1 of the Company’s operational
encourage local economic growth through inclusive and improvement in various aspects such as packaging environmental impact. Avian Brands believes that both of area. This program aims to improve local food security by
impactful collaboration. Among the initiatives implemented standards, product quality, distribution management, these elements can contribute to improving the standard of optimizing limited land into productive areas for growing
is the Cooperation Program for Sales of MSME Products and branding through the creation of a more professional living for the community. vegetables such as chili, tomatoes, eggplants, bokchoy, and
with local business groups, including MSMEs in the areas business identity. The Company also provides a space for moringa. This activity provides the community with access
surrounding the Company’s operations and Village-Owned dialogue through periodic evaluation sessions to ensure Clean Water Pipeline Installation in Wotan to healthy food sources while reducing dependence on
Enterprises (BUMDes). the sustainability of the collaboration and opportunities for Village market supplies. The current harvest is used for household
further development. This program of constructing a pipeline network and consumption, with the potential to become an additional
Before cooperation begins, the Company conducts initial distributing clean water directly to residents’ homes provides source of income in the next phase of the program.
assessment and mentoring to ensure that partners are ready, With this initiative, PT Avia Avian Tbk hopes to create easier, more affordable, and more reliable access for the
including in terms of product quality, hygiene standards, a sustainable partnership model that provides long-term local community. This has not only improved sanitation The program is implemented through collaboration with
production consistency, and distribution capabilities. This benefits to the community, while strengthening a local and public health but also enhanced residents’ productivity, the village government, PKK groups, TPST managers,
involves capacity building through training, technical economic ecosystem that is independent, productive, and supported educational activities, and created a more livable and BUMDes, ensuring participatory and sustainable
assistance, and regular evaluations to encourage service competitive. and healthier residential environment. management. The Company provided support in the form of
seedlings, agricultural equipment, and supporting facilities,
This program is implemented through collaboration enabling the community to independently manage the land.
between multiple parties, including the Wotan Village In addition to providing economic and social benefits, this
Government, community leaders, and local community program also serves as a means of environmental education
Education Pillar groups. The village government is involved in planning, for children in preschool and kindergarten. The program’s
coordinating implementation in the field, and establishing impact also includes innovation in small-land farming
Appreciation for Avian Brands Employees’ Children with Academic Excellence joint management mechanisms with residents to ensure practices through the use of polybag planting systems.
Avian Brands launched a scholarship program aimed at encouraging educational advancement among Avian Brands’ extended that the infrastructure built can be utilized and maintained
family and surrounding communities. In 2025, Avian Brands awarded scholarships to 14 primary, secondary, and high school in the long term.
students. These students are children of Avian Brands’ employees who achieved excellent performance by placing in the top Disaster Response Pillar
3 of their class. This scholarship is a form of Avian Brands’ appreciation for the students’ enthusiasm and effort in achieving Implementation of the pipeline installation program also
academic excellence. supports the achievement of Sustainable Development In 2025, Avian Brands, through its disaster response pillar,
Goal (SDG) 6: Clean Water and Sanitation, which emphasizes focused on providing assistance to community groups
the importance of clean water availability and access to categorized as vulnerable.
proper sanitation for all levels of society. Furthermore, this
Building the Future of Children with program is part of Avian Brands’ strategy to build inclusive Staple Food Packages
Tanoko Vocational School and sustainable relationships with the community through As a form of its concern for vulnerable communities,
Avian Brands also granted scholarships to the pillars of education, health, environment, and economic Avian Brands distributed 500 staple food packages to
orphaned students from Tanoko Vocational High empowerment. a number of churches in the Surabaya area. This program
School, which is part of the Hermanto Tanoko aims to help communities in need, particularly the elderly,
Foundation (HTF). These scholarships provide For Avian Brands, this initiative represents the low-income families, and individuals with limited access
full academic and non-academic education. implementation of corporate social responsibility principles to basic necessities. With this effort, the Company hopes
in a tangible, measurable way that is relevant to the needs of to contribute to maintaining food security, strengthening
In addition to providing scholarships, in August the communities surrounding its operational areas. Through social solidarity, and creating an inclusive environment
2025, Avian Brands conducted a series of ongoing collaboration and community empowerment, this regardless of the religious or social background of the
training and skills development programs for program addresses the critical need for clean water, and beneficiaries. This program also aligns with the Company’s
Tanoko Vocational School students to support builds a stronger social and economic foundation for the commitment to supporting community resilience as part of
the improvement of education quality. With future of the village. its disaster response pillar.
speakers from industry practitioners, Avian
Brands successfully provided materials related to
public speaking, basic painting, and professional
work culture to 66 students from three grades of
Tanoko Vocational School.
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Raising Social Concern Through Blood Donation Programs
Avian Brands regularly holds blood donation events 4 times a year, as a form of social concern and a tangible contribution to Petik Laut
supporting the availability of blood stocks in health facilities. Employees participate in this program voluntarily, and it is also
open to external parties through collaboration with official blood donation agencies. With this activity, the Company aims As part of its corporate social responsibility commitment to coastal communities, Avian Brands distributes assistance
to foster a culture of sharing, improve public health, and support medical services for those in need, particularly patients in in the form of paints, in support of the Petik Laut tradition. The paints are used to paint fishermen’s boats and their
emergency care, women in labor, and people with chronic illnesses. This initiative also reflects Avian Brands’ commitment to supporting facilities, as a tangible form of support for continued fishing activities and to improve the safety and
building a caring, healthy, and socially impactful work environment. comfort of fishermen’s work. Through this initiative, not only does Avian Brands contribute to the preservation of local
culture, but it also strengthens collaborative relationships with coastal communities in various regions of Indonesia.
Qurban in Eid al-Adha
During Eid al-Adha, Avian Brands distributed sacrificial (qurban) animals to communities around the Company’s operational Throughout 2025, the Avian Brands supported 9 Petik Laut events in various regions in Indonesia as described below:
areas. Aid distribution is carried out in collaboration with religious institutions and village officials. Through this program, 1. Petik Laut Pagatan, Batulicin 2025
the Company hopes to strengthen the values of mutual cooperation and social solidarity that are part of community traditions. 2. Petik Laut and Boat Painting / Boat Race (Pacu Jalur) in Kuansing Taluk Kuantan, Riau
This initiative represents Avian Brands’ tangible contribution to supporting social welfare and harmony in the surrounding 3. Petik Laut and Boat Painting with HNR Community, Sampit
communities. 4. Petik Laut and Fishermen's Festival in Kampung Bahari Nusantara Jamarang, South Makassar.
5. Petik Laut Kaduara Timur, Pamekasan.
6. Petik Laut and Boat Painting / Boat Race (Pacu Jalur) in Peranap Subdistrict.
7. Petik Laut and Boat Painting in Tanjung Seloka Village, South Kalimantan.
8. Petik Laut Selat Lembeh Manado 2025
9. Petik Laut Tasyakuran for Fishermen in Glodog & Lerankulon Villages, Palang District, Tuban
Avian Brands Peduli: Coloring Indonesia
Painting of Places of Worship Painting of Educational Facilities
Since its inception, Avian Brands’ enthusiasm to bring colors to Indonesia through its products has been part of the Company’s
identity and vision. This value is manifested through the “Avian Brands Peduli” program, a corporate social responsibility (CSR)
platform focusing on charitable activities centered on community empowerment. In addition to supporting fishermen communities Throughout 2025, Avian Brands actively supported
through the Petik Laut program, Avian Brands painting and renovation of educational facilities in
This program integrates various social initiatives that emphasize support for the sectors of education, the environment, continuously implements other social responsibility various regions of Indonesia as part of its commitment
preservation of local culture, and strengthening of social infrastructure in the community. Through this approach, Avian Brands programs, one of which is in the form of paint provision to strengthening education sector and improving the
Peduli has carried out a series of community-based painting activities, including: for places of worship. This initiative is aimed at quality of learning environment. This initiative aims to
supporting community social and religious activities, create a more pleasant, safe, and comfortable learning
1. painting of fishing boats in the Petik Laut tradition, by improving the quality of facilities of worship and space for students and teachers, while supporting the
2. painting of places of worship, community infrastructure, thereby creating a more continuity of teaching and learning activities in schools.
3. painting of educational facilities, and pleasant, clean, and comfortable environment for A total of 74 activities were successfully carried out in
the community to carry out their spiritual and social 2025, some of which are described below:
4. painting of public facilities and public spaces.
activities. 1. Painting of Generasi Unggul (GENU) Christian
School, Kupang
All these activities not only serve as a form of physical assistance but also as a symbol of Avian Brands’ presence in strengthening
Throughout 2025, Avian Brands has provided support 2. Painting of Reohobot Oelebo Christian School
social relationships, preserving cultural values, and improving the quality of the community’s livelihood.
for 55 programs to paint places of worship in various (SKRO), Kupang
regions in Indonesia. Some of the activities are 3. Painting of Christian Theological College (STAK),
described below: Kupang
1. Painting of Daarussalaam Mosque, Tangerang 4. Painting of murals in Surabaya’s Old Town in
2. Painting of Baiturrohman Mosque, Ciamis collaboration with Ciputra University Surabaya
3. Painting of St. Bernardus Abbas Tokojaeng Parish 5. Painting of Peduli Anak Foundation, Sumbawa
Church, Lembata, NTT 6. Painting of Binar Junior High School, Pamekasan
4. Painting of Nur Addin Grand Mosque, Tebing 7. Painting of State High School (SMAN) 12, Kupang
Tinggi, North Sumatra 8. Painting of the Library of Curug Sangereng Village,
Number of Regions Covered by Avian Brands 5. Painting of Assomad Mosque, Semarang in collaboration with Pradita University, Tangerang
106 34
6. Painting of Al-Qosim Mosque, Semarang 9. Painting of Mathla’ul Anwar TKL Elementary School
7. Painting of Baitul Muslim Mushola, Purwokerto (MI), Mauk, Tangerang
8. Painting of Abdus Salam Mosque, Gresik 10. Painting of Raudlatul Hidayah 2 Elementary School
Regencies Provinces 9. Painting of Santo Clemens Catholic Parish Church, (MI), Mauk
Kolaka
10. Painting of Purisejahtera Mosque, Sidoarjo
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Painting of Public Facilities
Throughout 2025, Avian Brands carried out programs to paint and repair public facilities in various regions in Indonesia
as part of its commitment to supporting the quality of the community’s living environment. This program aims to
improve comfort, safety, and aesthetics of public spaces in the community’s daily activities. Through this initiative,
Avian Brands contributes to creating more livable, healthy, and inclusive social environment, while strengthening the
role of public facilities as spaces for social interaction and public services. A total of 86 activities were successfully
carried out in 2025, some of which are described below:
1. Painting of Military Regional Command (Koramil) 0816/06 office in Tanggulangin, Sidoarjo
2. Painting of Residents’ Association (RW) 05 Dukuh Menanggal
3. Painting of the Sector Police (Polsek) of Buduran, Sidoarjo
4. Paint Provision for the Ruwat Desa event in Banjarkemantren, Sidoarjo
5. Painting of the office of the Industry and Trade Office (Disperindag) of Sidoarjo Regency
6. Painting of Military Regional Command (Koramil) 0816/03 Buduran, Sidoarjo
7. Painting of Military Resort Command (Korem) 084/V Surabaya
8. Painting of Berm on Jalan Pahlawan - A.Yani Sidoarjo
9. Paint Provision for the Revitalization of Tanjung Kait Village, Mauk
10. Painting of 20 Creative Gates (Gapura) with Mitra10 Jambi
11. Painting of Pematang Reba Sub-district, Rengat
12. Paint Provisions for the Klego Pekalongan Riverbank Mural Competition
13. Painting of Nginden Jaya II Sub-district, Jangkungan, Sukolilo District, Surabaya
14. Painting of the Indonesian Navy Base Building, Mataram
15. Paint Provision for the 28Build event with Habitat for Humanity Indonesia 2025 in 3 locations: Yogyakarta, Gresik,
and Balaraja
Corporate Social Responsibility Program Complaints
Over the past three years, Avian Brands has not received any material or significant complaints related to CSR programs,
community empowerment initiatives, or the Avian Brands Peduli programs implemented by the Company. Furthermore,
all programs carried out by Avian Brands do not have significant adverse impacts on local communities, either actual or
potential. Avian Brands’ CSR programs are able to provide significant and sustainable benefits to the community, and we will
keep striving to increase this contribution to the welfare of communities around Avian Brands on
an ongoing basis.
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PT Avia Avian Tbk PT Avia Avian Tbk Governance Pillar Performance “Avian Brands consistently emphasizes good corporate governance principles in all of its business activities as the primary foundation for building a company with integrity, transparency, and accountability. Every decision-making process is structured to uphold ethics, compliance, and accountability to ensure long-term business sustainability. By strengthening its organizational structure, the active role of its governance bodies, sustainable risk management, and the implementation of comprehensive corporate policies and guidelines, Avian Brands continuously builds a reliable and adaptive governance system that responds to business and regulatory dynamics. This approach ensures that the Company’s operations are conducted in a professional and controlled manner, with a focus on protecting the interests of all stakeholders. By positioning governance as a strategic pillar of sustainability, Avian Brands is committed to balancing business growth, regulatory compliance, and public trust. Through ethical and sustainable governance practices, the Company is determined to reinforce its foundation as a resilient, credible, and competitive organization in facing future challenges. 152 2025 Sustainability Report 2025 Sustainability Report 153
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Key Performance Achievements of General Meeting of Shareholders
the Governance Pillar in 2025
As a public company, Avian Brands ensures that corporate governance is exercised in accordance with the principles of
transparency, accountability, and the protection of the rights of all shareholders. The General Meeting of Shareholders (GMS)
Updating and publishing Avian Brands’ Sustainability functions as the highest decision-making forum, including in determining the Company›s strategic policies, overseeing
Policy in response to the latest regulations and global the performance of the Company›s organs, and setting the directions of Avian Brands’ long-term development.
industry standards;
The GMS is convened in accordance with applicable laws and regulations, including the Limited Liability Company Law,
Financial Services Authority (Otoritas Jasa Keuangan/OJK) regulations, capital market mechanisms, and the Company’s Articles
Implementing and conducting ISO 31000:2018 training of Association. Through this mechanism, all shareholders, whether institutional, public, or majority shareholders, have equal
100% handling of the Whistleblowing System; opportunities to exercise their rights, including attending meetings, voting, asking questions on the discussed agenda, and
on Risk Management Systems for all department heads;
obtaining relevant information about the Company’s condition and performance.
Avian Brands convenes two types of GMS in accordance with applicable regulations, namely:
100% compliance with the Code of Ethics & Code of During the reporting year, there were no cases of
• Annual GMS, which must be held no later than six months after the end of the financial year. It discusses mandatory
Conduct across the entire value chain by all employees corruption, bribery, or gratuities involving employees
agenda items such as the approval of annual performance, the appointment of external auditors, and other decisions
and business partners; or management; and
relevant to business continuity; and
• Extraordinary GMS, convened as needed, in order to make urgent strategic decisions that cannot wait until the next
During the reporting year, Avian Brands did not Avian Brands does not make any political contributions, Annual GMS.
incur any fines or significant legal actions, both from whether in the form of funds, goods, or facilities, to
authorized institutions as well as from the Financial any political parties, candidates, or specific political In every GMS, Avian Brands provides adequate access to information for all shareholders through official publications, the
Services Authority and the Indonesian Stock Exchange; activities company website, and the provision of supporting documents prior to the meeting. This ensures that decision-making
processes are conducted in an ethical, transparent, informative, and participatory manner.
As part of its commitment to good corporate governance, the implementation of GMS supports accountability and oversight
of the Board of Directors and Board of Commissioners, while strengthening shareholders’ and stakeholders’ confidence in Avian
Brands’ continued growth.
Avian Brands Sustainability Policy Further information on GMS implementation, the agenda, resolutions, and shareholder participation statistics is available in
the Avian Brands Annual Report, accessible on the Company’s official website.
Avian Brands has established a Sustainability Policy as the Company’s official commitment to conducting operations that
are responsible, transparent, and oriented toward long-term sustainability. This policy is signed by the President Director as
a form of the highest management commitment and serves as a guideline for all business units in designing and executing
operational activities aligned with sustainability principles.
Board of Commissioners
Avian Brands’ Sustainability Policy encompasses environmental, social, and governance (ESG) aspects, integrated into work The Board of Commissioners is a key organ in Avian Brands’ governance structure, holding a strategic oversight role. In carrying
processes, decision-making, and risk management across all organizational levels. Implementation is supported by periodic out its mandate, the Board of Commissioners ensures that all corporate policy directions, decision-making processes, and
evaluation mechanisms, monitoring, internal and external audits, as well as stakeholder engagement to ensure alignment management system implementations align with the Good Corporate Governance (GCG) principles, applicable regulations,
between on-site practices and the Company’s sustainability goals. and long-term sustainability commitments (ESG Commitment).
Through this policy, Avian Brands ensures that all employees and business units implement sustainability principles With its oversight role, the Board of Commissioners is tasked with providing strategic direction, ensuring adequate internal
consistently, systematically, and measurably. Stakeholders can access the full Sustainability Policy document via the link or QR control systems, and supervising the Board of Directors’ performance in implementing business and sustainability strategies.
code provided in this report.
As a manifestation of the principles of independence, transparency, integrity, and accountability, the Board of Commissioners
prioritizes a risk- and impact-based approach, which encompasses both financial and non-financial aspects such as
environment, society, organizational culture, diversity, supply chains, adequate occupational safety systems, and responsible
risk management..
Avian Brands Sustainability Policy
https://avianbrands.com/viewer/
Kebijakan+Keberlanjutan+PT+Avia+Avian+Tbk/dokumen_
pendukung_202508041437_Kebijakan_Keberlanjutan_PT_Avia_Avian_Tbk.pdf
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Board of Directors
The Role of the Board of Commissioners in Overseeing Sustainability Performance
Throughout 2025, the Board of Commissioners conducted continuous oversight of the implementation of Avian Brands’ ESG
strategies, policies, and targets, including the company’s Sustainability Roadmap. Oversight was exercised through regular
meetings with the Board of Directors and relevant Committees to ensure: The Board of Directors is the executive organ responsible for • Ensuring that the corporate culture supports business
• Integration of sustainability indicators into business strategies and operational policies; operational management, business strategy implementation, ethics, occupational safety, innovation, and cross-
• Reduction of environmental impact through management of energy, water, chemicals, GHG emissions, and waste; and the achievement of the Company’s performance targets. functional collaboration.
• The Company’s compliance with national and international regulations concerning the environment, employment, and With its executive execution role, the Board of Directors ensures
safety; that all Company operations are carried out in accordance The Sustainability Unit, which is under the coordination
• Respect for human rights and labor rights, including non-discrimination and employee participation in formal forums; and with the policies, strategies, and directives of the Board of of the Board of Directors, is responsible for monitoring
• Management of sustainability risks as part of Enterprise Risk Management (ERM). Commissioners, including the implementation of sustainability progress, preparing ESG reports, and ensuring compliance
principles as part of the Company’s business model. with global standards such as GRI, SASB, ISSB/IFRS S1-S2,
In this context, the Board of Commissioners ensures the sustainability agenda is implemented and regularly evaluated through and ESG rating agency frameworks.
measurable performance indicators. The Sustainability Unit, under the Board of Directors›
coordination, is responsible for monitoring progress,
preparing ESG reports, and ensuring compliance with global Composition and Alignment of Expertise
Composition and Independence standards such as GRI, SASB, ISSB/IFRS S1-S2, and ESG rating
agency frameworks. Avian Brands’ Board of Directors consists of five members
The structure of the Avian Brands’ Board of Commissioners is designed in accordance with capital market regulations and good
with expertise in operations, supply chain, risk management,
governance principles. In 2025, Avian Brands reported that 67% of the Board of Commissioners were independent members.
product innovation, finance, and market development.
This percentage represents a 50% increase from 2024, demonstrating the Company’s ongoing commitment to strengthening
The Role of the Board of Directors in Combining these areas of expertise strengthens the
the quality of governance and the Board of Commissioners’ oversight function.
Implementing Sustainability Strategies management’s ability to execute sustainable strategies
comprehensively.
Throughout 2025, the Board of Directors played an active
Work Guidelines and Evaluation role in ensuring the implementation of ESG principles
through the following measures: Meeting and Monitoring Mechanisms
The Board of Commissioners carries out its duties in accordance with the Board of Commissioners Charter established on
• Determining sustainability targets and performance
August 16, 2021. The Charter regulates the mandate, code of ethics, meeting mechanisms, and limitations of authority, including
indicators in operational KPIs; To ensure the achievement of sustainability targets, the
the role in overseeing sustainability performance. Annual evaluations are conducted to ensure oversight effectiveness and
• Overseeing the implementation of decarbonization, Board of Directors convenes:
alignment with future ESG priorities.
energy efficiency, and circular product/material • Routine internal Board of Directors meetings;
programs; • Joint meetings with the Board of Commissioners; and
Further information regarding the composition of the Board of Commissioners, its roles and responsibilities, training and
• Integrating sustainability principles into the supply • Cross-functional and operational unit evaluation forums.
competency development, nominations and remuneration, meeting procedures, and performance evaluation processes is
chain, technology investment, and environmentally
available in 2025 Avian Brands’ Annual Report.
friendly product development; Through these mechanisms, the Board of Directors monitors
• Managing environmental and social compliance aspects ESG target achievement, risk mitigation effectiveness,
in accordance with national and international standards; and preparedness for the implementation of strategic
and sustainability programs.
Further information regarding the Board of Directors’ composition, roles & responsibilities, performance of duties, training and
competency development, nominations and remuneration, as well as performance evaluations, is available in the 2025 Avian
Brands Annual Report.
Summary of Differences in Performance Focus on Sustainability between
the Board of Commissioners and the Board of Directors
Aspect Board of Commissioners Board of Directors
Main Function Oversight Execution
Implementation, operationalization,
ESG Focus Strategy, risk, compliance, governance
performance
Responsibility Assessing ESG alignment with business models Executing and achieving ESG targets
Supervisory meetings, evaluation,
Mechanism Program execution, KPI monitoring, reporting
strategic direction
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Sustainability Risk Management Avian Brands’ Business Ethics and Code of Conduct
Avian Brands implements a sustainability risk management In its implementation, sustainability-related risk management Avian Brands’ Business Ethics and Code of Conduct form part of good corporate governance practices, designed to uphold
approach to ensure that all risks, including environmental, involves a systematic process of risk identification, likelihood business ethics, integrity, and transparency in all of the Company’s activities. This code of conduct applies to all Avian Brands
social, governance (ESG), and climate change-related and impact analysis, risk prioritization based on materiality, personnel, including the Board of Commissioners, Board of Directors, employees, and parties working on behalf of the Company.
risks, are managed in a systematic, measurable manner and regular monitoring and evaluation. This framework is
and integrated with the Company’s business strategy. This not static; it is continually updated in response to regulatory
approach is based on the Enterprise Risk Management dynamics, industry developments, climate change, and Business Ethics and Code of Conduct
(ERM) framework and is consistent with national regulations evolving stakeholder expectations. Thus, Avian Brands can
and the international standard of ISO 31000:2018 Risk ensure the implementation of adaptive risk management Avian Brands regularly socializes the Business Ethics and Code of Conduct to all relevant parties, to ensure thorough
Management – Principles and Guidelines. aligned with current conditions. understanding and compliance. This socialization is carried out through various internal channels as well as the Avian Brands
website, accessible to both internal and external parties.
The entire process is carried out in accordance with the risk
Risk Management Scheme implemented tolerance established by Management. This governance Avian Brands’ Business Ethics and Code of Conduct regulate several aspects of conduct described as follows:
by Avian Brands: infrastructure strengthens the Company›s decision-making
processes and ensures that sustainability-related risks are Business Ethics Standards: Code of Conduct Standards:
mitigated appropriately and measurably.
1. Compliance with prevailing Laws and Regulations; 1. Individual Commitment;
2. Company Ethics for Company Personnel; 2. Communication and Information Delivery;
Apart from improving business resilience and maintaining
3. Company Ethics for Consumers; 3. Maintaining the Confidentiality of Data,
Risk Management Process reputation, implementing sustainability-related risk
4. Company Ethics for Shareholders; Confidential Information, and Material Information
management also acts as a catalyst for creating added value.
5. Company Ethics for Competitors; of the Company;
Scope, Context, and Criteria Through this approach, Avian Brands can boost operational
6. Company Ethics for Mass Media; 4. Use of Company Technology;
efficiency, enhance innovation, strengthen regulatory
Communication & Consultation
Risk Assessment 7. Company Ethics for Business Partners; 5. Cooperation Between Company Personnel;
compliance, and support the achievement of long-term
Monitoring and Review
8. Responsibilities to the Government; 6. Equality in Treatment and Provision of Opportunities;
Risk Identification sustainability targets. Thus, risk management is a vital
9. Responsibilities to the Community and 7. Compliance with prevailing Laws and Regulations;
foundation for realizing Avian Brands› sustainability vision
the Environment; and 8. Giving and Receiving of Gratuities;
Risk Analysis and building long-term trust among stakeholders.
10. Responsibilities in Innovation. 9. Integrity of Financial Reporting;
Risk Evaluation 10. Protection of Company Assets;
The objectives of implementing sustainability-related risk
11. Budget Planning and Use;
Risk Treatment management at Avian Brands are formulated as follows:
12. Occupational Health and Safety and Environment
1. To protect business sustainability from significant risks
(OHSE); and
Recording and Reporting that could hinder the achievement of the Company’s
13. Conflicts of Interest.
targets and strategies;
2. To build a consistent risk management framework across
all business processes and operational functions; The complete Avian Brands’ Code of Conduct document can be accessed on Avian Brands’ website below.
3. To encourage proactive actions, whereby risks are
not only controlled but also turned into sources of
As a foundation, Avian Brands has established Group Risk opportunity and competitive advantage;
Management Implementation Guidelines that apply to 4. To encourage prudence in decision-making, in order to Complete information regarding Avian Brands’ Business Ethics and
all units and subsidiaries. These guidelines regulate the ensure ethical and sustainable growth; and Code of Conduct document is available via the link and barcode below.
principles, governance, roles, processes, and mechanisms 5. To build a culture of risk and sustainability awareness,
for risk reporting, ensuring that risk management is whereby the implementation of risk management forms https://avianbrands.com/viewer/AVIA_
carried out consistently across the entire organization. an integral part of organizational behavior. Etika+dan+Pedoman+Perilaku+Rev.2+tanggal+24+Maret+2022/AVIA_Etika_
Usaha_dan_Pedoman_Perilaku_Rev.2_tanggal_24_Maret_2022.pdf
Through this framework, Avian Brands ensures that risks,
particularly sustainability- and climate change-related risks,
are identified, controlled, and integrated into strategic and
operational decision-making.
In line with its sustainability commitment, Avian Brands continuously conducts measurable risk reviews to understand the
potential impact on strategy, operations, product safety, resources, supply chain, stakeholders, and the environment. Through
this approach, Avian Brands can reduce potential adverse impacts while optimizing sustainability opportunities that support
long-term business resilience.
158 2025 Sustainability Report 2025 Sustainability Report 159
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Company Ethics for Shareholders Until the end of the reporting period, Avian Brands had never been involved in legal actions related to anticompetitive
practices or violations of antitrust and monopoly laws in which Avian Brands was identified as a participant. This is evidenced
Avian Brands’Business Ethics and Code of Conduct contains provisions that specifically govern the Company’s ethical relationship by Avian Brands not being listed in the database of alleged violations by the Business Competition Supervisory Commission
with Shareholders. Under this policy, Avian Brands is committed to providing equal and fair treatment to all Shareholders, in (Komisi Pengawas Persaingan Usaha/KPPU) of the Republic of Indonesia. In addition, Avian Brands is not subject to significant
accordance with the number and type of shares held. Each Shareholder is entitled to exercise its rights as stipulated in Avian domination in market or business competition against other companies, demonstrating its commitment to ethical operations
Brands’ Articles of Association and the prevailing laws and regulations. In addition, Avian Brands consistently provides publicly in compliance with applicable regulations.
available information to Shareholders in a comprehensive, accurate, up-to-date, non-misleading, and easily accessible manner,
in accordance with applicable laws and regulations, through a single point of communication. All Avian Brands personnel also In supporting this policy, Avian Brands has also implemented a reporting mechanism through the whistleblowing system,
have an obligation to: which allows internal and external parties to report any issues related to unfair competition.
1. Refrain from disclosing or disseminating confidential information pertaining to Avian Brands; and
2. Refrain from misusing material information for personal gain or in a manner that could be detrimental to the Company.
This commitment is strengthened by the Insider Trading Prevention Policy (December 27, 2021) to ensure that Avian Brands’
securities trading activities are conducted fairly, transparently, and in accordance with regulations, while protecting the
interests of the Company and its shareholders.
Conflict of Interest Guidelines
Company Ethics for Partners
Avian Brands implements Conflict of Interest Guidelines to ensure that every decision and action is taken with objectivity,
Avian Brands is committed to fostering fair, transparent, and mutually beneficial business relationships with its partners and integrity, and transparency, free from personal interests. These guidelines apply to all company personnel, including the Board
suppliers. Selection of partners and suppliers is based on competence, integrity, credibility, and accountable performance. of Commissioners, Board of Directors, and employees, and help foster fair relationships with stakeholders.
All partnerships are professionally executed and properly documented. Before entering into a partnership, each prospective
partner and supplier is required to register by completing a process assisted by the Procurement Department, including signing Throughout 2025, there were no indications of conflicts of interest in any of the Company’s decisions and policies.
various forms, such as the GCG Form, Code of Ethics Form, and other related documents. Avian Brands also prevents conflicts of These guidelines help Avian Brands maintain trust and integrity while demonstrating alignment between its governance
interest and unfair competition practices, as well as conducting periodic performance evaluations to ensure compliance with performance and the principles of sustainability and Good Corporate Governance.
established ethical standards.
Complete information regarding Avian Brands’ Conflict of Interest Guidelines
Detailed information regarding the Code of Conduct for Avian Brands’ is available via the link and barcode below.
Business Partners is available via the link and barcode below.
https://avianbrands.com/viewer/AVIA_
https://avianbrands.com/viewer/AVIA_ Pedoman+Benturan+Kepentingan+Rev+1+tanggal+27+Des+2021/AVIA_
Kode+Etik+Mitra+Kerja+Rev+1+tanggal+27+Des+2021/AVIA_Kode_Etik_Mitra_ Pedoman_Benturan_Kepentingan_Rev_1_tanggal_27_Des_2021.pdf
Kerja_Rev_1_tanggal_27_Des_2021.pdf
Code of Conduct Compliance and Sanctions for Violations
Avian Brands strictly enforces all behavioral guidelines. Violations of the Code of Conduct and ethical standards will be subject
to sanctions in accordance with corporate policy.
Legal Measures for Anti-Competitive Practices, Antitrust Practices, and Monopolies
Avian Brands reaffirms its commitment to fair competition through its Business Ethics and Code of Conduct. Avian Brands is
committed to complying with all relevant competition laws and regulations to maintain integrity and promote ethical business
practices.
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Communication Policy Guidelines
Anti-Corruption Risk Overview
In addition to taking preventive measures, Avian Brands also conducts risk mapping and analysis through anti-corruption risk
reviews. These reviews are conducted by the Good Corporate Governance (GCG) Committee and the Internal Audit Committee
Avian Brands has implemented Communication Policy Guidelines to govern interactions with Shareholders, the Capital to identify potential risks of corruption and fraudulent acts that are contrary to GCG principles.
Markets Authority, and the capital markets community. Based on these guidelines, Avian Brands regularly discloses important
information, including financial performance, operations, corporate governance, sustainability programs, and other material Avian Brands has conducted corruption risk assessments in 100% of the areas examined, covering 437 areas. The assessment
issues, ensuring it is accurate, complete, up-to-date, and easily accessible. These guidelines also emphasize fair treatment of all results revealed one anti-corruption finding. Following up on this finding, the Internal Audit Unit, in conjunction with
shareholders, ensuring that their rights are respected and exercised in accordance with the principles of fairness. management, has taken corrective measures in accordance with applicable procedures and regulations to minimize the risk
and ensure it does not adversely impact Avian Brands› operations.
Complete information regarding Avian Brands’ Communication Policy
Guidelines is available via the link and barcode below.
Taxation Governance
https://avianbrands.com/viewer/AVIA_
Pedoman+Kebijakan+Komunikasi+tanggal+27+Des+2021/AVIA_Pedoman_
Kebijakan_Komunikasi_tanggal_27_Des_2021.pdf Tax management is another critical aspect for Avian Brands Avian Brands also collaborates with tax consultants as
in complying with GCG principles and sustainable business strategic partners, who help ensure that Avian Brands
practices. Avian Brands’ tax management structure falls remains up to date with the latest tax regulations and
under the Director of Finance and Investor Relations, implements them properly. Furthermore, Avian Brands
responsible for matters related to the Company›s finance, regularly conducts internal and external audits to verify tax
accounting, and taxation. Avian Brands refers to the compliance, thereby maintaining transparency and integrity
provisions of tax-related laws and regulations applicable in every transaction. Avian Brands has also established
in Indonesia, including Law No. 7 of 2021 concerning Tax a violation reporting mechanism to address potential
Harmonization and Law No. 11 of 2020 concerning Job violations or unethical actions related to taxes.
Anti-Fraud, Anti-Gratification, and Creation.
Anti-Corruption Policies Tax Reporting
Avian Brands is committed to maintaining the Company’s integrity, transparency, and reputation by implementing Regarding tax obligations, Avian Brands operates only in Indonesia, with no overseas branches or operational offices. Therefore,
anti-fraud, anti-gratification, and anti-corruption policies across all operational activities. This commitment is demonstrated by all Avian Brands› tax obligations and reporting are focused on the Indonesian jurisdiction. The taxes paid by Avian Brands for
its inclusion under the Business Ethics and Code of Conduct. This policy explicitly prohibits corruption, bribery, gratification, and the last 3 years are described as follows:
fraud, including the giving or receiving of gifts, entertainment, or other benefits that may inappropriately influence decision-
(in millions Rupiah, unless otherwise stated)
making. Definitions of bribery, corruption, money laundering, conflicts of interest, and acceptable behavior are detailed in
the Code of Conduct for Business Partners. Description 2025 2024 2023
Income Tax 723,597 741,678 696,167
1 2 3 Land and Building Tax 2,186 2,116 2,015
Value Added Tax 371,172 369,131 382,045
Business Ethics and Code of Code of Conduct for Business Sustainability Policy, Ethics and Total Tax Payments 1,096,955 1,112,925 1,080,227
Conduct, which contains principles Partners, which regulates the Governance Pillar, which reinforces
of integrity, prohibition of bribery, expected conduct of partners and GCG principles in corporate activities
Avian Brands› tax disclosures are assured through financial audits, as detailed in its 2025 Avian Brands Annual Report.
gratification, and acceptable suppliers, including definitions and
Avian Brands also provides a reporting channel through the WBS system, a secure platform for reporting unethical behavior or
conduct in all business activities prohibitions on bribery, conflicts of
tax-related legal violations.
interest, and the management of
gifts or entertainment.
Financial Assistance Received from the Government
As part of its commitment to implementing anti-fraud, anti-gratification, and anti-corruption policies, Avian Brands regularly Throughout 2025, Avian Brands received no financial assistance from any government in any form for any operations.
conducts training and outreach programs for all employees and governance organs. This includes socialization on Code of In addition, there was no government involvement in any form in the Avian Brands’ shareholding structure.
Ethics principles, explanations of appropriate conduct, and prohibitions on corruption, gratification, and bribery. In addition,
signing an Integrity Pact helps employees understand and commit to integrity in carrying out their duties. Other initiatives to
instill a culture of ethics and compliance from the start are also carried out during the induction program for new employees.
162 2025 Sustainability Report 2025 Sustainability Report 163
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PT Avia Avian Tbk
Compliance with prevailing Laws and Regulations 4. Complying with applicable local, regional and national laws and regulations related to information security. Avian Brands
consistently integrates this policy into its day-to-day business processes, ensuring that every operational activity is backed
Avian Brands is committed to ensuring that the Board of Commissioners, Board of Directors, officers, employees, and related by a reliable, transparent, and secure system.
parties conduct all business activities with integrity, responsibility, and compliance with applicable laws and regulations.
Throughout the reporting period, Avian Brands did not incur any significant fines or legal actions from any regulatory agencies, This policy has also been communicated to all levels of management, ensuring that all employees are aware of their
the Financial Services Authority, or the Indonesian Stock Exchange. This compliance performance reflects the Company’s responsibilities in documenting, maintaining, implementing, periodically reviewing, and providing information security
implementation of good corporate governance and its ongoing efforts to ensure that all operational activities are carried out management system information to relevant parties. These efforts are not only aimed at protecting Avian Brands’ information
in accordance with applicable laws and regulations. assets but also at ensuring customer satisfaction, maintaining excellent service quality, and creating added value for all
stakeholders.
IT Governance
Statement of Non-Contribution to Politics Avian Brands’ IT department regularly conducts management reviews related to the Company’s IT management, involving
top management and representative managers. In these reviews, IT management objectives are presented, such as Key
Performance Indicators (KPIs), as well as the realization and sustainability of their implementation going forward. One of the
targets related to Avian Brands’ IT management is security, focusing on preventing operational disruptions and protecting
Avian Brands affirms its steadfast commitment to The Company ensures that all its operational locations are against virus and malware attacks. As an anticipatory measure against security threats, Avian Brands has formulated detailed
maintaining integrity, independence, and political free of any partiality towards political parties, individuals, mitigation procedures in accordance with ISO 27001 requirements. Various IT governance practices that support business
neutrality in all aspects of business management. or specific political interests that could influence business sustainability include:
This commitment is underpinned by the Sustainability decisions in an unethical manner. This principle forms the 1. Routine internal audits to monitor compliance with security procedures and ISO 27001:2022 standards;
Policy, Ethics and Governance Pillar, which explicitly basis for all Avian Brands’ policies, decisions, and operational 2. Disaster Recovery Plan (“DRP”), which serves as an anticipatory measure for disasters or major disruptions, prepared by
stipulates a political involvement policy that prohibits activities, including interactions with stakeholders and Avian Brands by establishing a disaster recovery center at Avian Innovation Center and preparing a recovery plan to ensure
the Company from engaging in any political activities, external parties. Accordingly, the Company rejects all forms that operations can return to normal as soon as possible;
whether material or non-material, and prohibits the use of of political contributions, whether direct or indirect, that 3. Backup and Data Restore, which has become Avian Brands’ regular daily agenda to maintain data availability, followed by
the Company’s position, authority, or assets to influence could give rise to conflicts of interest or the risk of corruption. a recovery simulation (restore) to ensure data integrity and reliability; and
public policy or support personal political interests, as well
4. Annual Disaster Simulation, where Avian Brands conducts simulations of natural disasters and failover scenarios annually
as mandating the reporting of potential political conflicts of
to test system preparedness in the face of emergencies.
interest.
Data Privacy and Security
Cybersecurity, Data Privacy, & IT Governance Avian Brands manages the personal data of employees,
consumers, and business partners by adhering
to its information security policies and principles.
Information security, data privacy, and information constantly conducts continuous improvements of the The IT department consistently implements the latest IT
technology governance are part of Avian Brands’ information security management system by: innovations to optimize data-driven decision-making,
responsibility to provide a reliable system that complies with 1. Maintaining data confidentiality, integrity and availability accelerate automation, and enhance the protection
ISO 27001:2022, the international standard for Information by managing all information assets (including personal of all corporate data. IT developments that have been
Security Management System (ISMS). This policy includes data) responsibly and taking all precautions against implemented include:
the protection of corporate data and information systems unauthorized disclosure, loss and corruption of data; 1. Data Protection & Vulnerability Management, where
as a whole, including those of employees, consumers, and 2. Taking corrective actions to resolve and prevent Avian Brands proactively manages system vulnerability
business partners. information security incidents and ensuring continuous risks by identifying information assets, assessing
improvement of the information security management weaknesses, grouping risks, and conducting regular
system; tests.
Information Safety Management System 3. Improving employee competence by conducting 2. Data Backup & Restore, where Avian Brands routinely
information security training, providing infrastructure, performs backup system management to recover
Avian Brands has implemented the Information Security and raising awareness of the importance of responsible damaged or lost data and minimize operational
Management System Policy of PT Avia Avian Tbk, effective management of information assets; and disruptions.
from July 1, 2024. Based on this policy, Avian Brands 3. User Awareness of Cyber Threats, which is a routine
outreach program on phishing, malware, ransomware,
and other digital security practices.
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Whistleblowing System Sustainable Procurement Practices
Avian Brands is committed to creating a fair, transparent, and accountable work environment by implementing a Whistleblowing As part of its sustainability commitment, Avian Brands has Evaluation results show that no contractors, partners, or
System (WBS). The WBS is a secure channel for all stakeholders, both internal and external, to report suspected fraud, legal implemented a Green Procurement Policy for contractors, suppliers were reported to cause adverse environmental
violations, or violations of Good Corporate Governance (GCG) principles, including fraud, corruption, and bribery. partner, and supplier selection. Through this policy, Avian impacts from their operational activities. To date, Avian
Brands ensures that all parties in the supply chain support Brands has assessed 148 key suppliers representing 80% of
Management of the WBS falls under the responsibility of the GGC Committee, which is available 24/7 through various channels sustainability principles that underpin the Company. its total purchase value. In the reporting year, 100% of key
and guarantees the protection of the reporter’s identity. The GGC Committee follows up on each report by collecting relevant This approach aligns with the Avian Brands Sustainability suppliers have signed the Code of Conduct for Business
data, documents, and evidence; reports supported by evidence are escalated to the investigation stage and submitted to Policy, which contains general policies as a foundation of Partners or a statement of commitment to sustainable
the Board of Directors, while reports without sufficient evidence are communicated to the reporter that their complaint cannot sustainable business practices, as well as specific policies procurement as a form of compliance with the Company›s
be processed further. that regulate various operational aspects, including quality, environmental, social, and governance standards.
environment, social, employment, human rights, ethics, Assessment results over the past three years show significant
Avian Brands regularly informs all employees about the WBS, so that they know how to report suspected violations safely and governance, and sustainable procurement. All these improvement. In 2025, Avian Brands assessed 20% of its key
securely. The WBS reporting mechanism and contacts at Avian Brands are outlined as follows: principles are implemented through the four main pillars of suppliers, which represented 80% of the Company›s total
Avian Brands› sustainability management. purchase value. Of this total, 47 local raw material suppliers
The WBS mechanism of Avian Brands is described as follows: have implemented 65.76% of sustainability aspects, 57
In practice, Avian Brands consistently engages with imported raw material suppliers have achieved 86.28%, and
suppliers and distributors through various initiatives, 27 packaging material suppliers have implemented 65.66%
such as socialization, training, and audits related to of sustainability aspects.
sustainable procurement practices. Supplier selection
DISKRIMINASI processes are integrated with sustainability principles
through ESG (Environmental, Social, and Governance) Sustainable Procurement Training
assessment questionnaires that cover important aspects
Incoming Report Preliminary Indication of Reporting to the
Investigation such as compliance with environmental standards, energy In support of its sustainable procurement policy, Avian
Inspection Violation Management
efficiency, water and waste management, and social Brands provides competency development for staff and
practices that include business ethics, fulfillment of labor employees involved in the procurement of goods and
rights, occupational health and safety (OHS), and the services. Avian Brands also allocates regular funds to provide
implementation of corporate social responsibility (CSR) training for all Procurement Department staff who serve as
No Indication of
programs. buyers, including technical and functional training. All staff
Violation from the Procurement Department, or 100% of the buyers,
In addition, suppliers of wood and paper-based raw have received training on sustainable procurement.
materials in Avian Brands’ supply chain hold sustainable
Complainants to be forestry certifications, such as the Forest Stewardship In addition, Avian Brands continues to strengthen its
updated on the result Council (FSC) and the Programme for the Endorsement of collaboration with local suppliers to support regional
of case investigation Corrections of Weakness in Internal Forest Certification (PEFC). These certifications demonstrate economic growth and national supply chain resilience. In
Case Closed
Control and Indisciplinary Sanction a commitment to responsible management of resources the last three years, the Company has focused on increasing
and raw materials. the proportion of spending on local suppliers, as shown in
Each report on violation complaints may be Avian Brands’ expenditure data for the 2023-2025 period.
submitted to: This step reflects the Company’s commitment to
Sustainability Assessment for Suppliers strengthening the local economy while reducing emissions
The Good Corporate (62) 81138505000
Governance Committee from the global logistics chain.
Avian Brands Building
As part of improving supply chain transparency and
www.avianbrands.com
Jl. Ahmad Yani No. 317 accountability, Avian Brands also conducts compliance In line with the Fourth Pillar of Avian Brands› Sustainability
Surabaya 60234 audits on hazardous waste management vendors to ensure Policy, sustainable procurement practices go beyond
Jawa Timur, Indonesia pengaduan@avianbrands.com that their practices comply with applicable regulations evaluation and auditing to include active collaboration with
and procedures. In addition, audits are also conducted on business partners. Avian Brands regularly involves suppliers
Throughout 2025, Avian Brands received 3 complaint reports through WBS, consisting of 1 major report and 2 no-issue reports. transporters and logistics partners to ensure that all raw in stakeholder forums and surveys to assess sustainability
All reports have been followed up on and resolved according to the level of violation and company policy. material and product transportation activities comply with
safety standards, legal compliance, and environmentally
friendly principles.
166 2025 Sustainability Report 2025 Sustainability Report 167
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Sustainability Report Responsibility
materiality topics and raise awareness of ESG issues. The Company has also organized socialization and training on Scope 3
Greenhouse Gas (GHG) emissions reporting, so that suppliers have a better understanding of their contributions to emission-
reduction efforts throughout the supply chain.
With this strategic approach, Avian Brands strives to build a transparent, responsible, and highly competitive supply chain,
ensuring that sustainability is not only an internal commitment but also a shared culture among all business partners. Through
the synergy between policy, ESG assessment, and continuous collaboration, Avian Brands affirms its role in creating a supply
chain that supports balanced economic, social, and environmental growth. Statement of Members of the Board of Commissioners and the Board of Directors
on the Responsibility for the 2025 Sustainability Report of
Proportion of Procurement from Local Suppliers PT Avia Avian Tbk
Description Unit 2025 2024 2023
Total Local Suppliers Number of Companies 237 217 219
Total Suppliers Number of Companies 316 285 281 We, the undersigned, hereby declare that all information in the 2025 Sustainability Report of PT Avia Avian Tbk (“Avian Brands”)
has been completely presented and we shall be fully responsible for the correctness of contents
Percentage of Procurement from Local Suppliers % 75.24 76.14 77.94
in Avian Brands’ Sustainability Report.
This statement is hereby made in all truthfulness.
Conflict-linked Minerals
Avian Brands is committed to using raw materials that are free from minerals potentially linked to conflicts, such as tin, tantalum, Surabaya, March 16, 2026
tungsten, and gold (3TG). This commitment is outlined in the Sustainability Policy, specifically in the Sustainable Procurement
Pillar, where the criteria for selecting vendors, partners, and suppliers include the requirement that their entire procurement
process does not involve conflict-linked minerals. This provision is integrated into the Code of Conduct for Business Partners, The Board of Commissioners,
which explicitly prohibits the use of raw materials derived from conflict-linked minerals or unreliable sources.
Each supplier is required to provide a statement of compliance regarding the sources of raw materials used and to ensure that
minerals potentially classified as 3TG do not originate from risky supply chains. Suppliers complete a Vendor Assessment Form
that includes questions about the exploration process for conflict-free raw materials.
Hermanto Tanoko
Avian Brands also conducts periodic supplier reviews to ensure that no new raw materials inadvertently contain 3TG minerals.
President Commissioner
Avian Brands has also established procedures for handling findings related to this issue. Suppliers who do not respond
after several requests for clarification or who show non-compliance will be subject to a review process and may have their
cooperation terminated in accordance with the Company›s procedures. If indications of risky materials are found, Avian Brands
will seek clarification, encourage corrective action, or require suppliers to replace the material source with a supplier that meets
sustainability requirements.
Mohammad Noor Rachman Soejoeti Oscar Christian Maria Jozef Wezenbeek
As part of its governance strengthening, Avian Brands provides a grievance mechanism for internal and external parties to
Independent Commissioner Independent Commissioner
lodge concerns or reports of potential use of conflict-linked minerals in the supply chain. All reports are recorded, analyzed,
and followed up on in accordance with the Company›s grievance management procedures.
Avian Brands continues to strengthen its supply chain monitoring practices through plans to develop supplier risk assessments
The Board of Directors,
and improve its due diligence process. This step is taken to enable the Company to verify the sources of raw materials in
accordance with applicable regulations. The Company will also expand its verification process and improve communication
with suppliers to prevent the use of materials sourced from risky supply chains.
Wijono Tanoko Ruslan Tanoko
President Director Vice President Director
Robert Christian Tanoko Kurnia Hadi Sinanto Angelica Tanisia Jozar
Director Director Director
168 2025 Sustainability Report 2025 Sustainability Report 169
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PT Avia Avian Tbk
Survei Pembaca
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PT Avia Avian Tbk
Response to the Previous Year’s
7. Identity by Stakeholder Category
1. Customer
2.
3.
Employee/Employee Organization
Shareholder
Report Reader Survey
4. Government, Regulator, or Legislative
5. Business Partner The company did not receive any response from stakeholders following the issuance of the 2023 Sustainability Report. Thus, there
is no specific information hereunder regarding the follow-up actions taken by the Company on responses from stakeholders in
6. Mass Media
the previous year.
7. Public
8. Others, please specify ..........................................................................................................................................................................................
8. Would you like to be contacted regarding our next sustainability information? Written Verification from Independent Party
Yes Email address:
No .......................................................................................................................................................................................................................
The Sustainability Report has gone through the assurance process by an independent assurance institution, namely Decar Verite
Asia AA1000 Assurance Standard («AA1000AS»), with the level of Type 2 - Moderate Assurance. The report includes verification of
the performance data on the product pillar, environment pillar, people & community pillar, and governance pillar, as disclosed in
Please send this feedback form to: the Avian Brands Sustainability Report, in line with the Avian Brands Sustainability Strategy (ABSS).
PT Avia Avian Tbk
Avian Brands Building
Jl. Ahmad Yani No. 317
Surabaya 60234, Jawa Timur, Indonesia
corsec@avianbrands.com
investor.relations@avianbrands.com
PT Avia Avian Tbk will treat your information as confidential and will not be used for any other purposes.
172 2025 Sustainability Report 2025 Sustainability Report 173
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PT Avia Avian Tbk
Independent Assurance Statement - Verified the information and evidence as regards the Materiality
No. DECAR-IAS/024/II/2026 references and criteria used;
Through the materiality survey, each stakeholder group
- Communicated the recommendations to provide an
opportunity for corrections; assesses the Company’s impacts. The results are analyzed
Provided by Decar Verite Asia - Reviewed the final content of the Sustainability and classified by significance, with high and medium-rated
On selected disclosures within the scope of work, included in PT Avia Avian Tbk 2025 Sustainability Report. Report; issues determined as material topics and subsequently
- Prepared the statement letter and management reviewed and approved by the Directors. This approach
To: PT Avia Avian Tbk Stakeholders letter, followed by the necessary approval as per Decar ensures that the most relevant and significant topics are
As an independent licensed provider of sustainability assurance services, Decar Verite Asia has been engaged by PT Avia Verite Asia’s assurance protocols. identified and prioritized for appropriate response. Based on
Avian Tbk (“Avian Brands”) to provide independent assurance on the information reported in the PT Avia Avian Tbk’s this process, Decar Verite Asia confirms that Avian Brands
Sustainability Report 2025 (“the Sustainability Report”) for the period beginning on 1st January 2025 and ending on 31st has applied the principles of materiality.
Limitations
December 2025.
Decar Verite Asia planned and performed the work to obtain
sufficient information to support a conclusion at a Moderate Responsiveness
Objective supporting evidence to assess the adherence, reliability, and
Level of Assurance. The process included review of In 2025, Avian Brands updated its Sustainability Policy to
quality of the information against the defined criteria.
The objective of this assurance is to provide an independent governance documents and relevant data, as well as limited strengthen and align its commitments with evolving ESG
opinion on Avian Brands's qualitative and quantitative recalculations using risk-based sampling to reduce, though issues, business needs, and stakeholder expectations. The
information within the scope of work, as well as their Reference and Criteria not eliminate, the risk of error. Decar Verite Asia does not Company also developed Avian Brands’ Sustainability
supporting management system, as stated in the provide assurance on financial data as Avian Brands has Strategy (ABSS), covering all identified material topics and
Decar Verite Asia performed the assurance in accordance
Sustainability Report. The assurance work was conducted engaged other parties to audit the financial statements. The established an ESG Roadmap 2030 with specific goals and
with the AA1000 Assurance Standard v3 (2020). As required
within the define scope and limitations; therefore, this assurance for GHG emissions was conducted based on Avian targets. The roadmap includes climate-related strategies,
under type 2 assurance, the work carried out to evaluate the
statement is not intended to serve as a basis for interpreting Brands' internal calculations, which were reviewed using a such as a commitment to reduce greenhouse gas emissions
reliability and quality of specified sustainability performance
the sustainability or overall performance of Avian Brands. sampling-based approach. No other standard was applied in by 50% by 2030 and to increase the use of clean energy.
and disclosed information, in addition to assessing
verifying the GHG emissions. Accordingly, Avian Brands has demonstrated the principle of
adherence to the AA1000AP (2018). Specific performance
Scope data and information were assessed refer to: responsiveness.
- Regulation of Indonesia Financial Service Authority: Statement of Competency and Independence
Decar Verite Asia conducted a Type 2 assurance
POJK No.51/2017 and SEOJK No.16/2021; and Impact
engagement on selected topics disclosed in the Decar Verite Asia is an independent licensed provider of
- GRI Standards 2021.
Sustainability Report, which are aligned with Avian Brands’ assurance services. Our team of experts possesses the Avian Brands has established processes to identify, monitor,
Sustainability Strategy (ABSS), covering the following areas: technical expertise, competency, and extensive experience measure, evaluate, and manage its material impacts. The
• Customer Relationship Management Responsibilities necessary to conduct assurance engagements on
Company has developed 40 environmentally friendly
1. Product Quality and Safety environmental, social, and various other topics in
PT Avia Avian Tbk products certified by Green Label Singapore, increased the
2. Customer Requirement and Opinion accordance with the AA1000 Assurance Standard. No
use of renewable energy while reducing Scope 1 and Scope
• Environmental Protection Preparing the data in accordance with generally accepted member of the assurance team has a business relationship
with Avian Brands beyond this assignment. Decar Verite Asia 2 emissions, lowered its recordable injury rate, and
1. Water reporting practices. This responsibility also includes ensuring
2. Energy the accuracy and completeness of the information reported, conducted this assurance engagement independently and enhanced employee training programs. These achievements
3. Waste implementing and maintaining internal controls relevant to impartially with no conflicts of interest. have also been recognized by external rating agencies.
4. Material the preparation of the report, ensuring the performance Sustainalytics has classified Avian Brands as a low-risk
• Climate Change data are fairly stated in accordance with applicable company with a score of 17.3, reflecting an improvement
Adherence to AA1000 Accountability Principles (2018)
1. Clean and Renewable Energy standards, as well as ensuring the data and information are compared to 2024. Accordingly, Decar Verite Asia confirms
2. Emission not edited or amended in any way after assurance. Decar Verite Asia has concluded that the selected that Avian Brands has applied the principle of impact.
3. GHG Management Budget Plan disclosures within the scope of assurance, as stated in the
• Social Development Decar Verite Asia Sustainability Report, adhere to the AA1000 Accountability
Principles (2018). POJK No.51/2017 and SEOJK No.16/2021
1. Corporate Social Responsibility
Evaluating the content of the Sustainability Report,
2. Human Rights and Fair Employment The disclosure provided in the Sustainability Report align
assessing collected evidence on the agreed-upon subject
3. Occupational Health and Safety with the disclosure requirements outlined in POJK
matter and criteria, in accordance with the terms of Inclusivity
• Governance No.51/2017 and SEOJK No.16/2021.
reference agreed upon with Avian Brands.
1. Corporate Governance and Performance Avian Brands has identified its significant stakeholders with
2. Whistleblowing System reference to AA1000SES and engages each group through
3. Integrity Management and Compliance with Laws Methodology appropriate mechanisms to understand their interests and Adherence to GRI Standards 2021
and Regulations concerns. These include employee grievance surveys, Decar Verite Asia can confirm that the disclosures are in line
The team undertook the following activities to render their
• Sustainability Supply Chain regular bipartite meetings with employee representatives, with Avian Brands’s claim that the Sustainability Report has
opinion:
1. Supplier selection and Assessment and customer satisfaction surveys. The Company also been prepared with refference to the GRI standards. The
- Conducted an initial review of the material topics in
2. Sustainable Procurement Practices conducts a materiality survey involving shareholders, disclosures of management approach for material topic in
the Sustainability Report to generate a list of evidence
The data and information within the specified disclosures, employees, distributors, suppliers, communities, customers, general are fairly disclosed. The principles to achieving
needed to ensure accuracy and credibility;
including but not limited to, commitment, initiatives, and and media to ensure that stakeholder perspectives are quality sustainability reporting have been applied.
- Engaged with individuals responsible for managing the
performance, were assured to a Moderate Level of considered in determining material topics. Hence, Decar Supporting documents were adequately presented during
material topics;
Assurance. The procedures included evaluating the selected Verite Asia confirms that Avian Brands has applied the the assurance.
- Evaluated the management systems to perform data
disclosures and performing sample-based testing of principle of inclusivity.
collection, compilation, calculation, reporting, and
validation;
Page 1 of 3 Page 2 of 3
174 2025 Sustainability Report 2025 Sustainability Report 175
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PT Avia Avian Tbk
ESG Performance Data*
*Data presented to three decimal places
Conclusions have been materially misstated. The selected disclosures in
the Sustainability Report have been fairly prepared and GRI
Based on the methodology applied and the evidence GRI Disclosure Description Unit 2025 2024 2023
presented, in all material respects, in alignment with the Topic
obtained, within the scope of this assurance engagement,
applicable criteria. The procedures performed reduced the
nothing has come to our attention that causes us to believe
risk of error, but do not reduce the risk to zero. GRI 201: Economic Performance 2016
that the selected disclosures in the Sustainability Report
Direct Economic Value Generated
Bogor, 23rd February 2026
Signed on behalf of Decar Verite Asia Revenue Million Rupiah 8,198,865.000 7,562,742.000 7,186,331.000
Economic Value Distributed
Operating Expenses Million Rupiah 5,249,582.000 4,689,910.000 4,470,422.000
Direct Economic Employee Wages and Benefits Million Rupiah 913,818.000 779,291.000 707,405.000
Corey Pernieda 201-1 Value Generated
Director Payments to Providers of Capital Million Rupiah 1,322,550.000 1,350,681.000 1,367,055.000
Decar Verite Asia
and Distributed
Payments to Government Million Rupiah 397,073.000 380,615.000 482,000.000
Community Investment Million Rupiah 7,740.000 4,944.000 3,940.000
Total Economic Value Distributed Million Rupiah 7,890,763.000 7,205,441.000 7,030,822.000
Retained Economic Value Million Rupiah 308,102.000 357,301.000 155,509.000
GRI 205: Anti-corruption 2016
Percentage of employees who
have been informed about the All (100%) of employees and governance bodies
Communication %
Code of Ethics, Business Ethics, have received training and socialization programs
and Training about and Code of Conduct policies on the principles of the Code of Ethics, explanations
205-2 Anti-Corruption
Percentage of employees who of appropriate conduct, and prohibitions on
Policies and
have been informed about the corruption, gratification, and bribery. Further
Procedures %
Anti-Corruption Policies and information is available on page 159.
Procedures
Cases of confirmed and resolved
Total 1 1 0
Confirmed corruption incidents
Incidents of Number of employees subject to
205-3
Corruption and disciplinary action or dismissed
Actions Taken Total 1 1 0
for non-compliance with anti-
corruption policies
GRI 301: Materials 2016
Non-renewable materials used Tons 90,063.168 69,528.100 70,887.410
Renewable materials used Tons 117,435.918 89,589.480 72,903.200
Materials Used by
301-1 Total materials used Tons 207,499.085 159,117.580 143,790.610
Weight or Volume
Percentage of renewable
% 56.596% 56.304% 50.701%
materials used
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GRI GRI
GRI Disclosure Description Unit 2025 2024 2023 GRI Disclosure Description Unit 2025 2024 2023
Topic Topic
Material Reuse by Product Type Category 4: Upstream
GJ 10,389.315 10,359.372
Transportation and Distribution Data is not yet
Sludge & Leftover Paints from Upstream and
Tons 4,380.988 2,731.090 1,882.530 available as it
Projects downstream Category 9: Downstream
103-3 GJ 113,872.638 108,808.180 is still under
energy Transportation and Distribution
Washing Solvent Tons 235.842 151.190 166.270 inventory
consumption
Total energy consumption process
Total Reuse of Materials Tons 4,616.830 2,882.280 2,048.800 GJ 124,261.953 119,167.552
outside the organization
Recycled Input Material Reuse by Product Type kWh/Ton 38.207 46.992 49.575
301-2
Materials Used 103-4 Energy intensity Energy intensity
Sludge & Leftover Paints from kg/Ton of GJ/Ton 0.138 0.169 0.178
26.920 16.970 11.910
Projects Paint Products
Total reduction in energy
kg/Ton of Reduction Full details of the energy consumption reduction
consumption achieved as
Washing Solvent Solvent- Based 8.577 6.812 5.680 103-5 in energy GJ programs are available in the Energy Efficiency
a direct result of efficiency and
Products consumption chapter on page 90.
conservation initiatives
Ratio of Recycled Material Use % 2.225% 1.811% 1.425% GRI 303: Water and Effluents 2018
Reclaimed From 2023 to 2025, all of Avian Brands’ products m³ 128,938.000 88,270.000 99,320.000
products and Sludge & Leftover Paints from kg/Ton of were well absorbed in the market and there were no Groundwater withdrawal
301-3 Megaliter 128.938 88.270 99.320
their packaging Projects Paint Products product recalls related to products’ nonconformities
materials or other reasons.
m³ 62,800.000 54,210.000 42,360.000
GRI 103: Energy 2025 Third-party water withdrawal
Megaliter 62.800 54.210 42.360
Consumption of Non-renewable Energy
Total water withdrawn from all m³ 191,738.000 142,480.000 141,680.000
GJ 48,922.978 53,110.950 51,149.380 303-3 Water Withdrawal
sources Megaliter 191.738 142.480 141.680
Electricity consumption
kWh 13,589,716.120 14,753,041.667 14,208,160.980
Total water withdrawal from
Diesel consumption GJ 2,871.914 2,857.657 3,405.693 areas with high or very high Megaliter
water stress Avian Brands does not withdraw water from
Gas consumption GJ 39,554.034 43,494.898 43,561.136 areas with high or very high water stress. Further
Percentage of water withdrawn information is available on page 94.
GJ 91,348.927 99,463.504 98,116.208 from areas with high or very high %
Total Consumption of
water stress
Non-renewable Energy kWh 25,374,701.810 27,628,751.207 27,254,502.228
Discharge of Water into Water Bodies/Wastewater
Consumption of Renewable Energy
m³ 5,350.000 4,680.000 3,710.000
Consumption of electricity from GJ 5,400.000 0.000 0.000 Domestic
Megaliter 5.350 4.680 3.710
hydropower plants kWh 1,500,000.000 0.000 0.000
Energy
consumption and 303-4 Water Discharge m³ 274.200 257.300 198.400
Consumption from solar panels GJ 3,973.150 2,013.120 1,814.710 Industry
103-2 self-generation Megaliter 0.274 0.257 0.198
within the (self-generated) kWh 1,103,652.660 559,200.000 504,086.111
organization Total Discharge of Water into m³ 5,624.200 4,937.300 3,908.400
Total consumption of renewable GJ 9,373.150 2,013.120 1,814.710 Water Bodies/Wastewater Megaliter 5.624 4.937 3.908
energy kWh 2,603,652.660 559,200.000 504,086.111
m³ 186,113.800 137,542.700 137,771.600
Total Energy Consumption Total water consumed
Megaliter 186.114 137.543 137.772
Total consumption of renewable GJ 100,722.076 101,476.624 99,930.918
Avian Brands conducts water risk analysis using
and non-renewable energy kWh 27,978,354.470 28,187,951.207 27,758,588.339 the Water Risk Filter from the World Wide Fund for
Total water consumed from areas Nature, showing that all Avian Brands plant locations
Energy Percentage with high or very high water m³ are at very low and medium risk levels. This indicates
stress that Avian Brands does not consume water in areas
Percentage of renewable energy
% 9.306% 1.984% 1.816% Water with high or very high water risks. Further information
compared to total energy 303-5
consumption is available on page 94
Percentage of electricity supplied
Percentage of water consumed
by third parties compared to % 48.572% 52.338% 51.185% from areas with high or very high % 0.000 0.000 0.000
total energy water stress
m3/Ton of
0.988 0.746 0.810
Product
Water Intensity
Megaliter/Ton
0.000988 0.000746 0.000807
of Product
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GRI GRI
GRI Disclosure Description Unit 2025 2024 2023 GRI Disclosure Description Unit 2025 2024 2023
Topic Topic
GRI 305: Emissions 2016 Reuse of Hazardous Waste
Direct Emissions from Stationary Leftover Paints from Projects Ton 4,261.088 2,650.140 1,820.240
TonCO2e 2,279.774 2,506.914 2,510.732
Combustion
Direct (Scope 1) Washing Solvent Ton 235.842 151.190 166.270
305-1 Direct Emissions from Mobile
GHG Emissions TonCO2e 211.768 210.718 251.129
Combustion Sludge Ton 119.900 80.950 62.290
Total Scope 1 Emissions TonCO2e 2,491.543 2,717.632 2,761.861 Total Reuse of Hazardous Waste Ton 4,616.830 2,882.280 2,048.800
Indirect Emissions from Hazardous Waste Handed Over to Licensed Third Parties
Energy Indirect Consumption of Electricity TonCO2e 7,244.655 8,564.959 8,581.653
305-2 (Scope 2) GHG Purchased from PLN Solid Ton 633.127 642.500 806.690
Emissions
Total Scope 2 Emissions TonCO2e 7,244.655 8,564.959 8,581.653 Liquid Ton 76.440 91.440 80.080
Category 4: Upstream Waste Diverted Total Hazardous Waste Handed
TonCO2e 766.088 602.990 306-4 Ton 709.567 733.940 886.770
Transportation and Distribution from Disposal Over to Licensed Third Parties
Data is not yet
Other indirect Category 9: Downstream available as it 3R of Household-type Waste
305-3 (Scope 3) GHG TonCO2e 8,396.753 8,111.540 is still under
Transportation and Distribution
emissions inventory Data is not yet
Category 11: Use of Products Sold TonCO2e 51,601.323 54,342.140 process available as it
Total 3R of Household-type Waste Ton 1,089.230 1,617.399 is still under
Total Scope 3 Emissions TonCO2e 60,764.164 63,056.670 inventory
Total of Scope 1 and 2 Emissions TonCO2e 9,736.198 11,282.591 11,343.514 process.
Data is not yet
KgCO2e/Ton 17.212 23.335 24.546
Household-type Waste handled/ available as it
GHG Emission TonCO2e/Ton 0.017 0.023 0.025 managed by a third party (TPS 3R Ton 97.230 96.320 is still under
305-4 Intensity of Scope 1 and Scope 2
Intensity Wadungasih Berseri) inventory
GHG Emissions TonCO2e/ process.
Thousand 0.0000012 0.0000015 0.0000016
Rupiah Hazardous waste management is carried out in
collaboration with third parties (transporters,
GHG emissions reduced as Full details of the GHG emission reduction programs Hazardous waste directed to
Reduction of GHG Ton collectors, and managers), so that no hazardous
305-5 a direct result of reduction TonCO2e are available in the Emissions Management section disposal at a landfill
emissions waste is sent to landfills. Further information is
initiatives on pages 97-98. available on page 103.
Results from the evaluation of all manufacturing Effluent Discharge from Water
Emissions of activities show that there is no use or release of Waste directed to
Emissions of ozone depleting 306-5 Treatment Plant and Sewage Megaliter 5.470 5.180 3.830
305-6 Ozone-Depleting CFC-ton ODS in the manufacturing process of Avian Brands disposal
substances (ODS) Treatment Plant Processes
Substances products. Further information is available on page
100 Household-type waste management is carried out in
collaboration with a third party (TPS 3R Wadungasih
Nitrogen Oxides Household-type waste directed
Nitrogen Oxides (NOx) mg/Nm3 31 4 21 Ton Berseri), so that no household-type waste is sent to
(NOx), Sulfur to disposal at a landfill
the landfill. Further information is available on page
305-7 Oxides (SOx), and 104.
Other Significant Sulfur Oxides (SOx) mg/Nm3 38 25 40
Air Emissions GRI 308: Penilaian Lingkungan Pemasok 2016
GRI 306: Waste 2020 New Suppliers
Over the past three years, all new suppliers have
that were Percentage of new suppliers
Hazardous waste (B3) been selected using environmental criteria through
308-1 Screened Using selected using environmental %
the Avian Brands ESG assessment questionnaire.
Solid Ton 753.027 723.450 868.980 Environmental criteria
Further information is available on page 167.
Criteria
Liquid Ton 4,573.370 2,892.770 2,066.590
Total hazardous waste (B3)
Ton 5,326.397 3,616.220 2,935.570
generated
306-3 Waste Generated
Household-type Waste
Data is not yet
available as it
Total household-type waste
Ton 1,186.460 1,713.719 is still under
generated
inventory
process.
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GRI GRI
GRI Disclosure Description Unit 2025 2024 2023 GRI Disclosure Description Unit 2025 2024 2023
Topic Topic
GRI 403: Occupational Health and Safety 2018 GRI 405: Diversity and Equal Opportunity 2016
Employees receiving MCU Individual 1,228 1,019 1,380 Diversity of the Board of Commissioners by Age and Gender
OHS Performance in Manufacturing Operations (AVIA) Male
Number of Fatality Total 0 0 0 > 50 years old Total 3 2 2
Lost Time Injury Total 1 0 0 30 - 50 years old Total 0 0 0
Number of recorded workplace < 30 years old Total 0 0 0
Total 3 3 2
accidents (LTI, MTI, FTI)
Total Male Members of Board of
Number of Transport Incidents Total 3 2 2
Commissioners
Notes: Transport incidents are
Total 0 0 0 Ratio of Male Members of Board
part of the total number of % 100% 100% 100%
of Commissioners
recorded workplace accidents
Female
Process Safety Incidents Total 0 1 0
> 50 years old Total 0 0 0
Number of working hours Hours 3,741,957.000 3,691,036.000 3,506,349.000
30 - 50 years old Total 0 0 0
Fatal Incident Rate per 1,000,000 Per 1.000.000
0.000 0.000 0.000
working hours hours < 30 years old Total 0 0 0
Lost Time Injury Rate/LTIR per Per 1.000.000 Total Female Members of Board
0.267 0.000 0.000 Total 0 0 0
1,000,000 working hours hours of Commissioners
Total Recordable Injury Rate/TRIR Per 1.000.000 Ratio of Female Members of
Work-related 0.802 0.813 0.570 % 0% 0% 0%
403-9 per 1,000,000 working hours hours Board of Commissioners
Injuries
OHS Performance in Distribution & Transportation (TKTW) Total Members of Board of
Total 3 2 2
Commissioners
Number of Fatality Total 0 0 0
Diversity of Diversity of the Board of Directors by Age and Gender
Lost Time Injury Total 31 30 37 Governance
405-1 Male
Bodies and
Number of recorded workplace Employees
Total 47 36 43 > 50 years old Total 2 2 2
accidents (LTI, MTI, FTI)
Number of Transport Incidents 30 - 50 years old Total 2 2 2
Notes: Transport incidents are
Total 30 34 36 < 30 years old Total 0 0 0
part of the total number of
recorded workplace accidents Total Male Members of
Total 4 4 4
the Board of Directors
Process Safety Incidents hours 0 0 0
Ratio of Male Members of
Per 1.000.000 % 80% 80% 80%
Number of working hours 15,578,206.000 15,370,005.000 13,629,504.000 the Board of Directors
hours
Female
Fatal Incident Rate per 1,000,000 Per 1.000.000
0.000 0.000 0.000
working hours hours > 50 years old Total 0 0 0
Lost Time Injury Rate/LTIR per Per 1.000.000 30 - 50 years old Total 1 1 1
1.990 1.952 2.715
1,000,000 working hours hours
< 30 years old Total 0 0 0
Total Recordable Injury Rate/TRIR
Total 3.017 2.342 3.155
per 1,000,000 working hours Total Female Members of the
Total 1 1 1
Board of Directors
Work-related Ill
403-10 Number of Work-related Ill Health Total 0.00 0.00 0.00 Ratio of Female Members of the
Health % 20% 20% 20%
Board of Directors
GRI 404: Training and Education 2016
Total Members of the Board of
Average training hours per year Total 5 5 5
Training hours 13,457 15,510 15,130 Directors
Average Hours of employee
Ratio of female employee
404-1 Training per Year Average training hours of the involvement at the management
per Employee Board of Commissioners and Training hours 11,688 9,417 28,714 % 14.022% 14.599% 14.231%
level (Managers & Deputy
the Board of Directors Directors)
Percentage Ratio of Basic Ratio of basic salary and
Percentage of total employees
of Employees Salary and remuneration for female
by gender and by category of 405-2 Ratio 1:1 1:1 1:1
Receiving Regular All (100%) of employees have undergone annual Remuneration of employees compared to male
employees receiving regular
404-3 Performance % performance evaluations. For further information, Women to Men employees
performance and career
and Career see page 127.
development reviews during the
Development
reporting period
Reviews
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GRI
Topic
GRI Disclosure Description Unit 2025 2024 2023 List of GRI Standards Indexes for 2021 –
GRI 406: Non-discrimination 2016 with Reference
Over the past three years, there have been no
Total number of discrimination incidents of discrimination within Avian Brands’
incidents during the reporting Total environment based on complaints received
period through the Whistleblowing System (WBS). Further Statement on PT Avia Avian Tbk has reported the information cited in the GRI content index for the period from January 1 -
information is available on page 134. Utilization December 31, 2025 with reference to the GRI Standards.
Over the past three years, there have been no GRI 1 utilized GRI 1: Foundation 2021
Incidents of
Total number of human rights incidents of human rights violations within Avian
Discrimination
406-1 violations during the reporting Total Brands’ environment based on complaints received
and Corrective GRI
period through the Whistleblowing System (WBS). Further
Actions Taken
information is available on page 136. Disclosure Location of Disclosure
Index
All (100%) of employees have received training and
socialization on the basic understanding of the GRI 2: General Disclosures 2021
Internal training for all employees
% principles of Human Rights and their responsibility in
regarding Human Rights Policy 1 The Organization and Its Reporting Practices
creating a safe environment that respects individual
rights. Further information is available on page 134.
2-1 Organizational Details Avian Brands’ Identity - page 34
GRI 413: Local Communities 2016
Entities Included in the Organization’s Sustainability
Operations with Number of Corporate Social 2-2 Reporting Boundaries and Scope - page 2
Reporting
local community Responsibility programs Program 264 195 98
engagement, implemented Reporting Period, Frequency, Information Restatements, and
413-1 impact 2-3 Reporting Period, Frequency, and Contact Point
Contact - page 3
assessments, and Investment in Corporate Social
development Million Rupiah 5,253 2,344 1,995 Reporting Period, Frequency, Information Restatements, and
Responsibility programs 2-4 Restatements of Information
programs Contact - page 3
GRI 414: Supplier Social Assessment 2016 2-5 External Assurance External Verification and Validation (Assurance) - page 2
Percentage of suppliers who have 2 Activities and Workers
been informed about the Code All (100%) suppliers who have been informed
% about the Code of Ethics and Code of Conduct
of Ethics and Code of Conduct Avian Brands’ Identity - page 34
policies policies. All prospective partners and suppliers must
comply with the cooperation requirements and Business Units, Products, and Segmentation - page 40
New Suppliers Percentage of target suppliers sign all required documents, including the Code of 2-6 Activities, Value Chain, and Other Business Relationships Manufacturing Facilities - page 46
that were who have signed the Code of Ethics and Code of Conduct. Further information is Supply Chain - page 48
414-1 %
Screened Using Ethics, Business Ethics, and Code available on page 159-160. Served Markets - page 73
Social Criteria of Conduct policies
2-7 Employees Employee Demography - page 112
Over the past three years, all (100%) of new suppliers
Percentage of new suppliers have been selected using social criteria through the
% 2-8 Workers Who are Not Employees Employee Demography - page 112
selected using social criteria Avian Brands ESG assessment questionnaire. Further
information is available on page 167.
3 Governance
GRI 416: Customer Health and Safety 2016
Board of Commissioners - page 155
Assessment of 2-9 Governance Structure and Composition
Board of Directors - page 157
the Health and Incidents of non-compliance with Over the past three years, there have been no
416-1 Safety Impacts health and safety of products and Total incidents classified as product safety violations. Nomination and Selection of the Highest Governance Board of Commissioners - page 155
2-10
of Product and services Further information is available on page 71. Body Board of Directors - page 157
Service Categories
Avian Brands Sustainability Governance - page 32
2-11 Chair of the Highest Governance Body
GRI 417: Marketing and Labeling 2016 General Meeting of Shareholders - page 155
Incidents of Sustainability Management Review - page 20
Non-Compliance Role of the Highest Governance Body in Overseeing the Avian Brands Sustainability Governance - page 32
concerning Incidents of non-compliance 2-12
Management of Impacts Board of Commissioners - page 155
417-2 Product concerning product and service Total Board of Directors - page 157
and Service information and labeling Over the past three years, there have been no
Information and reports or complaints regarding non-compliance Sustainability Management Review - page 20
Labeling in the delivery of product information, product Avian Brands Sustainability Governance - page 32
2-13 Delegation of Responsibility for Managing Impacts
Incidents of labeling, or marketing communications Board of Commissioners - page 155
Non-Compliance Incidents of non-compliance Board of Directors - page 157
417-3 concerning concerning marketing Total
Sustainability Management Review - page 20
Marketing communications
Communications Role of the Highest Governance Body in Sustainability Avian Brands Sustainability Governance - page 32
2-14
Reporting Board of Commissioners - page 155
GRI 418: Customer Privacy 2016 Board of Directors - page 157
Substantiated 2-15 Conflicts of Interest Conflict of Interest Guidelines - page 161
Complaints
Over the past three years, there have been no
concerning Total number of complaints Whistleblowing System - page 166
reports or complaints regarding non-compliance 2-16 Communication of Critical Concerns
418-1 Breaches of regarding breaches of customer Total Complaints on Environmental Issues - page 107
in the delivery of product information, product
Customer Privacy privacy
labeling, or marketing communications
and Losses of
Customer Data
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GRI GRI
Disclosure Location of Disclosure Disclosure Location of Disclosure
Index Index
2-17 Collective Knowledge of the Highest Governance Body Competence Development Related to Sustainability - page 122 GRI 202: Market Presence 2016
Evaluation of the Performance of the Highest Board of Commissioners - page 155 Ratios of Standard Entry Level Wage by Gender Remunerations - Comparison of AVIA Employee Wages of the
2-18 202-1
Governance Body Board of Directors - page 157 Compared to Local Minimum Wage Lowest Level to the Regional Minimum Wage - page 128
2-19 Remuneration Policies Remunerations - page 128 Proportion of senior management hired from the local
202-2 Empowerment of Local Labors - page 115
community
2-20 Process to Determine Remuneration Remunerations - page 128
GRI 203: Indirect Economic Impacts 2016
2-21 Annual Total Compensation Ratio Annual Total Compensation Ratio - page 130
Clean Water Pipeline Installation in Wotan Village - page 147
203-1 Infrastructure investments and services supported
4 Strategy, policy and practice Land Utilization for Urban Farming - page 147
Foreword from the President Commissioner - page 6 203-2 Significant Indirect Economic Impacts Empowerment of Local Labors - page 115
2-22 Statement on Sustainable Development Strategy
Foreword from the President Director - page 8
GRI 204: Procurement Practices 2016
Avian Brands Sustainability Strategy - page 18
2-23 Policy Commitments 204-1 Proportion of spending on local suppliers Proportion of Procurement from Local Suppliers - page 168
Avian Brands Sustainability Policy - page 19
Support for the Sustainable Development Goals (SDGs) - page 22 GRI 205: Anti-corruption 2016
Avian Brands Sustainability Strategy - page 18
2-24 Embedding Policy Commitments Avian Brands Sustainability Policy - page 19 205-1 Operations Assessed for Risks related to Corruption
Sustainability Management Review - page 20 Anti-Fraud, Anti-Gratification, and Anti-Corruption Policies - page
Communication and Training about Anti-Corruption
Sustainability Strategy Related to Climate Change - page 23 205-2 162
Policies and Procedures
ESG Performance Data - GRI 205: Anti-corruption 2016 - page 177
Customer Complaint - page 79
Complaints on Environmental Issues – page 107 205-3 Confirmed Incidents of Corruption and Actions Taken
2-25 Processes to Remediate Negative Impacts
Human Rights Complaint Mechanism - page 136
GRI 206: Anti-competitive Behavior 2016
Complaints on Labor and OHS Issues - page 142
Legal actions for anti-competitive behavior, anti-trust, Legal Actions for Anti-competitive Behavior, Anti-Trust, and
2-26 Mechanisms for Seeking Advice and Raising Concerns Whistleblowing System - page 166 206-1
and monopoly practices Monopoly Practices - page 160
2-27 Compliance with Laws and Regulations Compliance with prevailing Laws and Regulations - page 164 GRI 207: Tax 2019
Membership in Associations - page 52
2-28 Membership Associations 207-1 Approach to Tax
Membership in United Nations Global Compact (UNGC) - page 52 Taxation Governance - page 163
5 Stakeholder engagement 207-2 Tax Governance, Control, and Risk Management
2-29 Approach to Stakeholder Engagement Stakeholder Identification - page 62 GRI 301: Materials 2016
Environmental Impact Management Strategy - page 84
2-30 Collective Bargaining Agreements Freedom of Assembly and Association - page 133 3-3 Management of Material Topics
Sustainable Production Process - page 88
GRI 3: Material Topics 2021 ESG Performance Data - GRI 301: Material 2016 - page 177
301-1 Materials Used by Weight or Volume
Sustainable Production Process - page 88
3-1 Process to Determine Material Topics
Determination of Material Topics - page 60 ESG Performance Data - GRI 301: Material 2016 - page 177
301-2 Recycled Input Materials Used
3-2 List of Material Topics Material Recycling and Circular Economy Initiatives - page 89
GRI 103: Energy 2025 ESG Performance Data - GRI 301: Material 2016 - page 178
301-3 Reclaimed products and their packaging materials
Product Safety and Quality - page 73
103-1 Energy policies and commitments Energy Usage - page 90
GRI 303: Water and Effluents 2018
Energy consumption and self-generation within the
103-2 Environmental Impact Management Strategy - page 84
organization 3-3 Management of Material Topics
Energy Usage - page 91-92 Water Usage - page 94
103-3 Upstream and downstream energy consumption ESG Performance Data - GRI 103: Energy 2025 - page 178
303-1 Interaction with Water as a Shared Resource Water Usage - page 94
103-4 Energy intensity
303-2 Management of Water Discharge-Related Impacts Water Usage - page 95
103-5 Reduction in energy consumption Energy Usage - page 90-91
303-3 Water Withdrawal
GRI 201: Economic Performance 2016
303-4 Water Discharge ESG Performance Data - GRI 303: Water and Effluents 2018 - page 179
ESG Performance Data - GRI 201: Economic Performance 2016 -
201-1 Direct Economic Value Generated and Distributed 303-5 Water consumption
page 177
Financial implications and other risks and opportunities
201-2 Sustainability Strategy Related to Climate Change - page 23
due to climate change
Defined benefit plan obligations and other retirement
201-3 Benefit Programs Supporting All Aspects of Life - page 130
plans
201-4 Financial assistance received from government Financial Assistance Received from Government - page 163
186 2025 Sustainability Report 186 2025 Sustainability Report 187
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GRI GRI
Disclosure Location of Disclosure Disclosure Location of Disclosure
Index Index
GRI 305: Emissions 2016 Worker Participation, Consultation, and Communication
403-4 Occupational Health and Safety Management System - page 136
on Occupational Health and Safety
3-3 Management of Material Topics Emissions Management - page 97
403-5 Worker training on Occupational Health and Safety OHSMS Implementation - page 137
305-1 Direct (Scope 1) GHG Emissions
403-6 Promotion of Worker Health Health Facilities and Access - page 138
305-2 Energy Indirect (Scope 2) GHG Emissions ESG Performance Data - GRI 305: Emissions 2016 - page 180 Prevention and Mitigation of Occupational Health and Hazard Identification, Risk Assessment, and Investigation - page
Emissions Management - page 97-100 403-7
305-3 Other indirect (Scope 3) GHG emissions Safety Impacts Directly Linked by Business Relationships 140
Workers Covered by an Occupational Health and Safety
305-4 GHG Emission Intensity 403-8 Occupational Health and Safety Management System - page 136
Management System
305-5 Reduction of GHG emissions Emissions Management - page 97 Occupational Health and Safety Performance - page 141
403-9 Work-related Injuries ESG Performance Data - GRI 403: Occupational Health and Safety
305-6 Emissions of Ozone-Depleting Substances Emissions of Ozone Depleting Substances - page 100 2018 - page 182
Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and Other Air Emissions of Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and Occupational Health and Safety Performance - page 141
305-7
Significant Air Emissions Other Significant Air Emissions - page 101 403-10 Work-related Ill Health ESG Performance Data - GRI 403: Occupational Health and Safety
GRI 306: Waste 2020 2018 - page 182
Environmental Impact Management Strategy - page 84 GRI 404: Training and Education 2016
3-3 Management of Material Topics
Waste Management and Utilization - page 102 3-3 Management of Material Topics Employee Competence Development - page 120
306-1 Waste Generation and Significant Waste-related Impacts Waste Management and Utilization - page 102 Average Training Hours of Employees - page 121
Hazardous Waste Management - page 103 404-1 Average Hours of Training per Year per Employee ESG Performance Data - GRI 404: Training and Education 2016 -
306-2 Management of Significant Waste-related Impacts page 183
Household-type Waste Management - page 104
306-3 Waste Generated Employee Competence Development - page 120
Programs for Upgrading Employee Skills and Transition Competence Development Related to Sustainability - page 122
ESG Performance Data - GRI 306: Waste 2020 404-2
306-4 Waste Diverted from Disposal Assistance Programs Continuous Improvement Program - page 125
Waste Management and Utilization - page 102-104 External Human Resources Development - page 126
306-5 Waste directed to disposal
Performance Evaluation - page 127
Percentage of Employees Receiving Regular
GRI 308: Supplier Environmental Assessment 2016 404-3 ESG Performance Data - GRI 404: Training and Education 2016 -
Performance and Career Development Reviews
page 183
3-3 Management of Material Topics Sustainable Procurement Practices - page 167
GRI 405: Diversity and Equal Opportunity 2016
New Suppliers that were Screened Using Environmental
308-1 Sustainability Assessment for Suppliers - page 167 3-3 Management of Material Topics Diversity and Equality - page 112
Criteria
Negative environmental impacts in the supply chain ESG Performance Data - GRI 405: Diversity and Equal Opportunities
308-2 Sustainable Procurement Practices - page 167 405-1 Diversity of Governance Bodies and Employees
and actions taken 2016 - page 183
GRI 401: Employment 2016 Remunerations - page 128
Ratio of Basic Salary and Remuneration of Women to
405-2 ESG Performance Data - GRI 405: Diversity and Equal Opportunities
Men
3-3 Management of Material Topics Employee Recruitment and Turnover - page 116 2016 - page 184
401-1 New Employee Hires and Employee Turnover Employee Recruitment and Turnover - page 116 GRI 406: Non-discrimination 2016
Benefits Provided to Full-time Employees that are not Benefits Received by Avian Brands’ Employees - page 127 3-3 Management of Material Topics Diversity and Equality - page 112
401-2
Provided to Temporary or Part-Time Employees Benefit Programs Supporting All Aspects of Life - page 128
ESG Performance Data - GRI 406: Non-Discrimination 2016 - page 184
406-1 Incidents of Discrimination and Corrective Actions Taken
401-3 Parental Leave Benefit Programs Supporting All Aspects of Life - page 128 Human Rights Complaint Mechanism - page 136
GRI 402: Labor/Management Relations 2016 GRI 407: Freedom of Association and Collective Bargaining 2016
Minimum Notice Periods regarding Operational 3-3 Manajemen topik material Industrial Relations - page 131
402-1 Minimum Notice of Changes in the Work Environment - page 133
Changes
Operations and suppliers where the rights to freedom of
407-1 Freedom of Assembly and Association - page 133
GRI 403: Occupational Health and Safety 2018 association and collective bargaining may be at risk
3-3 Management of Material Topics Occupational Health and Safety Management System - page 136 GRI 408: Child Labor 2016
Occupational Health and Safety Management System - page 136 3-3 Management of Material Topics Anti-Child Labor and Anti-Forced Labor Policy - page 135
403-1 Occupational Health and Safety Management System OHSMS Management Structure - page 137
OHSMS Implementation - page 137 Operations and suppliers at significant risk for child
408-1 Anti-Child Labor and Anti-Forced Labor Policy - page 135
labor
Hazard Identification, Risk Assessment, and Incident Hazard Identification, Risk Assessment, and Investigation - page
403-2
Investigation 140
403-3 Occupational Health Services Health Facilities and Access - page 138
188 2025 Sustainability Report 2025 Sustainability Report 189
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GRI
Index
Disclosure Location of Disclosure List of Sustainability Accounting Standards
GRI 409: Forced or Compulsory Labor 2016 Board (“SASB”) Chemicals Sector
3-3 Management of Material Topics
Operations and Suppliers at Significant Risk for
Anti-Child Labor and Anti-Forced Labor Policy - page 135
Anti-Child Labor and Anti-Forced Labor Policy - page 133
Version 2023-12
409-1
Incidents of Forced or Compulsory Labor Sustainable Procurement Practices - page 167
GRI 411: Rights of Indigenous Peoples 2016
Topic Index Code Metric Location of Disclosure
Avian Brands’ operational areas are not located on lands or
areas belonging to indigenous communities. Nevertheless, we Emissions Management - page 97
Incidents of Violations Involving Rights of Indigenous Gross Global Scope 1 Emissions, Percentage
411-1 are committed to making a positive impact on the surrounding RT-CH-110a.1. ESG Performance Data - GRI 305:
Peoples Covered under Emissions-Limiting Regulations
community through various community development activities in Greenhouse Emissions 2016 - page 180
our Corporate Social Responsibility program Gas Emissions Discussion of Long- and Short-Term Strategy or Plan
GRI 413: Local Communities 2016 to Manage Scope 1 Emissions, Emissions Reduction
RT-CH-110a.2 Emissions Management - page 97
Targets, and an Analysis of Performance Against
Corporate Social Responsibility - page 142 Those Targets
3-3 Management of Material Topics
Avian Brands Peduli: Coloring Indonesia - page 148
Air Emissions of Nitrogen Oxides
Air Emissions of the Following Pollutants: (1) NOX
Empowerment of Local Employees - page 115 (NOx), Sulfur Oxides (SOx), and Other
Operations with Local Community Engagement, Impact (Excluding N2O), (2) SOX, (3) Volatile Organic
413-1 Corporate Social Responsibility - page 142 Air Quality RT-CH-120a.1 Significant Air Emissions - page 101
Assessments, and Development Programs Compounds (“Vocs”), and (4) Hazardous Air
Avian Brands Peduli: Coloring Indonesia - page 148 ESG Performance Data - GRI 305:
Pollutants (“Haps”)
Operations with Significant Actual and Potential ESG Performance Data - GRI 413: Local Communities 2016 - page Emissions 2016 - page 180
413-2
Negative Impacts on Local Communities 184 Energy Consumption within the
Energy (1) Total Energy Consumed, (2) Percentage Grid
Organization - page 91
GRI 414: Supplier Social Assessment 2016 Management RT-CH-130a.1 Electricity, (3) Percentage Renewable And (4) Total
ESG Performance Data - GRI 103: Energi
Self-Generated Energy
3-3 Management of Material Topics Sustainable Procurement Practices - page 167 2015 - page 178
(1) Total Water Withdrawn, (2) Total Water
414-1 New Suppliers that were Screened Using Social Criteria Sustainable Procurement Practices - page 167 ESG Performance Data - GRI 303: Water
RT-CH-140a.1 Consumed; Percentage of Each in Regions with
ESG Performance Data - GRI 414: Supplier Social Assessment 2016 and Effluent 2018 - page 179
Operations that actually or potentially have a significant High or Extremely High Baseline Water Stress
414-2 - page 184
negative impact on the local community Water Number of incidents of non-compliance associated
ESG Performance Data - GRI 303: Water
GRI 415: Public Policy 2016 Management RT-CH-140a.2 with water quality permits, standards and
and Effluent 2018 - page 179
regulations
3-3 Management of Material Topics Description of water management risks and
Statement of Non-Contribution to Politics - page 164 RT-CH-140a.3 discussion of strategies and practices to mitigate Water Usage - page 94
415-1 Political Contributions
those risks
GRI 416: Kesehatan dan Keselamatan Pelanggan 2016 Hazardous Waste Management - page
Hazardous
(1) Amount of hazardous waste 103
3-3 Management of Material Topics Health and Safety of Products and Services - page 69 Waste RT-CH-150a.1
Generated, (2) percentage recycled ESG Performance Data - GRI 306: Waste
Management
Assessment of the Health and Safety Impacts of Product 2020 - page 180
416-1 Health and Safety of Products and Services - page 69
and Service Categories Discussion of engagement processes to manage
Community Stakeholder Engagement
Evaluations of Health and Safety of Products and Services - page 71 RT-CH-210a.1 risks and opportunities associated with community
Incidents of non-compliance relating to the health and Relations (Community)- page 64
416-2 ESG Performance Data - GRI 416: Customer Health and Safety 2016 interests
safety impacts of products and services
- page 184 Occupational Health and Safety
GRI 417: Marketing and Labeling 2016 (1) Total recordable incident rate (“TRIR”) and (2) Performance - page 141
RT-CH-320a.1 fatality rate for (a) direct employees and (b) contract ESG Performance Data - GRI 403:
3-3 Management of Material Topics Fair and Responsible Marketing Practices - page 74 Workforce employees Occupational Health and Safety 2018
Health & - page 182
Requirements for Product and Service Information and Safety
417-1 Marketing Compliance and Governance - page 74 Description of Efforts to Assess, Monitor, and
Labeling Occupational Health and Safety
RT-CH-320a.2 Reduce Exposure of Employees and Contract
Incidents of Non-Compliance concerning Product and ESG Performance Data - GRI 417: Marketing and Labeling 2016 - Management System - page 136
417-2 Workers to Long-Term (Chronic) Health Risks
Service Information and Labeling page 184
Product Design
Incidents of Non-Compliance concerning Marketing ESG Performance Data - GRI 417: Marketing and Labeling 2016 - Revenue from Products Designed for Use-Phase Revenue from Sustainable Products -
417-3 for Use-phase RT-CH-410a.1
Communications page 184 Resource Efficiency page 77
Efficiency
GRI 418: Customer Privacy 2016
3-3 Management of Material Topics Cybersecurity, Data Privacy, & IT Governance - page 164
Cybersecurity, Data Privacy, & IT Governance - page 164
Substantiated Complaints concerning Breaches of
418-1 ESG Performance Data - GRI 418: Customer Privacy 2016
Customer Privacy and Losses of Customer Data
- page 184
190 2025 Sustainability Report 2025 Sustainability Report 191
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Topic Index Code Metric Location of Disclosure Index No. Name of Index Disclosure Page
(1) Percentage of Products That Contain Globally C.3 Company Classification 34-36; 50
Harmonised System of Classification and Labelling Health and Safety of Products and
of Chemicals (GHS) Category 1 and 2 Health and Services - page 69 C.4 Products, Services, and Operated Business 34-36; 40-46
RT-CH-410b.1
Environmental Hazardous Substances, Evaluations of Health and Safety of C.5 Membership Associations 52
Safety & (2) Percentage of Such Products That Have Products and Services - page 71
Environmental Undergone a Hazard Assessment C.6 Significant Organizational Change 3; 35
Stewardship of Comment by the Board of Directors
Chemicals Health and Safety of Products and
Discussion of Strategy to (1) Manage
Services - page 69 D.1 Comment by the Board of Directors 6-9
RT-CH-410b.2 Chemicals of Concern and (2) Develop
Product Innovation and Development
Alternatives with Reduced Human or Sustainability Governance
- page 75
Environmental Impact
Green Label Certification - page 76 E.1 Person in Charge on the Implementation of Sustainable Finance 128
Genetically E.2 Competence Development related to Sustainable Finance 121-124
Percentage of Products by Revenue That Contain GMO-Free and Animal Testing-Free
Modified RT-CH-410c.1
Genetically Modified Organisms (GMOs) Products - page 80 E.3 Risk Assessment on the Implementation of Sustainable Finance 20; 23
Organisms
E.4 Relationship with Stakeholders 62
Sustainability Management Review -
Management Discussion of corporate positions related to page 20 E.5 Issues on the Implementation of Sustainable Finance 20
of the Legal & government regulations or policy proposals that Sustainability Strategy Related to
RT-CH-530a.1 Sustainability Performance
Regulatory address environmental and social factors affecting Climate Change - page 23
Environment the industry. Evaluation of Sustainability Strategy F.1 Activities on Building a Sustainable Culture 26-29; 130-132
Implementation - page 24
Kinerja Ekonomi
Process Safety Incidents Count (PSIC), Process Safety ESG Performance Data - GRI 403:
Operational Comparison of Targets and Performance on Manufacturing, Portfolio, Financing Targets, or
RT-CH-540a.1 Total Incident Rate (PSTIR), and Process Safety Occupational Health and Safety 2018 F.2 12; 163; 177
Safety, Investments, Income and Profit and Loss
Incident Severity Rate (PSISR) - page 182
Emergency Comparison of Targets and Performance on Portfolio, Financing Targets, or Investments in
Preparedness ESG Performance Data - GRI 403: F.3 12; 163; 177
Financial Instruments or Projects in Line with Sustainable Finance
& Response RT-CH-540a.2 Number of transport incidents Occupational Health and Safety 2018
- page 182 Environmental Performance
General
F.4 Environmental Costs 107
Material Aspect
F.5 Use of Environmentally Friendly Materials 88; 177-178
Energy Aspect
List of Disclosures According to Financial F.6 Amount and Intensity of Energy Used 91-93; 178-179
Services Authority Regulation
F.7 Efforts and Achievements in Energy Efficiency and Use of Renewable Energy 90-94
Water Aspect
No. 51/POJK.03/2017 (POJK 51/2017) and F.8 Water Usage
Biodiversity Aspect
94-96
Circular Letter of the Financial Services F.9
Impacts from Operational Areas that are Near or Located in Conservation Areas or with
Biodiversity
105-106
Authority of the Republic of Indonesia F.10 Biodiversity Conservation Efforts 105-106
No. 16/ SEOJK.04/2021 (SEOJK 16/2021)
Emission Aspect
F.11 Number and Intensity of Emissions Generated by Type 97-100; 180
F.12 Efforts and Achievements Made in Emission Reduction 97-100
Waste and Effluent Aspect
Index No. Name of Index Disclosure Page F.13 Amount of Waste and Effluent Generated by Type 102-104
A.1 Description on Sustainability Strategy 18-19; 21-23 F.14 Waste and Effluent Management Mechanism 102-104
Sustainability Performance Overview F.15 Spills (if any) 104
B.1 Economic Performance Overview 12; 177 Aspect of Complaints related to the Environment
B.2 Environmental Performance Overview 13; 21; 178-181 F.16 Number and Material of Environmental Complaints Received and Resolved 107
B.3 Social Performance Overview 14; 21; 181-184 Social Performance
Commitments of FSI (LJK), Issuers, or Public Companies to Provide Equivalent Products and/or
Company Profile F.17 69-71
Services to Consumers
C.1 Vision, Mission, and Values of Sustainability 38-39
C.2 Address of the Company 35
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Index No. Name of Index Disclosure Page
List of Climate Disclosure Standards Board
(“CDSB”) Indexes
Employment Aspect
F.18 Equal Employment Opportunity 112
F.19 Child Labor and Forced Labor 135
F.20 Regional Minimum Wage 129
Index No. Name of Index Location of Disclosure
F.21 Decent and Safe Work Environment 130-132
F.22 Employee Capability Training and Development 120-126 Avian Brands Sustainability Governance - page 32
REQ-01 Governance Organizational Structure of The Environmental
Community Aspect Management Committee - page 86
F.23 Impact of Operations on Surrounding Communities 115-116; 142 Avian Brands Sustainability Strategy - page 18
F.24 Community Complaints 150 Avian Brands Sustainability Policy - page 19
Management of Environmental and Social Policies,
REQ-02 Avian Brands ESG Roadmap 2030 - page 21
F.25 Environmental Social Responsibility (ESR) Activities 142-150 Strategies, and Targets
Sustainability Strategy Related to Climate Change -
Responsibility for Sustainable Product/Service Development page 23
F.26 Innovation and Development of Sustainable Financial Products/Services 40-45; 47; 75 Challenges and Issues in Implementing Sustainability
REQ-03 Business Risks and Opportunities
Principles and Future Strategies - page 24-25
F.27 Products/Services that Have Been Evaluated for Safety for Customers 69-71; 76
Energy Usage - page 90
F.28 Product/Service Impact 40-45 Water Usage - page 94
F.29 Number of Recalled Products 71 Emissions Management - page 97
Waste Management and Utilization - page 102
F.30 Customer Satisfaction Survey on Sustainable Financial Products and/or Services 78 REQ-04 Sources of Environmental and Social Impacts
Diversity and Equality - page 112
Others Remunerations - page 128
Corporate Social Responsibility - page 142
G.1 Written Verification from Independent Party (if any) 2; 173-176 Sustainable Procurement Practices - page 167
G.2 Feedback Form 171-172 Sustainability in Motion: Highlights & Progress 2025 -
G.3 Responses to Feedback on Previous Year’s Reports 173 REQ-05 Comparative Analysis and Performance page 10-15
ESG Performance Data - page 177
G.4 List of Disclosures According to POJK 51/2017 192-194
Avian Brands Sustainability Strategy - page 18
Sustainability Strategy Related to Climate Change -
REQ-06 Sustainability Prospects page 23
Challenges and Issues in Implementing Sustainability
Principles and Future Strategies - page 24-25
REQ-07 Organizational Limitations Reporting Boundaries and Scope - page 2
About the Sustainability Report Avian Brands 2025 -
REQ-08 Reporting Policy
page 2
Reporting Period, Frequency, Information Restatements,
REQ-09 Reporting Period
and Contact - page 3
Reporting Period, Frequency, Information Restatements,
REQ-10 Restatement
and Contact - page 3
About the Sustainability Report Avian Brands 2025 -
REQ-11 Compliance
page 2
External Verification and Validation (Assurance) - page 2
REQ-12 Assurance
Written Verification from Independent Party - page 173
194 2025 Sustainability Report 2025 Sustainability Report 195
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Names mentioned 30 people and organisations named in the text · linked when the evidence is strong
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PT Tirtakencana Tatawarna
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PT Tirtakencana
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Avia+Avian
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Indonesia Archipelago Investment Pte Ltd
p.19
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Indonesia Stock Exchange
p.19
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person
Indrawati Setiabudhi
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Ministry of Justice
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Malang District Court
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Ministry of Law
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Soetikno Tanoko
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PT Bangun Bersama
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PT Multipro Paint
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PT Dextone Lemindo Solusindo
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PT Tirtakencana Batamindo Scale
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Ministry of Industry
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Jalan Raya Surabaya-Sidoarjo Avia Avian TBK
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Menteri Perindustrian
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Kementerian Perindustrian
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Ministry of Environment
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Ministry of Environment and Forestry
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