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SUSTAINABILTY
   REPORT
     2022
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PT ASIA PACIFIC FIBERS TBK

SOCIAL AND ENVIRONMENTAL RESPONSIBILTY
With its long history of market presence and its strong footprint in both domestic and international markets, APF
continue to remain resilient in successfully facing uncertain business and economic conditions and keep contributing
to the country’s development. Through all stakeholders’ support, the Company confidently takes on various business
challenges that have become increasingly dynamic since the outbreak of the Covid-19 pandemic, last March 2020.
The Company views that these challenges are the windows of opportunity to innovate, develop creativity, make
continuous improvements, work in close harmony with its customers, market, and the community around, to create
added value and better life to all parties.

As a responsible corporate citizen, PT Asia Pacific Fibers strive to pursue sustainability by simultaneously creating
value along three dimensions – environment, economic and social. The Company is committed to carrying out its
business activities by prioritizing the principles of sustainability, where economic growth is accomplished through the
implementation of good corporate governance, contributions for community empowerment and the social
environment, as well as concern for environmental sustainability. To demonstrate this commitment, the Company
has set sustainability goals in the Company’s strategic planning which have been further disseminated into the
targets of the Business Units, Business teams and individual employees. The implementation of sustainability
principles is also always supported by all employees, Board members and all stakeholders.

The Company is fully committed to accomplish and sustain business growth and simultaneously making a positive
contribution to the environment, social community, and to the national economy.


SUSTAINABILITY STRATEGY
The Company, in its continuous endeavor to accomplish sustainable development and business growth, is
committed to implementing sustainability principles in all its business activities and operations. The Company is
making conscious effort to align and harmonize business development along with sustainable living and creating
positive impacts on the community at large. The Company’s commitment to creating sustainable living is founded on
the following pillars of sustainability:

    1.   Sustainable Business Growth, (Economic)
    2.   Society and Community,
    3.   Environment Preservation, (Environment)
    4.   Governance.


Sustainable Business Growth (Economic Aspect): Continuously improving business performance that
has a positive impact on the stability of the Company’s operations and financial performance.

        Company’s business model is focused on some high growth Product portfolio/business verticals with a view
         to ensure long term sustainability.
        Continues investment in Technology upgrades, modernization, Process improvements with a view to
         sustain the productivity, quality, and competitiveness.
        Continuous optimization of plant utilization through de-bottlenecking, upgrades, and sustainability
         initiatives.
        Vertical value chain integration helps to sustain margins despite fluctuations in commodity prices.
        Company’s sustained efforts to be become a “Product Company” with value added, specialty, innovative
         products to meet the customer needs and share the value proposition.
        Demand creation through integration to fabrics and garments - Partnership with large and leading garment
         exporters and leveraging the relationship with the leading global brands.
        Organizational and human resources development to bolster its core competency and to ensure that all
         available resources are utilized optimally to accomplish sustainable business growth.




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Society & Community (Social aspect): The Company’s strategy on social responsibility comprises of two
main constituents namely:

        Empowering employees by ensuring their welfare, personal development thru’ continuous upskilling,
         encouraging their active participation in the management, and sharing the benefits.
        The Company also pays great attention to empowering the surrounding community through various
         corporate social responsibility programs.
        This commitment is based on the awareness that the Company is an integral part of the of society. The
         Company’s growth and development is closely dependent on the community participation.
        Company’s CSR activities are primarily focused on the following major areas, namely:
              o Health,
              o Education and training to the community
              o Improvising social facilities and infrastructure and
              o Provide with relief packages during natural disaster like Floods

Environmental Aspects: The Company is committed to preserving the environment by making environment
management as an integral part of the operational activities of the Company. Environmental sustainability strategy
primarily focusses on the following key areas:

        Strongly determined to comply with the applicable environmental laws, regulations, and requirements.
        Preventing pollution of Air, Water, Soil, and all natural resources.
        Continuous efforts to minimize waste in various ways – Following 3 R principle in all manufacturing process
         - Reduce, Reuse, and Recycle as a framework for reducing waste in the environment.
        Conducting evaluations and reviews to ensure that the implementation of environmental management is
         leading to continuous improvement.
        Fostering sensitivity, awareness, and care of all employees to actively partake in the environmental
         management and contribute their share.
        Collaborate with all related external agencies and work in close co-ordination to manage and preserve the
         environment.
        Strong emphasis on usage of cleaner energy sources such as gas and electricity and continuous monitoring
         its optimum usage.

Problems relating to environmental damage are one of the most critical ones faced by the world today.
Developmental and production activities with the emphasis on economic aspects are happening rapidly and
recklessly at the cost of environmental aspects. There is an imperative need that all parties engaged in the pursuit of
economic development must come together and participate in the mission of stopping further environmental
damage to save this planet. The Government of Indonesia through the Ministry of Environment and Forestry always
strives to control the problem of environmental damage through coordination with all stakeholders. In addition to
the central and local governments initiatives, close coordination needs to be carried out amongst business
communities, educational institutions, NGOs, as well as other activists working in the field.

As a sustainability-oriented corporation, the Company fully comprehends and supports the government’s efforts to
preserve and improve the quality of the environment for future generations. Therefore, the Company pays utmost
attention to environmental conservation efforts by managing and monitoring the environment to make our plant
carbon neutral and a green industry, by adopting eco-friendly manufacturing process, and operational activities. To
ensure that this environmental management runs effectively, the ISO 14001:2015 standard on Environmental
Management System is implemented which was first certified in October 2020. In addition, the Company routinely
monitors the environment through the Environmental Patrol Movement periodically.


SUSTAINABILITY PERFORMANCE HIGHLIGHTS
The year 2022 continued to be a year of recovery for the Company to align various activities that have been initiated
relating to sustainability implementation. Many improvements and refining actions are underway to compile and
maintain records of activities undertaken and the resultant outcomes in orderly way. These will be streamlined in
future to track the performance against the target.




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Economic Aspect

The overall economic performance of the Company in the year is fully described in the annual report and the
highlights are summarized in the succeeding section of this report. The key objectives of the Company are to
optimize the output and revenue by supplying reliable, quality and environmentally sound products. Optimum
engagement of local stakeholders, supply sources. MSMEs with a view to contribute to the reginal economy and
development.

Details of Production Quantity, Sales, Comprehensive Profit, environmentally friendly products and Local suppliers
are given in the table below:

                               Details                                     2022            2021            2020
Total Production (in 000MT)/ Rincian                                      287.23          282.39         246.40
Net Sales USD million                                                     396.98          372.97         260.96
Comprehensive Profit (Loss) in USD Million                                 12.31           6.85          (20.55)
Eco-friendly products sold in MT                                          18,198          21,960         16,250
Number of Local Suppliers (based in Indonesia) with whom                    783            823             807
transactions done
Number of Local Customers to whom goods and services supplied              272             228            331
Domestic Sales value in USD Million                                       335.88          293.69         204.33


Social Responsibility

Human Resources

Asia Pacific Fibers recognizes that human resources are the most important capital for the Company to sustain its
performance over a period. The company strives to build and cultivate the talent of our human capital to make our
organization diverse with an inclusive work environment. The employees are encouraged to participate in collective
decision-making process through well-established communication channels across the organization and contribute
to value creation.

As we believe people are our most valuable asset to the Company, their well-being is of utmost importance to the
organization. The practices followed across our sites ensure that the health & safety of the employees is well taken
care of, and we make sure that they receive ample career growth opportunities in an equitable and fair environment.

The Company carries out employment practices in accordance with the laws and regulations regarding employment
and collective labor agreements (CLA) as the main basis for establishing industrial relations with employees. As for
the aspects of occupational health and safety (OHS), the Company refers to Law No. 1 of 1970 on Occupational
Safety and Health and other related regulations.

The Company is committed to maintaining harmonious industrial relations with all employees through the fulfillment
of employee rights and obligations and complying with various regulations relating to employment terms and
remuneration.


Training and Skill development programs

Learning and development is a key focus area for the organization. Trainings and skill development programs are
conducted for our employees on a regular basis, which helps in improving their knowledge and sharpening their
capabilities to cope with the technological advancement and strengthening the core competency of the Company.
Broadly, the trainings focus on imparting knowledge across the following aspects/areas:




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            Description                           2022                      2021                     2020
                                            No of       No of         No of       No of         No of       No of
                                          Programs   Participants   Programs   Participants   Programs   Participants
          Leadership & Management           12            773          8            370          8          300
      Technology & Skill development        80           3042         52           2267         22          601
            Information Technology &        22            313          6             65          4           22
                         Digitalization
           Quality, Health, Safety and       19          1057          19          668           7           73
                         Environment
      Accounting, Finance & Taxation         2            37           3            21          0             4
      Other HR – KAIZEN – Mindset &         55           2704         29           1023         10           214
                               Culture
                                  Total     190          7926         117          4414         51          1214

Along with activities focused on continuous improvement, the team is leveraging the best practices institutionalized
around corrective feedback loop mechanism wherein a HR team member continuously interact with employees on
rotational basis across the company to gather their suggestions and incorporate them in the training programs. This
goes a long way in promoting an inclusive workplace environment.

The Company endeavors to maintain harmonious industrial relations and continuously implementing several welfare
measures such as education, health, and social security to improve their social status.




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Employees Composition

By management level
         Management level                           2022                       2021                      2020
                                          Persons           %        Persons          %        Persons           %
Board of Commissioners/Directors              5           0,1%           4          0,11%          4           0,1%
                       Manager               116          3,2%          120        3,35%          121         3,4%
                           Staff             674         18,5%          671        18,72%        640          18,1%
                     Operatives             2854         78,2%         2789        77,82%        2773        78,4%
                           Total            3649        100,0%         3584       100,00%        3538        100,0%



By age group
             Age group                              2022                       2021                      2020
                                          Persons           %        Persons          %        Persons           %
                 46 years and above         1145         31,38%        1245       34,74%         1284        36,29%
                      36 ~ 45 Years          589         16,14%         618        17,24%         674         19,05%
                      26 ~ 35 Years         1068         29,27%        1063       29,66%         1079        30,50%
                       18 ~ 25 Years         847         23,21%         658        18,36%         501         14,16%
                               Total        3649        100,00%        3584       100,00%        3538        100,00%
                        Average age          42                         43                        44           Years



By educational qualification
              Education                             2022                       2021                      2020
                                          Persons           %        Persons          %        Persons           %
                   S2/Post-Graduate          34          0,93%           36         1,00%         39           1,10%
                         S1/Bachelor         333         9,13%          320        8,93%         303          8,56%
                            Diploma          173         4,74%          180        5,02%          179         5,06%
                         High School        2932        80,35%         2846        79,41%        2794         78,97%
                  Junior High School         161         4,41%          181        5,05%          197          5,57%
                  Elementary School           16         0,44%           21        0,59%          26           0,73%
                               Total        3649        100,00%        3584       100,00%        3538        100,00%

Other Employee welfare activities are more focused on occupational health, safety, and social security of the
employees. All the employees are covered under the social security schemes (BPJS). With a view to ensure shopfloor
safety and prevent any disaster like file, accidents inside the factory, periodic inspection / safety patrol is conducted
to check and monitor the infrastructure and facilities.


Social and Community Development

APF has been actively involved, as a part of its social obligation to create a better community and environment in
and around its operational facilities. APF’s major initiatives are in the field of education, health, environmental
control, civic amenities, infrastructure and development of vocational skills. Various CSR activities are carried out on a
more channelized and focused manner through “Yayasan Asia Pacific Fibre”. Some of the major routine and ongoing
activities and initiatives are on the following areas:


Education Program:
    a)   Construction of elementary school building in the Blendung Village, Klari, Karawang district.
    b)   Distribution of scholarships to students in Karawang and Kaliwungu region.
    c)   Construction of educational facilities for pre-schooling (PAUD) in Cibuaya, Karawang, Madrasah Ibtidaiyah in
         Cimahi and Tunggakjati, Karawang, and Primary School in Karanganyar, Karawang.



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Health Care Program:
    a)   Providing free medical treatment and medicines to the needy people in Sumberejo and                Nolokerto,
         Kaliwungu, Kendal.
    b)   Construction of building to house the primary health center for in patients at Klari, Karawang.
    c)   Free distribution of spectacles to the needy students at the primary school and junior high scool students in
         Kaliwungu in cooperation with Yayasan Mata Indonesia.
    d)   Assistance for people with Cataract Eyes surgery in Kendal.
    e)   Together with government’s Covid-19 Task Force establishing shelter for Covid-19 patients.
    f)   Providing medical aid in form of masks, personal protective equipment and social support in form of daily
         groceries for Covid-19 patients.


Religious and Cultural activities:

    a)   Construction of boarding school for religious studies, prayer halls and facilities at Karawang and Kendal.
    b) Actively supporting religious and cultural activities in the region to improve social harmony.

Humanitarian Relief:

    a)   Renovation, reconstruction of flood effected schools Mangkang Kulon, Kendal.
    b)   Relief assistance to disaster effected people in Magelang and Padang.
    c)   Remodeling House for disadvantaged familied in Sumberejo, Kaliwungu, Kendal.


Social and Economic empowerment:

    a)   Financial assistance to small scale/cottage industries in the region.
    b) Promotion of fiber waste processing units in the region to provide self-employment to local people.
    c)   The “Jumat Berkah” (Blissful Friday) program, in a form of food which is distributed to those who are entitled
         within the Company’s neighborhood at both locations.


Environmental aspects:
    a)   “Go Green” movement in coordination with the University of Jenderal Sudirman Purwokerto.
    b)   Planting of teakwood trees in Kaliwungu region.


Handling of Covid 19 pandemic:

In year 2021 as Covid-19 continue to persist especially in the 1st semester of 2021, the Company strictly adhered to
the health protocol notified by the Health Ministry. The Company had completed vaccination of all the employees at
all locations. The had also created and maintained necessary facilities and provisions for periodic health checkup to
reduce the transmission within the Company.

The Company has undertaken various measures and coordinated various activities to contain the spread of
coronavirus at the workplaces and the surrounding areas in the region – West Jawa, Central Jawa, and DKI Jakarta.
The activities include:

    a)   Continuous campaign both at internally at plant level and externally to surrounding community on the
         endanger of pandemic impact to the human-life through campaign banners, posters, leaflet, health talk,
         training, and socialization.
    b)   Distribution of masker to the employees and their family, and surrounding people.
    c)   Intensive campaign on social distancing, avoiding the crowd, and stay at home.
    d)   Regular check on Employee’s healthiness through the conduct of Rapid tests, (more than 6500 tests-
         Serology and Antigen) and more than 450 PCR swab tests.
    e)   All preventive activities conducted by “APF Task Force Covid-19” also got appreciation and rewards from
         the local government at both Karawang and Kaliwungu.




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Besides, as a responsible corporate citizen, APF also helped and supported the surrounding community to fight the
Covid-19 pandemic spreading through the CSR program by donating maskers, disinfectants, and other necessary
medical apparatus directly to the surrounding community and through the National and Local Government Task
Force Covid-19, Hospitals, and other representative bodies.


CSR Investments

The Company continues to contribute to the betterment of the Community by taking up various activities
enumerated above and provided monitory support to ensure that the CSR programs are successfully implemented,
and the needy section of the community is benefited.

The total cost of various CSR activities (Health care, Education, Social empowerment, and Religious & Culture) carried
out during the past three years along with the number of beneficiaries is summarized below:

Details                                     Location                        2022           2021           2020
Total Cost – IDR million                    Karawang & Kendal               1,613          1,562          1,617
Number of beneficiaries                     Karawang & Kendal               2,700          2,620          2,501




Environmental Aspect

Several activities that are carried out in the manufacturing process/operations at both the plant locations at
Karawang and Kaliwungu ensure that there is no negative impact to the environment and the surrounding
community. Environment patrol such as inspection of the waterways, cleanliness of the shopfloor, waste discharge
and disposal areas were well integrated with the manufacturing process and monitored to ensure safety, security,
and environmental protection.

Mapping of areas where potential chemical spillage, effluent discharge, leading to environmental pollution were
conducted. Regular monitoring of the environmental performance related to the liquid waste discharge, air/noise
pollution and the handling of hazardous waste are being conducted and periodic reports are submitted within
stipulated time for review and action.


Use of Environmentally Friendly and Recyclable Materials

The Company ensures that all materials used are not harmful to the environment or to customers who use the
products produced. Regarding this matter, the Company has established a policy on the use of environmentally
friendly materials and carries out the process of reduce, reuse, and recycle. The Company establishes a policy that



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raw materials purchased from suppliers must meet environmentally friendly requirements as evidenced by the Oeko-
Tex certificate and Certificate of Analysis (COA). Whereas, chemical and dyestuff must be equipped with Oeko-Tex,
ZDHC, and Eco Passport certificates. Raw materials that have been processed into finished goods are retested
according to the specified standards or parameters and re-certified products, including SNI 56:2017, Standard 100 by
OEKO-TEX, and OHSE Product Registration.


Energy management & conservation:

The Company’s plant at Karawang captively generates power and steam with the help of Gas turbine and HRSG
(Heat Recovery steam generator) which uses cleaner fuel Natural gas and power back up from PLN for reliability and
captive generation outage. Kaliwungu plant is drawing power from PLN (40MW) for its energy requirement.

PT Asia Pacific Fibers has committed to implement an energy management system for future sustainability. We have
also carried out ISO 50001:2018 certification in March 2021 Energy Management System as our company is
committed to energy management, clean environment, and awareness to all Employees. To support this energy
management system, we have continuous innovation in the use of energy so that the use of energy equipment can
be efficient, in 2020-2021 several innovations have been made, as follows:

         i.   Improvement of all equipment and areas that
              use steam, the result of this initiative can
              reduce specific steam consumption from 0.58
              to 0.55 kg of steam per 1 ton of product
              produced, this innovation will continue with
              target 0.53 Ton of steam needed for every 1
              ton of product.
        ii.   APF realizes that the need for Natural Gas
              consumption from year to year will continue
              to increase along with the increase in
              production so that innovation from the use
              of Natural Gas will result in savings in the use
              of Natural Gas. We replaced 1 of 2 turbines
              that have been operating for more than 20
              years due to reduced efficiency and outdated
              technology with a new turbine with high
              efficiency so that by using new turbine it is
              projected to potential save the natural gas
                                 3
              5.6 Million NM         per year. This new Gas
              turbine is expected to get commissioned in
              1st quarter of year 2022.
       iii.   Improvements in the cooling machine (chiller system) are carried out by modifying the parts of the
              machine that can use water or only use air cooling, which resulted in potential saving of chiller usage
              by about 5,238.480 TR/year.
       iv.    Replacement of the old and inefficient utilities with the new generation efficient one which gives
              energy saving in the range of 17to 40%. Emphasis is on selection of high volumetric equipment to
              minimize the CAPEX and effective utilization of the resources.
       v.     Transmission & distribution: Re-engineering, rerouting of the transmission pipelines, electrical
              networks and replacement with energy efficient distribution network.
       vi.    End use optimization: Re-engineering of the machine accessories for effective utilization of the utilities
              at the user end.
      vii.    Certificate of Energy management system ISO 50001 :2018




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Energy Saving initiatives.

      Generation: Replacement of the old and inefficient utilities with the new generation efficient one which gives
      energy saving in the range of 17to 40%. Emphasis is on selection of high volumetric equipment to minimize the
      CAPEX and maximize effective utilization of the resources.

      Transmission & distribution: Re-engineering, rerouting of the transmission pipelines, electrical networks, and
      replacement with energy efficient distribution network. Maximizing the use of energy efficient utilities

      End use optimization: Re-engineering of the machine accessories for effective utilization of the utilities at the
      user end.

Karawang Plant (Chemical & Fiber)

              Category                       Unit                 2022               2021                   2020
           Electricity/PLN              Kwh/MT                   83.96              75.90                  73.02
                                        GJ/MT                     0.30               0.27                   0.26
                                        KG CO2                29,932,959         26,983,433             22,810,565
                GAS                     NM3/MT                   132,95             141.24                 144.14
                                        GJ/MT                     4.98               5.30                   5.41
                                        KG CO2                117,246,121        121,546,765            108,991,099
               Steam                    Ton                     233,073            226,613                208,872
                                        Ton/MT                    0.56               0.55                   0.58
Emission Total                                                147,179,080        145,215,620            131,378,312
Emission intensity                                              350,93             355.36                 365.90



Kaliwungu Plant (Filament Yarn)

              Category                       Unit                2022                2021                  2020
           Electricity/PLN              Kwh/MT                   2430                2460                 2540
                                        GJ/MT                    8.74                8.85                  9.14
                                        KG CO2                246443000           263472000             232588000
                GAS                     NM3/MT                  10.92                11.82                  11.8
                                        GJ/MT                    0.41                0.45                  0.45
                                        KG CO2                 3485000             4051000               3462000
               Steam                    Ton                     14958               17084                 14569
                                        Ton/MT                   0.13                0.14                  0.13
Emission Total                                                249928000           267523000             236050000
Emission intensity                                             2145.55             2172.24               2243.48

With a view to give clearer picture of the energy management and conservation which generally accepted for all
industry it is converted to Joule unit and to relate with the Green House Gasses issues it is converted to kg CO2.


Water Management

The Company uses water in the process of production of its products, which is sourced from the surface (lake, river
and rainwater collected in plant area) and from underground borewells. Water consumption during the last three
years is given in the table below:

                        Water Source (Karawang)
                                                                                 2022            2021         2020
Surface Water                                                                  2,780,310       2,825,254     2,448,146
Ground Water                                                                      Nil             Nil           Nil
Total Consumption                                                              2,780,310       2,825,254     2,448,146
Water Use intensity (M3 per ton of product)                                      6.62            6.91          6.81



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                        Water Source (Kaliwungu)
                                                                              2022             2021         2020
Surface Water                                                                   0                 0            0
Ground Water                                                                 112455           130242       109263
Total Consumption                                                            112455           130242       109263
Water Use intensity (M3 per ton of product)                                   0.96              1.05         1.03



Emission management

The Company’s operations lead to emissions as a part of the production process which are well within the
parameters of the applicable regulations. The Company is very concerned of environmental issues, especially
regarding CO2 emissions. We are always trying to reduce emissions, by upgrading the equipment that contributes
the most to CO2 emissions, such as upgrading the GT-HRSG.

Periodic third-party checks at regular intervals as per applicable government norms and regulations are carried out
and ensured adherence to it.

Details of emissions are given in the table below:

                       Emission of Green House Gas (“GHG”) in tons of CO 2 equivalent

                Emission Source (Karawang)                       2022               2021              2020
Scope 1- Electricity                                          29,932,959      26,983,433         22,810,565
Scope 2 – Liquid Fuel                                             Nil                Nil                Nil
Scope 3 – Gas                                                 117,246,121       121,546,765        108,991,099
Total                                                         147,179,080       148,530,198        131,801,664
Total Production in ton                                         419,401           408,647            359,053
 Emission Intensity (GHG/ ton) / Intensitas Emisi GRK / ton      350.9             363.5              367,1
Notes: The calculations are done as per GHG Protocol
                Emission Source (Kaliwungu)                      2022               2021                 2020
Scope 1- Electricity                                               -          -                  -
Scope 2 – Liquid Fuel                                          131,023             129,272              120,167
Scope 3 – Gas                                                 3,485,000           4,051,000            3,462,000
Total
Total Production in ton                                         116,673            123,155              105,216
 Emission Intensity (GHG/ ton) / Intensitas Emisi GRK / ton       31.7              33.94                34.04
Notes: The calculations are done as per GHG Protocol

The Company is committed to proactively monitoring and effectively managing emissions by using appropriate
technology and machinery which reduces the emissions from the Company’s plants, to ensure that all emissions are
within the prescribed parameters under applicable regulations. The Company has a captive power generation plant
which uses the Natural Gas as feedstock.

The total volume of emissions remains under control in the current year as compared to the previous year due to
energy saving projects and optimization of the process. However, Company’s sustained efforts and strategy to
reduce emissions, had led to the emission intensity over the last three years as seen in the table above.


Waste and Effluent management
The Company’s manufacturing process /activities generate various types of waste, both solid and liquid waste, as
well as waste that is categorized as hazardous and toxic (B3) and non-B3. The Company conducts waste
management comprehensively, effectively, and in accordance with applicable laws and regulations. Regarding liquid
waste, the Company manages it using biological (aerob) and chemical processes as stated in the Waste Quality




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Standard regulations based on the Minister of Environment Regulation No. 16 of 2019. Liquid waste is also constantly
tested independently and independently in a KAN- accredited laboratory with monthly results that meet quality
standards.

Details of the quantities of Solid Waste and Liquid Effluents for 2022 are given in table below:

                        Hazardous Waste (Karawang)                                 In Tons          Remarks
                                                    Generated/Dihasilkan            348.78
                                             Reused and recycled internally             -
          Handed Over to Government licensed Contractors for reuse/disposal         348.78
                           Non Hazardous Waste                                     In Tons
                                                    Generated/Dihasilkan              3.4
                                             Reused and recycled internally             -
                            Handed Over to third parties for reuse/disposal           3.4
                            Effluent Discharged                                   Million M3
                                                                                 39.23 M3/Hr
                                                                                 42.37 M3/Hr

                        Hazardous Waste (Kaliwungu)                                In Tons          Remarks
                                                    Generated/Dihasilkan             34.8
                                             Reused and recycled internally             -
          Handed Over to Government licensed Contractors for reuse/disposal          34.8
                           Non Hazardous Waste                                     In Tons
                                                    Generated/Dihasilkan                -
                                             Reused and recycled internally             -
                            Handed Over to third parties for reuse/disposal             -
                            Effluent Discharged                                   Million M3
                                                                                  0.153766




The Company has modern ETP plants that are
monitored online and connected with the
reporting systems of the environment
monitoring agency. Due to its well-structured
and maintained Environmental Management
systems and procedures the Company has also
obtained the ISO 140001 certification for both
its operating locations.

KLW site is also preparing for

     1.     ISO 50001 Energy Management
            System
     2.     ISO 45001 Occupational Health and
            Safety Assessment System


Recycling

The Company has also established a recycling
unit at its Filament yarn division in Kaliwungu
and reuses all its yarn waste/used PET bottles
to produce “Recycled Yarn” – a premium green
product, as a commitment to the sustainability




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and circular economy in line with the need of time. The Company plans to increase the volume of “Recycled
Products” in the coming years to meet the increased requirement of such eco-friendly products from Global brands.

The Company had already obtained “GRS” (Global Recycled Standards) for its Filament yarn plant and in the process
getting it for its Chemical and Fiber division as well.


Environmental Management Cost

During the year the Company incurred capital expenditure of US$ 103,030 on key environment improvement
projects and improvements comprising of the following, for improved environmental monitoring systems.

Sl. No                         Project Details                             Total
                                                                        Investment
                                                                         USD 000s
  1      Install New Wet Scrubber for incinerator                          57.2
  2      Replacement of incinerator brick                                 13.46
  3      Piping for effluent AHU to ETP                                    4.37
  4      Piping for effluent form QC chemical and fiber to                 9.08
         ETP
  5      Certification & Maintenance (KLW)                                 18.92
                               Total                                      103.03




Environmentally Friendly Products

In an age of increasing Polyester consumption across a wide range of applications and the consequent wastage, it is
becoming highly imperative for the value chain participants to be responsible and accountable for environmental
protection and environmental sustainability.

ESSENCE-Bio is a range of BIODEGRADABLE yarns and is produced by modifying the
molecular structure of the original polymer by adding an organic compound during its
production process. This organic compound in the yarn enables anaerobic digestion of the
end-product in landfills by way of enhancing the biodegradation process through a series of
chemical and biological processes in a biologically active landfill. Fabrics/Garments made from
ESSENCE-Bio yarns are thus rendered biodegradable in landfill environments. Recycled Polyester

Filament Yarns: Derived from Recycling the used PET bottles.   (RECO CORE)
Inherent colored filament yarn with performance additive technology ensuring:

             o    No Water Usage
             o    No Discharge of Chemicals
             o    Broad Intrinsic Color Portfolio
             o    Intrinsic Performance Technology
             o    Durable Colors and Performance




                                                                                                               12
Page 14
Quantity of Environmentally friendly products manufactured.

Sl. No               Products                Quantity - MT
    1    Recycled Chips
   2     Recycled Fiber                             2,500
   3     Bio Degradable Fiber                       2,500
   4     Antimony Free Fiber                         1.200
   5     Recycled Yarn                               1,100
   6     Dop Dyed Yarn                              12,000
         Total                                      19,300




                                                              13
Page 15
Sustainability Governance

The Organization structure that governs the whole operation can be found in the earlier part of this report. The
responsibilities of the various levels of management in the Company for implementation of Sustainability are given
below:


         SUSTAINABILITY GOVERANANCE STRUCTURE

         Board of Commissioners
         •Policy Direction & Oversight


         Board of Directors
         •Sustainability strategy
         •Monitoring of Company's Performance including sustainabilty
         •Setting up of Targets


         Operational Gross Functional Teams
         •Implementation of Sustainablilty Strategy
         •Achievement of various sustainability Targets
         •SOP and Work plan & instructions
         •Training & Coaching
         •Close interaction with team & cross team and sharing of idea for continous improvement
         •Continous reserach and development in collaboration with Customers for innovation and product
          development
         •Constant engagement with all stakeholders - Community & Goverment Authorities
         •Constant focus of Human relation and social awareness


We, the undersigned, hereby state that the sustainability report 2022 of PT Asia Pacific Fibers Tbk is a part of the
Annual Report of the Company for the year 2022 and partly covers Economic, Environment, Social aspects of the
business and related strategies and activities pursued by the of the Company to maintain sustainable performance.
While the Annual Report 2022 submitted by the earlier on 10th May 23, covered the areas of financial, economic and
governance aspects, this report mainly focusses on environment and social aspects of the Company’s performance.
This report is the first sustainability report prepared by the Company and hence could not be incorporated as
integral part of the Annual Report 22.

We further state that the report contained sufficient information on the sustainability aspect, and we are fully
responsible for the correctness of the content.



On behalf of the Board of Directors,
                                               PT. Asia Pacific Fibers Tbk.




                   V. Ravi Shankar                                            Drs. Prawira Atmadja
                  President Director                                                 Director




                                                                                                                14

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