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PT Avia Avian Tbk • 2024 Sustainability Report
Towards
a Sustainable
and Colorful
Future
PT Avia Avian Tbk (hereinafter referred to as “Avian Brands”
or “AVIA” or “we”) keeps progressing towards a sustainable
and colorful future, through its commitment to sustainability
in all aspects of its operations. Avian Brands recognizes
sustainability as a key element in creating harmony of
economic growth and environmental preservation. In the
environmental aspect, Avian Brands remains focused on
its efforts to reduce greenhouse gas emissions, enhance
energy efficiency, and implement more environmentally
friendly manufacturing technologies and processes. Through such initiatives, in addition to minimizing its carbon footprint
in production and operations, Avian Brands also contributes to the sustainable mitigation of climate change. Furthermore,
the sustainability approach of Avian Brands encompasses responsible resource management, including the optimization
of raw material usage and waste reduction, ensuring that operational processes have minimal impact on the ecosystem.
Avian Brands also strives to increase the use of renewable energy as part of its long-term strategy to reduce dependence on
fossil energy sources.
Avian Brands’ commitment to a sustainable future also embraces colorful diversity in every aspect. In terms of diversity and
inclusion, Avian Brands actively promotes gender equality across all operational levels, ensuring equal opportunities for
every individual to develop. CSR activities of Avian Brands, conducted through the Avian Brands Peduli initiative, extend
to all corners of Indonesia and bring about numerous positive impacts, reaching the communities from cities to villages.
Meanwhile, Avian Brands’ products cater to all demographics, from children to adults, offering a wide range of colors and
variations that reflect the richness of cultural heritage and customer preferences. With this approach, Avian Brands brings
to life a future that is not only green but also full of colors. This commitment embodies the efforts of Avian Brands to deliver
sustainable positive impacts, while painting the path towards more balanced social, environmental, and economic progress.
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About the Sustainability Report
Reporting Standards and Objectives [GRI 2-5] [POJK G.1] [CDSB REQ-08, REQ-11]
Avian Brands prepares and publishes the Sustainability Report to provide accountability and information on the implementation
of sustainability principles in all aspects of operating the business. This fourth report published by Avian Brands will be further
developed at the next regular publication, which will take place at the end of each financial year. The preparation of this
Sustainability Report refers to the following standards:
Financial Services Authority Regulation No. 51/POJK.03/2017
on the Implementation of Sustainable Finance for Financial Global Reporting Initiative (“GRI”)
Services Institutions, Issuers, and Public Companies and its Standards 2021 option with Reference
implementing regulations, namely the Circular Letter of the and its relation to supporting
Financial Services Authority of the Republic of Indonesia the achievement of Sustainable
No. 16/SEOJK.04/2021 on the Form and Content of Annual Development Goals (“SDGs”).
Reports for Issuers or Public Companies.
Climate Disclosure Standards Board (“CDSB”)
Sustainability Accounting
Standards Board (“SASB”) –
Task Force for Climate-related Financial Disclosures
Chemical Standards.
(“TCFD”).
Entities in Reporting [GRI 2-2] [CDSB REQ-07]
Avian Brands’ Sustainability Report contains information related to the implementation of sustainability principles in economic,
environmental, social, and governance aspects within AVIA and all Subsidiaries. In the economic aspect, financial information
is presented based on the Consolidated Financial Statements, including information on AVIA and all Subsidiaries. Whereas,
on the social, energy use, and emission aspects, the data presentation remains limited to AVIA, PT Tirtakencana Tatawarna
(“TKTW”), and PT Tirtakencana Batamindo (“TKBI”). The governance and environmental aspects contain data only from AVIA.
Verification of Report and External Assurance [POJK G.1] [GRI 2-5] [CDSB REQ-12]
Preparation of this Sustainability Report has passed verification processes from external independent agencies, conducted by
Decar Verite Asia. This external assurance process aims to ensure transparency and quality of reporting to stakeholders.
Reporting Period, Frequency, and Contacts [GRI 2-3, 2-4] [CDSB REQ-09, REQ-10]
Avian Brands prepares and publishes the Sustainability Report once a year. The report for the previous period was published
in April 2023. The 2024 Sustainability Report period is from January 1, 2024, to December 31, 2024. This 2024 Sustainability
Report has no significant changes compared to the previous period. To comply with the principle of validity, in the event
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:
Hera Septi Astuti
Corporate Secretary (62-31) 99850500/99850600
Avian Brands Building corsec@avianbrands.com
Jl. Ahmad Yani No. 317 investor.relations@avianbrands.com
Surabaya 60234
Jawa Timur, Indonesia www.avianbrands.com
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PT Avia Avian Tbk • 2024 Sustainability Report
Theme Continuity
Painting a Beautiful
2023
Picture of Indonesia
Painting a Beautiful
Picture of Indonesia
Painting a Beautiful Picture of Indonesia
The dedication of Avian Brands in conducting business activities that prioritize
excellence and responsibility has propelled Avian Brands to become a pioneer in
SR 2023
innovation and sustainability in the paint sector. With a track record spanning more Template
Template
than 4 decades, Avian Brands has continuously brought color to the lives of millions
of families in Indonesia. This experience has guided Avian Brands beyond simply
providing quality products and taking strategic steps to ensure that every touch of
Painting a Beautiful
Picture of Indonesia
SUSTAI N AB I L I TY
color from our products benefits the environment and society.
R EP O RT
S U S TA I N A BI L I T Y RE PO RT
2023
2023
www.avianbrands.com
With a strong determination, Avian Brands is committed to continually contributing
avianbrands
avian.brands
Avian Brands
www.facebook.com/Avianbrands
Linkedin/PT Avia Avian Tbk. (Avian Brands)
Find Avia Brands
products here. S US TAI N AB I L I T Y R E P O RT 2023
to coloring Indonesia not only with a beautiful color palette but also with a minimum
environmental footprint and maximum contribution to the surrounding community.
With a commitment to continuous innovation and sustainability values as our guide,
we will keep moving forward to paint the future of Indonesia with inspiring colors of
sustainability.
4 Brighter Future
2022
4 Colourful Indonesia
44 years is a long journey for Avian Brands to exist and operate in Indonesian
society. During this period, Avian Brands continued to offer diverse and innovative
products that are environmentally friendly and take into account the health of our
customers. These commitments are not only to create aesthetically pleasing colors
for the applied properties but also to a better future through a series of responsible
manufacturing-consumption processes. In addition, Avian Brands also contributes
to making positive impacts on present and future society through the regularly
conducted Avian Brands Peduli program.
The Color of
2021
Sustainability
As an Indonesia-leading paint company with more than 43 years of experience,
Avian Brands continues strives to prioritize the vision of sustainability in its business
and provide real contributions for all and become a part of the country’s development.
With C.In.T.A as Avian Brands’ core value in running its business, it also becomes the
basis for achieving goals and becoming a sustainable company. In addition, by taking
a major move in becoming a public company in 2021, Avian Brands is confident and
more enthusiastic about becoming a company that prioritizes sustainable businesses
and contributes to providing colors to Indonesia.
SUSTAINABILLITY REPORT
The Color of Sustainability
SU STAI N A B I LI TY R E PORT 1
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Table of Contents
About the Sustainability Report 2 Table of Contents 4
Theme Continuity 3
FOREWORD BY THE BOARD OF DIRECTORS 6
Foreword by the Board of Directors 6
SUSTAINABILITY PERFORMANCE OVERVIEW 12
Sustainability of Economic Aspect 14 Sustainability of Social Aspect 15
Sustainability of Environmental Aspect 14
ABOUT AVIAN BRANDS 17
Avian Brands Information 18 Group Structure and Subsidiaries 26
Sustainability Vision and Mission 20 Significant Changes in Avian Brands and
27
Company Values 21 Supply Chain
Business, Product, and Service Segments 22 Preventive Approaches or Principles 27
Organizational Scale 24 External Initiatives 27
Operational Areas 25
SUSTAINABILITY STRATEGY 29
General Policy 30 Evaluation of Sustainability Strategy
42
Specific Policy 31 Implementation
Roadmap ESG 33 Challenges and Issues in Implementing
42
Sustainability Principles and Future Strategies
Support for Sustainable Development Goals 33
Highlights of Events in 2024 44
Sustainability Strategy related to Climate Change 37
Awards, Assessments, and Certifications 48
2024 Sustainability Progress 38
Membership in Associations 57
DETERMINATION OF CONTENTS AND MATERIALS OF REPORT 59
Stakeholder Engagement 60 Material Topics of Sustainability Report 64
SUSTAINABILITY GOVERNANCE 71
Commitment to Sustainability Governance 72 Sustainability Risk and Opportunity Management 81
Structure of Sustainability Governance 73 Building a Sustainability Culture 92
Information related to the Board of Compliance with Prevailing Laws and Regulations 99
75
Commissioners and the Board of Directors Political Contributions 99
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PT Avia Avian Tbk • 2024 Sustainability Report
HEALTHY ECONOMIC GROWTH 101
Economic Performance Management Strategy 102 Achievement of Operational and Financial
107
Supply Chain 103 Performance Targets
Served Market 106 Distribution of Economic Performance 108
Indirect Economic Contribution 110
RESPONSIBLE ENVIRONMENTAL MANAGEMENT 113
Environmental Impact Management Strategy 114 Waste Management and Utilization 128
Materials Used in Paint Production 118 Biodiversity 131
Energy Efficiency 120 Environmental Management Costs 132
Water Usage 123 Complaints on Environmental Issues 133
Emissions Management 125 Environmental Compliance 133
SUSTAINABLE PRODUCT RESPONSIBILITY 135
Sustainable Product Management Strategy 136 Product Innovation and Development 141
Commitment to Providing Equal Products Number of Recalled Products 146
137
and Services Customer Satisfaction 146
Health and Safety of Products and Services 138 Information Security and Protection 147
Impact of Products and Services 139 Complaints of Customer Issues 147
Labeling and Information of Products and Services 139
MAINTAINING THE GROWTH OF AVIAN BRANDS PERSONNEL 149
Strategy to Maintain the Growth of Avian Brands Occupational Health and Safety Management 168
150
Personnel Complaints on Labor and OHS Issues 173
Human Resources Management 151
COMMUNITY SOCIAL DEVELOPMENT 175
Community Development Strategy 176 Concern and Empowerment of Local Community 185
Support for the Community 178 Feedbacks on Corporate Social
186
Corporate Social Responsibility Programs Responsibility Programs
185
Implementation Costs
Sustainability Report Responsibility 187 List of Disclosures According to Financial Services
Written Verification from Independent Party 188 Authority Regulation No. 51/POJK.03/2017
(“POJK 51/2017”) and Circular Letter of
Reader Survey 191 201
the Financial Services Authority of the Republic
Response to the Previous Year’s Sustainability
193 of Indonesia No. 16/ SEOJK.04/2021
Report Reader Survey
(“SEOJK 16/2021”)
List of GRI Standards Indexes for 2021 –
193 List of Sustainability Accounting Standards Board
with Reference 203
(“SASB”) Chemicals Sector Version 2023-12
Cross Reference GRI Standards with SDGs 198 List of Climate Disclosure Standards Board
205
(“CDSB”) Indexes
List of Task Force on Climate-related Financial
205
Disclosure ("TCFD") Indexes
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FOREWORD BY THE BOARD OF DIRECTORS
Foreword by
the Board of Directors
[GRI 2-22] [POJK D.1]
“The year 2024 marks a pivotal moment for Avian Brands in strengthening its sustainability
commitment through strategic and innovative measures. In navigating economic, social,
and environmental challenges, we continue to adapt with a responsive and forward-thinking
approach. Enhancing operational efficiency, developing environmentally friendly products,
and empowering employees and communities, are tangible manifestations of our vision to be a
leading and responsible paint manufacturer. With a spirit of collaboration and innovation, we are
optimistic about taking greater strides towards a sustainable and colorful future.”
Dear Valued Shareholders and Stakeholders,
With gratitude, we extend our thanks to God Almighty for Avian Brands’ sustainability and achievements throughout
2024. This success comes as a result of the dedication and hard work of the entire team at Avian Brands, who continuously
strive to realize our vision toward a sustainable and colorful future. This year, through the theme Towards a Sustainable and
Colorful Future, we reaffirm Avian Brands’ commitment to sustainability that not only relies on business growth, but also on the
sustainability of the environment and community welfare, towards a brighter future.
Through the publication of this Sustainability Report, we provide a transparent communication platform to share
Avian Brands’ performance and commitment to sustainable growth with our stakeholders. This report highlights our strategic
initiatives related to ESG aspects as a reflection of our responsibility to create positive impacts for all parties involved.
External Situation and Issues that Determine Sustainability:
Economic, Social, and Environmental Perspectives
The year 2024 was marked by various challenges and market. Additionally, shifts in political leadership across
dynamics, which have influenced various parties in various countries, including Indonesia, have introduced
responding and setting their policies, both from the new dynamics that influence economic and social policy
government side as regulators and the corporate side directions. Persistent economic disparities remain a pressing
as business actors. We observe that in 2024, the world issue, potentially triggering various social challenges such as
was once again confronted with economic uncertainty, political instability and social conflicts.
further exacerbated by geopolitical tensions. At the same
time, social and environmental issues have taken center In the environmental aspect, extreme weather remains
stage on the global agenda, with the impacts of climate the most significant threat to the global economy in 2024.
change becoming increasingly evident. Rising global The impact of these climate events has put pressure on the
temperatures and extreme weather events affecting various global economy since the previous year, and is expected
regions serve as a stark reminder for all of us to act more to persist. As a company committed to sustainability, we
swiftly in addressing the climate crisis. recognize that these challenges are not merely obstacles,
but also opportunities for adaptation and innovation.
In the economic context, despite Indonesia showing In facing these issues, we continue to develop strategies that
its resilience with a stable 5,03% growth and controlled are not only focused on business growth, but also on how
inflation at 2.26%, global uncertainty remains a challenge. to positively contribute to the environment, society, and
Sluggish global economic activity, as well as tensions responsible corporate governance.
over international trade, have affected the domestic
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PT Avia Avian Tbk • 2024 Sustainability Report
WIJONO TANOKO
• President Director of PT Avia Avian Tbk
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FOREWORD BY THE BOARD OF DIRECTORS
Sustainability Commitments and Values
as the Guiding Principles of Our Journey
In light of evolving sustainability challenges, we have
established sustainability commitments and values to
guide Avian Brands’ sustainability journey. We aspire to
become an integrated, environmentally friendly, leading,
and trusted paint manufacturing company in Indonesia.
As part of this vision, we strive to keep growing in a sustainable
manner by prioritizing the company values encapsulated in
“CInTA”, i.e. Customer Focus, Integrity, Teamwork, and Agility.
These values guide our every action and decision, both in
business operations and in relationships with our customers,
employees and other stakeholders.
As a manifestation of our sustainability commitment,
we have also implemented Sustainability Policies
consisting of four main pillars, namely Product Quality and
Environment; Social, Labor and Human Rights; Ethics and
Governance; and Sustainable Procurement. We thoroughly
implement each of these pillars in every activity of Avian
Brands to ensure that every step we take simultaneously
promotes economic, social and environmental sustainability.
In addition, we have developed and implemented a clear and
measurable ESG Roadmap. This Roadmap contains various
strategic initiatives that constitute our targets, ranging from
reducing GHG emissions to increasing the use of renewable
energy and implementing social innovations that contribute
to achieving the SDGs. We are committed to making this
grand purpose a reality with every step we take, from the
short term to the long term, to achieve higher targets
such as net zero emissions, as well as creating positive social
impacts for the communities.
We believe that sustainability is more than just about
maintaining business continuity, but also about improving
quality of life. Therefore, aside from our pursuit of positive
economic results, we are also committed to improving
the quality of the environment and improving the
welfare of our employees and neighboring communities.
We are committed to reducing our environmental impact,
contributing to social welfare, and playing an active role in
building a more sustainable world.
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PT Avia Avian Tbk • 2024 Sustainability Report
Responding to Challenges and Designing Similarly, the growing social challenges, from social
a Sustainable Future with Responsive inequality to labor issues, encourage us to focus not only
and Collaborative Strategies on profits, but also on the welfare of employees and society.
We understand that investment in employee development
In pursuit of a sustainable future, we adopt responsive and is a long-term investment that benefits all parties. Therefore,
collaborative approaches to the economic, environmental we continue to increase the number of training hours to
and social challenges we face. We remain committed ensure each individual is equipped with relevant skills to
to designing strategies that are not only relevant to face the upcoming challenges. Our OHS program is also
current conditions but also create long-term, sustainable, part of our efforts to ensure the welfare of all employees.
positive impacts on the environment and society. In addition, through the Avian Brands Peduli program,
We believe that sustainability is at the core of our we amplify our community empowerment and reach out
Avian Brands’ journey. Therefore, we carefully plan every to more people in need. We also ensure that each of our
step with a forward-looking approach, integrating social suppliers adheres to our sustainability standards, thereby
and environmental responsibility principles at the heart of creating an ecosystem that supports sustainability in every
every decision we make. aspect of our operations.
As part of these efforts, we are also strengthening risk As a constantly growing company, we believe that
management that is integrated with sustainability achieving sustainability requires us to evolve alongside the
principles. We identify, evaluate and manage the main ever-changing world. This philosophy is embedded in
risks that could affect our operations and business Avian Brands’ journey, and we are confident that by staying
sustainability, including the risks related to climate change, committed to these principles, we can shape a better and
economic volatility and social dynamics. This risk-based more sustainable future—not only for us but also for the
approach allows us to better anticipate challenges, world.
mitigate negative impacts and capitalize on opportunities
that support the achievement of our sustainability vision.
Sustainability Performance Achievements
The ever-evolving global economic challenges necessitate Compared to the Targets
swift adaptation and astute strategies. Amidst geopolitical
uncertainty and market volatility, we are focused on Implementation of well-measured sustainability strategies
increasing the economic value gained, but in a more has made 2024 a pivotal year for Avian Brands to advance
inclusive and sustainable manner. We emphasize the value further along the path of sustainability. Our performance
of product innovation that meets the needs of our customers achievements not only reflect operational success but also
while delivering products relevant to contemporary underscore our commitment to balanced growth across
demands. Through comprehensive product diversification economic, environmental, and social aspects. We have
and extensive distribution network, we strive to ensure successfully recorded performance milestones that not
that every high-quality paint product that Avian Brands only meet but also exceed the pre-established targets.
manufactures, is accessible to the general public. This success is driven by our unwavering commitment to
continuous adaptation, innovation, and the creation of
In terms of the environment, we consider climate sustainable value across all aspects of our business.
challenges a pressing issue that cannot be overlooked.
Therefore, we are committed to introducing a greater From an economic perspective, we continue to generate
number of environmentally friendly products, as well economic value growth through efficiency initiatives
as working towards products that are free of hazardous and innovation programs. In the operational aspect,
materials, such as lead and chrome. Our major steps Avian Brands’ manufacturing output reached 197,339
to reduce scopes 1, 2 and 3 GHG, represent part of our metric tons in 2024, or 95.00% of the target. Despite the
strategy to minimize our environmental impact and market dynamics, this achievement demonstrates our
align ourselves with the global goal of net zero emission. business growth and resilience, compared to the previous
Additionally, we also continue to conduct tree planting year’s manufacturing output of 180,540 metric tons.
initiatives that signify our tangible commitment to In terms of innovation, we have introduced 15 new products
supporting environmental sustainability. to the market, expanding our portfolio with solutions
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FOREWORD BY THE BOARD OF DIRECTORS
that are relevant to customer needs. Our commitment In the social aspect, Avian Brands remains committed to
to environmentally friendly products is also reflected in empowering employees and social communities as a priority.
the growing number of Singapore Green Label-certified In terms of employee development, we recorded a 12.67%,
products in our portfolio, which is 34 products, up from increase in employee training hours, to reach 144,528.75
29 in the previous year. Results of this consistent operational hours compared to 128,278.18 hours in the previous year.
performance are reflected in the 2024 net revenue The average training hours per employee also increased by
achievement of IDR7,471.36 billion or 95.50% of the target, 2.52% to 15.51 hours per employee compared to 15.13 hours
an increase of 6.48% compared to IDR7,016.88 billion in 2023. per employee in the previous year, highlighting our focus
Furthermore, operational efficiencies we implemented have on developing employee competence as the driving force
boosted profit margins, with profit for the year amounting of sustainability. Furthermore, the OHS aspect remains a top
to IDR1,663.70 billion or 95,84% of the target, an increase of priority, with zero fatal work accidents throughout the year.
1.25% from IDR 1,643.10 billion in the previous year. On the other hand, the community empowerment program
through the Avian Brands Peduli made a remarkable
In the environmental aspect, we consistently strive achievement by realizing 195 CSR programs, an increase of
to deliver tangible impacts and contributions. Amidst global 98.98% from the previous year with 98 programs. In addition
demands to contribute to climate change mitigation, we to education and the environment, this program also aims
managed to record scope 1 and 2 GHG emission reductions to improve the welfare of the communities around our
of 15.99% compared to the 2021 baseline, exceeding the operational areas.
minimum 15% target set for 2024. This was reinforced
by the increase in solar panels installed in our manufacturing The accomplishments achieved in 2024 are testaments to
facilities to 2,280 units, resulting in an increase in the use of the positive impacts of our commitment to sustainability.
renewable energy mix in our operations to 559,201 kWh or The awards and recognitions received throughout the year
2,013.12 GJ. We also continued our tree planting initiative further solidify our position as a leading paint manufacturing
as part of our carbon offset program. Up to the end of 2024, company not only in terms of operational excellence, but
we have planted a total of 15,000 trees on the slopes of also environmental and social responsibility. We successfully
Mount Arjuno, 4,935 trees in the Sidoarjo and Serang plant received various awards, such as the 2024 ESG Award as
areas, and 169 trees around the TKTW operational area. the Best Issuer in the Capital Market Sector from Yayasan
This has contributed to potential carbon sequestration of up Keanekaragaman Hayati Indonesia (“KEHATI”), the 2024
to 4,819,379 KgCO2e, while also enriching the biodiversity ESG Award in the Chemicals Sector for the Environment
of the areas. Category from Katadata, Recognition for its Initiative in
Organizing Blood Donation in 2023 from the Indonesian
As a manifestation of sustainability commitment, Avian Red Cross of Sidoarjo Regency, Annual Report Award 2023
Brands considers innovation as a key factor in promoting from the KNKG, inclusion in Forbes’ “200 Best Under A Billion
a more environmentally friendly manufacturing pattern. 2024” list, PROPER National Green Rating from the Ministry
Among the strategic steps we have taken is to change the of Environment and Forestry of the Republic of Indonesia,
packaging material, from multi-material to fully recyclable Top 50 Big Capitalization Public Listed Company from the
mono-material. Not only is this in line with global efforts to Indonesian Institute for Corporate Directorship, as well as
reduce plastic waste, but it also improves recycling process Green Industry Leader in the 2024 Green Future Summit
efficiency, thereby contributing to a more sustainable from Sun Energy.
circular economy. Apart from innovations in packaging,
Avian Brands also implements an integrated vertical We believe that through continued innovation,
supply chain system to ensure that the raw materials used collaboration, and commitment to sustainability, Avian
comply with strict environmental and social standards. Brands is able to play a greater role in supporting
Each supplier of Avian Brands has passed comprehensive sustainability agendas, including net zero emissions by 2050.
assessments related to resource efficiency, implementation With firm determination and vision, we are optimistic that
of environmentally friendly practices, and compliance with Avian Brands will continue to grow and inspire a greener,
fair and responsible social principles. With this approach, more equitable, and more sustainable future.
Avian Brands is able to control product quality and
sustainability from upstream to downstream, ensuring that
the entire manufacturing process is consistent with our
sustainability values.
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PT Avia Avian Tbk • 2024 Sustainability Report
Sustainability as an Opportunity: Prospects of Greener Business
More than just a challenge, sustainability also brings a tremendous opportunity for us to shape a greener and more responsible
future. We believe that the measures we have taken thus far will bring about not just positive environmental impacts, but
also strengthen the foundation of our business in the long run. With a clear vision to achieve net zero emissions by 2050,
we have set measurable targets to reduce GHG emissions, not only in Avian Brands’ direct operations, but also throughout the
supply chain. We understand that for real change to happen, every part of Avian Brands’ system has a role to play.
In conjunction with our emission reduction efforts, we aim to continue our tree planting program with the determination
to directly improve environmental quality. Every tree we plant epitomizes Avian Brands’ commitment to taking part in
maintaining the balance of the ecosystem and contributing to the carbon sequestration needed to address the challenges of
climate change. However, our sustainability is not only reflected in environmental management, but also in our commitment
to human empowerment. In light of our perspective for greener business, we are expanding our focus to generate greater
opportunities for employee and community development. Through ongoing training programs, we provide opportunities for
individuals to develop skills that are relevant to the increasingly sustainability-oriented world. We also continue to scale up the
social impacts of our Avian Brands Peduli programs, ensuring that the communities around us directly benefit from our growth.
In addition, considering the global trend toward green energy transition, we also continuously innovate in utilizing renewable
energy resources, with the aim of reducing dependence on fossil energy sources. In a world increasingly concerned with
sustainability, we recognize that every small step we take can lead to profound change. Therefore, we look at every initiative
we undertake, from emission reduction to social empowerment, as an integral part of Avian Brands’ commitment to creating
greener and more sustainable business prospects. We believe that sustainability is not just a principle, but also a massive
opportunity for us to innovate, grow, and generate greater positive impacts.
Appreciation
To conclude, we sincerely express our deepest gratitude to all stakeholders for their collective support in Avian Brands’
sustainability journey. Our achievements would not have been possible without the dedication, hard work, and commitment
of everyone involved. We greatly appreciate the contributions made by every individual and group, who have played an active
role in making our vision for a greener and more sustainable future a reality.
We certainly still have a long way to go, but with the spirit of collaboration and integrity that we all share, we are confident
to face upcoming challenges and transform them into greater opportunities. We are committed to keep moving forward, to
maintain mutually supportive relationships, and to bring about positive impacts to the world around us. This way, we will
continue to innovate and grow together, shaping a more sustainable future for generations to come.
On behalf of the Board of Directors of
PT Avia Avian Tbk,
Wijono Tanoko
President Director
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SUSTAINABILITY PERFORMANCE OVERVIEW
Sustainability
Performance Overview
Medium Risk Ecovadis
Sustainalytics Silver Medal
Achieved Morningstar Improved EcoVadis
Sustainalytics Score of Score from Bronze
22.6 to Silver
Maintained the Green PROPER rating from
PROPER Green the Ministry of Environment and Forestry
for 3 consecutive years
AVIA stocks’ inclusion in the 45 best
ESGQ 45 IDX KEHATI, stocks of the Indonesia Stock Exchange
ESG SL IDX KEHATI, & according to the ESGQKEHATI Index,
the 56 stocks with above-average ESG
SRI-KEHATI Indexes performance according to the ESG
Sector Leaders IDX KEHATI Index,
and the 25 best stocks according to
the SRI-KEHATI index
Investment in
Sustainability Projects
IDR 4.21 billion
Budget for Sustainability Projects
that support Sustainability
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PT Avia Avian Tbk • 2024 Sustainability Report
Environmentally Friendly Products
Emission Reduction
An increase of
17.24 %
in the number of Environment Friendly Products
Certified with Singapore Green Label, compared
Reduction of GHG
emissions of 15.99 %
to 2023
or
11,244.89 TonCO e 2
compared to the 2021 baseline year
Avian Brands Peduli CSR
Use of Environmentally
Implementation of
195 CSR
programs Friendly Heavy Equipment
an increase of
98.98 %
Use of
43 Units
environmentally friendly vehicles such as
compared to 2023, with a total cost of forklift, reach truck, counterbalance, and
pallet mover which represents
IDR 2.34 billion 64.18 of the total heavy
% equipment
Carbon Offset
Planting
15,000 tree seedlings Renewable Energy Usage
on Mount Arjuno since 2022 with potential
carbon sequestration of Increase in solar panel installation by
4,017,645 KgCO e 2 1,052 Unit
leading to the increase in total use of
renewable energy by
Renewable Material Usage
201.82 %
56.30 %
Increase of compared to the 2021 baseline
in the ratio of renewable materials used in the
manufacturing process, compared to 2023
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SUSTAINABILITY PERFORMANCE OVERVIEW
Sustainability of Economic Aspect [POJK B.1]
Description Unit 2024 2023 2022
Financial Performance
Net Revenues Million Rupiah 7,471,356 7,016,882 6,694,171
Profit for the Year Million Rupiah 1,663,699 1,643,096 1,400,365
Operational Performance
Manufacturing Volumes Metric Tons 197,339 180,540 170,986
Environmentally Friendly Products
Product Brand 34 29 24
Singapore Green Label Certified Product Categories
Product or Service Quantity Product Brand 105 96 88
Local Suppliers Engagement
Local Suppliers
Total Local Suppliers Number of Company 217 219 209
Percentage of Local Supplier Engagement by Entity
% 76.14 77.94 76.00
compared to Total Suppliers
Local Employees
Total Local Employee People 8,387* 7,577* 7,231*
Percentage of Local Labor Involvement in Avian Brands
% 90.03* 89.38* 89.54*
Operational Activities
Notes:
* AVIA, TKTW, and TKBI.
Sustainability of Environmental Aspect [POJK B.2]
Description Unit 2024 2023 2022
Energy Efficiency
Total Energy Usage GJ 211,358.89 215,727.57* 212,241.33*
GJ/Ton Product 0.17 0.18* 0.19
kWh/Ton Product 47.20 49.74* 52.18*
Energy Intensity
Thousand Rupiah/
36,137.43 37,775.99* 40,774.22*
Ton of Product
Energy Intensity Efficiency GJ/Ton Product 0.01 0.01* 0.01*
Materials Used in Paint Production
Renewable Materials Purchase Ton 89,589.48 72,903.20 61,888.17
Non-Renewable Materials Purchase Ton 69,528.10 70,887.41 74,937.20
Total Material Purchase Ton 159,117.58 143,790.61 136,825.37
Emissions Management**
Total of Scope 1 and Scope 2 Emissions TonCO2e 11,244.89 11,299.92* 11,414.23*
Intensity of Scope 1 and Scope 2 Emissions KgCO2e/Ton Product 23.26 24.45* 25.16*
Total of Scope 3 Emissions TonCO2e 154,786.52 0 0
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PT Avia Avian Tbk • 2024 Sustainability Report
Description Unit 2024 2023 2022
Water Management
Total Water Usage Megaliter 142.48 141.68 113.98
Megaliter/Ton
Water Intensity 0.0007 0.0008* 0.0008
Product
Reduction of Hazardous Waste Generation
Reuse of Industrial Waste Water Ton 2,650.14 1,820.24 2,482.98
Reuse of Washing Solvent Ton 151.19 166.27 180.87
Hazardous Waste
Ton 733.94 886.77 946.96
(liquid and solid managed by third parties)
Non-Hazardous Waste Ton 166.99 185.07 157.68
Discharge Water Megaliter 4.80 3.83 4.14
Biodiversity Preservation***
Total Trees Planted Trees 20,794 14,880 6,797
Type of Trees Planted Type 169 94 69
Carbon Sequestration Value KgCO2e 4,835,028 1,200,987 941,337
Notes:
* Data restated.
** Scope 3 GHG emission is being measured only for 2024.
*** Data represents accumulated trees planted over the years by Avian Brands around the locations of AVIA, TKTW, and the slopes of Mount Arjuno.
Sustainability of Social Aspect [POJK B.3]
Description Unit 2024* 2023* 2022*
Community Development and Empowerment (Pengembangan dan Pemberdayaan Masyarakat or “PPM”)**
Number of PPM Program Total Program 195 98 27
Cost of PPM Program Million Rupiah 2,344 1,995*** 1,978
Manpower Management
Total Employees (Including Outsourcing) People 9,322 8,483* 8,082*
Total Female Employees (Including Outsourcing) People 2,109 1,724* 1,626*
Number of Participants in Competence Development People 7,632 6,173 3,096
Total Recordable Injury Rate Rate 1.57 2.16 2.01
Total Recordable Incident Frequency Rate Rate 2.05 2.69 1.74
Notes:
* AVIA, TKTW and TKBI;
** AVIA; and
*** Data restated.
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PT Avia Avian Tbk • 2024 Sustainability Report
About
Avian Brands
“As the paint market leader in
Indonesia as well as one of the
biggest paint manufacturers in Asia,
Avian Brands continues to strengthen
its position through an integrated and
reliable business ecosystem. Avian
Brands constantly focuses on product
innovation and management that not
only maintains a competitive edge,
but also prioritizes sustainability
in every aspect of its operations.
With this approach, Avian Brands
is committed to continually
delivering high-quality products
while promoting sustainable and
environmentally friendly
business practices.”
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ABOUT AVIAN BRANDS
Avian Brands
Information
PT Avia Avian Tbk
[GRI 2-1]
Headquarter
[GRI 2-1] [POJK C.2]
Jl. Raya Surabaya – Sidoarjo KM. 19
Desa Wadungasih, Kec. Buduran, Sidoarjo 61252
Jawa Timur, Indonesia
Business Sector
[GRI 2-6]
Manufacture and trade of paints and printing inks,
varnishes, lacquers, adhesives or glues, mortar or
ready-mixed concrete.
corsec@avianbrands.com
investor.relations@avianbrands.com
Date of Establishment
March 1, 1983
Legal Form Status
(62-31) 8968000 www.avianbrands.com [GRI 2-1]
Limited Liability Company
Social Media Legal Basis of Establishment
[GRI 2-1]
PT Avia Avian was established based on Deed of
Establishment of Limited Liability Company No. 06
dated March 1, 1983, as amended by Deed No. 63 dated
May 23, 1983, both drawn up before Indrawati
Avian Brands Setiabudhi, S.H., a Notary in Malang. The deed has
been approved by the Minister of Justice of the
Republic of Indonesia by the Resolution of the Ministry
of Justice of the Republic of Indonesia with Decree
No. C2-4948.HT01.01 Th83 dated July 5, 1983, and
avian.brands @avianbrands has been registered with the Malang District Court
No. 016/PP/PI/VIII/1983 dated August 8, 1983.
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PT Avia Avian Tbk • 2024 Sustainability Report
Shareholding [GRI 2-1] Branch Office
Avian Brands Building
Jl. Ahmad Yani No. 317
Surabaya 60234
Jawa Timur, Indonesia
(62-31) 99850500/99850600
Address of Manufacturing Facilities [GRI 2-1]
Sidoarjo
Jl. Raya Surabaya – Sidoarjo KM. 19
Desa Wadungasih, Kec. Buduran
Sidoarjo 61252
Jawa Timur, Indonesia
PT Tancorp Surya Sentosa : 36.60%
(62-31) 8968000
PT Wahana Lancar Rejeki : 32.49%
Archipelago Investment Pte Ltd : 6.30% Serang
Robert Christian Tanoko : 2.30%
Jl. Raya Serang KM. 60
Rudi Tanoko : 1.68%
Kawasan Pancatama 5 Kav. 50
Rony Tanoko : 0.80%
Leuwilimus, Leuwi Limus, Cikande
Treasury Stock : 1.88%
Kabupaten Serang 42186
Public (each below 5%) : 17.95%
Banten, Indonesia
(62-254) 402655
Stock Code
AVIA
Listing of Shares on the Stock Exchange
December 8, 2021
on the Bursa Efek Indonesia
Total Employees of AVIA, TKTW, and TKBI
(including Outsourced Employees)
Male:
7,213 Employees
Female:
2,109 Employees
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ABOUT AVIAN BRANDS
Sustainability
Vision and Mission [POJK C.1]
VISION
To become an integrated,
environmentally friendly,
leading, and trusted
paint company in
Indonesia.
MISSION
To provide added value
to stakeholders through
the development of
various quality paints.
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PT Avia Avian Tbk • 2024 Sustainability Report
COMPANY
VALUES
Customer Focus
Able to make (internal and external) customers and their needs as
the main focus in a positive and productive working relationship.
Integrity
Be honest in words, have the commitment and consistency in
acting according to rules, norms, and morality.
Teamwork
Ability to be part of a group, work with the group members, and
contribute to the achievement of the group’s goals.
Agility
Ability to be agile, flexible, and assertive in anticipating, initiating,
and taking advantage of any opportunity, as well as to avoid
negative consequences from the changes.
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ABOUT AVIAN BRANDS
Business, Product, and Service Segments
[GRI 2-6] [POJK C.4]
Referring to the business segment information disclosed in the Consolidated Financial Statements of PT Avia Avian Tbk
audited by a Public Accounting Firm (Kantor Akuntan Publik or “KAP”), Avian Brands conducts business activities in two main
segments, i.e., architectural solutions and trading goods segments. Both segments reflect the diversification of Avian Brands’
business in delivering quality products and services tailored to the needs of different markets. For more detailed information on
each business segment, including each segment’s contribution and achievements, a comprehensive explanation is disclosed
in the Annual Report, which is published separately from this Sustainability Report. Brief information about products of
Avian Brands is described as follows:
Architectural Solutions
Wall Wood and Metal Waterproofing
Sunguard Sunguard Supersilk Supersilk Supersilk Supersilk Basic Platinum Avian 3 in 1 Avian Cat Kayu No Drop No Drop Beton No Drop No Drop Basic No Drop
All-In-One Semi Kilap Anti Noda Anti Karat dan Besi Anti Panas dan Batu Alam Bitumen Black
Avitex Gold Avitex Anti Avitex Avitex Cat Avitex Wizz Aquamatt Avian Cling Avian Cling Glovin Cat Kayu No Drop No Drop No Drop No Drop No Drop
Viruz Eksterior Tembok Synthetic Zinc Chromate dan Tembok Kolam Ikan Plus 3 in 1 Serat Fiber Plaston Mortar
Aries Gold Aries Bling Aries Cat Yoko Cat Kayu Avian Cling Admiral Cat No Drop Tape No Drop No Drop Pro-X 207
Tembok dan Tembok Water Based Kapal Tile Grout Dempul Instan
Wood Care and Glue Others
Wood Eco Series Avian Lem Avian Lem Avian Non-Sag Absolute Roof Avitex Cat Yoko Cat Giant Mortar GM 265 Acian Giant Mortar
Epoxy Super Epoxy Hemat Epoxy Super Coating Genteng & Seng Genteng & Seng 220 Abu-Abu Ekonomis 270
Roof Paint
GM 275 Acian Giant Mortar GM 385 Perekat Bata
Boyo Series Avian Non-Sag Epoxy Hemat Lem Putih VIP Putih Ekonomis 380 Ringan Ekonomis
PVAc
Suzuka Cat Suzuka Spray Admiral Thinner VIP Pengupas VIP Paint Giant Mortar Giant Mortar Pro-X 208
Duco Otomotif Serbaguna Cat Tembok Remover 420 L500
Boyo Series Boyo Politur Admiral Wood Filler Epoxy
Spray
Autorefinish and Thinner Wall Paint Instant Cement
Wood Care Glue Spray Paint Peeler
Trading Goods
Pipes Furniture Furniture
Power Max Power Quad Homecare
Activ
Category Product Name
Wall Paint • Sunguard All-In-One; • Avitex Gold; • Aries Bling;
• Sunguard; • Avitex Anti Viruz; • Aries Gold;
• Supersilk Semi Kilap; • Avitex Eksterior; • Aries Cat Tembok;
• Supersilk Anti Noda; • Avitex Cat Tembok; • Aquamatt;
• Supersilk; • Avitex Wizz; • Everglo Kids Care;
• Supersilk Basic; • Avitex 4kids; • No Odor Medicare;
• Brilliant Cat Tembok Interior; • Avitex One Coat; • No Odor;
• Brilliant Cat Tembok Eksterior; • Avitex Cat Tembok Dapur & • Jasmine; and
Kamar Mandi; • Fres.
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PT Avia Avian Tbk • 2024 Sustainability Report
Category Product Name
Special Effect Paint • HomeDeco Glow In The Dark; • HomeDeco Glitz; and • HomeDeco Metallic.
• HomeDeco Magnetic;
Waterproofing • No Drop Anti Panas; • No Drop Membran; • No Drop Plus 3in1;
• No Drop Beton dan Batu Alam; • No Drop Serat Fiber; • No Drop 100; and
• No Drop; • No Drop Mortar Anti Bocor; • PRO-X 207.
• No Drop Basic; • No Drop Tape;
• No Drop Bitumen; • No Drop Tile Grout;
• No Drop Kolam Ikan; • No Drop Dempul Instan;
Wood and Metal Paint • Admiral Cat Kapal; • Avian Cat Kayu dan Besi; • Avian Cat Alumunium;
• Avian Cling Synthetic; • Glovin Cat Kayu dan Besi; • Cat Besi Anti Karat Avian 3 in 1;
• Platinum; • Yoko Cat Kayu dan Besi; and
• Avian Cling Water Based.
Wood Care • Wood-Eco Woodstain Water- • Boyo Wood Stain Solvent-Based; • Boyo Clear Coat NC
Based; • Boyo Politur Vernis Water-Based; Solvent-Based;
• Wood-Eco Woodstain Solvent- • Boyo Politur Vernis • Boyo Politur Melamin; and
Based; Solvent-Based; • Boyo Politur Spray.
• Wood-Eco Politur Eksterior P03; • Boyo Wood Filler Solvent-Based;
• Wood-Eco Politur Interior P01; • Boyo Sanding Sealer NC
Solvent-Based;
Primer • Avian Cling Zinc Chromate; • Lenkote Alkali Resisting Primer; • Belmas Zinc Chromate; and
• Avian Zinc Chromate; • Lenkote Wall Sealer; • Suzuka Epoxy Filler.
• Avitex Alkali Resisting Primer; • Yoko Cat Dasar Kayu dan Besi;
Putty • Lenkote Plamir Tembok • Avitex Plamir Tembok; and
(Wall Putty); • Aries Gold Wall Putty.
• No Odor Wall Putty;
Roof Paint • Absolute Roof Coating; • Avitex Cat Genteng & Seng; and • Yoko Cat Genteng & Seng.
Instant Cement • GM 220 Plamir Instan ; • GM 275 Acian Putih Ekonomis; • GM 480 Perekat Keramik
• GM 260 Acian Abu-Abu; • GM 380 Perekat Bata Ringan; Dinding & Lantai;
• GM 265 Acian Abu-Abu • GM 385 Perekat Bata Ringan • GM L500 Bonding Adhesive;
Ekonomis; Ekonomis; and
• GM 270 Acian Putih; • GM 420 Perekat Keramik • GM 510 Tile Grout.
Ekonomis;
Glue • Avian Lem Epoxy Super; • Avian Non-Sag Epoxy Hemat; • Viplas; and
• Avian Lem Epoxy Hemat; • Lem Putih VIP PVAc; • Admiral Wood Filler Epoxy.
• Avian Non-Sag Epoxy Super; • Lem Putih MAX PVAc;
Stone Coating • No Lumut Solvent-Based; and • No Lumut Water-Based.
Autorefinish and • Suzuka Spray; • Suzuka 2:1 PU Clear Coat; and • Suzuka 4:1 PU Clear Coat.
Spray Paint • Suzuka Cat Duco Otomotif;
Floor Coating • Avian Roadline Paint; • Avian Cat Paving; and • Avian Cat Lapangan.
Thinner • Admiral Thinner Serbaguna; • Avia Thinner Lacquer Super; • Thinner 1633;
• Avian Thinner Enamel; • Aries Thinner Lacquer A; • Thinner 1634;
• Avian Thinner B Asli; • Aries Thinner Lacquer A Special; • Thinner 1601; and
• Avia Thinner Lacquer A; • Thinner 16213; • Thinner 1602.
• Avia Thinner Lacquer A Special; • Thinner 1660;
Cement Additive • No Drop Plaston.
Others • VIP Pengupas Cat Tembok; • PRO-X 111; • Pro-X-110; and
• VIP Paint Remover; • Pro-X-208; • Pro-X-222.
• Avitex Biocidal Wash;
Supporting Products • Basic Paint Roller; • Synthetic Brush; • Masking Tape;
• Green Brush; • Budget Paint Roller; • Seal Tape;
• Yellow Brush; • All Paints Paint Roller; • Drywall Tape;
• Plastic Scrapper; • Budget Roller Cover; • Fiberglass Tape;
• Mini Refill; • Regular Roller Cover; • Roof Drain;
• Mini Roller; • All Paints Roller Cover; • Kran Air Taman;
• Paint Tray; • Abrasive Paper; • Seal Tape Ekonomis;
• White Brush; • Abrasive Cloth Roll; • Basic Paint Tray Set; and
• Paint Tray Set.
Further information on Avian Brands’ products and services can be found in the Annual Report, which is presented independently
with this Sustainability Report, Avian Brands’ website, as well as various social media and other platforms of Avian Brands.
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ABOUT AVIAN BRANDS
Organizational Scale [POJK C.3]
Description Unit 2024 2023 2022
Number of Employees [GRI 2-7] [GRI 207-4]
Avian Brands’ Employees 1,663* 1,615* 1,533*
Outsourcing Employees People 7,659* 6,868* 6,549*
Total 9,322* 8,483* 8,082*
Production Volume
Total Manufacture Metric Tons 197,339 180,540 170,986
Manufacturing
Total Manufacturing Facilities 2 2 2
Plants
Operating Revenue
Net Revenues 7,471,356 7,016,882 6,694,171
Profit Before Income Tax Expenses Million Rupiah 2,068,594 1,992,143 1,745,247
Profit for the Year 1,663,699 1,643,096 1,400,365
Total Capitalization [POJK C.3a]
Total Assets 11,060,975 11,166,987 10,792,122
Total Liabilities Million Rupiah 1,429,095 1,245,498 1,217,237
Total Equity 9,631,880 9,921,489 9,574,885
Notes:
* AVIA, TKTW, and TKBI.
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PT Avia Avian Tbk • 2024 Sustainability Report
Operational Areas [GRI 2-1] [POJK C.3]
Wholly-owned Distribution Center 124
Wholly-owned Mini Distribution Center 15
Independent Distribution Center 38
Product Distribution Areas
Wholly-owned Wholly-owned Mini Independent Number of Retail
Distribution Center Distribution Center Distribution Center Outlets Supplied
Sumatra Sumatra Sumatra Sumatra
26 5 8 11,326
Java Java Java Java
54 0 17 32,026
Kalimantan Kalimantan Kalimantan Kalimantan
15 2 4 5,548
Sulawesi Sulawesi Sulawesi Sulawesi
14 2 5 5,303
Other Areas in Other Areas in Other Areas in Other Areas in
Indonesia Indonesia Indonesia Indonesia
15 6 4 4,248
Total Total Total Total
124 15 38 58,451
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ABOUT AVIAN BRANDS
Group Structure and Subsidiaries
PT Avia Avian Tbk
50.00% 99.99% 99.99% 67.00%
PT Bangun Bersama PT Tirtakencana PT Multipro Paint
PT Solusi Rumah Praktis
Solusindo Tatawarna Indonesia
99.98%
PT Tirtakencana
Batamindo
Total Assets
Before
Operational
Name Address Business Sector Elimination
Status
(Million
Rupiah)
Direct Ownership
Jl. Raya Surabaya - Sidoarjo KM. 19, Wholesale trade of paints, warehousing
PT Tirtakencana
Desa Wadungasih, Kec. Buduran, and storage, and self-owned or leased Operating 4,176,481
Tatawarna
Kab. Sidoarjo, Jawa Timur, Indonesia. real estate.
Avian Brands Building
PT Solusi Jl. Ahmad Yani No. 317, Retail trade of paints, varnishes, and
Operating 1,066
Rumah Praktis Kel. Dukuh Menanggal, Kec. Gayungan, Lacquers, as well as painting.
Kota Surabaya, Jawa Timur, Indonesia.
Menara Satu Sentra Kelapa Gading
7th Floor, Room 6, Paint and printing ink industry, varnish
PT Multipro Jl. Boulevard Kelapa Gading LA 3 No. 1, industry (including mastics), wholesale
Operating 33,043
Paint Indonesia Kel. Kelapa Gading Timur, trade of paints, and wholesale trade of
Kec. Kelapa Gading, various building materials.
Jakarta Utara, DKI Jakarta, Indonesia.
Indirect Ownership
PT Tirtakencana
Komplek Executive Industrial Park Wholesale trade of various building
Batamindo
Blok D2 No. 8, materials, wholesale trade of other
(melalui Operating 34,708
Kel. Belian, Kec. Batam Kota, construction materials, and retail trade
PT Tirtakencana
Kota Batam, Kepulauan Riau, Indonesia. of furniture.
Tatawarna)
Joint-Venture
Sequis Tower Level 15, Wholesale trade of cement, lime, sand,
PT Bangun Jl. Jenderal Sudirman Kav. 71, and stone as construction materials,
Bersama Kel. Senayan, Kec. Kebayoran Baru, building materials, as well as basic Operating 53,536
Solusindo Kota Adm. Jakarta Selatan, or industrial chemical materials
DKI Jakarta, Indonesia. and goods.
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PT Avia Avian Tbk • 2024 Sustainability Report
Significant Changes in Avian Brands
and Supply Chain [GRI 2-6] [POJK C.6]
In 2024, no significant changes occurred in Avian Brands or consolidations. Likewise, with the supply chain,
related to closing or opening new branches, opening no significant changes impacted Avian Brands in 2024.
or closing new business units, or business mergers
Preventive Approaches or Principles
Avian Brands adopts a preventive approach or principle Approach or Principle is provided in the Risk Management
through the risk management system that is structured and Sustainability Opportunities section of the Sustainability
based on the precautionary principle in all of Avian Brands’ Governance chapter of this report.
operational activities. A full description of the Preventive
External Initiatives
In conducting its operational activities, Avian Brands follows and supports several principles and initiatives
developed by other organizations, either in the form of certifications or standards for certain areas, which are recognized
nationally and internationally. In addition to the list of achievements above, Avian Brands also participated in an external
international initiative by becoming one of the signatories of the Anti-Corruption Call to Action with more than 500
other companies worldwide. This initiative was developed at the UN Global Compact Leaders Summit in September
2023 in the United States. The Company’s involvement in this initiative can be seen on the UN Global Compact website,
https://unglobalcompact.org/take-action/action/anti-corruption-call-to-action.
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PT Avia Avian Tbk • 2024 Sustainability Report
Sustainability
Strategy
[POJK A.1] [CDSB REQ-02]
“The sustainability strategy of Avian Brands
is designed to drive every aspect of Avian
Brands’ business towards achieving the
Sustainable Development Goals (“SDGs”),
focusing on four key pillars, namely Product
Quality and Environment; Social, Labor
and Human Rights; Ethics and Governance;
and Sustainable Procurement.
By implementing sustainability principles
in an integrated manner, Avian Brands
is committed to providing added value
and excellence to its stakeholders, as well
as actively contributing to addressing
environmental and social humanitarian issues
in the communities around Avian Brands.”
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SUSTAINABILITY STRATEGY
In an effort to maintain its competitive edge in the Indonesian paint manufacturing industry, Avian Brands places
sustainability at the very heart of its strategy. Beyond offering high-quality products, we are committed to improving the
quality of business practices that promote sustainability in economic, social, environmental, and governance aspects.
Our sustainability principles not only influence each operational decision of Avian Brands, but are also designed as part of
the efforts to support the achievement of the SDGs as well as global targets established by the government and international
organizations.
We believe that consistent implementation of this policy will cement Avian Brands’ position as an innovative and
responsible industry pioneer. With this approach, Avian Brands aims to meet and exceed the expectations of its stakeholders
through creating sustainable added value. To provide a deeper insight into this commitment of Avian Brands, we have
established a sustainability policy consisting of a general policy and a specific policy. We are confident that this integrated
sustainability strategy will contribute to Avian Brands’ long-term goals, deliver sustainable benefits to society, and amplify
Avian Brands’ contribution to the achievement of the SDGs. Further information on the general and specific sustainability
policies of Avian Brands is described as follows:
General Policy [GRI 2-23]
The general sustainability policy of Avian Brands is the foundation for our responsible and sustainable business practices.
This general policy is designed to ensure that every aspect of Avian Brands’ operation adheres to sustainability principles.
By implementing this general policy, Avian Brands seeks to establish a framework that supports long-term sustainability,
benefits all stakeholders, and contributes to the broader achievement of the SDGs. Further information on the general
sustainability policy of Avian Brands is described as follows:
Complying with and fulfilling all relevant regulations and requirements of sustainable systems (quality,
environmental, social, labor, human rights, ethics, governance, and sustainable procurement) and
1 other requirements set by governments and stakeholders.
Planning, implementing, and monitoring best practices of sustainable systems (quality, environmental,
social, labor, human rights, ethics, governance, and sustainable procurement).
2
Planning, aligning, implementing, and monitoring our programs related to the Sustainable
Development Goals (“SDGs”) and continuously improving the programs with an aim to achieve
3 the 17 SDGs.
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PT Avia Avian Tbk • 2024 Sustainability Report
Specific Policy [GRI 2-23]
The general sustainability policy of Avian Brands establishes a firm foundation for all our sustainability initiatives and practices.
Drawing from this general policy, Avian Brands formulates a specific, more detailed policy to address various aspects of
operations in a more specific and targeted manner. This specific policy is designed to integrate sustainability principles,
encompassing quality, environment, social, labor, human rights, ethics, governance and sustainable procurement aspects,
into four key pillars that underpin the sustainability management and implementation across Avian Brands’ operations.
These policy pillars are designed to ensure that every aspect of Avian Brands’ operations effectively contributes to sustainability
objectives and reflects its commitment to sustainability standards in every aspect of its operations. Information on each of
these specific policy pillars is described as follows:
Product Quality Social, Labor, and Ethics and Sustainable
and Environment Human Rights Governance Procurement
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SUSTAINABILITY STRATEGY
ESG Roadmap
As a manifestation of its commitment to sustainability, Avian Brands has established a clear and measurable Environmental,
Social, and Governance (“ESG”) roadmap to achieve short, medium, and long-term sustainability goals. This Roadmap
incorporates various strategic initiatives, such as GHG emission reduction, increase of renewable energy use, implementation
of social innovations, and comprehensive sustainability management. Each step is designed to support the achievement of
global targets, such as net zero emissions, biodiversity, and generating positive social impacts. With this structured approach,
Avian Brands is optimistic that it can make tangible contributions to environmental preservation, community welfare, and
improved sustainable governance. Information on the ESG roadmap of Avian Brands is described as follows:
ESG Roadmap
Short-term Medium-term Long-term
2024 2030 2040
• Reduction in scope 1&2 GHG • Reduction in scope 1&2 GHG • Reduction in scope 1&2 GHG
emissions by >15% emissions by 50% emissions by 75%
• Installation of 474 kWp solar • Reduction of scope 3 GHG • Reduction in scope 3 GHG
panels (Sidoarjo) emissions by 5% emissions by 10% (transition
• Renewable Energy Usage of • 0% lead and chrome contents to electric vehicles for
450,000 kWh in products employees)
• Social impact assessment • Customer satisfaction • Carbon Neutral
• Collaboration on carbon offsets of >3.5 (Excellent)
• Sustainalytics: Medium Risk • Social Return on Investment
• Ecovadis: Silver Medal (“SROI”) score of 1 2050
• ESGQ 45 IDX KEHATI • Sustainalytics: Negligible Risk
• Reduction in scope 1&2 GHG
emissions by >95%
2025 (net zero emission)
2026 • Reduction of scope 3 GHG
• Reduction in scope 1&2 GHG emissions by 15%
emissions by >25% • Reduction in scope 1&2 GHG • 100% lead-free
• 82% lead-free & chrome-free emissions by >30% & chromium-free products
products • Complete inventory of • SROI score of >
• Biodiversity monitoring scope 3 GHG emissions • 1 SRI KEHATI
• Implementation of social • Gold PROPER
innovations
• Sustainalytics: Low Risk (<20)
• Ecovadis: Gold Medal
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PT Avia Avian Tbk • 2024 Sustainability Report
Support for Sustainable
Development Goals [GRI 2-24]
In its efforts to achieve sustainable growth, Avian Brands not only focuses on the pursuit of positive economic results, but also
remains committed to improving environmental quality as well as the welfare of its employees and surrounding communities.
In this regard, we have implemented sustainable governance principles in every aspect of our operations and the policies
of Avian Brands. This commitment is an integral part of Avian Brands’ contribution to achieving the SDGs as stipulated by
the government. By carrying out this initiative, we aspire to support and accelerate progress towards achieving SDG targets,
while ensuring that every step taken by Avian Brands contributes towards a balance between economic growth, environmental
protection, social welfare, and sustainable governance. The commitment of Avian Brands in supporting the SDGs is further
described as follows:
Product Quality and Environment
Clean Water and Sanitation Affordable and Clean Energy
Responsible Consumption and
Climate Action
Production
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SUSTAINABILITY STRATEGY
Product Quality and Environment
Sustainability Strategy [POJK A.1] [CDSB REQ-02]
1. Formulating and implementing short-term, medium-term, and long-term goals, objectives, and programs by considering the
characteristics, scale, and impact in accordance with the environmental management system, energy management system, and green
industry, while continuously innovating.
2. Improving quality, competitive, and environmentally friendly products with efficient production costs.
3. Improving service quality, ensuring timely product delivery, meeting customer demands, and providing added value for customers.
4. Opting for materials and machinery with efficient energy use and low greenhouse gas effects for the manufacturing process.
5. Implementing energy efficiency measures and maximizing the use of new renewable energy through monitoring, implementing, and
encouraging design or development activities across the entire Avian Brands.
6. Conducting efforts to reduce greenhouse gas emissions for scopes one and two through monitoring and implementation across the
entire Avian Brands operations, up to reporting to stakeholders.
7. Encouraging the use of renewable materials and environmentally friendly chemicals.
8. Implementing raw material efficiency through monitoring, implementing, and encouraging design or development activities across
the entire Avian Brands.
9. Using water optimally and efficiently in Avian Brands’ activities as well as carrying out water conservation programs.
10. Conducting maintenance and control of air pollution control equipment and machinery.
11. Reducing and controlling Hazardous Material and Hazardous Waste.
12. Controlling non-hazardous solid waste through 3R (Reduce, Reuse, Recycle).
13. Conducting an inventory of water usage, outlets of wastewater, Hazardous and Non-Hazardous Waste, and air pollution.
14. Undertaking efforts to protect and conserve biodiversity.
15. Providing socialization of information related to the safety and security of product applications.
16. Identifying, conducting, and evaluating all company activities through Life Cycle Assessment/LCA integrated with environmental,
energy, and greenhouse gas emission aspects.
17. Involving the community in continuous improvement of the environmental management system.
Social, Labor, and Human Rights
Quality Education Gender Equality
Decent Work and Industry, Innovation, and
Economic Growth Infrastructure
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PT Avia Avian Tbk • 2024 Sustainability Report
Sustainability Strategy [POJK A.1] [CDSB REQ-02]
1. Ensuring that all personnel within Avian Brands are treated fairly and with dignity based on human rights principles.
2. Ensuring proper and regular participatory consultation processes with all stakeholders.
3. Providing safe and healthy working environments to eliminate hazards and reduce OHS (Occupational Health and Safety) risks.
4. Creating a work environment that is safe, comfortable, motivating, respectful, and free from all forms of harassment.
5. Providing funds and commitment to support the improvement of company personnel’s knowledge, skills, and competence.
6. Ensuring workers are above 18 years of age and that working hours and wage payments are in accordance with applicable laws and
regulations and that there is no human trafficking.
7. Providing equal employment opportunities and treatment regardless of gender, race, religion, color, ethnicity, class, and non-
discrimination to persons with disabilities.
8. Ensuring employee preparedness for retirement.
9. Upholding the freedom of assembly, expression, and participation in labor organizations/unions in accordance with the prevailing
laws and regulations as well as providing room to negotiate and consult with Avian Brands.
10. Respecting the rights of local communities, including indigenous and traditional communities.
11. Participating in community empowerment.
12. Respecting the right of individuals to act without coercion and to maintain control over their personal information, as long as it does
not relate to or impact Avian Brands.
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SUSTAINABILITY STRATEGY
Ethics and Governance
Industry, Innovation, and Peace, Justice, and
Infrastructure Strong Institutions
Sustainability Strategy [POJK A.1] [CDSB REQ-02]
1. Preventing and taking action against corruption, bribery, fraud, and money laundering.
2. Conducting recruitment and selection of employees free of charge.
3. Avoiding conflict of interest between employees within Avian Brands.
4. Maintaining the ethics and confidentiality of company and supplier data.
5. Providing reliable infrastructure to manage all forms of risks or threats related to Avian Brands’ data security and keeping up with
technological developments.
6. Ensuring secure, accurate, available data, ease of connection and a variety of user-friendly programs.
7. Ensuring Avian Brands’ neutrality towards any political interests or groups by not being involved materially or non-materially.
Sustainable Procurement
Responsible Consumption and
Partnerships for the Goals
Production
Sustainability Strategy [POJK A.1] [CDSB REQ-02]
1. Selecting suppliers using environmental criteria.
2. Undertaking efforts to reduce scope three greenhouse gas emissions through supplier socialization and monitoring.
3. Selecting suppliers using social and human rights criteria.
4. Providing equal rights and opportunities to all local suppliers and women business owners.
5. Evaluating suppliers’ compliance with all Occupational Health and Safety (OHS) laws and regulations.
6. Selecting vendors and suppliers that do not have mineral conflicts in their procurement practices.
7. Selecting qualified and competitively priced suppliers in a transparent manner.
8. Supplier selection is not based on kinship interests, providing opportunities for multiple vendors to enter the tender process.
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PT Avia Avian Tbk • 2024 Sustainability Report
Sustainability Strategy related
to Climate Change [GRI 201-2] [TCFD STRA.a, STRA.b, STRA.c]
Avian Brands has identified various short-, medium-, assessments have been prepared by Avian Brands based
and long-term risks and opportunities related to climate on the TCFD framework. We believe that Avian Brands’
change. In the short term, the main risks include operational strategy may be affected by climate risks in terms of supply
disruptions due to extreme weather, such as floods and chain resilience and increased operating expenses due to
heat waves, which may affect supply chains and raise stricter environmental regulations. This potential increase
energy and transportation expenses. However, this also in costs could affect the revenue and financial position of
creates opportunities for innovations in environmentally Avian Brands. Therefore, Avian Brands actively reviews and
friendly products that meet the demands of increasingly adjusts its strategies to address these potential risks by
sustainability-conscious customers. In the medium term, investing in green innovations and technologies, as well as
risks such as stricter environmental regulations, including improving efficiency in resource management practices.
carbon taxes and energy efficiency requirements, may
increase the costs incurred by Avian Brands. However, Avian Brands is making numerous efforts to address financial
this also opens opportunities for Avian Brands to adopt risks attributable to climate change, by allocating capital
green technologies and improve operational efficiency, expenditure/capex of 0.91% to environmentally friendly
as well as expand the market for environmentally friendly product research and development as well as procurement
products. In the long term, risks related to climate change, of low-emission forklifts. In addition, Avian Brands
such as rising global temperatures and changing weather continues to innovate to improve energy efficiency across
patterns, may result in raw material scarcity and increased all operational lines. Financial planning is also adjusted
production costs. However, opportunities also arise through to include investments in low-emission technologies, as
developing more sustainable business activities, such as well as preparation for changing regulations and market
renewable energy diversification and environmentally trends that are increasingly oriented towards sustainability.
friendly product innovation. Strategically, Avian Brands allocates an operating
expense/opex budget of IDR355.16 million to diversify
In response to these challenges, Avian Brands has formulated renewable energy use and IDR110.00 million for tree
a formidable strategy that is resilient to climate-related risks planting programs as part of its carbon offset strategy. With
and opportunities, taking into account the transition to a this approach, Avian Brands seeks to mitigate climate risks
low-carbon economy in line with a global warming scenario while capitalizing on growth opportunities arising from
of 2°C or lower. Climate-related risk and opportunity such a transition to a green economy.
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SUSTAINABILITY STRATEGY
2024
Sustainability Progress
Product Quality and Environment
Sustainability Target [TCFD MET.c] Sustainability Performance Achievements [TCFD MET.c]
Increasing the number of environmentally A total of 34 products have received Singapore Green Label
friendly product mix certification.
• Avian Brands successfully increased the number of
Achieving lead-free and chrome-free products
water-based paint products to 82.17%.
by 2035.
• Only 10.40% of paint products contains lead and chrome.
The 2024 customer satisfaction survey saw an improvement
compared to 2023, from 3.40 to 3.41 on a scale of 4.00 with
Improving customer satisfaction.
a good category. The assessment included product quality,
delivery quality, and service quality.
Avian Brands has successfully implemented various GHG
emissions efficiency programs, achieving the following results
in 2024:
• Reducing Scope 1 and 2 GHG emissions by up to 15,99%,
compared to the 2021 baseline.
• Lowering energy intensity by 5.11%;
Reducing Scope 1 and 2 GHG emissions by 50.00%
• Increasing solar panel installations by 1,052 units, bringing
in 2030, compared to the 2021 baseline.
the total installations to 2,280 units (1,582 at the Sidoarjo
plant and 698 at the Serang plant);
• Increasing the use of renewable energy mix by 559,201
kWh or equivalent to 2,013.12 GJ; and
• Replacing 6 units of diesel forklifts with electric forklifts
(5 at the Sidoarjo plant and 1 at the Serang plant).
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PT Avia Avian Tbk • 2024 Sustainability Report
Sustainability Target [TCFD MET.c] Sustainability Performance Achievements [TCFD MET.c]
Avian Brands has planted trees in certain locations as well as in
the vicinity of its plants, with the following description:
• Planting a total of 15,000 trees in the last 3 years on the
slopes of Mount Arjuno (5,000 in 2024, 5,000 in 2023, and
5,000 in 2022) with a total potential carbon sequestration
of 4,017,645 KgCO2e;
Planting trees that can sequester up to
• Planting a total of 5,625 trees consisting of 162 species in
6,692,800 kgCO2e of carbon by 2030.
the areas of Sidoarjo and Serang plants, with a total carbon
sequestration of 458,055 KgCO2e; and
• Planting a total of 169 trees consisting of 4 species
around the TKTW operational area, with a total carbon
sequestration of 359,328 KgCO2e.
Avian Brands has carried out various programs in order to
identify and reduce the amount of Scope 3 GHG emissions, as
follows:
• Total Scope 3 GHG emissions in 2024 of 154,786.52
tonsCO2e;
Reducing Scope 3 GHG emissions by 5.00% in • Organizing socialization on Scope 3 GHG emissions
2035, compared to the 2024 baseline. reporting to all key suppliers;
• Conducting on-site audits of key suppliers and collecting
data related to Scope 3 GHG emissions reporting; and
• Conducting an inventory of Scope 3 GHG emissions data in
accordance with GHG Protocol guidelines.
Avian Brands has carried out various programs in order to
reduce the intensity of water usage, as follows:
Reducing water usage intensity. • Utilizing the Rainwater Harvesting system; and
• Using reused water from tank washing as a raw material
mixture.
Avian Brands has implemented an integrated waste
management program, leading to the following results:
Improving waste management. • Reduction in disposed Hazardous Waste reaching 17.23%;
and
• Product waste recycling ratio reaching 16.97 kg/ton.
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SUSTAINABILITY STRATEGY
Social, Labor, and Human Rights
Sustainability Target Sustainability Performance Achievements
Achieving zero Fatality and zero Lost Time Avian Brands successfully achieved OHS performance targets
Injury (“LTI”). related to the number of Fatalities and zero LTI.
Increasing the number of employee training Avian Brands successfully exceeded its target for employee
hours. training hours, reaching 144,528.75 hours.
Avian Brands realized various community empowerment
programs, as follows:
• In the environmental pillar, Avian Brands successfully
conducted 164 programs, among them was the Desa
Hijau Berseri (Bersih and Lestari) (Clean and Sustainable
Increasing the number of community Green Village) Program, focusing on imimproving the food
empowerment programs and their security of communities in Wadungasih Village, Sidoarjo;
beneficiaries. • In the education pillar, Avian Brands successfully conducted
25 programs, including scholarships for 25 children of
employees; and
• In the disaster response pillar, Avian Brands successfully
conducted 6 programs, one of which was the distribution
of flood disaster relief.
Ethics and Governance
Sustainability Target Sustainability Performance Achievements
Avian Brands has implemented sustainability governance
programs in all lines of its operation, with the following
achievements:
• Enforcing a culture of anti-corruption, • Effective implementation of the whistleblowing system,
anti-bribery, and anti-fraud within the with 3 reports submitted through the whistleblowing
environment of Avian Brands and all system in 2024. Based on the report verification results,
partners. there were no reports related to anti-corruption violations;
• Protecting confidentiality of information • However, the Internal Audit Unit found 1 case of alleged
and preventing data breaches. anti-corruption violation (minor risk category) through its
audit activities; and
• All acts above have been resolved in accordance with the
procedures and regulations of Avian Brands.
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PT Avia Avian Tbk • 2024 Sustainability Report
Sustainable Procurement
Sustainability Target Sustainability Performance Achievements
Avian Brands has realized various programs to improve the
implementation of sustainability practices throughout the
supply chain, as follows:
• Conducting an assessment of 20% of key suppliers which
Ensure that all suppliers of Avian Brands have
contribute to 80% of the total purchase value;
complied with the sustainability aspects as
• Conducting socialization of sustainability policy to all key
stipulated by Avian Brands.
suppliers;
• Conducting training on scope 3 GHG emissions disclosure
to key suppliers; and
• Ensuring suppliers do not have mineral conflicts.
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SUSTAINABILITY STRATEGY
Evaluation of Sustainability
Strategy Implementation
Avian Brands periodically evaluates the effectiveness of the objectives in sustainability aspects can be achieved with
implementation of sustainability strategies and initiatives optimal results. Evaluation of sustainability strategy
under the pillars of Product Quality and Environment; implementation involves the top management along with
Social, Labor and Human Rights; Ethics and Governance; related work units. [GRI 3-3]
and Sustainable Procurement. This is part of Avian
Brands efforts to ensure that Avian Brands’ targets and
Challenges and Issues in Implementing
Sustainability Principles and
Future Strategies [POJK E.5]
The implementation of sustainability principles in the operational activities of Avian Brands, has faced various challenges
from multiple sources, both internal and external. These challenges encourage Avian Brands to constantly adapt and seek
innovative solutions. In responding to them, Avian Brands is committed to implementing proactive approaches, which involve
continuous evaluation and dynamic adjustment of strategies. By effectively identifying and addressing these challenges,
Avian Brands strives to not only meet sustainability standards, but also to strengthen its position in facing the changes
and developments in the business environment. Information on those challenges and Avian Brands’ responses thereto,
are described as follows:
Avian Brands Challenges and Response
Internal Challenges Avian Brands Response
1 Building sustainability awareness and culture. Avian Brands periodically conducts socialization
and training on sustainability for all employees.
2 Producing environmentally friendly products Avian Brands implements several key strategies,
requires the use of high-quality raw materials including improving operational efficiency
that adhere to sustainability standards. through production technology, establishing
The use of these raw materials generally results in partnerships with sustainable suppliers to obtain
higher costs compared to conventional products. high-quality raw materials at competitive prices,
This results in increased production costs as well and continuous research and development to
as the cost of goods sold for environmentally explore cost-effective innovations that meet
friendly products. sustainability standards.
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PT Avia Avian Tbk • 2024 Sustainability Report
External Challenges Avian Brands Response
1 High demands from external stakeholders, Avian Brands actively realizes its sustainability
especially investors, on Avian Brands’ commitments by establishing targets and
sustainability achievements in a fairly short time. implementing effective strategies to deliver
tangible results, as reflected in improved ESG
rating scores.
2 Emerging new regulations and policies on Avian Brands continuously keeps updated
sustainability and reporting thereof, both with sustainability policy developments and
domestic and international. makes maximum adjustments to meet these
requirements.
3 Limited customer understanding and awareness Avian Brands implements its strategy by
of green products. educating and raising awareness of the customers
on the long-term value of environmentally
friendly products, including their health and
4 Environmentally friendly products typically environmental impact. In addition, Avian Brands
come with relatively higher selling prices than strives to offer products at a wide range of prices
conventional products, which can influence in order to reach a broader market without
customer decisions. compromising on quality and sustainability.
In addition to the above challenges, Avian Brands also sees opportunities from the implementation of sustainability principles
that can directly improve Avian Brands’ quality and positive image. We are optimistic that consistent and comprehensive
implementation of sustainability principles can foster robust business resilience that will strengthen Avian Brands’
competitiveness. Research and development initiatives undertaken by Avian Brands to create high-quality and environmentally
friendly products provide opportunities and strengths for Avian Brands to remain the public’s first choice.
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SUSTAINABILITY STRATEGY
Highlights of Events in 2024
January
Petik Laut CSR Program: Avian Brands Organized Boat Painting
Competition in Manokwari, West Papua
Avian Brands Peduli, in collaboration with Depo Makmur Manokwari,
organized a painting competition for 50 fishing boats at Ketapang
Harbor, Manokwari in celebration of the 169th Anniversary of
the Gospel Proclamation. Avian Brands provided wood and metal
paints to decorate fishing boats, support the community of Mansinam
Island, and strengthen its commitment to the environmental pillar.
This CSR program reflects the spirit of #JadiBaruLagi, bringing positive
change to Indonesia’s land and seas.
February
Environmental Protection Program: Avian Brands Conducted
Ceremonial Planting of 5,000 Trees on the Slopes
of Mount Arjuno
In 2023, Avian Brands conducted a ceremonial planting of 5,000
trees in the Jendela Langit Tourism Area, Prigen, Pasuruan, as part
of its ongoing efforts to reduce the impact of climate change.
Up to 2024, Avian Brands has planted a total of 15,000 trees
with an estimated carbon emission sequestration of up to
4,017,645 tonsCO2e. With this contribution, Avian Brands is able
to keep making sustainable positive impacts on carbon emission
reduction and nature conservation.
March
Avian Brands Peduli: Avian Brands Distributed Staple Food
Packages to Sidoarjo Residents
In the month of Ramadan of 2024, Avian Brands distributed 500
staple food packages to Sidoarjo residents through the Avian Brands
Peduli program, containing rice, flour, sugar, cooking oil, tea, and
instant noodles, as a manifestation of Avian Brands’ concern for
the community. This program reflected Avian Brands’ commitment
to making a positive impact and fostering the spirit of giving and
solidarity in Indonesia.
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PT Avia Avian Tbk • 2024 Sustainability Report
April
Avian Brands Peduli: Painting a Bright Future for Children at
Peduli Anak Foundation
Avian Brands contributed to the educational sector by supplying
2,633 kg of paint for the construction of a Child Care Center in
Sumbawa. Included in this aid were several of Avian Brands’ flagship
products, such as Sunguard Emulsion, Avitex Gold, wood and metal
paints, and primers. Avian Brands continues to positively contribute
to the community, and is determined to keep bringing new colors
and hope to children in Indonesia.
May
Avian Brands was Selected as a Speaker on Environmental
Management at the Environmental Agency of East Java
Province Event
Avian Brands was the only private sector speaker at the Workshop
for Business and/or Manufacturing Activities Monitoring, organized
by the Environmental Agency of East Java Province. The Quality
Assurance & Sustainability Manager, Mr. Eko Hajar Prakoeswo,
delivered a presentation on emissions, energy and waste
management. The presence of Avian Brands as a presenter indicated
the government’s recognition of its success in environmental
management, being the only paint company in Indonesia to
achieve the Green PROPER award for three consecutive years,
from 2022 to 2024.
Juni
Inclusion in SRI-KEHATI and ESGSKEHATI Indexes as Proof of
Avian Brands’ Sustainable Business Practices
Avian Brands made history through its inclusion as a constituent of
the SRI-KEHATI Index for the period of June 3, 2024, to November
29, 2024, as announced by the Indonesia Stock Exchange (IDX) on
May 27, 2024. The index features the 25 best stocks based on ESG
performance and liquidity assessment. In addition, Avian Brands
was also included in the IDX KEHATI Sector Leaders ESG Index
(ESGSKEHATI) in this period, showing a remarkable achievement
which followed its inclusion in the ESGQKEHATI Index.
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SUSTAINABILITY STRATEGY
July
Avian Brands Received the 2024 ESG Award as Best Issuer
in the Capital Market Sector
A number of issuers and financial institution companies received the
2024 ESG Award from Yayasan Kehati for the Capital Market category,
as announced on Tuesday, July 30, 2024. Avian Brands was awarded
the Best Issuer category for the implementation of environmental,
social, and governance aspects. Executive Director of Yayasan Kehati,
Riki Frindos, emphasized the significance of promoting ESG and
sustainable economy, shifting from a high to a low carbon economy
and from a linear to a circular economy.
August
Avian Brands Peduli: Launching of New CSR Innovations
in Wadungasih Village, Through the Processing of Catfish and
Moringa Leaves for Economic Empowerment of the Community
Avian Brands conducted a community empowerment program
in Wadungasih Village, focusing on improving the community’s
food security. Activities included diversification of urban farming
plants, farming of catfish, workshop on processing food from
moringa leaves and catfish, procurement of segregated waste bins,
training of environmental activists, and revitalization of waste bank
facilities.
September
Avian Brands Honored as the Winner
of the 2023 Annual Report Award (“ARA”)
Avian Brands was named winner of the 2023 ARA Awards
in the “Non-State-owned/Local Government-owned
Enterprise/Non-Financial Enterprise” category. The award recognized
the disclosure of information in the Annual Report and Sustainability
Report as well as best practices in corporate governance, which are
constantly updated to align with current developments.
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PT Avia Avian Tbk • 2024 Sustainability Report
October
Avian Brands has Implemented the INDI 4.0 Assessment
Verification by the Ministry of Industry of
the Republic of Indonesia
The INDI 4.0 is a reference index used by both the industry and the
government to assess the level of industry preparedness in adopting
technologies and systems that support the industrial revolution 4.0.
The assessment method was carried out in two stages, starting with
completing online surveys, and followed by field verification at the
Sidoarjo Head Office. Avian Brands achieved the “mature” category in
its preparedness results.
November
Avian Brands Held Annual MCU: Evidence of Avian Family’s
Concern for Health
Avian Brands held another Medical Check Up (“MCU”) attended
by 1,019 employees, including outsourced employees. This MCU
was designed to monitor employees’ health while detecting
potential occupational illnesses. This reflects Avian Brands’ tangible
commitment to the health and well-being of all employees, without
exception.
December
Avian Brands Received the Green Industry Leader Award at the
2024 Green Future Summit
This award was presented in recognition of Avian Brands’
commitment to integrating sustainable practices that positively
impact the environment. As part of its continuous efforts to support
efficient and environmentally friendly management of natural
resources, Avian Brands continues to innovate in sustainable
products and business processes.
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SUSTAINABILITY STRATEGY
Awards, Assessments, and Certifications
AWARDS
Through consistent implementation of best business practices, Avian Brands has achieved positive recognition and
appreciation from various stakeholders. These awards highlight Avian Brands’ dedication to innovating and operating to the
highest standards, and reflect its efforts to meet and even exceed expectations. These accomplishments not only cement
Avian Brands’ reputation as a company that is committed to quality and integrity, but also exemplify our core values towards
sustainability, which are implemented in every aspect of Avian Brands’ activities. Information regarding awards received by
Avian Brands throughout 2024 is described as follows:
1 2 3
2024 ESG Award as Best Issuer in the 2024 Katadata Environmental, Social, Recognition for Avian Brands’ Initiatives
Capital Market Sector & Governance Award (“KESGI”) in Promoting Blood Donation in 2023
ESG Award in the Chemicals Sector for Ninth (IX) Highest Number of Blood Donation
the Environment Category (308 Blood Bags)
Organizer : Yayasan Keanekaragaman Organizer : Katadata Organizer : Indonesia Red Cross of
Hayati Indonesia (“KEHATI”) Recipient : PT Avia Avian Tbk Sidoarjo Regency
Recipient : PT Avia Avian Tbk Period : 2024 Recipient : PT Avia Avian Tbk
Period : 2024 Period : 2024
4 5 6
2023 Annual Report Award Green Industry Leader at the National PROPER Green Rating
2024 Green Future Summit
Organizer : National Committee on Organizer : Sun Energy Organizer : Ministry of Environment and
Governance Policy (Komite Recipient : PT Avia Avian Tbk Forestry of the Republic of Indonesia
Nasional Kebijakan Period : 2024 Recipient : PT Avia Avian Tbk
Governansi or “KNKG”) Period : 2023 - 2024
Recipient : PT Avia Avian Tbk
Period : 2024
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PT Avia Avian Tbk • 2024 Sustainability Report
7 8
Top 50 Big Capitalization Public Listed Company Forbes “200 Best Under A Billion 2024”
Organizer : Indonesian Institute for Corporate Directorship Organizer : Forbes
Recipient : PT Avia Avian Tbk Recipient : PT Avia Avian Tbk
Period : 2024 Period : 2024
ASSESSMENT
Recognition from various rating agencies on Avian Brands’ sustainability performance, particularly for ESG aspects,
reflects Avian Brands’ achievement in implementing best practices in each sustainability dimension. These assessments
underscore our dedication to operating responsibly and integrating ESG principles into all operations of Avian Brands.
In addition, the successful achievement of these ratings indicates that Avian Brands’ sustainability strategies have proven
effective in positively impacting the environment and surrounding communities. Information regarding ratings received by
Avian Brands throughout 2024 is described as follows:
Silver Medal Medium Risk
Organizer : EcoVadis Organizer : Morningstar Sustainalytics
Recipient : PT Avia Avian Tbk Recipient : PT Avia Avian Tbk
Period : 2024 Period : 2024
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SUSTAINABILITY STRATEGY
CERTIFICATION
Avian Brands’ commitment to responsible business practices is reflected in our efforts to comply with all applicable laws and
regulations, as well as to implement the best national and international standards relevant to our industry. We believe that
obtaining relevant certifications is a crucial step in ensuring that Avian Brands’ operational activities remain professionally
and properly managed, and relevant to the latest developments in the industry. By upholding this commitment, we strive to
maintain the quality and integrity of Avian Brands’ operations, while adapting to best standards and practices that promote
the sustainability and growth of Avian Brands. Information regarding certifications held by Avian Brands up to the end of 2024
is described as follows:
International Standardization Organization (“ISO”)
The ISO certification is an international standard used to assess and recognize Avian Brands’ management systems in
various sectors. This certification reflects Avian Brands’ commitment to operating with the principles of efficiency, quality,
sustainability and safety. By obtaining the ISO certifications in several key areas, Avian Brands ensures the implementation
of best practices that comply with global standards, thus supporting Avian Brands’ performance in creating a safe,
efficient and sustainable work environment. By the end of 2024, Avian Brands had obtained 5 ISO certifications in several areas,
as described below:
Name of Certification Organizer Validity Period
ISO 14001:2015 on Environmental Management System 1 PT Lloyd’s Register Indonesia Until February 18, 2025
ISO 50001:2018 on Energy Management System 2 PT Lloyd’s Register Indonesia Until March 2, 2025
ISO/IEC 27001:2013 on Information Security
Intertek Certification Limited Until October 31, 2025
Management System 3
ISO 9001:2015 on Quality Management System 4 LRQA Limited Until February 27, 2027
ISO 45001:2018 on Occupational Health and Safety
LRQA Limited Until October 26, 2027
Management System 5
1 2 3
Current issue date: 19 February 2022 Original approval(s):
Expiry date: 18 February 2025 ISO 14001 - 19 February 2013 Current Issue Date: 3 March 2022 Original approval(s):
Certificate identity number: 10424288 Expiry Date: 2 March 2025 ISO 50001 - 3 March 2022
Certificate Identity Number: 10430998
Certificate of Approval Certificate of Approval
This is to certify that the Management System of: This is to certify that the Management System of:
PT Avia Avian Tbk PT Avia Avian Tbk
Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia Jl Raya Surabaya-Sidoarjo Km.19, Desa Wadungasih Buduran Sidoarjo, East Java, 61252, Indonesia
has been approved by LRQA to the following standards: has been approved by LRQA to the following standards:
ISO 14001:2015 ISO 50001:2018
Approval number(s): ISO 14001 – 00053962 Approval Number(s): ISO 50001 – 00035106
This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable
to this approval are listed.
The scope of this approval is applicable to:
Manufacture of paint and resin including can making and mortar product. The scope of this approval is applicable to:
Manufacture of paint and resin including can making and mortar product.
Luis Cunha Luis Cunha
________________________
________________________
Area Operations Manager - SAMEA
Area Operations Manager - SAMEA
Issued by: PT. Lloyd's Register Indonesia
Issued by: PT. Lloyd's Register Indonesia
for and on behalf of: LRQA Limited
for and on behalf of: LRQA Limited
LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'. LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.
liability is exclusively on the terms and conditions set out in that contract. Issued by: PT. Lloyd's Register Indonesia, LRQA Indonesia, Dea Tower 1 12th Floor, Kawasan Mega Kuningan, Jl. Mega Kuningan Barat IX Kav. E4.3 No.1, Jakarta 12950,
Issued by: PT. Lloyd's Register Indonesia, LRQA Indonesia, Dea Tower 1 12th Floor, Kawasan Mega Kuningan, Jl. Mega Kuningan Barat IX Kav. E4.3 No.1, Jakarta 12950, Indonesia for and on behalf of: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
Indonesia for and on behalf of: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
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Indonesia for and on behalf of: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom Indonesia for and on behalf of: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
Issued by: PT. Lloyd's Register Indonesia, LRQA Indonesia, Dea Tower 1 12th Floor, Kawasan Mega Kuningan, Jl. Mega Kuningan Barat IX Kav. E4.3 No.1, Jakarta 12950, Issued by: PT. Lloyd's Register Indonesia, LRQA Indonesia, Dea Tower 1 12th Floor, Kawasan Mega Kuningan, Jl. Mega Kuningan Barat IX Kav. E4.3 No.1, Jakarta 12950,
liability is exclusively on the terms and conditions set out in that contract. liability is exclusively on the terms and conditions set out in that contract.
howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'. LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
for and on behalf of: LRQA Limited for and on behalf of: LRQA Limited
Issued by: PT. Lloyd's Register Indonesia Issued by: PT. Lloyd's Register Indonesia
Area Operations Manager - SAMEA Area Operations Manager - SAMEA
________________________ ________________________
Luis Cunha Luis Cunha
4 5
Manufacture of paint and resin including can making and mortar product.
The scope of this approval is applicable to:
Manufacture of paint and resin including can making and mortar product.
The scope of this approval is applicable to: to this approval are listed.
This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable
Approval Number(s): ISO 50001 – 00035106
Approval number(s): ISO 14001 – 00053962
ISO 50001:2018
ISO 14001:2015
has been approved by LRQA to the following standards:
has been approved by LRQA to the following standards:
Jl Raya Surabaya-Sidoarjo Km.19, Desa Wadungasih Buduran Sidoarjo, East Java, 61252, Indonesia
Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia
PT Avia Avian Tbk PT Avia Avian Tbk
Current issue date: 28 February 2024 Original approval(s):
This is to certify that the Management System of: Current issue date:
Expiry date:
27 October 2024
26 October 2027
Original approval(s):
ISO 45001 - 5 November 2020
This is to certify that the Management System of: Expiry date: 27 February 2027 ISO 9001 - 28 February 2007 Certificate identity number: 10639949
Certificate identity number: 10582361
Certificate of Approval Certificate of Approval
Certificate of Approval Certificate of Approval
Certificate Identity Number: 10430998
Expiry Date: 2 March 2025 ISO 50001 - 3 March 2022
Certificate identity number: 10424288 Current Issue Date: 3 March 2022 Original approval(s):
Expiry date: 18 February 2025 ISO 14001 - 19 February 2013
This is to certify that the Management System of: This is to certify that the Management System of:
Current issue date: 19 February 2022 Original approval(s):
PT Avia Avian Tbk PT Avia Avian Tbk
Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia
has been approved by LRQA to the following standards: has been approved by LRQA to the following standards:
ISO 9001:2015 ISO 45001:2018
Approval number(s): ISO 9001 – 0044727 Approval number(s): ISO 45001 – 0044850
This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable
to this approval are listed. to this approval are listed.
The scope of this approval is applicable to: The scope of this approval is applicable to:
Manufacture of paint, resin, can making and mortar product. Manufacture of paint and resin including can making and mortar product.
Luis Cunha
Luis Cunha
________________________
________________________
Area Operations Manager - North Asia & SAMEA
Area Operations Manager - North Asia & SAMEA
Issued by: LRQA Limited
Issued by: LRQA Limited
LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
liability is exclusively on the terms and conditions set out in that contract. howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom liability is exclusively on the terms and conditions set out in that contract.
Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
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Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
liability is exclusively on the terms and conditions set out in that contract. liability is exclusively on the terms and conditions set out in that contract.
howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
Issued by: LRQA Limited
Issued by: LRQA Limited
Area Operations Manager - North Asia & SAMEA
Area Operations Manager - North Asia & SAMEA
________________________
________________________
Luis Cunha
Luis Cunha
50 Manufacture of paint, resin, can making and mortar product.
The scope of this approval is applicable to:
Manufacture of paint and resin including can making and mortar product.
The scope of this approval is applicable to:
to this approval are listed.
This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable to this approval are listed.
This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable
Approval number(s): ISO 9001 – 0044727
Approval number(s): ISO 45001 – 0044850
ISO 9001:2015
ISO 45001:2018
has been approved by LRQA to the following standards:
has been approved by LRQA to the following standards:
Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia
Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia
PT Avia Avian Tbk PT Avia Avian Tbk
This is to certify that the Management System of:
This is to certify that the Management System of:
Certificate of Approval Certificate of Approval
Certificate identity number: 10582361
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PT Avia Avian Tbk • 2024 Sustainability Report
Indonesian National Standard (“SNI”)
The SNI is a standard applied in Indonesia to ensure the quality, safety, and performance of manufactured products in
accordance with applicable requirements. The SNI certification reflects Avian Brands’ commitment to delivering high-quality
products that not only comply with national quality standards, but are also competitive in a wider market. With this certification,
Avian Brands continues to solidify its position in the domestic market, while simultaneously promoting the achievement
of better standards of quality in every product offered. By the end of 2024, Avian Brands had obtained 2 SNI standards
for 7 products, as described below:
Name of Certification Product Type Organizer Organizer
SNI 3564:2014 1 Sunguard Exterior Chempack Product Certification Institute
of the Center for Standardization, and
Aquamatt, Aries Services of Chemical, Pharmaceutical and Until November 3, 2026
SNI 3564:2014 2 Gold, Avitex, Everglo, Interior Packaging Industry, Ministry of Industry
Supersilk, and No Odor of the Republic of Indonesia
1 2
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SUSTAINABILITY STRATEGY
Singapore Green Label (“GLS”)
The GLS certification is a recognition for environmentally friendly products that are assessed through strict processes in various
aspects, from environmentally friendly requirements for end users, to consideration of the entire product life cycle by means
of life cycle analysis. This certification is a testament to Avian Brands’ commitment to manufacturing environmentally friendly
products that are safe for customers. This widely recognized certification lends credibility through international accreditation
and ensures that Avian Brands’ products comply with stringent sustainability standards. In addition to opening up new market
opportunities, this certification also brings competitive advantages, reduces environmental impact, and improves production
efficiency, while simultaneously saving costs. Among Avian Brands’ flagship products that have obtained GLS certification are
those of the Avitex series, and by the end of 2024, a total of 34 Avian Brands’ products are GLS-certified, as described below:
Product Organizer Validity Period
Avitex Alkali Resisting Primer 1 Singapore Environment Council Until January 18, 2025
Avitex Wizz 2 Singapore Environment Council Until March 22, 2025
Brilliant Exterior 3 Singapore Environment Council Until June 13, 2025
No Drop Basic 4 Singapore Environment Council Until June 13, 2025
Avitex Emulsion 5 Singapore Environment Council Until June 13, 2025
Brilliant Cat Tembok Interior 6 Singapore Environment Council Until July 18, 2025
Sunguard 7 Singapore Environment Council Until November 24, 2025
Everglo 8 Singapore Environment Council Until November 24, 2025
Supersilk 9 Singapore Environment Council Until November 24, 2025
Avitex Dapur & Kamar Mandi 10 Singapore Environment Council Until November 24, 2025
Aquamatt 11 Singapore Environment Council Until November 24, 2025
Lenkote Alkali Resisting Primer 12 Singapore Environment Council Until November 24, 2025
No Odor 13 Singapore Environment Council Until November 24, 2025
Supersilk Semi Kilap 14 Singapore Environment Council Until November 24, 2025
No Drop Anti Panas 15 Singapore Environment Council Until December 22, 2025
Avitex Gold 16 Singapore Environment Council Until December 22, 2025
Avitex 4 Kids 17 Singapore Environment Council Until February 26, 2026
Everglo Kids Care 18 Singapore Environment Council Until February 26, 2026
Avian Cat Lapangan Waterbase 19 Singapore Environment Council Until March 19, 2026
No Drop Beton dan Batu Alam 20 Singapore Environment Council Until March 19, 2026
No Drop Kolam Ikan 21 Singapore Environment Council Until March 19, 2026
Supersilk Anti-Noda 22 Singapore Environment Council Until May 29, 2026
Lenkote Home Deco Metallic Paint Gold 23 Singapore Environment Council Until July 24, 2026
Sunguard All-In-One 24 Singapore Environment Council Until August 7, 2026
Avitex Anti Viruz 25 Singapore Environment Council Until August 19, 2026
Home Deco Glow In The Dark Interior Paint 26 Singapore Environment Council Until August 19, 2026
Home Deco Magnetic Interior Paint 27 Singapore Environment Council Until August 19, 2026
Supersilk Basic 28 Singapore Environment Council Until September 2, 2026
Home Deco Glitz 29 Singapore Environment Council Until November 9, 2026
Wood Eco Woodstain Water Based 30 Singapore Environment Council Until November 9, 2026
Avitex Eksterior 31 Singapore Environment Council Until November 9, 2026
Boyo Special Politur Vernis Water Based 32 Singapore Environment Council Until November 9, 2026
No Lumut Water-Based 33 Singapore Environment Council Until November 9, 2026
Avitex One Coat 34 Singapore Environment Council Until December 21, 2026
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PT Avia Avian Tbk • 2024 Sustainability Report
PT. Avia Avian
Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadung Asih,
Buduran, Sidoarjo 61252, Indonesia
AVITEX ALKALI RESISTING PRIMER
032-219-4089
Environmentally Preferred Paint
(In accordance to SEC Green Label Category 32: Paints and Surface Coatings)
Validity: 19 January 2023 to 18 January 2025
Validity: 19 January 2023 to 18 January 2025
(In accordance to SEC Green Label Category 32: Paints and Surface Coatings)
Environmentally Preferred Paint
032-219-4089
AVITEX ALKALI RESISTING PRIMER
Buduran, Sidoarjo 61252, Indonesia
Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadung Asih,
PT. Avia Avian
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SUSTAINABILITY STRATEGY
Domestic Level (Tingkat Komponen Dalam Negeri or “TKDN”)
The TKDN certification is a recognition of products that utilize domestic components and raw materials, helping to empower
domestic industries and national economic independence. Avian Brands remains committed to obtaining this certification
as part of its sustainability strategy and contribution to domestic economic development. Among its flagship products
that have obtained TKDN certification is the Sunguard All-In-One, which prides itself on high quality with predominantly
domestic components. In total, by the end of 2024, 36 Avian Brands products have successfully obtained TKDN certification as
described below:
Product Organizer Validity Period
Aries Gold 1 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Avian Cat Aluminium 2 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Avian Cat kayu dan Besi 3 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Avitex Alkali Resisting Primer 4 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Avitex Anti Viruz 5 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Avitex Cat Genteng & Seng 6 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Avitex Eksterior 7 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Avitex Plamir Tembok 8 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Avitex 9 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Boyo Politur Vernis Solvent Based 10 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Lenkote Wall Sealer 11 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
No Drop Anti Panas 12 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
No Drop 13 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
No Odor Medicare 14 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Supersilk Anti Noda 15 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Suzuka Cat Duco Otomotif 16 Kementerian Perindustrian Republik Indonesia Until September 15, 2026
Avian Paving Paint 17 Kementerian Perindustrian Republik Indonesia Until October 19, 2026
Avian Roadline Paint 18 Kementerian Perindustrian Republik Indonesia Until October 19, 2026
Avitex Gold 19 Kementerian Perindustrian Republik Indonesia Until October 19, 2026
Sunguard All-In-One 20 Kementerian Perindustrian Republik Indonesia Until October 19, 2026
Sunguard 21 Kementerian Perindustrian Republik Indonesia Until October 19, 2026
Supersilk 22 Kementerian Perindustrian Republik Indonesia Until October 19, 2026
Cat Besi Anti Karat Avian 3 in 1 23 Kementerian Perindustrian Republik Indonesia Until July 12, 2027
GM 420 Perekat Keramik Ekonomis 24 Kementerian Perindustrian Republik Indonesia Until September 4, 2027
GM 510 Tile Grout 25 Kementerian Perindustrian Republik Indonesia Until September 4, 2027
No Drop Mortar Anti Bocor 26 Kementerian Perindustrian Republik Indonesia Until September 4, 2027
Avia Thinner Lacquer A Special 27 Kementerian Perindustrian Republik Indonesia Until September 4, 2027
Avian Thinner B Asli 28 Kementerian Perindustrian Republik Indonesia Until September 4, 2027
Pro-X 207 29 Kementerian Perindustrian Republik Indonesia Until September 5, 2027
GM 270 Acian Putih 30 Kementerian Perindustrian Republik Indonesia Until September 5, 2027
GM 380 Perekat Bata Ringan 31 Kementerian Perindustrian Republik Indonesia Until September 5, 2027
Avian Cling Water Based 32 Kementerian Perindustrian Republik Indonesia Until November 18, 2027
Avitex Wizz 33 Kementerian Perindustrian Republik Indonesia Until November 18, 2027
Avian Cling Synthetic 34 Kementerian Perindustrian Republik Indonesia Until November 18, 2027
Avian Cling Zinc Chromate 35 Kementerian Perindustrian Republik Indonesia Until November 18, 2027
Avian Zinc Chromate 36 Kementerian Perindustrian Republik Indonesia Until November 18, 2027
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SUSTAINABILITY STRATEGY Other Certifications In addition to obtaining ISO, SNI, GLS, and TKDN certifications, Avian Brands has also obtained the Green Industry Certificate from the Green Industry Certification Institute of the Center for Standardization and Services of Chemical, Pharmaceutical, and Packaging Industry, Ministry of Industry of the Republic of Indonesia. This is given in recognition of Avian Brands’ efforts in implementing sustainability principles in industrial processes, from energy efficiency to resource management and the reduction of environmental impacts. This Green Industry Certificate is valid until September 7, 2026, confirming Avian Brands’ commitment to continuously innovate and improve environmental performance in all operational activities, in line with the objective to support the development of environmentally friendly industries in Indonesia. 56
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Membership in Associations [GRI 2-28] [POJK C.5]
In an effort to expand its network and stay informed of the latest developments in the business environment,
Avian Brands actively joins various associations relevant to its business activities and status as a public company.
Membership in these associations allows Avian Brands to participate in important industry conversations, gain valuable
insights, and adapt to changing regulations and market trends. This involvement not only supports the development of
Avian Brands’ business strategies, but also reinforces its commitment to responsive and sustainable business practices.
Information regarding Avian Brands’ membership in associations is described below:
Indonesian Paint Producers Association
Scale : National
Status of Avian Brands: Member
Indonesian Public Listed Companies Association
Scale : National
Status of Avian Brands : Member
Indonesian Synthetic Resin Association
Scale : National
Status of Avian Brands : Member
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Determination
of Contents
and Materials
of Report
“Determination of contents and materials
of Avian Brands’ Sustainability Report is
carried out through identification processes
involving internal and external stakeholders.
Through such involvement, we collect inputs
from various parties related to Avian Brands’
operations, taking into account key issues
relevant to the paint industry sector, such
as the economic, environmental, social and
governance impacts. These material topics
are then prioritized based on their relevance
and significance to the sustainability
of Avian Brands, allowing us to present
transparent and accurate information while
supporting the achievement of Avian Brands’
sustainability goals.”
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DETERMINATION OF CONTENTS AND MATERIALS OF REPORT
Stakeholder Engagement
[GRI 2-29] [POJK E.4] [SASB RT-CH-210a.1.]
For us, stakeholders mean entities or individuals affected by the activities, products and services of Avian Brands. On the other
hand, they also play a critical role in influencing the successful implementation of Avian Brands’ strategies and achievement of
its objectives. Therefore, stakeholder engagement is an essential step to understand and address the needs of each group in
an appropriate and responsible manner, consistent with applicable regulations. We do this by maximizing our resources, while
ensuring that every action of Avian Brands supports the long-term interests of our stakeholders as well as the operational
viability of Avian Brands. In the process, Avian Brands constantly pays attention to compliance with corporate social
responsibility, concern for environmental issues, and taking into account the priority scale in building communication with
various strategic partners.
Avian Brands identifies internal and external stakeholder groups. Internal stakeholders consist of Shareholders and Investors,
as well as employees. On the other hand, external stakeholders include suppliers, communities, governments, store customers,
and product users. Certain other stakeholder groups that are not significant, such as distributors and mass media, are not
included in this report, as they are not relevant to the Avian Brands’ business.
Internal Stakeholders
Shareholders and Investors 1
Significant Topics and Stakeholders’ Needs
• Business development;
• Financial and operational performance; and
• Dividend payment.
Method of Engagement and Frequency of Implementation
• Convention of General Meeting of Shareholders annually or as needed.
• Submission of Annual Report and Sustainability Report on a yearly basis; and
• Provision of facilities for information access.
Response to Stakeholders’ Needs
• Strategizing to improve economic performance and business sustainability;
• Adjusting the implementation of sustainability principles in Avian Brands;
• Stipulating policy on dividend payment; and
• Providing the latest information about Avian Brands on various media, such as Avian Brands and stock exchange
websites.
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Employees 2
Significant Topics and Stakeholders’ Needs
• Fair and responsible management of labor practices;
• Occupational health and safety (“OHS”);
• Business continuity; and
• Competence and career development.
Method of Engagement and Frequency of Implementation
• Provision of employee complaint facilities;
• Convention of meetings between management and employee representatives
through the Bipatrit Cooperation Agency as needed; and
• Implementation of complaints surveys as needed.
Response to Stakeholders’ Needs
• Preparing and complying with employment contracts and company regulations related to labor management;
• Providing adequate OHS facilities and/or infrastructures in all operational areas; and
• Organizing education and training activities as well as promotions.
External Stakeholders
Supplier 1
Significant Topics and Stakeholders’ Needs
• Fair and transparent procurement practices;
• Compliance with employment contracts;
• Productive and mutual business relationships; and
• Environmentally friendly supply chain strategies.
Method of Engagement and Frequency of Implementation
• Convention of meetings with suppliers as required;
• Periodic audits and assessments of vendors; and
• Provision of complaint facilities for suppliers.
Response to Stakeholders’ Needs
• Preparing employment contracts that are favorable to both parties;
• Procuring goods and services in accordance with GCG principles;
• Complying with the obligations as stipulated in the employment contracts; and
• Ensuring vendors have implemented business practices that consider environmental impacts.
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DETERMINATION OF CONTENTS AND MATERIALS OF REPORT
General Public 2
Significant Topics and Stakeholders’ Needs
• Health and safety operations;
• Avian Brands’ participation in helping to improve the welfare of the community;
and
• Community development program.
Method of Engagement and Frequency of Implementation
Provision of communication and complaint facilities for the surrounding community.
Response to Stakeholders’ Needs
• Creating employment opportunities for local communities; and
• Implementing CSR programs for the community through Avian Brands Peduli.
Government 3
Significant Topics and Stakeholders’ Needs
• Compliance with relevant applicable regulations;
• 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
• Submission of Annual Reports, Sustainability Reports, and other reports on a
quarterly and annual basis;
• Payment and reporting of taxes and PNBP on a monthly or annual basis; and
• Provision of violation reporting through a whistleblowing system.
Response to Stakeholders’ Needs
• Ensuring compliance with all regulations applicable to Avian Brands;
• Paying tax and PNBP obligations;
• Conducting certifications and assessments by external parties; and
• Disclosing incidents of violations that occur within Avian Brands.
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Store Customer 4
Significant Topics and Stakeholders’ Needs
• Product and service information;
• Marketing communications;
• Quality of products and services;
• Product labeling;
• Customer opinions and needs; and
• Improvement of customer satisfaction.
Method of Engagement and Frequency of Implementation
• Implementation of customer satisfaction surveys as required; and
• Provision of complaint facilities for customers.
Response to Stakeholders’ Needs
• Updating product and service information;
• Registering Avian Brands’ products with certification bodies; and
• Maintaining product and service quality, including customer health and safety aspects.
Product-Using Customers 5
Significant Topics and Stakeholders’ Needs
• Product and service information;
• Marketing communications;
• Quality of products and services;
• Product labeling;
• Customer opinions and needs; and
• Improvement of customer satisfaction.
Method of Engagement and Frequency of Implementation
• Implementation of customer satisfaction surveys as required; and
• Provision of complaint facilities for customers.
Response to Stakeholders’ Needs
• Updating product and service information;
• Registering Avian Brands’ products with certification bodies; and
• Maintaining product and service quality, including customer health and safety aspects.
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DETERMINATION OF CONTENTS AND MATERIALS OF REPORT
Material Topics of Sustainability Report
We prepared the Sustainability Report as a means of communication to stakeholders, which contains Avian Brands’
sustainability performance in 4 main pillars, namely Product Quality and Environment; Social, Labor, and Human Rights; Ethics
and Governance; and Sustainable Procurement. Publication of this report reflects our commitment to accountability and
transparency by presenting a comprehensive picture of the impact of Avian Brands’ operations on economic, environmental
and social conditions in the surrounding areas. More than just a reporting instrument, this Sustainability Report also serves
as concrete evidence of Avian Brands’ contribution to achieving the SDGs. Thus, this report is a testament to our active role in
integrating sustainability into every aspect of Avian Brands’ business operations and strategies.
In preparing this Sustainability Report, we refer to the reporting principles outlined in GRI 1: 2021 Baseline. This approach
ensures that Avian Brands’ Sustainability Report is prepared based on credible and accountable international standards,
ensuring that the information presented is relevant, accurate and comprehensive. These principles help us to identify and
highlight the most significant material topics, ensuring that any issues that matter to our stakeholders and Avian Brands are
addressed proportionally. The reporting principles outlined in GRI 1: 2021 baseline are further described as follows:
Accuracy 1
We report accurate and sufficiently detailed information to enable a comprehensive and relevant
assessment of Avian Brands’ impacts and contributions.
Balance 2
We report information in a neutral manner and provide a balanced picture of Avian Brands’ impacts and
contributions.
Clarity 3
We present information in a way that is accessible and understandable.
Comparability 4
We select, compile, and report information consistently to enable stakeholders to analyze changes and
progress made in managing Avian Brands’ impacts and contributions over time and to analyze these
impacts in relation to the impacts of other organizations.
Completeness 5
We provide sufficient information to assess Avian Brands’ impacts and contributions during the reporting
period.
Sustainability Context 6
We report information on Avian Brands’ contributions in the broader context of sustainable development.
Timeliness 7
We report information regularly and make it available in a timely manner for stakeholders to make informed
decisions.
Verifiability 8
We collect, record, compile, and analyze information so that the information presented can be scrutinized
to determine its quality.
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Identification and Determination of Priority Topics [GRI 3-1]
In the previous period, we have implemented a process of identifying and prioritizing topics to be discussed in the Sustainability
Report through the active involvement of both internal and external stakeholders of Avian Brands. Each stakeholder group
has shared their views and input on sustainability topics that they deem important and prioritized. The process we have
implemented in identifying and determining material topics for the Sustainability Report is described as follows:
Understanding the Organizational Context of the Avian Brands 1
Analyzing business activities and relationships, the sustainability context in which these occur, and
an overview of stakeholders.
Identifying Impacts that Affect the Business 2
Identify the impacts that affect the viability of the Avian Brands in terms of economic, social and governance.
Determining Material Topic Limitations 3
Requesting approval from the Management to determine the limitations of material topics that will be
the main focus of the sustainability report.
Distributing Material Topic Questionnaires 4
Drafting and distributing questionnaire forms to collect input on material topics that are relevant
to stakeholders.
Accumulating the Results of the Material Topics Questionnaire 5
Collecting and summarizing the results of the distributed questionnaires to identify the topics deemed
most material by the stakeholders.
Requesting Approval from the Management Board 6
Presenting the results of analysis and recommendations related to the material topics, to the management
board for approval. This approval aims to ensure that the identified topics are relevant and in line with
the company’s business priorities.
Determining Material Topics of Sustainability Report 7
Disclosing the Sustainability Report based on agreed material topics.
We have engaged the perspectives of relevant stakeholders and experts in the process of determining priorities of material
topics. Through this process, we discovered significant issues relevant to the chemical manufacturing industry standards,
particularly for paint manufacturing. The feedback we received remains our primary reference in determining the material
topics to be addressed in the Sustainability Report, ensuring that any issues of importance to stakeholders remain well
accommodated and at the center of Avian Brands’ attention.
List of Material Topics [GRI 3-2]
We compiled the list of material topics for this Sustainability Report based on the results of identification, derived from the
stakeholder engagement conducted by Avian Brands in the previous period. We observe that the inputs from the previous
survey remain relevant as references in preparing this year’s Sustainability Report. Given the adequacy and validity of the
information collected, we have determined that the material topics of discussion in this Report have not changed compared
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DETERMINATION OF CONTENTS AND MATERIALS OF REPORT
to the previous period. In addition, these topics have also been selected based on their impacts on Avian Brands and its
stakeholders, and therefore are deemed relevant for the present time. Information regarding the material topics of Avian
Brands’ 2024 Sustainability Report is described as follows:
List of Material Topics and Explanations
Product Quality and Environment
Material Topic : Responsible Procurement of Raw Materials & Products
Sub-Topic
• Percentage of renewable materials; • Percentage of product packaging recovered and reprocessed by
• Percentage of recycled materials used; Avian Brands; and
• Sustainable products launched by Avian Brands.
GRI-Standard Disclosures Relation to SDGs
GRI 301
Material Topic : Environmental Protection
Sub-Topic
• Environmental and ecological protection; • Waste management and reduction; and
• Water management; • Material recycling.
• Energy management and reduction practices;
GRI-Standard Disclosures Relation to SDGs
GRI 302 GRI 303 GRI 306
Material Topic : Climate Change Actions
Sub-Topic
• Transition to clean and affordable energy • Monitoring and evaluation of GHG emissions; and
• GHG emission reduction target (Scope 1, 2, 3); • Carbon neutral and Net Zero Carbon commitments.
GRI-Standard Disclosures Relation to SDGs
GRI 305
Social, Labor, and Human Rights
Material Topic : Public Impact and Relations
Sub-Topic
• Community development programs or welfare activities (CSR); • Impact assessment; and
• Community engagement; • Total employees recruited from local communities.
GRI-Standard Disclosures Relation to SDGs
GRI 202 GRI 413
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PT Avia Avian Tbk • 2024 Sustainability Report
Material Topic : Talent/Skill Attraction and Retention
Sub-Topic
• Employee training and career development; • Employee retention.
• Employee benefits; and
GRI-Standard Disclosures Relation to SDGs
GRI 401 GRI 404
Material Topic : Occupational Health, Safety, and Security
Sub-Topic
• OHS management system; • Hazard identification;
• Prevention of occupational accidents or disasters; • Incident assessment and investigation; and
• Employee participation and training on OHS; • Promoting worker or employee health.
GRI-Standard Disclosures Relation to SDGs
GRI 403
Material Topic : Human Rights
Sub-Topic
• Diversity of employee composition; • No discrimination;
• Hiring people with disabilities; • Elimination of child and forced labor;
• Female proportion; • No sexual harassment; and
• Decent and equal wages; • Rights of local communities.
• Care and concern for employees;
GRI-Standard Disclosures Relation to SDGs
GRI 202 GRI 405 GRI 406 GRI 408
GRI 409
Material Topic : Labor Management/Relations
Sub-Topic
• Freedom of association; • Labor practice complaint mechanism; and
• Mutual negotiation; • Minimum notice of changes in the work environment.
GRI-Standard Disclosures Relation to SDGs
GRI 402 GRI 407
Material Topic : Customer Relationship Management
Sub-Topic
• Product quality and safety; • Marketing communications; and
• Customer opinions and needs; • Improvement of customer satisfaction.
• Product labelling;
GRI-Standard Disclosures Relation to SDGs
GRI 416 GRI 417
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Ethics and Governance
Material Topic : Corporate Governance and Operational Performance
Sub-Topic
• Corporate governance mechanisms; • Independence of the Board of Commissioners and the Board of
• Governance structure and composition; Directors;
• Composition and selection of the Board of Commissioners and the• Remuneration policy;
Board of Directors; • The role of the highest governance organ in sustainability; and
• Diversity of the Board of Commissioners and the Board of Directors;• External guarantees.
GRI-Standard Disclosures Relation to SDGs
GRI 2
Material Topic : Integrity Management and Compliance with Laws and Regulations
Sub-Topic
• Code of conduct; • Political contributions;
• Healthy business competition; • Compliance with laws and regulations (economic, environmental,
• Anti-Corruption; social); and
• Taxation governance; • Disclosure of violations.
GRI-Standard Disclosures Relation to SDGs
GRI 205 GRI 207 GRI 415
Material Topic : Information Safety Management
Sub-Topic
• Information security policies and systems; • Protection of data security of all company stakeholders.
• Information breach risk control and measures; and
GRI-Standard Disclosures Relation to SDGs
- -
Sustainable Procurement
Material Topic : Supply Chain Management
Sub-Topic
• Sustainable procurement and supply chain measures (policies, assessments, training, documentation, and reporting for suppliers); and
• Environmentally friendly supply chain strategies.
GRI-Standard Disclosures Relation to SDGs
GRI 308 GRI 414
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PT Avia Avian Tbk • 2024 Sustainability Report
Material Level
Furthermore, to determine the level of materiality of the Sustainability Report content, a mapping of material topics was
conducted based on a stakeholder survey. The mapping results show an overview of the materiality level of the Sustainability
Report content below:
Customer
Service Occupational
Management Health and
Safety
Integrity Management Environmental
and Compliance with Laws Protection
Information
Important for Stakeholders
and Regulations
Security
High
Management
Responsible
Procurement of Raw
Materials and Products Skill/Talent
Human Attraction and
Rights Retention Climate Change
Supply Chain Actions
Medium
Management
Community Impact and
Relations
Corporate
Governance and Labor
Operational Management/
Performance Relations
Low
Low Medium High
Important for the Company
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PT Avia Avian Tbk • 2024 Sustainability Report
Sustainability
Governance
“Sustainability governance serves not
only as a foundation for Avian Brands
in implementing responsible business
practices, but also a means to ensure that
all operational activities consistently
contribute to stakeholder interests in
economic, environmental, social, and
governance aspects. With this approach,
Avian Brands remains committed to
delivering sustainable added value to all
stakeholders in line with its sustainability
commitment, which serves as a key pillar in
the business strategies of Avian Brands.”
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Avian Brands Achievements [GRI 3-3]
Avian Brands has a sustainability governance policy in place.
Avian Brands has conducted Risk & Opportunity Assessments, based on ISO 9001, ISO 14001, ISO 50001,
and ISO 45001.
The proportion of female representation on the Board of Directors has reached 20.00% since 2022.
During the reporting year, Avian Brands was not subject to any fines or significant legal actions,
both from authorized institutions as well as from the Financial Services Authority and the Indonesia
Stock Exchange.
Commitment to Sustainability Governance
Commitment to sustainability governance is a key pillar that underpins Avian Brands’ business continuity in order to ensure
that every step is taken in accordance with sustainability principles. This sustainability governance is the basis for Avian
Brands’ management processes and mechanisms, which are based on laws and regulations as well as business ethics.
Moreover, sustainability governance also emphasizes concern for all stakeholders as a key priority. Therefore, every policy and
business decision always weigh their impact on the communities, the environment, and other stakeholders.
Through consistent implementation of sustainability governance, we strengthen Avian Brands’ operational foundation
and ensure that all stakeholders receive optimal benefits from our business activities. This commitment also encompasses
proactive efforts in identifying, mitigating, and minimizing risks with potential adverse impacts, both on the business and the
environment. Thus, sustainability governance is more than just a duty but is also a long-term strategy that brings together legal
compliance with social responsibility. Therefore, Avian Brands can continue to grow sustainably while maintaining trust and
reputation in the eyes of stakeholders. Avian Brands implements sustainability governance in accordance with applicable laws
and regulations as well as the 7 core subjects set out in the ISO 26000 on Social Responsibility, as described below:
Community
Fulfillment of
Engagement and
7
Human Rights
Development
7 Core Subjects
Environmental ISO 26000 Product and
Matters Customer Issues
Governance Fair Operational
Organization Procedures
Employment and Health and
Safety Practices
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PT Avia Avian Tbk • 2024 Sustainability Report
Structure of Sustainability Governance [GRI 2-11, 2-13]
Avian Brands remains committed to establishing a sustainability organization, comprising a dedicated Department tasked
with bringing sustainability to the core of its operational program strategies, in order to generate sustainable positive impacts
for the community, the environment, the Shareholders, and other stakeholders. Such a department is the Quality Assurance
& Sustainability Department (“QAS”), which is under the direct leadership of the Board of Directors. The Board of Directors is
responsible for ensuring the implementation of Avian Brands’ sustainability Vision and Mission, while also providing strategic
direction on sustainability initiatives. This includes engaging relevant internal stakeholders and ensuring that sustainability
aspects, including ESG management, are effectively carried out and thoroughly considered in every decision and strategy
undertaken by Avian Brands.
The implementation of sustainability initiatives is then delegated to the relevant Departments, ensuring alignment with
the established plans. To ensure effectiveness, regular monitoring and evaluation are conducted through periodic meetings
and structured reports. The QAS Department also plays a role in assessing and managing risks and opportunities related to
decarbonization strategies, risk mitigation, climate change, and ESG rating improvements, to help Avian Brands navigate
global challenges and create sustainable positive impacts.
As part of efforts to strengthen sustainability governance, the QAS Department facilitates cross-functional coordination and
ensures that sustainability principles are integrated into all aspects of Avian Brands’ operations. This includes formulating
climate change mitigation and adaptation strategies, upholding human rights, and raising awareness of the importance of
sustainability among employees and business partners. Through this approach, Avian Brands demonstrates its commitment
to not only fulfilling environmental and social responsibilities, but also to creating added values in line with the Sustainable
Development Goals. Thus, the QAS Department serves as a key pillar in ensuring that Avian Brands continues to grow
sustainably while making tangible contributions to the community, the environment, and all stakeholders.
The diagram below outlines the sustainability governance structure of Avian Brands:
Boards of Director
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
Reporting Line Coordination
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The Role of the Highest Governance Organ in Overseeing Impact Management [GRI 2-9, 2-12] [CDSB REQ-01]
GMS demonstrates its commitment to supporting sustainability programs by approving, supervising, and evaluating
Avian Brands strategies and targets, aligned with Sustainable Development Goals, Avian Brands’ Vision and Mission, and
materiality topics.
Governance Organ Description
The GMS is a governance organ that has the power not granted to the Board of Directors nor the Board
of Commissioners within the limits stipulated by the Limited Liability Company Law and/or the Articles
GMS
of Association, as well as a medium for Shareholders to make important decisions related to long-term
business continuity.
The Board of Commissioners has the duties and responsibilities of supervising and advising the Board
The Board of of Directors in managing Avian Brands’ strategy, including implementing GCG principles. The Board of
Commissioners Commissioners is assisted by the Audit Committee, the Nomination and Remuneration Committee, and
the Good Corporate Governance Committee.
The Board of Directors has the duties and responsibilities of managing Avian Brands’ business operations,
including managing economic, environmental, social, and governance risks with representative and
The Board of Directors managerial authority. The implementation of the duties of the Board of Directors is supported by
the Corporate Secretary, the Internal Audit Unit, the Related Party Transaction Committee, as well as
management in the Work Units performing direct operational activities. [GRI 2-11]
The Audit Committee has the duties and responsibilities to assist the Board of Commissioners in performing
supervisory functions, including monitoring and evaluating the implementation of the internal control
The Audit Committee system, assessing the implementation of activities and audit results carried out by internal and external
auditors, reviewing financial information to be issued by Avian Brands, and monitoring compliance with
applicable laws and regulations.
The Nomination and Remuneration Committee has the duties and responsibilities to assist the Board
of Commissioners in supervising the implementation of the nomination and remuneration process to
The Nomination and
ensure that it is objective, effective, and efficient, as well as to improve the quality, competence, and
Remuneration Committee
responsibility of the Board of Commissioners and the Board of Directors in achieving Vision and Mission of
Avian Brands.
The Good Corporate Governance Committee has the duties and responsibilities to socialize Business Ethics
The Good Corporate
and Code of Conduct and receive and follow up reports of any complaints of violations of Business Ethics
Governance Committee
and Code of Conduct committed by Avian Brands personnel.
The Corporate Secretary has the duties and responsibilities as the liaising party between Avian Brands and
The Corporate Secretary the stakeholders, especially Shareholders, capital market authorities, and the public, as well as ensuring
Avian Brands compliance with laws and regulations, especially in the capital market sector.
The Internal Audit Unit has the duties and responsibilities to conduct assurance activities and provide
professional, independent, and objective opinions to the Board of Directors on Avian Brands’ business
The Internal Audit Unit activities. In addition, the Internal Audit Unit is expected to assist Avian Brands in increasing value and
improving operations, through a systematic approach by evaluating and improving the effectiveness of
risk management, internal control, and GCG processes in Avian Brands.
The Related Party Transaction Committee has the duties and responsibilities to support the implementation
of the duties of the Board of Directors, particularly in terms of managing Avian Brands’ transactions
The Related Party with affiliated parties through the provision of input and advice concerning related party transactions
Transaction Committee conducted by Avian Brands and its business groups, so that such related party transactions are conducted
in accordance with generally accepted business practices, applicable laws and regulations, and comply
with fair transaction principles.
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PT Avia Avian Tbk • 2024 Sustainability Report
Information related to the Board of
Commissioners and the Board of Directors
Composition of The Board of Commissioners as of December 31, 2024 [GRI 2-9]
Educational Background
Name Position Gender Term of Office
and Skills
Hermanto Tanoko President Commissioner Male Management
Mohammad Noor 2021 - 2026
Independent Commissioner Male Economy
Rachman Soejoeti
Composition of the Board of Directors as of December 31, 2024 [GRI 2-9]
Educational Background
Name Position Gender Term of Office
and Skills
Wijono Tanoko President Director Male Sales and Marketing
Ruslan Tanoko Vice President Director Male Chemical Engineering
2021 – 2026
Robert Christian Tanoko Director Male Business and Trading
Kurnia Hadi Sinanto Director Male Accounting
Angelica Tanisia Jozar Director Female 2022 – 2026 Engineering
Separation of Roles and Responsibilities of
the Board of Commissioners and the Board of Directors
Avian Brands has established Governance Guidelines for Public Companies, that regulate the separation of roles, duties,
and responsibilities between the Board of Commissioners and the Board of Directors. More detailed information on the
duties and responsibilities of the Board of Commissioners is stipulated under the Board of Commissioners Charter, while
the separation of duties and responsibilities among the Board of Commissioners is stipulated based on the Minutes of the
Board of Commissioners Meeting No. 006/AA/BAR/KOM/IX/2023 dated September 19, 2023. Both guidelines, in general,
regulate the duties of the Board of Commissioners in supervising and providing strategic directions to the Board of Directors.
Likewise, the duties and responsibilities of the Board of Directors are stipulated under the Board of Directors Charter, while
the separation of responsibilities of the Board of Directors is stipulated under the Circular Resolution of the Board of Directors
No. 013/AA/SK/DIR/IX/2023 dated September 20, 2023. Both guidelines, in general, regulate matters relating to the operational
management of Avian Brands.
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Furthermore, Avian Brands has also established policy on the Board of Commissioners Reserved Matters, that require Board of
Commissioners’ approval before implementation by the Board of Directors, such as:
1. To sell, encumber, or otherwise dispose of the rights to the immovable property of Avian Brands;
2. To bind Avian Brands as guarantor;
3. To establish a new business or to participate;
4. To transfer investments in other companies, both domestic or foreign;
5. To receive a monetary loan from any party;
6. To grant monetary loan to any party, except in the ordinary course of business and loans to employees and Subsidiaries of
Avian Brands; and
7. To open branches or representative offices, both inside and outside the territory of the Republic of Indonesia.
Information related to the implementation of duties, authorities, and responsibilities of the Board of Directors and the Board
of Commissioners, is further provided in the 2024 Annual Report of PT Avia Avian Tbk, which is prepared independently from
this Sustainability Report.
Diversity of the Board of Commissioners and the Board of Directors in 2024 [GRI 3-3, 405-1]
Age Male Female Total
Diversity of the Board of Commissioners
>50 Years Old 2 - 2
30 –50 Years Old - - -
<30 Years Old - - -
Total Members of the Board of Commissioners 2 - 2
Ratio of Members of the Board of Commissioners (%) 100.00 - 100.00
Diversity of the Board of Directors
>50 Years Old 2 - 2
30 – 50 Years Old 2 1 3
<30 Years Old - - -
Total Members of the Board of Directors 4 1 5
Ratio of Members of the Board of Directors (%) 80.00 20.00 100.00
Avian Brands gradually ensures that the composition of the Board of Commissioners and the Board of Directors reflects gender
balance, with no one gender dominating the other. As part of this initiative, Avian Brands has included female representation
in its upper management through the appointment of Mrs. Angelica Tanisia Jozar as Director. With this appointment, the
proportion of female representation on the Board of Directors has reached 20.00% since 2022. Avian Brands considers gender
diversity as a strategic step that provides various fresh perspectives, that contribute to improving decision-making quality at
the upper management level.
The proportion of Senior Management Coming from Local Communities [GRI 202-2]
Avian Brands is committed to involving workers from the local communities in its organizational structure. As such, by the end
of the reporting period, 100.00% of the key positions in Avian Brands are held by Indonesian nationals, with some positions
held by employees coming from the operating areas of each business unit. This reflects Avian Brands’ efforts to empower local
human resources and strengthen relationships with surrounding communities.
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PT Avia Avian Tbk • 2024 Sustainability Report
Nomination and Remuneration of the Board of Commissioners and
the Board of Directors [GRI 2-10, 2-19, 2-20]
Nomination of the Board of Commissioners and the Board of Directors
Avian Brands has in place, the Succession Policy in the Nomination Process for Members of the Board of Commissioners and
the Board of Directors of PT Avia Avian Tbk, stipulated on December 27, 2021. This policy is designed to ensure the selection
of suitable, competent candidates who are well suited to the long-term strategy of Avian Brands. The nomination process for
the Board of Commissioners and the Board of Directors begins with identifying needs based on competence and expertise
analysis, and followed by in-depth evaluation of the qualifications, experience and track record of potential candidates.
The Nomination and Remuneration Committee is instrumental in overseeing and recommending the most qualified candidates
to the Board of Commissioners, taking into account their integrity, leadership and competence. Each stage of nomination
upholds transparency, accountability, independence and objectivity, ensuring selected candidates’ suitability with the Vision
and Mission of Avian Brands, as well as commitment to promoting long-term growth and sustainability.
The nomination process for the Board of Commissioners and the Board of Directors also consistently emphasizes the fulfillment
of criteria and requirements set forth in the Board of Commissioners Charter and the Board of Directors Charter. The specific
criteria that have been established include:
1. Be of good character, morals, and integrity;
2. Capable of performing legal acts and committed to complying with laws and regulations;
3. Within 5 years prior to appointment and during his/her term of office:
A. Has never been declared insolvent;
B. Has never been a member of the Board of Directors and/or a member of the Board of Commissioners who was found
guilty of causing a company to be declared insolvent;
C. Has never been convicted of a criminal act that causes harm to state finances and/or related to the financial sector; and
D. Has never been a member of the Board of Directors and/or a member of the Board of Commissioners that, during its
term of office:
1) has previously failed to convene an Annual General Meeting of Shareholders;
2) has had a previous report of responsibility as a member of the Board of Directors and/or member of
the Board of Commissioners refused by the GMS, oror has failed to submit a report of responsibility as a member of
the Board of Commissioners to the GMS; and
3) has caused a company that holds a license, approval, or registration from the Financial Services Authority to fail to
fulfill its obligation to provide Annual Reports and/or Financial Statements to the Financial Services Authority;
4. Possess knowledge and/or expertise in the areas required by Avian Brands; and
5. Has not been found guilty by a court decision.
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Remuneration of the Board of Commissioners 5. Complying with the Articles of Association of the Avian
and the Board of Directors Brands as well as the applicable laws and regulations,
Meanwhile, the procedure and basis for determining and obligation to carry out their duties based on the
remuneration for the Board of Commissioners and principles of professionalism, efficiency, transparency,
Directors of Avian Brands, is based on the GMS resolution independence, accountability, responsibility, and
in which the authority may be delegated to the Board fairness, including conducting Board of Commissioners
of Commissioners who takes into consideration the Meetings in accordance with applicable regulations;
opinions and recommendations of the Nomination and 6. Evaluating performance during the financial year,
Remuneration Committee. The structure and amount of assessed based on the effectiveness of supervision and
remuneration for the Board of Commissioners and Board contribution to achieving Avian Brands’ strategic targets;
of Directors of Avian Brands are carefully regulated to 7. Measuring the Board of Commissioners’ competence
ensure fairness, transparency, and consistency with each in carrying out its duties and responsibilities, including
member’s performance and responsibilities. Determination knowledge and expertise relevant to the Avian Brands’
of remuneration amount also takes into account various industry; and
factors, such as industry standards in line with Avian Brands’ 8. Measuring level of attendance at Board of Commissioners
business scale and activities, duties and responsibilities meetings, both internal meetings and joint meetings
related to performance achievement, performance targets with the Board of Directors.
of each member, as well as the balance between fixed and
variable allowances. Likewise, performance assessment of the Board of Directors
is conducted with a similar approach under the same
Disclosure of more detailed information concerning policy, under which assessment is conducted collegially
nomination and remuneration, including the amount of by the Board of Commissioners as well as the Board of
remuneration, for members of the Board of Commissioners Directors itself. The assessment’s main objective is to
and Board of Directors is presented in the 2024 Annual Report evaluate the effectiveness of leadership and cooperation
of PT Avia Avian Tbk, which is prepared independently from among members of the Board of Directors in the overall
this Sustainability Report. management of Avian Brands. Aspects of the assessment
include the following:
1. Leading, managing and controlling the company in
Assessment of the Performance of accordance with the objectives of Avian Brands;
the Board of Commissioners and 2. Taking measures to improve the efficiency and
the Board of Directors effectiveness of Avian Brands;
3. Controlling, maintaining and managing assets of Avian
Policy concerning the performance assessment of Brands;
the Board of Commissioners of Avian Brands, is based 4. Preparing annual work plan which contains Avian
on the Performance Assessment Policy of the Board Brands’ annual budget and submitting it to the Board of
of Commissioners and the Board of Directors of Commissioners for approval before the start of the next
PT Avia Avian Tbk, adopted on December 27, 2021, as financial year;
well as other relevant regulations. The policy stipulates 5. Carrying out duties and responsibilities in accordance
that assessment is conducted collegially by members with the provisions of the Articles of Association of
of the Board of Commissioners, and not individually. Avian Brands and the GMS resolutions;
This assessment is designed to measure the effectiveness 6. Complying with the Articles of Association of Avian
and cooperation of the Board of Commissioners in carrying Brands as well as the applicable laws and regulations,
out its supervisory duties over the management of Avian and obligation to carry out their duties based on the
Brands and in providing strategic advice to the Board of principles of professionalism, efficiency, transparency,
Directors. The assessment process is periodically conducted independence, accountability, responsibility, and
every year, taking into account the achievement of various fairness, including conducting Board of Directors
key aspects, such as: Meetings in accordance with applicable regulations;
1. Supervising the management of Avian Brands carried 7. Evaluating performance during the financial year,
out by the Board of Directors; assessed based on the achievement of Avian Brands’
2. Reviewing, examining and approving the annual work operational and financial targets;
plan of Avian Brands; 8. Measuring the Board of Directors’ competence in
3. Carrying out specific tasks assigned to the Board of carrying out its duties and responsibilities, including
Commissioners in accordance with the Articles of knowledge and expertise relevant to Avian Brands’
Association of the Avian Brands, the applicable laws and industry; and
regulations, and/or the GMS resolutions; 9. Measuring level of attendance at Board of Directors
4. Carrying out duties and responsibilities in accordance meetings, both internal meetings and joint meetings
with the provisions of the Articles of Association of Avian with the Board of Commissioners.
Brands and the GMS resolutions;
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PT Avia Avian Tbk • 2024 Sustainability Report
Disclosure of more detailed information concerning the the latest developments in the economy, finance, related
assessment of performance of the Board of Commissioners industries, regulations and other matters related to Avian
and the Board of Directors is presented in the 2024 Annual Brands. Competence development programs include
Report of PT Avia Avian Tbk, which is prepared independently training and education, seminars, visits, benchmarking,
from this Sustainability Report. and brainstorming sessions. In doing so, Avian Brands
ensures that its Board of Commissioners and Board of
Directors possess up-to-date insights to inform strategic
Attendance of Board of Commissioners decision-making that supports sustainable growth and
and Board of Directors in Meetings good corporate governance.
Board of Commissioners Meeting Disclosure of more detailed information concerning the
The convening of Board of Commissioners meetings is competence development programs attended by the Board
based on the provisions stipulated in OJK Regulation of Commissioners and the Board of Directors, is presented
No. 33/2014 and the Articles of Association of Avian Brands, in the 2024 Annual Report of PT Avia Avian Tbk, which is
under which internal meetings shall be convened at least prepared independently from this Sustainability Report.
once every two months and joint meetings with the Board
of Directors shall be convened at least once every four
months. Throughout 2024, the Board of Commissioners has Manager of Social and Environmental
convened 6 internal meetings with an average attendance Sustainability Aspect [GRI 2-12, 2-13] [POJK E.1]
percentage of 100.00%, and 12 joint meetings with the
Board of Directors with an average attendance percentage The QAS department is key in ensuring that Avian Brands’
of 91.67%. operations not only meet standards of quality, but also
contribute to social and environmental sustainability.
Board of Directors Meeting With a holistic approach, the QAS Department integrates
The convening of Board of Directors meetings is based on sustainability aspects in every stage of the business process,
the provisions stipulated in OJK Regulation No. 33/2014 creating added value that positively impacts stakeholders.
and the Articles of Association of Avian Brands, under
which internal meetings shall be convened at least once To promote social sustainability, the QAS Department
every two months and joint meetings with the Board of focuses on conducting Corporate Social Responsibility
Commissioners shall be convened at least once every (“CSR”) programs designed to improve community
four months. Throughout 2024, the Board of Directors has welfare. Through the Avian Brands Peduli initiative,
convened 12 internal meetings with average attendance which focuses on education, environment, and disaster
percentage of 95.00%, and 12 joint meetings with response programs, Avian Brands aspires to build
the Board of Commissioners with average attendance harmonious relationships with surrounding communities
percentage of 91.67%. and generate significant social impact.
Disclosure of more detailed information concerning In the environmental aspect, the QAS Department leads
the attendance in meetings of the Board of Commissioners various innovative actions to reduce the ecological impact of
and the Board of Directors is presented in the 2024 Avian Brands’ operations. This includes the implementation
Annual Report of PT Avia Avian Tbk, which is prepared of environmentally friendly technologies, monitoring of
independently from this Sustainability Report. GHG emissions, waste management, and efficient use of
resources such as water and energy. These efforts aim to
reduce Avian Brands’ carbon footprint in a sustainable
Competence Development of manner.
the Board of Commissioners and
the Board of Directors Going forward, the QAS Department remains committed
to further strengthening Avian Brands’ sustainability
Avian Brands is committed to continuously improving the performance. Key focuses include formulating
competence of the Board of Commissioners and the Board decarbonization strategies to achieve carbon neutrality,
of Directors, through the competence development policy improving collaborations with local communities, and
stipulated in the Board of Commissioners Charter and greater transparency through accountable sustainability
the Board of Directors Charter. This policy requires each reporting. Through this commitment, Avian Brands hopes
member of the Board of Commissioners and the Board of to be a catalyst for positive changes within the industry and
Directors to upgrade their knowledge and skills regarding the environment.
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SUSTAINABILITY GOVERNANCE Governance of Climate Change Management [TCFD GOV.a, GOV.b] Climate change management is among the central focuses of Avian Brands’ sustainability strategy and is a direct responsibility of the Board of Directors. As part of this responsibility, the Board of Directors determines strategies, work programs, and budget allocations required to manage climate risks. Such management is measured through the Key Performance Indicators (“KPIs”), ensuring that all steps are consistent with risk management policy. The Board of Directors is also responsible for implementing strategies to mitigate the impacts of climate change on Avian Brands’ operations, while ensuring that each initiative is integrated into the larger risk management system. In supervising climate change management, the Board of Directors is assisted by the QAS Department together with the Environmental Management Committee. The latter is tasked with managing environmental impacts, including those related to climate change. The QAS department also monitors the ESG Roadmap, which includes Greenhouse Gas emissions, initiatives towards carbon neutrality, as well as the management of climate-related risks. Risk assessment includes risk identification based on the pillars of product quality, environment, OHS, and climate change. This process also involves the identification of risk types in accordance with the TCFD framework, categorized into two major types: physical risks (e.g., natural disasters, shifts in extreme weather patterns, and rising sea levels) and transition risks (those related to changes in policies, regulations, or technologies focused on reducing carbon emissions). Climate-related risks could impact various aspects of Avian Brands’ operations, including its supply chain, infrastructure, as well as reputation in the eyes of the public and stakeholders. Therefore, Avian Brands ensures that it is equipped with strategies to mitigate climate risks through adaptation to physical changes, as well as proactive measures related to the transition to a low-carbon economy. Overall, holistic management of climate risks involves collaboration between the Board of Directors, the Environmental Management Committee, and the QAS Department, to ensure that Avian Brands is prepared to face climate change impacts and able to capitalize on opportunities arising from the shift towards a more sustainable economy. 80
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Sustainability Risk and
Opportunity Management
[GRI 2-25] [POJK E.3] [CDSB REQ-03, REQ-06] [SASB RT-CH-530a.1.] [TCFD MET.a]
Avian Brands implements sustainability risk management as part of integrated efforts to ensure all aspects of its operations,
both social and environmental, are managed with a proactive and sustainable approach. Avian Brands adopts principles of
prevention as the main foundation in minimizing the impact of potential events that could harm or compromise business
continuity. In this regard, the implemented risk management approach includes a series of systematic processes, starting from
risk identification, risk level measurement, regular monitoring, to integrated risk control. This risk management framework is
not static, but continuously updated and adjusted to the latest business developments, allowing Avian Brands to adapt to
constantly changing market and regulatory dynamics.
At the initial stage, the development of sustainability risk management starts with building a foundational infrastructure that
includes comprehensive risk management policies, guidelines and procedures. This infrastructure functions as a guide that
must be followed by all risk owners at Avian Brands, with an emphasis on compliance with the risk tolerances established by the
Management. By having reliable risk management in place, Avian Brands is able to identify potential risks in advance, allowing
for swift and precise mitigation measures to be taken in order to minimize or even eliminate any negative impact. Beyond
protecting its assets and reputation, the implementation of effective risk management also plays an important role in creating
added value for Avian Brands. This allows Avian Brands to constantly improve operational performance, drive innovation, and
strengthen its support in achieving strategic targets, including sustainability aspects. As such, risk management is not merely
a means of protection, but also a major engine in realizing Avian Brands’ long-term sustainability vision as well as reinforcing
stakeholder trust and relationships.
Further information on the objectives of implementing sustainability risk management is described as follows:
To protect Avian Brands from significant levels of risks that may hinder the achievement of
1
Avian Brands’ targets.
To provide a consistent risk management framework for risks present in business processes
2
and functions within Avian Brands.
To encourage management to act proactively in reducing the risk of loss and to make risk
3
management a provenance of competitive advantage for Avian Brands.
To encourage prudent actions in the face of risk, as an effort to maximize Avian Brands value
4
in order to achieve stipulated targets.
To build an understanding of risk and the importance of risk management, such that it may
5
become a part of Avian Brands culture.
We consistently identify and manage various types of risks that could potentially influence the achievement of strategic
and operational objectives of Avian Brands. Each type of risk is carefully analyzed to understand its potential impact,
allowing Avian Brands to implement precise and effective mitigation efforts. Through this proactive approach, Avian Brands
is committed to minimizing any adverse impacts and optimizing each opportunity to ensure long-term business continuity.
Information on the types of risks faced by Avian Brands related to sustainability, as well as strategies for responding to them,
are described below.
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Risk Profile and Mitigation Measures of Avian Brands
Avian Brands has conducted a Risk & Opportunity Assessment guided by ISO 9001, ISO 14001, ISO 50001, and ISO 45001.
In 2024, Avian Brands conducted reviews of the risks identified in its environment. The risk management assessment process
is carried out through identifying potential risks, both internal and external to Avian Brands. We also elaborate on the
magnitude of the risk’s impacts, the frequency at which it is likely to occur, and the mitigation measures taken to anticipate the
impacts. Categories of assessed risk systems include quality management systems, Occupational Health and Safety (“OHS”),
environment, and energy. Avian Brands successfully identified 98 risks with various scales of potential impacts. In this report,
Avian Brands only presents 27 risks. The final results of the risk and opportunity assessment are categorized into 4 levels,
namely high, medium, low, and very low.
Level of Risk Impact
Level Status Definition
I Insignificant Risk that has no impact.
Risk that impacts system failure, damage to property (which affects energy), financial loss,
II Marginal non-compliance with requirements, and occupational illnesses and accidents, but that does not result
in complaints from concerned parties.
Risk that impacts system failure, damage to property (which affects energy), financial loss,
III Critical non-compliance with requirements, and occupational illnesses and accidents, resulting in complaints
from concerned parties.
Risk that impacts system failure, damage to property (which affects energy), financial loss, non-
IV Catastrophic compliance with requirements, and occupational illnesses and accidents, resulting in complaints
from, and compensation to, concerned parties.
Level of Opportunity Impact
Level Status Definition
I Minor No opportunity for improvement.
II Substantial Opportunity that may improve the Management System.
III Serious Opportunity that will improve the Management System.
IV Transformative Opportunity that is certain to improve the Management System.
Level of Risk Likelihood
Level Status Definition
5 Frequent Frequent occurrence (occurs 4 times a year).
4 Probable High probability of occurrence (occurs 3 times a year).
3 Occasional Occasional occurrence (occurs 2 times a year).
2 Remote Low probability of occurrence (occurs once a year).
1 Improbable No occurrence (never occurs in a year).
Level of Opportunity Likelihood
Level Status Definition
5 Almost Certain >75% chance of success in 6 – 12 months.
4 Likely 51 – 75% chance of success in 6 – 12 months.
3 Possible 26 – 50% chance of success in 6 – 12 months.
2 Unlikely 0 – 25% chance of success in 6 – 12 months.
1 Very Unlikely No chance of improvement.
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Level of Risk Impact
Risk Likelihood I II III IV
Insignificant Marginal Critical Catastrophic
5 Frequent Undesirable/Medium Intolerable/High Intolerable/High Intolerable/High
4 Probable Tolerable/Low Undesirable/Medium Intolerable/High Intolerable/High
3 Occasional Tolerable/Low Undesirable/Medium Undesirable/Medium Intolerable/High
2 Remote Negligible/Very Low Tolerable/Low Undesirable/Medium Undesirable/Medium
1 Improbable Negligible/Very Low Negligible/Very Low Tolerable/Low Tolerable/Low
Risk Level Risk Mitigation Measures
Top priority to be pursued immediately, due to the significant impacts of the resulting risks to Avian Brands.
Intolerable/High
Immediate approval of the budget and mitigation plan is required.
Second priority after the intolerable risk has been addressed, further corrective actions need to be taken to
Undesirable/Medium
address the risk.
Tolerable/Low Actions should be taken if there are resources available or if the risk level is likely to escalate.
Negligible/Very Low To be noted, action is not a priority.
Level of Opportunity Impact
Opportunity
Likelihood I II III IV
Insignificant Marginal Critical Catastrophic
5 Almost Certain Pursue Pursue Pursue Prepare
4 Likely Pursue Pursue Prepare Periodically Review
3 Possible Pursue Prepare Prepare Periodically Review
2 Unlikely Prepare Prepare Periodically Review No Action
1 Very Unlikely Periodically Review Periodically Review No Action No Action
Opportunity Level Opportunity Mitigation Efforts
Pursue Pursue such opportunities for change, to improve existing activity processes.
Prepare Prepare for possible changes to capture such an opportunity.
Periodically Review Conduct regular monitoring to measure the level of opportunity.
No Action No further action is required for managing such an opportunity.
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Risk and
Likelihood
Opportunity
Impact
External / Management
R/O
Risk / Opportunity Evaluation
Internal Issues System
(Impact*
Likelihood)
External Issues
• Quality
• OHS
• Environment Rules or regulations that are not socialized / with
Legal R 3 2 Undesirable
• Energy inadequate socialization system to Avian Brands.
• Social
• Governance
High costs of machinery and equipment with
• Environment
environmentally friendly technology and low R 2 3 Undesirable
• Energy
energy use.
Technological
• Quality Refurbishment and procurement of more productive
O 3 3 Pursue
• Energy and efficient manufacturing machinery/facilities.
Potential cyberattacks, data theft, and system
Information System Quality R 2 2 Tolerable
hacking.
• Quality More competitors compete to produce
Competitive • Environment environmentally friendly products at affordable R 3 3 Undesirable
• Energy prices that are attractive to customers.
• Quality Environmentally friendly products with high
Market • Environment production costs are incompatible with the low R 3 3 Undesirable
• Energy purchasing power of the people.
Customer Health and Products that are unsafe or contain hazardous
Governance R 3 2 Undesirable
Safety materials.
• OHS Low awareness of contractors or vendors regarding
Cultural • Environment occupational health and safety, environment, and R 2 3 Undesirable
• Energy energy consumption.
Workforce reduction, particularly local labors from
• Social
Social the surrounding area of Avian Brands, causing social R 2 2 Tolerable
• Governance
problems for Avian Brands.
Human Right and Provide equal rights and opportunities for promotion
Governance O 3 4 Pursue
Non-Discrimination for all genders.
• Quality
• Environment Availability of natural resources: Diminishing
R 3 3 Undesirable
• Social availability of calcium raw materials.
• Governance
Environmental Biodiversity Conservation Reduce air pollution
• Environment
in conventional emissions, and strengthen the O 3 4 Pursue
• Governance
reputation of Avian Brands.
Emission: High score of scope 3 emissions in the
Environment R 3 3 Undesirable
supply chain.
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Risk and
Likelihood
Opportunity
Impact
Evaluation Treatment / Mitigation
Treatment / Mitigation
Step 2
(Impact*
Likelihood)
• Develop communication between Avian Brands and
authorities. Periodically monitor every month, through the
2 2 Tolerable
• Participate in memberships of associations and ministries’ official websites.
professional organizations.
• Propose prioritization of investments in machines in
need of refurbishment. Choose environmentally friendly machinery and
2 2 Tolerable
• Consider machinery with environmentally friendly equipment at competitive prices.
technology and significant energy savings.
• Propose prioritization of machinery in need of
refurbishment.
- - - -
• Consider significant energy consumption.
• Perform quality maintenance on existing machinery.
• Implementation of multi-layered security system.
2 1 Negligible Cybersecurity training for all employees.
• Improvement in firewall.
• Modification of products by switching to
Establish procedures for raw material screening and
2 2 Tolerable environmentally friendly raw materials.
selection.
• Conduct trial orders for new substitute raw materials.
Conduct continuous efforts of promotion,
Produce environmentally friendly and energy-
socialization, and education on the importance
efficient products for specific segments that are aware 2 2 Tolerable
of environmentally friendly products and energy
of environmental issues and energy efficiency.
efficiency to the customers or the community.
• Conduct rigorous quality testing on all products Transparency in product labeling (by listing ingredients,
before marketing them. 2 2 Tolerable instructions for use, and potential risks, in the form of
• Comply with standards of safety regulations. GHS labels).
Conduct routine and periodic awareness socialization
Conduct vendor assessments on quality, OHS,
related to OHS, environment, and energy to 2 2 Tolerable
environment and energy aspects.
contractors or vendors.
• Coordinate with the local government (district and
sub-district) to inform them of vacancies.
• Prioritize recruitment of workforce from the - - - -
communities in the surrounding areas of Avian
Brands.
• Grant promotions without gender discrimination.
• Provide equal training and compensation - - - -
opportunities without gender discrimination.
• Conduct more efficient use of calcium raw materials.
2 2 Tolerable Purchase calcium from other countries
• Seek out alternative raw materials.
• Select plants that can sequester the largest amount
of carbon emissions.
• Produce an ESG report that highlights the
- - - -
contribution of Avian Brands to biodiversity
conservation.
• Inclusion in the SRI KEHATI index.
Conduct audits of material suppliers and freight
Raise supplier awareness in reducing emissions. 2 2 Tolerable
forwarders.
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SUSTAINABILITY GOVERNANCE
Risk and
Likelihood
Opportunity
Impact
External / Management
R/O
Risk / Opportunity Evaluation
Internal Issues System
(Impact*
Likelihood)
• Quality
• OHS
Climate: Heavy rainfall leading to floods that disrupt
• Environment R 2 2 Tolerable
business operations of Avian Brands.
• Social
Climate Change • Governance
• Environment
• Social Diversification to renewable energy. O 3 3 Prepare
• Governance
• Environment
Local Supplier Difficulty in ensuring compliance with ESG policies. R 2 2 Tolerable
• Governance
Internal Issues
• Quality
• OHS
Governance, Organization
• Environment Support in finance, leadership, and clear
Structure, Roles & O 4 4 Pursue
• Energy accountability in organizational decision-making.
Responsibilities
• Social
• Governance
• Environment Higher operating expenses align with the
• Social mandatory reduction of carbon emissions under the R 3 3 Undesirable
• Governance government’s policy.
Policy, Objectives &
Strategies • Environment
Enhance Avian Brands’ reputation through
• Social O 3 4 Pursue
commitment related to climate change.
• Governance
Information System,
Information Flow & Quality Improvement in customer experience. O 3 4 Pursue
Decision Making
Introduction of New • Quality Program improvement through the Suggestion
Product, Material, • OHS System (“SS”) can improve several aspects, both in
O 4 4 Pursue
Services, Tools, Software, • Environment terms of product quality, delivery quality, cost saving,
Premises, Equipment • Energy energy saving, safety, and morale.
• Quality
Human Resource Difficulty in finding and retaining the right talents. R 3 2 Undesirable
• Governance
Working Condition OHS Potential for severe fires. R 3 1 Tolerable
• Environment
Waste Management Sustainable waste management. O 3 3 Prepare
• Governance
Increased carbon footprint from Avian Brands’
Environment R 3 2 Undesirable
electricity usage.
Emission
Environment Establish partnerships with low-emission suppliers. O 3 3 Prepare
• Environment
Local Supplier Excessive dependence on a single supplier. R 3 1 Tolerable
• Governance
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Risk and
Likelihood
Opportunity
Impact
Evaluation Treatment / Mitigation
Treatment / Mitigation
Step 2
(Impact*
Likelihood)
Look for suppliers from areas in proximity to the
- - - -
operations of Avian Brands.
Use of solar panels to replace the use of electrical
4 3 Pursue Use of Renewable Energy Certificate (“REC”).
energy sources from third parties.
Incorporate several ESG-related compliance policies
- - - -
into the contracts.
Propose CAPEX and OPEX budgets related to quality,
OHS, environment, and energy as necessary to comply - - - -
with the regulations.
• Use renewable energy sources.
3 2 Undesirable Energy Efficiency
• Switch to low-emission energy alternatives.
• Participate in the global Science-Based Target
Initiative (“SBTi”).
- - - -
• Participate in the global Carbon Disclosure Project
(“CDP”) initiative.
• Create Avian Brands app to allow customers to run
simulations on the amount of paint needed and the
color they prefer. - - - -
• Customize products as preferred by the customers
with the desired amount of colors.
• Conduct socialization of program improvement
through SS, twice a month to improve the number
- - - -
of Employee Innovation Ratio (“EIR”).
• Incorporate EIR targets into CI SPV KPIs.
• Development of employee retention programs
(performance-based incentives, balanced work
Optimize the recruitment process to improve the environment, career paths, and clear development
2 2 Tolerable
accuracy of candidate selection. programs).
• Conduct periodic job satisfaction surveys to identify
causes of employee turnover.
• Periodically check electrical installations.
• Provide active fire safety systems in the form of fire
extinguishers, hydrants, fire alarms, sprinklers, heat - - - -
detectors, and smoke detectors that are in good
working condition.
• Apply the 3Rs principle (reduce, reuse, recycle).
• Use composting technology
• Monitoring and reporting of Hazardous Waste
Improve innovation in the utilization of Hazardous
through the SIMPEL KLHK. 3 4 Pursue
and Non-Hazardous waste.
• Reporting of Hazardous Waste manifest through the
FESTRONIK.
• Conduct training on 3Rs of non-hazardous waste.
• Purchase energy from renewable sources through
the REC. Increase the use of renewable energy by installing
2 2 Tolerable
• Install solar panels as an alternative source of solar panels.
electricity.
Select suppliers with sustainability certifications Request suppliers to obtain such certificates as
3 4 Pursue
(FSC, PEFC, or Green Label). conditions for partnership.
Diversification of suppliers to reduce dependence on
- - - -
a single supplier.
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SUSTAINABILITY GOVERNANCE
Integrating Climate Risk Management into Decisions of Avian Brands
[SASB RT-CH-530a.1] [TCFD RISK.a, RISK.b, RISK.c]
Avian Brands implements systematic processes to identify and assess climate-related risks, which serve as an integral part
of overall risk management. Avian Brands conducts climate-related risk assessments with reference to the TCFD framework
that has been integrated with the IFRS S2 Climate-related Disclosures framework. This approach is a form of scenario analysis
that considers both transition risk and physical risk factors. The scenario analysis process in climate-related risk assessment is
conducted through the following steps:
1. Identification of risk drivers, for both transition risks and physical risks, relevant to Avian Brands;
2. Analysis of potential risks and their likelihood of occurrence, as well as consideration for their implications to overall
operational and financial performance;
3. Formulation of mitigation strategies as a response from Avian Brands to potential risks; and
4. Identification of opportunities arising from climate risks that can be further leveraged.
The processes of identifying, assessing, and managing climate-related risks are also integrated into the overall risk management
of the organization. This is carried out by involving all lines of management and ensuring that climate-related risks are
factored into every strategic decision. This approach allows Avian Brands to mitigate the risks posed by climate change,
while capitalizing on opportunities to improve sustainability and competitive edge in the market. This integration builds
synergy between sustainability policies and long-term business goals, supporting Avian Brands’ vision to continuously improve
the quality of business management that is focused on sustainability.
Identification of Transition Risks
Transition risks may arise from the transition towards a more sustainable economy, affecting the way Avian Brands operates
and competes in the market. The process of reviewing transition risks identified by Avian Brands refers to the emerging climate
change-related policies in Indonesia, such as the potential carbon tax following the ratification of the Tax Harmonization
Law. Such a policy could potentially affect the operating expense structure and business strategy of Avian Brands.
In addition, technological developments that support clean energy or sustainable business models also potentially transform
the market structure and intensify the level of competition. Therefore, it is crucial to properly understand and respond to
transition risks in order to maintain Avian Brands’ competitiveness and reputation in the long run. A description of the transition
risks is as follows:
Risks related
Drivers of Implications to Finance and
to Climate Mitigation Strategies
Transition Risk Operations
Change
Changes in Implementation • Currently, the Indonesian Government • Make efforts to reduce scope 1 and scope 2
Policy and of carbon tax or is soon to implement a carbon tax emissions in accordance with the ESG Roadmap
Regulation cap-and-trade policy, indicated by the ratification that has been prepared by Avian Brands, namely
system. of the Tax Harmonization Law, with a reducing emissions by 50% in 2030 and targeting
carbon tax value of IDR 30,000/tonCO2e. net zero by 2050.
The imposition of carbon taxes and • Improve energy efficiency by investing in
stricter emissions regulations may affect renewable energy, including the use of solar
operating expenses (OPEX). This could panels, the use of clean energy (B35), and
lead to reduced profit margins, as well purchasing electricity through the REC.
as potential fines or financial sanctions • Establish partnerships with renewable energy
if Avian Brands fails to meet regulatory providers to obtain more competitive prices.
standards.
• Investments in renewable energy could
affect the operating expense structure,
with high initial costs but potentially
generating long-term savings.
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Risks related
Drivers of Implications to Finance and
to Climate Mitigation Strategies
Transition Risk Operations
Change
Shifting Market Higher expenses Rising raw material prices may occur as an • Develop strategic partnerships with sustainable
Preferences for raw material implication of the enactment of carbon raw material suppliers
suppliers. tax policies or regulatory shifts in favor • Diversification of sources of environmentally
of environmentally friendly products. friendly raw materials.
Increased raw material costs are certainly
parallel to increased production expenses,
which could potentially lower profit margins
if not managed properly.
Changes to The shifting preferences of customers • Improve the transparency of the Sustainability
customer and investors that increasingly favor Report, and formulate business strategies that
and investor sustainable companies and environmentally focus on ESG principles to attract investors.
demand. friendly products could put significant • The RDI Division needs to develop sustainable
pressure on the financial performance of products that meet the needs of customers,
Avian Brands. with the assistance of the Marketing Division
to devise marketing strategies that highlight
Avian Brands’ sustainability commitment.
Environmentally Transition to Adoption of environmentally friendly • Use renewable energy sources, such as increased
Friendly investments technologies can improve Avian Brands’ electricity capacity from solar panels.
Technology and in low-carbon market competitiveness, reduce long-term • Identify and implement cost-saving initiatives in
Innovation technology. operating expenses, and attract investors other areas to offset the cost of initial investment
who prioritize ESG. However, investments in low-carbon technologies.
in new technologies require significant
initial operating expenses (OPEX), which can
reduce profit margins in the short term.
Company Increasing Investors and other stakeholders are now • Communicate sustainability commitments
Reputation demands prioritizing sustainability commitments, transparently through the Sustainability Report,
from investors including the integration of climate change Annual Report, social media and Avian Brands’
and other into corporate policies. Companies that website.
stakeholders fail to demonstrate this commitment are • Pursue certification and recognition through
for sustainable at risk of struggling to attract investment. awards related to sustainability practices to
business This pressure from investors could damage improve the reputation of Avian Brands.
commitments the reputation of Avian Brands or affect its • Conduct internal audits and regular reporting to
and practices. share price. ensure that sustainability practices are carried
out in accordance with established standards.
Identification of Physical Risks
Avian Brands conducts physical risk assessments related to the direct impact of climate change on its operations, both in the
short term and the long term. The identification of physical risks also refers to the global climate scenarios developed by the
Intergovernmental Panel on Climate Change (“IPCC”). Based on TCFD principles, physical risks are divided into two categories,
namely:
1. Acute physical risks, which include extreme weather-related events such as floods, droughts or storms that can damage
infrastructure and disrupt supply chains, and
2. Chronic physical risks, which relate to long-term shifts in climatic conditions, such as rising sea levels or changing weather
patterns that affect the locations and sustainability of Avian Brands operations.
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A description of the physical risks is as follows:
Risk Implications to Finance and
Physical Risk Mitigation Strategies
Category Operations
Acute Potential flood • Temporary operational disruptions • Conduct periodic risk assessments in each Avian
Physical disaster or closure of manufacturing facilities, Brands’ operational area.
Risk which could cause delays in product • Invest in optimal drainage infrastructure and
manufacture and distribution. Disruptions reinforcement of flood-resistant buildings.
to the supply chain could also lead to • Devise a contingency plan to maintain
delays in receiving raw materials or operational continuity.
delivering products to the market. • Upgrade asset insurance to cover flood risks
• Damage to Avian Brands’ assets, such as
manufacturing machinery, resulting in
expenses to repair or replace the damaged
assets.
Potential cyclone • Damage to manufacturing facilities, • Invest in disaster-resistant construction
disaster infrastructure and distribution networks materials.
resulting in operational disruption. • Ensure that Avian Brands’ facilities and
• Disruption to the supply chain due operations are covered by insurance related to
to delays in raw material delivery and natural disasters.
product distribution to customers. • Conduct employee training to deal with disaster
• Increased expenses to repair damaged emergencies.
facilities.
• Safety risks for workers directly affected
by cyclones.
Chronic • Extreme weather • Decreased operational efficiency due to • Adopt weather-friendly technologies, such as
Physical changes disruptions to supply chain, transport, or arranging the layout of production facilities that
Risk • Rising global logistics. factor in airflow and temperature control.
temperatures • Higher utility expenses, such as energy • Establish an emergency response team and
• Extreme heat and water, due to changing weather provide socialization to all employees regarding
patterns. responses in the event of a disaster.
• Potential labor disruptions, such as • Ensure a comfortable, safe, and healthy
decreased productivity or safety risks. workplace that protects employee productivity.
• Declining raw material quality due • Ensure that the impact of rising temperatures
to climate change could impact the does not compromise the quality of raw
manufacturing process and quality of the materials until the final product.
final product.
Drought and water • Limited water supply can disrupt the • Adopt water-efficient technologies, such as
scarcity manufacturing process. the reuse of wastewater in the manufacturing
• Increased cost of acquiring alternative process.
water supplies or water treatment • Develop alternative water sources, such as
technologies. rainwater harvesting
• Pressure from communities and • Employ a water use monitoring system and plan
stakeholders due to water use that is long-term water needs.
deemed unsustainable. • Raise employee awareness of water use
efficiency in the workplace.
Based on the risk identification results above, Avian Brands has demonstrated a high level of initiative in anticipating the
impacts of climate change, by integrating the TCFD framework into the risk management process. This integration includes
an evaluation of transition and physical risks, as well as a comprehensive analysis of their impacts on Avian Brands’ business
operations and strategy.
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Identification of Climate-related Opportunities
In addition to identifying climate-related risks, Avian Brands has also conducted the identification of opportunities that can be
leveraged to support business growth and sustainability strategies. Opportunity identification is carried out comprehensively
by factoring in global trends, local regulations, as well as customer and investor preferences that are increasingly emphasizing
ESG aspects in Avian Brands’ business processes. We have demonstrated our commitment to mitigating risks and capitalizing
on opportunities arising from climate change to create added value for all stakeholders. Such identifications are described as
follows:
Opportunity Climate-related Implications to Finance Opportunity Capitalization
Types Opportunities and Operations Strategy
Innovation in Climate change is driving the Diversification of environmentally • Research and development of
Environmentally demand for more environmentally friendly products presents an environmentally friendly products
Friendly Product friendly products and services. opportunity to increase revenue needed by the market.
Diversification Developing sustainable new from the sale of green products. It is • Improve marketing strategies for
products and services can unlock also a positive signal to enhance the environmentally friendly products to
new markets. reputation and competitive edge of attract customers and investors.
Avian Brands.
Energy This opportunity arises from Reducing energy consumption Investment in energy-efficient
Efficiency efforts to improve energy will lower operating expenses and technologies and implementation of
and Reduced efficiency across Avian Brands’ carbon emissions, which in turn will energy-saving programs across Avian
Operating operations. Energy efficiency increase the profitability of Avian Brands operations to improve efficiency.
Expenses may include reducing water Brands.
consumption, using low-carbon
energy, using more efficient
transportation, and utilizing
waste.
Green Invest in research and The use of green technology can Avian Brands is shifting towards
Technology development of green boost overall operational efficiency, increasing renewable energy sources,
Innovation technologies, such as thereby minimizing environmental such as using electric vehicles (EVs),
renewable energy and recycling impact and leading to potential optimizing recycling technology, and
technologies. savings in energy expenses in the collaborating with strategic partners.
long run.
Access to Green Access to green financing, such as Securing low-cost funding can Develop sustainable projects that satisfy
Financing green bonds or low-interest loans improve liquidity and appeal to green financing criteria and establish
for sustainable projects. sustainability-oriented investors. relationships with financial institutions
that provide green financing.
Overview of Implementation Effectiveness of the Sustainability Risk Management
The overview of the implementation effectiveness of sustainability risk management at Avian Brands represents a structured
and continuous process involving the roles of the Board of Commissioners and the Board of Directors, which are backed
by other supporting organs. The Board of Commissioners and the Board of Directors regularly hold strategic discussions to
ensure that the implementation of sustainability risk management is not only effective in dealing with operational challenges,
but also addresses social and environmental risks that may affect business sustainability.
This evaluation is conducted through comprehensive assessment mechanisms, in which the advantages and disadvantages
of previous plans and actions are exhaustively analyzed. This approach enables Avian Brands to identify areas that require
improvements and implement relevant corrective measures to strengthen sustainability risk management. It aims to not
only minimize potential losses, but also to create opportunities that can contribute to achieving the strategic objectives of
Avian Brands in a sustainable manner. Results from this evaluation ensure that sustainability risk management remains adaptive
and responsive to evolving business dynamics, thus providing optimal protection for Avian Brands as well as supporting its
sustainable growth.
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Building a Sustainability Culture [POJK F.1]
Avian Brands consistently encourages the implementation The Business Ethics and Code of Conduct of Avian Brands
of a sustainability culture in every aspect of its business regulate several aspects of conduct described as follows:
activities. This commitment is embodied in Avian Brands’
Sustainability Policy, which has been formulated with the Principles in the Code of Conduct
involvement of the stakeholders. We also socialize this policy
to ensure that every personnel of Avian Brands is able to
Business Ethics Standard
carry out their duties and responsibilities, as well as make
business decisions with an approach that is grounded in
sustainability principles. In building a firm foundation for a
sustainability culture, Avian Brands emphasizes adherence • Compliance with prevailing Laws and Regulations
of all employees to the Code of Conduct as well as the • Company Ethics for Company Personnel
implementation of GCG principles in a comprehensive • Company Ethics for Consumers
and sustainable manner. This includes providing an • Company Ethics for Shareholders
effective complaint mechanism to address violations of • Company Ethics for Competitors
established norms. • Company Ethics for Mass Media
• Company Ethics for Business Partners
We also successfully delivered numerous positive media • Responsibilities to the Government
reports that communicated Avian Brands’ commitment to • Responsibilities to the Community and the Environment
• Responsibilities in Innovation
the management of ESG aspects. In doing so, we ensure
that every element in the organization participates in
achieving the predetermined sustainability objectives, in
order to positively contribute to the environment, social and
governance aspects. Standard Code of Conduct
Code of Conduct [GRI 2-24]
• Individual Commitment
• Communication and Information Delivery
We have established minimum standards of conduct
• Maintaining the Confidentiality of Data, Confidential
that must be adhered to by all personnel of Avian Brands,
Information, and Material Information of the Company
including members of the Board of Commissioners and • Use of Company Technology
Board of Directors, all employees of Avian Brands and the • Cooperation between Company Personnel
Subsidiaries, and other personnel directly working for and • Equality in Treatment and Provision of Opportunities
on behalf of Avian Brands. These standards of conduct are • Compliance with Prevailing Laws and Regulations
summarized in the Business Ethics and Code of Conduct, • Giving and Receiving of Gratuities
which are part of Avian Brands’ commitment to conducting • Integrity of Financial Reporting
ethical business practices aligned with the aspirations of • Protection of Company Assets
our stakeholders. Formulation and implementation of these • Budget Planning and Use
guidelines aim to ensure that every action taken by relevant • Occupational Health and Safety and Environment (OHSE)
• Conflicts of Interest
parties within Avian Brands not only complies with norms
and regulations, but also promotes a fair and transparent
workplace environment.
More detailed information regarding the Company’s
In an effort to achieve this goal, Avian Brands regularly Business Ethics and Code of Conduct can be accessed
socializes the Business Ethics and Code of Conduct to all on the Company’s website under Corporate Governance
relevant parties, to ensure thorough understanding and (https://en.avianbrands.com/investor/l2/kebijakan-tata-
compliance. This socialization is carried out through various kelola/etika-usaha-dan-pedomanperilaku).
internal channels as well as Avian Brands’ website, accessible
to both internal and external parties. This allows us to
maximize the prevention of conflicts of interest, violations
of norms, as well as acts of corruption and gratuities, thus
minimizing adverse risks for both Avian Brands and other
stakeholders.
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PT Avia Avian Tbk • 2024 Sustainability Report
Anti-Corruption, Bribery, and Fraud Policy identifying and minimizing any potential for corruption.
Moreover, to ensure that anti-corruption principles are firmly
We consider acts of corruption a serious threat that ingrained in the corporate culture, Avian Brands routinely
can harm our reputation and hinder the progress of conducts training and socialization programs for employees
Avian Brands. In an effort to protect integrity and the trust and all governance organs. This socialization is realized
that has been established, we are committed to fostering through, among other things, the signing of an Integrity Pact
and strengthening an anti-corruption culture in all aspects and induction program for new employees. All Avian Brands
of Avian Brands’ operations. This commitment is intended employees have received socialization and signed the Integrity
to not only prevent material losses, but also protect Avian Pact.With this approach, we ensure that every operational activity
Brands’ reputation and credibility. Anti-corruption policies of Avian Brands is conducted with transparency and integrity,
of Avian Brands are fully set out in the Business Ethics and free from any practice of corruption, collusion and nepotism.
Code of Conduct of Avian Brands. [GRI 3-3] [GRI 205-1, 205-2]
Based on the Business Ethics and Code of Conduct of Anti-Corruption Risk Overview [GRI 205-1]
Avian Brands, the following policies have been established: Avian Brands has proactively conducted internal evaluations
[GRI 3-3] to identify potential risks of corruption and fraud that do
1. Avian Brands’ personnel may provide gifts, souvenirs, or not comply with GCG principles. The Avian Brands has
entertainment to eligible parties under these conditions: conducted evaluation of corruption risk in 100% of the
a. Supporting the interests of Avian Brands, inspection areas, i.e. 597 areas. Results of this evaluation
conducted in a responsible manner and does not showed 1 anti-corruption finding in the minor category.
cause harm to Avian Brands’ image, and done with In response to this finding, the Internal Audit Unit and the
due regard to the relevant applicable regulations; management have taken necessary corrective measures in
b. Not intended to bribe and/or offer or direct another accordance with the applicable procedures and regulations,
party to commit bribery; and to ensure that risks are minimized and do not adversely
c. Not intended to induce the recipient to take any impact Avian Brands’ operations.
action that is contrary to his/her obligations or to
applicable regulations; Proven Corruption Incidents
2. Avian Brands’ personnel are prohibited from receiving and Measures Taken [GRI 205-3]
gifts, souvenirs, entertainment, or other facilities Throughout 2024, there was 1 minor case of alleged
or gratuities in any form related to their position corruption. All reports and findings have been followed up
and occupation, which may affect Avian Brands’ on by verifying the facts and resolved by the relevant team
decision-making or violate applicable regulations; in accordance with the degree of violation and applicable
3. Avian Brands’ personnel are allowed to receive regulations of Avian Brands.
something from Avian Brands and/or other parties,
which will not affect their actions related to their position
and occupation in Avian Brands, in the case of: Company Ethics for Shareholders and Fair
a. Receiving a banquet; Treatment of Shareholders
b. Receiving promotional items that contain the logo/
name of the providing company; Avian Brands has the Business Ethics and Code of Conduct
c. In the context of donations in the event of a disaster that contains provisions that specifically govern the
and/or certain celebrations/events according to Company’s ethical relationship with Shareholders. Under
local customs; and this policy, Avian Brands is committed to providing equal
4. To submit a disclosure report on each granting and and fair treatment to all Shareholders, in accordance with the
receiving of gratuities in accordance with the procedures number and type of shares held. Each Shareholder is entitled
established by Avian Brands. to exercise its rights as stipulated in the Articles of Association
of Avian Brands and the prevailing laws and regulations. In
As a preventive measure, Avian Brands has implemented addition, Avian Brands always provides publicly available
specific procedures and guidelines that must be adhered information to Shareholders in a comprehensive, accurate,
to by all employees and business partners. Avian Brands up-to-date, non-misleading, and easily accessible manner in
also proactively conducts risk mapping and analysis accordance with the laws and regulations, which is provided
across its supply chain and business operations, aimed at through a single point of communication.
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Moreover, to maintain trust and integrity, the Business Ethics and Code of Conduct stipulate the obligation of all Avian Brands
personnel to:
1. Not disclose and disseminate confidential information of Avian Brands, received during his/her employment at
Avian Brands, to other parties; and
2. Not disclose material information to other parties or misuse it for personal gain or which may otherwise adversely impact
the reputation of Avian Brands.
This commitment is strengthened by the adoption of the Insider Trading Prevention Policy, ratified on December 27, 2021.
This policy aims to ensure that all trading activities of Avian Brands’ securities are conducted fairly and transparently, in
compliance with applicable regulations. This policy also protects the interests of Avian Brands in the implementation of various
corporate actions, maintains market integrity, and avoids potential conflicts of interest. By implementing this comprehensive
policy, Avian Brands demonstrates its dedication to respecting Shareholders’ rights and protecting sensitive information.
Company Ethics for Business Partners [GRI 2-24]
We have established ethical standards that must be adhered to by Avian Brands and each partner in their business relationship
with Avian Brands. We expect our partners to comply with all applicable regulations and respect fair and transparent terms.
This Standard of Company Ethics for Business Partners aims to not only ensure regulatory compliance, but also to maintain
integrity and professionalism in every aspect of cooperation. As a guide to the implementation of this commitment, Avian
Brands has formulated specific ethical standards governing interaction and collaboration with business partners. This guideline
helps to ensure that business relationships are not just based on mutual benefit, but also adhere to strict ethical principles.
The principles of ethics with partners are described as follows:
Company Ethics for Business Partners
Selecting partners based on aspects of accountable credibility, competence, integrity,
1
and bona fides.
Exploring existing business opportunities in an effort to drive Avian Brands growth
2
over time.
Fostering a climate of mutual trust, respect, and togetherness, and building honest and
3
intensive communication.
Conducting an initial risk analysis and for any agreement that is outlined in a written
4
document by the competent work unit.
5 Fulfilling rights and obligations based on agreements or covenants between parties.
Avian Brands can terminate business relationships with partners when our interests are no
6 longer being met or when the relationship is potentially harmful to the community or the
environment.
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PT Avia Avian Tbk • 2024 Sustainability Report
Not influencing each other, either directly or indirectly, which may result in unfair business
7 competition, a decrease in product quality, and disruptions to product procurement and
distribution process.
Preventing conflicts of interest of parties directly or indirectly involved in
8
the procurement process.
Striving to support the government’s efforts in assisting micro, small, and medium enterprise
9
partners.
Company Ethics for Suppliers [GRI 2-24]
Avian Brands is committed to procuring goods and services by upholding the principles of healthy competition, transparency,
fairness, prudence, and accountability. This commitment is manifested through implementing Standards of Ethics for
Suppliers, which serves as a guideline for all suppliers in partnering with Avian Brands. These Standards of Ethics for Suppliers
are designed to ensure that every stage of procurement is conducted in a fair and transparent manner, fostering a sustainable
and mutually beneficial business relationship. Through this approach, Avian Brands strives to maintain integrity and
quality in every procurement process, and to ensure that all suppliers meet the ethical standards expected by Avian Brands.
The principles of ethics with suppliers are described as follows:
Company Ethics for Suppliers
Supplier selection must be based on competence, integrity, performance, track record, and
1
the needs of our Avian Brands, while prioritizing the interest of our Avian Brands.
Respecting the rights and obligations of suppliers in accordance with the engagement
2
agreement as well as laws and regulations.
Conducting transparent, fair, prudent, and equal treatment during the procurement process
3
until the rights and obligations of the parties are fulfilled.
Periodically evaluate suppliers’ performance and take firm actions against those violating
4
Avian Brands Business Ethics.
5 Reporting receipt of gratuities, both directly and indirectly, from suppliers.
In the event of conducting business activities/transactions with suppliers with substantial
6 material value for our Avian Brands, an initial risk analysis must be performed by competent
work units.
Not engaging in extortion of suppliers, either directly or indirectly, or any other similar
7
actions that may defame Avian Brands and/or potentially violate applicable regulations.
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Legal Measures against Anti-Competitive Practices, Antitrust Practices
and Monopolistic Practices [GRI 3,3 206-1]
Avian Brands reaffirms its commitment to fair competition through its Business Ethics and Code of Conduct. Avian Brands
ensures that all business processes are carried out in accordance with the principles of transparency, fairness, prudence and
accountability. Avian Brands is committed to complying with all relevant laws and regulations on competition, in order to
maintain integrity and promote ethical business practices.
Until the end of the reporting period, Avian Brands had never been involved in legal actions related to anti-competitive
practices or violations of anti-trust and monopoly laws, of which Avian Brands was identified as a participant. This is evidenced
by Avian Brands not being listed in the database of alleged violations by the Business Competition Supervisory Commission
(Komisi Pengawas Persaingan Usaha or “KPPU”) of the Republic of Indonesia. In addition, Avian Brands is not subject to significant
domination in the market or business competition against other companies, demonstrating Avian Brands’ commitment to
ethical operations in compliance with applicable regulations.
In supporting this policy, Avian Brands has also implemented a reporting mechanism through the whistleblowing system,
which allows internal and external parties to report any issues related to unfair competition. This is part of Avian Brands’ efforts
to ensure a clean and fair business environment, and to solidify the trust of all stakeholders in Avian Brands’ commitment to the
principles of fair and ethical competition.
Whistleblowing System [GRI 2-16, 2-26]
We continuously seek to improve the quality of Avian Brands management by involving stakeholders via the Whistleblowing
System (“WBS”) facility. The WBS is designed as a safe platform for stakeholders to report allegations of fraud or legal violations
related to GCG principles, such as acts of fraud, corruption and bribery. Reports are submitted through channels that are
open 24/7, administered by the Good Corporate Governance Committee of Avian Brands. Through the WBS, we are able to
proactively identify and address potential risks that could lead to financial loss or damage to the reputation of Avian Brands, as
well as uncover issues that may not be visible through other channels.
The WBS enables Avian Brands to obtain information and disclosures on events that require serious attention, which allows
us to take appropriate action before further escalation of such issues. The system also provides valuable feedback on any
shortcomings in the internal controls and work processes of Avian Brands. Based on the insights gained from these reports,
we can devise and implement the necessary corrective actions to strengthen the integrity and effectiveness of Avian Brands’
management. Thus, the WBS is critical in maintaining high ethical standards and supporting Avian Brands’ efforts to establish
a fair, transparent and accountable work environment.
The WBS mechanism of Avian Brands is described as follows:
Preliminary Indication of Reporting to the
Investigation
Inspection Violation Management
Incoming
Report
No Indication of
Violation Corrections
of Weakness
in Internal
Control and
Indisciplinary
Complainants to be Case Closed
Sanction
updated on the result
of case investigation
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PT Avia Avian Tbk • 2024 Sustainability Report
Each report on violation complaints may be submitted to:
The Good Corporate
Governance Committee (62) 81138505000
Avian Brands Building www.avianbrands.com
Jl. Ahmad Yani No. 317
Surabaya 60234
Jawa Timur, Indonesia pengaduan@avianbrands.com
Responsibility for the WBS management of Avian Brands falls under the Good Corporate Governance Committee. This
committee holds a key role in managing and following up on any incoming reports, as well as ensuring that procedures are
in accordance with the applicable laws and regulations. The Good Corporate Governance Committee constantly acts with
utmost independence and ensures the confidentiality of the whistleblower’s identity, thus protecting them from any potential
harm or retaliation. In carrying out its function, the Good Corporate Governance Committee collects relevant data, documents
and evidence related to the complaints received. If evidence is deemed sufficient, the violation report will proceed to the
investigation stage and be submitted to the Board of Directors for further action. Conversely, if the report is not supported
by sufficient evidence, the Good Corporate Governance Committee will inform the complainant that the complaint cannot
be processed further. Through this process, Avian Brands ensures that all complaints are taken seriously and objectively, in
accordance with GCG principles.
Throughout 2024, we received 3 complaint reports through the WBS consisting of 1 major reports, 1 minor report, and 1 no
issue report. All these reports have been followed up by the relevant teams and resolved in accordance with the degree of
violation and applicable regulations in Avian Brands.
Conflicts of Interest Guidelines [GRI 2-11, 2-15]
In an effort to ensure proper management of Avian Brands, maintain harmonious relationships with all stakeholders, and
increase the company’s value in a sustainable manner, we firmly and fairly address any conflict of interest issues that may arise.
We ensure that there are no relationships that may lead to conflicts of interest between the Board of Commissioners, the Board
of Directors and Shareholders. To uphold this principle, we have implemented the Conflict of Interest Guidelines developed
in accordance with the prevailing laws and regulations, the GCG Guidelines, the Business Ethics and Code of Conduct,
as well as the Corporate Culture implemented in Avian Brands.
Under such policies, every Avian Brands’ personnel, including the Board of Commissioners and the Board of Directors,
is obliged to:
1. Refrain from participating in decision-making processes in the event of a potential Conflict of Interest.
2. Avoid discriminatory and unfair conduct, as well as refrain from colluding to favor one or several parties in the procurement
of goods and services at Avian Brands;
3. Refrain from utilizing information and business data of Avian Brands for purposes that are not related to Avian Brands;
4. Avoid involvement in the employment processes, such as recruitment, performance appraisal, promotion, transfer,
termination of employment, if he/she is in a position/role that causes a conflict of interest;
5. Refrain from utilizing and using Intellectual Property Rights (“IPR”) of Avian Brands that may harm the interests or impede
the progress of Avian Brands;
6. Refrain from holding any shares/ownership in such amount that could influence decision-making, including those owned
by his/her spouse and children, and refrain from becoming a member of the Board of Commissioners or the Board of
Directors in a business entity that is a partner or competitor of Avian Brands;
7. Refrain from owning a business that competes with the business activities of Avian Brands or that becomes a partner of
Avian Brands, including a business owned by his/her spouse or child;
8. Refrain from granting or accepting loans from suppliers and/or consumers;
9. Avoid abuse of authority or misuse of assets, facilities, and infrastructure of Avian Brands for his/her personal interests or
other parties’ interests; and
10. Avian Brands’ personnel who may potentially be, and/or have already been, in a conflict of interest situation are prohibited
from carrying out activities/performing duties and responsibilities related to the conflict of interest situation.
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In addition, Avian Brands also has Conflict of Interest Guidelines in place, established on June 25, 2021, and updated on
December 27, 2021, to ensure that every decision and action taken within the scope of Avian Brands is free from personal
interests that may harm its integrity. These guidelines serve as a reference point in identifying, managing and resolving
potential conflicts of interest in a transparent and consistent manner, ensuring that all decisions and actions are made with
a high degree of objectivity and integrity. Throughout 2024, there was nothing to indicate any conflicts of interest in any
decisions and policies made by Avian Brands.
More information on the Conflicts of Interest Guidelines can be accessed on Avian Brands’ website under the Corporate
Governance section (https://en.avianbrands.com/investor/l2/kebijakan-tata-kelola/pedoman-benturan-kepentingan).
Communication Policy Guidelines
Avian Brands has implemented Communication Policy Guidelines to govern our interactions with Shareholders, the
Capital Markets Authority and the capital markets community. These guidelines aim to ensure that all communications are
conducted transparently, in accordance with applicable laws and regulations, and support the principle of fairness. Based on
these guidelines, we are committed to providing complete, accurate and up-to-date information, while ensuring that such
information is easily accessible and not misleading. The Guidelines also highlight fair treatment of Shareholders, ensuring
that their rights are respected and exercised in accordance with the principles of fairness. Thus, the Communication Policy
Guidelines reinforce integrity and transparency in all Avian Brands’ relationships with external parties.
More information on the Communication Policy Guidelines can be accessed on Avian Brands’ website under the Corporate
Governance section (https://en.avianbrands.com/investor/l2/kebijakan-tata-kelola/kebijakan-komunikasi).
Information Security System Policy
Avian Brands considers information security as more than just an operational necessity, but also a key pillar in ensuring
business sustainability as well as building and maintaining stakeholder trust. Therefore, Avian Brands has implemented
the Information Security Management System Policy of PT Avia Avian Tbk, effective from July 1, 2024. Based on this policy,
Avian Brands constantly conducts continuous improvements of the information security management system by:
1. Maintaining data confidentiality, integrity and availability by managing all information assets (including personal data)
responsibly and taking all precautions against unauthorized disclosure, loss and corruption of data;
2. Taking corrective actions to resolve and prevent information security incidents and ensuring continuous improvement of
the information security management system;
3. Improving employee competence by conducting information security training, providing infrastructure, and raising
awareness of the importance of responsible management of information assets; and
4. Complying with applicable local, regional and national laws and regulations related to information security.
Avian Brands has integrated these policies into day-to-day business processes in order to ensure that operations are conducted
using reliable, transparent and secure systems. In addition, this policy has also been socialized to all levels of management to
ensure that all employees have the awareness to regularly document, maintain, implement, review, and provide information
regarding the information security management system to related parties. This constitutes part of Avian Brands’ efforts to
protect information assets, improve customer satisfaction, ensure quality services, and create added value for stakeholders.
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PT Avia Avian Tbk • 2024 Sustainability Report
Compliance with Prevailing
Laws and Regulations [GRI 2-27]
Avian Brands continuously ensures that the Board of Commissioners, the Board of Directors, officers, employees and
related parties perform their duties with responsibility, integrity, trust, respect and loyalty, and comply with applicable legal
obligations. This commitment is evidenced by the absence of fines or significant legal actions during the reporting period,
both from authorized institutions and from the Financial Services Authority and the Indonesia Stock Exchange.
This demonstrates consistent compliance with legal standards and regulations, and reflects our efforts to ensure that all Avian
Brands’ activities are conducted in accordance with applicable laws and regulations.
Non-Compliance Incidents Relating to Health and Safety Impacts of
Products and Services [GRI 416-2] [SASB RT-RT-CH-410b.1.]
Throughout 2024, Avian Brands has conducted identification and found no non-compliance with the laws and/or voluntary
regulations concerning the health and safety impacts of products. All 100% of Avian Brands’ products are equipped with a Safety
Data Sheet (“SDS”) as well as safety, health and environmental information assessments in accordance with the Regulation
of the Minister of Industry of the Republic of Indonesia No. 87/M-IND/PER/9/2009 on the Globally Harmonized System of
Classification and Labeling of Chemicals, or the Globally Harmonized System (“GHS”). Moreover, in 7 of its paint product
brands, Avian Brands has complied with the SNI standard. This demonstrates the implementation of the Product Quality
pillar, which ensures customer health and safety, in accordance with Customer Focus, which is one of its corporate values.
As a proactive measure, Avian Brands continues to conduct periodic internal audits and risk evaluations. We also actively listen
to customer feedback to ensure that Avian Brands can identify potential risks before they escalate into real problems.
Further information on SDSs and GHSs is accessible on Avian Brands’ website in the Products section
(https://avianbrands.com/produk).
Political Contributions [GRI 415-1]
Avian Brands is firmly committed to maintaining integrity and independence in every aspect of business management.
We ensure that Avian Brands’ operations are free from any political bias towards both political parties and individuals.
This principle guides all activities of Avian Brands in order to prevent direct or indirect contributions that could unethically
influence political processes and pose a risk of corruption. This policy affirms that Avian Brands will not be involved, materially
or immaterially, in political interests or in activities related to any particular political party. By adhering to these principles, we
ensure that all decisions and actions of Avian Brands remain focused on business integrity and interests, in accordance with
Avian Brands’ Sustainability Policy, which emphasizes political neutrality as part of Avian Brands’ commitment to transparent
and responsible governance. [GRI 3-3]
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Healthy
Economic
Growth
“The sustainability performance of
Avian Brands reflects our commitment to
deliver added value to all stakeholders,
through responsible product creation and
manufacturing patterns. Avian Brands
focuses on creating long-term value by
ensuring the distribution of economic
benefits to all stakeholders and integrating
environmentally friendly manufacturing
practices. Through continuous innovation
and responsible management, we strive to
not only achieve financial growth, but also
ensure that the positive impacts of Avian
Brands’ economic activities extend to the
wider communities and environment.”
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Avian Brands Achievements [GRI 3-3]
We have involved local parties in the operations of Avian Brands, including 217 local suppliers or 76.14%
of Avian Brands’ total suppliers, and 8,387 local employees with a percentage of 90.03% of Avian Brands’
total employees.
We have conducted assessments on the implementation of sustainability practices for 20% of key
suppliers, that account for 80% of Avian Brands’ total purchase value.
Avian Brands dominates the national decorative paint market with a 24% market share.
In 2024, Avian Brands successfully realized paint manufacturing of 197,339 metric tons or 95.00% of
the target. Of this achievement, Avian Brands successfully recorded a net revenues of IDR7,471.36 billion
or 95.50% of the target and a net profit of IDR1,663.70 billion or 95.84% of the target.
Avian Brands has invested IDR733.44 million of its total operating expense/opex in projects that support
sustainability.
Economic Performance Management Strategy
Economic performance management is the main foundation for the successful implementation of Avian Brands’ sustainability
programs. In an evolving business environment, Avian Brands emphasizes the importance of flexibility and agility in adjusting
strategies, both in terms of sales and production. This is conducted to ensure that Avian Brands maintains competitive
advantage and business resilience amidst increasingly intense competition. In terms of manufacturing, Avian Brands operates
two manufacturing facilities strategically located in Serang and Sidoarjo, with a total manufacturing capacity reaching
286,416 metric tons of paint per year. These facilities are designed to meet the needs of a growing market and ensure a
continuous supply of high-quality products.
In terms of sales, Avian Brands continues to develop wide and extensive marketing and distribution networks across the
Indonesian archipelago. By the end of 2024, Avian Brands had 124 wholly-owned distribution centers, 15 wholly-owned mini
distribution centers, 38 independent distribution centers, and had cooperated with 58.451 building stores. These networks
not only make it easier for customers to access Avian Brands’ products but also reinforce its position in the national market.
Rapid development in Indonesia’s construction sector is also boosting the demand for Avian Brands’ decorative paint products,
which have become an essential part of architectural applications. Avian Brands’ products not only enhance the appearance of
walls and building structures, but also offer protection against damage caused by external factors - an added value offered by
Avian Brands to the customers.
More detailed information related to the business strategy adopted by Avian Brands in 2024 is described as follows:
[GRI 3-3]
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PT Avia Avian Tbk • 2024 Sustainability Report
Economic Performance Management Strategy
Expansion of distribution networks in various regions in Indonesia to improve customer access to
1
Avian Brands’ products.
Integrated supply chain management, from research and development to product distribution, through
2
strategic cooperation with local and international suppliers.
3 Creation of sustainable economic value benefits for all stakeholders.
Avian Brands also routinely evaluates the effectiveness of business strategy implementations related to economic
performance management. This evaluation is conducted through structured Key Performance Indicator (“KPI”) monitoring
for each level of management. With this approach, Avian Brands ensures that each predetermined target and objective can
be achieved with optimal efficiency and effectiveness. This evaluation process not only functions as a performance indicator,
but also as a mechanism to identify opportunities for improvement and strategic adjustments in accordance with evolving
market dynamics and business environment. Thus, Avian Brands can keep maintaining its competitive edge and achieve
sustainable results in line with its Vision and Mission as well as the predetermined long-term plans.
Supply Chain [GRI 2-6]
As the leader in the paint and decorative coating industry, Avian Brands has the competitive advantage of operating a fully
integrated supply chain. Every single process is managed internally - from the early stages of research and development,
manufacturing of some key raw materials, manufacturing of some packaging, manufacturing of paint products,
filling-packing-storing, to product marketing and distribution. Certain raw materials that are not produced internally are
procured through strategic partnerships with suppliers that meet certain criteria.
Effective supply chain management is a key foundation in maintaining Avian Brands’ sustainability. By maintaining transparent
and responsible relationships with each supplier, Avian Brands ensures stable and sufficient supplies of raw materials in line
with dynamic market demands and manufacturing needs. In addition to maintaining smooth production flow, this cooperation
also aims to improve operational efficiency and product quality. This approach enables Avian Brands to swiftly anticipate market
changes, maintain competitive advantage, and continuously deliver on customer expectations with high-quality products.
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An overview of Avian Brands’ supply chain in paint manufacture is described as follows:
Avian Brands Supply Chain
Process Planning and Inventory Control
provides information on ofraw material
requirements.
Material purchase transactions process Overseas suppliers receive
based on PPIC requirements by taking purchase orders and make
into account quality standard and shipments to Jakarta Port or
competitive prices. Surabaya Port.
Local suppliers of raw Local suppliers of packagings
materials receive purchase receive purchase orders and Surabaya/Jakarta Port.
orders and make shipment. makes shipments.
Receipts of materials from the
Raw material and packaging warehouse.
warehouse to be processed
into intermediates products/
finished products.
Conducting inspections on the compliance
of materials to quantity standars.
The above chart of Avian Brands’ supply chain illustrates the flow of comprehensive raw material management, from the
planning stage to the manufacturing stage. This process starts with the PPIC, playing an important role in determining raw
material requirements based on the production plan. Thereafter, purchase transactions are carried out in a centralized manner
by considering the suitability of quality and price from the suppliers, to ensure that Avian Brands obtains the finest raw materials.
Any material purchased and shipped must go through the Incoming Quality Control process, to ensure that the purchased goods
meet the established quality standards and safety requirements, and are subsequently utilized in the manufacturing process. In
general, Avian Brands procures raw materials from local and international suppliers. Local suppliers deliver them directly, while
international suppliers deliver them through the ports in Jakarta or Surabaya.
Once received, raw materials will then be stored in the warehouse and go through a quality inspection stage to ensure compliance
with established standards. This stage is crucial to maintaining product integrity in subsequent stages of manufacturing.
Raw materials that have passed the storage and inspection process are subsequently processed into intermediate products
or finished products ready for distribution. The above supply chain illustrates how we are able to effectively manage our
relationships with suppliers and maintain optimal material flow, thus ensuring smooth operations of Avian Brands and meeting
the needs of the market with high-quality products.
Proportion of Procurement from Local Suppliers
Description Unit 2024* 2023* 2022*
Total Local Suppliers Number of Company 217 219 209
Total Suppliers Number of Company 285 281 275
Percentage of Procurement from
% 76.14 77.94 76.00
Local Suppliers
Notes:
* AVIA, TKTW, and TKBI.
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In supporting local economic development in line commitment to responsible and sustainable procurement
with the commitment to engage the local (domestic) practices. Supplier audits are conducted both on-site and
workforce, Avian Brands is committed to allocating a off-site. In 2024, Avian Brands successfully increased the
significant proportion of its expenditure to local suppliers. frequency of on-site audits to 11 raw material suppliers and 12
The total number of local suppliers in 2024 amounted to freight forwarding suppliers compared to the previous year.
217 suppliers, accounting for 76.14% of the total suppliers [GRI 3-3, 408-1, 409-1]
of Avian Brands. By involving local suppliers in supplying
raw materials for manufacturing, Avian Brands not only Environmental and Social Assessment
ensures smooth operations but also directly contributes for Suppliers [GRI 308-1, 414-2]
to the economic and social growth of local communities. Avian Brands implements a Green Procurement Policy
This collaboration creates jobs, encourages local business for the selection of contractors, partners and suppliers as
development, and strengthens regional economies, which part of its sustainability commitment. Avian Brands has
ultimately improves the welfare of communities around conducted engagement with suppliers and distributors
Avian Brands’ operational areas. This positive impact reflects through socialization, training, and audits related to
the commitment of Avian Brands to promoting inclusive sustainable procurement. The supplier selection process
and sustainable economic development through synergies has been integrated with sustainability principles
with local suppliers. [GRI 203-2] by means of a questionnaire, which contains questions
on environmental and social assessment, covering aspects
Meanwhile, the remaining 68 suppliers or 23,86% are such as compliance with environmental standards, energy
international suppliers from various countries. The primary efficiency, waste management, as well as social practices
challenges in the international procurement of raw materials such as business ethics, labor rights, and occupational
consist of exchange rate fluctuations and the risk of late health & safety. As a result, we noted that no contractors,
delivery. To address these, Avian Brands actively monitors partners or suppliers were reported to have caused adverse
exchange rates and carefully supervises the delivery of raw environmental impacts as a result of their operations. We
materials. Avian Brands is also disciplined in timely payments have conducted assessments for 20% of key suppliers,
of foreign currencies and utilizes futures contracts to protect that account for 80% of Avian Brands’ total purchase value.
itself from unexpected exchange rate fluctuations, in order The assessment results showed that 37 local raw material
to maintain operational and financial stability. suppliers have implemented 68.80% of sustainability aspects,
while 47 imported raw material suppliers achieved 80.95%
and 24 packaging material suppliers have implemented
Sustainable Procurement Practices 65.91% of sustainability aspects. We also conduct audits
of hazardous waste service vendors to ensure their
To ensure sustainable procurement practices, in addition to compliance with applicable regulations and procedures.
assessing product quality and supply chain management, [GRI 3-3, 308-1, 414-2]
Avian Brands also evaluates suppliers’ commitment to
sustainability principles, particularly those related to Moreover, in an effort to implement sustainable procurement
fairness in social (labor) and environmental aspects. We practices, consistent with the Fourth Pillar of Avian Brands’
ensure that Avian Brands’ suppliers comply with applicable Sustainability Policy, we actively engage suppliers through
labor regulations, including prohibition of underage labor various strategic approaches. In addition to engaging
and equitable granting of employee rights, and that they suppliers in stakeholder surveys to evaluate sustainability
do not engage in recruitment fee practices. Additionally, materiality topics, we have also conducted socialization
supplier audits also incorporate aspects of environmental and training on scope 3 GHG emissions reporting.
management, such as the management of hazardous These measures aim to ensure that suppliers understand
waste and material usage. To ensure compliance with these and implement high levels of sustainability standards
standards, we periodically conduct random audits of suppliers and contribute to the overall reduction of environmental
whom Avian Brands has cooperated with, to uphold our impacts throughout the entire supply chain of Avian Brands.
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Served Market [GRI 2-6]
In navigating the ever-changing market dynamics, an in-depth understanding of the served market is key to formulating
effective business strategies. Avian Brands is committed to identifying and satisfying the needs of the market by offering
products and services that correspond to customer demands and preferences. Through comprehensive market analysis and a
customer-oriented approach, Avian Brands not only strives to meet market expectations, but also to create sustainable added
value. Information regarding the market segments served by Avian Brands as well as the strategies implemented to ensure
customer satisfaction and sustainable growth, are described below:
Network Description
The geographical locations where Avian Brands and Subsidiaries’
Geographical Location
products/services are offered are spread throughout the Indonesian
1 where the Product/Service
territory. In the domestic market, Avian Brands continue to be
is Offered
the market leader in decorative paints with a market share of 24%.
Network Description
Sectors served by Avian Brands and its Subsidiaries are mainly retail
Served Sectors customers in the form of building material stores, both conventional
2
stores and Modern Trade Outlets, as well as a small portion of various
building, infrastructure and construction projects. We also serve
business-to-business customers, such as banking networks and retail
store networks.
Network Description
The types of customers and beneficiaries of the business sectors
Types of Customers and run by Avian Brands and its Subsidiaries are the general public,
3
Beneficiaries ranging from the lower, middle, and upper classes. Avian Brands also
provides supplies for the corporate segment, which is spread across
several regions.
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Achievement of Operational
and Financial Performance Targets
Amidst the challenging landscape of the national paint the Board of Commissioners, in evaluating achievements
industry, Avian Brands continuously strives to achieve and identifying areas of improvement. This evaluation
substantial growth in its economic performance, in order ensures that the implemented strategies not only achieve
to maintain its commitment to deliver direct benefits the established targets, but also support the creation of
to Shareholders and all stakeholders. To realize this sustainable long-term value for all relevant parties. Through
commitment, we strategically focus on strengthening Avian this integrated and result-driven approach, we strive to
Brands’ business fundamentals, with a focus on improving overcome challenges, optimize performance and strengthen
competitiveness and gaining sustainable competitive Avian Brands’ position in the market, while continuously
advantages. We are taking proactive steps to expand providing meaningful benefits to all stakeholders.
our product portfolio by adding relevant and innovative [GRI 3-3]
product variants, expanding our distribution networks to
reach wider markets, and launching more aggressive and In 2024, in terms of operational achievement, Avian Brands
focused marketing programs. These steps are designed to successfully realized paint manufacturing of 197,339 metric
meet the growing needs of the market and increase Avian tons or 95.00% of the target. From this amount, Avian Brands
Brands’ penetration across various segments. [GRI 3-3] successfully recorded a financial achievement in the form
of a net revenue of IDR7,471.36 billion or 95.50% of the
Management of the strategies, as well as achievement of target, and a net profit of IDR1,663.70 billion or 95.84% of
operational and financial performance, is the collective the target. Further information on the comparison of targets
responsibility of the Board of Directors, in collaboration with and realizations over the last 3 years is described as follows:
Achievement of Operational and Financial Performance Targets [POJK F.2]
2024 2023 2022
Description Achievement Achievement Achievement
Realization Target Realization Target Realization Target
(%) (%) (%)
Manufacturing
197,339 207,725 95.00 180,540 181,245 99.61 170,986 230,025 74.33
(Metric Tons)
Net Revenue
7,471,356 7,823,000 95.50 7,016,882 7,095,821 98.89 6,694,171 7,593,202 88.16
(Million Rupiah)
Net Profit
1,663,699 1,736,000 95.84 1,643,096 1,610,420 102.03 1,400,365 1,651,521 84.79
(Million Rupiah)
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Comparison of Portfolio Targets and Performance, Financing Targets, or Investments in
Financial Instruments or Projects that are Aligned with Sustainable Finance [POJK F.3]
Avian Brands is committed to contributing to sustainable As part of its green initiatives, Avian Brands continues its
finance and environmental protection. In order to tree-planting program involving employees and the
achieve this objective, Avian Brands has set clear targets surrounding community. Avian Brands targeted to plant
for investment in green projects that are aligned with 5,000 trees in 2024, bringing the accumulative number of
sustainability principles. trees planted to 15,000, as of the reporting year. The program
is expected to improve air quality and support biodiversity
In 2024, we have invested IDR733.44 million of the in local areas, as well as to strengthen the relationship
total operating expense (opex) in projects that support between Avian Brands, its employees, and the communities
sustainability, which include solar panel installation, in preserving nature.
tree planting, and developing Green Label products. We
have also allocated IDR3.48 billion of our total capital Avian Brands is also committed to using environmentally
expenditure (capex) budget for electric forklift procurement friendly raw materials in its manufacturing activities.
program. In this Sustainability Report, we spotlight the In 2024, Avian Brands successfully increased the proportion
performance of Avian Brands’ portfolio in line with these of environmentally friendly raw materials to 56.30% of the
targets, demonstrating Avian Brands’ achievements in total raw material usage. This complements the efforts of
implementing green initiatives. The green project conducted Avian Brands to minimize the environmental impacts of its
throughout 2024 involved the installation of solar panels products.
aimed at reducing dependence on fossil energy sources
and reducing carbon emissions. In 2024, Avian Brands Through these projects, Avian Brands not only invests in
successfully reduced Scope 1&2 GHG emissions by 15.99% sustainability, but also contributes to the development of
through energy efficiency efforts and the use of renewable the green economy. We constantly monitor and evaluate the
energy. performance of Avian Brands’ portfolio to ensure that Avian
Brands meets its established targets and remains committed
to contributing to a sustainable future.
Distribution of Economic Performance [GRI 3-3, 201-1]
The operational and financial performance achievements that Avian Brands managed to accomplish, have greatly impacted
the distribution of direct economic value to various stakeholders. Avian Brands ensures that these benefits are distributed
through timely payment of employee salaries, tax remittances to the government, dividends to Shareholders, and purchases
to suppliers that support the local economy. In addition, Avian Brands also allocates funds for social and environmental
responsibility programs as a testament to its commitment to community welfare and environmental protection.
With this approach, we endeavor to generate extensive and sustainable added value to ensure that all relevant parties benefit
from Avian Brands’ performance. Information regarding Avian Brands’ economic distribution value over the last 3 years is
described as follows:
(in millions Rupiah, unless otherwise stated)
Description 2024 2023 2022
Direct Economic Value Generated
Cash Received from Customers 7,229,124 6,850,984 6,781,888
Other Receipts 31,003 12,664 11,601
Receipts of Finance Income 291,459 308,589 302,422
Proceeds from Disposal of Fixed Assets 11,156 14,094 16,398
Total Direct Economic Value Generated 7,562,742 7,186,331 7,112,309
Distributed Economic Value
Payments to Suppliers 4,625,552 4,341,998 4,598,330
Payments to Employees 779,291 707,405 659,079
Payment for Corporate Income Tax 380,615 482,000 377,003
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(in millions Rupiah, unless otherwise stated)
Description 2024 2023 2022
Dividend Payment to Shareholders 1,348,142 1,362,978 1,115,164
Acquisition of Right-of-Use Assets 39,600 69,588 66,285
Payment of Lease Liabilities 24,758 58,836 25,374
Payment of Interest Expense 2,539 4,077 6,463
Expenses for the Community 2,344 1,995 1,978
Environmental Expenses 1,293 1,059 1,524
OHS Investment Cost 1,307 886 841
Total Distributed Economic Value 7,205,441 7,030,822 6,852,041
Retained Economic Value 357,301 155,509 260,268
Financial Implications and Contribution to the Government [GRI 207-1]
Other Risks and Opportunities Caused by
Climate Change [GRI 201-2] Taxes play a vital role as a country’s main source of revenue,
collected from taxpayers to support various national needs,
Climate change and global warming are major challenges such as infrastructure development, provision of subsidies,
with far-reaching impacts on various industry sectors, and essential public facilities. For Avian Brands, paying taxes
including on Avian Brands’ business. Despite minimal is more than just a legal obligation, but also a commitment to
direct impacts on the operations of Avian Brands, take part in supporting national development and ensuring
the risk of disruption remains, notably to the product far-reaching benefits for the society. Avian Brands refers to
distribution chain, in particular for inter-island shipments. the provisions of taxation laws and regulations applicable
Weather uncertainty due to climate change may cause in Indonesia, including Law No. 7 of 2021 on Harmonization
distribution delays that could potentially affect the of Tax Regulations (Harmonisasi Peraturan Perpajakan or
operational and financial performance of Avian Brands. “HPP”) and Law No. 11 of 2020 on Job Creation. Avian Brands
recognizes the significant power of taxes to achieve the
As an anticipatory measure, Avian Brands has developed Sustainable Development Goals. Therefore, Avian Brands
mitigation strategies to minimize extreme weather-related is consistently committed to contributing to government
disruptions. Avian Brands also perceives climate change efforts, both at the national and local levels, through proper
as an opportunity to adopt more sustainable practices, payment of taxes in accordance with the regulations.
with a focus on improving operational efficiency and [GRI 3-3]
innovations that can provide added value to stakeholders.
Through this approach, Avian Brands not only seeks to To manage this properly, Avian Brands has established a
minimize climate-related risks, but also contributes to Taxation Unit under the supervision of the Finance Director.
global efforts to mitigate the impacts of climate change. This unit is responsible for ensuring accurate and timely
Avian Brands’ commitment to mitigating the impacts of fulfillment of all Avian Brands’tax obligations, which are in line
climate change is further described in the Environmental with its business activities. We also engage a tax consultant,
Management section of this Sustainability Report. cooperating with Avian Brands as a strategic partner.
The consultant helps ensure that Avian Brands remains
informed of the latest developments in tax regulations and
Financial Assistance Received from properly implements those regulations. In addition, Avian
the Government [GRI 201-4] Brands regularly conducts internal and external audits to
verify tax compliance, in order to maintain transparency
Throughout 2024, no financial assistance was received by and integrity in every transaction. Avian Brands has also
Avian Brands in any form any government for any operations. established a whistleblowing mechanism to address
In addition, there was no government involvement in any potential tax-related violations or unethical conduct.
form in Avian Brands’ shareholding structure. [GRI 207-2]
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Tax-related Stakeholder Engagement [GRI 207-3]
Avian Brands consistently strives to maintain close communication with tax authorities through regular consultations and
discussions. This aims to collect valuable feedback, ensure that Avian Brands’ understanding of tax regulations remains
accurate, and validate that its tax practices comply with applicable laws. This allows Avian Brands to minimize potential errors,
improve compliance, and ensure correct and accurate fulfillment of all tax obligations. This proactive approach also helps us
identify and anticipate regulatory changes, allowing Avian Brands to continue its operations with the highest standards of tax
transparency and responsibility.
Tax Reporting [GRI 207-4]
In relation to tax obligations, Avian Brands only operates in the Indonesian territory with no overseas branches or operational
offices. Therefore, all Avian Brands’ tax obligations and reporting are focused on the Indonesian jurisdiction. This ensures full
compliance of all taxation activities with applicable national rules and regulations. The taxes paid by Avian Brands for the last
3 years are described as follows:
(in million Rupiah, unless stated otherwise)
Description 2024 2023 2022
Income Tax 741,678 696,167 548,133
Land and Building Tax 2,116 2,015 1,935
Value Added Tax 369,131 382,045 323,882
Total Tax Payments 1,112,925 1,080,227 873,950
Indirect Economic Contribution
In addition to direct economic contribution through the distribution of economic value, Avian Brands also emphasizes the
importance of providing indirect economic impact to stakeholders. We realize this commitment by involving local communities
in the operational activities of Avian Brands. We focus on empowering the local workforce by prioritizing residents around our
operational areas for employment opportunities. We also establish partnerships with local suppliers who meet our standards
and criteria. Through this initiative, Avian Brands hopes to continue supporting local economic growth while strengthening
relationships with communities and business partners around Avian Brands, to reflect its dedication to more inclusive and
sustainable economic development. [GRI 3-3]
Local Labor Empowerment in Avian Brands Business [GRI 203-2, 413-1] [POJK F.23]
As a stakeholder in Avian Brands’ business activities, the environment, Avian Brands actively empowers the local
local community has a role in supporting the sustainability workforce by providing employment opportunities in
of Avian Brands’ business. We understand positive impacts accordance with established standards and criteria. In doing
on the surrounding community not only reinforce positive so, Avian Brands not only contributes to the economic
relationships with Avian Brands but also contribute to growth of the surrounding communities, but also helps
the long-term success of Avian Brands. In its effort to create a better and more sustainable future for them.
support social and economic growth in the surrounding
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This initiative reflects Avian Brands’ dedication to integrating social aspects into its business strategies, while strengthening
mutually beneficial relationships with local communities. We believe that empowering local communities is key to generating
broad positive impacts that support Avian Brands’ business objectives while improving the quality of life in the communities
in its vicinity.
As part of Avian Brands’ commitment to empowering the local workforce, we also involve workers from the local community in
the organizational structure. As of the end of the reporting period, 90.03% of employees are local workers. This demonstrates
the efforts of Avian Brands to empower local human resources and strengthen relationships with surrounding communities.
[GRI 202-2]
Information regarding the involvement of local labor in Avian Brands’ operational activities is described as follows:
Proportion of Local Labor Involvement
Description Unit 2024* 2023* 2022*
Total Local Employees People 8,387 7,577 7,231
Total Employees People 9,316 8,477 8,076
Percentage of Local Employees % 90.03 89.38 89.54
Notes:
* AVIA, TKTW, and TKBI.
Investment in Infrastructure and Support Services [GRI 203-1]
Avian Brands is committed to contributing to infrastructure In supporting the local economy, Avian Brands also actively
development and the provision of services that support provides capital assistance and training to Micro, Small, and
the welfare of the community and environment around its Medium Enterprises (“MSMEs”) in Wadungasih Village. The
operational areas. Through the Avian Brands Peduli program, program aims to improve the economic independence and
Avian Brands has implemented various initiatives that welfare of local communities by providing them with the
positively impact local communities. necessary skills and resources to develop their businesses.
As part of this commitment, Avian Brands has constructed a Avian Brands believes that investment in infrastructure
waste bank in Wadungasih Village. The construction of this and support services is a key element in achieving long-
waste bank is intended to manage and recycle waste, thus term sustainability. Through various programs and
reducing the volume of waste that ends up in landfills. In initiatives, Avian Brands is committed to continuing its
addition, waste banks also function as educational centers support of inclusive and sustainable development, as well
for the community on the importance of sustainable waste as improving the quality of life of the communities around
management. its operational areas.
In the educational sector, Avian Brands has provided painting
support to numerous schools, mosques, and other public
facilities. This initiative not only enhances the aesthetics
and comfort of public facilities but also promotes a better
and healthier environment for the community. Through
this program, Avian Brands seeks to improve the quality of
educational and religious facilities and infrastructure, which
in turn can provide long-term benefits to local communities.
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Responsible
Environmental
Management
“We constantly implement a responsible
environmental approach in all of
Avian Brands’ operations, as part of
our efforts to contribute to supporting
environmental preservation and
sustainability of future livelihoods.
By focusing on efficiency and management
of energy, resources, emissions, waste and
biodiversity conservation, Avian Brands is
committed to reducing its environmental
impacts through sustainable initiatives.
This approach also ensures that Avian Brands
can strike a balance between business
growth and environmental preservation.”
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Avian Brands Achievements [GRI 3-3]
Avian Brands successfully achieved the Green PROPER award, making it the only paint company that has
received this award for 3 consecutive times since 2022 until 2024.
A total of 2,731.09 tons of sludge and returned paint was recycled, an increase of 45.08% compared to
the previous year.
The use of renewable energy reached 2,013.12 GJ, an increase of 10.93% compared to the 2021 baseline.
Groundwater use for plant operations decreased by 11.13%, with water intensity reaching
0.0007 megaliters/ton of water-based products.
A decrease of 15.95% in the volume of waste generated, compared to the previous year.
Environmental Impact Management Strategy
Environmental degradation and climate change, the impacts of which are increasingly evident, have become a major
challenge faced by the global community, including Indonesia. The growing frequency of hydrometeorological disasters,
such as droughts, floods, storms, forest fires, El Niño, La Niña, and landslides, reflects the devastating impacts of climate
change triggered by irresponsible human activities. Large-scale exploitation of natural resources, deforestation threatening
the role of forests as the lungs of the earth, and industrialization that drives up GHG emissions, all contribute to this condition.
[GRI 3-3]
Aware of this increasingly real impact, Avian Brands Through the Sustainability Policy that has been
understands that all stakeholders’ participation in formulated by Avian Brands, we actively strive to integrate
environmental preservation is crucial. As part of its sustainability principles into all aspects of Avian Brands’
responsibility, Avian Brands continues to strengthen its operations. The concrete steps we are taking include
resolve and commitment to reduce adverse environmental the use of environmentally friendly materials, improved
impacts of its operational activities and respond to energy efficiency and reduced GHG emissions, as well as
climate-related challenges with proactive measures. Avian responsible waste management and use of resources. We
Brands is committed to taking part in protecting the also continuously evaluate and improve our environmental
ecosystems that support sustainable life on earth, which is policies and procedures, ensuring that every innovation
essential for long-term business viability. Every operational we produce not only meets industry standards, but
step taken by Avian Brands always considers environmental also contributes to environmental conservation efforts.
protection and preservation aspects, in accordance with In doing so, we aspire to not only meet our environmental
applicable laws and regulations. Beyond that, we also obligations, but also to become a pioneer in sustainable
continue to encourage innovation and development business practices that provide long-term benefits to the
of environmentally friendly products, as a tangible ecosystem and the community. [GRI 3-3]
manifestation of Avian Brands’ commitment to reducing our
ecological footprint and making positive contributions to
global efforts in environmental conservation. [GRI 3-3]
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Environmental Management [CDSB REQ-01]
We are aware that every stage of Avian Brands’ product manufacturing and distribution activities comes with direct and indirect
environmental impacts, particularly in terms of the use and management of natural resources that produce GHG emissions.
In order to manage these challenges, Avian Brands has an Environmental Management Committee in place, tasked with
ensuring that every operational step is consistent with sustainability principles and complies with environmental regulations.
This committee constantly monitors, assesses and formulates environmental management strategies to minimize adverse
impacts and improve Avian Brands’ positive contribution to environmental conservation. More detailed information about
Avian Brands’ environmental impact management structure is described as follows:
Organizational Structure of The Environmental Management Committee
Committee Chairman
Water Efficiency GHG &
Environmental Non-Hazardous
Energy Efficiency Hazardous Waste and Pollutant Conventional Life Cycle Biodiversity
Management Waste Solid
Team 3R Team Load Reduction Emissions Assessment Team Protection Team
System Team Waste 3R Team
Team Reduction Team
Environmental Water Efficiency
Hazardous Non-Hazardous GHG & Conventional Biodiversity
Management and Water Pollutant Environmental
Energy Manager Waste Reduction Solid Waste 3R Emissions Reduction Protection
System Load Reduction
Coordinator
Manager
Coordinator Coordinator Coordinator
Coordinator
Coordinator
Water Efficiency
Environmental Hazardous Waste Non-Hazardous GHG & Conventional Life Cycle Biodiversity
and Water Pollutant
Management System Energy Auditors Reduction Team Waste Solid Waste Emissions Reduction Assessment Team Protection Team
Load Reduction
Team Members Members 3R Team Members Team Members Members Member
Team Members
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Avian Brands continuously ensures that every employee responsible for environmental management possesses the relevant
skills and expertise. We prioritize this commitment to ensure that Avian Brands’ operations are able to minimize adverse
environmental impacts. In addition to delegating environmental management responsibilities to competent organs,
Avian Brands has also consistently implemented a sustainable and comprehensive environmental management system.
At Avian Brands’ manufacturing facilities, the implemented Environmental Management System has complied with the
international standard of ISO 14001 and has been verified by an independent certification body since 2012. This standard
ensures that Avian Brands’ manufacturing operations not only comply with applicable regulations but also fulfill international
best practices. This initiative reflects Avian Brands’ long-term commitment to maintaining a balance between business
sustainability and environmental preservation, as illustrated in the following environmental management policy:
Avian Brands Environmental Management Policies
Formulating and implementing short-term, medium-term, and long-term goals, objectives, and programs
1 by taking into account the characteristics, scale, and impact in accordance with the environmental
management system, energy management system, and green industry, while continuously innovating.
2 Improving quality, competitive, and environmentally friendly products with efficient production costs.
Improving service quality, ensuring timely product delivery, meeting customer demands, and providing
3
added value for customers.
Opting for materials and machinery with efficient energy use and low greenhouse gas effects for
4
manufacturing processes.
Carrying out energy efficiency efforts and maximizing the use of new renewable energy through monitoring,
5
implementing, and encouraging design or development activities across the entire Avian Brands.
Undertaking efforts to reduce greenhouse gas emissions for scopes one and two through monitoring and
6
implementation across the entire Avian Brands operations, up to the reporting to stakeholders.
7 Encouraging the use of renewable materials and environmentally friendly chemicals.
Implementing raw material efficiency through monitoring, implementing, and encouraging design or
8
development activities across the entire Avian Brands.
Using water optimally and efficiently for company activities, as well as carrying out water conservation
9
programs.
10 Conducting maintenance and control of air pollution control equipment and machinery.
11 Reducing and controlling Hazardous Material and Hazardous Waste.
12 Controlling non-hazardous solid waste through 3R (Reduce, Reuse, Recycle).
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Conducting an inventory of water usage, outlets of wastewater, hazardous waste and non-hazardous
13
waste, and air pollution.
14 Undertaking efforts to protect and conserve biodiversity.
15 Providing socialization of information related to the safety and security of product application.
Identifying, conducting, and evaluating all company activities through Life Cycle Assessment (“LCA”)
16
integrated with environmental, energy, and greenhouse gas emission aspects.
17 Involving the community in continuous improvement of the environmental management system.
Avian Brands constantly carries out environmental management in a comprehensive manner. As a starting point, Avian Brands
ensures compliance with the necessary licenses from the start of the business through the preparation of Environmental
Management Efforts and Environmental Monitoring Efforts (Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan
Lingkungan Hidup or “UKL-UPL”) report. Avian Brands remains committed to complying with all existing environmental permits
and conducts periodic reviews to stay on track with the environmental programs to be implemented. Similarly, Avian Brands
ensures that each operational unit, such as plants, warehouses and offices, has implemented measures to prevent adverse
environmental impacts by integrating eco-efficiency principles into relevant processes as part of continual improvements.
In addition, Avian Brands conducts a cradle-to-grave Life Cycle Assessment(“LCA”), which analyzes the entire product life cycle
from the acquisition of raw materials to its use and end-of-life. Results from the LCA provide valuable data on environmental
impacts along the supply chain, which forms the basis for developing more effective environmental management strategies.
The LCA also provides support to Avian Brands in its environmental performance assessment through the PROPER,
an environmental evaluation program managed by the Ministry of Environment and Forestry of the Republic of Indonesia.
In addition to preventive measures, we also implement mitigation measures, such as planting trees to reduce our carbon
footprint, as well as energy and emission efficiency programs that showcase Avian Brands’ commitment to environmental
sustainability. [GRI 3-3]
Evaluation of Environmental Management
Environmental management implemented by Avian Brands is also regularly evaluated, to ensure the effectiveness and
continuity of the programs. This process involves monitoring environmental quality at manufacturing facilities in collaboration
with accredited environmental testing laboratories. Results thereof are periodically reported to both local and central
governments, every month and every semester, to ensure compliance with applicable laws and regulations as well as with the
internal policies of Avian Brands.
In addition, Avian Brands participates in the Public Disclosure Program for Environmental Compliance (Program Penilaian
Peringkat Kinerja Perusahaan dalam Pengelolaan Lingkungan Hidup or “PROPER”) organized by the Ministry of Environment
and Forestry (“MoEF”). The PROPER provides an assessment of Avian Brands’ environmental performance based on applicable
regulations, with the assessment results as a rating. This assessment process is conducted by external professionals,
ensuring an objective assessment of Avian Brands’ environmental performance in accordance with established standards.
In the 2024 financial year, Avian Brands successfully achieved the Green PROPER award, making it the only paint company
that has received this award for 3 consecutive times since 2022 until 2024. In recognition of this achievement, Avian Brands is
also listed as a Gold Candidate under the Decree of the Director General for Pollution and Environmental Degradation Control
No. 166 of 2024. Avian Brands is committed to maintaining and improving this PROPER rating, which reflects its dedication to
meeting environmental compliance standards. [GRI 3-3]
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Materials Used in Paint Production
Some of the materials used by Avian Brands in its paint production process are chemicals with adverse environmental impacts.
Therefore, we take a holistic approach in selecting and using the materials to ensure the sustainability and quality of Avian
Brands’ products. In general, the materials used are divided into two main categories, namely renewable and non-renewable
materials. Renewable materials used by Avian Brands include calcium, paper-based or cardboard-based packaging materials,
and plant-based materials and additives. On the other hand, non-renewable materials include solvents, pigments, and various
plastic-based products. Avian Brands recognizes that improper management of these materials can adversely impact the
environment. Therefore, Avian Brands is committed to reducing dependence on non-renewable raw materials. By the end
of 2024, Avian Brands successfully increased the use of environmentally friendly raw materials to 56.30% of the total raw
materials. Another strategy implemented by Avian Brands is to improve raw material efficiency through efforts to reduce waste.
[GRI 3-3] [POJK F.5]
In the manufacturing process, Avian Brands continuously Apart from efficiency measures, responsible material use
strives to implement sustainable processes by using more is complemented by a waste reuse program. Avian Brands
environmentally friendly materials without compromising has implemented the reuse of sludge of water-based
on quality. This initiative aims to produce high-quality paint for manufacturing processes in the same cycle.
products that contribute to environmental protection. This initiative is part of its commitment to minimize hazardous
Among the concrete steps Avian Brands has taken is the waste. In 2024, Avian Brands successfully recycled 2,731.09
implementation of a packaging efficiency program that tons of sludge and returned paint, an increase of 45.08%
aims to reduce waste generated by Avian Brands. Packaging compared to 2023. This amounts to a material recycling
efficiency efforts are carried out by reducing the grammage ratio of 16.97 kg per ton of paint production. Avian Brands
and size of packaging, switching to lighter and stronger has also initiated the process of recycling solvent washes in
packaging materials, and reducing the use of cardboard manufacturing solvent-based paints, accounting for 151.19
and plastic. The packaging efficiency programs successfully tons as raw materials, with a recycling ratio of 5.27 kg per ton
implemented by Avian Brands in 2024 are described as of solvent-based paint production. Through the program,
follows: Avian Brands successfully reduced hazardous waste disposal
1. Reducing plastic jerry can weight by 13.33%; by 17.23%, confirming its commitment to more sustainable
2. Replacing toxical shrink material made from PVC with and environmentally friendly waste management.
non-toxic material and reducing weight by 46.52% in VIP [GRI 3-3, 301-2, 301-2]
Remover 1kg, 250g, and Viplas 360g products;
3. Reducing paper usage in Avian Non Sag Epoxy and In parallel, we have also reduced lead and chrome content
Suzuka Epoxy Filler products by 26.47%; as well as in Avian Brands’ products. By the end of 2024, only 10.40%
4. Replacing the inner box material with shrink film, of lead and chrome content remain in the products.
thereby reducing weight by 94.44% in Avian Non Sag This achievement reflects positive developments in Avian
and Avian Epoxy Filler products. Brands’ innovation towards lead-free and chrome-free
products, which is also encouraged by the launch of
The above efforts succeeded in reducing the use of water-based products. This step not only improves product
packaging by 39.08 tons or 33.78%, with cost savings of safety standards, but also strengthens the contribution of
IDR1.40 billion. Packaging efficiency and the addition of Avian Brands to environmental protection and public health.
environmentally friendly materials are consistently carried
out. These measures reflect Avian Brands’ commitment
to reducing environmental impacts from manufacturing
activities and underscore its dedication to responsible and
environmentally friendly operations.
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Information on the use of materials in the paint manufacturing process is described below:
Types and Volumes of Main and Supporting Materials for Paint Manufacture [GRI 301-1]
Material Type Unit 2024 2023 2022
Renewable Materials Ton 89,589.48 72,903.20 61,888.17
Non-renewable Materials Ton 69,528.10 70,887.41 74,937.20
Total Purchase of Materials Ton 159,117.58 143,790.61 136,825.37
Material Reuse by Product Type
Sludge & Return Paint
2,731.09
2024 2023 1,882.53
Ton
2022 2,567.74
Washing Solvent
151.19
2024 2023 166.27
Ton
2022 180.87
Material Reuse Ratio by Product Type
Sludge & Return Paint
16.97
2024 2023 11.91
Kg/Ton of Products
2022 17.08
Washing Solvent
5.27
2024 2023 5.68
Kg/Ton of Solvent-Based Products
2022 5.81
Ratio of Renewable Material Usage
56.30
% 2024 2023 50.70%
%
2022 45.23%
Ratio of Recycled Material Usage [GRI 301-2]
1.81%
% 2024 2023 1.42%
2022 2.00%
Percentage of Products Containing Genetically Modified Organisms [SASB RT-CH-410c.1.]
We confirm that as of the end of the reporting period, no Avian Brands products contain genetically modified organisms
(GMOs). We are committed to providing our customers with safe and high-quality products, and upholding transparency
regarding the composition of materials used in Avian Brands’ products.
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Energy Efficiency
Avian Brands uses energy to support a wide range of powered heavy equipment consisting of forklift,
activities, from manufacturing to office operations. At reachtruck, counterbalance, and pallet mover as part of
manufacturing facilities, energy is needed to run machinery its commitment to using environmentally friendly heavy
and equipment, while in the offices, energy is used for equipment. In addition, Avian Brands has also conducted
lighting and various electronic devices. Avian Brands’ switching of incinerators and burners so that energy
primary energy sources are electricity, fuel oil (bahan usage becomes more efficient. It has also modified the
bakar minyak or “BBM”) and gas obtained from third-party cooling tower pumps to optimize energy usage. As a result,
providers. Avian Brands recognizes that these are largely Avian Brands managed to reduce energy usage in the
non-renewable fossil energy sources with increasingly cooling tower by 39.39%, which also resulted in operational
limited availability in nature. Therefore, Avian Brands is expense savings of up to IDR526.83 million in 2024. These
committed to wisely managing energy use and considering efforts not only reduce energy usage but also improve our
the environmental impacts of these energy sources. overall operational efficiency, which is in line with Avian
[GRI 3-3] Brands’ commitment to implementing sustainable practices.
[GRI 3-3, 302-4] [POJK F.7] [SASB RT-CH-110a.2.]
In anticipating challenges related to the limited availability
of non-renewable fossil energy sources, Avian Brands is The energy management and efficiency of Avian Brands
focusing on energy efficiency and transition to renewable are regularly monitored and evaluated by the Board
energy sources. Avian Brands’ energy efficiency initiatives of Directors through structured performance reports.
include the installation of transparent fiber roofs in Since 2022, Avian Brands has been certified with ISO
manufacturing facilities and warehouses, to harness 50001:2018 for Energy Management Systems, ensuring
sunlight for daytime lighting, as well as the use of solar- that its energy management is always monitored while
energy powered street lighting. In the manufacturing energy efficiency efforts are maximized. In this regard, Avian
process, Avian Brands has switched to the pipeline system Brands has implemented an energy efficiency monitoring
for material transfer from the resin manufacturing facility program through energy performance indicators, i.e., the
to the paint manufacturing facility. Avian Brands has also Energy Performance Indicators (“EnPi”), which involves the
reduced the use of forklifts by switching to using a rail Energy Management System Team as the officer in charge.
conveyor that is connected directly to the solvent-based The calculation of energy use employs a sophisticated
paint manufacturing facility, in the process of moving method of multiplying physical energy use by the
can plates. The use of conveyor significantly saves 4,302 calorific value of each energy source, such as gas, diesel
liters of diesel fuel energy and reduces GHG emissions and electricity. Results thereof are compiled to provide
by 11.53 tonsCO2e per year. In addition, Avian Brands has a comprehensive overview of energy use. Avian Brands
conducted a re-layout of the finished goods warehouse also conducts regular monthly meetings to discuss and
and materials warehouse at the Sidoarjo paint plant to evaluate the results of EnPi performance reporting, as well
improve distribution efficiency. Re-engineering of the as anticipate possible increases in energy use. Another effort
resin plant processes has also succeeded in reducing made by Avian Brands is to develop a digitally integrated
cycle time by approximately 22%, thereby increasing data information system, namely the Avian Portal, that is
productivity and reducing energy use and GHG emissions. immediately accessible to all relevant employees. Among
[GRI 3-3, 302-4] [POJK F.7] the system’s many features is ESG data, which is updated
in real-time to track environmental, social and economic
Specifically at the Sidoarjo plant, Avian Brands has sustainability performance on a regular basis. This approach
implemented various other energy efficiency measures. allows Avian Brands to accurately monitor energy use and
Avian Brands has replaced diesel forklifts with 6 units of identify areas for improvements to increase efficiency.
electric forklifts (5 units at the Sidoarjo plant and 1 unit [GRI 3-3, 302-1, 302-4]. [POJK F.7]
at the Serang plant). This effort succeeded in reducing
GHG emissions by approximately 5.72 tonsCO2e per year. The formula used by Avian Brands to calculate total energy
By 2024, Avian Brands has owned 43 units of electric use is described as follows:
Energy Conversion from Physical Units to TerraJoules (“TJ”)
Σ Energy Use (TJ) = Energy Use (physical unit) x Calorific Value (TJ/physical unit)
Source:
Guidelines for the Implementation of the National Greenhouse Gas Inventory Book II-Volume 1 Methodology for Calculating Greenhouse Gas Emission Levels
(Energy Sourcing and Use Activities).
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Based on this methodology, information on Avian Brands energy use in all operational activities is described below:
Energy Usage [GRI 302-1] [POJK F.6] [SASB RT-CH-130a.1.]
Material Type Unit 2024 2023 2022
kWh 14,753,041.67 14,208,160.98 13,707,962.04
Electricity**
GJ 53,110.95 51,149.38 49,348.66
Fuel Oil (Bahan Bakar Minyak or BBM) (Diesel)*** GJ 112,739.10 119,202.34 118,502.42
Gas**** GJ 43,495.72 43,561.14 43,483.43
Renewable Energy (Solar Panel)**** GJ 2,013.12 1,814.71 906,82
Total Energy Usage GJ 211,358.89 215,727.57* 212.241,33*
Notes:
* Data restated.
** 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 TKTW; and
**** Gas and solar panel use within the scope of AVIA (Sidoarjo Plant and Serang Plant).
Energy Intensity [GRI 302-3] [POJK F.6]
2024 GJ/Ton Product 2024 kWh/Ton Product
0.17 47.20
2023 0.18* 2023 49.74*
2022 0.19 2022 52.18*
The above energy intensity data is measured by dividing AVIA’s total energy use (Sidoarjo Plant and Serang Plant) by total production.
Energy Intensity Efficiency [GRI 302-3] [POJK F.6]
2024 GJ/Ton Product 2024 kWh/Ton Product
0.01 2,54
2023 0.01* 2023 2.44*
4,74
2022 0.01* 2022 0,50
0.46*
Percentage of Energy Intensity Efficiency in 2024 compared to 2021 Baseline
[GRI 302-3] [POJK F.6]
10.33% kWh/Ton Product
Notes:
* Data restated.
We are committed to improving energy efficiency in all operational aspects of Avian Brands, including product manufacturing
and provision of services. Throughout the reporting year, we have successfully implemented several initiatives designed to
reduce the energy consumption needed for Avian Brands’ products.
Avian Brands has consumed 211,358.89 GJ of energy, a decrease of 2.03% compared to the previous year. Based on this,
Avian Brands managed to calculate the total energy use intensity for the 2024 financial year in the amount of 0.17 GJ/ton of
product or 47.20 kWh/ton of product. Thus, the energy intensity efficiency that Avian Brands achieved for 2024 increased by
10.33% kWh/ton of product compared to the 2021 baseline.
To promote innovations in energy efficiency, Avian Brands has an Internal Improvement Initiatives (“I3”) program. Through
this program, Avian Brands motivates employees to continuously innovate in energy efficiency to promote sustainable energy
transformation. We have also conducted socialization with employees to raise awareness of energy efficiency and integrate
energy reduction strategies into the daily operational processes of Avian Brands.
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Through these initiatives, we are committed to continuously improving energy efficiency, in order to continue promoting
sustainability and reducing the environmental impacts of Avian Brands’ operations.
Energy Consumption Outside the Organization [GRI 302-2]
We understand the significance of monitoring and managing energy consumption that occurs outside the boundaries of
Avian Brands’ organization. In this regard, the energy consumption outside the organization relates to Scope 3 emissions
that affect energy consumption of Avian Brands. Up to the end of the reporting period, Avian Brands has calculated energy
consumption outside the organization which is limited to two categories, namely upstream transportation and distribution,
as well as downstream transportation and distribution. In 2024, energy consumption outside Avian Brands organization was
recorded at 119,167.55 GJ with the largest percentage coming from the downstream transportation and distribution category,
amounting to 108,808.18 GJ or 91.31% of the total.
Since 2023, Avian Brands has initiated the mapping and inventory of Scope 3 emissions. Avian Brands also actively
engages with suppliers and distributors through socialization, training and audits that focus on sustainable procurement.
We are committed to collaborating with Avian Brands’ suppliers and partners to reduce energy consumption outside the
organization through energy efficiency initiatives and the use of renewable energy sources. These initiatives aim to ensure
that the entire supply chain embraces sustainability practices, and promotes emission reductions at all stages of operations.
Usage of Renewable Energy [POJK F.7] [SASB RT-CH-130a.1.]
As part of Avian Brands’ commitment to implementing sustainable manufacturing practices, not only do we focus on energy
use efficiency, but we are also gradually shifting to the use of renewable energy sources. This measure aims to reduce GHG
emissions, reduce dependence on fossil energy sources, and minimize other adverse environmental impacts. Avian Brands
has utilized new renewable energy in the form of solar panels as one of its energy sources. In 2024, the total use of new
renewable energy reached 2,013.12 GJ, an increase of 201.82% compared to the 2021 baseline. In 2024, Avian Brands increased
the installation of solar panels by 1,052 units on the roofs of warehouses (862 at the Sidoarjo Plant and 190 at the Serang Plant),
potentially generating 61,808.72 kWh of energy capacity per month. This initiative contributes to reducing GHG emissions by
645.24 tonsCO2e per year which is equivalent to planting 29,329 trees. In light of these positive results, we plan to increase
solar panel installations in the coming years to increase the proportion of renewable energy use and reinforce Avian Brands’
commitment to environmental sustainability.
Avian Brands also has a long-term target plan by a purchasing Renewable Energy Certificate (“REC”) to support
the medium-term goal of 50% emission reduction by 2030 and achieving a Net Zero Emission Roadmap by 2050.
Information on Avian Brands’ renewable energy usage is described below:
Usage of Renewable Energy from Solar Power, Hydropower, and Others*
2,013.12
GJ 2024 2023 1,814.71
2022 906.82
* Renewable energy use within the scope of AVIA (Sidoarjo Plant and Serang Plant).
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Water Usage
Water is essential in supporting various operational As part of responsible water usage, Avian Brands has
activities of Avian Brands. From the manufacturing process continuously implemented various water efficiency
to other supporting activities, the need for water is integral. programs. Among its main programs is reusing used
To meet its water needs, Avian Brands relies on 2 main water for other purposes. For instance, rinsing water
sources, i.e. water supply from third parties as well as water from tanks cleaning and sanitizing processes is reused as
extracted from underground wells at the manufacturing material in paint manufacturing, while still maintaining
site. Water usage for plant operations is mostly sourced high quality standards. In 2024, this effort succeeded in
from groundwater/ wells. The use of water from the wells reducing the use of new water by optimizing the reuse of
has obtained official permits from the local government industrial wastewater of 0.12 megaliters, equivalent
and complies with environmental requirements, thus to a usage ratio of 4.86 L/ton of water-based products.
causing no adverse impacts on the local ecosystem. Avian Brands has also implemented a cooling system
Avian Brands has also conducted an analysis of water risks as well as a rainwater harvesting system designed
through the WWF Water Risk Filter. Results thereof indicate to minimize water usage and reduce dependence
that Avian Brands’ sites, both at the Sidoarjo and Serang on conventional clean water supplies. To ensure
plants, are at very low and medium risk levels. This indicates effectiveness, Avian Brands uses a flowmeter to monitor
that Avian Brands does not consume water in areas with the water flow rate in the rainwater harvesting system,
high or very high water risks. [RT-CH-140a.1.] enabling more accurate and sustainable management.
[GRI 3-3, 303-1, 303-2] [POJK F.8] [SASB RT-CH-140a.3]
In 2024, groundwater use for plant operations
amounted to 88.27 megaliters, with water intensity reaching In addition, Avian Brands also continues to ensure that
0.0007 megaliters/ton of water-based product. This figure liquid waste is managed in accordance with applicable
represents a decrease of 11.13% compared to the previous standards and regulations. To manage domestic wastewater
year. Meanwhile, the use of water sourced from third parties at the paint manufacturing sites, Avian Brands has adopted
increased by 27.97%, approximately 38,05% of which was a Sewage Treatment Plant (“STP”) system. Meanwhile,
allocated for domestic activities. Avian Brands recognizes industrial wastewater is treated with filtration and ozonation
how vital water is to survival and the environment, which technology. Avian Brands also strictly monitors water
drives us to constantly strive to use water wisely. Our management through monthly testing conducted by
goal is to ensure that the operations of Avian Brands laboratories certified by KAN (Komite Akreditasi Nasional/
continue to emphasize innovations in water efficiency. National Accreditation Committee). Avian Brands reports
[GRI 3-3] [POJK F.8] such data to the relevant agencies on a monthly basis,
to ensure that wastewater does not exceed the specified
quality thresholds. Throughout 2024, Avian Brands did not
encounter any non-compliance incidents related to water
quality permits, quality standards, water consumption limits,
or other applicable regulations. In addition, Avian Brands has
also reported its water usage efficiency data through the Green
Industry Certificate (Sertifikat Industri Hijau or “SIH”) since
2022 from the Ministry of Industry of the Republic of Indonesia.
[GRI 3-3, 303-1, 303-2] [POJK F.8] [SASB RT-CH-140a.2.]
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Information on Avian Brands’s water usage in all operational activities is described as follows:
Water Usage and Intensity [GRI 303-5] [POJK F.8] [SASB RT-CH-140a.1.]
Water Source Unit 2024 2023 2022
Megaliter 88.27 99.32 79.25
Groundwater
m3
88,270 99,320 79,250
Third-Party (Perusahaan Daerah Air Minum Megaliter 54.21 42.36 34.73
or PDAM) m3 54,210 42,360 34,730
Megaliter 142.48 141.68 113.98
Total Water Usage
m3 142,480 141,680 113,980
Megaliter/Ton Product 0.0007 0.0008* 0.0008
Intensity of Water Usage
m3/Ton Product 0.75 0.81 0.80
* Data restated.
Water Disposal [GRI 303-4]
4.68
Domestic 2024 2023 3.71
Megaliter
2022 3.70
0.12
Industry 2024 2023 0.12
Megaliter
2022 0.44
Ratio of Industrial Wastewater Recycle
4.86
Liter/Ton of Water-Based Products 2024 2023 5.06
2022 5.22
Throughout 2024, Avian Brands has successfully ensured that the liquid waste it generated has complied with the quality
standards on all parameters as set out in the East Java Governor Regulation No. 52 of 2014 on Quality Standards for Paint
and Ink Industry Wastewater, as well as Regulation of the Minister of Environment and Forestry of the Republic of Indonesia
No. P.68/Menlhk/Setjen/Kum.1/8/2016 on Domestic Waste. The waste generated has been analytically tested by a laboratory
accredited by the National Accreditation Committee (Komite Akreditasi Nasional or “KAN”), ensuring that the testing process
is conducted to a precise and reliable standard. The certified laboratory test results are also reported to the Environmental
Electronic Reporting Information System (Sistem Informasi Pelaporan Elektronik Lingkungan Hidup or “SIMPEL”) managed by the
Ministry of Environment and Forestry (“MoEF”). Avian Brands’ compliance with quality standards is demonstrated by obtaining
the Green PROPER certificate for three consecutive years. Avian Brands will continue to conduct regular monitoring and
evaluation to ensure that the wastewater quality remains within the established threshold, in order to support environmental
sustainability.
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Emissions Management
Climate change, which is increasingly noticeable as Earth’s average temperature rises, poses a serious threat to future
survival. A major trigger of this phenomenon is global warming, largely caused by increased emissions of GHGs,
such as carbon dioxide. These emissions come from various human activities, including the use of fossil fuels, forest fires,
waste treatment and other industrial processes. As part of its global responsibility to tackle this challenge, the Indonesian
Government has established various policies and regulations, such as those set out in Presidential Regulation No. 61/2011 on
the National Action Plan for Reducing Greenhouse Gas Emissions (Rencana Aksi Nasional Penurunan Emisi Gas Rumah Kaca or
“RAN-GRK”), and Presidential Regulation No. 71 of 2011 on the Implementation of the National Greenhouse Gas Inventory.
[GRI 3-3] [CDSB REQ-04] [TCFD MET.c]
Commitment to Achieving Net Zero Emission and GHG Emission Efficiency
[GRI 3-3] [POJK F.12] [CDSB REQ-04] [TCFD MET.c]
Avian Brands is committed to supporting the government’s • Carrying out switching of incinerators and
efforts to reduce the amount of GHG emissions as part of burners to improve energy efficiency during the
awareness of contributing to GHG emissions. In Avian combustion process; and
Brands’ ESG Roadmap, the year 2050 has been set as the • Modifications to the cooling tower pumps to
target for achieving Net Zero Emission. In the roadmap, optimize energy usage in the cooling process.
Avian Brands commits to reduce its scope 1 and scope 2 D. Carbon Offset Program
GHG emissions by at least 95% from the predetermined Carrying out tree planting programs around
baseline. The commitment is realized through the following operational areas, including areas around the plant,
strategic steps:: TKTW areas, and the slopes of Mount Arjuno, as
1. Scope 1 Emissions part of carbon sequestration efforts and to support
Strategies implemented to reduce direct emissions from environmental conservation.
operational activities, include: 2. Scope 2 Emissions
A. Energy Efficiency: A. Transition to Renewable Energy.
• Installation of transparent fiber roofs in • Using solar panels as renewable energy sources
manufacturing facilities and warehouses, to to support the operations of manufacturing
harness sunlight for daytime lighting; facilities and offices; and
• The use of solar-powered street lighting to reduce • Planning to collaborate with clean energy
conventional electrical energy consumption; providers to ensure that a significant portion
and of the electricity usage comes from renewable
• Switch to the pipeline system, for material sources (Renewable Energy Certificate).
transfer from the resin manufacturing facility to B. Electricity Energy Efficiency
the paint manufacturing facility. Modernization of the lighting system by using
B. Operational Optimization energy-efficient LED lights in all operational facilities.
• Re-layout of the finished goods warehouse and
materials warehouse at the Sidoarjo paint plant Avian Brands realizes the implementation of these
to improve distribution efficiency, thus reducing strategies in the short and long term. In the short term,
the need for using forklifts; this commitment is realized through energy usage
• Re-engineering of the manufacturing process efficiency, such as operational optimization and adoption
of the resin plant, which successfully reduced of energy-saving technologies. For the long term,
operational cycle time that directly led to Avian Brands focuses on the transition towards renewable
reduced energy consumption; and energy, including the use of solar panels. Additionally,
• Using a rail conveyor, connected directly to the the tree planting program is also part of Avian Brands’
solvent-based paint manufacturing facility, in sustainable initiatives to sequester carbon, support
the process of moving can plates, thus reducing environmental conservation, and strengthen ecosystems
the use of forklifts. around operational areas. With these measures, Avian
C. Transition to More Efficient Technology Brands strives to make tangible contributions in supporting
• Replacing diesel forklifts with electric forklifts to environmental sustainability and achieving GHG emission
reduce fossil fuel emissions; reduction targets. [GRI 3-3] [POJK F.12] [TCFD MET.c]
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Moreover, we also conduct regular monitoring and evaluation of the emission levels within Avian Brands’ plant areas.
We designated 2021 as the base year for GHG emissions inventory, using digitized systems that facilitate monitoring and
reporting. Throughout the reporting year, Avian Brands has conducted comprehensive measurement of scope 1 GHG emissions,
originating from the use of fossil fuels, as well as scope 2 emissions, originating from electricity supplied by the State Electricity
Company (Perusahaan Listrik Negara or “PLN”). Thanks to its energy efficiency efforts and initiatives, Avian Brands succeeded
in reducing Scope 1&2 GHG emissions by 15.99% compared to the 2021 baseline. Emissions measurement is conducted in
accordance with international methods and standards, to ensure accuracy and compliance with applicable regulations, as
described below: [GRI 3-3, 305-1, 305-2] [CDSB REQ-04]
Scope 1 Greenhouse Gas Emissions
Σ Emission = Fuel Consumption (liter) x Emission Factor (Kg/Tj)2) x NCV (Tj/liter)
Scope 2 Greenhouse Gas Emissions
Σ Emission = Electricity Consumption (kWh) x Emission Factor (kgCO2/kWh)
In addition to Scope 1 and 2 GHG emissions efficiency efforts, Avian Brands has also undertaken various efforts to reduce
Scope 3 GHG emissions gradually and consistently over the long term. Avian Brands has started mapping the relevance of
Scope 3 GHG emission categories in accordance with the GHG Protocol document: Technical Guidance for Calculating
Scope 3 Emissions and Carbon Disclosure Project (“CDP”) Technical Note. The measured Scope 3 emissions include category 1
(purchased goods and services), category 4 (upstream transportation and distribution), category 9 (downstream transportation
and distribution), and category 11 (use of sold products).
Scope 3 GHG emissions efficiency efforts are also made through supplier selection, where Avian Brands has conducted
an environmental and social assessment through a questionnaire that covers questions related to sustainability practices.
Furthermore, Avian Brands has also conducted on-site audits of key suppliers to collect data on Scope 3 GHG emissions
reporting. At the event, Avian Brands also socialized the importance of joint commitment with suppliers in energy efficiency
and emission reduction efforts.
Greenhouse Gas Emissions Produced
Emission Source Unit 2024 2023* 2022*
Scope 1 Greenhouse Gas Emissions [GRI 305-1] [POJK F.11] [SASB RT-CH-110a.1.] [CDSB REQ-05] [TCFD MET.b]
Direct Emissions from Stationary Combustion TonCO2e 2,443.56 2,443.65 2,617.82
Direct Emissions from Mobile Combustion TonCO2e 236.37 274.61 454.56
Total Scope 1 Emissions TonCO2e 2,679.93 2,718.26 3,072.38
Indirect Scope 2 Greenhouse Gas Emissions [GRI 305-2] [POJK F.11]
Indirect Emissions from Consumption of
TonCO2e 8,564.96 8,581.65 8,480.08
Electricity Purchased from PLN
Total Scope 2 Emissions TonCO2e 8,564.96 8,581.65 8,480.08
Total Scope 1 and Scope 2 Emissions TonCO2e 11,244.89 11,299.92 12,899.23
Other Indirect Scope 3 Greenhouse Gas Emissions** [GRI 305-3] [POJK F.11]
Upstream Transportation and Distribution TonCO2e 602.99 0 0
Downstream Transportation and Distribution TonCO2e 8,111.54 0 0
Purchase of Goods and Services TonCO2e 91,729.84 0 0
Use of Products Sold TonCO2e 54,342.14 0 0
Total Scope 3 Emissions TonCO2e 154,786.52 0 0
Notes:
* Data restated.
** Scope 3 GHG emission is being measured only for 2024.
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The Intensity of Scope 1 and Scope 2 Greenhouse Gas Emissions [GRI 305-4] [POJK F.11]
23.26
KgCO2e/Ton Product 2024 2023 24.45*
2022 25.16
* Data restated.
The Intensity of Scope 1 and Scope 2 Greenhouse Gas Emissions
compared to Revenue [GRI 305-4] [POJK F.11]
TCO2e/Rp 2024 2023 0.0000016
0.0000015
2022 0.0000019
Emissions of Ozone Depleting Substances [GRI 305-6]
The environmental impact of using Ozone Depleting Substances (“ODS”) is highly significant, considering their role in damaging
the ozone layer that protects the earth from harmful ultraviolet radiation. The ODS, commonly used in air conditioners,
refrigerators, and light fire extinguishers (alat pemadam api ringan or “APAR”) cylinders, can react with ozone molecules in the
stratosphere, leading to depletion of the ozone layer. This depletion can lead to numerous environmental problems, such as
accelerated climate change, degradation of clean water quality, and damage to marine ecosystems.
Avian Brands recognizes the importance of reducing the use of ODS to prevent further negative impacts. Therefore,
Avian Brands has implemented various policies to reduce dependence on ozone-depleting materials and switch to more
environmentally friendly alternatives. A comprehensive analysis of Avian Brands’ operations in the manufacturing plants and
offices has been conducted to identify the use of ODS. Results thereof indicate potential uses of ODS in supporting operational
activities at the plant and office sites, i.e. the use of air conditioners and fire extinguishers. In accordance with Avian Brands’
commitment to reducing GHG emissions, including those caused by ODS, Avian Brands have several policies in place,
among others:
1. Using environmentally-friendly R 410 air conditioners; and
2. Using non-CFC and non-Halon light fire extinguishers (APAR).
As for manufacturing activities, our analysis showed that no ODS were generated. These measures reflect Avian Brands’
commitment to environmental protection and to supporting global efforts to maintain the balance of the atmosphere.
By continuously adopting cleaner technologies and practices, Avian Brands strives to not only meet, but exceed applicable
environmental standards.
Air Emissions of Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and
Other Significant Air Emissions
Avian Brands’ paint manufacturing process generates conventional gas emissions, such as NOx, SOx, and other types
of air emissions. To reduce environmental impacts from these emissions, Avian Brands implements strict policies in
accordance with the quality standards set by the government. Avian Brands routinely carries out emissions monitoring and
reporting, the results of which are used as the basis for continuous improvement in Avian Brands’ emissions management.
The results of emission monitoring conducted in 2024 by a KAN-certified laboratory showed that the levels of NOx and SOx
of Avian Brands have met the established environmental standards. Avian Brands’ commitment to emissions management
includes not only meticulous monitoring, but also implementing proactive measures to continuously improve our practices.
Through this approach, Avian Brands strives to reduce the impact of conventional emissions and support wider efforts for
environmental preservation.
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RESPONSIBLE ENVIRONMENTAL MANAGEMENT
Waste Management and Utilization
The operational activities of Avian Brands generate various types of waste, categorized into solid and liquid waste.
These wastes are further classified as hazardous and toxic waste (“Hazardous Waste”) and Non-hazardous Waste. Avian Brands
is committed to responsibly managing all wastes in order to minimize their adverse environmental impacts, prevent them
from harming the health of local communities, contaminating soils and waters, changing air temperature and quality, and
contributing to climate change. Avian Brands’ waste treatment adheres to the standards set by regulations and licenses,
ensuring that all wastes are within the permitted quality thresholds. Avian Brands has reported its waste management data
through the PROPER from the Ministry of Environment and Forestry of the Republic of Indonesia and through the Green
Industry Certificate (Sertifikat Industri Hijau or “SIH”) since 2022 from the Ministry of Industry of the Republic of Indonesia.
These measures demonstrate the dedication of Avian Brands to effective and responsible waste management, as well as its
commitment to protecting the environment and the health of surrounding communities from potential impacts of the waste.
[GRI 3-3, 306-1]
A comprehensive overview of waste generation and its management across Avian Brands’ business processes are described
as follows:
Identification of Waste Impacts and Management [306-1]
Type of Operational Impacts of Waste on
Type of Waste Generated Management Efforts
Activities the Environment
Raw Material Storage • Sludge; Soil, water, and air • Dispose of waste to Hazardous
• Used Lubricant Oil; pollution. Waste Temporary Disposal Site
• Used Hazardous Waste Packaging; (Tempat Pembuangan Sampah or
• Rags (Kain Majun); “TPS”);
• Used Battery; • Using rags/sand; and
• Plastic Waste; and • Exhause for indoor air circulation.
• Inorganic and Non-Recyclable Waste.
Mixing • Sludge; Soil, water, and air
• Used Lubricant Oil; pollution or odors.
• Used Hazardous Waste Packaging;
• Rags; and
• Used Solvents.
Grinding • Sludge; Soil, water, and air
• Used Lubricant Oil; pollution or odors.
• Used Hazardous Waste Packaging;
and
• Rags.
Filling • Sludge; Soil and air pollution
• Used Lubricant Oil; or odors.
• Used Hazardous Waste Packaging;
• Rags; and
• Used Solvents.
Tinting • Sludge; Soil, water, and air • Disposing of waste to Hazardous
• Used Lubricant Oil; pollution or odors. Waste TPS;
• Used Hazardous Waste Packaging; • Using rags/sand;
and • Covering the tank during the
• Rags. process; and
• Installing ventilator on the roof
area of the tinting tank.
Packing • Sludge; Soil, water, and air • Disposing of waste to Hazardous
• Used Lubricant Oil; pollution or odors. Waste TPS; and
• Used Hazardous Waste Packaging; • Using rags/sand
• Used Battery; and
• Rags.
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Classification of Impacts of Wastes generated
Primary Impact Secondary Impact
• Global warming potential; • Photochemical oxidation;
• Ozone depletion potential; • Abiotic (fossil and non-fossil) decline potential;
• Acid rain potential; and • Biotic decline potential;
• Eutrophication potential. • Carcinogenic;
• Toxicity;
• Water footprint; and
• Land use change.
In addition to waste management, Avian Brands implements a reduce, reuse, recycle (“3R”) program for returned paint
waste, which is generally due to damaged packaging during storage, errors in customer orders, and other factors.
The returned paint is sorted according to its condition and recycled into paint products for special purposes.
Thus, Avian Brands ensures that no returned paint is wasted. In addition, returned paint is also used as an alternative raw
material to produce new paints with specifications that match the type of material required. This approach optimizes the
reuse of materials and reduces waste. For Hazardous Waste that cannot be further treated, Avian Brands conducts systematic
collection and sorting, then delivers the waste to collectors, transporters, processors, and users who are licensed by the
government. As for non-hazardous waste, Avian Brands collects it in each business unit to be handed over to waste collectors in
accordance with the regulations of the local Sanitation Agency. Avian Brands also collaborates with third parties in managing
waste. Thus, in addition to promoting sustainability, it also provides economic benefits to both the company and its waste
management partners.
Moreover, Avian Brands implements the 3R principle to reduce the generation of non-hazardous waste, including:
• Reduce: Repairing wooden pallets so that they can be reused
• Reuse: Processing plastic waste into dustpan (cikrak) and used uniforms into rags; and
• Recycle: Using paper crusher to make safety wraps as well as composting and producing fertilizer from organic waste.
In total, Avian Brands managed to reduce the volume of waste generated by 15.95% compared to the previous year. This figure
is in line with the 40.68% increase in the reuse of hazardous waste, reflecting Avian Brands’ responsibility towards managing
the impact of waste on the surrounding environment. [GRI 3-3, 306-2, 306-4] [POJK F.13, F.14]
Information on the amount of waste generated from Avian Brands’ operational activities is described below:
Operational Activities
Production Outputs Waste
Hazardous Waste Non-Hazardous Waste Effluent
Processed in Water
Handed Over to Utilized as Alternative Handed Over to Treatment Plant and
Licensed Third Parties Raw Materials Licensed Third Parties Sewage Treatment Plant
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Total Generated Waste [GRI 306-3] [POJK F.13] [RT-CH-150a.1.]
Type of Waste Unit 2024 2023 2022
Hazardous Waste
Solid Ton 642.50 806.69 850.81
Liquid Ton 91.44 80.08 96.15
Total Hazardous Waste Ton 733.94 886.77 946.96
Non-Hazardous Waste
Total Non-Hazardous Waste Ton 166.99 185.07 157.68
Total Generated Waste Ton 900.93 1,071.84 1,104.64
Total Waste Processed Throughout 2024
Wood Pallets Plastic Waste
Reduce
1,612.56 kg
Recycle
111 kg
Repaired Pallets Producing dustpan (cikrak)
Reuse
101.10 kg
Biomass
(Asphalt burner)
Paper Crusher Used Uniform
Recycle
113 kg
Recycle
273 kg
Safety Wraps/Delivery Wraps Rags
Bio-Inoculum Plus Organic Waste
Recycle
192.19 kg
Recycle
4,150 kg
Liquid Fertilizer Composting
Transport and Reuse of Waste and Effluent [GRI 306-4, 306-5]
Avian Brands is committed to managing generated waste through various processes, including transportation and treatment.
The total hazardous waste that is handed over to third parties for transport, and waste that is treated and reused by Avian
Brands, is described as follows:
Type of Waste Unit 2024 2023 2022
Hazardous Waste Handed Over to Third Parties Ton 733.94 886.77 946.96
Reuse of Hazardous Waste
Industrial Waste Water Ton 2,650.14 1,820.24 2,482.98
Washing Solvent Ton 151.19 166.27 180.87
Sludge Ton 80.95 62.29 84.76
Total Reuse of Hazardous Waste Ton 2,882.28 2,048.79 2,748.61
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Type of Waste Unit 2024 2023 2022
Reuse of Effluent
Cleaning Water
Water-Based Paint Liter 382,243 376,188 370,466
Water-Based Resin Liter 260,644 275,536 252,069
Total Reuse of Effluent Liter 642,887 651,724 622,535
Effluent Discharge from Water Treatment Plant and Sewage Treatment Plant Processes Plant
4.80
Megaliter 2024 2023 3.83
2022 4.14
Spill Incident
The risk of spills of chemicals, oil, fuel and other hazardous substances may threaten the quality of soil, water, air, as well
as human health and biodiversity. In dealing with this risk, Avian Brands implements strict controls and procedures for
the effective management of high-risk materials. The results of these efforts have been overwhelmingly positive, with
Avian Brands successfully avoiding any spill incidents involving chemicals, oil, fuel or other hazardous substances in 2024.
This success shows that there are no significant adverse impacts related to spills from the operational activities of Avian
Brands. The precautionary measures we employ, along with meticulous monitoring and handling, ensure that Avian Brands
can protect the surrounding environment from potential damage caused by spills, while protecting public health and safety.
[GRI 306-3] [POJK F.15]
Biodiversity
Environmental Protection Program through Planting Trees
Avian Brands is committed to contributing to environmental protection, through tree planting activities
on the slopes of Mount Arjuno and reforestation programs in areas around the plants. By the end of 2024,
the number of trees planted in the plant areas has accumulatively reached 166 species with a total of 5,794 trees, with
potential carbon sequestration of 817.38 TonCO2e. Avian Brands also targets to plant 5,000 trees each year on the slopes of
Mount Arjuno, involving third parties and local farmer organizations. In this regard, Avian Brands has planted 5,000 trees
on the slopes of Mount Arjuno in 2024, consisting of 3,500 Acacia Kurmis (Acacia Auriculiformis), 1. 000 Trembesi trees
(Samanea Saman), and 500 Banyan trees (Ficcus Benyamina) with potential carbon sequestration of 3,252.55 TonCO2e.
The tree planting program has been implemented since 2022, resulting in a total of 15,000 trees planted up until this reporting
year, successfully sequestering carbon of 4.017,65 TonCO2e. Starting in 2024, Avian Brands also expanded the tree planting
areas in the plant and distribution area (TKTW) with a target of planting 169 trees. The target has an estimated total carbon
sequestration of 359.33 TonCO2e. Additionally, Avian Brands, in collaboration with the communities around the area, continues
to monitor the growth of the trees that have been planted. Avian Brands undertakes replanting of trees that have failed to
grow due to several factors, such as climate change as well as other environmental and natural conditions that potentially
inhibit growth. Tree planting initiatives are designed to not only absorb carbon emissions, but also positively contribute
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to the environment. Acacia Kurmis and Trembesi trees were selected for their ability to sequester CO2 as well as resistance
to soil conditions in slope areas, which directly helps improve soil stability and prevents erosion. Information on the total
accumulated trees planted by Avian Brands and their carbon sequestration value in the last 3 years is described as follows:
[GRI 3-3, 305-5] [POJK F.10, F12]
Description Unit 2024 2023 2022
Mount Arjuno
Total Trees Planted Trees 15,000 10,000 5,000
Type of Trees Planted Type 3 2 2
KgCO2e 4,017,645 765,100 520,100
Carbon Sequestration Value
TonCO2e 4,017.65 765.10 520.10
AVIA + TKTW Environments
Total Trees Planted Trees 5,794 4,880 1,797
Type of Trees Planted Type 166 92 67
KgCO2e 817,383 435,887 421,237
Carbon Sequestration Value
TonCO2e 817.38 435.88 421.24
Notes:
Data is accumulated from year to year.
We also ensure that Avian Brands’ operational areas are not located nearby protected areas, conservation areas,
or areas with high biodiversity value, to avoid negative impacts on these ecosystems. With these efforts, we are committed to
protecting and improving biodiversity and supporting environmental sustainability. [POJK F.9]
Environmental Management Costs
As part of Avian Brands’ commitment to preserve the environment, we regularly allocate specific budgets to support various
environmental management activities. This budget is designed to ensure the successful implementation of environmental
programs, including waste management, emissions monitoring, and conservation initiatives. To improve cost efficiency and
effectiveness, Avian Brands actively seeks opportunities to work with third parties specialized in environmental management.
This collaboration not only helps reduce operational costs, but also allows Avian Brands to benefit from the technology and
best practices of an experienced partner. With this strategy, Avian Brands seeks to reduce environmental management costs
as much as possible, while remaining compliant with applicable standards and regulations, as well as supporting sustainable
environmental protection efforts. Information on the costs incurred by Avian Brands is described as follows: [POJK F.4]
Environmental Management Costs
1,293
Million Rupiah 2024 2023 1,059
2022 1,524
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Complaints on Environmental Issues [GRI 2-25] [POJK F.16]
We provide access for all stakeholders who feel disadvantaged due to environmental issues caused by Avian Brands’ operational
activities so that they are able to submit their complaints through monthly meetings organized by Avian Brands with local
village officials. Any incoming report of complaint will be processed and followed up properly and professionally. If necessary,
Avian Brands will hold further face-to-face forums with the relevant parties, to further determine what steps will be taken to
resolve the existing problems.
Over the past 3 years, Avian Brands has not received any material and significant complaints related to environmental issues.
[GRI 2-16]
Environmental Compliance
We consistently ensure that all operational activities of Avian Brands comply with prevailing environmental laws and regulations
in the Republic of Indonesia. This compliance is manifested through intensive management and monitoring, with a focus on
improving environmental performance, including aspects of water quality, air quality, and hazardous waste management.
Avian Brands has fulfilled 100% of the applicable requirements in these aspects. Avian Brands’ environmental programs
have been well implemented, allowing Avian Brands to maintain positive results in PROPER assessment with a Green rating.
The PROPER assessment also listed Avian Brands as a Gold Candidate, indicating that Avian Brands has exceeded standards of
compliance in environmental management.
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Sustainable
Product
Responsibility
“Avian Brands is committed to providing
safe, quality, and environmentally friendly
products, by adhering to national and
international standards and certifications.
This sustainable product management
strategy includes the improvement of
competitive and cost-efficient product
quality, as well as the improvement
of services through timely delivery
and fulfillment of customers’ needs.
Furthermore, systematic evaluations are
conducted to assess the effectiveness
of sustainability practices, ensuring
products not only meet quality standards,
but also support global sustainability
goals while maintaining competitive
edge in the market.”
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Avian Brands Achievements [GRI 3-3]
Launch of 15 new products in 2024.
82.17% of Avian Brands’ paint products are water-based.
A 17.24% increase in the number of Singapore Green Label products, or 34 products.
Sales volume of Singapore Green Label-certified products amounting to 54,798 tons or 31.9% of
the total paint sales volume in the architectural solutions operating segment.
Improved customer satisfaction survey in the second half of 2024, with the score increasing to 3.41
on a 4.00 scale.
Sustainable Product Management Strategy
Avian Brands remains highly committed to providing safe, high-quality products and services that are also environmentally
friendly. Avian Brands upholds the principles of sustainable product responsibility by ensuring that every manufactured
product meets national and international standards and certifications. This commitment is manifested through continuous
improvement in product quality that is competitive, environmentally friendly, and manufactured in a cost-efficient manner.
With this approach, we ensure that Avian Brands’ products not only meet customer expectations in terms of quality, but also
support global sustainability goals. [GRI 3-3]
In addition, Avian Brands constantly strives to improve service quality by making timely product deliveries, fulfilling customer
demands, and providing added value through more responsive and proactive services. These measures aim to maintain
customer satisfaction, strengthen Avian Brands’ competitive edge in the market, and expand market share by promoting
sustainability-oriented products. With consistent evaluation and improvement, Avian Brands is committed to continuously
providing the very best solutions for customers, who are increasingly aware of the value of environmental sustainability.
More detailed information related to the sustainable product management strategy adopted by Avian Brands in 2024 is
described as follows: [GRI 3-3]
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Sustainable Product Management Strategy
1 Improving quality, competitive, and environmentally friendly products with efficient production costs.
Improving service quality, ensuring timely product delivery, meeting customer demands, and providing
2
added value for customers.
3 Providing socialization of information related to the safety and security of product applications.
Avian Brands also conducts systematic evaluations to assess effectiveness of the implemented sustainability practices,
ranging from the selection of environmentally friendly raw materials to energy-efficient manufacturing processes with low
carbon foot print. Moreover, Avian Brands closely monitors its use of resources and efforts to minimize environmental impact
through the reduction of production emissions and waste. Avian Brands also analyzes customer feedback to ensure that in
addition to meeting quality standards, its products also constantly improve customer satisfaction in terms of sustainability.
This evaluation enables Avian Brands to identify new innovation opportunities that can be implemented to improve product
and service performance. Therefore, Avian Brands’ sustainability product management strategy remains dynamic, adapting
to evolving market trends and environmental regulations that allow us to continuously meet the needs of our customers and
strengthen Avian Brands’ position as an industry leader with a focus on sustainability. [GRI 3-3]
This evaluation-based approach also serves to ensure that Avian Brands remains consistent in practicing the principles of
environmental responsibility, while still maintaining cost efficiency and increasing added value for customers.
Commitment to Providing Equal Products
and Services [POJK F.17]
In an effort to provide equal products and services, we have established mechanisms and procedures to ensure that every
segment of the society has equal access to Avian Brands’ products and services, both through affordable price offerings as
well as high-quality premium products. To ensure the quality and sustainability of Avian Brands’ products, we implement
nationally and internationally recognized standards. Some of Avian Brands’ products have obtained GLS, SNI, and TKDN
certifications. These certifications ensure that Avian Brands’ product offerings comply with applicable regulations and meet
high expectations in terms of quality and environmental friendliness. With this approach, Avian Brands strives to continuously
deliver fair and equitable benefits to all our customers, while constantly raising our standards to meet the needs and expectations
of the market.
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Health and Safety of Products and Services
[GRI 3-3, 416-1] [POJK F.27] [SASB RT-CH-410b.1.]
Health and safety of Avian Brands’ products and services With this approach, we are able to continuously manufacture
is always number one priority. By implementing high-quality products that also contribute to environmental
product stewardship, Avian Brands ensures that every sustainability, in line with Avian Brands sustainability
product manufactured by the Company fulfills quality values. As of the end of 2024, 34 of Avian Brands paint
and safety standards. As part of this endeavor, we are products are certified with the Singapore Green Label, a
constantly innovating by transforming Avian Brands’ paint manifestation of our responsibilities for products that are
product portfolio to be more environmentally friendly. low in Volatile Organic Compound (“VOC”), and free of
We also launched several new water-based products as Alkylphenol Ethoxylates (“APEO”) and heavy metal contents.
alternative to solvent-based products. Currently, about We also regularly evaluate these 34 products. Through this
82.17% of Avian Brands’ products are water-based, evaluation process, we reassess all aspects of product safety,
which includes all manufactured paint products with the from raw materials to methods of use, to ensure that Avian
exception of instant cement (mortar). In addition, Avian Brands’ products are not only safe to use, but also meet
Brands successfully achieves 56.30% in the use of renewable customer expectations and applicable regulatory standards.
raw materials compared to the total raw materials. To reduce This step is part of our ongoing efforts to maintain product
the risk of exposure to heavy metals, Avian Brands have also quality and safety, while strengthening customer trust in
ensured that all water-based products manufactured do not Avian Brands.
contain any heavy metals. This is aligned with Avian Brands’
commitment to reduce environmental impact and increase As part of our safety and sustainability commitment, we
product value for customers. have also implemented the Global Harmonized System
(“GHS”) for the classification and labeling of chemicals in all
In the manufacturing process, Avian Brands has Avian Brands’ products. The implementation of GHS gives
implemented an integrated system that encompasses all a consistent standard for identifying and communicating
stages, from the availability of raw materials to the final potential chemical-related hazards to both employees and
quality control. Avian Brands ensures that every aspect of customers. Under the GHS, each product is provided with
the manufacturing process has been optimized to maintain clear and easily understandable labels and safety signage,
cost efficiency while ensuring consistent product quality. ensuring that everyone who interacts with Avian Brands’
Product quality and safety control starts at the development products possesses the necessary information to handle
phase by the Research, Development & Innovation and use the products safely as indicated on each product’s
(“RDI”) Laboratory, where Avian Brands determines primary packaging. In addition, every customer can also
product characteristics, selection of raw materials, and access the MSDS on Avian Brands website as well as on the
optimization of appropriate manufacturing processes. In product labeling on each package.
this process, the purchasing department first conducts
an in-depth evaluation of the supplier’s profile, including
an assessment of the energy management system at the
supplier’s manufacturing locations, as well as an analysis of
transportation costs to ensure optimal pricing and delivery
of materials. In any purchase of raw materials and packaging
materials, the quality of the material received will be
corroborated with the applicable requirements, including by
requiring Material Safety Data Sheet (“MSDS”), Certificate of
Analysis (“CoA”), and Technical Data Sheet (“TDS”) for every
type of supplied material. In addition, a thorough review
of material specifications is conducted to ensure that the
materials used are both safe and environmentally friendly.
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Impact of Products and Services [POJK F.28]
We are fully aware that some of Avian Brands products Distribution and transportation aspects are also among
might have health-affecting side effects, during the our concerns in mitigating the environmental impacts
application process or when the products are used indoors. of Avian Brands products and services. In this regard,
In response, Avian Brands consistently strives to meet its the TKDN certification obtained by Avian Brands’ products
customers’ needs for safe products that provide added also contributes to the reduction of carbon emissions
value in terms of health and environmental preservation. (CO₂) in the transportation sector. By prioritizing the use
Through the RDI Division, we are committed to maintaining of domestic materials, Avian Brands directly reduces the
product quality, promoting innovations, as well as distance of material distribution, which is typically longer if
considering and mitigating potential impacts that may arise imported from abroad. Not only does it support operational
from Avian Brands’ products and services. We ensure that efficiency, but it also helps reduce carbon emissions arising
all products marketed are 100% compliant with applicable from the logistics process. As of the end of 2024, 36 of
regulations, both in terms of quality as well as safety and Avian Brands’ products are TKDN-certified.
security. This is to ensure that Avian Brands’ products
are favourably received by all relevant parties, including These measures not only aim to minimize the adverse health
customers and the government. Compliance with existing and environmental impacts of Avian Brands’ products, but
regulations not only guarantees product quality and safety, also reflect our commitment to promoting sustainable
but also provides confidence and comfort for customers practices in all aspects of Avian Brands’ operations.
while ensuring that Avian Brands’ products meet the
standards set by the authorities.
Labeling and Information of Products and
Services
Avian Brands understands the importance of providing customers with accurate and transparent information about the
products they purchase. Customers have the right to understand various information, including product specifications,
advantages, application techniques, and waste disposal. To that end, we consistently provide clear, complete and easily
understandable information on all of Avian Brands’ product packaging. This allows customers to use the products
correctly and safely, thereby ensuring optimal results and reducing the risk of adverse health and environmental impacts.
Additionally, we also adjust Avian Brands product labeling to ensure that each product reaches the right market segments, so
that customers’ needs and expectations can be fulfilled optimally. [GRI 3-3]
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In addition to product packaging, customers can also obtain comprehensive information about Avian Brands’ products through
the following social media platforms:
www.avianbrands.com
Instagram Youtube Facebook TikTok LinkedIn
@avianbrands Avian Brands Avian Brands avian.brands Avian Brands
Avian Brands implements each product labeling with the utmost responsibility, in compliance with applicable laws and
regulations. Avian Brands consistently complies with the Government Regulation of the Republic of Indonesia No. 29 of 2021
on the Organization of the Trade Sector and Minister of Trade Regulation of the Republic of Indonesia No. 25 of 2021 on
the Stipulation of Goods Required to Use or Provide Labels in Indonesian Language. Implementation of this regulation ensures
that every product manufactured by Avian Brands comes with a label that provides clear, accurate, and easily understandable
information for customers. Our labeling includes key information such as product specifications, how to use, product advantages,
and waste disposal instructions. Our commitment to labeling in accordance with the regulations is part of Avian Brands’ efforts to
promote fair and responsible trade practices, while providing the best protection for our customers. [GRI 417-1]
In line with the foregoing, we also implement fair and responsible marketing practices. We uphold the principles of clarity,
accuracy and honesty in every piece of information that Avian Brands conveys to customers. We refrain from exaggerated
promotional strategies or covering up product flaws with the aim of profiting from customers’ lack of information.
In general, Avian Brands’ marketing approach includes 2 main strategies. First, Avian Brands implements marketing based
on loyalty programs, also known as the below-the-line marketing (“BTL”), focusing on direct and personal interactions with
customers to build strong and sustainable relationships. Second, Avian Brands employs mass-media marketing, also known as
the above-the-line marketing (“ATL”), which leverages advertising across various media platforms to reach a wider audience and
increase Avian Brands’ brand visibility. We also collaborate with public figures of Key Opinion Leaders (“KOLs”) and influencers
to strengthen brand image and expand market reach.
Avian Brands’ consistent efforts in responsible delivery of product information, marketing and promotion have yielded positive
results. During the reporting year, there were no reports or complaints related to non-compliance in product information
and marketing communications, including promotional and sponsorship activities we conducted. We remain committed to
maintaining standards in Avian Brands’ marketing practices to ensure that all communications and promotions are conducted
with transparency and honesty. This success reflects Avian Brands’ dedication to fulfilling obligations to customers and
stakeholders, as well as upholding ethical principles applicable in the industry. [GRI 417-2, 417-3]
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Product Innovation and Development [POJK F.26]
As the leading paint manufacturer, Avian Brands is determined to keep innovating to respond to social and environmental
challenges by delivering high-quality products that meet the market’s needs. Avian Brands’ RDI division is key to this effort,
focusing on optimizing formulas and manufacturing processes to improve the efficiency of the use of materials and packaging.
Avian Brands prioritizes efficiency in the manufacturing process, by utilizing technology that can reduce unnecessary use of
resources, optimize every stage of production, and minimize environmental impact. Therefore, Avian Brands has been gradually
switching from fossil-based energy to more environmentally friendly energy sources, such as the use of electric forklifts
and solar panels. In addition, optimization of the manufacturing process from upstream to downstream and automation of
production machines are also continuously carried out so that in 2024, we managed to increase the efficiency of energy use in
both plants of Avian Brands by 5.00%. We are also actively replacing packaging materials from multi-material to mono-material
so that they can be recycled.
Avian Brands’ innovation is not only limited to manufacturing process efficiency, but also includes the development of more
environmentally friendly products. Avian Brands has continuously shifted from petrochemical-based products to more
environmentally friendly alternatives, such as water-based paints and bio-based products as well as bio-mass balance products.
Avian Brands’ water-based paint technology can reduce the use of VOC materials, thereby minimizing adverse impacts on
public health, particularly when applied indoors. With these measures, Avian Brands commits to environmental sustainability
and customer safety, in addition to improving product quality and performance.
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Thanks to the dedication of the RDI Division, Avian Brands successfully launched 15 new products in 2024, all of which have
met quality and sustainability standards. The following are the products successfully developed and launched by Avian Brands
in 2024:
Avian Cling Water Based Boyo Politur Spray No Drop Tile Grout No Drop Dempul Instan
• Anti-rust Without Primer • Maximum Penetration into • Acid Fluid Resistant • Flexible
• Non-yellowing Wood Fiber • Waterproof • Seals Cracks
• Long-lasting Gloss • For Exterior and Interior • Not Easily Cracked • Water Repellent
• Quick Drying
No Drop Serat Fiber GM 385 Perekat Bata Ringan Pro-X 208 No Drop Beton & Batu Alam
Ekonomis
• Waterproof • Economical • Easy Mixing • Water Repellent
• Elastic • Strong Adhesion • Easy Application • Nano Particle
• Seals Cracks • Quicker Application • Long lasting • Lotus Leaf Effect
Avian Non-Sag Epoxy Hemat Supersilk Semi Kilap No Drop Kolam Ikan
• Strong Adhesion • Luxurious Gloss • Leakproof
• Not Easily Dripping • Anti-bacterial • Non-toxic
• No Pungent Odor • Easy to Clean with Water • Aquatic Ecosystem
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GM 265 Acian Abu-abu GM 275 Acian Putih Supersilk Basic Avian Cat Lapangan
Ekonomis Ekonomis
• Strong Adhesion • Strong Adhesion • Super Cover Technology • Anti-slip
• Perfectly Seal Hair Cracks • Perfectly Seal Hair Cracks • Good Touch Up • Friction Resistant
• No Plaster • No Plaster • Ultra Matt look • For Exterior and Interior
Green Label Certificate
To improve the implementation of sustainability practices, we have taken a significant step by registering Avian Brands’ products
for Green Label certificates from Singapore Green Label. The Green Label certification process is carried out through a strict
assessment of various aspects, from environmentally friendly requirements for end users to consideration of the entire product
life cycle by means of life cycle analysis. Each stage, from the selection of raw materials, efficient manufacturing processes with
minimal waste, to labeling, is rigorously evaluated to ensure the environmental friendliness of Avian Brands’ products. This is
part of our strategy to ensure that Avian Brands’ products are not only safe for our customers, but also carry low environmental
impacts. Some other advantages of obtaining the Green Label certificate include the following:
1. Widespread Recognition 4. Competitive Edge
The Singapore Green Label certification is widely Customers are increasingly mindful of environmental
recognized by various parties, thus indicating that issues and the impact of their purchases. Obtaining
each Avian Brands product certified with the Singapore Green Label Singapore certification gives Avian
Green Label has met strict environmental standards and Brands a competitive edge by allowing us to market
strengthens Avian Brands’ reputation in the market. our products to sustainability-conscious customers.
2. Guaranteed Credibility The certification also helps elevate Avian Brands image
Singapore Green Label-certified products carry strong and gives it an edge over competitors who have yet to
credibility thanks to accreditation from the Global adopt sustainable business practices.
Ecolabelling Network (“GEN”) through the Global 5. Reduced Environmental Impact
Ecolabelling Network International Coordinated By purchasing Avian Brands products certified with
Ecolabelling System (“GENICES”). This certification the Singapore Green Label, customers help reduce the
adheres to ISO 14024 and ISO 17065 standards, and environmental impact of the manufacturing process.
emphasizes life cycle-based assessments verified by This certification adopts a product lifecycle approach
third parties. This ensures that Avian Brands’ products that considers the environmental impact of all stages
are environmentally friendly, transparent and free from of production, from raw materials to packaging, which
potential “green-washing.” brings greater benefits to environmental sustainability.
3. New Market Opportunities 6. Cost Savings and Efficiency
With the SingaporeGreenLabelcertification, Avian The Singapore Green Label certification process also
Brands’ products are more likely to obtain similar helps improve efficiency in the manufacturing process
recognition and certification in other GEN member by eliminating inefficient practices. This translates into
countries. This opens up new opportunities for us to cost savings in energy and water usage, and enables
market Avian Brands products internationally in the Avian Brands to produce goods in a more sustainable
future, thus expanding market reach and increasing and environmentally friendly manner.
product recognition.
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SUSTAINABLE PRODUCT RESPONSIBILITY Moreover, we are committed to gradually ensuring that our entire product portfolio will comply with other environmental standards in the future, such as Low VOC, APEO Free, and Heavy Metal Free. As of the end of 2024, 34 of Avian Brands products have obtained the Singapore Green Label certification, which also adds to the list of certified environmentally friendly products owned by Avian Brands. Revenue from Sustainable Products [SASB RT-CH-410a.1.] Avian Brands’ continuous innovation in creating environmentally friendly products has positively impacted on its revenue generation. In 2024, Avian Brands successfully recorded sales volume of Green Label-certified products of 54,798 tons or 31.9% of total paint sales volume in the architectural solutions operating segment. This figure increased compared to the previous year by 21,600 tons or 13.18%. Of these achievements, the proportion of value of revenue generated from Green Label-certified products reached 22.59% 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 11.43%. This accomplishment is reflective of Avian Brands successful strategy in introducing and marketing high-quality products that comply with strict environmental standards. Sustainable Production Process Aside from innovation in environmentally friendly products, Avian Brands’ sustainability strategy also involves continuous development of sustainable and responsible production processes. Avian Brands has implemented an integrated vertical supply chain system to ensure the use of high-quality raw materials that comply with environmental and social standards. All of Avian Brands’ raw material suppliers have passed assessments on sustainability aspects, including resource efficiency, environmentally friendly practices, and adherence to fair and ethical social principles. With this approach, Avian Brands can control the quality and sustainability of every stage of production, from the selection of raw materials to the final product that reaches customers. In addition to maintaining sustainability standards in the supply chain, Avian Brands also offers a range of products that cater to a wide spectrum of social segments. Products of Avian Brands are available in various price categories, allowing more people to access high-quality products at competitive prices. Avian Brands also ensures that these products can be used by various age group from children to adults, while considering the aspects of safety, health, and convenience of using the products. Beyond delivering on aesthetic and functional needs, Avian Brands continues to innovate in developing products that provide additional benefits to health and the environment. Avian Brands offers products with special protective technologies, such as paints that are safe for kids, reduce emissions of harmful substances, and promote healthier indoor air quality. In addition, Avian Brands also develops products that contribute to sustainability efforts, such as more environmentally friendly formulations, efficient use of raw materials, and recyclable packaging or packaging made from sustainable materials. By focusing on sustainable innovation, Avian Brands strives to deliver solutions that not only support environmental sustainability, but also provide long-term benefits to customers. Avian Brands believes that sustainability is not just an option, but a requirement in creating responsible, high-quality products that positively impact our future. 144
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PT Avia Avian Tbk • 2024 Sustainability Report
Flagship Product in Sustainability
1 No Drop Kolam Ikan
No Drop Kolam Ikan is a ready-to-use, single-component fishpond paint with no cement mixture.
It is the first fishpond paint in Indonesia certified with Singapore Green Label. This product offers
the perfect solution for leaking and seeping ponds, without the risk of harming the fish.
Specifically formulated for aquatic ecosystems, No Drop Kolam Ikan is non-toxic. It is ideal for use
as a waterproof coating for koi ponds, goldfish ponds, and so on, enhancing pond aesthetics with
vibrant color, providing leakproof protection, weather resistance, and free of toxic materials.
2 Avian Cling Waterbased
Avian Cling Waterbased is an environmentally friendly, high-quality synthetic paint that uses water
as thinner. With its primary component of high-quality modified acrylic resin, it delivers glossy
finish that is non-yellowing, odorless, and environmentally friendly. This paint features anti-rust
protection without requiring a primer, allowing Direct to Metal (DTM) application. It also offers
multi-substrate versatility, suitable for applications on metal, wood, and even walls. Additionally,
its water-based formula offers quick-drying property.
This innovation of Avian Cling Waterbased product is also part of Avian Brands commitment to
reduce solvent-based products that are unsafe for users.
3 Avitex Wizz
Avitex Wizz is a wall paint with a formulation that is 2 times thicker, can be diluted up to 40%
for greater cost efficiency, and has the best coverage in its class, even after 40% dilution.
It offers fast-drying properties and comes with a three-year protection guarantee, ensuring optimal
coverage and effectively covering imperfections on interior walls. Available in a wide range of
vibrant, fade-resistant colors, Avitex Wizz is the ideal choice for interior walls, ceilings, boards,
gypsum, and more. Avitex Wizz is also certified with Singapore Green Label as an environmentally
friendly product.
4 No Drop Anti Panas
No Drop Anti Panas is a highly powerful waterproofing. It can reduce the room temperature
up to 7° C due to its UV Shield technology, with its waterproof technology protecting the walls
from dampness. It is elastic, anti-mold, and mildew, and protects against rust, while providing
up to 10 years of surface protection.
No Drop Anti Panas is ideal for applications on concrete deck (strong protection), exterior/interior
walls, roof tiles, galvalume roofs, zinc roofs, factory/warehouse metal roofs, GRC, asbestos, PVC, and
rain gutters.
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SUSTAINABLE PRODUCT RESPONSIBILITY Number of Recalled Products [POJK F.29] In 2024, all of Avian Brands’ products were well absorbed in the market and there were no product recalls related to products’ nonconformities or other reasons. Customer Satisfaction [POJK F.30] Avian Brands periodically conducts customer satisfaction surveys every six months in order to understand and meet current customer expectations. This survey is designed to measure satisfaction levels as well as to explore customer preferences, allowing us to tailor Avian Brands’ products and services to meet the evolving needs of our customers. In the customer satisfaction survey conducted in the first semester of 2024, Avian Brands achieved a score of 3.41 out of a 4.00 scale. This indicates that Avian Brands’ performance in meeting customer expectations was in the good category. However, Avian Brands didn’t stop there. Determined to constantly raise quality, Avian Brands made improvements based on the feedback received. These efforts paid off in the survey in the second semester of 2024, with our score increasing to 3,41 on a scale of 4.00, solidifying Avian Brands’ position in the good category. More than just numbers, the survey results reflect customers’ trust in Avian Brands’ products and services. This trust motivates us to continuously innovate, ensuring that every aspect of Avian Brands’ products and services meet and even exceed customer expectations. We believe that by maintaining a focus on continuous improvement, Avian Brands is able to keep strengthening relationships with customers and improving overall customer satisfaction levels. 146
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PT Avia Avian Tbk • 2024 Sustainability Report
Information Security and Protection
Information security remains one of the main foundations that each internal data of the company is managed with
of Avian Brands’ business sustainability that we prioritize maximum security. Every data collection and management
at all times. We recognize that maintaining and enhancing is carried out under strict controls to ensure that the
this trust requires consistent and targeted efforts. data is not misused or accessed by unauthorized parties.
One of the strategic steps Avian Brands has taken is to ensure In addition, Avian Brands also constantly verifies the
the confidentiality and security of company information, reliability of the Information Technology (“IT”) management
including employee data, internal policy documents, and that we implement. Avian Brands applies strict access
product formulations. Avian Brands is fully committed to control management, including standardization of data
protecting such information from unwanted disclosure or encryption, annual review of user access, and management
even loss that could adversely affect the company. of super user access rights to ensure that only authorized
parties can access sensitive information of the company.
Avian Brands has an Information Security Management Audits of IT management are also conducted annually to
System Policy in place, which has been communicated to evaluate and ensure the effectiveness of existing information
all levels of management and ensures that all employees security controls. [GRI 3-3]
are able to implement the policy. Avian Brands’ data and
information management prioritizes the principle of The results of this steadfast commitment are evident
prudence, and has also been internationally recognized from the positive record during the reporting year, with
through the ISO/IEC 27001: 2013 certification concerning no complaints regarding confidentiality of internal
Information Security Management Systems. This standard information, leakage, theft, or loss of company’s internal
underpins every aspect of information security management data or data related to the employees. Furthermore, Avian
in Avian Brands, ensuring that all the internal documents Brands has not received any complaints from regulators or
and data we manage always remain in a safe and secure other external parties regarding breach or misuse of the
environment. [GRI 3-3] company’s information. This is a testament to Avian Brands’
ability to maintain the confidentiality of internal data, as well
As a tangible manifestation of Avian Brands’ commitment as cementing the company’s reputation as a responsible and
in maintaining information security, we always ensures reliable entity in terms of information security.
Complaints of Customer Issues [GRI 2-25]
Avian Brands provides an easily accessible platform for and troubleshooting process. Through this system,
customers to lodge any complaints related to products we encourage two-way communication between customers
and services, through Avian Brands official website at and Avian Brands, allowing us to not only listen, but
www.avianbrands.com under the Customer Care menu. also better understand any complaints lodged. Through
Avian Brands recognizes that customer feedback is an these measures, Avian Brands aims to improve customer
integral part of the improvement and development process, experience and ensure efficient and effective treatment of
hence we facilitate complaints relating to various aspects, any issues.
from delivery to product quality and packaging.
During the last 3 years, Avian Brands has not received
All complaints received will be professionally managed by any material and significant complaints from customers
Avian Brands’ Quality Assurance team. We are committed regarding the products and/or services provided.
to handling each report quickly and effectively, ensuring [GRI 2-16]
that every issue receives proper attention. Avian Brands
website allows customers to submit complaints in writing,
and it also gives them the option to submit photos as part
of their submission, thereby facilitating the communication
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PT Avia Avian Tbk • 2024 Sustainability Report
Maintaining
the Growth of
Avian Brands
Personnel
“We value our employees as the main
pillar in achieving Avian Brands’ goals
and sustainability. With this in mind,
Avian Brands is committed to creating a
safe and healthy work environment that
supports employees’ professional growth
and development. Therefore, Avian Brands
actively implements various programs
aimed at maximizing individual potential,
promoting skill development, and improving
overall performance. With this approach,
Avian Brands looks forward to encouraging
mutual progress, strengthening business
foundations, and ensuring the opportunity for
every employee to thrive in a supportive and
productive work environment.”
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MAINTAINING THE GROWTH OF AVIAN BRANDS PERSONNEL
Avian Brands Achievements [GRI 3-3]
The involvement of female employees at the Manager and Deputy Director levels reaching 40 out of
a total of 274 employees.
Realizing various competence development programs with total hours reaching 144,528.75 hours
or 15.51 hours per employee.
Organizing 57 trainings on sustainability with a total of 5,413 hours and 2,697 participants.
No human rights violations occurring within Avian Brands environment.
Management of Avian Brands employees based on the principles of gender equality, inclusiveness and
fair opportunities for all.
A decrease of 27.31% in the 2024 Total Recordable Injury Rate (“TRIR”) compared to the previous year.
100.00% of the employees of Avian Brands and its Subsidiaries have received MCU, including contract
and outsourced employees.
Strategy in Maintaining the Growth of
Avian Brands’ Personnel
We recognize Human Resources (“HR”) as part of Avian Additionally, Avian Brands also places great importance on
Brands’ strength and foundation to survive and thrive in an creating a proper, safe and healthy working environment for
increasingly competitive and dynamic paint industry. Both every employee. Through implementing a comprehensive
permanent and outsourced employees are valuable assets Occupational Health and Safety Management System,
with vital roles in promoting innovation and maintaining the sAvian Brands ensure that every individual is
Avian Brands’ position as a market leader. Therefore, Avian working in a condition that promotes their well-being,
Brands views employee development as a key strategic allowing them to contribute their best to Avian Brands.
priority that cannot be overlooked. Avian Brands continues We believe that Avian Brands’ long-term success depends on
to proactively improve our employee development and our employees’ welfare and growth. Therefore, Avian Brands
training programs in line with the latest industry needs continuously invests in cultivating a conducive environment
and trends. Each employee is encouraged to continuously for employees’ professional and personal growth.
upgrade their skills and knowledge, in order to adapt to With this approach, we believe that Avian Brands will be able
the emerging changes and challenges. This commitment is to maintain its competitive advantage and continue to grow
also reflected in Avian Brands’ efforts to ensure that every and innovate in the future. [GRI 3-3]
employee enjoys their rights fairly and equally, without
discrimination of any kind. Avian Brands upholds the
principle of fairness in every aspect of HR management,
by ensuring that every employee is treated with respect in
accordance with applicable laws and regulations and best
practices in similar industries. [GRI 3-3]
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Avian Brands regularly conduct comprehensive also enable Avian Brands to constantly innovate in
evaluations to ensure the effectiveness and relevance of employee management to ensure that each policy and
all employee management programs. These evaluations program remains relevant to the latest industry updates.
aim to ensure that each program runs in accordance with Thus, we are able to continuously optimize employee
the established targets and objectives, and in line with performance, strengthen Avian Brands’ competitive
industry best practices. These regular evaluation processes advantage, and ensure that all employee management
allow Avian Brands to identify potential gaps in program programs fully support the achievement of long-term
implementation and take necessary corrective measures. strategic goals. [GRI 3-3]
Beyond reviewing achievements, these evaluations
Human Resources Management
HR is a critical factor in promoting Avian Brands’ growth and Deep understanding of the critical role of HR serves as
success. As a company that keeps innovating in producing a foundation for Avian Brands in managing its HR with
outstanding products, Avian Brands needs human resources professional, effective, and accurate strategies. Avian Brands
with deep knowledge and expertise in product mastery, is committed to continuously developing each employee’s
manufacturing processes, and innovation development. abilities and potential, enabling them to achieve excellence,
Employees with these competences allow Avian Brands to competence and integrity. To achieve this goal, in addition to
keep delivering quality products capable of meeting and technical training, Avian Brands also focuses on developing
exceeding public expectations. In addition to the focus the soft skills that are key to building a solid and adaptive team.
on product innovation, the employees also serve as the The training and development programs developed by
frontline in providing meaningful services to customers. Avian Brands are aimed at improving employee competence
They are the face of Avian Brands in the eyes of customers, in various aspects, from leadership, communication, to
and play a vital role in shaping the company’s image as a teamwork skills. With this growth-oriented HR management,
paint manufacturer that offers exceptional customer service Avian Brands believes that it will remain competitive in
in addition to high quality product variants. In this role, the industry, maintain public confidence and loyalty,
employees are pivotal in maintaining Avian Brands’ position and achieve predetermined long-term strategic goals.
as a reliable and preferred option in the market. [GRI 3-3] [GRI 3-3]
In managing our employees, Avian Brands has established Human Resource and General Affair (“HRGA”) units,
specifically units in charge of People Development, Organization Development, Recruitment, Personnel Administration,
General Affair, Industrial Relation, Human Resource Information System (“HRIS”), and Human Resource Business Partner as the
responsible organs. We continuously ensure that every employee responsible for managing Avian Brands’ HR possesses the
relevant skills and expertise, by conducting competence certifications of Certified Human Resource Manager (“CHRM”) and
Assessment Center Assessor Certification (“ACAC”). More detailed information about Avian Brands’ HR management structure
is described as follows: [GRI 3-3]
HRGA
POD & Recruitment HR Operations
People Organization Personnel General Industrial HR Business
Recruitment HRIS
Development Development Administration Affair Relation Partner
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MAINTAINING THE GROWTH OF AVIAN BRANDS PERSONNEL
Diversity and Equality [POJK F.18]
Avian Brands embraces diversity and equality as its core values. We respect and promote diversity among individuals in various
aspects, including gender, class, color, ethnicity, religion, race, social status, political views, and so on. For Avian Brands, diversity
is not just a concept, but a valuable asset that enriches dynamics and creativity in the work environment. In realizing this
diversity and equality commitment, Avian Brands constantly strives to improve HR management quality to create an inclusive
and supportive work environment, in which every employee is treated fairly and equally. This is in line with Avian Brands’
Sustainability Strategy in the item 7 of the Social, Labor and Human Rights Pillar which states that “Avian Brands provides equal
employment opportunities and treatment regardless of gender, race, religion, color, ethnicity, class, and non-discrimination
to persons with disabilities. Implementation of this commitment is reflected in the anti-discrimination policy contained in the
Business Ethics and Code of Conduct, and further regulated in internal policies and Standard Operating Procedures (“SOPs”),
including the Anti-Discrimination SOP (AA-HRD-SOP-29). [GRI 3-3; 406-1]
This policy covers various aspects of HR management, from recruitment processes and competence development to career
development and the granting of employees’ rights. Avian Brands ensures that decisions taken in each of these aspects
are based on the focus on competence and performance, without priority to factors unrelated to performance, such as
gender. Avian Brands provides room for every employee to express their talents and skills, which ultimately boosts their
productivity and contribution. Additionally, Avian Brands is also committed to taking any reports of discrimination seriously.
Any form of discriminatory conduct may be reported through Avian Brands’ complaint procedure and Whistleblowing System,
and if proven, such violations will be penalized in accordance with work discipline procedures, including possible Termination
of Employment (Pemutusan Hubungan Kerja or “PHK”). [GRI 3-3] [POJK F.18]
Diversity and equality of Avian Brands’ employees are evident in our demographic composition. Avian Brands is proud to
have a highly diverse team in terms of gender, age, and educational background. We are also honored that Avian Brands
has welcomed employees with disabilities into our team. Avian Brands believes in unique potential of every individual, and
Avian Brands is committed to providing the necessary support to enable employees with disabilities to contribute to their
full potential. Avian Brands has provided disability-friendly facilities and ensured that accessibility is a priority in all aspects
of Avian Brands operations. This diversity not only reflects Avian Brands’ commitment to inclusion and equality, but also
enriches Avian Brands work environment with diverse perspectives and innovative ideas. By harnessing diverse perspectives,
Avian Brands is able to more effectively navigate challenges and adapt to the evolving business landscape. Further information
on employee demographics is described as follows: [GRI 3-3]
Employee Demographics [GRI 2-7, 2-8, 405-1] [POJK C.3]
2024* 2023* 2022*
Description
Male % Female % Male % Female % Male % Female %
Total Employees by Gender and Employment Status
Permanent
972 70.28 411 29.72 1,002 71.88 392 28.12 934 74.54 319 25.46
Employees
Non-Permanent
169 60.36 111 39.64 128 57.92 93 42.08 119 42.50 161 57.50
Employees
Outsourced 6,072 79.28 1,587 20.72 5,629 81.96 1,239 18.04 5,403 82.50 1,146 17.50
Total 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32 6,456 79.88 1,626 20.12
Total Employees by Gender and Workers’ Status**
Full-time Employees 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32 6,456 79.88 1,626 20.12
Total 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32 6,456 79.88 1,626 20.12
Total Employees by Gender and Education Level
Master’s Degree 19 54.29 16 45.71 20 63.33 12 36.67 17 69.57 1 30.43
Bachelor’s Degree 1,241 64.30 689 35.70 1,229 67.10 601 32.90 1,127 68.10 527 31.90
Diploma (D3) 195 60.56 127 39.44 188 62.79 112 37.21 171 62.18 104 37.82
≤High School and
5,758 81.82 1,279 18.18 5,321 84.19 999 15.81 5,140 83.89 987 16.11
Equivalent
Total 7,213 73.36 2,109 22.64 6,758 79.67 1,724 20.33 6,456 79.88 1,626 20.12
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PT Avia Avian Tbk • 2024 Sustainability Report
2024* 2023* 2022*
Description
Male % Female % Male % Female % Male % Female %
Total Employees by Gender and Age
18 – 24 Years Old 1,143 71.35 459 28.65 1,109 75.34 363 24.66 1,121 75.23 369 24.77
25 – 34 Years Old 3,709 76.49 1,140 23.51 3,428 78.80 922 21.20 3,283 79.09 868 20.91
35 – 44 Years Old 1,840 81.92 406 18.08 1,744 83.05 356 16.95 1,616 84.43 298 15.57
45 – 54 Years Old 460 82.44 98 17.56 430 84.48 79 15.52 405 82.48 86 17.52
>55 Years Old 61 91.04 6 8.96 48 92.31 4 7.69 31 86.11 5 13.89
Total 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32 6,456 79.88 1,626 20.12
Total Employees by Gender and Position
Board of Directors /
5 83.33 1 16.67 5 83.33 1 16.67 5 83.33 1 16.67
Executive-level
Deputy Director /
16 94.12 1 5.88 16 94.12 1 5.88 16 94.12 1 5.88
Executive-level
Manager / Senior-level 218 84.82 39 15.19 207 85.19 36 14.81 186 84.55 34 15.45
Supervisor / Mid-level 487 67.45 235 32.55 454 69.31 201 30.69 419 71.02 171 28.98
Staff / Entry-level 415 62.78 246 37.22 448 64.55 246 35.45 428 61.06 273 38.94
Outsourced /
6,072 79.28 1,587 20.72 5,629 81.96 1,239 18.04 5,402 82.50 1,146 17.50
Entry-level
Total 7,213 77.38 2,109 22.62 6,759 79.68 1,724 20.32 6,456 79.88 1,626 20.12
Notes:
* AVIA, TKTW, and TKBI; and
** All AVIA, TKTW, and TKBI employees are full-time employees and therefore there are no part-time employees.
Total Employee Positions Held by Male and Female Employees by Age in 2024
Levels of Position*
Total
Range of Age Entry-level** Mid-level Senior-level Executive-level***
Employees
Male Female Male Female Male Female Male Female
18 – 24 Years Old 1,135 449 8 10 0 0 0 0 1,602
25 – 34 Years Old 3,465 989 190 142 54 9 0 0 4,849
35 – 44 Years Old 1,528 321 201 64 106 20 5 1 2,246
45 – 54 Years Old 316 71 82 19 50 7 12 1 558
>55 Years Old 43 3 6 0 8 3 4 0 67
Notes:
* AVIA, TKTW, and TKBI.
** Include the number of staff level employees and outsourced employees; and
*** Includes the number of employees at Director and Deputy Director level.
The employee demographics table above illustrates the composition of Avian Brands’ total workforce, including direct
and indirect workers. Direct workers include permanent and non-permanent employees, while indirect workers consist of
outsourced employees.
The diversity and equality principles implemented in Avian Brands employee management, encompass all levels of organization,
including Manager-level employees and above. In 2024, female employees at the Manager and Deputy Director levels in AVIA,
TKTW, and TKBI account for 40 people or 14.60% of the number of employees in the position. Such data increased compared
to the previous year of 37 people. This achievement reflects Avian Brands’ ongoing efforts in promoting gender equality at all
organizational levels. Avian Brands believes that diversity at the managerial and executive levels enriches the decision-making
process, stimulates innovation, and reinforces a culture of inclusivity in Avian Brands. Information on the involvement of female
employees at the Manager and Deputy Director levels is further described below:
Female Employee Involvement at Manager and Deputy Director Levels
40 274
2024* 2023* 37 out of 260 Employees
out of Employees
Notes: 2022* 35 out of 237 Employees
* AVIA, TKTW, and TKBI.
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In addition to being reflected in the employee demographics, Avian Brands’’ commitment to diversity and equality has also
yielded positive results, as reflected in the absence of discrimination incidents during the reporting year. This success is a
testament to the effectiveness of Avian Brands’ anti-discrimination policies and our ongoing efforts to create an inclusive and
fair work environment. As no cases of discrimination were reported, Avian Brands did not implement any remediation measures
related thereto. This confirms the effectiveness of Avian Brands policies and procedures in preventing and addressing potential
discrimination, and reflects Avian Brands’ commitment to ensuring that every employee is treated with respect and equality.
This success represents the presence of a conducive work environment, as well as a result of Avian Brands’ proactive efforts in
promoting a culture of inclusiveness and equality. [GRI 406-1]
Employee Recruitment and Turnover
In line with implementation of diversity and equality principles, Avian Brands constantly conducts the entire recruitment
process transparently and free from any discrimination, and no recruitment fee or gender-specific criteria are applied in
the candidate selection. The recruitment process is selective, focusing on compatibility between job qualifications and
candidates’ competence. All qualified candidates will be given the opportunity to participate in the recruitment process,
through e-recruitment on Avian Brands’ website or various other job vacancy channels. [GRI 3-3]
To meet the needs for workforce, Avian Brands employs two recruitment systems, i.e. internal and external. Internal recruitment
includes promotions, mutations, and rotations, specifically at the permanent employee level. Employee mutation and rotation
processes are based on employee performance evaluation results for the intended position. Promotions, in particular, are based
on the superior’s assessment as well as a set of other assessments that measure an employee’s potential and performance.
On the other hand, external recruitment is conducted to meet the needs for workforce, aligned with the growth of the
organization. By bringing in external recruitment, Avian Brands is able to attract new talents that are suited to Avian Brands’
needs and standards. Both approaches ensure that Avian Brands can secure employees with the highest level of quality and
competence. [GRI 3-3]
Throughout 2024, the total number of permanent AVIA, TKTW, and TKBI employees successfully recruited, amounted to 206
people or 14.90% of total permanent employees a decrease compared to the previous year of 246 people. This decrease
mainly influenced by implementation of an ongoing succession and talent management program with a focus on expanding
strategic positions within Avian Brands. Meanwhile, the total number of outgoing permanent AVIA, TKTW, and TKBI employees
amounted to 218 people or 15.76% of total permanent employees, an increase compared to the previous year of 131 people.
This increase was mainly influenced by reorganization process taking place within Avian Brands as part of organizational
structure adjustment strategies. Further information on recruitment and employee turnover is outlined below:
Recruitment of Permanent Employees [GRI 401-1]
2024* 2023* 2022*
Description
Total % Total % Total %
Recruitment of Permanent Employees by Age
>50 Years Old 2 0.97 0 0 1 0.42
36 – 50 Years Old 45 21.84 209 84.96 53 22.27
18 – 35 Years Old 159 77.18 37 15.04 184 77.31
<18 Years Old 0 0 0 0 0 0
Total 206 100.00 246 100.00 238 100.00
Recruitment of Permanent Employees by Gender
Male 135 65.53 167 67.89 177 74.37
Female 71 34.47 79 32.11 61 25.63
Total 206 100.00 246 100.00 238 100.00
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2024* 2023* 2022*
Description
Total % Total % Total %
Recruitment of Permanent Employees by Operational Areas
AVIA
Surabaya 19 9.22 31 12.60 26 10.92
Sidoarjo 32 15.53 30 12.20 62 26.05
Serang 13 6.31 10 4.07 10 4.20
Cirebon 0 0 2 0.81 0 0
TKTW & TKBI
Area 1A North Sumatra 6 2.91 13 5.29 10 4.20
Area 1B South Sumatra 8 3.88 15 6.10 13 5.47
Area 2 Jabodetabekser 2 0.97 6 2.44 4 1.68
Area 3 West Java 7 3.40 11 4.47 13 5.46
Area 4 Central Java 15 7.28 8 3.25 10 4.20
Area 5 East Java 58 28.16 46 18.70 43 18.07
Area 6 Sulawesi 22 10.68 16 6.50 12 5.04
Area 7 Kalimantan 12 5.83 22 8.94 13 5.47
Area 8 Eastern Indonesia 12 5.83 36 14.63 22 9.24
Total 206 100.00 246 100.00 238 100.00
Turnover of Permanent Employees [GRI 401-1]
2024* 2023* 2022*
Description
Total % Total % Total %
Turnover of Permanent Employees by Age
>50 Years Old 16 7.34 11 8.40 3 1.52
36 – 50 Years Old 94 43.12 45 34.35 119 60.41
18 – 35 Years Old 108 49.54 75 57.25 75 38.07
<18 Years Old 0 0 0 0 0 0
Total 218 100.00 131 100.00 197 100.00
Turnover of Permanent Employees by Gender
Male 162 74.31 100 76.34 121 61.42
Female 56 25.69 31 23.66 76 38.58
Total 218 100.00 131 100.00 197 100.00
Turnover of Permanent Employees by Operational Area
AVIA
Surabaya 4 2.08 6 4.58 9 4.57
Sidoarjo 18 9.38 15 11.45 91 46.19
Serang 9 4.69 6 4.58 13 6.60
Cirebon 0 0 0 0 0 0
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2024* 2023* 2022*
Description
Total % Total % Total %
TKTW & TKBI
Area 1A North Sumatra 12 5.50 5 3.82 4 2.03
Area 1B South Sumatra 13 5.96 11 8.40 9 4.57
Area 2 Jabodetabekser 8 3.67 7 5.34 3 1.52
Area 3 West Java 10 4.59 9 6.87 10 5.08
Area 4 Central Java 20 9.17 7 5.34 16 8.12
Area 5 East Java 38 17.43 15 11.45 19 9.64
Area 6 Sulawesi 24 11.01 14 10.69 6 3.05
Area 7 Kalimantan 21 9.63 17 12.98 6 3.05
Area 8 Eastern Indonesia 15 6.88 19 14.50 11 5.58
Total 218 100.00 131 100.00 197 100.00
Turnover of Permanent Employees by Reason
Retirement 5 2.29 7 5.34 0 0
Resignation 94 43.12 73 55.73 94 47.71
Termination of Employment 81 37.16 42 32.06 22 11.17
Death 0 0 3 2.29 1 0.51
Change in Employment Status 38 17.43 6 4.58 80 40.61
Total 218 100.00 131 100.00 197 100.00
Turnover of Permanent Employees by Position
Deputy Director 1 0.46 0 0 2 1.02
Manager 33 15.14 19 14.50 16 8.12
Supervisor 128 58.72 83 63.36 72 36.55
Staff 56 25.69 29 22.14 107 54.31
Total 218 100.00 131 100.00 197 100.00
Notes:
* AVIA, TKTW, and TKBI.
This calculation of employee recruitment and turnover does not include outsourced employees due to the high fluctuation of
outsourced employees which is dependent on the increase or decrease in production.
Employee Competence Development [GRI 404-2] [POJK F.22]
Amid the evolving industry competition and business climate, Avian Brands recognizes the presence of excellent, competent,
dedicated and ethical HR as a critical factor. Therefore, Avian Brands formulates strategic policies for continuous employee
development. Avian Brands believes that focusing on improving employee competencies will improve internal business
processes as well as strengthen its overall performance and competitiveness. To realize this commitment, Avian Brands
implements various competence development programs, both technical and non-technical. Through this holistic approach,
Avian Brands aims to strengthen employees’ skills and knowledge, while encouraging innovation and development of
competitive products. In general, Avian Brands’ employee competence development program is aimed at 5 aspects as
described below: [GRI 3-3]
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Employee Competence Development Program [GRI 404-2]
Core Competency Training 1
Mandatory training for all employees, such as training on Corporate Values (CInTA), GCG, Code of Conduct,
and so on.
Technical Competency Training 2
Training aimed at improving the technical capabilities of employees in order to enhance their abilities and
performance in line with Avian Brands needs.
Generic Competency Training 3
Training to improve employees’ non-technical skills, such as effective communication, creative and
critical thinking, team building, and other skills related to individual personality capacity.
Leadership Competency Program 4
A program aimed at preparing employees to become leaders through a leadership ladder program.
Certification and Standardization Training 5
Training to ensure employees’ technical and specialized skills are standardized according to their
job functions.
In addition, Avian Brands provides programs and rewards to channel employees’ innovation and creativity, in the form of:
1. Internal Improvement Initiative - I3 (inter-department improvement program); and
2. Suggestion System - SS (individual improvement).
These programs are continual and evaluated annually, and serve as a key performance indicator value for each unit/section.
Avian Brands have also successfully ingrained our Value (CInTA) through the publication of the Avian Newsletter,
short video, and a series of other supporting programs. All employee activities guided by CInTA Value are always
highlighted in the Avian Newsletter in order to disseminate this Value across the organization. In addition, this program
also provides insight and updates about Avian Brands, such as employee promotion programs, new employee on
boarding, innovations, development programs, CSR, new product launching, culture campaigns such as safety campaign,
innovation campaign, etc, and ongoing and upcoming employee activities, and recent achievements. [GRI 404-2]
Avian Brands also has an Avian Development Program (“ADP”) and Leadership Acceleration Program (“LEAD”) that are
specifically designed to prepare and develop Avian Brands’ future leaders. The programs offer diverse learning opportunities,
ranging from in-class learnings, on-the-job activities, peer and mentor supports, aimed at cultivating graduates with a wide
range of accomplished technical and managerial skills, in line with the needs of Avian Brands. [GRI 404-2]
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Throughout 2024, the competence development programs that Avian Brands has successfully implemented amounted to 5
main programs with a total of 7,632 people or 81.92% of total employees. Further information is described as follows:
Average Employee Training Hours [GRI 404-1] [POJK F.22]
2024* 2023* 2022*
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
Employee Employee Employee
Average Training Hours by Gender
Male 7,208 113,673.25 15.77 6,754 104,540.97 15.48 6,451 44,868 6.96
Female 2,108 30,855.50 14.64 1,723 23,737.21 13.78 1,625 9,253 5.69
Total 9,316 144,528.75 15.51 8,477 128,278.18 15.13 8,076 54,121 6.70
Average Training Hours by Position
Deputy Director 17 133.00 7.82 17 107.50 6.32 17 167 9.79
Manager 257 5,442.50 21.18 243 6,235.35 25.66 220 8,992 40.87
Supervisor 722 12,848.75 17.80 655 18,008.25 27.49 590 15,398 26.10
Staff 8,320 126,104.50 15.16 7,562 103,927.08 13.74 7,249 29,564 4.08
Total 9,316 144,528.75 15.51 8,477 128,278.18 15.13 8,076 54,121 6.70
Notes:
* AVIA, TKTW, and TKBI.
Average Training Hours of the Board of Commissioners and the Board of Directors of AVIA
2024 2023 2022
Position Average Average Average
Total Total Total
Training Hours Training Hours Training Hours
Participants Participants Participants
per Member per Member per Member
The Board of
1 7.00 2 8.75 2 11.75
Commissioners
The Board of Directors 5 9.90 5 36.70 4 22.50
Total 6 9.07 7 28.71 6 19.42
Cost of Implementing Employee Competence Development
2,081.47
Million Rupiah 2024* 2023* 2,686.95
Notes: 2022* 1,137.02
* AVIA, TKTW, and TKBI.
Competence Development Related to Sustainability [GRI 2-17] [POJK E.2]
Avian Brands consistently strives to improve employee competence in understanding and implementing sustainability
principles. Through a holistic approach, Avian Brands designed a comprehensive set of development programs to enhance
each employee’s knowledge, skills, and experience related to sustainability. These programs include training, workshops,
and seminars organized both by Avian Brands internally, and by credible external partners with expertise in their respective
fields. This initiative is primarily aimed at ensuring that all Avian Brands employees are equipped with a deep understanding
of sustainability issues and can apply them effectively in every aspect of Avian Brands’ operations. Therefore, not only does
Avian Brands focuses on achieving short-term sustainability targets, but it also invests in long-term capacity building that
promotes overall business sustainability.
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Throughout 2024, Avian Brands has conducted various competence development programs for 2,697 participants or 28.93%
of AVIA, TKTW, and TKBI employees. The programs include 57 training themes with a total of 5,413 training hours. Further
information is described as follows:
Number of Total
No. Training Theme Participant Training
(Person) Hours
1. 5R (Concise (Ringkas), Tidy (Rapi), Clean (Resik), Neat (Rawat), and Diligent (Rajin) 367 719
2. 8 Waste 280 560
3. ISO 27001 auditor, 2022 version 1 7
4. Fire safety equipment (APAR) Awareness 126 282
5. Integrated ISOAwareness (ISO 9001, 14001, 45001, 50001) 50 150
6. BASF - Avian Sustainability Dialogue 5 7.5
7. Basic Safety of Gas Use 31 93
8. Technical Guidance on Environmental Protection and Management 1 8
9. Boosting Energy Efficiency Practices for the Industrial Sector (BENEFITS) 2 48
10. Carbon Footprint, Life Cycle Assessment, and PROPER 2 4
11. Scope 3 Emissions & GHG Verification 2 4
12. Hazardous Material and Chemical Spill Handling 19 32
13. ISO 27001 Awareness & Implementation 11 181.5
14. OHS Awareness 30 60
15. Work Motivation and OHS 301 301
16. Fire - Level D 2 54
17. Hazardous Waste Management 251 427
18. Systematic & Structured Management of Innovation in the Company (ISO 56002) 1 2.5
19. Improving Security Standards for Remote Work Environment (Zero Trust) 1 1.5
20. Crane Operator 1 36
21. Forklift Operator 49 94
22. Hazardous Waste Awareness 1 24
23. First Aid Awareness 16 32
24. Handling of Domestic Waste 11 22
Counseling and Services on Family Planning and Reproductive Health, and Prevention
25. 30 60
of Violence against Women in the Workplace
26. Chemical OHS Officer 1 48
27. First Aid Officers 5 135
28. Refreshment on First Aid Kit 55 135
29. Refreshment on Firefighting Team 21 57
30. Safety Driving & Riding 18 36
31. Safety Tank 11 88
32. Generator Operator Certification 1 32
33. Setting Your Sail on the Indonesia Carbon Trading Ecosystem Part 1 2 4
34. Socialization of 5R 30 30
35. Socialization of General Safety 6 12
36. Socialization of GHG and Energy 26 26
37. Socialization of Hepatitis 72 144
38. Socialization of Breast Cancer 38 76
39. Health Socialization of Diabetes 19 38
40. Health Socialization of Hypertension and Obesity 32 64
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Number of Total
No. Training Theme Participant Training
(Person) Hours
41. Health Socialization of Hypertension and its Preventions 31 62
42. Health Socialization of MPOX 63 126
43. Socialization of Environmental Management Committee 31 31
44. Socialization of Healthy and Hygienic Lifestyle 457 457
45. Sosialization of Safety Driving 38 46
46. Socialization of Metabolic Syndrome 70 111
47. Strategies for Achieving the Pillars of the Sustainable Development Goal 7 112
48. Green Industry Transformation Strategies 2 19
49. Sustainability 26 39
50. Sustainability Reporting Standards 1 2
51. Sustainability Strategies: Best Practices for ESG Framework and Roadmap 1 6
Toward Sustainable Prosperity Through Local Community Empowerment and
52. 2 6
Environmental Conservation
53. Webinar A Cutting-Edge Approach to Sustainability Reporting 2 6
Webinar in Celebration of OJK Anniversary: Transformation of Governance
54. 2 8
as a Pillar of Integrity
Webinar on CORES.KSEI System and e-BAE Next Generation, Latest Innovation
55. 1 2
for Digital Transformation in the Company
56. Awareness Training, ISO 27001:2022 17 119
57. Internal Audit, ISO 27001:2022 18 126
Total 2.697 5.413
In addition to conducting employee training, Avian Brands also actively conducts sustainability-related training for partner
companies, including suppliers and distributors, which are an important part of Avian Brands’ external stakeholders. Through
this socialization, Avian Brands ensures that its business partners understand and implement sustainability standards consistent
with Avian Brands’ commitments. This is intended to build harmony in sustainable business practices across the entire supply
chain, thereby supporting the achievement of broader sustainability targets and ensuring greater positive impacts on the
environment and society.
The HR Department regularly evaluates the effectiveness of all employee competence development programs to ensure they
remain effective and relevant in accordance with Avian Brands’ business condition and development. Continuous evaluations
allow Avian Brands to identify areas of success, challenges, and improvement, which in turn allows us to make necessary
adjustments to improve program results and efficiency. This process also enables Avian Brands to tailor its HR initiatives to Avian
Brands’ shifting business needs and strategies, to ensure that each program remains consistent with Avian Brands’ long-term
goals. With this evaluative approach, Avian Brands is committed to continuously improving the quality and effectiveness of
Avian Brands competence development programs, providing maximum support for employees, and ensuring that investment
in HR development fully contributes to the achievement of Avian Brands’ goals.
Performance Evaluation
Avian Brands conducts periodic employee performance evaluations to maintain and improve HR quality. This evaluation
process focuses on several aspects, particularly on performance achievement, work culture (CInTA), general competence,
work discipline, and leadership. In addition, Avian Brands also conducts technical competence assessments for all employees
to ensure that they have the skills and expertise that suit Avian Brands’’ needs. This evaluation is conducted thoroughly on
each employee by evaluating their respective skills and positions. For outsourced employees, performance assessments are
managed entirely by the partner companies that employ them, but still adhere to the standards Avian Brands has established.
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Additionally, Avian Brands has designed the 9 Grid Box Method to measure employee potential and performance and map
out talents. This approach helps Avian Brands design more appropriate and efficient development programs and make better
decisions regarding promotions, employee career development and succession planning. Avian Brands is committed to
providing fair opportunities in career paths, including promotions, transfers, and job rotations, to allow each employee to
progress according to their potential and performance.
Types of Employee Performance Evaluation
Competence Matrix Performance Appraisal Assessment
The process of measuring The process of measuring The process of measuring
technical competence fulfillment competence fulfillment to potential and performance is
and development plans to support support job functions, including conducted periodically using
technical job functions. performance achievements, assessment tools as a consideration
work culture (CInTA), general for granting promotion
competencies, work discipline, and talent mapping.
and leadership.
In 2024, all employees of AVIA, TKTW and TKBI have undergone performance evaluations. Avian Brands rewarded
employees who achieved the highest scores in the annual performance appraisal by giving special awards.
These awards not only recognize individual achievements but also serve as an encouragement for other employees to
keep improving their quality and productivity. Avian Brands believe that by motivating employees through these awards,
Avian Brands are able to foster a more competitive and performance-oriented work environment, as well as reinforce their
commitment to achieving better results in the future. By doing so, Avian Brands strives to cultivate a positive and sustainable
work culture that supports long-term growth and success for all employees and Avian Brands. [GRI 404-3]
Retirement Program [GRI 201-3, 404-2]
The retirement age for AVIA employees is 57 years for staff and 65 years for employees with positions above supervisor.
Meanwhile, for TKTW and TKBI employees, the retirement age for all employees is 57 years old.
Avian Brands upholds the normative rights of employees as stipulated in labor regulations in Indonesia, including pension
rights. Avian Brands administers a contributory pension plan for permanent employees managed by BPJS Employment.
The employees contribute 1% and Avian Brands contributes 2% of the employee’s basic salary to meet the required amount.
In 2024, the amount of contributions paid to such pension funds institutions amounted to IDR1,42 billion, an increase of 3.47%
compared to the previous year.
Remuneration
Avian Brands has implemented a fair and competitive remuneration policy as part of fair compensation to our
employees. Avian Brands offers competitive remuneration, both in the form of basic salary and allowances, to
attract and retain top talents. The remuneration amount is determined based on applicable regulations, internal
evaluation of alignment with industry standards, individual performance assessment, and each employee’s position.
Avian Brands constantly ensures a fair and equal remuneration system, free from discrimination based on gender, religious,
or racial factors. With an equal one-to-one (1:1) remuneration ratio between men and women, Avian Brands ensures there
is no pay gap for equivalent positions. The Board of Commissioners and Board of Directors also receive equal remuneration
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based on the achievement of predetermined KPIs. The Nomination and Remuneration Committee regularly oversees
Avian Brands’ remuneration policy to ensure proper implementation thereof in accordance with the principles of fairness.
With this policy, we are committed to creating an equitable work environment, to motivate employees to excel, and to support
the long-term success of Avian Brands. [GRI 3-3, 202-1]
Avian Brands constantly ensures that all remuneration, particularly basic salary, complies with the applicable laws
and regulations, in particular the Regional Minimum Wage (Upah Minimum Regional (“UMR”)) stipulated by the local
government in each operational area. Avian Brands is committed to offering basic salary that exceeds the minimum wage,
including for non-permanent employees, as a form of compliance with government regulations and concern for employees’
well-being. Information regarding the comparison between the lowest level of permanent employee salaries with the UMR, is
described as follows:
Comparison of AVIA Employee Wages of the Lowest Level
to the Regional Minimum Wage [POJK F.20]
The Ratio of the Lowest Wage
Lowest Wage
Regional Minimum of Permanent Employees to
of Permanent
Operational Area Wage Regional Minimum Wage
Employee
(IDR) [GRI 202-1]
(IDR)
(%)
Surabaya 5,000,000 4,725,479 105.81
Sidoarjo 4,725,479 4,638,582 101.87
Serang 4,720,000 4,560,895 103.49
Comparison of Salaries of Male and
Female Employees at the Same Level of Position [GRI 405-2] 1:1
Such data comparing the lowest permanent employee salary to the UMR, shows that the basic salary that Avian Brands
determines has exceeded the UMR standard that applies in each operational area. Avian Brands also has achieved
this in both TKTW and TKBI, where the ratio of the lowest permanent employee salary to the UMR, exceeds 100%.
This achievement is an indication of Avian Brands’ commitment to ensuring that the remuneration provided is both legally
compliant and competitive in the labor market. This reflects Avian Brands’ dedication to providing fair compensation
in compliance with the regulations, with the primary aim of improving employee well-being and motivation across
the organization. Avian Brands believes that a competitive wage system is key to attracting and retaining top talents,
as well as motivating employees to achieve maximum performance.
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In line with the foregoing, Avian Brands also gives additional rewards in the form of annual bonuses to employees at certain
levels, as a token of appreciation for their performance achievements. In addition to bonuses, Avian Brands provides a range
of additional benefits designed to support employees’ needs and improve their quality of life. Information on the benefits
received by employees is described as follows:
Benefits Received by Employees of Avian Brands Based on Employment Status [GRI 401-2]
Permanent Employees Contracted Employees
Type of Benefits
Male Female Male Female
Basic Salary Yes Yes Yes Yes
Healthcare Social Security Yes Yes Yes Yes
Employment Social Security Yes Yes Yes Yes
Religious Holiday Allowance Yes Yes Yes Yes
Annual Incentive* Yes Yes No No
Meal Allowance and Transport Yes Yes No No
Overtime Pay and Night Shift* Yes Yes Yes Yes
Insurance* Yes Yes No No
Notes:
*Only valid for employees of certain levels.
Annual Total Compensation Ratio [GRI 2-21]
The annual total compensation ratio is an indicator for us to assess the balance between the highest remuneration
received by the employees, and the average compensation in Avian Brands. We actively evaluate this ratio to ensure that
compensation fairly reflects employee contributions and is in line with Avian Brands’ long-term business objectives.
In determining the compensation ratio, we take into account Avian Brands’ overall performance as well as individual
contributions, to ensure a proportionate remuneration structure. Compliance with prevailing laws and regulations is also a key
focus to maintain transparency and accountability in Avian Brands management.
In 2024, the ratio of the highest annual remuneration received by employees to the average remuneration of employees
was 28.73 times with an increase in ratio of 1.56 times.
Policy against Child Labor and Forced Labor [GRI 408-1, 409-1] [POJK F.19]
Avian Brands consistently ensure that our HR management emphasizes compliance with labor regulations at all times,
including in terms of employees’ minimum age. This is also stated in Avian Brands’ Sustainability Policy on point 6 of
Social, Labor, and Human Rights Pillar, i.e. “Ensuring workers are above 18 years of age and that working hours and wage
payments are in accordance with applicable laws and regulations and that there is no human trafficking.” Avian Brands strictly
prohibits child labor practices by stipulating that the minimum age of prospective employees in Avian Brands is 18 years old.
As of the end of 2024, Avian Brands has successfully maintained a child labor-free work environment, both in our operational
areas and in Avian Brands supply chain. [GRI 3-3, 408-1]
In addition, Avian Brands has also established an anti-forced labor policy to create a work environment free from
all forms of forced labor and human rights violations. In this regard, we have identified and prohibited a number of.
This is also stated in Avian Brands’ Sustainability Policy on point 12 of Social, Labor, and Human Rights Pillar, i.e. “Respecting the
right of individuals to act without coercion and to maintain control over their personal information, as long as it does not relate
to or impact the Company.” In this regard, Avian Brands has identified and prohibited activities that constitute forced labor as
described below:
1. Recruitment by Force: Prohibiting any form of employee recruitment that involves threats, coercion, slavery or fraud;
2. Confiscation of Identity Documents: Prohibiting the taking, damaging, or hiding of employees’ original identity documents;
3. Charging for Recruitment Costs: Avian Brands does not charge recruitment fees to prospective employees;
4. Unlawful Profits from Recruitment: Not receiving any benefits, material or non-material, from employee recruitment
activities;
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5. Unauthorized Deposits: Refusing all forms of deposits Avian Brands hopes to build stronger and more sustainable
from employees, except those required by law; working relationships, where each employee plays an
6. Loans that Bind Employees: Avian Brands does not important role in fostering better working conditions and
provide loans with the condition of binding employees strengthening collective progress. [GRI 2-30, 407-1]
in an employment relationship as collateral;
7. Contract Restrictions: Not forcing employees to sign In addition to providing flexibility for employees’
contracts that restrict their right to terminate the participation in trade unions, Avian Brands also provides
contract; a forum for trade unions within AVIA to conduct regular
8. Restrictions on Employee Movement: Employees are meetings as a means of communication between
free to move around during working hours, including management and employees. Such meetings are
toilet or refreshment breaks, without restrictions; regularly held every six months to facilitate constructive
9. Forced Overtime: There is no coercion to work overtime dialog to discuss important issues related to employee
or punishment for those who refuse; and welfare and Avian Brands’’ policies. Throughout 2024,
10. Inhumane Work Targets: Avian Brands does not set any these meetings have covered a wide range of topics,
work targets that require employees to work without including the formation of a new association structure,
breaks or without leaving the workplace. supervision of association activities, and optimization of the
use of the association budget.
This policy is an integral part of Avian Brands’ efforts to
maintain operational integrity and sustainability in each of Additionally, Avian Brands also ensures that the rights
Avian Brands business lines. [GRI 3-3, 409-1] [POJK F.19] and obligations between Avian Brands and employees
are clearly stipulated in the Company Regulations.
Avian Brands Regulations serve as the main guideline
Freedom of Assembly and Association in practicing transparent and fair working relationships
[GRI 407-1] in accordance with the prevailing laws and regulations.
Therefore, every Company employee can work with a sense
Avian Brands constantly maintains a good relationship of security and comfort.
with all employees. A manifestation of this commitment
is to give employees the freedom to join labor unions.
This is also stated in Avian Brands’ Sustainability Policy Policy on Respect of Human Rights
on point 9 of Social, Labor, and Human Rights Pillar, i.e.
“Upholding the freedom of assembly, expression, and We recognize the importance of protecting Human
participation in labor organizations/unions in accordance Rights (“Human Rights”) in all of Avian Brands’ operations.
with the prevailing laws and regulations as well as providing This commitment is manifested through the Business
room to negotiate and consult with the company.” Ethics and Code of Conduct, which expressly governs the
By allowing freedom of association, Avian Brands is relationship between Avian Brands and the Company
committed to creating an inclusive work environment, personnel. This serves as an important guidance to ensure
where every employee feels valued and actively participates that every individual within Avian Brands environment
in dialog with management. [GRI 3-3] is treated fairly, with dignity and equality, without
discrimination of any kind. In line with the foregoing,
This is also aligned with human rights principles and point 1 of the Social, Labor and Human Rights Pillar
applicable labor regulations, which protect freedom in Avian Brands’ Sustainability Policy states “Ensuring
of association and assembly. As of the end of 2024, that all personnel within the Company are treated fairly
the number of AVIA permanent employees who are and with dignity based on human rights principles”.
members of labor unions reached 515 people in the This policy has been socialized to all employees, to ensure
SPI Union of Association of Family of PT Avia Avian Tbk. their understanding of basic human rights principles as well
(Serikat SPI Paguyuban Keluarga Besar PT Avia Avian Tbk) as their responsibility in creating a safe environment and
which was registered on March 18, 2008 and 52 people respecting individual rights.
in the PB.GB.IK Union of Sarbumusi PT Avia Avian Tbk.
Which was registered with the relevant agencies on
March 10, 2008, representing 31.12% of the total permanent
employees of AVIA. By respecting freedom of association,
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Avian Brands also communicates information on Human so the total working time remains 40 hours per week.
Rights through induction activities for new employees. This arrangement provides employees in the office
We also understand that Human Rights protection applies administration department with two days of rest per week,
not only in Avian Brands’ internal environment, but also while employees in the operations department get one day
in its relationship with suppliers. As part of Avian Brands’ of rest per week.
commitment to sustainability and social responsibility,
we ensure that suppliers of Avian Brands comply with Meanwhile, in certain work units and employee levels, AVIA
human rights principles. Avian Brands cooperates with implements a shift work system, whose arrangements are
suppliers in ensuring that their entire production and adjusted to work conditions. With this arrangement, if there
operational processes do not involve Human Rights is excess working time, it will be calculated as overtime work
violations, such as labor exploitation or discrimination. which compensation and benefits are in accordance with
In addition, Avian Brands emphasizes transparency and labor regulations regarding overtime. In addition, Avian
supports the suppliers in implementing policies that respect Brands also provide opportunities for employees to rest at
workers’ rights and creating a safe and equitable workplace. certain hours. [GRI 409-1] [POJK F.19]
To ensure Human Rights protection throughout Minimum Notification regarding Changes
Avian Brands’ operations, we have implemented a in the Work Environment
transparent and safe complaint mechanism through the
Whistleblowing System (“WBS”). Any complaints received In an effort to create harmonious industrial relations
through the WBS system will be processed fairly and between the Company and employees, we always build
objectively, in accordance with human rights principles, and maintain effective communication. With regard to
to ensure that individual rights are protected and human highly significant operational changes, such as closure,
rights violations are swiftly and appropriately addressed. expansion, merger, new opening, outsourcing of operations,
With these measures, we are committed to maintaining restructuring, or sale of all or part of the organization that
the safety of Avian Brands’ operations while respecting and may impact the employees, particularly mass termination
protecting individual rights, in accordance with the CInTA of employment, the Company always complies with the
values that Avian Brands upholds. Implementation of this prevailing laws and regulations, such as Government
policy has yielded positive results, with no human rights Regulation No. 35 of 2021 on Fixed-Term Employment
violations occurring within Avian Brands environment Agreement, Outsourcing, Working Time and Rest Time, and
during the reporting year. Termination of Employment. [GRI 3-3]
Operating Hours of Avian Brands Maternity Leave [GRI 401-2, 401-3]
Avian Brands’ operating hours are regulated to ensure Avian Brands implements a maternity leave policy for
work efficiency while providing adequate rest for all female employees and dispensation for male employees
employees. At AVIA, employees work for 8 hours per day who accompany their spouses during childbirth, in
with 5 working days a week, bringing the total working accordance with the provisions stipulated in Law No. 13
time to 40 hours per week. This arrangement gives AVIA of 2003 on Manpower, which has been amended by Law
employees two full days of rest each week, allowing them No. 11 of 2020 on Job Creation (Omnibus Law). Avian Brands
to enjoy work-life balance. As for TKTW and TKBI, working provides maternity leave of 90 calendar days to female
hours are adjusted to the duties and responsibilities of each employees, which can be used to prepare for childbirth
section. Employees in the office administration department as well as to get ample time for postpartum recovery.
work for 8 hours per day, also with 5 working days per Avian Brands also provides special leave for 2 consecutive
week, which means they also fulfill a total of 40 weekly working days for male employees to accompany their
working hours. Meanwhile, for operational employees in spouses during childbirth. This policy is a manifestation
various branches, working hours are divided into 7 hours of Avian Brands’ commitment to encourage both parents’
per day from Monday to Friday, and 5 hours on Saturday, active role in childcare, while ensuring a balance between
work and family life. [GRI 3-3]
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Throughout 2024, 99 of AVIA, TKTW, and TKBI employees (excluding outsourced employees) applied for maternity leave
and 40 male employees applied for dispensation. Of these, 42 or 42.42 % of the female employees have returned to work
in the reporting year and the rest will return in the coming year, at the end of leave period. As for the male employees,
all of them have returned to work in the reporting period. Further information is described as follows:
Total Employees Who Took Dispensation/Maternity Leave [GRI 401-3]
2024* 2023* 2022*
Description
Male % Female % Total Male % Female % Total Male % Female % Total
Employees entitled to
dispensation/maternity 40 28.78 99 71.22 139 63 48.46 67 51.54 130 26 52.00 24 48.00 50
leave
Employees exercising
dispensation/maternity 40 28.78 99 71.22 139 63 48.46 67 51.54 130 26 52.00 24 48.00 50
leave
Employees returning to
work during the reporting
period following their 40 48.78 42 51.22 82 63 70.00 27 30.00 90 26 59.09 18 40.91 44
dispensation/maternity
leave
Employees returning
to work following their
dispensation/maternity
leave, who are still 40 48.78 42 51.22 82 63 70.00 27 30.00 90 26 59.09 18 40.91 44
employed 12 months
thereafter
Notes:
* AVIA, TKTW, and TKBI.
Employment Disputes and Complaints [GRI 2-16]
Employees may submit employment complaints to their supervisor, through the complaint form they can access 24/7, or
by filling in the suggestion box provided at each plant as stipulated in the Complaint Management SOP (AA-HRD-SOP-28).
Avian Brands warrants the right of all employees to submit complaints without threats or intimidation.
The settlement of complaints is facilitated by the Human Resource & General Affair (“HRGA”) Department by appointing a
Complaints Team that will take further action to find solutions to the complaints, including escalation to the Bipartite
Cooperation Institution if necessary. As a proactive measure, the Company also conducts a yearly employee complaint survey.
Anti-Harassment and Non-Discrimination Policy
We recognize that there is a risk of discrimination, harassment, and sexual violence against all employees, both within
Avian Brands environment and at Avian Brands suppliers. To prevent and protect all employees from harassment,
Avian Brandse impose strict sanctions on anyone found guilty of harassment. This is also stated in Avian Brands’ Sustainability
Policy on point 4 of Social, Labor, and Human Rights Pillar,i.e., “Creating a work environment that is safe, comfortable, motivating,
respectful, and free from all forms of harassment.” And point 7, i.e., “Providing equal employment opportunities and treatment
regardless of gender, race, religion, color, ethnicity, class, and non-discrimination to persons with disabilities”.
Avian Brands also builds a culture of mutual respect and cooperationn in line with the Business Ethics and Code of Conduct
that regulates Ethics among the Company Personnel. This policy applies to all individuals in Avian Brands, to protect
both male and female employees within Avian Brands, as well as to protect all employees from unwanted treatment and
to report incidents related to such harassment. Anyone found to have committed serious harassment will be dismissed,
and the same applies to representatives of suppliers and partners.
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Reports of harassment can be submitted through Avian Brands’ complaint box or survey, as well as the Whistleblowing
System. Each report will be verified and followed up professionally by the Internal Audit Unit and Complaints Team.
Regarding report submission, Avian Brands also guarantees the confidentiality of the reporting party and always provides
support or assistance for victims. In the last 3 years, Avian Brands has not received any reports related to harassment that
occurred in Avian Brands’ work environment.
Human Resources Management Evaluation
Avian Brands actively conducts periodic evaluations of all HR management programs, aimed to ensure that each initiative and
policy implemented is consistent with best practices in similar industries and is able to achieve the predetermined targets and
objectives. Through systematic evaluation, Avian Brands is able to identify potential gaps in program implementation and
find opportunities to improve and enhance its effectiveness. The evaluation process addresses various aspects, starting from
revising or creating SOPs and other HR-related policies. Avian Brands ensures that every employee management policy and
program not only supports short-term business needs, but also contributes to the achievement of Avian Brands’ long-term
goals. Thus, Avian Brands is able to keep the needs of our employees aligned with the evolving demands of our business.
In addition, these periodic evaluations allow Avian Brands to anticipate changes in the industry environment and ensure that
Avian Brands HR management programs remain relevant and adaptive. Avian Brands is committed to continuously developing
innovative approaches to employee management, in order to maintain Avian Brands’ position as an industry leader. Throughout
2024, Avian Brands has formulated and reviewed the effectiveness of SOPs, amounting to 6 SOPs, 4 standards, and 81 forms.
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Occupational Health and
Safety Management
As part of Avian Brands’ commitment to fair and responsible labor management, we prioritize the implementation
of Occupational Health and Safety (“OHS”) principles to ensure a proper, safe and healthy working environment.
Determined to achieve zero accident target, Avian Brands consistently implements comprehensive safety policies, procedures
and standards in all operational areas of Avian Brands. We strive to ensure that every employee has full access to information
on potential workplace hazards as well as appropriate prevention and response measures. The employees’ right to proper OHS
facilities and their active participation in OHS-related activities are Avian Brands top priorities. By providing clear information
and necessary support, Avian Brands strive to create a work environment free from concerns about health or safety risks.
[GRI 3-3] [POJK F.21]
Prevention of incidents, whether minor, moderate, severe or fatal, remain the primary focus of Avian Brands. We believe that
every incident is preventable through a proactive approach that includes regular training, risk assessments and continuous
evaluation of OHS practices. Through this strategy, Avian Brands seeks to minimize potential occupational accidents and
illnesses as well as prevent adverse impacts on employee productivity. In Avian Brands’ efforts to maintain OHS standards,
we involve our employees in an ongoing process of evaluation and improvement. Regular training and simulation programs
are designed to ensure that all team members understand and comply with safety procedures. Avian Brands also conducts
internal and external audits to ensure our compliance of our OHS policies with applicable laws and regulations and best
industry practices. With this holistic approach, Avian Brands is committed to creating a work environment that supports
long-term well-being, safety and productivity. We believe that an investment in OHS is an investment in the success
and well-being of all Avian Brands employees, as well as in the sustainability of Avian Brands’ operations as a whole.
[GRI 3-3] [POJK F.21]
Occupational Safety and Health Management System [GRI 403-1, 403-4, 403-8]
As a guide to the commitment and direction of implementing the Occupational Safety and Health Management
System (“OHSMS”), Avian Brands established Avian Brands Sustainability Policy, specifically the Social, Labor, and
Human Rights Pillars, which reads:
1. Providing safe and healthy working environment conditions to eliminate hazards and reduce OHS (Occupational Health
and Safety) risks;
2. Ensuring proper and regular participatory consultation processes with all stakeholders; and
3. Providing funds and commitment to support the improvement of knowledge, skills, and competence of company
personnel.
This policy is a manifestation of Avian Brands’ commitment to protect all employees, partners, and visiting guests.
The implementation of OHSMS is always carried out in accordance with international standards, laws and regulations, and
relevant global safety standards. Avian Brands has also developed and implemented SOPs concerning work environment
control. In line with that, Avian Brands also strives to continuously build an OHS-conscious culture in all lines and
production units through briefings, promotions, socialization, and safety talks that are implemented in daily operations.
[GRI 3-3]
Avian Brands’ management also at all times provides the necessary resources to implement OHSMS effectively and
comprehensively. By implementing the Management System and establishing the OHS Organization, we ensure sufficient
competence and resources are available in relation to OHSMS. Evaluation of the effectiveness of OHSMS implementation
is also carried out periodically to ensure that all of Avian Brands’ standards have been implemented properly. In 2024,
internal audit and inspection activities have been carried out in the form of safety patrols and evaluation of OHS and
environmental awareness. In line with that, Avian Brands has also obtained ISO 45001:2018 on Occupational Health and
Safety Management System since 2020, to ensure optimal management of OHSMS in accordance with the standards.
[GRI 3-3]
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Management of Occupational Health and Safety Management System
Avian Brands’ OHSMS management is the Director’s primary responsibility. The Director is fully responsible for ensuring
effective implementation of OHSMS and its compliance with established standards. In its implementation, the Director is
supported by the Occupational Health and Safety Committee (“OHSC”), acting as a supervisory and advisory group regarding
OHS policies throughout Avian Brands’ work environment. With OHSC’s support, the Director is able to effectively direct
and supervise all OHS initiatives, conduct regular risk assessments, and implement necessary corrective actions to improve
workplace safety. More detailed information about Avian Brands’ OHSMS management structure is described as follows:
Chairman
Robert Christian Tanoko
(Chief Operating Officer)
Deputy Chairman
Iwan Sigit
(Deputy Operational Director)
Secretary
Indra Jaya Kurniawan
(EHS Manager)
EHS Coordinator
Eko Hajar P.
(QAS Manager)
Pump
Emergency Firefighting Health & Chemicals Emission
Floor Warden Security Electrical Operation First Aider
Response Team Environmental Handling Control
Coordinator Coordinator Coordinator & Hydrant Coordinator
Coordinator Coordinator Coordinator Coordinator Coordinator
Coordinator
Amir Miftakul
Budi Santosa Muchtarom Indranila Adry Permana Maria Nicolas Hendrik P
David Johan Machmud Ainur Rofiq Himmah
(Prod. Sahri (Deco (HRGA (Eng. (Maintenance
(QC SPV) (Legal (Eng. SPV) (Paramedic
Manager) (EHS Staff) Manager) Manager) Manager) Manager)
Manager) Staff)
Avian Brands ensures that all OHSC members possess the competence and expertise that are relevant to Avian Brands’ needs.
Selection of members is intended to support the achievement of Avian Brands’ main objective of creating a safe, healthy
and accident-free work environment. The OHSC regularly holds quarterly meetings to evaluate and improve existing OHS
programs. Each meeting’s main agenda includes discussing OHS programs, evaluating OHSMS findings and development, and
consultation on employees’ participation and feedback on OHS issues that emerged during the period. The OHS programs
developed and implemented by the OHSC include all levels of employees regardless of gender. With this approach, Avian
Brands ensures that all employees, from the highest to the lowest level, are equally informed and have equal access to
applicable safety practices.
Hazard Identification, Risk Assessment, and Investigation [GRI 403-2]
In an effort to effectively implement OHSMS, parts of Avian Brands’ focus is on hazard identification, risk assessment, and
development of action plans aimed at preventing occupational accidents and illnesses. The process begins by identifying
potential hazards across operational areas with particular attention to hazards related to chemical materials and processes.
Once hazards are identified, Avian Brands proceeds with a risk assessment to determine the extent to which they may affect
employee health and safety. This assessment allows Avian Brands to understand risk levels and impacts, allowing us to develop
appropriate action plans to control and mitigate these risks. This approach relies on a risk control hierarchy that involves
elimination, substitution, engineering, administration, and the use of personal protective equipment.
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In addition, Avian Brands has established a comprehensive procedure for reporting and investigating any
workplace accidents. This procedure includes steps for incident documentation, cause analysis, and development of
effective corrective actions. By thoroughly investigating each incident, Avian Brands strives to prevent future recurrences
and ensure proper implementation of all corrective actions. In addition to preventing incidents, Avian Brands’ commitment
to risk assessment and hazard management also focuses on establishing a robust safety culture. Avian Brands ensures
that all employees are involved in this process through training and effective communication. With these measures,
Avian Brands aims to create a safe and healthy working environment and minimize the impact of potential hazards on
occupational health and safety.
Risk hazard identification and control within Avian Brands’ operations are further described as follows:
Hazardous Activity [GRI 403-7]
Polymerization/ esterification process
Location Type of Hazard Personal Protective Equipment (“PPE”)
RDI – Resin • Overheating reaction process; • Boots;
• Hot chemicals; • Safety goggles;
• Water bath/heating mantle; and • Respirator;
• Fire. • Rubber gloves; and
• Work apron.
Elimination and Control
• Providing active fire extinguishing system in the form of smoke detector and water sprinkler;
• Installing local exhaust;
• Using insulating materials to reduce heat;
• Providing appropriate working facilities, training, and socialization of the Safety Data Sheet (“SDS”) on each
hazardous chemical and controlling its use in accordance with the SDS; and
• Providing workplace chemical storage and handling facilities and emergency equipment.
Operating the cutting machine
Location Type of Hazard Personal Protective Equipment (“PPE”)
Metal Prod – • Cut or clamped hands; and • Safety gloves; and
Kerinci • Struck by falling heavy objects • Safety goggles.
(cutting sheet).
Elimination and Control
Provide an emergency button on each cutting machine.
Cleaning processing tanks (work in confined spaces)
Location Type of Hazard Personal Protective Equipment (“PPE”)
Paint Prod- • Exposure (contact) to chemicals; • PPE special dust mask; and
Merapi • Slipping/falling; • Safety goggles.
• Exposure to dust and chemicals; and
• Airborne hazards.
Elimination and Control
• Maximizing the dust collector function;
• Providing spill control kit (by a minimum of 2 people); and
• Using the gas detector.
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Fire Prevention and Control
Potential fire in a paint manufacturing plant is a risk factor that must be eliminated to ensure employee health and
safety as well as the sustainability of Avian Brands’ business. The fire risks may come from product lines, raw materials, liquids,
equipment, electrical currents, and others. To prevent and control these risks, Avian Brands has implemented several measures
as described below:
1. Identifying fire hazards and risks using the Hazard Identification Risk Assessment and Determining Control (“HIRADC”)
method;
2. Providing active fire protection facilities (fire extinguisher, hydrant, fire alarm system, and sprinkler) based on the mapping
of potential fire hazards analysis in accordance with applicable regulatory standards, as well as passive protection in the
form of evacuation routes and building access;
3. Establishing an Emergency Response Team (“ERT”), i.e., a Workplace Firefighting Unit, in accordance with Minister of
Manpower Regulation No. 186/1999;
4. The ERT conducts fire safety training periodically every 6 months;
5. Conducting periodic testing of electricity, lightning rods, and monitoring utility; and
6. Conducting periodic evaluations by carrying out inspections and audits to eliminate fire risks.
Health Facilities and Access [GRI 403-3, 403-6] [SASB RT-CH-320a.2.]
To anticipate employees’ exposure to occupational illnesses, Avian Brands makes various routine efforts, which include:
Participating Avian Brands’ employees in health insurance, including insurance from the
1 Social Security Organizing Agency (Badan Penyelenggara Jaminan Sosial or “BPJS”) in
accordance with employment regulations, both the BPJS Health and BPJS Employment.
Organizing annual medical check-ups that include physical examination, spirometry,
2 thorax, complete urine, complete blood, and audiometry. Since 2023, Avian Brands
included all outsourced employees in the medical check-up programs according to work
exposures and risks.
Providing a First Aid (“First Aid”) Station that specifically provides first aid treatment
3 in the event of a workplace accident or an 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 expert assistance, namely one doctor and one nurse.
4 Participating employees in private health insurance programs.
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Participation in BPJS Health is not only limited to employees, but also includes
enrolling employees’ family members in the National Health Insurance
Program - Healthy Indonesia Card (Jaminan Kesehatan Nasional – Kartu
Indonesia Sehat or “JKN-KIS”) in accordance with the provisions of Law
No. 24 of 2011. Since 2023, the program has covered all employees and their
family members.
Building a Culture of Occupational Health and Safety [GRI 403-5]
Avian Brands regularly organizes various training programs and activities to enhance employees’ awareness and
understanding of OHS aspects. These efforts are designed to strengthen employee preparedness and to ensure safe
and healthy work environment at all times. Avian Brands also conducts regular emergency response training to improve
our preparedness for emergency situations. Firefighting training using Light Fire Extinguishers (Alat Pemadam Api Ringan or
“APAR”) is conducted every three months, while training with fire hydrants is conducted every six months at the Sidoarjo plant
and Serang plant. To practice evacuation skills, Avian Brands also organizes evacuation drills every six months aimed at testing
employee response in a fire or earthquake situation. Training on handling hazardous waste and toxic material spills is also
conducted every six months to ensure that employees are prepared to deal with such situations effectively.
In addition to training programs, Avian Brands’ commitment to building an OHS culture is also realized through various
additional initiatives. Regular briefings are held to discuss the latest OHS issues, while the 5R training is implemented to
maintain workplace hygiene and order. Socialization of OHS procedures and policies is also conducted regularly to ensure that
every employee understands and complies with the established OHS standards. Avian Brands has also installed visible hazard
signs in all work areas as well as CCTV surveillance to detect and address potential risks. The use of PPE is also required for all
employees as a preventive measure against occupational risks.
With these numerous initiatives, Avian Brands continuously strives to create a strong and sustainable OHS culture, in which
every individual plays an active role in maintaining workplace health and safety. Avian Brands believes that this approach will
not only reduce the risk of occupational accidents and diseases, but also improve overall employee well-being and productivity.
Occupational Health and Safety Performance [GRI 403-9, 403-10] [SASB RT-CH-320a.1.]
Avian Brands has implemented OHSMS with consistency and discipline to ensure a safe and proper working environment for
all employees. In addition to optimizing the role of OHSC as a specific organ responsible for OHS management, all employees
are also involved and responsible for their own health and safety, as well as potential accidents in their surroundings.
Avian Brands continues to strive to record positive OHS performance in achieving zero accident and zero fatality targets.
The Total Recordable Injury Rate (“TRIR”) in 2024 increased/decreased compared to the previous year. We also
managed to record a 13.04% decrease, compared to the previous year, in the Number of Fatality for all employees of
Avian Brands and its Subsidiaries, including contract employees. A total of 34 accidents or 85.00%, fell under the category of
transport incidents.
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In addition, Avian Brands also recorded 1 case of process safety incident, namely a fire in the solvent raw material storage
warehouse. Upon the incident, the Ministry of Environment and Forestry (“ MoEF”) has conducted testing around the
scene, to ensure that there is no adverse impact of environmental contamination. Results thereof are presented in the
Statement of Completion of Emergency Mitigation S.30/PLTTDLB3/TD/PLB.6.4/B/01/2025 issued by the MoEF, stating
that there is no contamination of potentially harmful materials to the environment. Thus, Avian Brands can assure that the
environmental impact of the incident is well controlled and all mitigation measures have been implemented in accordance
with established standards. Avian Brands has taken full responsibility for the incident and continues to take corrective
measures to ensure no similar incident occurs in the future. Information on OHS performance data over the past 3 years is
described as follows:
Occupational Health and Safety Performance Data [GRI 403-9, 403-10] [SASB RT-CH-320a.1., RT-CH-540a.2.]
Performance Indicator 2024* 2023* 2022*
Employees who obtained MCU (People) 1,019 1,380 1,127
Total Recordable Injury Rate 1.57 2.16 2.01
Number of Fatality 0 0 0
Fatal Incident Rate 0 0 0
Total Recordable Illness Rate (TRIR)* 0 0 0
Total Recordable Incident Frequency Rate
2.05 2.69 1.74
(TRIFR)**
Percentage of Serious Work Accidents (%) 0 0 0
Number of Accident (People) 40 46 34
Frequency of Work Accidents 0.0043 0.0054 0.0042
Number of Transport Incidents (People) 34 36 34
Process Safety Incidents 1 0 0
Total Manhours Worked (Hours) 18,751,324 16,871,767 14,959,320
Notes:
* AVIA, TKTW, and TKBI;
** The used equation applies a constant of 1,000,000.
Investment in Occupational Health and Safety
1.307
Million Rupiah 2024 2023 886
*Including Covid-19 management costs.
2022 841*
Complaints on Labor and OHS Issues [GRI 2-25]
Complaints on issues related to employment and occupational health and safety can be submitted through a ballot box or
a complaint survey periodically conducted by Avian Brands. Every incoming complaint will be processed and followed up
properly and professionally. In addition, labor 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
meetings every 6 months.
During the last 3 years, Avian Brands has not received any reports related to labor issues and occupational health
and safety. [GRI 2-16]
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Community
Social
Development
“Avian Brands Peduli program is
a manifestation of Avian Brands’
commitment to promoting the
growth, independence, and welfare
of the surrounding communities and
environment. By emphasizing social
and environmental development, Avian
Brands strives to positively impact the
communities and the environment.
This commitment signifies Avian Brands’
continued focus on achieving the
Sustainable Development Goals and
concrete contributions to independent
communities and thriving environments.”
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COMMUNITY SOCIAL DEVELOPMENT
Avian Brands Achievements [GRI 3-3]
195
A total of 195 Avian Brands Peduli CSR Programs, an increase
of 98.98% compared to the 98 programs in the previous year.
25 Pillars of Education 164 Pillars of Environment 6 Pillars of Disaster Response
Avian Brands Peduli CSR program has reached numerous regencies/cities across Indonesia.
Painting of Painting of Painting of
Petik Laut Program Education Facilities Places of Worship Public Facilities
11
Regions
19
Regions
45
Regions
13
Regions
IDR 2.34 billion allocated for Avian Brands Peduli CSR.
Community Development Strategy
We understand that the presence of Avian Brands in the in order to minimize adverse impacts and ensure that its
community must provide benefits to improve the welfare business activities are not only safe, but also positively
of the local communities. Based on the Business Ethics contribute to the surrounding communities. [GRI 3-3]
and Code of Conduct governing Responsibility to the
Community and Environment as well as on the Sustainability Avian Brands’ commitment to community and social
Strategy under the Social, Labor and Human Rights Pillar contribution is materialized through an integrated
point 10 which states that “Avian Brands respects the approach that harmonizes sustainability performance
rights of local communities, including indigenous and from economic, environmental, social, and governance
traditional communities” and point 11 which states that aspects. Avian Brands believes that economic success is
“Avian Brands participates in community empowerment”, not only measured by profitability figures, but also by the
we continue to be actively involved in implementing extent to which it can provide tangible benefits to society.
various initiatives to empower communities, address Therefore, Avian Brands consistently strives to create jobs,
social, economic and environmental challenges, and bring develop useful innovative products, and undertake its
about positive changes in various regions in Indonesia. Corporate Social Responsibility (“CSR”) consistent with
These social responsibility and community development sustainability principles. [GRI 3-3]
activities extend beyond the immediate vicinity of the
plants, reaching out to wider communities in various regions Avian Brands conducts social mapping studies in
of Indonesia. [GRI 3-3] collaboration with verified research consulting agencies.
These studies aim to obtain an analysis of community
Avian Brands understands that the operations of its plants, needs, vulnerable group classification, and explanation of
particularly in paint manufacturing, potentially bring social problems, in order to find program recommendations
adverse impacts to the surrounding communities, such that match the specific needs of the surrounding
as noise, pollution, and so on. Avian Brands is well aware communities to ensure concrete and sustainable
of these risks and is committed to always complying positive impacts. With this initiative, Avian Brands also
with applicable rules and regulations and implementing seeks to continue supporting the achievement of the
sustainable business practices. Every aspect of Avian Sustainable Development Goals in line with the national
Brands’ operations is carried out with utmost caution and global development agenda. In this context,
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the “Avian Brands Peduli” program serves as the main platform for Avian Brands to channel its social responsibilities,
with a focus on education, environment, and disaster response. The social activities carried out include community
empowerment, capacity building, infrastructure building, and charity. This program embodies Avian Brands’ commitment to
supporting the welfare of Indonesian communities and strengthening its relationship with its stakeholders. [GRI 3-3]
Community empowerment activities can indirectly make significant economic contributions. In the operational area
of the Serang Plant, Avian Brands has opened an employee canteen. To provide meals, Avian Brands has collaborated
with the surrounding communities to deliver a wide variety of food and beverages for purchase, by placing them for sale
in the employee canteen. This collaboration is a manifestation of Avian Brands’s support for MSMEs to boost the economy
around its operational areas, particularly businesses owned or run by women. [GRI 3-3]
Implementation of Avian Brands Peduli program is the duty of the CSR Committee, which is directly responsible to the Board of
Directors. Further information on the management structure of Avian Brands Peduli program is described as follows:
Organizational Structure of CSR Committee
Vice President Director
Deputy Marketing Director
Marketing Manager
Marketing Communications & CSR SPV
Marketing Communication & CSR Staff
We place particular emphasis on the selection and assignment of individuals responsible for the management of
Avian Brands’ CSR activities. We ensure that those involved in management possess the competence and expertise that fits
the needs of Avian Brands. This is not only essential to effectively carry out Avian Brands Peduli programs, but also crucial in
ensuring that each CSR initiative is consistent with the established goals and objectives. In the process, the CSR Committee
is tasked with ensuring that Avian Brands Peduli programs are designed and implemented by considering the needs of the
surrounding communities, thus resulting in tangible and sustainable impacts. The CSR Committee is also responsible for
measuring and evaluating the effectiveness of these programs, ensuring that each activity is in accordance with established
standards and achieves the desired targets. [GRI 3-3]
With this approach, we are committed to ensuring that Avian Brands’ contribution to the communities not only makes
direct positive impacts, but is also well integrated in its overall sustainability strategy. Through professional and
responsible management, we strive to improve the alignment between Avian Brands’ CSR programs and the real needs
of the communities, so that Avian Brands Peduli can continue to provide meaningful benefits to the communities that
Avian Brands serves. [GRI 3-3]
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COMMUNITY SOCIAL DEVELOPMENT
CSR Pillar Avian Brands Peduli
Education Environment Disaster Response
Avian Brands believes that Avian Brands realizes that the Avian Brands continues
higher quality HR would result potential development of to assist those in need according
in a competent and highly the environment is directly to the requirements and
competitive community. proportional to the opportunity conditions of each incident.
Therefore, the following three to minimize environmental
points are the Company’s key impacts. Avian Brands believes
foundation in improving that these would help
the quality of HR. bring the community
a better standard of living.
Quality of Education Improvement on Disaster Mitigation
Scholarship the Environment Blood Donation
Training and Skills Tourism Development
Minimizing Impacts on
the Environment
Supporting the Community
Pillars of Education [GRI 413-1] [POJK F.25]
Throughout 2024, the Company carried out various CSR programs related to supporting the development of quality human
resources in order to create competent communities with high competitiveness. Some of these programs are described as
follows:
Avian Brands x Yayasan Peduli Anak Sumbawa, West Nusa Tenggara
Avian Brands provided donations to Yayasan Peduli Anak in the construction
of their second children foundation in Sumbawa, West Nusa Tenggara.
As part of its commitment to continue supporting educational equality and
opportunities for children in Indonesia, Avian Brands also took part in donating
to support the successful development of the foundation. These donations
included Sunguard Emulsion premium exterior wall paint, Cat Tembok Avitex
Gold (multifunctional exterior and interior paint), Avian Cat Kayu dan Besi,
Base Paint (Lenkote Alkali Resisting Primer and Avitex Alkali Resisting Primer),
and Avian Cat Paving, with a total of 2,633 kg of paint and a total funds of
IDR161.23 million.
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Pillars of Education [GRI 413-1] [POJK F.25]
Painting the Buduran Vocational High School 3, East Java
Avian Brands provided assistance to Buduran Vocational High School 3,
East Java to maintain and improve the comfort of various school facilities and
infrastructure. The assistance provided consisted of 60 pails of Cat Tembok
Avitex Exterior in 25 kg packaging, 58 pails of Avitex Interior in 25 kg packaging,
29 gallons of Avian Cat Kayu dan Besi in 5 kg packaging, 36 gallons/set of
Avian Cat Paving in 5 kg packaging, and 25 cans of Avian Thinner A in 1 liter
packaging. The total assistance provided by Avian Brands in this program
amounted to IDR120.97 million.
Internship Program
Avian Brands organized an internship program for vocational school students
and university students. In addition, Avian Brands also supported the
internship program organized by the Ministry of Education and Culture of
the Republic of Indonesia, by offering internship opportunities through the
Certified Internship and Independent Study (Magang dan Studi Independen
Bersertifikat or “MSIB”) program. It aims to help students improve their
competence and prepare for the workforce. Through this program, participants
gain hands-on job experience and mentorship from professionals at Avian
Brands. In addition to technical skills, the program also helps develop
communication, teamwork, and problem-solving skills. Throughout 2024,
Avian Brands accepted interns consisting of 9 vocational high school students
and 16 university students with an allocated fund of IDR197.30 million.
Scholarship Program for Excelling Employees’ Children & Tanoko School Scholarship
Avian Brands launched a scholarship program aimed at encouraging educational
advancement among Avian Brands’ extended family and the surrounding
communities. In 2024, Avian Brands awarded scholarships to 25 elementary
school, middle school, and high school students, who were children of
Avian Brands’ employees, who achieved excellent performance by placing in the
top 3 of their class. This scholarship is a gesture of Avian Brands’ appreciation for
their enthusiasm and effort in achieving academic excellence.
In addition, Avian Brands also granted scholarships for orphans at
Tanoko School, with a total of IDR228.00 million in tuition fee assistance.
These scholarships are expected to provide better access for children in need to
continue their education and reach their highest potential.
Apart from the above programs, Avian Brands has also implemented various other programs to help improve
the quality of educational facilities in various regions in Indonesia. Among such programs are:
1. Painting of Sports Pitch at Surabaya Vocational High School 13, East Java;
2. Mural with the Christian University of Indonesia (Universitas Kristen Indonesia or “UKI”), East Jakarta;
3. Painting of Klakah Public School in Lumajang, East Java;
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Pillars of Education [GRI 413-1] [POJK F.25]
4. Painting of Tennis and Basketball Courts of Vocational High School 3, Semarang
5. Painting of Yayasan Harapan Mulia Banyumas, Central Java;
6. Painting of Medan Ecumenical Theological Seminary, North Sumatra;
7. Painting of Medan Rehobot Christian Theological High School, North Sumatra;
8. Painting of Gegerbitung Middle School 2 in Sukabumi, West Java;
9. Painting of Purwokerto Christian Primary School 2, Central Java;
10. Painting of Istana Hati Middle School in Binjai, North Sumatra;
11. Painting of Santa Agnes Kindergarten in Merauke, South Papua;
12. Painting of Ciodeng Elementary School in Bogor, West Java with London School of Public Relations (“LSPR”);
13. Painting of Tennis and Basketball Courts of Semarang Vocational High School 3, Central Java;
14. Painting of Pangkalpinang City Middle School 1, Bangka Belitung Islands;
15. Painting of Minu Dedawang School, Bawean, Gresik, East Java;
16. Painting of Gegerbitung Satu Atap Middle School 3, Sukabumi, West Java;
17. Mural with UTY Campus, Yogyakarta;
18. Painting of Santo Yusup Orphanage in Cianjur with UMN Campus, Cianjur, West Java;
19. Painting of RYDHA Tahfidz Qur’an Middle School, Tangerang, Banten; and
20. Painting of Nagrog Elementary School, Cicalengka, Bandung, West Java.
Pillars of Environment [GRI 413-1] [POJK F.25]
Throughout 2024, the Company carried out various CSR programs related to supporting the improvement of environmental
potential, in order to minimize environmental impacts and develop tourism in local communities. Some of these programs
are described as follows:
Kampung Berseri Program at Wadungasih Village
In managing environmental impacts, Avian Brands has involved the
community through various initiatives, among which is the Kampung Berseri
(Bersih dan Lestari) (Clean and Sustainable Village) empowerment program
intensively carried out in Wadungasih Village, Buduran, Sidoarjo. In 2024,
Avian Brands focused on continuing the community empowerment programs
that had been successfully carried out in the previous year. Considering the
improved waste utilization for maggot cultivation that has been in progress,
in 2024, Avian Brands provided additional assistance by adding catfish
cultivation mediums. In addition, Avian Brands also continued the urban
farming crop diversification program on different lands. Avian Brands
also focused on improving waste management in Wadungasih Village.
Through the infrastructure revitalization program, Avian Brands hopes to
improve the waste management of Wadungasih Village so that it can reduce the
volume of waste going to the landfill. In supporting this program, Avian Brands
also procured segregation bins for organic and inorganic waste. In terms of
competence, Avian Brands also provided advanced training for environmental
cadres on waste processing at the Waste Bank. This year, a community
development program was also carried out in the form of establishing a
Collective Business Group (Kelompok Usaha Bersama or “KUBE”) for the
processing of catfish and processing of moringa leaves. In addition to improving
the food security of Wadungasih Village, this program is also expected to provide
a new source of income for the residents of Wadungasih Village. By the end of
2024, KUBE has been able to launch independent business groups and increase
community income. Avian Brands also actively participates in supporting
waste management at Wadungasih Village. Among the activities it carried out
was to provide furnace and chimney assistance to support the operations of
the Material Recovery Facility (TPST) of Wadungasih Village.
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Pillars of Environment [GRI 413-1] [POJK F.25]
Community Engagement for Planting and Tending of Trees on the slopes of Mount Arjuno
Avian Brands carries out a CSR program that focuses on environmental
preservation by involving the community in planting and tending trees
on the slopes of Mount Arjuno. The program is part of the environmental
protection initiatives to increase the area’s forest cover, prevent erosion, and
preserve the mountainside ecosystem. Through a participatory approach, the
local community is invited to contribute to the reforestation process and also
empowered to care for the trees, thus creating a double impact of preserving the
environment while providing educational value to the surrounding community.
CSR Program of Jogging Track & Car Park Canopy Construction
The CSR Program of Jogging Track & Car Parking Canopy Construction
was carried out in RW 04 of Binangun Residences, Wadungasih, Sidoarjo.
This program aims to improve the quality of public facilities in the
neighborhood. The construction of the jogging track is expected to encourage
people to exercise more, while the construction of the car park canopy will
provide comfort and protection for parked vehicles. This program highlights
the commitment of Avian Brands to creating a more comfortable, healthy,
and friendly environment for the community.
Petik Laut Program
Avian Brands recognizes the crucial role of the fishing communities in Indonesia’s economy, given that a significant
portion of the country consists of maritime areas. As a form of appreciation and support, Avian Brands consistently
sets Petik Laut as a priority program that is held annually. The Petik Laut is a traditional ceremony that has been passed
down for generations and holds profound value for coastal communities. By participating in the preservation of this
tradition, Avian Brands contributes to protecting cultural heritage laden with spiritual values and respect for nature, as
well as strengthening the relationship between Avian Brands and the coastal communities. In the Petik Laut program,
Avian Brands also provides assistance related to the maintenance of fishing boats as the main instrument for their
continued livelihood.
Throughout 2024, Avian Brands supported the Petik Laut events in various regions in Indonesia as described below:
1. Petik Laut at Ketapang Harbor, Manokwari, West Papua;
2. Petik Laut at Pagatan Beach Festival, Batulicin, South Kalimantan;
3. Petik Laut at Pelabuhan Ratu, Sukabumi, West Java;
4. Petik Laut and Painting of Rickshaw at Pelabuhan Doom, Sorong, Southwest Papua;
5. Petik Laut at Namosain Beach, Kupang, East Nusa Tenggara;
6. Petik Laut at Kwanyar Barat, Bangkalan, East Java;
7. Petik Laut at Kaduara Village, Pemekasan, East Java;
8. Petik Laut at the Fishermen Community Festival of Bahari Nusantara Jamarang Village, Makassar, South Sulawesi;
9. Petik Laut at Kuansing Taluk Kauntan Kota, Rengat, Riau Islands;
10. Petik Laut at Labuan Bajo, Ruteng, East Nusa Tenggara;
11. Petik Laut at Labuhan Lusa, Gresik, East Java; and
12. Petik Laut of Ship Painting at Al Baido Harbor, Kumai, Central Kalimantan.
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Pillars of Environment [GRI 413-1] [POJK F.25]
Painting of Places of Worship
In addition to CSR activities for fishermen in the Petik Laut program, Avian Brands also has other regular CSR programs
in the form of donating paints to places of worship, in support of social and religious activities of the community
as well as other public facilities and infrastructure. This program aims to help repair and enhance places of worship
facilities, thus creating a more comfortable and peaceful atmosphere for worshipers in performing religious activities.
Through this initiative, Avian Brands hopes to contribute to the preservation and beautification of places of worship,
while strengthening social and spiritual bonds within the community. Several CSR programs to enhance public places of
worship that Avian Brands successfully realized throughout 2024 are described as follows:
1. Painting of Baitul Huda Mosque and Nurul Huda Musholla, Pekalongan, Central Java;
2. Painting of Jami’ Nurul Iman Mosque, Situbondo, East Java;
3. Painting of Tuan Ma and Tuan Ana Chapel, Larantuka, East Nusa Tenggara;
4. Painting of GKMI Syaloom Sea Church, Manado, North Sulawesi;
5. Painting of St. Maria Imakulata Church, Tarakan, North Kalimantan;
6. Painting of Suara Kebeneran Injil Church (“GSKI”), Palangkaraya, Central Kalimantan;
7. Painting of Muhajirin Mosque, Berau, East Kalimantan;
8. Painting of Baitul Ihsan Mosque, Al-Ikhlas Mosque, and Annur Kasiak Musholla, Payakumbuh, West Sumatra;
9. Painting of Babul Jannah Mosque, Lhoksemawe, Aceh;
10. Painting of Miftahul Abrar Mosque, Bulukumba, South Sulawesi;
11. Painting of Al-Muhajirin Mosque, Bekasi, West Java;
12. Painting of Almuklis Mosque, Central Lampung, Lampung;
13. Painting of Al-Mustharrah Musholla, Al-Khairat Mosque, Al-Hijra Musholla, Nur Hidayah, Nur Hidayah 2, and Nur Ikhlas
Musholla, Pekanbaru, Riau;
14. Painting of Nurul Huda Mosque, Darul Falah Mosque, Al Hikmah Mosque, and Darussalam Mosque, Palembang,
South Sumatra;
15. Painting of GMIM Ruth Matungkas Church, Manado, North Sulawesi;
16. Painting of GPDI Alfa Omega Molompar Church, Manado, North Sulawesi;
17. Painting of Miftahul Huda Mosque, Bandar Lampung, Lampung;
18. Painting of Al-Mukhtar Mosque and Mujtahidin Mosque, Blora, East Java;
19. Painting of Jannatul Firdaus Mosque, West Sumatra ;
20. Painting of Al Muhibbin Mosque, Mojoanyar, Jombang, East Java;
21. Painting of Imam Zamzun Mosque, Malang, East Java;
22. Painting of Al Hidayah Mosque, Bulukumba, South Sulawesi;
23. Painting of Padang Belimbing Grand Mosque, Nagari Koto Sani, Padang, West Sumatra;
24. Painting of Arrohim Mosque, Padangsidempuan, North Sumatra;
25. Painting of GpdI Pagarawan Church, Pangkalpinang, Bangka Belitung Islands;
26. Painting of Nurul Safiah Mosque, Bulukumba, South Sulawesi;
27. Painting of Fransiskus Xaverius Church, Dumai, Riau;
28. Painting of Al-Masthur Mosque, Bogor, West Java;
29. Painting of Al-Muhajirin Musholla and Nurul Ikhsan Musholla, Pademangan, North Jakarta, Jakarta;
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Pillars of Environment [GRI 413-1] [POJK F.25]
30. Painting of Jami An-Nur Mosque, Palembang, South Sumatra;
31. Painting of Jami Al Ikhlas Mosque, Padangsidempuan, North Sumatra;
32. Painting of Samaduha Musholla, Gunung Putri, Bogor, West Java;
33. Painting of Al-Ikhlas Halilulik Mosque, Atambua, East Nusa Tenggara;
34. Painting of Prapatunggal Musholla and Rabah Bawean Mosque, Gresik, East Java;
35. Painting of Rhoudatal Jannah Mosque, Depok, West Java;
36. Painting of Al-Shirotol Mustaqim Mosque, Muara Teweh, Central Kalimantan;
37. Painting of Al-Qadri Mosque, Samarinda, East Kalimantan;
38. Painting of Miftahul Huda Mosque, Banjarmasin, South Kalimantan;
39. Painting of Al-Misbah Mosque, Purwokerto, Central Java;
40. Painting of Nurus Shobah Mosque, Sampit, Central Kalimantan;
41. Painting of Darul Muhtadin Mosque, Batulicin, South Kalimantan;
42. Painting of Agani Mosque, Palangkaraya, Central Kalimantan;
43. Painting of Wihdatul Ummah Mosque, Bontang, Sangat, East Kalimantan; and
44. Painting of St. Peter Lempo Catholic Church, and Rantealla Congregation Toraja Church, Palopo, South Sulawesi.
45. Painting of Padang Balimbing Grand Mosque, Nagari Koto Sani, West Sumatra;
46. Painting of Jami Nurul Hidayah Mosque, Banten;
47. Painting At-Taqwa Mosque, Al-Khoziny Mosque, Al-Khudaimiyah Mushollah through FKUB, Sidoarjo, East Java;
48. Painting of Al-Ikhlas Mosque, Leuwi Limus Sub-district, Banten;
49. Painting of St. Andreas Catholic Church in Porong, Sidoarjo, East Java;
50. Painting of St. Peter Lempo Catholic Church, Rantealla Congregation Toraja Church, South Sulawesi;
51. Painting of St. Mikael Catholic Church, Surabaya, East Java;
52. Painting of Santa Maria Annuntiata Catholic Church, Sidoarjo, East Java; and
53. Painting of HKBP Waru Church, Jawi Wetan Christian Church, Sidoarjo, East Java.
In addition to places of worship, paint assistance was also provided to support the improvement of the quality of public
facilities and infrastructure. We conducted 76 activities, some of which are described as follows:
1. Paint donation to Tambun Orphanage, Bekasi Regency, West Java;
2. Paint donation to Kemala Bhayangkari Foundation, Jakarta;
3. Paint Donation to Bukit Harimau Tourist Area, Batam, Riau Islands;
4. Painting of Caruban City, Madiun, East Java;
5. Paint Donation to Pratama Muhammadiyah Clinic in Cirebon City, West Java;
6. Mural Event with Belanak Mural Community, Padang, West Sumatra;
7. Painting of the Zoo, Surabaya, East Java;
8. Painting of Bambu Runcing Surabaya, East Java; and
9. Paint donation to Kodiklatal TNI AL, Krembangan, Surabaya, East Java.
10. Painting of Military Police Sub Detachment V/4-1, Surabaya, East Java.
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COMMUNITY SOCIAL DEVELOPMENT
Pillars of Disasters Response [GRI 413-1] [POJK F.25]
Throughout 2024, Avian Brands has implemented various CSR programs related to providing assistance to the victims of
natural disasters in need. Some of these programs are described as follows:
Disaster Response to the Flood in Kudus, Central Java
Avian Brands provided relief to the residents of Kudus, Central Java who were
affected by the floods. The relief was provided in the form of 400 cartons
of mineral water, 200 cartons of instant noodles, and 200 packs of rice each
weighing 5 kg. The total donation provided by Avian Brands in this relief
amounted to IDR47.68 million.
Disaster Response to Flash Flood, West Sumatra
Avian Brands provided relief to communities in the West Sumatra region that
were hit by flash floods due to high rainfall in several areas. The relief was
provided in the form of basic necessities, such as mineral water, instant noodles,
rice, eggs, and other supplies to victims at the two shelters. The total donation
provided by Avian Brands in this relief amounted to IDR49.97 million.
Blood Donation Activity
As a form of concern for the surrounding communities in need of blood,
each year Avian Brands also actively organizes blood donation activities for
employees. Throughout 2024, Avian Brands has conducted 4 blood donation
activities in January, April, July, and October, with 477 employees participating.
This program is a form of Avian Brands’ concern for the surrounding community,
particularly for those in need of blood.
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PT Avia Avian Tbk • 2024 Sustainability Report
Corporate Social Responsibility
Programs Implementation Costs
(in million Rupiah)
CSR Program 2024 2023* 2022
Education 562 354 447
Environment 1,669 1,620 1,430
Disaster Response 113 21 61
Other CSR Activities 0 0 40
Total CSR Cost 2,344 1,995 1,978
* Data restated.
Total Corporate Social Responsibility Programs Activities
Program 2024
195 2023 98 2022 27
Concern and Empowerment
of Local Community
Avian Brands is committed to contributing to the welfare of the surrounding communities through various social concern and
empowerment programs. While Avian Brands’ operational areas are not located on lands or areas belonging to indigenous
communities, we continue to ensure that our presence and business activities provide positive impacts to the surrounding
communities. This commitment is reflected in point 10 and 11 of the Avian Brands Sustainability Policy, which state:
“Respecting the rights of local communities, including indigenous and traditional communities,
as well as participating in community empowerment.” [GRI 3-3]
As a manifestation of its social responsibility, Avian Brands actively conducts community empowerment programs, such as
skills training, local economic improvement, as well as social and environmental activities. We also ensure that our business
operations respect the rights of the surrounding communities and that there are no incidents that adversely affect them.
During the reporting period, Avian Brands did not record any incidents of violation of the rights of local communities in our
operational areas. Going forward, we will continue to strengthen our community empowerment initiatives and ensure that
every business activity is aligned with sustainability values, and contributes to the social and economic development of
the surrounding communities
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COMMUNITY SOCIAL DEVELOPMENT
Feedback on Corporate Social
Responsibility Programs [GRI 2-25] [POJK F.24]
We are committed to ensuring that all CSR programs that received is processed with strict and professional
Avian Brands realizes are always conducted responsibly, procedures. If necessary, we will organize in-person
while ensuring their compliance with applicable laws discussions with relevant parties to discuss the issues and
and norms. To support this principle, we provide an open develop appropriate resolution measures.
channel for all stakeholders to submit reports or complaints
if they find indications of non-compliance of Avian Brands’
CSR programs with applicable ethics, integrity or norms. Due to this commitment and proactive attitude, over
We also receive complaints about operations that may impact the past 3 years, Avian Brands has not received any
the surrounding communities beyond environmental issues. material and significant complaints related to the
CSR programs. Furthermore, all CSR programs carried
As part of this effort, we regularly conduct regular visits out by Avian Brands do not have significant adverse
and meetings with communities to discuss issues related to impacts on local communities, either actual or potential.
the operations of Avian Brands. We always maintain good Instead, Avian Brands’ CSR programs are able to provide
relations with the communities around our operational significant and sustainable benefits to the community,
areas, including the Head of RT, the Head of RW, and and we will keep striving to increase this contribution
local Sub-district Officials. These visits aim to hear to the welfare of communities around Avian Brands on
and accommodate reports and aspirations from local an ongoing basis. [GRI 2-16]
communities, ensuring that every voice is heard and
followed up with the utmost concern. Every complaint
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PT Avia Avian Tbk • 2024 Sustainability Report
Sustainability Report Responsibility
Statement of Members of the Board of Commissioners and the Board of Directors
on the Responsibility for the 2024 Sustainability Report of
PT Avia Avian Tbk
We, the undersigned, hereby declare that all information in the 2024 Sustainability Report of PT Avia Avian Tbk
(the “Company”) has been completely presented and we shall be fully responsible for the correctness of contents
in the Company’s Sustainability Report.
This statement is hereby made in all truthfulness.
Surabaya, March 12, 2025
The Board of Commissioners,
Hermanto Tanoko Mohammad Noor Rachman Soejoeti
President Commissioner Independent Commissioner
The Board of Directors,
Wijono Tanoko Ruslan Tanoko
President Director Vice President Director
Robert Christian Tanoko Kurnia Hadi Sinanto Angelica Tanisia Jozar
Director Director Director
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Written Verification from Independent Party
[GRI 2-5] [POJK G.1] [CDSB REQ-12]
The Sustainability Report has gone through the assurance process by an independent assurance institution, namely
Decar Verite Asia, based on AA1000 Assurance Standard (“AA1000AS”) with Type 2 - Moderate Assurance level.
The report includes verification of data on environmental, social and governance performance, recorded in the Avian Brands
Sustainability Report.
Independent Assurance Statement
No. DECAR-IAS/019/III/2025
Provided by Decar Verite Asia
On specified disclosures within the scope of work, included in PT Avia Avian Tbk 2024 Sustainability Report.
To: PT Avia Avian Tbk Stakeholders
As an independent licensed provider of sustainability assurance services, Decar Verite Asia has been engaged by PT Avia
Avian Tbk (“Avian Brands”) to provide independent assurance on the information reported in the PT Avia Avian Tbk’s
Sustainability Report 2024 (“the Sustainability Report”) for the period beginning on 1st January 2024 and ending on 31st
December 2024.
Objective Decar Verite Asia
The objective of this assurance is to provide an independent Evaluating the content of the Sustainability Report,
opinion on Avian Brands's qualitative and quantitative assessing collected evidence on the agreed-upon subject
information within the scope of work, as well as their matter and criteria, in accordance with the terms of
supporting management system, as stated in the reference agreed upon with Avian Brands.
Sustainability Report. The assurance work was conducted
within the define scope and limitations; therefore, this Methodology
statement is not intended to serve as a basis for interpreting
The team undertook the following activities to render their
the sustainability or overall performance of Avian Brands.
opinion:
- Conducted an initial review of the material topics in
Scope
the Sustainability Report to generate a list of evidence
Decar Verite Asia conducted a Type 2 assurance engagement needed to ensure accuracy and credibility;
for all material topics reported in the Sustainability Report. - Engaged with individuals responsible for managing the
Data and information within the specified disclosures, material topics;
including but not limited to, commitment, initiatives, and - Evaluated the management systems to perform data
performance, were assured to a Moderate Level of collection, compilation, calculation, reporting, and
Assurance. The procedures included evaluating the specified validation;
disclosures and assessing samples of evidence to verify the - Verified the information and evidence as regards the
adherence, reliability, and quality of the information against references and criteria used;
criteria as stated below. - Communicated the recommendations to provide an
opportunity for corrective action;
Reference and Criteria - Reviewed the final content of the Sustainability
Report;
Decar Verite Asia performed the assurance in accordance
- Prepared the statement letter and management
with AA1000 Assurance Standard v3 (2020). The criteria
letter, followed by the necessary approval as per Decar
used include the AA1000AP Standard (2018) and the
Verite Asia’s assurance protocols.
standards/regulation referenced in the Sustainability
Report, namely:
Limitations
- Regulation of Indonesia Financial Service Authority:
POJK No.51/2017 and SEOJK No.16/2021; Decar Verite Asia planned and performed the work to obtain
- GRI Standards 2021; all the information and explanations deemed necessary to
- SASB Resource Transformation - Chemical. provide a basis for rendering a conclusion at a Moderate
Level of Assurance. The assurors reviewed governance
Responsibilities documents and relevant data, and performed limited
recalculations on specific data sets through risk-based
PT Avia Avian Tbk
sampling. These processes enabled Decar Verite Asia to
Preparing the data in accordance with generally accepted reduce the risk of error in its conclusions but does not
reporting practices. This responsibility also includes ensuring reduce the risk to zero. Decar Verite Asia does not assure
the accuracy and completeness of the information reported, financial data and information as Avian Brands has engaged
implementing and maintaining internal controls relevant to with other parties to verify or audit the financial statements.
the preparation of the report, ensuring the performance This assurance also does not include GHG verification. It is
data are fairly stated in accordance with applicable based solely on Avian Brands' internal calculations, which
standards, as well as ensuring the data and information are were reviewed using a sampling-based approach.
not edited or amended in any way after assurance.
Page 1 of 2
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PT Avia Avian Tbk • 2024 Sustainability Report
Statement of Competency and Independence Sustainability (QAS) department responsible for driving the
implementation of its sustainability strategy. We also value
Decar Verite Asia is an independent licensed provider of
that Avian Brands has calculated its organizational emission
assurance services. Our team of experts possesses the
of scope-1, scope-2, and scope-3, though it has not yet been
technical expertise, competency, and extensive experience
independently verified.
necessary to conduct assurance engagements on
environmental, social, and various other topics in
Impact
accordance with the AA1000 Assurance Standard. No
member of the assurance team has a business relationship Avian Brands has established the processes to identify,
with Avian Brands beyond this assignment. Decar Verite Asia monitor, measure, evaluate, and manage its material
conducted this assurance engagement independently and impacts. For instance, Avian Brands has certified its paint
impartially with no conflicts of interest. products with Singapore’s Green Label Certification. As of
2024, 34 paint products have been certified and the sales
Adherence to AA1000 Accountability Principles Standard volume of Singapore's Green Label-certified products
(2018)
reached 51.96 tons or 30.21% of the total paint sales volume
Decar Verite Asia has concluded that the specified in the architectural solutions operations segment. Hence,
disclosures within the scope of assurance, as stated in the Decar Verite Asia can confirm that Avian Brands has applied
Sustainability Report, adhere to the AA1000 Accountability the principle of impact.
Principles Standard (2018).
Inclusivity POJK No.51/2017 and SEOJK No.16/2021
Avian Brands has implemented appropriate identification of The disclosure provided in the Sustainability Report align
significant stakeholders based on the AA1000 Stakeholder with the disclosure requirements outlined in POJK
Engagement Standard. Avian Brands has also implemented No.51/2017 and SEOJK No.16/2021.
ISO standards that include the identification of issues and
Adherence to GRI Standards 2021
impacts from a stakeholder perspective. Therefore, Decar
Verite Asia can confirm that Avian Brands has applied the Decar Verite Asia can confirm that the disclosures are in line
principle of inclusivity. Moving forward, Avian Brands may with Avian Brands’s claim that the Sustainability Report has
consider the results of impact identification holistically in been prepared with refference to the GRI standards. The
determining material topics. disclosures of management approach for material topic in
general are fairly disclosed. The principles to achieving
Materiality quality sustainability reporting have been applied.
Supporting documents were adequately presented during
Avian Brands has identified its material topics by considering
the assurance.
its organizational context and engaging stakeholders
through the distribution of questionnaires for assessment. SASB Resource Transformation - Chemical
The results of this material topic assessment were mapped
according to their level of materiality. Based on this process, While some information remains challenging to disclose, the
Decar Verite Asia can confirm that Avian Brands has applied Sustainability Report has, overall, provided sustainability
the principles of materiality. Moving forward, Avian Brands disclosures and metrics in alignment with the SASB
may consider adopting the GRI standards comprehensively Standard.
to further enhance the determination of material topics. Conclusions
Responsiveness Based on the methodology and activities performed within
the scope of assurance, nothing has come to our attention
Avian Brands has demonstrated the principle of that the specified disclosures as included in the
responsiveness in the context of sustainability as a chemical Sustainability Report are materially misstated, The
industry, particularly in addressing climate change and Sustainability Report provides appropriate and fair
promoting a culture of a safe and healthy work environment representation, aligned with AA1000AS V3 (2020) and
by implementing the OHS Management System. Avian Accountability’s Principles (2018). This conclusion reduces
Brands also has appointed Quality Assurance and the risk of error, but does not reduce the risk to zero.
Bogor, 5th March 2025
Signed on behalf of Decar Verite Asia
Corey Pernieda
Managing Director
Decar Verite Asia
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PT Avia Avian Tbk • 2024 Sustainability Report
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investor.relations@avianbrands.com
191
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PT Avia Avian Tbk • 2024 Sustainability Report
Response to the Previous Year’s
Report Reader Survey [POJK G.3]
Avian Brands 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 Avian Brands on responses from
stakeholders in the previous year.
List of GRI Standards Indexes for
2021 – with Reference
PT Avia Avian Tbk has reported the information cited in the GRI content index for the period from
Statement on Utilization January 1 - December 31, 2024 with reference to the GRI Standards.
GRI 1 utilized GRI 1: Foundation 2021
Disclosure
GRI – Standards Index Page
Title
No.
General Disclosure
The Organization and Its Reporting Practices
2-1 Organizational Details 18-19; 25
2-2 Entities Included in the Organization’s Sustainability Reporting 2
2-3 Reporting Period, Frequency, and Contact Point 2
2-4 Restatements of Information 2
2-5 External Assurance 2; 188
Activities and Workers
18; 22; 27;
2-6 Activities, Value Chain, and Other Business Relationships
103; 106
2-7 Employees 24; 152-153
2-8 Workers Who are Not Employees 152
GRI 2: Governance
General Disclosures
2-9 Governance Structure and Composition 74-75
2021
2-10 Nomination and Selection of the Highest Governance Body 77
2-11 Chair of the Highest Governance Body 73-74; 97
2-12 Role of the Highest Governance Body in Overseeing the Management of Impacts 74; 79
2-13 Delegation of Responsibility for Managing Impacts 73; 79
2-15 Conflicts of Interest 97
2-16 Communication of Critical Concerns 96-97
2-17 Collective Knowledge of the Highest Governance Body 158
2-19 Remuneration Policies 77-78
2-20 Process to Determine Remuneration 77-78
2-21 Annual Total Compensation Ratio 163
193
Page 196
Disclosure
GRI – Standards Index Page
Title
No.
Strategy, Policies, and Practices
2-22 Statement on Sustainable Development Strategy 6-11
2-23 Policy Commitments 30-31
2-24 Embedding Policy Commitments 33-36; 92; 94-95
GRI 2: 2-25 Processes to Remediate Negative Impacts 81-91
General Disclosures 2-26 Mechanisms for Seeking Advice and Raising Concerns 96-97
2021 2-27 Compliance with Laws and Regulations 99
2-28 Membership Associations 57
Stakeholder Engagement
2-29 Approach to Stakeholder Engagement 60-63
2-30 Collective Bargaining Agreements 164
Material Topics
GRI 3: 3-1 Approach to Stakeholder Engagement 65
Material Topics 2021 3-2 Collective Bargaining Agreements 65-68
Economics Topics
201 Economic Performance
GRI 3:
3-3 Management of Material Topics 108
Material Topics 2021
201-1 Direct Economic Value Generated and Distributed 108-109
GRI 201: Financial Implications and Other Risks and Opportunities
201-2 109
Economic Caused by Climate Change
Performance 2016 201-3 Defined Benefit Plan Obligations and Other Retirement Plans 161
201-4 Financial Assistance Received from the Government 109
202 Market Presence
GRI 3:
3-3 Management of Material Topics 162
Material Topics 2021
Ratios of Standard Entry-Level Wage by Gender Compared to
GRI 202: 202-1 162
Local Minimum Wage
Market Presence 2016
202-2 The proportion of Senior Management Coming from Local Communities 76; 111
203 Indirect Economic Impacts
GRI 3:
3-3 Management of Material Topics 110
Material Topics 2021
GRI 203: 203-1 Investment in Infrastructure and Support Services 111
Indirect Economic
Impacts 2016 203-2 Significant Indirect Economic Impacts 105; 110-111
205 Anti-Corruption
GRI 3:
3-3 Management of Material Topics 93
Material Topics 2021
205-1 Operations Assessed for Risks related to Corruption 93
GRI 205:
205-2 Communication and Training about Anti-Corruption Policies and Procedures 93
Anti-Corruption 2016
205-3 Confirmed Incidents of Corruption and Actions Taken 93
206: Anti-Competitive Behavior
GRI 3:
3-3 Management of Material Topics 96
Material Topics 2021
GRI 206:
Legal Measures against Anti-Competitive Practices, Antitrust Practices and
Anti-Competitive 206-1 96
Monopolistic Practices
Practices 2016
207 Tax
GRI 3:
3-3 Management of Material Topics 109
Material Topics 2021
207-1 Approach to Tax 109
GRI 207: 207-2 Tax Governance, Control, and Risk Management 109
Tax 2019 207-3 Stakeholder Engagement and Management of Concerns Related to Tax 110
207-4 Country-by-Country Reporting 110
194
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PT Avia Avian Tbk • 2024 Sustainability Report
Disclosure
GRI – Standards Index Page
Title
No.
Environmental Topics
301 Material
GRI 3:
3-3 Management of Material Topics 118
Material Topics 2021
GRI 301: 301-1 Materials Used by Weight or Volume 118-119
Materials 2016 301-2 Recycled Input Materials Used 118
302 Energy
GRI 3:
3-3 Management of Material Topics 120
Material Topics 2021
302-1 Energy Consumption within the Organization 120-121
GRI 302: 302-2 Energy Consumption Outside of the Organization 122
Energy 2016 302-3 Energy Intensity 121
302-4 Reduction of Energy Consumption 120
303 Water and Effluents
GRI 3:
3-3 Management of Material Topics 123
Material Topics 2021
303-1 Interaction with Water as a Shared Resource 123
GRI 303: 303-2 Management of Water Discharge-Related Impacts 122
Water and
Effluents 2018 303-4 Water Discharge 124
303-5 Water Consumption 124
305 Emissions
GRI 3:
3-3 Management of Material Topics 125
Material Topics 2021
305-1 Direct (Scope 1) GHG Emissions 126
305-2 Energy Indirect (Scope 2) GHG Emissions 126
GRI 305: 305-3 Other Indirect Scope 3 Greenhouse Gas Emissions 126
Emissions 2016 305-4 GHG Emission Intensity 127
305-5 Reduction of Greenhouse Gas Emissions 132
305-6 Emissions of Ozone-Depleting Substances 127
306 Waste
GRI 3:
3-3 Management of Material Topics 128
Material Topics 2021
306-1 Waste Generation and Significant Waste-related Impacts 128
306-2 Management of Significant Waste-related Impacts 129
GRI 306:
306-3 Waste Generated 130
Waste 2020
306-4 Waste Diverted from Disposal 129-130
306-5 Waste Directed to Disposal 130-131
308 Supplier Environmental Assessment
GRI 3:
3-3 Management of Material Topics 105
Material Topics 2021
GRI 308:
Supplier
308-1 New Suppliers that were Screened Using Environmental Criteria 105
Environmental
Assessment 2016
195
Page 198
Disclosure
GRI – Standards Index Page
Title
No.
Social Topics
401 Employment
GRI 3:
3-3 Management of Material Topics 154
Material Topics 2021
401-1 New Employee Hires and Employee Turnover 154-156
GRI 401: Benefits Provided to Full-time Employees that are not Provided to Temporary or
401-2 163; 165
Employment 2016 Part-Time Employees
401-3 Parental Leave 165-166
402 Labor/Management Relations
GRI 3:
3-3 Management of Material Topics 165
Material Topics 2021
403 Occupational Health and Safety
GRI 3:
3-3 Management of Material Topics 168
Material Topics 2021
403-1 Occupational Health and Safety Management System 169
403-2 Hazard Identification, Risk Assessment, and Incident Investigation 169
403-3 Occupational Health Services 171
Worker Participation, Consultation, and Communication on
403-4 168
Occupational Health and Safety
GRI 403: 403-5 Worker training on Occupational Health and Safety 172
Occupational Health
and Safety 2018 403-6 Promotion of Worker Health 171
Prevention and Mitigation of Occupational Health and
403-7 170
Safety Impacts Directly Linked by Business Relationships
403-8 Workers Covered by an Occupational Health and Safety Management System 168
403-9 Work-related Injuries 172-173
403-10 Work-related Ill Health 172-173
404 Training and Education
GRI 3:
3-3 Management of Material Topics 156
Topik Material 2021
404-1 Average Hours of Training per Year per Employee 158
GRI 404:
404-2 Programs for Upgrading Employee Skills and Transition Assistance Programs 157
Training and Education
2016 Percentage of Employees Receiving Regular Performance and
404-3 161
Career Development Reviews
405 Diversity and Equal Opportunity
GRI 3:
3-3 Management of Material Topics 76
Material Topics 2021
GRI 405: 405-1 Diversity of Governance Bodies and Employees 76
Diversity and Equal
Opportunity 2016 405-2 Ratio of Basic Salary and Remuneration of Women to Men 162
406 Non-Discrimination
GRI 3:
3-3 Management of Material Topics 152
Material Topics 2021
GRI 406:
Non-Discrimination 406-1 Incidents of Discrimination and Corrective Actions Taken 152; 154
2016
407 Freedom of Association and Collective Bargaining
GRI 3:
3-3 Management of Material Topics 164
Material Topics 2021
GRI 407:
Freedom of Association Operations and Suppliers in which the Right to Freedom of Association and
407-1 164
and Collective Collective Bargaining May Be at Risk
Bargaining 2016
196
Page 199
PT Avia Avian Tbk • 2024 Sustainability Report
Disclosure
GRI – Standards Index Page
Title
No.
408 Child Labor
GRI 3:
3-3 Management of Material Topics 105
Material Topics 2021
GRI 408:
408-1 Operations and Suppliers at Significant Risk for Incidents of Child Labor 105; 163
Child Labor 2016
409 Forced or Compulsory Labor
GRI 3:
3-3 Management of Material Topics 105
Material Topics 2021
GRI 409:
Operations and Suppliers at Significant Risk for Incidents of Forced or 105; 163-164;
Forced or Compulsory 409-1
Compulsory Labor 165
Labor 2016
413 Local Communities
GRI 3:
3-3 Management of Material Topics 110
Material Topics 2021
GRI 413:
Operations with Local Community Engagement, Impact Assessments, and
Local Communities 413-1 110; 178-184
Development Programs
2016
414 Supplier Social Assessment
GRI 3:
3-3 Management of Material Topics 105
Material Topics 2021
GRI 414:
Supplier Social 414-2 Negative Social Impacts in the Supply Chain and Actions Taken. 105
Assessment 2016
415 Public Policy
GRI 3:
3-3 Management of Material Topics 99
Material Topics 2021
GRI 415:
415-1 Political Contributions 99
Public Policy 2016
416 Customer Health and Safety
GRI 3:
3-3 Management of Material Topics 138
Material Topics 2021
GRI 416: 416-1 Assessment of the Health and Safety Impacts of Product and Service Categories 138
Customer Health and Incidents of Non-Compliance Concerning the Health and Safety Impacts of
Safety 2016 416-2 99
Products and Services
417 Marketing and Labeling
GRI 3:
3-3 Management of Material Topics 139
Material Topics 2021
417-1 Requirements for Product and Service Information and Labeling 140
GRI 417:
Incidents of Non-Compliance concerning Product and Service Information and
Marketing and 417-2 140
Labeling
Labeling 2016
417-3 Incidents of Non-Compliance concerning Marketing Communications 140
197
Page 200
Cross Reference GRI Standards with SDGs
We are committed to contributing to achieving the SDGs in Indonesia. This contribution is delivered through links
between programs/activities in Avian Brands’ Sustainability Report with GRI Standards and SDGs, as in the table below:
Discussion in Alignment with
Logo Aim Disclosure Page
the Report GRI Standards
Ensure Inclusive Competence GRI 404: 404-1
and Equitable Improvement Training and Average Hours of Training per Year per 158
Quality Education without Education 2016 Employee
and Promote Discriminating
404-2
Lifelong Learning against
Programs for Upgrading Employee Skills 157
Opportunities for Employees’
and Transition Assistance Programs
All Gender and
Background 404-3
Percentage of Employees Receiving
161
Regular Performance and Career
Development Reviews
Achieve Gender Provision of GRI 202: 202-1
Equality and Employment, Market Presence Ratios of Standard Entry-Level Wage by
162
Empower All Income, 2016 Gender Compared to Local Minimum
Women and Girls Remuneration, Wage
and Facilities
GRI 401: 401-1
Employment 2016 New Employee Hires and Employee 154-156
Turnover
401-2
Benefits Provided to Full-time Employees
163; 165
that are not provided to Temporary or
Part-Time Employees
GRI 405: 405-2
Diversity and Equal The Ratio of Basic Salary and Remuneration 162
Opportunity 2016 of Women to Men
Anti- GRI 406: 406-1
discrimination Non-Discrimination Incidents of Discrimination and Corrective 152; 154
Labor 2016 Actions Taken
Management
GRI 409: 409-1
105;
Forced or Operations and Suppliers at Significant
163-164;
Compulsory Labor Risk for Incidents of Forced or Compulsory
165
2016 Labor
Ensure Availability Responsible GRI 303: 303-1
and Sustainable Water Usage and Water and Effluents Interactions with Water as a Shared 123
Management Management 2018 Resource
of Water and
303-2
Sanitation for All
Management of Water Discharge-Related 122
Impacts
303-4
124
Water Discharge
198
Page 201
PT Avia Avian Tbk • 2024 Sustainability Report
Discussion in Alignment with
Logo Aim Disclosure Page
the Report GRI Standards
Ensure Access to Responsible GRI 302: 302-1
Affordable, Energy Usage and Energy 2016 Energy Consumption within the
120-121
Reliable, Management, Organization
Sustainable, and including
Modern Efficiency
302-3
Energy for All Measures 121
Energy Intensity
and Usage of
Renewable 302-4
120
Energy Sources Reduction of Energy Consumption
Promote Sustained, Provision of GRI 201: 201-1
Inclusive and Employment, Economic Direct Economic Value Generated and 108-109
Sustainable Income, Performance 2016 Distributed
Economic Growth, Remuneration,
GRI 202: 202-1
Full, and Productive and Facilities
Market Presence Ratios of Standard Entry-Level Wage by
Employment and 162
2016 Gender Compared to Local Minimum
Decent Work for All
Wage
GRI 401: 401-1
Employment 2016 New Employee Hires and Employee 154-156
Turnover
401-2
Benefits Provided to Full-Time Employees
163; 165
that are not Provided to Temporary or
Part-Time Employees
Freedom of GRI 407: 407-1
Association Freedom of Operations and Suppliers in which the
Association and Right to Freedom of Association and 164
Collective Bargaining Collective Bargaining May Be at Risk
2016
Local GRI 203: 203-2
105;
Community Indirect Economic Significant Indirect Economic Impacts
110-111
Development Impacts 2016
and
GRI 413: 413-1
Empowerment
Local Communities Operations with Local Community 110;
2016 Engagement, Impact Assessments, and 178-184
Development Programs
Build Resilient Avian Brands’ GRI 413: 413-1
Infrastructure, Contribution to Local Communities Operations with Local Community
Promote Inclusive the Construction 2016 Engagement, Impact Assessments, and
111;
Sustainable of Public Development Programs
178-184
Industrialization, Facilities
and Foster
Innovation
199
Page 202
Discussion in Alignment with
Logo Aim Disclosure Page
the Report GRI Standards
Ensure Sustainable Responsible Use GRI 301: 301-1
118-119
Consumption and of Materials Materials 2016 Materials Used by Weight or Volume
Production Patterns
301-2
118
Recycled Input Materials Used
Management GRI 306: 306-1
and Reuse of Waste 2020 Waste Generation and Significant 128
Waste as Raw Waste-related Impacts
Materials for
306-2
Manufacturing
Management of Significant Waste-related 129
Impacts
306-3
130
Waste Generated
306-4
129-130
Waste Diverted from Disposal
Supplier GRI 308: 308-1
Engagement Supplier New Suppliers that were Screened using
that Emphasizes Environmental Environmental Criteria
105
Sustainable Assessment 2016
Production
Practices
Take Urgent Action Reduction of GRI 305: 305-1
126
to Combat Climate Emissions as a Emissions 2016 Direct (Scope 1) GHG Emissions
Change and Its cause of Global
305-2
Impacts Warming and 126
Energy Indirect (Scope 2) GHG Emissions
Climate Change
305-4
127
GHG Emission Intensity
305-6
127
Emissions of Ozone-Depleting Substances
Promote Peaceful Implementing GRI 205: 205-1
and Inclusive Accountable Anti-Corruption 2016 Operations Assessed for Risks related to 93
Societies for and Transparent Corruption
Sustainable Business
205-2
Development, Practices, and
Communication and Training about Anti- 93
Provide Access to Zero-tolerance
Corruption Policies and Procedures
Justice for All and for All Forms
Build Effective, of Corruption, 205-3
Accountable, Including Confirmed Incidents of Corruption and
and Inclusive Bribery, Actions Taken
93
Institutions at All Extortion, Fraud
Levels and Money
Laundering
200
Page 203
PT Avia Avian Tbk • 2024 Sustainability Report
List of Disclosures According to
Financial Services Authority Regulation
No. 51/POJK.03/2017 (“POJK 51/2017”)
and Circular Letter of the Financial Services
Authority of the Republic of Indonesia
No. 16/ SEOJK.04/2021 (“SEOJK 16/2021”)
[POJK G.4]
Index No. Name of Index Page
A.1 Description on Sustainability Strategy 29; 34-36
Sustainability Performance Overview
B.1 Economic Performance Overview 14
B.2 Environmental Performance Overview 14-15
B.3 Social Performance Overview 15
Company Profile
C.1 Vision, Mission, and Values of Sustainability 20
C.2 Address of the Company 18
C.3 Company Classification 24-25; 152-153
C.4 Products, Services, and Operated Business 22
C.5 Membership Associations 57
C.6 Significant Organizational Change 27
Comment by the Board of Directors
D.1 Comment by the Board of Directors 6-11
Sustainability Governance
E.1 Person in Charge on the Implementation of Sustainable Finance 79
E.2 Competence Development related to Sustainable Finance 158-160
E.3 Risk Assessment on the Implementation of Sustainable Finance 81-91
E.4 Relationship with Stakeholders 60-63
E.5 Issues on the Implementation of Sustainable Finance 42-43
Sustainability Performance
F.1 Activities on Building a Sustainable Culture 92
Economic Performance
Comparison of Targets and Performance on Manufacturing, Portfolio, Financing Targets,
F.2 107
or Investments, Income and Profit and Loss
Comparison of Targets and Performance on Portfolio, Financing Targets, or Investments
F.3 108
in Financial Instruments or Projects in Line with Sustainable Finance
Environmental Performance
General
F.4 Environmental Costs 132
Material Aspect
F.5 Use of Environmentally Friendly Materials 118-119
Energy Aspect
F.6 Amount and Intensity of Energy Used 121
F.7 Efforts and Achievements in Energy Efficiency and Use of Renewable Energy 120; 122
201
Page 204
Index No. Name of Index Page
Water Aspect
F.8 Water Usage 123-124
Biodiversity Aspect
Impacts from Operational Areas that are Near or Located in Conservation Areas or with
F.9 132
Biodiversity
F.10 Biodiversity Conservation Efforts 132
Emission Aspect
F.11 Number and Intensity of Emissions Generated by Type 126-127
F.12 Efforts and Achievements Made in Emission Reduction 132
Waste and Effluent Aspect
F.13 Amount of Waste and Effluent Generated by Type 129-130
F.14 Waste and Effluent Management Mechanism 129
F.15 Spills (if any) 131
Aspect of Complaints related to the Environment
F.16 Number and Material of Environmental Complaints Received and Resolved 133
Social Performance
Commitments of FSI (LJK), Issuers, or Public Companies to Provide Equivalent Products
F.17 137
and/or Services to Consumers
Employment Aspect
F.18 Equal Employment Opportunity 152
F.19 Child Labor and Forced Labor 163-165
F.20 Regional Minimum Wage 162
F.21 Decent and Safe Work Environment 168
F.22 Employee Capability Training and Development 156; 158
Community Aspect
F.23 Impact of Operations on Surrounding Communities 110
F.24 Community Complaints 186
F.25 Environmental Social Responsibility (ESR) Activities 178-184
Responsibility for Sustainable Product/Service Development
F.26 Innovation and Development of Sustainable Financial Products/Services 141-143
F.27 Products/Services that Have Been Evaluated for Safety for Customers 138
F.28 Product/Service Impact 139
F.29 Number of Recalled Products 146
F.30 Customer Satisfaction Survey on Sustainable Financial Products and/or Services 146
Others
G.1 Written Verification from Independent Party (if any) 188
G.2 Feedback Form 191
G.3 Responses to Feedback on Previous Year's Reports 193
G.4 List of Disclosures According to POJK 51/2017 201-202
202
Page 205
PT Avia Avian Tbk • 2024 Sustainability Report
List of Sustainability Accounting
Standards Board (“SASB”) Chemicals Sector
Version 2023-12
To pic Index No. Name of Index Threshold Page
Gross Global Scope 1 Emissions,
RT-CH-110a.1. Percentage Covered under - 126
Emissions-Limiting Regulations
Greenhouse
Gas Discussion of Long- and Short-
Emissions Term Strategy or Plan to Manage
RT-CH-110a.2. Scope 1 Emissions, Emissions - 120
Reduction Targets, and an Analysis of
Performance Against Those Targets
The disclosed data and information have not yet
(1) Total Energy Consumed, reflected full disclosure. Currently, Avian Brands
Energy (2) Percentage Grid Electricity, is in the process of developing a more structured
RT-CH-130a.1. 121-122
Management (3) Percentage Renewable And recording and reporting system to ensure data
(4) Total Self-Generated Energy completeness and accuracy in accordance with
established indicators.
(1) Total Water Withdrawn, (2) Total
Water Consumed; Percentage of Each
RT-CH-140a.1. - 123-124
in Regions with High or Extremely
High Baseline Water Stress
Number of incidents of non-
Water
compliance associated with water
Management RT-CH-140a.2. - 123
quality permits, standards and
regulations
Description of water management
RT-CH-140a.3. risks and discussion of strategies and - 123
practices to mitigate those risks.
Hazardous
(1) Amount of Hazardous Waste
Waste RT-CH-150a.1. - 130
Generated, (2) Percentage Recycled.
Management
Discussion of engagement processes
Community
RT-CH-210a.1. to manage risks and opportunities - 60
Relations
associated with community interests.
Avian Brands has disclosed data related to
(1) Total recordable incident rate
workplace accidents, covering both permanent
(“TRIR”) and (2) fatality rate for (a)
RT-CH-320a.1. and contract employees. However, the data in the 172-173
direct employees and (b) contract
Employee table is presented in aggregate, without distinction
employees
Health & between permanent and contract employees.
Safety Description of Efforts to Assess,
Monitor, and Reduce Exposure of
RT-CH-320a.2. - 171
Employees and Contract Workers to
Long-Term (Chronic) Health Risks
Product
Design for Revenue from Products Designed for
RT-CH-410a.1. - 144
Use-Phase Use-Phase Resource Efficiency
Efficiency
203
Page 206
To pic Index No. Name of Index Threshold Page
(1) Percentage of Products That
Contain Globally Harmonised System
Safety & of Classification and Labelling of
Environmental Chemicals (GHS) Category 1 and 2
RT-CH-410b.1. - 99; 138
Management Health and Environmental Hazardous
for Chemicals Substances, (2) Percentage of Such
Products That Have Undergone a
Hazard Assessment
Genetically Percentage of Products by Revenue
Modified RT-CH-410c.1 That Contain Genetically Modified - 119
Organisms Organisms (GMOs)
Discussion of corporate positions
Legal &
related to government regulations
Regulatory
RT-CH-530a.1. or policy proposals that address - 81; 88
Environmental
environmental and social factors
Management
affecting the industry.
Operational
Safety,
Emergency RT-CH-540a.2. Number of transport incidents. - 173
Preparedness
& Response
204
Page 207
PT Avia Avian Tbk • 2024 Sustainability Report
List of Climate Disclosure
Standards Board (“CDSB”) Indexes
Index No. Name of Index Page
REQ-01 Governance 74; 115
REQ-02 Management of Environmental and Social Policies, Strategies, and Targets 34-36
REQ-03 Business Risks and Opportunities 81-91
REQ-04 Sources of Environmental and Social Impacts 125-126
REQ-05 Comparative Analysis and Performance 126
REQ-06 Sustainability Prospects 81
REQ-07 Organizational Limitations 2
REQ-08 Reporting Policy 2
REQ-09 Reporting Period 2
REQ-10 Restatement 2
REQ-11 Compliance 2
REQ-12 Assurance 2; 188
List of Task Force on Climate-related
Financial Disclosure (“TCFD”) Indexes
Index No. Name of Index Page
Governance
TCFD GOV.a Describe the Board's Oversight of Climate-related Risks and Opportunities 80
Describe Management's Role in Assessing and Managing Climate-Related Risks and
TCFD GOV.b 80
Opportunities
Strategy
Describe the Climate-Related Risks and Opportunities the Organization Has Identified Over
TCFD STRA.a 37
the Short, Medium, And Long Term
Describe the Impact of Climate-Related Risks and Opportunities on the Organization's
TCFD STRA.b 37
Businesses, Strategy, and Financial Planning
Describe the Resilience of the Organization's Strategy, Taking into Consideration Different
TCFD STRA.c 37
Climate-Related Scenarios, Including a 2°c or Lower Scenario
Risk Management
TCFD RISK.a Describe the Organization’s Processes for Identifying and Assessing Climate-related Risks 88-91
TCFD RISK.b Describe the Organization’s Processes for Managing Climate-related Risks 88-91
Describe How Processes for Identifying, Assessing, and Managing Climate-Related Risks are
TCFD RISK.c 88-91
Integrated into the Organization’s Overall Risk Management
Metrics and Targets
Disclose the Metrics Used by the Organization to Assess Climate-Related Risks and
TFCD MET.a 88-91
Opportunities in line with its Strategy and Risk Management Process
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 Greenhouse Gas (GHG) Emissions and
TCFD MET.b 88-91
the Related Risks
Describe the Targets Used by the Organization to Manage Climate-Related Risks and
TCFD MET.c 88-91
Opportunities and Performance Against Targets
205
Page 208
Names mentioned 51 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Financial Services Authority
p.4 ×7
unresolved
org
PT Tirtakencana Tatawarna
p.4
unresolved
org
PT Tirtakencana Batamindo
p.4
unresolved
org
Yayasan This
p.12
unresolved
org
Ministry of Environment and Forestry
p.14
unresolved
org
Indonesia Stock Exchange
p.14 ×4
unresolved
person
Setiabudhi
p.20
unresolved
org
Minister of Justice
p.20
unresolved
org
Malang District Court
p.20
unresolved
org
PT Bangun Bersama
p.28
unresolved
org
PT Tirtakencana
p.28 ×2
unresolved
org
PT Multipro Paint
p.28
unresolved
org
PT Solusi Rumah Praktis Solusindo
p.28
unresolved
org
PT Tirtakencana Batamindo Total Assets Before Operational Name
p.28
unresolved
org
PT Tirtakencana Desa Wadungasih
p.28
unresolved
—
Desa Wadungasih, Kec. Buduran,
p.28
unresolved
org
PT Multipro
p.28
unresolved
org
PT Tirtakencana Kota Batam
p.28
unresolved
org
PT Bangun
p.28
unresolved
person
Eko Hajar Prakoeswo
p.47
unresolved
org
Yayasan Kehati
p.48 ×2
unresolved
org
Ministry of Industry
p.49 ×2
unresolved
org
Yayasan Keanekaragaman
p.50
unresolved
org
Ministry of Environment
p.50
unresolved
org
PT Lloyd’s Register Indonesia
p.52 ×8
unresolved
org
Information Security Intertek Certification Limited
p.52
unresolved
org
LRQA Limited
p.52 ×15
unresolved
org
Safety LRQA Limited
p.52
unresolved
org
PT. Lloyd's Register Indonesia Issued
p.52
unresolved
org
LRQA Limited LRQA Group Limited
p.52 ×2
unresolved
org
LRQA'. LRQA Group Limited
p.52 ×2
unresolved
org
LRQA Group Limited
p.52 ×4
unresolved
org
PT. Lloyd's Register Indonesia Area Operations Manager
p.52
unresolved
org
Ministry of Industry Supersilk
p.53
unresolved
org
Kementerian Perindustrian Republik Indonesia
p.56 ×36
unresolved
person
Male
· President Commissioner
p.77 ×9
unresolved
person
Female
· Director
p.77
unresolved
org
Komisi Pengawas Persaingan
p.98
unresolved
org
KPPU
p.98
unresolved
org
Minister of Industry
p.101
Extraction attempts how the parser did, and what it refused
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