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Advancing Well-Being
at Every Stage of Life
2023 SUSTAINABILITY REPORT
2023 SUSTAINABILITY REPORT
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PT LIPPO KARARWACI TBK
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
TABLE OF CONTENTS
OUR SUSTAINABILITY ENHANCING
1 INTRODUCTION 2 HIGHLIGHTS 3 4
APPROACH QUALITY OF LIFE
2023 SUSTAINABILITY REPORT
4 About This Report 15 Sustainability Performance 19 Sustainability Framework 35 Economic Contribution
7 Our Company 17 Sustainability Agenda 20 Sustainability Governance 40 Community Support
& Engagement
12 Group CEO’s Message 21 Materiality Assessment &
Stakeholder Engagement 44 Product Innovation
24 Supporting UN SDGs & 47 Customer Service
UNGC Principles & Satisfaction
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28 Climate Risks &
PT LIPPO KARARWACI TBK
Opportunities
CARING FOR OUR INVESTING IN CHAMPIONING
5 6 7 8 APPENDIX
ENVIRONMENT OUR PEOPLE BEST PRACTICES
52 Energy Efficiency 67 Employment & Rights 80 Governance & 88 Reporting Methodology
& Emissions Accountability
72 Occupational Health 90 Environmental Data
57 Water Stewardship & Safety 83 Ethics & Compliance
93 Workforce Data
62 Waste Management 75 Training & Development
97 Scenario Analysis
99 Content Index
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
I N T RO D U CTION
About This Report
Our Company
Group CEO’s Message
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
ABOUT THIS REPORT
PT Lippo Karawaci Tbk (LPKR, Lippo Karawaci or “the Group”) is proud to present its 2023 Sustainability Report
(“this Report”). This Report provides insights into the Group’s consolidated Environmental, Social and Governance (ESG)
performance and conveys our commitment to promote accountability and transparency in sustainability reporting.
Our approach and methodology aim to incorporate sustainability into every facet of our business strategy, policies,
and operations. We recommend reviewing this Report alongside our Annual Report, which delves into our financial,
operational, and governance disclosures. The policy, practice and performance data presented in this report were obtained
2023 SUSTAINABILITY REPORT
from formal documents and operational data from business units in the Group. Endorsed by the Board of Directors
and Board of Commissioners, this Report is published on 30 April 2024. This Report is only available in a digital version –
Advancing Well-Being
current and previous editions are available at www.lippokarawaci.co.id. at Every Stage of Life
2022 S USTAINABILITY REPORT
2022 Sustainability Report
REP ORTI N G S CO PE & PE RIO D In line with reporting best practice, we have specified
the boundaries for any disclosure that does not apply to
The scope of this Report mirrors our Annual Report,
all business units. For instance, our environmental data
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PT LIPPO KARARWACI TBK
covering all business units across our Real Estate, Advancing Well-Being
only reflects assets and operations under the Group’s
Healthcare, and Lifestyle segments. The scope includes at Every Stage of Life
operational control, in line with the GHG protocol. All 2023 SUSTAINABILITY REPORT
publicly listed entities under the Group’s management,
business units adopt a standard approach as prescribed by
such as PT Lippo Cikarang Tbk (LPCK), PT Gowa Makassar
the Group Sustainability Function in the identification of
Tourism Development (GMTD), PT Siloam International
material topics, performance measurement and reporting.
Hospitals Tbk (Siloam), and Lippo Malls Indonesia Retail
Trust (LMIR Trust)1, as well as wholly-owned subsidiaries
The reporting period spans 1 January to 31 December 2023,
such as PT Lippo Malls Indonesia (Lippo Malls) and PT
which aligns with our financial year. Where relevant and Advancing Well-Being
Aryaduta International Management (Aryaduta). This year, at Every Stage of Life
available, this Report provides comparative historical data 2022 S USTAINABILITY REPORT
we have also included the operations of San Diego Hills
to provide more context. We publish our Sustainability
Memorial Park (SDH) in our scope of reporting.
Reports on an annual basis.
2023 Sustainability Report
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As publicly listed entities, LPCK, GMTD, Siloam, and LMIR Trust separately publish their own Sustainability Reports on an annual basis.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
REP ORTI N G STA N DA R D S & F R A M EWO RKS
This year’s Report builds on the disclosures from our previous Sustainability Reports. We have conducted a comprehensive gap analysis against reporting standards and frameworks
such as sustainability reporting requirements of the Financial Services Authority of Indonesia (OJK) and the Singapore Exchange (SGX), GRI Universal Standards 2021, SASB Standards,
Taskforce on Climate-related Financial Disclosure (TCFD), as well as the performance indicators of global sustainability benchmarks. This year, we have disclosed additional information that
aligns with the reporting standards and frameworks employed by industry leaders, in an effort to continually improve our disclosures. We recognize the issuance of the new International
Sustainability Standards Board (ISSB) standards and are currently enhancing our disclosures to align with the ISSB guidelines. This Report is prepared in accordance or makes reference to
the following regulations, standards, and guidelines (please refer to “Appendix - Content Index” on pages 99 to 111):
Reporting Standard / Framework Description
2023 SUSTAINABILITY REPORT
Global Reporting Initiative (GRI) This Report has been prepared in accordance with the GRI Universal Standards 2021. The GRI framework is one of the most widely used standards for global
reporting. The disclosures made in this report are in line with GRI’s Reporting Principles for defining report quality – accuracy, balance, clarity, comparability,
completeness, sustainability context, timeliness and verifiability. Our GRI content index can be found on pages 99 to 103 of this report.
Sustainability Accounting Standards Board We are disclosing additional information in line with the SASB Standards for Real Estate, which provide sector-specific guidance on sustainability indicators
(SASB) based on financial materiality.
United Nations Global Compact (UNGC) As a UNGC signatory, we are committed to upholding the Ten Principles of the UNGC and advancing the UN SDGs that are more relevant to our business.
and United Nations Sustainable This Report showcases how we are contributing towards the global sustainability agenda under the UNGC and UN SDGs and forms the basis for our annual
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PT LIPPO KARARWACI TBK
Development Goals (UN SDGs) disclosures under the UNGC’s “Communication on Progress” requirements.
Task Force on Climate-related Financial To enhance our climate reporting and future alignment with the International Financial Reporting Standards (IFRS)’s International Sustainability Standards
Disclosures (TCFD) Board Standards 2 (ISSB S2), we have prepared our climate-related disclosures in accordance with TCFD recommendations. This is structured around the four
thematic areas of Governance, Strategy, Risk Management, and Metrics and Targets. Our TCFD Report is enclosed under “Climate Risks & Opportunities” on
pages 28 to 29. We are committed to working towards fully aligning with the TCFD recommendations and enhancing our disclosures in line with best practice.
This year, we have built on our inaugural TCFD Report last year, to include key takeaways from our financial impact assessment and scenario analysis, found
on pages 30 to 33.
Financial Services Authority of Indonesia (OJK) As a public company listed on the Indonesia Stock Exchange, we have disclosed information in line with the sustainability reporting requirements of OJK
Regulation No.51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Services Companies, Issuers, and Public Companies and in
reference to OJK Circular Letter No.16/SEOJK.04/2021 for Form and Contents of the Issuer’s or Public Company’s Annual Report.
Singapore Exchange (SGX) This report also complies with the sustainability reporting requirements of the SGX-ST Listing Rule 711A and 711B, and Practice Note 7.6 Sustainability Reporting
Guide. It has also been developed while referencing the six primary components stated in SGX-ST Listing Rule 711B on the “comply or explain” basis.
World Economic Forum (WEF) As a long-standing partner of WEF, we are amongst the first corporations in Southeast Asia to pledge our support for the WEF Stakeholder Capitalism Metrics.
Our Sustainability Framework and disclosures are organized according to the four thematic areas of Prosperity, Planet, People, and Principles of Governance,
which demonstrates our commitment to long-term value creation for all our stakeholders across both financial and non-financial dimensions.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
R E STATEM E N TS O F IN FO RM AT IO N FE E DB ACK
We have made restatements in emissions, energy, water and workforce data for To enhance the quality and transparency of our reporting, we have proactively
previous periods. Please refer to the Appendix for more information. provided more information to fulfill the disclosure requirements under POJK
51/2017 and OJK Circular Letter SEOJK 16/2021, based on the feedback received from
EXT E R NA L AS S U R A N C E OJK on our 2022 Sustainability Report.
We have not sought external assurance for this Report. We are continually
We welcome feedback on this Report, as this helps us to improve our sustainability
improving our data collection and validation processes in preparation for external
performance and reporting. Please reach out to us with any comments or questions
assurance in the future. In 2023, we performed an internal audit on environmental
at sustainability@lippokarawaci.co.id
disclosures as a preparatory measure for assurance readiness.
2023 SUSTAINABILITY REPORT
CON TACT IN FO R M AT IO N
Menara Matahari, 22nd Floor
Jl. Boulevard Palem Raya No.7
Lippo Karawaci Central
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PT LIPPO KARARWACI TBK
Tangerang, Banten
Indonesia 15811
Tel. +62 21 2566 9000
Fax. +62 21 2566 9098
sustainability@lippokarawaci.co.id
www.lippokarawaci.co.id
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
O U R CO M PA N Y
VI SI O N VALUES
Listed on the Indonesia Stock Exchange, Lippo Karawaci To be a leading real estate and healthcare company CUSTOMER FOCUS
is Indonesia’s leading real estate and healthcare in Asia, advancing the wellbeing of those we serve. • Put the customer first in every aspect of our business.
platform, with a presence in 26 provinces and 56 cities • Go the extra mile to earn customer trust and loyalty.
across Indonesia and total assets of USD 3.2 billion as
of 31 December 2023. The Group has a strong track MI SSI O N EXCELLENCE
record of developing and managing a diversified asset • Strive to be the best and uphold the highest standards
• To win the hearts and minds of our customers
2023 SUSTAINABILITY REPORT
base that includes landed and high-rise residences, of quality without compromise.
through quality homes, healthcare and lifestyle
hospitals, lifestyle malls, hotels, commercial and industrial • Unleash the full potential of our talent to deliver
offerings, as well as people-centric services.
estates, office buildings, as well as townships and outstanding performance.
• To build a talent-driven organization that prides
integrated developments.
itself on operational excellence and bringing out
AGILITY
the best in our people.
Through our innovative use of land and integrated value • Thrive in dynamic environments and anticipate change.
• To embrace innovation and technology in the
chain, we create value across every segment of the urban • Innovate and capitalize on new opportunities.
constant pursuit of developing better products
ecosystem. We serve Indonesia’s emerging consumer
and processes.
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by not only building homes and townships, but also STEWARDSHIP
PT LIPPO KARARWACI TBK
• To inspire our customers, communities, and
providing healthcare, retail and hospitality services. Our • Be responsible for our resources, environment and
partners towards a more sustainable future.
diversified assets and operations span the archipelago, communities.
from Aceh to the eastern reaches of Papua. As champions • Create lasting, positive impact for all stakeholders in our
of sustainability, we are committed to creating a more ecosystem.
liveable world for all our stakeholders, and for the
generations to come.
There were no significant changes in the Group’s
operations and business relationships in 2023.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
BU S I NES S ECO SYST E M
Large landbank and strong growth in marketing sales that is Controlling stake in the largest hospital operator Malls, hotels, and ancilliary business assets that are profitable
expected to remain elevated in coming years, generating positive in Indonesia, delivering clinical excellence and access and supplement the main business by providing regular dividend
cashflow to healthcare income
End-to-end revenue streams: Complete healthcare service offering: Wide range of recurring revenue businesses:
Real Estate Development Hospitals Malls
Township Management Clinics Hospitality
Water treatment and other supporting services Digital healthcare, homecare, lab & diagnostics Food catering, parking & other ancilliary businesses
2023 SUSTAINABILITY REPORT
3 ~1,400 ha 25+ 41 8,500+ ~4,000 59
managed malls
1.7M m2
net leasable area
3
leisure properties
townships of land bank years of remaining hospitals nurses & medical professionals hospital beds
land bank
9 80+ 72 3,800+ 10
hotels
~2,000
high-rise property development clinics GPs, specialists, & dentists hotel rooms
residences projects for sale
PT Siloam International
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Hospitals Tbk
PT LIPPO KARARWACI TBK
PT Lippo Karawaci Tbk
PT Lippo Cikarang Tbk
R
TE
EN
YC
CIT
PT Gowa Makassar Tourism W
N EO P
SH
LE
Development Tbk SA
PT Lippo Malls Indonesia PT Aryaduta International
Management
PT San Diego Hills
Memorial Park
Lippo Malls Indonesia
Retail Trust
8
Note: PT Lippo Karawaci Tbk serves as the operating company for part of its real estate operations, as well as the parent
company for a number of publicly listed and wholly owned subsidiaries.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
OPER ATI ONA L FO OT PRIN T
Banda Aceh Balikpapan
Medan
Plaza Aceh Siloam Hospitals Balikpapan (SHBP) Ambon
Siloam Hospitals Medan (SHMD)
Plaza Medan Fair Siloam Hospitals Ambon (SHAB)
Sun Plaza
Lippo Plaza Medan
Grand Palladium Medan Banjarmasin
Aryaduta Medan Siloam Hospitals Banjarmasin (SHBJ)
Pekanbaru
Aryaduta Pekanbaru
Manado
Palangkaraya
Holland Village Manado
Siloam Hospitals Palangkaraya (SHPR) Siloam Hospitals Manado (SHMN)
Mega Town Square Palangkaraya Siloam Hospitals Paal Dua Manado (SHPD)
Jambi Lippo Plaza Manado
Siloam Hospitals Jambi (SHJB) Aryaduta Manado
Lippo Plaza Jambi
2023 SUSTAINABILITY REPORT
Bangka
Siloam Hospitals Palembang (SHPL)
Palembang Square
Siloam Hospitals Bangka
Belitung (SHBB)
Kalimantan Sulawesi
Palembang Square Extension
Palembang Icon Sumatra
Aryaduta Palembang
Pekalongan
Plaza Pekalongan
Palembang
Kendari
Maluku
Lippo Plaza Kendari
Kudus
Siloam Hospitals Lubuk Linggau (SHLL)
Lippo Plaza Lubuk Linggau Karawang Kudus
Bau-Bau
Extension Mall Surabaya
Rolling Hills
Lubuk Linggau Siloam Hospitals Buton (SHBN)
San Diego Hills City of Tomorrow Surabaya
Lippo Plaza Buton
Memorial Park Siloam Hospitals Surabaya (SHSB)
City of Tomorrow
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Lippo Village Benton Junction
Purwakarta
PT LIPPO KARARWACI TBK
Millenium Village WTC Matahari Madiun
Siloam Hospitals Lippo Village Mall of Serang Memorial Park
Plaza Madiun (Retail Spaces)
Rumah Sakit Umum Siloam Aryaduta Lippo Village Siloam Hospitals Tanjung Bunga
Lippo Village (RSUS) Purwakarta (SHPW)
Aryaduta Country Club Siloam Hospitals Makassar (SHMK)
Gresik
Embarcadero Bintaro Imperial Klub Golf
Plaza Gresik GTC Makassar
Siloam Hospitals Kelapa Dua
Banten Aryaduta Makassar
Plaza Semanggi
Makassar
MaxxBox Lippo Village
Citywalk Elvee
Jawa
Labuan Bajo
Siloam Hospitals Cirebon (SHC) Siloam Hospitals Labuan Bajo (SHLB)
Cirebon
Jabodetabek
Greater Jakarta
Siloam Hospitals Yogyakarta (SHYG)
NTT
Lippo Plaza Jogja
Lippo Plaza Batu
NTB
Lippo Cikarang Gajah Mada Plaza Batu
Kemang Village Istana Plaza Yogyakarta
St Moritz Puri Lippo Plaza Kramat Jati
Lippo Plaza Sidoarjo Kupang
Nine Residence Lippo Mall Kemang
Depok Park View Mal Lippo Cikarang Sidoarjo Siloam Hospitals Kupang (SHKP)
Holland Village Jakarta Pluit Village Siloam Hospitals Semarang (SHSR)
Lippo Plaza Kupang
Siloam Hospitals Kebon Tamini Square
Semarang
Jeruk Lippo Mall Puri Siloam Hospitals
MRCCC Siloam Semanggi Jember (SHJR)
Cikarang CityWalk
Siloam Hospitals TB Lippo Plaza Jember
District 1 Meikarta
Simatupang
Maxxbox Cinere Kediri Town Square Jember
Siloam Hospitals Mampang
Senayan Park Kediri
Siloam Hospitals ASRI
Blu Plaza BIMC Kuta
Siloam Hospitals Cinere
Lippo Plaza Keboen Raya BIMC Nusa Dua
Siloam Hospitals Bogor Bogor
Siloam Hospitals Bekasi Siloam Hospitals
Grand Mall Bekasi Denpasar (SHDP)
Sepanjang Jaya (SHBS)
Bellanova Country Mall Lippo Mall Kuta
Siloam Hospitals Bekasi
Timur (SHBT) Depok Town Square Rumah Sakit Umum Syubbanul Wathon (RSU SW)
Presence in
Lippo Plaza Sunset
Siloam Hospitals Sentosa Metropolis Town Square Malang Town Square Aryaduta Bali
56 cities and 26 provinces
(SHST) Sudirman Office Tower
Siloam Hospitals Lippo
Malang Bali
Aryaduta Menteng
Cikarang (SHLC) Aryaduta Suite Semanggi
Siloam Hospitals Agora
Bandung Indah Plaza
Aryaduta Bandung Siloam Hospitals
Mataram (SHMT)
across the Indonesian archipelago
Cibubur Junction Jabodetabek
Greater Jakarta Mataram
Lippo Plaza Ekalokasari
Bogor
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
VA LU E C H A I N REAL ESTATE
Consultants
Building Materials
Construction Landscaping
Mortgage Property
Lenders Agents
Landed Homes &
High-Rise Apartments
Township Commercial &
2023 SUSTAINABILITY REPORT
Management Industrial Leasing
Burial Water
Plots Treatment Partner Doctors
& Allied Health
Professionals
Lifestyle Malls Homeowners Tenants
Hospitals
Facilities Local
Management Community
Medical
Mall
Retail Spaces Visitors Devices
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Clinics
PT LIPPO KARARWACI TBK
In-Patients
HEALTH
Hotel
Guests
Guest Hospitality & Out-Patients
Relations Leisure Retail Lab &
LE
Tenants Diagnostics Pharmaceuticals
STY
C
Food & Beverage Digital
A
Healthcare
E
Daily
RE
Supplies
LIF
Healthcare
Parking Services Homecare Service Providers
Sales &
Marketing
Food Catering
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
S H A R E H OLDE R S ST R U CTU R E
1)
Directly and indirectly
1) 2)
2)
Ultimate Beneficial Owner is James
T. Riady who has indirect ownership
through PT Inti Anugerah Pratama
3)
As of the issuance date of this
Sustainability Report, 4.92% of shares 59.37% 40.63%
owned by the Company in PT Gowa
Makassar Tourism Development Tbk have
been sold and transferred to the public to
fulfil the free float requirements.
2023 SUSTAINABILITY REPORT
58.07% 83.99% 62.69% 1) 3)
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PT LIPPO KARARWACI TBK
M E M BE R SH IP A S S O C IAT IO N S
LIPPO KARAWACI SUBSIDIARIES (select)
• Indonesian Chamber of Commerce and Industry (KADIN) • Indonesian Employers’ Association (APINDO)
• Real Estate Indonesia (REI) • Indonesian Industrial Estate Association (HKI)
• Indonesian Issuers Association (AEI) • Indonesian Private Hospitals Association (ARSSI)
• World Economic Forum (WEF) • Indonesia Shopping Center Management
• Jakarta Property Institute (JPI) Association (APPBI)
• Indonesian Hotel and Restaurant Association (PHRI)
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GROUP CEO’S MESSAGE
Dear Valued Stakeholders, climate risk assessment across different asset classes
Amidst significant volatility in the global economy, and time horizons, and integrated these climate risks
exacerbated by climate change, geopolitical tensions and opportunities into our enterprise risk management
and supply chain disruptions, sustainability has emerged system and business strategies. In 2023, we have gone one
as a fundamental cornerstone for business resilience. At step further to quantify these climate risks. We conducted
Lippo Karawaci, we firmly believe that sustainability is a our first climate scenario analysis to forecast the potential
2023 SUSTAINABILITY REPORT
strategic imperative that drives value creation and long- impacts of identified physical and transition risks to our
term growth for our organization. As such, we have placed businesses. Our scenario analysis was based on 2030 and
a greater emphasis on integrating sustainability in our 2100 timelines, under two scenarios: a more optimistic one
core business strategy, operations, and risk management where global warming is limited to 2°C by 2100, and a more
practices. By making sustainability top-of-mind, our severe one where it reaches 4°C. In addition, we conducted
Boards and Management teams have embraced a more a bottom-up analysis of climate-related incidents and social impact, and corporate governance. Throughout
holistic approach that considers the impact of ESG factors costs faced by our businesses in 2022 and 2023, to form the year, we actively engaged both internal and external
on our businesses, and enables us to better capitalize on a preliminary understanding of the financial cost of stakeholders to raise awareness and secure buy-in for
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potential efficiencies and new opportunities. climate mitigation and adaptation (cost to fix or prevent
PT LIPPO KARARWACI TBK
our priorities, including by cascading our Group-wide
damage) and business disruption due to climate change. targets and action plans down to our respective business
As Chairman of our ESG Committee, I am pleased Lastly, we reviewed our management responses to key units. For instance, each business unit has formulated its
with the good progress that our Management teams climate risks and opportunities at our ESG Committee own decarbonization roadmap of energy and emissions
have made to keep pace with the rapidly evolving meetings. Going forward, we plan to discuss our climate reduction initiatives, tailored to the unique characteristics
global ESG landscape and industry best practices. agenda more comprehensively at various governance of their business operations and capital expenditure plans.
2023 has been a pivotal year in our sustainability journey, platforms and with our business units, as well as improve These decarbonization plans are supported by regular
and we are happy to share with our stakeholders the our climate reporting and risk management practices to energy audits, the systematic roll-out of energy efficiency
concrete steps that we have taken to advance our ESG align more closely with the TCFD recommendations and initiatives and asset enhancements, and new opportunities
priorities. the International Sustainability Standards Board (ISSB)’s associated with green buildings and renewable energy. I
requirements. am particularly pleased to note that two of our malls, Lippo
EN H A NC I NG C L IM AT E R E S IL IE N C E Mall Puri and Sun Plaza, have been awarded the EDGE
ADVANCING OUR SUSTAINABILITY AGENDA green building certification for demonstrating resource
We continue to build on our efforts to address our
efficiency in energy, water and material usage. We
climate-related risks and opportunities, in line with the At the start of 2023, we launched our 2030 Sustainability
recognize the benefits of green buildings, and are working
recommendations of the Task Force on Climate-Financial Agenda, which sets measurable ESG targets to drive
to certify more assets in the coming years.
Disclosures (TCFD). In 2022, we conducted our inaugural performance and accountability across climate action,
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
We have also surpassed our water sustainability goals, and Supplier Code of Conduct, which seeks to improve PARTN ER IN G FOR TH E F UTUR E
whereby 24% of our water consumption now comes from governance across our value chain by setting clear
Looking ahead, we believe that it is imperative to find
sustainable sources such as recycled wastewater and baselines for our suppliers in terms of ethical business
like-minded partners to support our journey and achieve
harvested rainwater, and the expansion of our wastewater practices and compliance with environmental, human
our sustainability objectives. For instance, as part of our
recycling operations in our townships has resulted in a 139% rights, and occupational health and safety (OHS) standards.
commitment to make world-class healthcare services
increase in total volume of treated water from sustainable Internally, we also established a Group OHS Committee
accessible to Indonesians, we have been collaborating with
sources (against our 2019 baseline). This demonstrates our that exercises direct oversight over the business units on
healthcare leaders around the world such as Asan Medical
commitment to water circularity within our operational OHS compliance and performance, and cross-shares best
Center in South Korea to expand our clinical capabilities
ecosystem, to address freshwater scarcity and water practices in terms of policies and training.
and enhance collaboration in patient care, referrals, as
supply disruptions in Indonesia.
2023 SUSTAINABILITY REPORT
well as the exchange of medical staff and researchers.
To improve our ESG reporting processes, we formalized
Beyond healthcare, we also partner with local players such
On the social impact front, we have ramped up our Group-wide standard operating procedures (SOPs)
as Voltron to make electric vehicle (EV) charging stations
community engagement programs under our flagship to provide clarity on data requirements, roles and
available at our townships and integrated developments,
campaign “Lippo Untuk Indonesia PASTI”. In 2023, we responsibilities, and reporting/approval workflows. As a
as part of our efforts to support the acceleration of EV
conducted a total of 1,284 PASTI activities across our preparatory measure for assurance readiness, we have
adoption in Indonesia. There are many other interesting
business units, ranging from festivals supporting local kickstarted our internal audit program starting with our
sustainability opportunities that we continue to explore
MSMEs to vocational training programs. A key highlight environmental disclosures, to ensure that we have strong
with our partners, especially in terms of sustainable finance
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was the launch of Siloam Hospitals’ “SELANGKAH” data integrity and internal controls in place for our ESG
PT LIPPO KARARWACI TBK
and product innovation, that will drive value creation for
campaign, which aims to provide free breast cancer reporting. We are currently in the process of integrating
our stakeholders in the near to long term.
screenings for over 25,000 women across Indonesia, the ESG data management systems across our respective
particularly in remote areas. As of 2023, 6,900 women have business units to streamline data consolidation and
Through our sustainability agenda, I am optimistic that we
benefited from the free breast cancer screenings, with performance management, and we expect to roll out a
can do much more to forge a better future for Indonesians.
around 45,000 members of the public participating in new Group-wide system in 2024.
I would like to express my heartfelt appreciation to
SELANGKAH health talks and education sessions.
everyone who has been a part of this journey with us.
Aside from policies and processes, we also seek to
ST R E N G T H E N IN G IN T E R N A L P O L IC IE S empower our employees at all levels of the organization
A ND PR OCES S E S through ESG capacity building. In 2023, we made it a top
priority to deepen the ESG knowledge and expertise of not
We remain committed to upholding the highest
just our Boards and leadership teams, but also our middle
standards of corporate governance and conducting
management and operational staff. Our employees
our business responsibly, which is why we continue
attended 1,156 hours of ESG training courses on various
to enhance our governance structures and processes
topics such as climate risks, decarbonization strategies,
in support of our sustainability ambitions. In 2023, John Riady
ISSB requirements, and sustainable finance. Group CEO
we rolled out a new Sustainable Procurement Policy
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
H I G H LI G H TS
Sustainability Performance
Sustainability Agenda
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
SUSTAINABILITY PERFORMANCE
>185M Rp
25.1B
Enhancing Quality of Life
Indonesians served CSR spending
Rp
97% 1,284
2023 SUSTAINABILITY REPORT
8,200
Rp
SOLD
16,990B
Rp Rp
Sold homes priced Community activities Healthcare professionals trained
Revenue under Rp 2 billion under PASTI at Siloam Training Center
TAX
~95% 1,725 315
Rp
850B %
Procurement budget MSMEs supported Nurses graduated under
Siloam scholarship program
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Taxes paid on Indonesian Suppliers through PASTI
PT LIPPO KARARWACI TBK
2 GHG Emissions 1 2
CO2 0.118 tCO₂e/m²
290 ktCO₂e
CO2
20
Caring for Our Environment
Green Buildings
EDGE Certifications Building Emissions Intensity
for Lippo Mall Puri & Sun Plaza New EV charging stations installed Scope 1 & 2 28% reduction from 2019 baseline
3
CO2
1.317M GJ 0.534 GJ/m 2
316 ktCO₂e ~3,200 Tons
Energy Consumption Building Energy Intensity Scope 3 Waste diverted from landfill
1.61 m³/m² 24% ~1.24M m³
4.595M m³ Building Water Intensity
Water consumption from
sustainable sources
Treated water from
sustainable sources
Water Consumption 14% reduction from 2019 baseline 2019 baseline: 6% 139% increase from 2019 baseline
15
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
SUSTAINABILITY PERFORMANCE
Formation of
Rp
Group Committee
Rp
6.9B for Occupational
Investing in Our People
Total training expenditure
Health and Safety
36% 64% 41 0.17
2023 SUSTAINABILITY REPORT
17,130 Male Female 702,071 Average training hours
Employee
Total Recordable Injury
Employees Total training hours per employee Frequency Rate (TRIFR)
40% 1.31
Female senior executives
1,156 5,196 Contractor
Total Recordable Injury
|
and managers ESG training hours Total OHS training hours Frequency Rate (TRIFR)
PT LIPPO KARARWACI TBK
Zero Zero
Championing Best Practices
Formalization of Socialization of Cases of non-compliance with Incidents of discrimination,
Group Sustainable Group-wide ESG laws and regulations resulting
in fines and/or sanctions
child labor, or forced labor
Procurement Policy reporting SOPs
& Supplier Code Zero Zero
and system integration for
ESG data management
of Conduct Legal cases of corruption, Complaints due to
fraud and bribery customer privacy and data leaks
99%
AUDIT
Refresher training completion
First TCFD Climate for Code of Conduct UNGC Submission Internal Audit
Scenario Analysis and anti-corruption policies of Communication on Progress for environmental data
16
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
SUSTAINABILITY AGENDA
As a forward-looking company, we are committed to pursuing sustainable growth and delivering large-scale positive impact to Indonesians throughout the archipelago, including
future generations. Our 2030 Sustainability Agenda articulates our ESG ambitions through concrete outcomes that will benefit our stakeholders and improve accountability. We are fully
committed to supporting and accelerating Indonesia’s 2030 Agenda for Sustainable Development, and aspire to be an ESG leader in Indonesia. Our 2023 ESG performance against our
2030 targets is below.
ENHANCING QUALITY OF LIFE CARING FOR OUR ENVIRONMENT INVESTING IN OUR PEOPLE CHAMPIONING BEST PRACTICES
2023 SUSTAINABILITY REPORT
AFFORDABLE HOUSING OPERATIONAL EMISSIONS OCCUPATIONAL HEALTH & SAFETY BUSINESS ETHICS
2030 TARGET 2023 PERFORMANCE 2030 TARGET 2023 PERFORMANCE 2030 TARGET 2023 PERFORMANCE 2030 TARGET 2023 PERFORMANCE
At least 90% of sold homes 97% of sold homes priced 35% reduction in building 28% reduction in Zero fatalities 2 fatalities (1 employee & 100% completion rate for 99% completion rate
priced under Rp 2 billion1 under Rp 2 billion emissions intensity3 by building emissions 1 contractor) training on Code of for training on Code
each year 2035, with 15% reduction intensity Conduct and of Conduct and
Zero high consequence Zero high consequence
by 2030 anti-corruption policies anti-corruption policies
injuries injuries
Baseline: 2019 (0.176 ktCO2e/m2)
ACCESSIBLE HEALTHCARE ≤ 1 Total Recordable Injury TRIFR (Employee): 0.17
Frequency Rate (TRIFR) TRIFR (Contractor): 1.31 COMPLIANCE
2030 TARGET 2023 PERFORMANCE
|
WATER CONSUMPTION
PT LIPPO KARARWACI TBK
2030 TARGET 2023 PERFORMANCE
Hospitals and clinics in Hospitals and clinics in
2030 TARGET 2023 PERFORMANCE
over 60% of provinces in 61% of provinces in TRAINING & DEVELOPMENT Zero cases of Zero cases of
Indonesia, with over 40% Indonesia, with 46% of 20% of water consumption 24% of water consumption non-compliance with non-compliance with
2030 TARGET 2023 PERFORMANCE
of hospital portfolio hospital portfolio located from sustainable sources2 from sustainable sources laws and regulations laws and regulations
located outside of Java outside of Java Average 40 training hours Average 41 training resulting in fines resulting in fines
per employee hours per employee and/or sanctions and/or sanctions
Zero legal cases of Zero legal cases of
COMMUNITY ENGAGEMENT WATER TREATMENT
ESG TRAINING corruption, fraud corruption, fraud
2030 TARGET 2023 PERFORMANCE 2030 TARGET 2023 PERFORMANCE and bribery and bribery
2030 TARGET 2023 PERFORMANCE
3,000 community 1,716 PASTI community 30% increase in volume of 139% increase in volume of
activities under PASTI2 activities (cumulative) treated water from treated water from Double ESG training hours 1,156 ESG training hours
Baseline: 2022 (800 hours)
PROCUREMENT
Cumulative 2022-2030 2023: 1,284 PASTI sustainable sources4 sustainable sources
community activities Baseline: 2019 (~520,000 m3) 2030 TARGET 2023 PERFORMANCE
Formulate Group Socialized Group
Sustainable Procurement Sustainable Procurement
ECONOMY EMPOWERMENT WASTE DIVERSION
Footnotes: Policy, and socialize Policy and Supplier Code
2030 TARGET 2023 PERFORMANCE 2030 TARGET 2023 PERFORMANCE requirements to vendors of Conduct to vendors
1
Inflation-adjusted Rp 2 billion at 2022 levels
30,000 MSMEs 4,714 MSMEs supported Double amount of waste 3,200 tons of waste 2
PASTI is the Group framework for community
supported under PASTI under PASTI (cumulative) diverted from landfill diverted from landfill
engagement and CSR initiatives
Cumulative 2022-2030 2023: 1,724 MSMEs Baseline: 2022 (1,400 tons)
3
Scope 1 & 2 emissions intensity of high-rise residential
buildings, hospitals, malls, and hotels (average)
4
Sustainable water sources include recycled wastewater
17 and harvested rainwater
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix O U R SU STAINABILITY A PPROAC H In line with Lippo Group’s overarching vision of “Growing in Stewardship, Transforming Lives”, we place sustainability at the heart of everything we do. We are committed to being responsible stewards of the resources, environment, and communities placed under our care. As a forward-looking company, we strive to pursue sustainable growth and deliver transformative impact to the millions we serve throughout the archipelago, as well as the future generations to come. We recognize that we cannot do this alone, which is why we work together with the myriad business partners and stakeholders across our value chain to adopt ESG best practices and leverage our respective strengths. Together, we stand united for a better Indonesia. Sustainability Framework Sustainability Governance Materiality Assessment & Stakeholder Engagement Supporting UN SDGs & UNGC Principles Climate Risks & Opportunities
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
SUSTAINABILITY FRAMEWORK
At Lippo Karawaci, we aspire to advance the
well-being of Indonesians at every stage of life.
Our Sustainability Framework articulates our
approach to sustainable value creation for our
stakeholders across four key pillars:
VISION Advancing the Well-Being of Indonesians at Every Stage of Life
2023 SUSTAINABILITY REPORT
1 Enhancing Quality of Life
Enhancing Caring for Investing in Championing
2 Caring for Our Environment Quality of Life Our Environment Our People Best Practices
3 Investing in Our People Drive sustainable Improve resource Create a fair and Uphold highest
economic growth efficiency and reduce inclusive workplace standards of corporate
4 Championing Best Practices2 throughout Indonesia environmental footprint governance
|
Prioritize health, safety
PT LIPPO KARARWACI TBK
Supported by a robust sustainability Provide quality living Develop greener and well-being Promote sustainable
governance structure, this Framework guides and socioeconomic products and processes practices across
the integration of sustainability into our opportunities for local Develop and empower value chain
business strategy, policies, and operations. communities Mitigate climate risks staff to unlock their
and capitalize on new full potential Improve accountability
Innovate to enhance opportunities and transparency in
offerings and enrich the ESG performance
customer experience
2
These pillars correspond with the four overarching themes of the
WEF Stakeholder Capitalism Metrics – Prosperity, People, Planet,
and Principles of Governance.
19
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
SUSTAINABILITY GOVERNANCE
At Lippo Karawaci, we are committed to As the lead governing bodies of Lippo Karawaci, the BoD and BoC provide
integrating sustainability into our organizational strategic direction for the Group, ensuring that its approach to material
BOARD OF BOARD OF ESC issues aligns with the interests of the business and stakeholders.
structure and governance framework. We believe G OVERNA NCE & DIRECTORS COMMISSIONERS
The BoD bears ultimate responsibility for the Group’s ESG performance,
that a robust sustainability governance structure, ACCOUNTA B ILITY
while the BoC serves as a supervisory and advisory body to the BoD. Both
which emphasizes our ESG priorities across all Boards review the Group’s sustainability targets and performance, as well
2023 SUSTAINABILITY REPORT
organizational levels, enables us to serve our as approve relevant disclosures such as the Sustainability Report.
stakeholders in a more responsible manner.
The ESG Committee is appointed by the BoD to set the direction for the
Group’s ESG strategy, policies, and initiatives, as well as exercise oversight
Our sustainability governance is spearheaded
over the Group’s ESG performance. Chaired by the Group CEO, the ESG
by the ESG Committee, anchored by the ESG Committee consists of BoD Members and Senior Executives who hold
STRATEG Y & ESG COMMITTEE
Steering Group, and supported by champions OVERS IG HT positions of responsibility and/or possess expertise which are relevant to
from the relevant corporate functions and our the Group’s ESG strategy and policies. The ESC Committee periodically
reports to the BoD and BoC to seek guidance on ESC priorities and
business units. The Group Sustainability Function
|
workplans, and to provide updates on the Group’s ESG performance. The
PT LIPPO KARARWACI TBK
acts as a “Centre of Excellence” to support the
ESG Committee meets at least four times a year.
ESG Committee, ESG Steering Group, and each
The ESG Steering Group is the platform through which the Group’s
business unit in their respective ESG journeys.
ESG strategy is operationalized. Led by the Group Head of Sustainability,
Together, they are responsible for formulating
it comprises key representatives from our business units and relevant
the Group’s sustainability strategy and driving ESG STEERING GROUP
corporate functions, who are responsible for executing workplans
initiatives to achieve the Group’s ESG targets and MA NAG EMENT, approved by the ESG Committee and monitoring ESG performance in
COORDINATION, Group ESG PICs ESG PICs
commitments. This structure provides multiple their respective areas of operation. These corporate functions include
MONITORING Sustainability (Corporate (Business
channels through which we can escalate ESG Function Functions) Units)
Sustainability, Risk Control and Assurance, Corporate Secretary,
Human Resources, Investor Relations, and Corporate Communications.
risks and issues of concern, remediate negative
When necessary, the ESC Steering Group convenes working groups
impacts, and undertake policy reviews where
to socialize workplans, create alignment, and drive progress in specific
necessary. Bottom-up input from the business
ESG workstreams.
units and corporate functions is frequently
tabled to the ESG Committee for consideration Our business units, with support from the relevant corporate functions,
EXECUTION BUSINESS UNITS are held accountable for their ESG performance through regular reporting
and follow-up.
to the ESG Committee via the ESG Steering Group.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
MATERIALITY ASSESSMENT &
STAKEHOLDER ENGAGEMENT
MATER I A LI TY A S S E S S M E N T
Every year, we perform a materiality assessment to review the ESG topics that have a material impact on our business
and our stakeholders. This year, we conducted a comprehensive review of our material topics through:
2023 SUSTAINABILITY REPORT
PE E R BE N C H M A R K IN G
Through peer benchmarking and a detailed study of industry best practices, we understand how peers
approach material topic selection. This provides valuable insights, helping us align our material topics
selection with industry expectations given the sectoral specific stakeholders, the business nature of the
industries, and the respective weight and relevance of material topics.
2 YE A R T IM E -PE R IO D CO M PARIS O N
|
PT LIPPO KARARWACI TBK
The 2-year time period comparison was used to compare the material topics selection and prioritization
between 2021 and 2022. We assessed trends and developments of the material topics selected and key
changes in prioritization of topics. The purpose was to gain insights into how stakeholders rating of
material topics have evolved over past years.
S U R VEYS A N D FO CU S G RO U P D IS CUSSI O NS
Stakeholder engagement was conducted through employee surveys and focus group discussions with
each business unit. We conducted this two-way communication to deepen our understanding of internal
stakeholder concerns as well as feedback received from external stakeholders.
GAP ANALYSI S AG A I N ST G LO B A L SUSTAINABIL ITY R E P O RT ING STANDAR D S ,
FRAMEWOR KS , A N D B EN CH MA RKS
Through our gap analysis applied against the global reporting standards, frameworks, and benchmarks by
ESG rating agencies, we identified discrepancies between our current disclosures and desired disclosures,
to ensure that we continue to keep pace with what is material for our industry peers and best practices.
This year, improvements were made to our reporting methodologies and disclosures to further align with
21 industry leaders and global reporting standards.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
In summary, our exercise has led to a streamlining of
several material topics, such as integrating “Responsible
Value Chain” into “Ethics & Compliance”, “Diversity
Water Employment & Rights
Equity & Inclusion” into “Employment & Rights”, “Climate Economic Contribution
Stewardship
Resilience” into our TCFD Report under “Climate Risks
and Opportunities” and incorporating “Biodiversity”
IMPORTANCE TO STAKEHOLDERS
throughout the relevant environment-related sections.
Community Support &
Occupational Health & Energy Efficiency &
We believe that streamlining these material topics will Engagement
Safety Emisisons
enable us to produce more structured and comprehensive
disclosures. In order to better align with international
2023 SUSTAINABILITY REPORT
Training &
frameworks, we have relabeled “Health & Safety” to Development
“Occupational Health & Safety”. We have also reprioritized
several material topics to reflect our latest management
approach and priorities in our sustainability journey. The Governance &
final set of ESG topics and materiality matrix are approved Accountability Customer Service &
Waste Management Satisfaction
by the ESG Committee, and subsequently validated by the
Board of Directors and Board of Commissioners. As our
Ethics & Compliance
|
business landscape continues to evolve, we will regularly
PT LIPPO KARARWACI TBK
review the relevance of these material topics to our
business and update their prioritization where necessary.
Product
Innovation
STA K E H OLD E R E N G AG E M E N T
We strive to build positive relationships and actively engage
IMPACT ON THE BUSINESS
with our internal and external stakeholders throughout the
year. Stakeholders are defined as the individuals or groups
Enhancing Quality of Life
that have interests that are affected or could be affected
Caring for Our Environment
by the Group’s activities. These individuals or groups are
Investing in Our People
identified through screening by the Group Sustainability
Championing Best Practices
Function and are engaged through regular touchpoints
and various feedback channels, such as surveys and focus
group discussions.
Moderately Highly Critical
Material Material Material
22
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
By consistently communicating across diverse platforms by publishing materials, including quarterly financial results, and the publishing of over 70 media articles featuring
and employing feedback mechanisms, we gain a deeper press releases, and investor presentations. Additionally, as a various business performance highlights and ESG
understanding of our stakeholders and their emerging publicly listed entity, we regularly disclose information and initiatives. We also continue to improve internal
needs and concerns. Upon identifying emerging needs announcements through the Indonesia Stock Exchange communication with our employees through our internal
and concerns among stakeholders, the Group reviews and shareholder meetings, as well as actively engage newsletters and events, as well as regular socialization
these issues and makes subsequent adjustments. in investor meetings, media gatherings, and various on ESG topics - please refer to “Employee Engagement
These adjustments will be thoughtfully incorporated conferences. This year, we ramped up our corporate & Retention” on page 68 for more information.
or duly considered in the decision-making process. communications to external stakeholders, including The table below highlights the Group’s response to specific
We ensure good communication with stakeholders through media engagements with Indonesian Chief Editors stakeholder concerns.
2023 SUSTAINABILITY REPORT
Government & Industry
Employees Investors & Rating Agencies Customers & Tenants Communities Vendors & Suppliers
Associations
• Employment and rights • Economic contribution • Ethics and compliance • Economic contribution • Community support and • Responsible value chain
• Ethics and compliance • Governance and accountability • Employment and rights • Customer service and satisfaction engagement • Ethics and compliance
• Economic contribution
TOP ESG
• Training and development • Climate resilience • Health and safety • Product innovation • Health and Safety
TOPICS
• Health and safety • Governance and accountability • Health and safety • Biodiversity • Energy efficiency and emissions
• Diversity and equal opportunity • Energy efficiency and emissions • Water stewardship
• Water stewardship • Waste management
• Waste management
• Employee benefits and assistance • Investor meetings • Regular interaction with national/ • Product launches and customer • Public spaces and programs • Tenders
|
• Training programs (internal/ • Investor releases and presentations local government agencies events • Social engagement and CSR • Vendor/supplier policies
PT LIPPO KARARWACI TBK
external) • Quarterly earnings calls • Permits and licensing approvals • Tenant agreements activities • Regular engagement
HOW WE
ENGAGE
• Employee engagement activities • Investor conferences and • Events organized by government • Digital applications and services • Online and offline media • Collaboration with local vendors
• Career and talent development roadshows and industry associations • Customer service and guest engagement
programs • Annual and Sustainability Reports relations
• Company policies • General Meeting of Shareholders • Surveys, feedback platforms, and
• Volunteerism market research
• Social media channels
• Internal ESG alignment and • Price volatility and inflationary • Evolving regulatory frameworks • Quality of feedback • Measurement of social impact • Nascent awareness of ESG best
CHALLENGES
buy-in across business units pressures • Advocacy for ESG priorities • Complaints that are difficult to • Approach to CSR limited to practices and sustainable supply
• Changes to operational SOPs to • Stock performance resolve immediately philanthropic activities chain
OUR
align with best practice • Global uncertainties from • Effectiveness of
• Understanding of ESG concepts geopolitical conditions and communication channels
and requirements at the middle macroeconomic factors
manager levels and below
• Weekly updates on company • Provide timely updates to bond and • Maintain engagement with • Improve products and services • Implement Group social • Promote business ethics through
news and activities equity investors through conference agencies and institutions to ensure through soliciting regular engagement framework Vendor Integrity Pledge and
• Increase employee training hours calls and investor release compliance feedback (PASTI) Sustainable Procurement Policy
and leadership development • Improve transparency in disclosures • Support KADIN initiatives through • Enhance customer and tenant • Newsletters and social media • Recognize achievements of good
programs (e.g. enhancing ESG disclosures – B20 participation and ESG experiences through innovation engagement performers
RESPOND
TCFD, SASB) taskforces
HOW WE
• Update Code of Conduct to • Increase engagement via digital • Increase community • Prioritize local vendors and small
promote business and ethics • Regular meetings to understand • Become a UNGC member platforms engagement and volunteering businesses
• Promote greater diversity, equity, and address external stakeholders’ • Conduct CSR activities in (e.g. MySiloam app)
and inclusion at the workplace concerns partnership with local government • Speed up complaint resolution
• Launch campaigns on health • Engage rating agencies to agencies processes
and wellness, environmental understand ESG rating criteria • Participate in surveys by OJK
awareness, and community • Discussions on ESG best practices and IDX
23 engagement and other topics such as sustainable
financing
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
SUPPORTING UN SDGs & UNGC PRINCIPLES
The UN SDGs rally governments and corporations to
advance the well-being of people, societies, and the
planet by providing a blueprint to address the world’s
most pressing sustainability development challenges. We
are committed to aligning our ESG strategy to meet the
underlying actions and priorities of the UN SDGs, as well as
2023 SUSTAINABILITY REPORT
Indonesia’s 2030 Agenda for Sustainable Development. We
have mapped our sustainability framework and material
ESG topics to 13 UN SDGs which we believe are relevant
to our business operations and where we can create the
most significant impact.
In 2022, we became a signatory to the United Nations
Global Compact (UNGC). By joining the world’s largest
|
corporate sustainability initiative, we are pledging our
PT LIPPO KARARWACI TBK
commitment to support the UNGC’s Ten Principles on
human rights, labour, environment, and anti-corruption,
as well as to take strategic actions to advance the UN SDGs.
This Report contains our disclosures based on the
UNGC’s Ten Principles – please refer to “Content Index” on
page 104.
24
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Supporting UN SDGs Our Contributions ESG Topics
G OAL 3 • Provide quality and accessible healthcare across • Economic Performance
Good Health & Well-being Indonesia, including remote areas. • Community Support and Engagement
TARGET 3. 8 TAR G E T 3 .C • Promote health and wellness through public • Customer/Tenant Engagement
Achieve universal health coverage, including Substantially increase health financing and campaigns.
financial risk protection, access to quality the recruitment, development, training • Occupational Health and Safety
essential health-care services and access to and retention of the health workforce in • Provide customers, visitors and employees with a
safe, effective, quality, and affordable essential developing countries, especially in least safe and healthy living and working environment.
medicines and vaccines for all. developed countries and small island
developing States.
G OAL 4 • Equip employees with the necessary skills through • Community Support and Engagement
2023 SUSTAINABILITY REPORT
Quality Education training and development to fulfil their career • Employment
aspirations.
TARGET 4 . 4 • Training and Development
By 2030, substantially increase the number of youth and adults who have relevant skills, • Ensure access to quality education and vocational
including technical and vocational skills, for employment, decent jobs, and entrepreneurship. training across Indonesia.
G OAL 5 • Promote gender equality and empower women • Employment
Gender Equality at the workplace. • Diversity and Equal Opportunity
TARGET 5.1 TAR G E T 5 . 5 • Eradicate all forms of workplace discrimination • Non-Discrimination
End all forms of discrimination against all Ensure women’s full and effective participation and establish effective channels for grievances.
|
women and girls everywhere. and equal opportunities for leadership at
PT LIPPO KARARWACI TBK
all levels of decision making in political,
economic, and public life.developing States.
G OAL 6 • Ensure availability of clean water at all our • Water Stewardship
Clean Water and Sanitation managed properties and townships. • Waste Management
TARGET 6 . 3 TAR G E T 6 . 4 • Manage water resources efficiently through
By 2030, improve water quality by reducing By 2030, substantially increase water-use optimizing water usage and transitioning to
pollution, eliminating dumping, and efficiency across all sectors and ensure sustainable sources such as recycled wastewater
minimizing release of hazardous chemicals sustainable withdrawals and supply of
and materials, halving the proportion of freshwater to address water scarcity and
and harvested rainwater.
untreated wastewater, and substantially substantially reduce the number of people • Ensure proper disposal of wastewater.
increasing recycling and safe reuse globally. suffering from water scarcity.
G OAL 7 • Increase energy efficiency to lower carbon Energy Efficiency and Emissions
Affordable and Clean Energy emissions and operational costs.
TARGET 7. 2 TAR G E T 7. 3 • Switch to renewable energy through the adoption
By 2030, increase substantially the share of By 2030, double the global rate of of technologies such as rooftop solar photovoltaic
renewable energy in the global energy mix. improvement in energy efficiency. (PV) systems.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Supporting UN SDGs Our Contributions ESG Topics
G OAL 8 • Contribute to the local economy and MSMEs • Economic Performance
Decent Work and Economic Growth through job creation and business partnerships. • Community Support and Engagement
TARGET 8 .1 TAR G E T 8 . 8 • Protect and promote human rights and labor rights • Employment
Sustain per capita economic growth in Protect labor rights and promote safe and at the workplace.
accordance with national circumstances secure working environments for all workers,
and, in particular, at least 7% gross domestic including migrant workers, in particular
product growth per annum in the least women migrants, and those in precarious
developed countries. employment.
G OAL 9 • Provide products and services that meet • Product Innovation
2023 SUSTAINABILITY REPORT
Industry, Innovation and Infrastructure infrastructural and social needs through • Energy Efficiency and Emissions
continuous innovation.
TARGET 9. 4 TAR G E T 9. 5
By 2030, upgrade infrastructure and retrofit Enhance scientific research, upgrade the • Implementing green building practices such as
industries to make them sustainable, with technological capabilities of industrial sectors in energy audits and building management systems.
increased resource-use efficiency and greater all countries, in particular developing countries,
adoption of clean and environmentally sound including, by 2030, encouraging innovation
technologies and industrial processes, with and substantially increasing the number of
all countries taking action in accordance with research and development workers per 1 million
their respective capabilities. people and public and private research and
development spending.
G OAL 10 • Advocate for equitable employment practices and
|
• Employment
PT LIPPO KARARWACI TBK
Reduced Inequalities DEI principles in the workplace. • Diversity and Equal Opportunity
TARGET 10. 2 TAR G E T 10. 3 • Reinforce zero tolerance policy for discrimination. • Non-Discrimination
By 2030, empower and promote the social, Ensure equal opportunity and reduce
economic and political inclusion of all, inequalities of outcome, including by
irrespective of age, sex, disability, race, eliminating discriminatory laws, policies
ethnicity, origin, religion or economic or and practices and promoting appropriate
other status. legislation, policies, and action in this regard.
G OAL 11 • Provide affordable housing options that cater to • Community Support and Engagement
Sustainable Cities and Communities different market segments in Indonesia, especially • Product Innovation
first-home owners.
TARGET 11.1 TAR G E T 11.6 • Waste Management
By 2030, ensure access for all to adequate, safe, By 2030, reduce the adverse per capita • Contribute to local communities and nurture a
and affordable housing and basic services and environmental impact of cities, including by society that is inclusive and vibrant.
upgrade slums. paying special attention to air quality and
municipal and other waste management. • Minimize any negative environmental impacts
through an environmental impact assessment and
responsible waste management.
26
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Supporting UN SDGs Our Contributions ESG Topics
G OAL 12 • Reduce the consumption of natural resources and • Energy Efficiency and Emissions
Responsible Consumption and Production optimize resource efficiency across operations and • Water Stewardship
the entire value chain.
TARGET 12 . 2 TAR G E T 12 . 5 • Waste Management
By 2030, achieve the sustainable management By 2030, substantially reduce waste • Minimize waste generation and enhance waste
and efficient use of natural resources. generation through prevention, reduction, diversion at all managed assets and townships.
recycling and reuse.
• Raise environmental awareness among
stakeholders.
G OAL 13 • Incorporate climate-related risks and opportunities • Energy Efficiency and Emissions
2023 SUSTAINABILITY REPORT
Climate Action in strategy and risk management. • Governance and Accountability
TARGET 13. 2 TAR G E T 13 . 3 • Provide training on climate change mitigation and
Integrate climate change measures into Improve education, awareness-raising and adaptation to build capacity.
national policies, strategies, and planning. human and institutional capacity on climate
change mitigation, adaptation, impact • Align ESG priorities with global and national
reduction and early warning. sustainability agendas.
G OAL 15 • Reduce any negative impacts on biodiversity due to • Biodiversity
Life on Land our operations.
TARGET 15.5 • Actively preserve and revitalise natural
Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of environments in urban areas.
|
biodiversity and, by 2020, protect and prevent the extinction of threatened species.
PT LIPPO KARARWACI TBK
G OAL 16 • Uphold the highest standard of corporate • Non-Discrimination
Peace, Justice and Strong Institutions governance and conduct our business with • Governance and Accountability
integrity.
TARGET 16 .5 TAR G E T 16 . B • Anti Corruption / Anti Competitive
Substantially reduce corruption and bribery in Promote and enforce non-discriminatory laws • Enhance accountability and transparency in ESG
all their forms. and policies for sustainable development. disclosures.
TARGET 16 .6 • Establish a non-discriminatory workplace
Develop effective, accountable and
transparent institutions at all levels.
environment and reinforce zero tolerance for
discrimination.
27
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
CLIMATE RISKS & OPPORTUNITIES
As a real estate and healthcare company managing a The BoD and BoC schedule regular meetings throughout All ESG targets and climate-related targets are approved
portfolio of buildings and physical assets in Indonesia, the year, during which specific ESG agenda items are by the ESG Committee and subsequently tabled for
climate resilience continues to be at the core of our tabled for approval or informational purposes on an approval by the BoD and BoC. Starting in 2024, the Group’s
strategy. We recognize climate change is inevitable, and ad hoc basis. Examples include the approval of the sustainability performance will be reviewed on a quarterly
proactive measures are needed to adapt and mitigate the Group Sustainable Procurement Policy and updates basis. Please refer to “Sustainability Governance” on page
impact of climate change. Operationally, our businesses on International Sustainability Standards Board (ISSB) 20 and “Governance and Accountability” on page 80 for
2023 SUSTAINABILITY REPORT
are already confronted with heightened risks of acute and requirements. The BoD has appointed the ESG Committee further details.
chronic extreme weather events due to climate change. As to set the direction for the Group’s ESG strategy, policies,
such, there is an urgent need for us to accelerate our efforts and initiatives, as well as exercise oversight over the STR ATEGY
to mitigate and adapt to climate change as we transition Group’s ESG performance. Under the guidance of the ESG
In 2022, we conducted our first bottom-up climate risk
to a more sustainable, low-carbon economy. In 2022, Committee, the lens of climate governance is applied to
assessment to evaluate the climate-related risks and
we adopted the recommendations of the Task Force on various internal processes, including risk management,
opportunities affecting our business across different asset
Climate-Financial Disclosures (TCFD) to disclose our first business plans, annual budgets and strategy. The ESG
classes and time horizons. The results of this assessment
TCFD Report on climate-related risks and opportunities. Committee meets at least four times a year and reports
|
have been integrated into our risk management
This year, we have built on our previous disclosures to periodically to the BoD and BoC on its activities and
PT LIPPO KARARWACI TBK
procedures, enabling us to make better-informed
include a high-level climate scenario analysis, as well as recommendations, including with regard to climate-
decisions in terms of strategic planning. Our climate risk
quantitative analysis of the financial impact of climate risk related risks and opportunities. Any significant climate
assessment comprised the following stages:
on our assets and operations. We are dedicated to aligning risks identified by the ESG Committee is escalated to
1. Analysis of current and upcoming trends specific to
completely with TCFD recommendations and improving the attention of both the BoD and BoC for thorough
our real estate, healthcare, and lifestyle assets, as well
our disclosures in accordance with best practices. deliberation.
as policies and regulations specific to Indonesia
2. Internal stakeholder assessment involving key
GOVER NA N CE At the operational level, the ESG Committee is supported
representatives of each business unit to gain insights
by the ESG Steering Group, comprising the Group
Since 2021, we have established a sustainability governance and perspectives on climate-related risks and
Sustainability Function and key representatives from
structure that provides oversight and accountability for our opportunities
each business unit and relevant corporate functions. The
climate agenda. Our Board of Directors (BoD) bears ultimate 3. Assessment of the impact of climate-related risks
ESG Steering Group is responsible for coordinating and
responsibility for the Group’s ESG performance, while our identified across different time horizons, considering
monitoring ESG performance for all business units. The
Board of Commissioners (BoC) serves as a supervisory their magnitude and probability of occurrence
Group Sustainability Function oversees ESG reporting and
and advisory body to the BoD. Together, they review our 4. Evaluation of viable control measures to either mitigate
data collection, assessment of sustainability trends, risks
sustainability performance and targets on an annual or adapt to the climate-related risk identified based on
and opportunities, capacity building, and stakeholder
basis, prior to the issuance of the Sustainability Report. available resources and capabilities
28 engagement.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Climate-related risks Climate-related risk description and potential impact
Floods Our properties may face increased occurrences of flooding due to high
rainfall events experienced in Indonesia. As a result, this could cause
business interruptions and infrastructure damage, leading to higher
financial costs. Flooding could also potentially endanger the safety of our
stakeholders at our properties.
Droughts Prolonged periods of abnormally low rainfall may lead to droughts and a
shortage of water. This poses significant social impacts on our stakeholders
as disruptions in water supplies can impact their health and safety.
Heavy precipitation Changes in precipitation patterns, including prolonged rainy seasons and
PHYSICAL
(storms) the presence of tornadoes or typhoons, can lead to damage to property and
2023 SUSTAINABILITY REPORT
infrastructure, disruption of supply chains, and business interruption. This Climate-related opportunities Strategies to capture
results in higher costs incurred, as well as posing health and safety risks to Climate-related opportunities
description and potential impact opportunities
VI S I ON
our stakeholders.
Advancing the Well-Being of Indonesians at Every Stage of Life
Higher temperatures Higher temperatures will lead to an increase in operating costs due to Development of new Creating greener products and We continue to strive for green
increased cooling demands. We may also face reduced revenue and sustainable products or services to tap into new groups building certification for our
productivity from our workforce due to higher absenteeism rates. services through R&D of customers who place a high existing properties and new
and innovation focus on sustainability. products. We will also step up
Landslides
Enhancing Caring for
Landslides due to heavy torrential rain or earthquakes may lead to
decreased property values and result in costly repairs from damage to
Investing in Championing
our engagements with key
stakeholders and partners to
Quality of Life
property and infrastructure. Our Environment Our People Best Practices
better capitalize on demand for
more sustainable products and
Extreme waves & coastal Rising sea levels can lead to the erosion of our land bank and damage/
services.
|
abrasion (rising sea levels) devaluation of properties near coastal areas, and increased costs from
PT LIPPO KARARWACI TBK
investment in coastal infrastructure adaptation measures. Shift towards renewable
Drive sustainable Improve resource Create a fair and Using renewable energy UpholdWehighest have completed multiple
energy sources sources such as solar power feasibility and site studies for
Greater expectations and There may be a shift in stakeholders’ preferences towards more sustainable
instead of conventional fossil solar photovoltaic installation at
economic growth
demand from customers and efficiencyinand
products and the inclusion of ESG considerations reduce
our decision-making inclusive workplace standards
fuel can result in cost saving.
of corporate
our properties, with the aim of
investors for more sustainable
processes. Failure to meet industry standards and the expectation of
installing rooftop solar panels
throughout stakeholders
products and services Indonesia could result in weakerenvironmental footprint
demand as well as loss of reputation and governance
across our portfolio of assets.
investor confidence.
We have also switched to bio-
Prioritize health, safety based fuel in compliance with
Disruption of new (low Our current technology may become obsolete, which may lead to additional
the Indonesian government’s
Provide quality
emission) technology
living
costs to Develop
adopt and deploy alternative greener
low-emission technology. and well-being Promote sustainable
regulations.
More stringent building We may face stricter regulations on urban planning and construction,
regulations and socioeconomic products
including mandatory building codes. This may leadand processes
to an increase in costs Adoption of green practices
Upgrading to more efficient across
We continue to conduct
TRANSITION
due to mandatory investments required for asset enhancement and technology equipment enables us to energy audits and explore
opportunities for local
retrofitting to comply with regulations. reduce operating costs in value chain
Develop and empower asset enhancement initiatives
the long run by reducing that enable us to leverage the
communities
Increase in energy cost Mitigatetransitions
As the Indonesian energy system progressively climate risks
away from staff to unlock their
energy consumption and benefits of green technology.
fossil fuels, we may experience higher fossil fuel prices and greater price improving our water and waste
fluctuations. and capitalize on new full potential management. Improve accountability
Innovate to The
More stringent carbon tax
enhance opportunities
Indonesian government has plans to implement a carbon tax on Sustainable finance Tapping on sustainable and transparency in
We will explore sustainable
carbon-intensive industries in the near future. This may result in increased finance will improve our finance opportunities based on
offerings and enrich the
operational costs for properties with high emissions. access to financing, lower ESG
our performance
our ESG targets.
cost of capital and increase
Increase in cost of materials Disruption in supply chain from climate-related physical risks will increase
and equipment customer experience
operational costs and affect commodity prices, leading to price volatility.
collaborations with banks and
financial institutions.
We may also incur additional costs from switching to low-carbon materials
and more energy-efficient equipment.
29
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
This year, we have conducted our inaugural climate In a RCP 2.6 scenario, which represents a best-case scenario,
PHYSICAL RISKS
scenario analysis, forecasting the potential impact of global greenhouse gas emissions are stabilized by mid-
YEAR
identified physical and transition risks on our businesses, century, limiting the average global temperature increase Extreme Heat
Sea
Flood Landslide Drought level
weather stress rise
investments, and assets. The scenarios analysis exercise to around 2°C above pre-industrial levels. Intensive climate
covers the organization’s resilience over two RCP policies would be required over the next few years globally,
2030
scenarios - RCP 2.6 and RCP 8.5. Our model and evaluation
3
including the participation of underdeveloped countries
are based on climate scenario RCP 2.6 and RCP 8.5, where with assistance of governmental aid or a developed, 2100
global temperatures are limited to 2°C and 4°C by 2100 wealthy nation to achieve those climate change reduction
respectively. Our time horizons cover 2030, aligning with policies. In this scenario, transition risks are prevalent and 2030
our sustainability agenda and 2100, adhering to TCFD best physical risks are low as significant effort and measures
2023 SUSTAINABILITY REPORT
practices. As part of our scenario analysis, we have also are taken to mitigate climate change, strict regulation and 2100
collected physical risk impacts from all business units and policies are required for global temperatures being limited
examined the risks that have affected us in recent years. to 2°C by 2100.
TRANSITION RISKS
The aim is to assess the financial implications of these
physical risks, identify the most common risks affecting us, In a RCP 8.5 scenario, which represents a worst-case YEAR
Greater expectations and
Disruption of new
demand from customers and
and develop strategies to mitigate or adapt to them. scenario where greenhouse gas emissions continue to (low emission) technology
investors for more sustainable
products and services
rise rapidly throughout the century, leading to a much
Scenario Analysis (Country Level)
|
higher level of global warming. We face an average global 2030
PT LIPPO KARARWACI TBK
At country level, we identified the potential impact of temperature increase of 4°C or more by the end of the
physical and transition risks in 2030 and 2100 by using century. In this scenario, physical risks are prevalent and 2100
external data sources such as Buku Indeks Risiko Bencana transition risks are low as RCP 8.5 assumes a trajectory
Indonesia (IRBI), Climate Central, Climate Knowledge with a significant increase in greenhouse gas emissions, 2030
Portal, INFORM Risk Index, and Aqueduct. Please refer particularly carbon dioxide. This results in a more
pronounced warming effect on the Earth’s climate and 2100
to “Appendix - Scenario Analysis” on pages 97 to 98 for
more details on the potential impact of each physical and secondary effects of other physical risks such as flooding
LEG EN D
transition risk4 in Indonesia. and heavy precipitation are increased.
RCP 2.6 scenario Low
RCP 8.5 scenario Medium
High
3
Representative Concentration Pathways (RCPs) are a set of scenarios that describe possible future changes in greenhouse gas concentrations in the atmosphere. These scenarios are used by climate scientists to model how the Earth’s climate might change in the
future. The Intergovernmental Panel on Climate Change (IPCC) developed the RCPs. They are not predictions, but simulations that help scientists understand how the climate might change depending on our emissions choices. The IPCC uses four main RCPs, ranging
from very low emissions (RCP 2.6) to very high emissions (RCP 8.5). Each scenario translates into a potential range of global temperature increase by 2100.
4
In the climate risk assessment conducted last year, we examined additional transition risks, including the implications of a more stringent carbon tax, enhanced building regulations, increasing energy costs, and increased costs for materials and equipment. After
thorough analysis, it was determined that these transition risks are not significant for our particular sectors in Indonesia based on existing policies and regulations in the near to mid-term. We commit to regularly reviewing and monitoring any shifts in the landscape,
30 updating our climate risk evaluations annually.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
CLIMATE RISK IMPACT UNDER SCENARIOS All climate-related risks identified are included in our risk
register, and risks are prioritized based on an impact &
probability assessment. Subsequently, the Risk Manager
presents the results of risk identification, assessment
CL I MATE RI S K I MPACT
and treatment to their respective Senior Management
and Internal Audit teams for approval. The BoD and BoC
oversee the implementation of risk management and
regularly engage with Senior Management teams to
review the business strategy.
2023 SUSTAINABILITY REPORT
Our approach to climate risk management is based on
H istorical 2030 21 00 the TCFD Recommendations, COSO ERM Framework and
YE A R
ISO 3100 Risk Management. Climate risks are integrated
RCP 2 .6 Transition Risk RCP 8 . 5 Tra ns i t i o n Ri s k in our ERM framework, which consists of comprehensive
RCP 2 .6 Physic al Risk RCP 8 . 5 P hys i c a l Ri s k risk management policies and processes, as well as risk
monitoring and control processes. Climate risks are
specifically tabled at the ESG Committee meeting for
|
Scenario Analysis (Property Level) On the other hand, landslides and sea level rises have in-depth discussion, including strategies and plans to
PT LIPPO KARARWACI TBK
occurred less frequently, but the associated repair costs mitigate these risks. Regular risk training and workshops
In addition, we analyzed the impact of physical risk on a
for damages caused by landslides and sea level rise are are also conducted for both Senior Management and Risk
total of 113 managed properties (including hotels, offices,
substantial. Considering these findings, it is imperative Managers, with a focus on climate risk and opportunities.
townships, malls, and hospitals) under a RCP 8.5 scenario.
that we proactively adapt to physical risks to mitigate costs This year, we are working on a software system to support
In our risk assessment process, we analyzed each physical
and minimize the impact on assets. We will continue to digitization and data collection in our risk management
risk on a location-specific basis, and these risk scores
study the frequency and impact of these physical risks workflows.
were then used to calculate an aggregated risk index.
closely going forward.
To further validate our projections at the property level, Management Response
we conducted a review on all physical risks that have
RI SK MA NAG E ME NT We have re-calibrated our management responses based
impacted our business in 2022 and 2023. The purpose of
on this year’s review of the effectiveness of our existing
this review was to understand the impact of physical risks We have a well-established process to identify, manage, and
climate mitigation and adaptation measures in addressing
on business disruption, categorize the severity of these monitor risks. Climate and operational risks are assessed
climate risks.
risks and determine any associated financial implications. at the business unit level, by type of asset/operation and
The accuracy of these calculations and results was verified geographical location. The Group Sustainability and
through cross-referencing with historical data. Our recent Group Risk Management Functions collaborate to liaise
records indicate that we have frequently experienced with the respective Risk Owners who are responsible for
31 the impact of extreme weather patterns and floods. identifying and monitoring risks within their businesses.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Mitigation & adaptation response
Risk
SHORT TERM LONG TERM
Flood • Early warning systems • Install structural protection measures such as dams, flood
• Update flood management SOPs barriers, etc
• Partnerships with government and local communities to prepare for • Risk informed land planning: consider adopting elevated
flooding scenarios and improve communication designs, resilient infrastructure, nature-based solutions, and
sustainable building practices to mitigate potential flooding
• More proactive water pumping (Storm Water Flooding Dewatering impacts
Pumps)
• More frequent checks to ensure canals and drains are unclogged
2023 SUSTAINABILITY REPORT
Landslide • Early warning systems • Identify landslide-prone risk areas, avoid building in these areas
• Locate high-risk properties in landslide-prone areas and prepare • Install monitoring equipment at landslide prone areas
evacuation plans
• Partnerships with government or local communities to prepare for
landslide scenarios
• Consult external experts to identify and evaluate landslide-prone
risk areas, and to reinforce these areas prior to any development
PHYSICAL
Extreme variability in weather • Early warning systems • Forecasting the potential impact of these events and
• Update storm management SOPs incorporating the anticipated financial costs associated with
patterns and precipitation
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extreme weather events into the planning and investment
PT LIPPO KARARWACI TBK
patterns • Regular building inspection and maintenance, especially facades phases of a project
Droughts • Implement comprehensive water-saving initiatives to address • Build infrastructure and water reserve projects that focus on
water conservation and reduce overall water consumption capturing and storing rainwater for later use
• Expand wastewater recycling and rainwater harvesting
operations
Extreme waves & coastal abrasion • Implement adaptable measures such as shoreline protection • In-depth evaluation and reconsider property development in
methods (e.g. construction of man-made structures, such as areas that are projected to be impacted by rising sea levels by
(rising sea levels)
jetties, breakwaters, groins, and seawalls) the year 2100
• Monitoring and evaluate the impact and cost of abrasion
Heat stress • Regular building inspection and maintenance, especially for • More prevalent technology-assisted heat stress monitoring and
cooling systems thermometers
• Establish and enforce comprehensive heat stress policies • Explore designs for green developments/townships which
and guidelines. These documents outline specific protocols encourage more tree cover, natural ventilation, covered
for working in high-temperature conditions (e.g. scheduled walkways, etc
breaks, hydration measures, adjustments to work schedules)
to prevent heat-related illnesses
32
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Mitigation & adaptation response
Risk
SHORT TERM LONG TERM
Disruption of new (low emission) • Review current equipment to identify which are energy- • Increase CAPEX allocation in favour of low-emission technologies
intensive and require replacement • Whitelist energy-efficient equipment for procurement teams to
technology
• Monitor technological advancements and switch to new low- encourage adoption
emission technology that can reduce energy consumption
and costs
TRANSITION
• Diversify the energy mix to reduce dependence on high-
emission equipment or a single low-emission technology
2023 SUSTAINABILITY REPORT
Greater expectations and • Engage frequently with customers and investors to gauge • Incorporate green building principles into planning and design
appetite for green and sustainable products standards
demand from customers and investors
• Conduct gap analysis of housing products and building assets • Conduct thorough lifecycle assessments of products and services
for more sustainable products and
based on green certification standards to identify and minimize environmental impacts
services
M IT IG AT ION = Tackling the causes and minimizing the possible impacts of climate change
M E TR I CS & TARG E TS A DA PTAT ION = Reducing negative effects and taking advantage of opportunities that arise
We have set measurable ESG targets under our
|
Sustainability Agenda to drive ambition and accountability Operational emissions Water consumption Water treatment Waste diversion
PT LIPPO KARARWACI TBK
in climate action, social impact, and good corporate
2030 2023 2030 2023 2030 2023 2030 2023
governance. Our Sustainability Agenda aligns our TARGET PERFORMANCE TARGET PERFORMANCE TARGET PERFORMANCE TARGET PERFORMANCE
corporate policies and business growth plans with our
35% reduction 28% reduction 20% of water 24% of water 30% increase 139% increase Double 3,200 tons of
sustainability objectives and strategy and ensures that we
in building in building consumption consumption in volume in volume amount of waste diverted
take a longer-term view on ESG as we transition towards emissions emissions from from of treated of treated waste diverted from landfill
intensity by intensity sustainable sustainable water from water from from landfill
a more sustainable future. All ESG targets, including 2035, with 15% sources sources sustainable sustainable
climate targets, are approved by the ESG Committee and reduction by sources sources
2030
subsequently tabled for approval by the BoD and BoC.
We have also reviewed our performance based on the
disclosures of industry leaders and ESG rating reports to Our climate-related performance is monitored based on For the full breakdown of our environmental performance,
identify areas of improvement. We disclose a wide range the following metrics: including a historical comparison, please refer to “Appendix
of environmental metrics to offer our stakeholders a more • Energy consumption, pages 52 to 54 – Environmental Data” on pages 90 to 92.
comprehensive insight into our approach to addressing • GHG emissions (Scope 1, 2 and 3), pages 55 to 56
climate-related risks and opportunities. We also monitor • Water consumption and treatment, pages 57 to 61
climate risk indicators such as increases in repair and • Wastewater discharge and diversion, page 61
33 maintenance costs, utilities costs and property insurance • Waste disposal and diversion, pages 62 to 64
premiums.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix E N H A N CING Q UA L ITY OF LIFE At Lippo Karawaci, we are in the business of creating urban ecosystems for quality living. We are committed to driving sustainable economic growth and job creation through our business operations, as well as uplifting the local businesses and communities whom we partner with. We constantly innovate to improve our offerings and strive to build trust through customer service and satisfaction. Economic Contribution Community Support and Engagement Product Innovation Customer Service and Satisfaction
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
ECONOMIC CONTRIBUTION
ECONOM I C PE RFO R M A N C E
Financial Highlights (Rp Billion) 2021 2022 2023
As Indonesia’s largest real estate and healthcare operator Revenue 16,529.82 14,808.57 16,990.09
by geographic footprint, we are privileged to be able
Net Profit/Loss (1,602.89) (2,692.08) 50.14
to serve over 180 million people in 26 provinces and 56
Operating Costs 2,768.52 2,842.78 3,026.90
cities. Through our business operations, we create direct
economic value and jobs for the Indonesian economy,
Employee wages and benefit liabilities 1,450.61 1,459.43 1,511.98
2023 SUSTAINABILITY REPORT
while generating indirect socioeconomic impact that Post-employment benefits 338.60 297.99 325.99
benefits various stakeholders within our ecosystem. Payments to providers of capital 2,603.21 1,981.38 1,929.59
Payments to government 960.06 633.89 849.90
Direct Economic Contribution Share buybacks + dividend payments 197.30 111.43 125.59
In 2023, our Company achieved strong financial growth Assets 52,080.94 49,870.90 49,570.82
across all business segments by generating a total of Liabilities 29,594.93 30,731.01 29,964.39
Rp 17 trillion in revenue, marking a significant 15% YoY Equity 22,486.01 19,139.89 19,606.43
|
PT LIPPO KARARWACI TBK
increase compared to 2022. In the Real Estate segment, we
witnessed a notable increase in marketing sales compared Direct economic value
Business Business Sub- Customers generated = revenue
to previous years. Similarly, our Healthcare segment
Segments Unit Categories Served Economic value distributed = net
showed sustained growth, reflected in higher EBITDA and profit/loss, operating costs, employee
wages and benefits, payments
net profit margins compared to the previous year. Despite REAL ESTATE Lippo Karawaci Residents in Lippo 60,000
to providers of capital, payments
Village Township
a challenging recovery period, our Lifestyle segment to government by country, and
community investments
maintained some positive momentum, especially with Residents in Integrated 7,000
Developments Economic value retained = ‘direct
higher hotel occupancy rates and significant visitor footfall economic value generated’ less
Lippo Cikarang Residents in Lippo 70,000 ‘economic value distributed’
in our better-performing malls. For a detailed breakdown
Cikarang Township
of our financial performance, please refer to the following
Gowa Makassar Residents in Tanjung 30,000
sections of our 2023 Annual Report – “Financial Highlights”, Tourism Development Bunga Township
“Management Report”, “Management Discussion and
HEALTHCARE Siloam Hospitals Inpatients 302,000
Analysis”, and “Consolidated Financial Statements”.
Outpatients 3,900,000
L IFESTYL E Lippo Malls Visitors 180,790,000
Aryaduta Hotels Guests 787,000
35 Rounded to nearest ‘000
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Indirect Economic Contribution RESIDENTIAL SALES
105.0%
The impact generated by our economic activities extends
beyond just financials. We believe that it is our duty to 0.4% 0.2% 0.1%
100.0%
3.7% 0.9%
deliver positive socioeconomic impact to our customers, 3.0% 2.8% 4.0%
5.1%
as well as our business partners and the local communities 95.0% 96.6% 97.0%
10.0% 96.0%
in the regions where we operate. 94.0%
90.0%
AFFORDABILITY AND ACCESSIBILITY 85.0% 86.3%
Housing and healthcare are two of the most fundamental
80.0%
2023 SUSTAINABILITY REPORT
human needs, but there remains a great unmet need for
affordable housing and quality healthcare throughout 75.0%
Indonesia. This is why we prioritize affordability and 2019 2020 2021 2022 2023
accessibility in our real estate and healthcare offerings. Unit Price < Rp 2 billion Rp 2 billion - 5 billion > Rp 5 billion
Since 2020, we have made the strategic decision to focus In our healthcare segment, we are dedicated to delivering We also serve the Indonesian public through Badan
on developing housing products which cater to the needs healthcare services in regions across Indonesia and Penyelenggara Jaminan Sosial (BPJS) Kesehatan, the
of first-home owners, especially millennials. This includes focusing on areas where quality healthcare may face Indonesian government’s health insurance scheme.
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PT LIPPO KARARWACI TBK
pricing our housing products affordably, at a price point of accessibility challenges. Our commitment extends to Siloam has been expanding its network of BPJS-licensed
under Rp 2 billion. In 2023, homes sold at this price point establishing a healthcare network that covers over 60% hospitals to make its services available to more patients
made up 96% of all residential sales (in units), of which of the country’s provinces. Affordability and accessibility who are unable to fully pay out of pocket or are not
around half were priced below Rp 1 billion. In total, we have remain a priority, with more than 40% of our hospital covered by private insurance. Out of our 41 hospitals, 29
sold over 12,000 homes priced under Rp 2 billion in the portfolio situated outside of Java. To date, Siloam’s portfolio treat BPJS patients, with around 2 million BPJS patients
last 4 years, primarily driven by the high demand for our includes hospitals and clinics in 23 out of 38 (61%) provinces treated in 2023. Siloam also operates 30 community
Cendana Homes series. Going forward, we are committed in Indonesia, with 19 out of 41 hospitals (46%) located clinics nationwide, all of which are either licensed to
to maintaining our track record of at least 90% of home outside of Java. cater to BPJS patients or offer healthcare services free of
sales priced under Rp 2 billion every year. charge. For additional information on Siloam’s community
healthcare initiatives, please refer to “Community Support
& Engagement” on page 40.
Rp
Rp
29/41 23/72 ~2 million Rp
2 trillion Rp
BPJS BPJS BPJS patients BPJS revenue
hospitals clinics Served (18% of total revenue)
36
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Siloam has established “Centers of Excellence” (CoEs) which cater to specific health issues EXPANDING HEALTHCARE
and medical conditions prevalent in certain regions in Indonesia, such as those relating to ACCESS TO PAPUA
cardiology, urology, and fertility. At present, we have 5 CoEs which provide top-class medical
treatment supported by high-end facilities and equipment in the following healthcare Siloam has played an active role in providing healthcare services to the rural and remote
specialties: Cardiology, Urology, Neurology, Nephrology, and Oncology. Siloam continues to areas of Eastern Indonesia, including in Papua. To date, Siloam operates 7 community
improve and expand its CoE services, with a focus on Kidney Transplants and IVF treatments clinics in remote mountainous villages in Papua with 2 general practitioners and 14 nurses
for each clinic, bringing quality healthcare services to extremely inaccessible locations. All
in 2023. In addition, the World Stroke Organization has awarded Siloam with 3 Stroke-ready
healthcare services at these Papua clinics are provided free-of-charge, and include basic
hospitals in 2023 (Siloam Hospitals TB Simatupang, Siloam Hospitals Sriwijaya, Siloam
medical services such as immunizations, blood pressure check-ups, first aid services,
Hospitals Kebon Jeruk), with more units to follow.
stunting assessments, screenings for tuberculosis and HIV, as well as home visits and local
2023 SUSTAINABILITY REPORT
community health education programs. In 2023, we served over 13,000 patients at our
community clinics in Papua.
WORLD - CL ASS KIDNEY TRANSPL ANTATION
In January 2023, Siloam Hospitals ASRI in South Jakarta launched the Kidney Transplantation
Excellence Service, catering to the growing need for kidney disease therapy in Indonesia.
With a skilled multidisciplinary team, innovative kidney transplantation technology, and an
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Daboto Mamit Korupun
PT LIPPO KARARWACI TBK
integrated clinical management system, Siloam Hospitals ASRI offers a local solution to a 2023 1,056 2023 1,773 2023 1,777
pressing healthcare need in Indonesia. Siloam Hospitals ASRI is the first private hospital in
Indonesia to receive the Certificate of Recommendation for Kidney Transplant Procedure
from the government. Since 2017, the hospital has successfully performed over 300 kidney
transplant surgeries, with 104 conducted in 2023 alone.
319 97.3% 99.1% Nalca
Kidney 1-Year 1-Year Graft 2023 2,402
transplants survival rate survival rate
Saman Danowage Tumdungbon
2023 1,412 2023 1,713 2023 1,147
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
INDIRECT JOB CREATION
Our economic contribution also extends to the jobs created through our larger ecosystem
of business partners, including contractors, suppliers, vendors, and tenants. In the course
of our business operations, we strive to contribute to the local economy by working with
people and partners based in our areas of operation as far as possible.
15,587 3,879
Contractors/ Specialist
Outsourced Doctors and
Workers Dentists
2023 SUSTAINABILITY REPORT
4,970 2,604
Permanent Casual Leasing
Mall Tenants Mall Tenants
For example, under our Real Estate segment, we have been working with vendors and
outsourcing companies to actively hire from within our townships to support our Town
Management Division (TMD) operations. In addition, within our Lippo Cikarang and Tanjung
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PT LIPPO KARARWACI TBK
Bunga townships, all the tenants in our commercial areas are local Micro, Small, and Medium
Enterprises (MSMEs). For our Healthcare segment, Siloam works closely with specialist
doctors and dentists throughout the country to provide quality healthcare services at our
hospitals. These doctors and dentists are not directly employed by us, but practice at our
hospitals on a full-time or part-time basis, supported by our medical facilities, equipment
and nursing staff. In 2023, we partnered with 3,879 specialist doctors and dentists.
Through our Lifestyle segment, we support thousands of tenants who, in turn, employ
manifold more people in their operations. In addition to engaging casual leasing tenants,
many of whom are MSMEs, we actively support local businesses by providing them with
retail spaces and curated events where they can sell their goods and services. In 2023,
Lippo Malls was awarded an achievement by the Indonesian World Records Museum for
the “Shopping Center with the Most Participants in Consecutive MSME Exhibitions.” This
recognition comes in light of our continuous efforts to organize events for MSMEs across 35
malls managed by Lippo Malls, involving a participation of over 3,200 MSMEs.
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LOCAL PROCUREMENT
We recognize our significant role in influencing the sustainability landscape in Indonesia.
This stems from our close collaborations with a diverse range of suppliers, vendors,
contractors, and service providers daily. The supply chain for the real estate, healthcare,
and lifestyle industries encompasses the processes and activities involved in sourcing,
producing, and delivering goods and services within these sectors. We are committed to
ethical sourcing, applying responsible procurement practices and supporting local suppliers
in all aspects of our operations. Through local sourcing, we can make a direct contribution
to the national economy and job market. It also enables us to reduce the generation of
Scope 3 emissions in the transportation of supplies. Across the Group, 99.7% of all suppliers
2023 SUSTAINABILITY REPORT
are Indonesian suppliers, with over 95% of our procurement expenditure directed towards
Indonesian suppliers. In addition, we actively work with local MSMEs within our operational
areas to fulfill our business needs. We are committed to supporting MSMEs where possible,
including by sourcing fresh produce such as vegetables and fruits, procuring construction
materials, clothing and office products, as well as engaging local service providers for
security, landscaping, and IT services.
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PT LIPPO KARARWACI TBK
FROM FARM TO TABLE
A RYA DUTA’ S E MPOWE R ME NT OF LOCAL COMMUNI TI E S
Aryaduta Hotels is dedicated to showcasing Indonesia’s rich heritage through its latest
campaign, “Asta Karya,” exemplifying its commitment to supporting local businesses
and uplifting the community. With a focus on sustainable practices, Aryaduta emphasizes
local procurement of food and daily supplies, while reinforcing connections with nearby
communities and participating in the reforesting program by the Ministry of Environment
and Forestry in Palembang. The hotel is actively involved in promoting Micro, Small, and
Medium Enterprises (MSMEs) by providing a marketplace for their products and incorporating
MSME offerings, such as snacks and regional delicacies, in its restaurant menus. Additionally,
Aryaduta collaborates with disabled communities, hosting inclusive art exhibitions as part
of its broader initiative under the “Lippo untuk Indonesia PASTI” framework. The campaign,
spanning across ten Aryaduta properties and recreational centers, offers guests a unique
staycation experience themed around Indonesian arts and culture, featuring exhibitions, art
installations, cultural performances, and interactive family activities. Through these initiatives,
Aryaduta Hotels not only champions local businesses but also creates a meaningful and
inclusive cultural experience for its guests.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
COMMUNITY SUPPORT & ENGAGEMENT
We strive to create a culture of volunteering, aiming to create a positive and significant social impact in the regions
where we are active. For us, community support goes beyond mere philanthropy; it serves to cultivate and strengthen
relationships with our stakeholders. This year, we have actively promoted employee volunteering in support of meaningful
causes and encourage the exploration of innovative ways to engage with our communities across various touchpoints.
All of our initiatives under PASTI support Indonesia’s sustainability agenda and the UN SDGs, as well as the needs of the
local communities we serve. In 2023, we conducted 1,284 community engagement programs and activities across our
2023 SUSTAINABILITY REPORT
business operations under PASTI, scholarships for healthcare and hospitality students, and Papua healthcare program. In
total, we spent around Rp 25.1 billion to fund these activities.
Lippo untuk Indonesia PASTI (Pintar, Asri, Sejahtera, Tangguh, Independen)
embodies the firm and bold spirit that drives our holistic advancement of
Indonesia’s sustainability agenda. We are committed to enhancing our quality of life
for all stakeholders in our ecosystem, to secure a brighter outlook for future
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PT LIPPO KARARWACI TBK
generations.
Education Environment Social Health Economic
PINTAR ASRI SEJAHTERA TANGGUH INDEPENDEN
Scholarships Nature Conservation Philanthropy Community MSME
Health Services Empowerment
Vocational Training & Waste and Water Community Welfare
Skills Development Management & Engagement Health Awareness Local Economic
Development
Educational Environmental Humanitarian Aid Vaccination
Support Awareness & Blood Drives Entrepreneurship
Provide access to Reduce ecological Support philantrophic Improve community Empower MSMEs
quality education footprint and raise causes and community health and well-being and local economies
environmental awareness events
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Education Environment
PINTAR ASRI
SUPPORT FOR LOCAL SCHOOLS ENVIRONMENTAL AWARENESS AND CAMPAIGNS
64 434 302 19,907 310 >3,300
Events Hours Volunteers Beneficiaries Environmental campaigns participants
Social media awareness campaigns on topics around zero waste,
VOCATIONAL TRAINING AND SKILLS DEVELOPMENT Earth Hour, World Environment Day, World No Tobacco Day,
World Ocean Day and World Water Day
25 3,177 15
2023 SUSTAINABILITY REPORT
Events Training Aryaduta/UPH
CLEAN UP ACTIVITIES
participants scholarship recipients
OTHERS (COMMUNITY ACTIVITIES & WORKSHOPS) >3,800 >100 >100
Beach Clean Ups Akkarena Beach Clean Up Jakarta & Tangerang River
by Aryaduta participants by GMTD participants Clean Up participants
87 13,673
Events Participants
SILOAM SCHOLARSHIP & TRAINING CENTRE
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PT LIPPO KARARWACI TBK
Nursing Scholarship Training Centre
315 89% >3,600 112 8,263
Nurses Graduation Total scholarships Training Training
graduated rate disbursed (since 2007) programs participants
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Social Health
SEJAHTERA TANGGUH
COMMUNITY WELFARE AND ENGAGEMENT VACCINATION & BLOOD DRIVES
Rp
2.2B 234 >47,000 120 17,341
donated for religious events, Events total beneficiaries Events Participants
disaster relief, and social
assistance
COMMUNITY HEALTH SERVICES
42 13,720 6,900
2023 SUSTAINABILITY REPORT
Events total beneficiaries free breast cancer screenings
HEALTHCARE AWARENESS
93 >9,800
healthcare participants in
awareness the events
campaigns
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PT LIPPO KARARWACI TBK
Economic
INDEPENDEN
EMPOWERING MSMEs
1,725 >130 >12,000
MSMEs supported MSME flagship events event participants and
beneficiaries
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BREAST CANCER AWARENESS AND EMPOWERING
FREE SCREENING CAMPAIGN LOCAL ENTREPRENEURS
Siloam is committed to improving public health awareness. Their major initiative, the Lippo Cikarang is spearheading impactful initiatives to bolster the local economy through
“SELANGKAH” campaign, focuses on breast cancer screening, showcasing Siloam’s role as collaborations with the community, particularly focusing on supporting Micro, Small, and
a leading healthcare provider and supporting the global fight against cancer. Launched Medium Enterprises (MSMEs). Notably, significant commodity spending, such as steel and
from March to December 2023, the SELANGKAH campaign aims to provide breast cancer aluminum, is directed towards local MSMEs suppliers, demonstrating a commitment to
screenings for over 25,000 women across Indonesia, particularly in remote areas, utilizing strengthening the local business ecosystem. Furthermore, in celebration of Indonesia’s
mammography machines in 14 hospitals. Siloam invites everyone, including communities Independence Day, Lippo Cikarang engaged with the community through a collaborative
2023 SUSTAINABILITY REPORT
and companies, to join forces in supporting early detection of breast cancer, recognizing its event involving 50 MSMEs, fostering a spirit of unity and economic empowerment. Similarly,
significant impact on lives in Indonesia. By actively participating in this campaign, Siloam during weekly Car Free Day events, Lippo Cikarang collaborated with the community by
not only serves as a healthcare provider but also as a transformative agent in Indonesia’s involving another 50 MSMEs, providing a platform for these local businesses to showcase their
healthcare services. We believe in Siloam’s strategic role in supporting early detection and products and contribute to the vibrant economic landscape of the region. These initiatives
sustainable cancer treatment services. We also emphasize that the success of this effort underscore Lippo Cikarang’s dedication to uplifting local MSMEs, ensuring their active
requires active collaboration and participation from the entire community in the SELANGKAH participation and economic sustainability within the community.
campaign’s success.
6,900 14 45,000 1,300 100
Total Participants MSMEs
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Free breast cancer Hospitals participated People participated in
PT LIPPO KARARWACI TBK
and Beneficiaries continuously
screenings in 2023 in the program SELANGKAH Health Talks
supported
and education sessions
LOCAL COMMUNITY SUPPORTING MSMEs THROUGH
WELL-BEING BANGKIT BERSAMA FESTIVAL
Lippo Karawaci, in collaboration with the government and key community figures, organized a We are committed to providing our spaces and platforms to promote local businesses and
special initiative called “Beras Premium Harga Terjangkau” to provide affordable premium rice their products. As part of its flagship program “Bangkit Bersama Festival”, Lippo Malls curated
packages to more than 3,000 households in Tangerang Regency. The packages, comprising 27 events showcasing local products made by over 1,200 MSMEs, such as batik clothing, crafts,
of 5 kilograms of premium rice, 1 kilogram of all-purpose flour, and 1 kilogram of granulated and snacks. It emphasizes the “Independen” pillar, showcasing our dedication to supporting
sugar, were sold at a heavily subsidized price of Rp 49,000, providing essential supplies to independent businesses and fostering economic sustainability in Indonesia.
those in need. The initiative, aligning with the “Sejahtera” pillar of the PASTI framework, was
aimed at addressing the community’s basic needs by supporting the government’s efforts to
stabilize the prices of essential commodities and alleviate inflationary pressures.
1,253 27
3,200 residents 14 tons MSMEs supported in
Bangkit Bersama Festival
Flagship events under
Bangkit Bersama Festival
Beneficiaries of basic food Rice and basic food
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packages distributed
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
PRODUCT INNOVATION
In today’s dynamic business environment, innovation is key to delivering quality products and services that can meet our customer’s evolving needs and enhance our market position in the
long run. Our product innovation strategy includes research and development to analyse and capitalize on the latest market trends, deepening our areas of specialty, as well as leveraging
digital channels and new partnerships to enhance our offerings. Our R&D efforts help us to identify emerging needs so that we are well-positioned to provide the most relevant offerings.
At the same time, we are also constantly innovating to improve customer service and satisfaction – these initiatives are separately outlined on pages 47 to 50.
CA PTU R I NG N EW D E M AN D
2023 SUSTAINABILITY REPORT
While our real estate development business has seen
PARK SERPONG XYZ LIVIN
significant success with the Cendana Homes series,
Park Serpong is a new 405-hectare township located at With over 5,000 units sold in 2023, XYZ Livin is re-defining
we have introduced several new housing products at the center of Serpong, with 5 different district concepts modern living with its innovative approach to design and
diversified price points to cater to the different needs that capture the aspirations of community-oriented and functionality. Beyond the modern and stylish facade, XYZ
and lifestyles of the next generation of young urban sustainability-minded Indonesian homebuyers. Through the Livin stands out for its attractive price point within the range
dwellers. These products have been developed based launch of Park Serpong, we have reinforced our commitment of Rp 300-600 million. This aligns with our product strategy
to providing quality and affordable landed housing in a of serving the growing demand and needs of young families
on extensive market studies and ethnographic research
sustainable living environment. and professionals in the Greater Jakarta area.
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to better understand the various profiles of Indonesian
PT LIPPO KARARWACI TBK
millennials, including their living preferences and
broader life aspirations. Our overall approach to
project development has evolved in recent years, as we
move away from designing individual home units to
creating vibrant living environments centered around
community building.
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Under our Healthcare and Lifestyle segments, we
continue to innovate by developing new facilities
and experiences to cater to different market NEW CENTERS
segments. In 2023, Siloam launched several new • AXON Pain Intervention Center in Siloam Hospitals TB Simatupang
centers with specialized clinical offerings, as well • Pediatric Integrated Care Center in Siloam Hospitals Palembang
as rolled out new services and tests to cater to a • Fertility Clinic in Siloam Hospital Bangka Belitung
wider spectrum of patients. Lippo Malls executed
NEW SERVICES & TESTS
major asset enhancements to revitalize its
facilities and tenant mix in several malls, to keep • 1 Coronary Artery Bypass Graft (CABG) operation in Siloam Hospitals Bogor
st
• Immunohistochemistry (IHC) testing with Mayo Clinic
pace with the evolving consumer and lifestyle
2023 SUSTAINABILITY REPORT
• New clinical pathology testing parameters with Roche
preferences of the Indonesian shopper. Aryaduta
• New molecular testing parameters with GeneXpert, BioFire
has also expanded its service offerings to meet and QIAstat
the growing demand for Meetings, Incentives, • Therapeutic Diet Program for Pre & Post In Vitro Fertilization (IVF) and Kidney
Conferences, and Exhibitions (MICE). Transplant
G R OWI NG T H R O U G H PA R N E RS H IP S
We work with credible partners to expand our
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PT LIPPO KARARWACI TBK
healthcare service offerings and leverage the
expertise of others. We believe in developing GAJAH MADA PLAZA
mutually beneficial partnerships that not only Originally constructed in 1982, Gajah Mada Plaza has undergone
enhance the quality of our products and services, a comprehensive building rejuvenation process, including the redesign of
interiors, usage of more resource efficient equipment, and enhanced tenant
but also broaden our customer reach.
management. In addition to revitalizing the physical structure, Gajah Mada
Plaza has introduced several supporting facilities, including: Pet playground
on the 6th floor, outdoor swimming pool known as The 5ky SwimPool, and
preparation of connections to Sawah Besar Station, MRT Jakarta
PLUIT VILLAGE
Pluit Village has launched the “Hawkers Street” dining area, which provides
street food choices from more than 34 tenants which have gone viral for
their taste. Pluit Village also collaborates with the Jangkrik Culinary Team as
a community of food bloggers and food influencers. Hawker Street provides
a choice of food with varying prices where the food displayed is food from
viral and legendary traders from several regions in Indonesia.
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MAYO CLINIC In addition, Siloam is well-positioned to extend its research
ASAN MEDICAL CENTRE L ABORATORIES services to Clinical Research Organizations (CROs) and
Sponsors. Our hospitals possess essential elements
Siloam and Asan Medical Center (AMC) in South Korea Siloam collaborates with Mayo Clinic Laboratories for conducting clinical research. What sets us apart is
signed a Memorandum of Understanding (MoU) in as a reference laboratory to improve the quality our dedicated and visionary team in clinical research
2023 to expand clinical capabilities in Indonesia and of laboratory testing and medical results. Siloam management, aiming to deliver research that competes
enhance collaboration in patient care, referrals, as currently administers various immunohistochemical with global standards. Clinical Research Siloam (CRS)
well as the exchange of medical staff and researchers. tests and molecular tests, including Next Generation serves as an integrated research site service provider
This collaboration strengthens Siloam’s commitment Sequencing, to increase the accuracy and speed
2023 SUSTAINABILITY REPORT
within Siloam, covering feasibility fulfillment, efficient
to providing internationally recognized medical care of response in medical diagnosis. Collaboration legal-to-budgeting review, a swift start-up process, and
in Indonesia. As the largest medical center in Korea, with Mayo Clinic Laboratories offers further access Institutional Review Board (IRB) procedures. CRS is
AMC offers global expertise that enables Siloam to to esoteric testing, thereby improving Siloam’s committed to supporting research activities within Siloam
enhance clinical programs and medical outcomes in clinical capabilities. and fostering collaborations between Siloam and partners.
Indonesia, involving doctors and medical experts in Our goal is to assist sponsors and institutions in achieving
clinical research and training. world-class clinical trial results.
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CUSTOMER SERVICE & SATISFACTION
We are committed to consistently delivering high-quality products and services to our customers. This year, our focus has been on improving our digital platforms and engagement
channels to ensure that our customers receive timely, targeted and useful information. We strive to cultivate a culture of customer-centricity and will continue to raise the bar to provide
the best possible experience for our customers.
CU STOM E R S AT IS FACT IO N & E N G AG E ME NT TMD engages with our residents daily, placing a primary
focus on customer satisfaction as a cornerstone of our LIPPO CUSTOMER PORTAL
2023 SUSTAINABILITY REPORT
We take customer feedback very seriously and are
commitment to service excellence. One key metric
continuously improving our customer experience. Digital
used to gauge customer satisfaction is the Customer TMD has introduced the Lippo Customer Portal,
improvements have been made such as instant receipt
of email notifications once a complaint is resolved, access Satisfaction Score (CSAT). In 2023, we achieved a CSAT offering customers a digitized and seamless
to options for marking their complaints as complete, and Score of 4.5 on a 5-point scale, validating our dedication experience for onboarding, self-service and
complaint escalation channels. to delivering services that meet the expectations of redeeming vouchers, especially for new residents.
property residents. Throughout the year, we documented Our customer portal has also partnered with the
a total of 51,000 tickets from our customers. Our team Lippo Malls Styles App to establish a self-service
Real Estate
portal. This creates more opportunities for residents
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successfully addressed over 99% of residents’ queries,
PT LIPPO KARARWACI TBK
We continually strive to enhance the customer experience with only 133 requiring a return request. This translates to to enjoy enhanced benefits, particularly concerning
and happiness each year. This involves redesigning a mere 0.25% of the total tickets indicating dissatisfaction Lippo Malls’ products. Among these advantages is
buildings and spaces, implementing digitization, related to our initial corrective action. This underscores our the opportunity to upgrade their membership level
innovating new applications and products, all to ensure commitment to providing satisfactory solutions for every to the highest tier, known as “Silk.” Upon attaining
that customers can easily enjoy a seamless and delightful customer inquiry. Moving forward, we remain committed the Silk level, residents can access various exclusive
experience. Gathering feedback from our customers is to maintaining and enhancing our CSAT Score, ensuring benefits, including special offers at all Lippo Malls,
a top priority for enhancing our services and ensuring that each customer feels prioritized and content with and points accumulation. This platform also
customer satisfaction. Satisfaction surveys are consistently their experience at our property. Our goal is to achieve a empowers residents to conduct activities, including
conducted for visitors and tenants throughout the year, customer satisfaction rating of 4.5 out of 5. utility (IPKL) payment transactions, and submit
utilizing various channels such as QR codes at launch on-demand requests like water connections. In
events, surveys for new homeowners, and obtaining direct We have attained several industry-best awards as the initial 5 months post-launch, the Customer
in-person feedback. evidence of our dedication to customers, demonstrating Portal facilitated 1,846 transactions by residents in
our commitment to delivering the finest services and the Lippo Village Karawaci area. The total value of
products possible. transactions carried out through Lippo Customer
Portal amounted to approximately Rp 1.7 billion.
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Heal thcare
EXPAN SION OF FAC IL ITIE S & NEW ONLINE BOOKING S ERVICE FOR
Siloam is constantly making improvements to the patient ME DICAL EQU IPME N T L ABORATORY AND RADIOLOG Y TESTS
experience and enhancing patient satisfaction through its
various digital services such as: Siloam is in the process of expanding its capacity Siloam has launched an online booking service for
• Multichannel appointment booking (MySiloam App, in several hospitals, to add inpatient beds and laboratory and radiology tests, allowing patients to
Website, Contact Center, WhatsApp & LiveChat provide more comprehensive services. Siloam will be easily schedule examinations anytime, anywhere
(ChatBot) expanding its existing hospitals in Bekasi and Makassar, through the MySiloam application or www.
• Single queue management enabling self check-in via as well as develop two new hospitals in Surabaya. In siloamhospitals.com website. This aims to meet the
MySiloam App addition, Siloam is invested in bringing the latest needs of a technologically savvy society, providing
2023 SUSTAINABILITY REPORT
• EMR (e-Medical Record) providing integrated records medical devices and technology to Indonesia. MRCCC easier and faster access to healthcare services.
in all hospitals has unveiled a state-of-the-art PET/CT scanner and With online bookings, patients can directly visit the
• 24/7 access for patient medical histories through Flow-Cytometry equipment, enhancing diagnostic hospital and utilize express queues, significantly
Patient Portal capabilities and treatment precision. To improve its reducing waiting times. This new service offers
• Doctor teleconsultation and online booking oncology services in the Banten province, Siloam more than 500 parameters for laboratory and
Hospitals Lippo Village is also in the process of adding radiology tests, ranging from routine tests to in-
In 2023, Siloam achieved a Net Promoter Score (NPS) of 67, a Linear Accelerator (LINAC) which produces high- depth examinations in pathology and oncology, as
indicating the effectiveness of its patient-centric initiatives. energy X-rays for radiotherapy. well as radiology services such as x-rays, CT scans,
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Siloam also managed to maintain a ticket resolution
PT LIPPO KARARWACI TBK
and MRI. Integrated into the Siloam digital medical
rate of 97% throughout the year. Siloam has achieved record system, test results can be accessed through
several industry-best awards, serving as a testament to the MySiloam application, making the healthcare
our commitment to customers and showcasing our best experience easier and more comfortable for patients.
practices for customer experience.
OUR AWARDS & RECOGNITIONS
• "Top 10 Developers of 2023" from BCI Asia Awards (Lippo Karawaci) • "Customer Satisfaction Champion in Healthcare Services 2023" from SWA Media (Siloam)
• "Top 50 Mid Capitalization Public Listed Company 2023" from Indonesian Institute for Corporate • "Top Brand Award 2023 - Private Hospital Network" from Top Brand (Siloam)
Directorship (Lippo Karawaci) • "Recognition of Excellence Award" for MySiloam App from OpenGov Asia (Siloam)
• "Nusantara CSR Awards" from The La Tofi School of CSR (Lippo Cikarang) • "Public Company: Entrepreneurial Marketing Awards - Healthcare Provider" from MarkPlus Inc
• "Best Emerging Partner Award" at Enterprise Connexion 2023 from Link Net (Lippo Cikarang) (Siloam)
• "5th Top Digital Corporate Brand Award 2023 - Special Achievement for Property Industry" from • "EDGE Green Building Certification" from Green Building Council Indonesia (Lippo Mall Puri & Sun
InfoEkonomi.ID and TRAS N CO Indonesia (GMTD) Plaza Medan)
• "Best Specialized Hospitals APAC 2023" from Newsweek (MRCCC Siloam Semanggi) • "Most Continuous MSMEs Exhibition Participants for Shopping Center Group" from Indonesia
• "Indonesia Customer Experience Champion 2023" from SWA Media (Siloam) World Record Museum (Lippo Mall Indonesia)
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Lifestyle 1. Styles App 3. Channel Marketing
STYLES is a loyalty program introduced by Lippo Malls. Providing tailored information to customers is crucial
Similarly, our Lifestyle businesses have also enhanced their
The current version enables customers to view all their for enhancing customer loyalty and engagement,
feedback systems so that customers can provide feedback
rewards and promotions. They can also see personalized especially in our Lifestyle pillar. We have also enhanced
at more touchpoints. Mall visitors can provide feedback
rewards and marketing features about the latest news our channel marketing (WhatsApp and email) by
instantaneously by scanning QR codes located at key mall
and programs available to them. The latest version of implementing more detailed segmentation, ensuring
facilities including toilets, nursing rooms, prayer rooms,
the STYLES app provides seamless user interaction, that each individual receives targeted information that
elevators, and customer service desks. This allows our
where updates to back-end operations enable our is relevant to them. For instance, monthly programs are
operations teams to gather feedback on specific mall
customers to scan QR codes and immediately receive customized for each mall and tailored to the specific
facilities or aspects of the visitor experience. Meanwhile,
a reward. Lippo Malls is committed to enhancing the preferences of each customer.
2023 SUSTAINABILITY REPORT
Aryaduta regularly conducts guest satisfaction surveys,
user experience and access to benefits on the STYLES
including NPS and Customer Satisfaction Index, to gather
app. Furthermore, in 2024, our intention is to visually 4. Customer Experience Center (CXC)
feedback and continuously improve our facilities and
enhance the user interface by incorporating more In 2023, we established a Customer Experience Center
services. Across our hotel portfolio, we received feedback
appealing colors and tones. (CXC) at Park Serpong, to facilitate product knowledge
from over 15,000 responses throughout the year.
sharing for our new township and product lines.
2. Chatbot Assistance This approach proved successful, with 1,500 sales
PR OD U CT M A R K E T IN G
Our Township Management Division (TMD) launched generated through visits to the CXC. The grand launch
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Product marketing serves as the catalyst that amplifies a chat bot learning hub through WhatsApp, designed of Park Serpong attracted 16,000 customers, leading
PT LIPPO KARARWACI TBK
the impact of product innovation, ensuring that to adapt to customers’ schedules and needs on a 24/7 to a significant number of individuals becoming new
groundbreaking ideas not only come to fruition but also basis. Over the first 4 months of its implementation, homeowners in a single day.
resonate effectively with the target audience. the WhatsApp account facilitated 3,302 conversations,
indicating its utility and dependability. CUSTOMER & PR ODUCT H EALTH & S AF ETY
We are committed to providing our customers with
accurate information regarding product quality and safety,
as these build customer trust and loyalty. Each business
unit is responsible for monitoring product quality and
safety against a set of performance indicators to ensure
compliance with the specified standards. In 2023, we
did not receive any sanctions for non-compliance with
customer health and safety regulations, product and service
information, labelling, or marketing communications. No
products were recalled.
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TMD Initiatives
1. Customer Focus Unit: All properties are inspected for health and safety
requirements before handover. Additionally, we have implemented systems to log
defects and monitor the progress of rectifications.
2. Customer Care Unit: A new division was established to streamline standards
and SOPs across all customer relations divisions, with the primary objective of
improving all aspects of the customer experience.
3. Onboarding Program: A new program was launched to give residents of newly
acquired housing units a walkthrough of all essential knowledge and technical
2023 SUSTAINABILITY REPORT
aspects of living in our townships, to ensure a smooth transition for these residents.
As part of onboarding program, TMD distributes tenant vouchers so that residents
are aware of the facilities that can be enjoyed in the township. In 2023, we have
distributed more than 1,000 facility onboarding vouchers for our new residents.
4. Living Environment and Health and Safety: TMD undertook various initiatives
to improve the living environment and health and safety for residents, covering
various aspects such as:
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PT LIPPO KARARWACI TBK
o Security: Increasing frequency of patrol and external security monitoring,
reviewing traffic safety needs, speed tables, traffic signs and crosswalks.
o Maintenance: Increasing frequency of sanitization and pest control including
mosquito fogging and snake sweeping.
o Landscaping: Pruning trees and grass monthly throughout the Lippo Cikarang
area.
o Waste Management Services: Daily garbage removal for all residents.
o New Certifications: Certification from the Ministry of Manpower for First Aid
(P3K) and Class D Firefighting Certification from the Ministry of Manpower for
Lippo Village Fire Brigade personnel.
TMD’s environmental costs in 2023 amounted to Rp11.5 billion. Moving forward,
we aim to disclose on the environmental costs borne by other Business Units in
our Group.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix CA R I N G FOR OUR E NVI RON MENT Against the backdrop of climate change, we are committed to accelerating climate action by reducing our carbon and water footprint, improving our resource efficiency, and developing greener products and processes. To safeguard the natural environment, we conscientiously select locations for development and operations where there is no impact on areas of high biodiversity or conservation value. We do not currently have any developments or operations in regions recognized for their high ecological significance. Nevertheless, as part of our commitment to environmental stewardship and in compliance with regulatory requirements, all of our developments undergo the AMDAL process (Environmental Impact Assessment). Energy Efficiency and Emissions Water Stewardship Waste Management
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
ENERGY EFFICIENCY & EMISSIONS
The World Economic Forum’s Global Risks Report 2024
Initiatives Description
ranked the climate crisis, specifically extreme weather, as
the top material risk on a global scale in 2024.5 As such, we 1. Energy audits and efficiency • We conducted 13 energy audits in select malls, hotels and hospitals, to fine-tune our
are committed to doing our part to combat climate change projects energy optimization initiatives and the upcoming pipeline of retrofits.
by accelerating our decarbonization efforts through • We successfully executed 22 energy efficiency projects, ranging from LED light
Group-wide energy and emissions reduction initiatives. replacements, chiller optimization, smart cooling, energy-saving appliances, etc.
These specific projects are expected to achieve annual financial savings of at least
2023 SUSTAINABILITY REPORT
Our decarbonization plans are supported by regular
Rp 1.9 billion, energy savings of 875,893 kWh and emissions reduction of 762 tCO2.
energy audits, the systematic roll-out of energy-efficiency
initiatives and asset enhancements, and new opportunities 2. Digitization • Business units such as Siloam and Aryaduta have implemented automated
associated with green buildings and renewable energy. In dashboards that monitor daily energy and water consumption of their portfolio of
assets. This enables swift responses to anomalies in consumption patterns and allows
the first quarter of 2023, the Group Sustainability Function
us to formulate effective plans to reduce consumption, considering factors such as (a)
engaged the Senior Management and operations teams
asset size, (b) age of existing energy systems, (c) the type of HVAC system employed,
from key business units on their respective emissions and (d) various operational metrics.
reduction targets and specific decarbonization roadmaps,
|
3. Lowering direct emissions / • As of 2023, we have installed a total of 31 electric vehicle charging stations across our
tailored to the unique characteristics of their business
PT LIPPO KARARWACI TBK
Electrification assets. 20 additional EV charging stations were added in 2023.
operations and capital expenditure plans.
Lippo Malls and Hyundai Motors Indonesia signed an agreement to expand the
EV Charging Station network in up to 52 malls under Lippo Malls in various cities
across Indonesia.
We signed a Memorandum of Understanding (MoU) with PT Exelly Elektrik
Indonesia (Voltron) to provide Electric Vehicle Charging Station (SPKLU) services
at several properties developed/managed by the Company.
• Lippo Cikarang, in collaboration with Beam Mobility, launched 500 electric bicycles
in more than 60 parking spots around Lippo Cikarang township. This collaboration
reduces vehicular emissions and raises awareness of environmentally friendly modes
of transport.
• Lippo Cikarang regularly organizes Car Free Day (CFD) in its central business district to
reduce vehicular emissions and encourage healthy lifestyles.
• Over the years, we have cumulatively planted over 160,000 trees across Lippo Village,
Lippo Cikarang, and Tanjung Bunga, to enhance the natural beauty of our townships,
reduce the urban heat effect and improve air quality. These trees also help to combat
climate change as they act as a carbon sink to offset emissions.
52
5
https://www3.weforum.org/docs/WEF_The_Global_Risks_Report_2024.pdf
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
UNLOCKING SUBSTANTIAL SAVINGS LIGHTING THE WAY
LIPPO MALLS’ ENERGY AUDIT ARYADUTA HOTELS’ ENERGY EFFICIENCY INITIATIVES
Lippo Malls has recently completed an extensive energy audit across its properties. The As part of Lippo Karawaci Group’s commitment to sustainable development, Aryaduta
initiative unfolds in two phases – Phase 1 includes Lippo Mall Kemang, Plaza Medan Fair, Hotels has implemented several initiatives aimed at improving energy efficiency across
Sun Plaza, Palembang Icon, Palembang Square, and Palembang Square Extension. its properties. These efforts not only align with global sustainability goals but also
Phase 2 extends the initiative to additional properties, including Lippo Plaza Kramat Jati, showcase Aryaduta’s leadership in promoting environmental responsibility within the
Cibubur Junction, Mall Lippo Cikarang, Pluit Village, and Lippo Plaza Ekalokasari. hospitality industry.
Through targeted interventions and upgrades, Lippo Malls has not only bolstered its financial
2023 SUSTAINABILITY REPORT
performance but also underscored its commitment to environmental sustainability,
aligning with global efforts to combat climate change and reduce carbon emissions. As we
continue to prioritize sustainability in its operations, it sets a compelling example for the
40% energy 20% energy 15-20% energy Up to 25% energy
savings savings savings savings
retail industry, driving positive change and contributing to a greener, more resilient future.
From replacement From replacement From installation of From modernization
Rp
>Rp 8B ~Rp 50B of gas water heaters
with heat pumps at
of conventional
booster pumps with
additional inverter/
PSD for chill water
of elevators in
Aryaduta Bandung
Expected Annual Savings Investment Cost
Aryaduta Bandung inverter booster pumps in Aryaduta
from energy efficiency measures from energy efficiency measures
pumps at Aryaduta Manado
|
within Lippo Mall Kemang & within Lippo Mall Kemang &
PT LIPPO KARARWACI TBK
Palembang Square Palembang Square Palembang
ACCELERATING EV ADOPTION IN INDONESIA THE FUTURE OF BUILDINGS
LPKR-VOLTRON PARTNERSHIP EDGE GREEN BUILDING CERTIFICATION
Lippo Karawaci signed a Memorandum of Understanding (MoU) with PT Exelly Elektrik Lippo Mall Puri and Sun Plaza, owned by Lippo Malls Indonesia Retail Trust (LMIR Trust),
Indonesia (Voltron) to provide Electric Vehicle (EV) charging stations at LPKR-managed have achieved EDGE green building certification. Developed by the International Finance
properties. Under this collaboration, Voltron has installed EV charging stations at various Corporation (IFC), EDGE certification recognizes buildings that demonstrate at least a 20%
properties, including apartments and integrated developments. We are committed to resource efficiency improvement compared to conventional structures. The deployment
support Indonesia’s Electric Vehicle Acceleration Program and promote energy resilience of energy-efficient systems and the adoption of water-efficient faucets and rainwater
and clean energy usage. This partnership underscores our commitment to sustainability harvesting systems have achieved significant utility cost savings.
and environmental stewardship.
Lippo Mall Puri : Sun Plaza :
21% energy savings 24% energy savings
14 31% water savings 35% water savings
New EV charging stations Rp
Rp 9 Billion utility saving annually Rp
Rp 8.5 Billion utility saving annually
in partnership with Voltron
53
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
EN E R G Y CON S U M PT IO N ENERGY CONSUMPTION BY BUSINESS SEGMENTS ENERGY CONSUMPTION BY FUEL TYPE
(10 3 GJ) (10 3 GJ)
Electricity continues to serve as the primary energy source
1600 1600
for our operations, followed by the usage of diesel, petrol, 1,420 1,420
and LPG for daily activities. In 2023, we recorded a total 1400 990
1,317 1400 1,398 1,317
energy consumption of 1.3 million gigajoules (GJ). Notably, 1,251 707 1,251
1,253
1200 672 1200
our Lifestyle and Healthcare segments accounted for 54% 1,090 1,090 1,194
1,056 1,056
and 35% of the overall energy consumption, respectively. 575 1,073
1000 578 1000
1,039
This distribution is attributed to the expansive scale of their
operations and the inherently energy-intensive nature of 800 800
2023 SUSTAINABILITY REPORT
these businesses.
600 600
452
422
401
Comparing the figures to the preceding year, there was a 386
400 336 400
6% Increase in total energy consumption in 2023. This
upswing can be largely attributed to an increase in 200 200
mall visitors, number of patients treated at hospitals 113 157 158 18
16
13
95 92 7.3 8.4 9.2 18
1.4
16
19
0 0 14.9 8.9 7.5 1.6 19
and renovations. The increase in reported energy
2019 2020 2021 2022* 2023 2019 2020 2021 2022* 2023
consumption can also be attributed to the improved data
|
PT LIPPO KARARWACI TBK
transparency on energy consumption of fuel sources used Real Estate Healthcare Lifestyle Biodiesel CNG Diesel LPG
in stationary and mobile combustion. We recognize that N o te : R e s t a te m e n t s h ave b e e n i n d i c a te d w i t h *.
Natural Gas Petrol Electricity
as our business grows, there will be an anticipated rise Fo r fu r t h e r d e t a i l s , p l ea s e re fe r to t h e A p p e n d i x .
in energy consumption. Nevertheless, we are dedicated
to implementing energy-saving projects to enhance ENERGY INTENSITY BY 1.000
0.935
BUILDING TYPE (GJ/m 2 )
overall energy efficiency. Grid energy constitutes 95% of 0.900 0.850
our energy source. We have also increased the usage of 0.793
High-Rise Residential 0.800 0.755
0.724 0.730
renewable energy sources, supported by a 1,050% increase
0.700
Hospitals
in biodiesel consumption. Energy consumption from 0.712
0.600 0.547 0.545 0.573
0.511 0.538
third parties outside the organization, originating from Malls
0.500 0.534
tenanted commercial areas and high-rise residential units, 0.503 0.519
Hotels 0.487
amounts to 0.9 million GJ. 0.400
0.317 0.418 0.439
Average 0.294
0.300 0.224
0.196
0.200 0.174 0.167 0.160
0.100
54 0.000
2019 2020 2021 2022* 2023
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
G H G E M I SS I O N S 2023 GHG EMISSIONS
In 2023, we expanded our GHG inventory to include a
broader coverage of emissions based on materiality. Our Scope 1 Scope 2
DIRECT EMIS S IONS Mobile I N D I R ECT EM I SSI ON S
Scope 1 emissions stem from various sources, including Combustion
Direct GHG emissions Indirect GHG emissions
refrigerant leakage in air-conditioning systems, mobile that occurs from sources 1.2 ktCO2eq from purchased electricity
owned or controlled
combustion from operational vehicles, and stationary Stationary
Combustion
combustion primarily from on-site generators. To calculate
3% 2.7 ktCO2eq 45%
these direct emissions, we employ emission factors of total CO2e
of total CO2e
emission Fugitive Electricity emission
derived from DEFRA environmental reporting guidelines.6
Emissions Consumption
2023 SUSTAINABILITY REPORT
For Scope 2 emissions exclusively tied to purchased electricity, 14.6 ktCO2eq 274 ktCO2eq
we utilize market-based methods and emission factors from
the Ministry of Energy and Mineral Resources of Indonesia
(MEMR) for measurement.
We took a significant step in 2022 towards carbon inventory
management by reporting on Scope 3 emissions, which are
generated by our indirect operations and value chain. We
|
PT LIPPO KARARWACI TBK
started by disclosing substantial emission sources that are
currently tracked within our internal reporting systems, which Scope 3
INDIRECT EMIS S IONS
includes embodied carbon in main construction materials
All other indirect GHG
(steel, concrete, timber, glass) used in real estate development emissions from upstream
and downstream activites
projects, employee business travel (air flights), and tenant
electricity consumption. As such, our 2022 disclosures only
covered several aspects of Purchased Goods & Services 52%
(Cat 1), Business Travel (Cat 6) and Downstream Leased Assets of total CO2e
emission
(Cat 13) respectively.
Purchased goods
Scope 1 Scope 2 and services
19 3% 45%
274 49 ktCO2eq
ktCO2eq ktCO2eq
609
Use of sold Fuel & energy Waste generated Airplane business Downstream
products related in operation travel leased assets
68.8 ktCO2eq 64 ktCO2eq 23 ktCO2eq 0.8 ktCO2eq 110 ktCO2eq
Scope 3 ktCO2eq
55
316 52%
ktCO2eq 6
Department for Environment Food & Rural Affairs environmental reporting guidelines (greenhouse gas reporting conversion factors 2023).
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
SCOPE 1 & 2 EMISSIONS BY SCOPE 1 & 2 EMISSIONS SCOPE 3 EMISSIONS
This year, we extended our coverage to include
BUSINESS SEGMENT (ktCO 2 eq) BY SOURCE (ktCO 2 eq) (ktCO 2 eq)
construction-related spending for non-real estate
businesses and water consumption under Purchased 350 350 350
321 321 316
Goods & Services (Cat 1), T&D electricity losses under Fuel
225 293 316 293 110
300 300 300
& Energy Related Activity (Cat 3), waste generated in
274 161 274 274
operations (Cat 5) and managed assets owned by third 240 245 150
240 245 262
250 250 250
parties7 under Use of Sold Product (Cat 11). This extends 133 131 235 243
our Scope 3 disclosures to cover a total of six categories 200 200 200 69
166
(1, 3, 5, 6, 11, and 13). We plan to consistently enhance and
117
150 150 150
broaden our Scope 3 disclosures to more comprehensively 0.8
2023 SUSTAINABILITY REPORT
98 23
91
reflect the emissions across our value chain. We also 100 87 90
100 100 64
76
employ emission factors derived from Inventory of Carbon
0.6
and Energy (ICE database)8 and DEFRA environmental 50 50 50
49
14.7
49
33 33 8.4
reporting guidelines for our Scope 3 emissions. In 2023, 20 20 24 3.0
1.1
3.8
0.6 0.6
1.5
0.6 0.6 2.5 2.7
0 0 0.5 1.4 1.2 0
Siloam undertook a comprehensive assessment of its
2019 2020 2021 2022 * 2023 2019 2020 2021 2022 * 2023 2022 2023
full Scope 3 emissions, and we intend to extend this
Real Estate Healthcare Lifestyle Category 1 - Purchased Goods & Services
assessment to other business units in 2024. Mobile Fugitive
Combustion Category 3 - Fuel & Energy Related Activity
|
PT LIPPO KARARWACI TBK
Stationary Electricity Category 5 - Waste Generated in Operations
N o te : R e s t a te m e n t s h ave b e e n i n d i c a te d w i t h *.
We remain committed to enhancing both our emissions Fo r fu r t h e r d e t a i l s , p l ea s e re fe r to t h e A p p e n d i x . Combustion Category 6 - Airplane Business Travel
reporting and carbon reduction initiatives. In 2023, our Category 11 - Use of Sold Product
Category 13 - Downstream Leased Asset
total emissions across Scope 1, 2, and 3 amounted to
609 kilotons of CO2 equivalent (ktCO2e). Our total Scope SCOPE 1 & 2 EMISSIONS INTENSITY BY BUILDING TYPE (ktCO 2 eq)
1 and Scope 2 emissions amounted to 293 ktCO2e,
High-Rise Residential 0.25
with Scope 3 emissions constituting 52% of the overall
0.213
emissions. Notably, there has been a visible increase in Hospitals 0.20 0.184
0.170 0.171
emissions due to higher patient volume across hospitals, 0.164 0.164
Malls
higher mall visitor footfall in top emitting malls, including 0.15
0.160 0.128
0.127 0.124
0.114 0.122
a rebound in activity in malls that have completed major Hotels
0.115 0.118
0.10 0.115 0.110
asset enhancement initiatives, as well as more extensive 0.071
0.100
Average 0.066 0.087
Scope 1 disclosures for refrigerants and other fuels. While 0.05
0.049 0.043
0.038 0.037 0.036
there has been an absolute increase in emissions in 2023
compared to 2022, our building emissions intensity is 0
still 28% lower compared to our 2019 baseline. As such, 2019 2020 2021 2022* 2023
we remain on track to achieving our building emissions 7
Under Category 11, we have reported 13 managed assets owned by third parties (1 hospital, 6 malls, 6 office buildings). We intend to include more managed assets in the
56 future, as and when the data is ready to be disclosed.
intensity reduction targets of 15% by 2030 and 35% by 2035. 8
Inventory of Carbon and Energy is an embodied carbon database for building materials.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
WATER STEWARDSHIP
WATER CONSUMPTION BY BUSINESS SEGMENTS
(10 3 m 3 )
We acknowledge the crucial role of water stewardship in across all business segments and asset classes. In 2023, we 5000
4,595
preserving the health and well-being of all stakeholders consumed a total of 4.6 million m of water, an increase
3
4500
4,009 2,081
within our ecosystem. Our commitment lies in of 15% as compared to 2022. Water consumption from 4000 3,800
1,885
utilizing water in a manner that is socially equitable, third parties outside the organization, originating from
3500 2,409
3,009
environmentally sustainable, and economically beneficial. tenanted commercial areas and high-rise residential
3000 2,782 1,606
Employing a comprehensive approach, we address the units, amounts to 1.8 million m³. There was a significant
2500 1,461
2023 SUSTAINABILITY REPORT
sourcing, distribution, and consumption of water to ensure increase in reported water consumption in 2023 compared 1,360
2000 1,508
a consistent and reliable supply of high-quality water. to historical years due to the inclusion of San Diego Hills
1500
Our dedication lies in sustainable water management Memorial Park and general resumption of activities 1,074
1,051 1,023
practices, emphasizing the optimization of water usage coming out of the pandemic. Nevertheless, building 1000
1,153
and the utilization of renewable water sources. water consumption intensity has remained largely stable 500 616
340 329
at 1.61 m³/m2. 0
298
WATER CONS U M PT IO N 2019* 2020* 2021* 2022* 2023
Real Estate Healthcare Lifestyle
|
Since 2022, we have drawn a distinction between the
PT LIPPO KARARWACI TBK
water consumption by our business units9, and the water No te : Re s ta te m e nts have b e e n i n d i c a te d w i th *.
Fo r fu r th e r d e ta i l s , p l ea s e re fe r to th e A p p e n d i x .
withdrawal by our Water Treatment Division (WTD), which WATER CONSUMPTION INTENSITY
is a subset of our TMD services. This is due to the significant BY BUILDING TYPE (m 3 /m 2 )
difference in the nature of the business, whereby our WTD
3.00 2.84
withdraws water based on customer demand for treated 2.56
High-Rise Residential
water in our townships, and not only for the operational 2.50
2.23 2.25
2.02 2.10
needs of our businesses. For transparency, we have Hospitals 2.08 1.94
2.00
1.94
1.58 1.61
separately reported on water withdrawals by our WTD 1.89 1.51
Malls 1.50
1.29 1.27
under “Water Treatment” on pages 59 to 61. 1.44
1.00 1.31 1.32 1.29
Hotels 1.14 0.56
0.44
0.50
Our main source of water is purchased water from 0.56 0.34
Average 0.40
municipal sources. Water consumption and water 0.00
quality are monitored via standard operating procedures 2019* 2020* 2021* 2022* 2023
9
The water usage of our water treatment facilities are excluded from water
consumption data, as we separately report on their water usage under the
57 subsequent section on water withdrawal.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Sustainable Water Consumption water recycling within our premises. This includes utilizing WATER CONSUMPTION BY SOURCES
recycled wastewater for non-potable purposes such as (10 3 m 3 )
We have established a target for 20% of our total water
5000
cooling tower operation, gardening, and cleaning. We are 4,594
consumption to be sourced from sustainable water
also studying opportunities to further leverage recycled 4500
3,489
sources by the year 2030. Remarkably, in 2023, 24% of our 4,009
wastewater usage. 4000 3,800
3,457
water consumption originated from sustainable sources
3500 3,567
like wastewater recycling and rainwater harvesting. This 3,009
Optimizing Water Usage
reflects a significant absolute increase of 1.8 million m3 3000 2,782 2,621
in water consumption from sustainable sources in 2023 We are committed to implementing prudent water 2500 2,470
compared to 2019, when such sources constituted only management practices. We recognize the importance 2000
of reducing our water consumption and improving
2023 SUSTAINABILITY REPORT
6% of our water consumption. The data mainly arises from 1500
24%
incorporating San Diego Hills Memorial Park (SDH), which the efficiency of water usage, given that we operate in
1000
398
consumes an estimated 549,000 m³ of water, primarily Indonesia which experiences “high” to “extremely high” 13%
14%
11% 708
500 6%
458
drawn from rainwater (99%) and river water (1%). SDH water stress according to the World Resources Institute’s 301 366
14 219 11 22 94
0
features a sizable lake for rainwater harvesting and runoff Aqueduct Water Risk Atlas. Our township and property
2019* 2020* 2021* 2022* 2023
water retention across its property. The water is primarily managers are responsible for monitoring water usage
Recycled Purchased
Rainwater
utilized for landscaping, aligning with the nature of its and conserving water wherever possible. Our properties Wastewater Water
business. We are committed to ensuring the accuracy and undergo periodic maintenance of water systems and Total Sustainable Water Sources (%)
|
reliability of our data. regular physical checks, which allows us to identify and
PT LIPPO KARARWACI TBK
No te : Re s ta te m e nts have b e e n i n d i c a te d w i th *.
fix leakages early. These checks are performed in-house Fo r fu r th e r d e ta i l s , p l ea s e re fe r to th e A p p e n d i x .
Over the years, we have made substantial investments to by each business unit’s respective facilities managers and
enhance our capabilities in leveraging sustainable water resolved by our engineers in the first instance.
sources. We have implemented water retention systems
to collect rainwater and runoff water. Our hospitals have We are also constantly adopting new methods,
established backup and additional water sources, including equipment, and technology to improve our water
utilizing water from Reverse Osmosis (RO) systems, CSSD efficiency and achieve water savings, for example by
autoclaves, AHU, and FCU. Moreover, we have established installing water-efficient taps and adjusting flushing
partnership contracts with other water providers and capacity in bathrooms. Our hospitals maintain RO water
continuously review the utilization of treated water from treatment systems through that provide backup water
liquid waste areas. sources to manage water stress. Our mall properties
focus on minimizing water disruptions and maximizing
At Lippo Village, all operational water needs, including water recycling opportunities. Our hotels implement
irrigation and drainage cleaning, are fulfilled using treated preventive maintenance programs for water supply
wastewater. Furthermore, across our hospitals, malls, and systems, including by installing IoT-based early warning
58 hotels, we are actively exploring methods to enhance systems in several hotel units to monitor water usage.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Water Quality Checks strategy to manage our water supply responsibly, which exceeds our target of a 30% increase in the
and to mitigate any potential disruptions. Our priorities volume of treated water sourced sustainably by
We enforce stringent measures to uphold high water
include promoting efficient and effective operational 2030., marking We are currently in the process of
quality standards across our diverse properties,
processes to reduce water loss, minimizing the direct use reviewing this target, to assess how we can continue
incorporating regular water quality assessments. These
of river and ground water as water sources, and enhancing to raise the bar for sustainable water treatment.
initiatives collectively safeguard optimal water quality
our water circularity through retention ponds and treated
throughout our establishments, prioritizing the well-
wastewater. We hold a water withdrawal permit (SIPA)
being of both our employees and customers. To align with WATER WITHDRAWAL BY SOURCE
to ensure compliance with water withdrawal limits, and
Minister of Health Regulation No. 2 of 2023, we conduct (10 3 m 3 )
monthly water meter readings are reported to the relevant
monthly testing of clean water quality. Should results 25000
authorities. In 2023, our WTD collectively withdrew a total
2023 SUSTAINABILITY REPORT
exceed the acceptable thresholds, we promptly execute 20,461 20,572
20,420
of 20.6 million m3 of water for treatment, most of which 19,327
routine disinfection and flushing of our water storage 20000 19,899
19,840
came from purchased municipal water sources11. 19,476
systems. Furthermore, certified external laboratory 18,547
18,857
17,954
analyses are conducted to ensure strict adherence to
Sustainable Water Treatment 15000
quality benchmarks.
As Indonesia is prone to water stress, our WTD has
In addition, our hospitals employ RO water treatment been expanding its capabilities to tap on sustainable 10000
systems which are subject to routine maintenance water sources such as harvested rainwater and recycled
|
and daily supervision. Monthly assessments gauge the wastewater to reduce freshwater withdrawal. For rainwater
PT LIPPO KARARWACI TBK
5000
quality of RO water, while regular laboratory testing of harvesting, we have invested in the collection and storage 530
294 223 379 410
716
treated wastewater guarantees compliance with quality of runoff water through retention ponds, which also 226 397 214 209
0
standards. Similarly, our mall and hotel properties conduct helps to reduce flooding in urban areas. For wastewater 2019 2020 2021 2022 2023
monthly laboratory tests on water quality, to ensure that recycling, we have equipped some of our wastewater
Recycled Purchased
Rainwater
we meet visitor safety and satisfaction standards. treatment plants with the systems to carry out additional Wastewater Water
treatment processes to ensure that the quality of the
WATER TR E AT M E N T treated wastewater is suitable for reuse.
WATER WITHDRAWAL FROM SUSTAINABLE SOURCE
(10 3 m 3 )
Aside from on-site water management as part of our As of 2023, 6% of the total treated water is derived
operations, our WTD is directly involved in the treatment from sustainable sources (recycled wastewater & 1250 139%
1,246
and distribution of water in our key townships: Lippo rainwater). This marks a 139% increase in treated water 1000
Village, Lippo Cikarang, Tanjung Bunga, and Kemang from sustainable sources against the 2019 baseline, 750 19% 19%
14%
Village.10 We implement a holistic water resilience Baseline 620 619
500 593
520
10
In 2023, we commenced water treatment operations in our Holland Village Manado township. However, we have excluded the water withdrawal data from Holland Village 250
Manado in this Report, as we do not have full-year data given that the operations only began in mid-2023. Other integrated developments such as St. Moritz also have water
treatment facilities, but these are managed by third parties. We currently do not include third party water treatment data in our disclosures. 0
59 11 2019 2020 2021 2022 2023
Data regarding water withdrawal covers the water treatment facilities managed by our WTD only. Our WTD purchases water from different sources – 1) treated water from
Perusahaan Daerah Air Minum (PDAM); 2) river water; 3) groundwater; and 4) other emergency water sources (e.g. water supply from water tank trucks).
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TRANSFORMING WASTE INTO RESOURCE
GMTD Water Treatment Division LIPPO VILLAGE’S INNOVATIVE WASTEWATER RECYCLING OPERATIONS
In 2023, Lippo Village (LV) kickstarted its wastewater recycling operations, and operating cooling towers. LV has ambitious plans to boost the volume of
marked by the launch of its new wastewater recycling facility in February. treated water from rainwater harvesting and recycled wastewater. Currently, the
This facility employs an advanced ultrafiltration process to treat wastewater wastewater recycling facility operates at a capacity of 25 liters per second (lps) in
that is processed by the existing Sewage Treatment Plant (STP), transforming this initial phase, with a target of reaching an ultimate capacity of 100 lps to meet
it into clean, non-potable water. This recycled water, while not suitable for rising demand. By repurposing wastewater through this recycling process, LV
2023 SUSTAINABILITY REPORT
drinking, serves as a valuable resource for commercial customers. They demonstrates its commitment to sustainable water management practices and
utilize it as an alternative water source for activities such as flushing toilets environmental stewardship.
LV North
State Owned
Water Company
WTP 1 & 2 Residential
|
PT LIPPO KARARWACI TBK
River Intake
STP Remediation Pond
LV Central
POTABLE
LV West
WTP 3 Commercial
NON POTABLE
Waste Water
Recycling Facility
60
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Water Loss Avoidance WA STEWATE R
The avoidance of water loss is a priority for our WTD, given We process our wastewater responsibly in line with
WASTEWATER GENERATED BY BUSINESS SEGMENT
that water is a vital resource that is becoming increasingly regulatory requirements on wastewater discharge and (10 3 m 3 )
scarce in many regions in Indonesia. By ramping up diversion, ensuring that our wastewater does not have an
our efforts to reduce water loss in our production and adverse impact on the environment or other stakeholders 3000
distribution processes, we ensure efficient usage of water such as our local communities. All wastewater generated at
2,541
2500 1,128 2,364
while reducing costs associated with water loss. Water loss our managed properties is treated at certified wastewater 1,175
2000
avoidance can also help mitigate the impacts of drought treatment plants, the majority of which are located on- 1,457
1500
and water scarcity on local communities. Hence, we have site, before being discharged or diverted. Monitoring of 1,020 640
2023 SUSTAINABILITY REPORT
adopted the following measures to minimize the amount the treated water quality is conducted for pH and flow rate
1000 783 770
126
589
of water loss in our water production and distribution: parameters, and regular measurements are taken by an 500 691
393 41 419
153
accredited laboratory. 0
• Replacement of equipment and parts such as pipes, Discharged Recycled /
Reused
Discharged Recycled /
Reused
pressure gauge, pump systems and media filters Our townships also operate centralized wastewater 2022 2023
• Masterplan and infrastructure study: To optimize the treatment plants that serve multiple assets and areas Real Estate Healthcare Lifestyle
capacity of retention ponds and identify additional connected by a common sewage network. To manage the
developable areas within our boundary. Additionally, a water discharge, sludge generated from the clean water WASTEWATER TREATMENT BY
|
water balance study was conducted to assess the ratio
PT LIPPO KARARWACI TBK
treatment process is directed and stored in the sludge WATER TREATMENT DIVISION (10 3 m 3 )
of water supply sourced from various potential water drying bed. Subsequently, the sludge undergoes settling
4500
resources within the development, including retention and drying processes where the dried sludge is then 4,163 4,211
ponds, recycled water, and the local water supply collected in the open area of the water treatment plant.
4000
3,120 2,167
(PDAM) 3500
In 2023, our business units generated a total of 3.82 million 3000
To reduce water loss, our WTD employs various measures m3 of wastewater, of which around 38% was recycled 2500
such as the recalibration of water meters, the replacement or reused for subsequent use, while the remaining was 2000
2,044
of pressure gauges to control distribution pipe pressure, discharged externally. Our WTD treats wastewater which 1500
and the replacement of inverters pump systems for not only includes wastewater discharged by our business
1000
constant pressure control. These measures not only serve 1,043
units, but also wastewater generated by residential,
500
to conserve water but also improve the efficiency of the commercial, and industrial tenants. Around 49% of all
water distribution system, reducing costs associated with 0
processed wastewater is diverted for reuse after treatment12. 2022 2023
water wastage.
Recycled / Discharged
Reused
61 12
For diverted wastewater, some is recycled and sold as non-potable water, while the rest is directly re-used by TMD for various purposes including irrigation and landscaping.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
WASTE MANAGEMENT
We are committed to providing a clean and sustainable MA NAG I NG WA STE RE SP O NSI B LY There was an increase in waste diversion due to
living environment for all stakeholders. Given the improvements in waste reporting by several business
Given the diverse scope of our operations, we manage
substantial volume of waste produced during our business units (which now weigh their waste directly rather than
various types of waste including domestic waste from
operations and from our customers and tenants, effective use volumetric conversion), tenant engagement to recycle
commercial and residential areas, medical waste from our
waste management is crucial. Our strategy for waste waste by Lippo Malls and our townships, as well as the
hospitals, landscape waste from township management,
management centers on optimizing resource efficiency, inclusion of SDH, which actively composts landscape
and construction waste from project development. In
2023 SUSTAINABILITY REPORT
minimizing waste generation, and enhancing recycling waste and recycles bottled waste. We received zero
2023, our managed assets and townships generated
rates to contribute to the principles of a circular economy. environmental complaints from the local community,
around 50 kilotons of waste in total, comprising 48 kilotons
NGO, government or media regarding any waste, water
of non-hazardous waste and 2 kilotons of hazardous waste.
or air pollution. There were also no spills of chemicals, oils
The majority of this waste was generated by our tenants
and fuels, among other substances that could potentially
and contractors.
affect soil, water, air, biodiversity and human health.
NON-HAZARDOUS WASTE HAZARDOUS WASTE
|
PT LIPPO KARARWACI TBK
Real Estate Real Estate
Healthcare Healthcare
Lifestyle Lifestyle
50,720
11,865 44,346
7,987
2,615
2,697
36,240
33,662
1,975
3,159 1,864
1 17
1,424 1,202
1,347 1,342
1,352 182 37
51 11 2
1,775 616
21 516 11 35
Disposed Diverted Disposed Diverted Disposed Diverted Disposed Diverted
2022 2023 2022 2023
DISPOSED = Incinerated or Landfilled,
DIVERTED = Reused, Recycled or Composted
62
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Types of Waste Generated and Managed This includes establishing our own temporary storage The updated SOP provides the operational teams with
facilities for hazardous waste where necessary. We an understanding of best practices to improve the waste
Our robust waste management policies and SOPs provide
partner with licensed vendors who are responsible for the collection process, as well as streamlines the process flow
guidance on the appropriate collection and disposal
transportation, treatment, and disposal of our hazardous of waste collection from tenants to Temporary Storage
methods for each type of waste, in compliance with local
waste. Points (TPS) and onward to the waste vendors. We will
laws and regulations. We engage municipal waste services
continue to work closely with our vendors to improve the
and third-party vendors to regularly collect and dispose
In 2023, our healthcare business generated 1,355 tons waste reporting processes and data quality, which will
of the waste generated in our areas of operation. All our
of medical waste. Monthly inspections are carried out to enable us to systematically track our waste and identify
waste management protocols and procedures are aligned
ensure that hazardous waste is being managed in line areas for improvement.
with government regulations. In 2023, TMD spent around
with regulations and operational SOPs. All hazardous
2023 SUSTAINABILITY REPORT
Rp 4.3 billion on waste management services alone, as well
waste collection is documented using a logbook and an
as another Rp 1.6 billion in permits and other compliance
integrated digital reporting system in compliance with
costs.
government regulations, whereby any hazardous waste
exceeding normal thresholds is investigated.
Non-hazardous waste is typically collected and sorted
onsite by our property managers before it is picked up
by a vendor and transferred to a local temporary waste Type of Weight
Medical Waste (Tonne)
collection site (TPS). For our townships and integrated
|
developments, TMD engages authorized vendors to
PT LIPPO KARARWACI TBK
Sharp Box (Infectious, 1,085
Pathological, Sharp Objects)
collect domestic waste from our residents, whereby these
Pharmacy, Hazardous 234
vendors will recycle what they can before disposing the Chemicals
rest of the waste at the respective landfills. To minimize
Cytotoxic 11
our environmental impact, we collaborate with local
Sludge from Wastewater 7
communities to enhance waste management practices Treatment Plant (IPAL)
at the TPS, offering financial assistance and infrastructural Liquid Hazardous Waste (B3) 18
support as needed.
Hazardous waste is also a by-product of our business During 2023, Lippo Malls conducted several audits related
operations, and needs to be carefully managed as part to the environment, including waste audits. The purpose
of our risk management controls and remediation of of conducting this audit was to identify a more sustainable
negative environmental impacts. We have implemented approach to waste management, including to improve
strict protocols and guidelines to ensure the safe sanitary standards and increase waste diversion. As a result
and proper management of hazardous waste, as the of the audit findings, Lippo Malls took the opportunity to
improper handling of hazardous waste has an adverse revise its Standard Operating Procedures (SOP) for waste
63 impact on health and safety as well as the environment. management across all malls.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
R E D U CE , R E U S E , R E CYC L E
Recycling Initiatives LIPPO MALLS STRIVES TOWARDS
We are committed to minimizing the amount of waste “ZERO Division
WASTE”
GMTD Water Treatment
disposed by stepping up our efforts to reduce, reuse and Inorganic waste • At many of our managed properties,
we work with our domestic waste
recycle (3Rs). This involves the active engagement of the vendors to separate recyclable waste In 2023, Lippo Malls launched the “Towards Zero
various stakeholders in our ecosystem, such as our staff, such as plastics, paper, cardboard, Waste Indonesia” campaign, employing both active
aluminum, and glass bottles.
visitors, tenants, and residents. In 2023, we were able to events and social media outreach to raise awareness.
• We have commenced a study to
divert 3,200 tons of waste across our business units. We are measure used cooking oil (UCO) The campaign includes poster displays in malls and
waste at several properties, to be
on track to doubling the total amount of diverted waste digital billboards, along with social media promotion.
collected for UCO recycling vendors.
to 2,800 tons by 2030, but we can accelerate our waste • Electronic waste is traded in where Individual malls are also encouraged to conduct their
2023 SUSTAINABILITY REPORT
recycling efforts through more systematic engagement possible. own waste-related activities. For example, Lippo
with the various stakeholders across our value chain. For Organic waste • Our townships and SDH conduct Mall Kuta conducted a beach clean-up in Kuta that
instance, since we began our partnership with Rekosistem composting for landscape waste involved over 80 participants from various groups,
to produce fertilizers that can be
in November 2021 to recycle inorganic waste in our Lippo used in plant nurseries and other including employees and mall tenants of Lippo Mall
Village township, we have managed to work with a landscaping activities. Kuta and Lippo Plaza Sunset, Udayana University
• Several business units are piloting
growing number of building managers to recycle over 24 students, the Bali Inline Skate Community, the Segara
small-scale composting initiatives
tons of inorganic waste as of December 2023. to process food waste onsite. We are neighborhood community, and PlasticPay staff.
also looking into composting other
|
organic waste using black soldier
PT LIPPO KARARWACI TBK
We place a strong emphasis on waste prevention and flies.
reduction throughout our operations. In several business
Medical waste • Siloam recycles medical waste such
units, waste generation is monitored and investigated if as syringes, chemical bottles, infusion
there are any instances of excess waste being generated bags, and disinfectant packaging.
All recycled medical waste is first
beyond the normal threshold. We support and enforce
sterilized in line with regulatory
regulations that prohibit the use of single-use plastic bags standards.
in provinces such as Jakarta and Bali, in collaboration • Siloam returns expired medication to
pharmaceutical vendors.
with our tenants and visitors. Similarly, we recognize the
importance of reducing our reliance on single-use plastics,
and have made significant strides to minimize its usage in Throughout the year, we conduct waste campaigns
our operations. For example, all hotels have switched from by putting up posters, hosting events, and producing
single-use plastic containers used for soaps, shampoos, social media content. By providing education and
and conditioners to a refillable system. We also reuse raising awareness, we aim to inspire our stakeholders
non-disposable plastic containers and packaging in our and members of the public to play their part in the 3Rs.
hospitals after thorough disinfection. For example, Aryaduta is piloting a recycling program in
its hotels where discounts are provided to guests who
64 contribute towards recycling efforts.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
MAT E R I A L U S AG E
Apart from operational waste, we acknowledge that the utilization of construction
materials significantly contributes to our embodied carbon footprint. Demonstrating
our commitment to sustainability, we are actively striving for greater efficiency in
material use and seeking environmentally friendly alternatives whenever feasible.
In the Real Estate segment alone, we generated approximately 183 kilotons of
construction materials, including concrete, steel, glass, and timber. To mitigate the
environmental impact, we are exploring initiatives like prefabrication, recycling
of leftover materials, and promoting home renovations instead of demolition and
2023 SUSTAINABILITY REPORT
new construction. Additionally, we are delving into sustainable design practices to
enhance material usage efficiency in project development. Our aspiration is to obtain
more green certifications for new build projects, reflecting our commitment to
environmentally responsible construction practices.
Construction Materials LPKR LPCK GMTD TOTAL
in 2023 (Tons)
|
PT LIPPO KARARWACI TBK
Concrete 99,355 62,659 4,081 166,095
Steel 5,508 1,624 337 7,469
Glass 627 96 12 735
Timber 5,101 4,159 31 9,291
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
I NVEST IN G IN
O U R PEOPLE
As an employer of over 16,000 staff and manifold more across our
value chain, our people are our most valuable resource and the
driving force behind our business success. We are committed
to being a workplace of choice for our employees by upholding
fair employment practices, prioritizing their health, safety, and
well-being, supporting their development and aspirations, and
empowering them to be a force for good.
Employment & Rights
Occupational Health & Safety
Training & Development
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
EMPLOYMENT & RIGHTS
EM PLOYM E N T
Our goal is to attract and nurture a diverse and dedicated pool of people that adds value and drives
organizational growth. A stable workforce reduces turnover costs and business interruptions, ensuring
business continuity and fostering a stable, collaborative work environment founded on enduring
relationships. This approach enables us to concentrate on enhancing productivity, achieving operational
excellence, and promoting employee satisfaction and well-being.
2023 SUSTAINABILITY REPORT
As of 31 December 2023, we have a total of 17,130 employees, all of whom work on a full-time basis.
The Healthcare segment makes up 83% of our employees, followed by the Lifestyle segment (11%) and
Real Estate segment (6%) respectively. The majority of our employees are permanent staff (91%). We
oversee a collective workforce of 15,587 non-employee workers across all our business units.13 Together,
our workforce totals 32,717 individuals, with employees representing 52%. For a detailed demographic
breakdown, please consult the “Appendix - Workforce Data” located on pages 93 to 96.
|
PT LIPPO KARARWACI TBK
EMPLOYEES NON-EMPLOYEE WORKERS EMPLOYMENT BY STATUS
BY BUSINESS SEGMENT BY BUSINESS SEGMENT
1,581
2,007 981 15,549 15,587
6,369
12% 6%
41%
7,076
45%
17,130 15,587
Employees Non-Employee
Workers
Employees Non-Employee
14,142 2,142 Workers
82% 14%
Contract Employees Non-Employee
Real Estate Healthcare Lifestyle Permanent Employees
Workers
13
Non-employee workers include administration, building maintenance, cleaning and janitorial service, security, housekeeping, customer service,
gardening, parking attendants, and call center operators. Segment-specific workers include construction and landscaping workers (Real Estate);
ambulance drivers, laboratory technicians, pharmacist assistants, mortuary staff, ward clerks, and caregivers (Healthcare); as well as F&B staff and
67 golf course operators (Lifestyle).
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Employee Benefits • BPJS Pension Guarantee, a mandatory program from We organize various commemorative events and friendly
the government, with employee contribution of 1% and sports tournaments throughout the year to foster
All our permanent and contract employees receive
company contribution of 2%. connections within and among our business units. The
similar benefits, encompassing annual leave, special
• BPJS Employment Old Age Security, a mandatory monthly newsletter, Infinity, serves as a source of updates
leave, counselling, wellness programs, medical insurance
program from the government, with employee on key company activities and business performance
coverage, along with exclusive discounts on products
contribution of 2% and company contribution of 3.7%. for our employees. We place an emphasis on attracting
and services linked to the Group. Some of our business
In total, our post-employment benefit liabilities stand at and retaining the best talent. In 2023, we hired a total of
units provide additional benefits depending on the
Rp 326 billion as of 31 December 2023, based on calculations 832 new employees. The majority of our new hires were
nature of their work and the job scope involved. For
by an independent actuary. male (60%), and aged 30 and below (57%) in our lifestyle
example, our hotels provide duty meals for property-
sector. On the other hand, 1,632 of our employees left the
2023 SUSTAINABILITY REPORT
based employees, while our hospitals provide regular
Employee Engagement & Retention organization. For additional details on activities promoting
medical check-ups and day care services. As regulated by
employee well-being, please refer to the “Health and
Indonesian law, we make monthly contributions for BPJS We believe that a positive and nurturing work
Safety” section on pages 72 to 74.
Kesehatan (health insurance) and BPJS Ketenagakerjaan environment is essential to attract, motivate and retain
(social security) towards our staff accounts based talent. Apart from the benefits we provide, we involve our NEW HIRES IN 2023
on the prescribed contribution rates. In addition, we employees in year-round engagement events, training 15
329 2%
463
provide post-employment benefits in accordance with sessions and town halls to enhance their workplace 40% 56% 224
prevailing regulations. well-being and strengthen our corporate culture. 27%
|
PT LIPPO KARARWACI TBK
Gender Age Business
Segment
503
60% 473
344 145
PARENTAL LEAVE RETURN TO WORK & RETENTION RATES 57%
41% 17%
73.5% Female < 30 Real Estate
Staff who returned to work after
parental leave (12 month retention) 587 299 Retention rates - Male 93.3%
85.7% Male 30-50 Healthcare
> 50 Lifestyle
58.3%
Staff who returned to work after
parental leave 646 330 Retention rates - Female 91.7%
81.1% EMPLOYEE TURNOVER IN 2023
20 135
1% 317 8%
100% 1,051 20%
Staff who took parental leave 649 330 Return to work rates - Male 100% 64%
100%
581
36%
Business
100% Gender Age Segment
Staff entitled to parental leave 649 330 Return to work rates - Female 99.5%
100% 713
44% 899 1,180
55% 72%
0 200 400 600 800 1000 0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Female < 30 Real Estate
Female Male Real Estate Healthcare Lifestyle
Male 30-50 Healthcare
68
> 50 Lifestyle
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
STRENGTHENING ENGAGEMENT & SUSTAINABILITY AWARENESS LIPPO FUN CLUB
In 2023, our Company hosted two Town Hall Meetings Complementing our town hall meetings, we continue We seek to support our employees in leading active and
in May and December respectively, demonstrating to engage our employees throughout the year via our healthy lifestyles. In 2022, we launched Lippo Fun Club
our commitment to transparency and employee virtual monthly newsletter “Infinity”. We introduced to encourage regular physical exercise and bonding,
engagement. Anchored by our Group CEO John Riady, quizzes in the newsletter to enhance knowledge whereby employees gather at Aryaduta Country Club
2023 SUSTAINABILITY REPORT
these gatherings brought together more than 1,800 sharing and engagement. Furthermore, we have also on a weekly basis to utilize its sports facilities and
employees across various business units. The agenda expanded readership to other business units such compete in friendly tournaments. In 2023, we expanded
included an overview of business performance, new as Lippo Cikarang to keep them apprised of various the range of sports activities and classes offered to
strategies, and insights on our ESG efforts, particularly highlights and company events. employees. We also made sporting facilities accessible
our 2030 Sustainability Agenda. during work breaks or after office hours.
|
PT LIPPO KARARWACI TBK
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DIVE R SI TY & E Q UAL O PP O RTU N ITY Non-Staff 312 409 EMPLOYEE’S
POSITION BY
GENDER
Diversity, equity, and inclusion (DEI) are fundamental aspects of our culture Staff 9,732 4,584
and identity. We embrace a rich diversity of perspectives. Employees from Female
Supervisor 600 754
various business units collaborate, leveraging their diverse skills, backgrounds, Male
Manager 264 391
and experiences, resulting in exponential growth through organizational
synergy. While acknowledging the progress made, we remain committed Executive 33 51
to fostering diversity and inclusivity within our leadership structures, actively 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
working towards achieving a more equitable and representative gender
Non-Staff 238 439 44 EMPLOYEE’S
balance at all levels of our organization. Our female employees make up 64%
POSITION BY
2023 SUSTAINABILITY REPORT
of our total workforce. We deliberately strive to maintain gender diversity to Staff 7,621 6,426 269
AGE
the best extent possible, taking into account these industry specific gender
Supervisor 249 1,012 93 < 30
distributions. Our hiring policy ensures that we maintain a gender balance,
30-50
even in our shortlisting of job candidates. There were no reported incidents of Manager 18 528 109
> 50
discrimination in 2023. Executive 48 36
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
40%
|
17,130
721 LOCAL & FOREIGN
PT LIPPO KARARWACI TBK
Non-Staff
EMPLOYMENT
Female Executives 14,315 1
STATISTICS
Employees Staff
and Managers
Supervisor 1,353 1 Local
Foreign
Manager 648 7
551 474
3% 3% 2,503
10,941 8,126 Executive 76 8
15%
64% 48%
6,189 84% 86% 88% 90% 92% 94% 96% 98% 100%
36%
Educational
Gender Age Qualifications
9,512 4,641 EMPLOYMENT
55% 27% BY REGION
Lifestyle 1,349 98 227 116 217
8,453
49% Java
Female < 30 High School Certification Healthcare 8,679 805 1,391 1,225 2,042 Kalimantan
Male 30-50 Diploma Sumatra
> 50 Undergraduate Degree
Real Estate 867 4 11 79 20 Sulawesi
Postgraduate Degree Bali, Nusa
Tenggara,
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Maluku, Papua
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
Within our leadership ranks, females represent 16.7% of This dedication underscores our support for the local CH IL D L ABOR , FOR CED OR
our Board of Commissioners (one out of six members), community and our contribution to the national economy COMPULS ORY L ABOR
and 11.1% of our Board of Directors (one out of nine through local employment opportunities.
We adopt a zero-tolerance stance towards child, forced,
members). Notably, 40% of our employees who hold
or compulsory labor, which is highlighted in our HR policy
managerial positions and above are female. While we NO N- DI SCRI MI NATI O N
and Code of Conduct. We ensure that all employees
promote employees strictly based on performance,
We ensure that our employees are compensated fairly, understand these human rights principles through annual
leadership ability, and experience for comparable roles
taking into account employment status, job scope, and mandatory refreshment courses of our Code of Conduct.
across the organisation’s hierarchy, we are committed to
qualifications, among other relevant factors. As a matter Our operations and the suppliers we engage with
gender diversity and will strive for gender balance within
of policy, there is no difference in the salary range between have been categorized as low-risk in terms of potential
our senior and middle management, especially in our
2023 SUSTAINABILITY REPORT
male and female employees across all employee categories involvement in child and forced labor. In 2023, there were
succession planning. In addition to gender diversity, we
and levels. Any differences in compensation are strictly no reported incidents relating to discrimination, child
also value age diversity within our organization. We employ
due to the individual’s qualifications and are irrespective labor, forced labor, or any major employment case.
professionals based on their qualifications, ranging from
of gender. We strive to narrow any compensation gap
fresh graduates to industry veterans. Our employees under
between our female and male employees. In addition,
the age of 30 make up a significantly larger portion of our
our entry-level wages are always equal to or above local
workforce. Furthermore, we take pride in the fact that 85%
minimum wages throughout our locations of operation
of our employees hold tertiary qualifications and above. To
across Indonesia, demonstrating our commitment to fair
|
maintain our competitive edge, we actively recruit fresh
PT LIPPO KARARWACI TBK
compensation for our people. There are no reported cases
graduates and professionals from diverse educational
of discrimination during this period.
backgrounds and areas of expertise. We recognize the
importance of a strong educational background for skilled
professionals, such as healthcare workers, in delivering
FRE E DO M O F A SSO CI ATI O N &
quality service.
CO LLE CTIVE B A RG A I NI NG
We also believe that investing in local talent can help to The rights and obligations of our employees are regulated
build a strong pipeline of skillful and capable workforce in in the Company Regulations. To minimize business
Indonesia. In 2023, 99.9% of our employees are Indonesian disruption, we maintain two-way communication
citizens. Where possible, we prioritize the hiring and channels between the organization and employees, and
placement of employees in their region of origin, to ensure any significant operational changes within our business
that our teams on the ground have a good grasp of the which have the potential to affect our employees are
local socio-political and cultural sensitivities to operate communicated beforehand. We respect workers’ rights to
effectively as well to support the local area empowerment. exercise freedom of association or collective bargaining.
The commitment to local empowerment extends to our As of 2023, none of our employees are covered under
preferential engagement of local vendors and contractors. collective bargaining agreements.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
O C C U P A T I O N A L H E A LT H & S A F E T Y
We are committed to providing a safe and conducive This year, we conducted 90 OHS training sessions including Each business unit appoints officers and/or committees
environment for all our stakeholders to thrive. A healthy first aid, handing power tools, personal hygiene, fire safety dedicated to overseeing the implementation of OHS
workforce is vital for business continuity, which is why we and emergency response training. policies within their respective workplaces. These OHS
have put in place robust health and safety protocols in line officers bear the responsibility of hazard identification,
with best practices and guidelines. We have implemented O HS MA NAG E ME NT & TRA I NI NG conducting risk assessments, performing safety checks,
an occupational health and safety (OHS) management and reporting incidents. In the event of any incident,
Every business unit has established an OHS system
2023 SUSTAINABILITY REPORT
system that covers all employees, as well as non-employee immediate escalation to the respective head offices
in accordance with government regulations.
workers at our operational sites. Our objective is to is required for reporting and investigation. In cases of
Comprehensive coverage is guaranteed under these
foster a workplace culture where our employees deeply injuries or accidents, corrective actions will be promptly
occupational health services for our entire workforce,
understand the significance of OHS. implemented to prevent any recurrence.
encompassing both permanent and contract employees.
STA FF WE LL- B E IN G
WATER TREATMENT DIVISION:
We adopt a comprehensive approach in prioritizing
OHS PREVENTION & MITIGATION
|
the well-being of our staff, as we recognize that this
MEASURES
PT LIPPO KARARWACI TBK
contributes to improved health outcomes and a more
content workforce. In addition to the government- Our Water Treatment Division has enforced these
mandated health and insurance benefits (BPJS measures to improve OHS standards:
Kesehatan and BPJS Ketenagakerjaan), we promote • PPE as required
worker health through enhanced coverage of third- Safety shoes and helmet when working in
party health benefits administered by private health dangerous areas
insurance providers. This ensures that our employees have Earplugs when entering the pump room
access to high-quality healthcare and receive financial Masks, goggles, outercoat for laboratory
support for various health services, including inpatient examinations
and outpatient care, dental treatments, and medical • Eye and hand washing stations in chemical
checkups. We also regularly organize vaccination drives for storage areas
our employees and their families in a timely manner. We • Gas indicator to ensure the manhole is safe
integrate health and safety training into our orientation from dangerous gases before carrying out
program. Employees can access relevant materials and maintenance on the wastewater network
resources through our learning platform to ensure they Infrared thermal indicator to measure engine/
are equipped with essential knowledge from the start. equipment temperatures
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
This year, our organization focused on enhancing
Job Specific OHS Training
Occupational Health and Safety (OHS) practices through
formal training curriculum. Our employees participated Real Estate Healthcare Lifestyle
in a total of 5,196 training hours for OHS-related trainings. • Electrical engineering personnel • Emergency medical technical • Food safety & hygiene management
We reviewed the OHS training programs for specific job certification certification (clinical and non-clinical) • First aid certification
• Electrical safety • General ward and emergency nursing
scopes, integrated health and safety into the orientation • Preventive maintenance
• First aid certification (clinical and non-clinical)
process, and conducted regular fire drill exercises across • Personal hygiene & sanitation
• Floor warden safety training • Pharmacy warehouse
• Pest control management
our various operations. In addition, we established an • Handling power tools • Infection prevention and control
Emergency Response Team within our office work • Hospital accreditation standards
environments to address potential safety concerns through
2023 SUSTAINABILITY REPORT
employee participation, consultation and communication.
Our commitment to maintaining incident reporting and
investigation procedures underscores our dedication to
ESG Committee
prioritizing the health and safety of our workforce and
continually improving OHS practices.
At the Group level, we have established an OHS
OHS Committee
|
committee comprising of representatives from each
PT LIPPO KARARWACI TBK
Floor Warden Coordinator / Industrial Relations (Chief)
unit. This committee serves as a centralized body to drive
Certified OHS Specialist Real Estate
coordination and performance management regarding
Certified OHS Specialist Mall
OHS standards and practices across the organization. Certified OHS Specialist Hotel
Responsibilities include conducting assessments on OHS Certified OHS Specialist Healthcare
standards and performance, ensuring the establishment ESG Team Member
of OHS governance structures (P2K3), supervising OHS Risk and Audit Team Member
reporting, standardizing OHS policies and procedures,
the implementation of new OHS initiatives and practices
across the group, and carrying out other tasks as directed
by the BoD and ESG Committee in relation to OHS.
Operational Operational Operational Operational Operational
In 2023, there were zero high consequence injuries, but HoldCo Real Estate Malls Hotel Healthcare
Floor Warden OHS Team OHS Team OHS Team OHS Team
we recorded 1 employee fatality and 1 non-employee
worker fatality14. There were 6 recordable injuries among
our employees and 45 recordable injuries among our 14
The employee fatality occurred due to slipping in extreme weather conditions. Our corrective actions include ensuring all workers operate within safe environments to
non-employee workers. Common injuries included burns, mitigate severe weather conditions, ensuring every worker wears appropriate attire according to company regulations, and reminding all workers to be more cautious during
73 extreme weather events. The non-employee fatality was due to a fall from height. Our corrective actions include conducting pre-checks on all equipment before use, utilizing
proper Personal Protective Equipment (PPE) such as helmets and safety harnesses, maintaining a tidy operational area around the formwork, and ensuring all employees always
communicate with the relevant supervisor before undertaking any work.
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being hit by a falling object, and falls/slips/trips. We remain
E M PLOYE E NO N-EM PLOYEE WO RK ER
committed to achieving our OHS targets of zero fatalities,
O H S PE R FO R M A N C E (2023 ) O HS PERFO RM ANCE ( 2023)
zero high consequence injuries, and a Total Recordable
Injury Frequency Rate (TRIFR) of less than 1. For 2024,
we will place greater emphasis on improving OHS 1 0 6 1 0 45
Fatality High Consequence Recordable Fatality High Consequence Recordable
performance and accountability, especially those working Injuries Injuries Injuries Injuries
in higher risk environments. This will be driven by the new
Group OHS Committee.
0.03 0 0.17 0.03 0 1.31
Fatality High Consequence Total Fatality High Consequence Total
Rate Injury Frequency Recordable Rate Injury Frequency Recordable
Please refer to “Appendix – Workforce Data” on pages 93 Rate Injury Frequency Rate Injury Frequency
2023 SUSTAINABILITY REPORT
Rate (TRIFR) Rate (TRIFR)
to 96 for a full breakdown of our OHS performance, and
“Appendix – Reporting Methodology” on pages 88 to 89
for the injury definitions and calculation formulas used in
our disclosures.
35,130,984 0.06 34,374,426 0.38
Working Hours Lost Time Injury Working Hours Lost Time Injury
Frequency Rate (LTIFR) Frequency Rate (LTIFR)
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TRAINING & DEVELOPMENT
We strive to be a talent-driven organization that nurtures emphasis has been placed on health and safety training,
the personal growth of our employees, providing them adherence to work standards for delivering high-quality
with the essential skills and knowledge to excel in their products, with soft skills development primarily facilitated
roles. Continuous training and development initiatives are through our digital platform. In the Healthcare segment,
crucial in cultivating a high-performing and productive there is a broad range of training programs ranging from
workforce. patient care to clinical expertise, with training materials
2023 SUSTAINABILITY REPORT
tailored to keep employees updated with the evolving
We take a holistic view of staff training by providing healthcare landscape. The Lifestyle segment prioritized
courses on key technical and soft skills required for each training programs aimed at enhancing service excellence
position, as well as refresher sessions on internal policies and customer satisfaction, as well as improving building
and procedures to promote good corporate governance. management and operations.
Throughout the year, we offer training and capacity-
building programs to improve the functional and As part of our continued commitment to foster a high-
technical capabilities of our staff. Training is conducted performing organizational culture, we firmly believe in the
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both internally and through third-party training providers importance of fair performance ratings and constructive
PT LIPPO KARARWACI TBK
to give employees broader exposure to market practices. feedback for our employees. Our comprehensive
In addition, we offer digital learning platforms to support performance management system, which encourages
self-paced learning, and to introduce our employees to superiors to provide feedback to their teams as an integral
new ideas. The utilization of digital platforms allows us to part of the performance cycle throughout the year,
offer more customized modules that supports targeted underscores our dedication to employee development
training to enhance the specific capabilities of individual and retention. This emphasis on continuous improvement
employees. We also encourage our employees to sign up not only cultivates a positive sentiment among our
for external training and conferences on their own, and workforce but also ensures sustained growth and success
even provide educational assistance and sponsorship for for our businesses. This year, the Group has rolled out
those who seek to further their studies. Individual Development Plans for identified talent at all
levels. Tailored training and development schemes have
Aside from developing core competencies, our been meticulously designed to address competency gaps
business units are actively involved in shaping their across various functions, proving effective in enhancing
own training curriculum to meet their specific business both soft and hard skills and empowering individuals to
and organizational needs. In the Real Estate segment, excel in their roles. 100% of permanent employees receive
75 regular performance and career development reviews.
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In order to strengthen our leadership pipeline, the Group Furthermore, we continued to roll out our Group-wide
also conducts a search for Young Talents throughout the sustainability training curriculum to generate greater
year to ensure that the Group acquires the best talents. awareness of sustainability and to equip our people with
The Group provides opportunities for young talents to the essential knowledge to actively contribute towards the
join the Management Development Program, which can Group’s ESG journey. The training includes internal sharing
help them achieve their full potential. The Management of ESG best practices and trends, familiarization with
Development Program is specifically designed to the Group’s priorities and standards, and participation
address our organizational needs and to give young in external conferences and webinars organized by IDX,
talents exposure to various aspects of our business. In financial institutions, and accounting firms. Our employees
2023, 10 employees graduated from our Management attended 1,156 ESG hours of training courses and external
2023 SUSTAINABILITY REPORT
Development Program. engagements. Internally, we delivered over 900 hours of
training across various ESG topics. We are committed to
In 2023, our employees collectively engaged in 702,071 doubling our annual ESG training hours, aiming for a total
hours of training, equating to an average of 41 hours per of 1,600 hours annually by the year 2030. In 2024, our focus
employee across business segments. We spent Rp 6.93 is on expanding the online ESG training curriculum and
billion on training expenses in total. Notably, healthcare rolling out internal campaigns to raise greater awareness
staff underwent an average of 47 hours of training, which of our ESG priorities.
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is comparatively higher than the number of training hours
PT LIPPO KARARWACI TBK
received by employees in the Real Estate and Lifestyle
segments. This is due to the nature of healthcare work,
where frontline workers require comprehensive training
in not just medical procedures but also service excellence Total Training Hours by Total Training Hours by
Grand Total
Employment Level Gender
and OHS protocols.
Non-Staff Staff Supervisor Manager Executive Female Male Training Training
Hours Expenditure
1,156 22,440 579,430 57,129 42,775 297 495,264 206,807 702,071 Rp
6,933,272,682
ESG training hours
5,196
Average Trainings Hour by Average Training Hours
Average
Employment Level by Gender
Total OHS training hours
Non-Staff Staff Supervisor Manager Executive Female Male Training Training
Hours Expenditure
31.1 40.5 42.2 65.3 3.5 45.3 33.4 41.0 Rp
404,744
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ARYADUTA’ S SUSTAINABLE TALENT EDGE GREEN BUILDING
DEVELOPMENT INITIATIVE TRAINING & CERTIFICATION
In collaboration with the Universitas Pelita Harapan (UPH), Aryaduta has launched a scholarship In 2023, two new buildings in our portfolio have obtained EDGE (Excellence in Design for Greater
program as part of its commitment to education and sustainable talent development. Specifically Efficiencies) green building certification, demonstrating our commitment to sustainable design
targeting individuals aged 20 to 25 from eastern Indonesia, the 3.5-year scholarship offers a and resource efficiency. As part of this initiative, we have prioritized educating our staff on EDGE
pathway for personal and professional growth in the hospitality industry. There are 15 students training and certification, providing EDGE Expert Training to a select group of talents. The goal
currently benefiting from the program. This initiative extends beyond mere financial support, as is to train a selected number of staff to become EDGE experts and auditors. We also invited
Aryaduta offers 5-year contracts post-scholarship completion, ensuring long-term opportunities the International Finance Corporation (IFC) to engage our real estate division on EDGE. Going
for the beneficiaries. Moreover, the participation of five Aryaduta hotels across various locations forward, we will continue to explore the integration of EDGE requirements into our new pipeline
2023 SUSTAINABILITY REPORT
amplifies the program’s impact, supporting regional development and inclusivity. As Aryaduta products, including both landed housing and high-end apartment offerings.
continues to champion sustainability in the hospitality sector, initiatives like the UPH Scholarship
Program stand as a testament to its dedication to cultivating talent and driving positive change
in communities.
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PT LIPPO KARARWACI TBK
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INTRODUCING “E-LEARNING RUANG BEL A JAR LIPPO”
Lippo Karawaci has launched “E-Learning Ruang Belajar Lippo”, a cutting-edge digital
training platform aimed at accelerating employee development and meeting evolving
learning needs. Leveraging an upgraded learning management system, this platform
provides a dynamic avenue for skill enhancement, boasting an intuitive interface and
gamified features that make learning engaging and enjoyable.
“E-Learning Ruang Belajar Lippo” offers tailored curriculum modules catering to diverse
2023 SUSTAINABILITY REPORT
competencies, including creative problem-solving, effective communication, and team
leadership. This personalized approach empowers employees to enhance their skills at their
own pace, enabling them to thrive in their roles and contribute effectively to the Group’s
objectives. Accessible via mobile apps and desktop browsers, this initiative underscores
Lippo’s commitment to sustainability and continuous employee development, shaping a
culture of ongoing learning and growth within the organization.
In 2023, we introduced mandatory modules focusing on Environmental, Social, and
Governance (ESG) principles and Occupational Health and Safety (OHS) standards. These
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PT LIPPO KARARWACI TBK
modules were designed to ensure participative compliance among employees, thereby
fostering a safe working environment and sustainable business processes to benefit future
generations.
ENHANCING COLLECTIVE KNOWLEDGE
OF EXECUTIVE LEADERS
In 2023, we organized a Leadership Workshop as part of our comprehensive development
program for our Governance Bodies and Management teams. The primary objective of the
Leadership Workshop was to provide our leadership with the latest insights into current
economic trends and effective leadership strategies, leveraging external industry experts
from various business fields. Through a series of interactive sessions, leaders were equipped
with the tools and mindset necessary to not only adapt to change but also to thrive in an
environment characterized by constant flux. In addition, the Leadership Workshop also
provided a platform for strategic alignment and cohesion among executive leaders across
the Group, including through knowledge sharing, culture building, and strategic discussions
78 on new opportunities.
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C H A M PI O NING
B E ST PR ACTIC ES
We constantly strive to uphold the highest standards of corporate
governance and accountability, ensure strict compliance with
regulations and company policies, as well as promote sustainable
practices across our value chain.
Governance & Accountability
Ethics & Compliance
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GOVERNANCE & ACCOUNTABILITY
CO R P OR AT E G OVE RN A N C E
We believe that Good Corporate Governance (GCG) is the convergence of three essential Our corporate governance structure consists of the General Meeting of Shareholders
elements: Corporate Governance, Risk Governance, and Sustainability Governance. Effective (GMS), the Board of Commissioners (BoC), the Board of Directors (BoD), and their respective
oversight and management of these three aspects of governance are critical to achieving standing committees, namely the Audit Committee and the Nomination & Remuneration
stable and sustainable growth. A crucial element of effective corporate governance involves Committee. This structure serves to promote responsible business practices and
the integration of sustainability into our business strategy and operations. Accomplishing accountability in decision-making while safeguarding the interests of shareholders and
2023 SUSTAINABILITY REPORT
this goal necessitates the establishment of a strong sustainability governance framework other stakeholders. This section complements the Corporate Governance Report, which
that engages key decision-makers at all levels of the organization. This engagement should can be found in the 2023 Annual Report on pages 135 to 256.
span vertically, from the Board level down to the operational level, and horizontally across
various business units and corporate functions responsible for driving different aspects of
Environmental, Social, and Governance (ESG) considerations.
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PT LIPPO KARARWACI TBK
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Committee Description, Role & Responsibility
Board of Directors & The Board of Directors (BoD) and the Board of Commissioners (BoC) are the highest governing roles in Lippo Karawaci, guiding the group’s strategic direction to
Board of Commissioners ensure alignment of material ESG issues and the interests of both the business and stakeholders. The BoD holds ultimate responsibility for the group’s performance,
while the BoC serves as a supervisory and advisory body to the BoD. Together, these Boards assess the Group’s targets and performance, approving public disclosures,
including the Annual Report and the Sustainability Report. The BoD and BoC also review the effectiveness of the risk management process through approval of our
ERM framework.
Audit Committee The Audit Committee (AC) assists the BoC to oversee our financial reporting, monitor and evaluate audit plans and implementation, assess the effectiveness of our risk
management and internal control systems, and supervise our compliance with prevailing regulations and accounting standards, among other duties. The AC carries
out their duties and responsibilities according to their charters. As an additional measure to incorporate sustainability into our framework, the audit focus for 2023 now
includes business interruption and ESG considerations.
2023 SUSTAINABILITY REPORT
Throughout 2023, the AC prioritized the following activities as part of its duties and responsibilities:
• Reviewed the independence, objectivity, the scope of the audit, the audit methodology of the Public Accountant, the Public Accounting Firm who will audit the
Company’s books;
• Reviewed the Financial Statements of the Company and provided recommendations to the Company’s Board of Commissioners;
• Reviewed and provided recommendations to the Company’s Board of Commissioners in connection with the Company’s plans for transactions with affiliated
parties, material transactions, and others, including significant corporate action plans;
• Reviewed the governance related to the Company’s compliance with the laws and regulations in the Capital Market and other laws and regulations related to the
Company’s activities.
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Internal Audit Unit
PT LIPPO KARARWACI TBK
The Internal Audit Unit (IAU) supports the AC by monitoring, evaluating, and improving the implementation of internal control, risk management, and corporate
governance processes in line with company policies. The IAU provides objective assurance and independent advice that aims to improve the operational activities of
Lippo Karawaci. The IAU reports directly to the President Director, as well as to the BoC, through the AC. The IAU carries out their duties and responsibilities according
to their charters. Starting from 2023, an ESG Audit has been incorporated into the annual internal audit plan and will be conducted each year.
Whistleblowing Committee The Whistleblowing Committee is a dedicated body within the Group that serves as a crucial component of the company’s ethics and compliance framework. Its
primary role is to facilitate and oversee the reporting and investigation of concerns or complaints raised by employees or other stakeholders regarding potential
misconduct, unethical behavior, or violations of company policies.
Nomination & Remuneration Committee The Nomination & Remuneration Committee (NRC) develops and maintains a transparent and formal process for the appointment of new Directors to the Board and
makes recommendations to the Board on a general framework of remuneration. The nomination and selection process for the highest governance body is based
on several parameters. The appointment of the Board of Directors and the Board of Commissioners is carried out through the mechanism of the General Meeting
of Shareholders (GMS), where the nomination process takes into account recommendations from the NRC and requirements based on the provisions of applicable
regulations, such as:
• The Company’s Articles of Association and applicable laws and regulations;
• Personal qualifications of candidates; and
• Knowledge and/or expertise in the sectors needed by the Company.
ESG Committee The ESG Committee, compromising 3 BoD directors including the Group CEO, is appointed by the BoD to assist in setting the direction for the Group’s ESG strategy,
policies and initiatives. The ESG Committees main role is to have oversight on all ESG matters, this includes setting and monitor ESG targets, spearheading new ESG
initiatives, reviewing ESG disclosures and undertaking any other ESG-related tasks set out by the BoD. The ESG Committee meets at least four times a year and reports
81 periodically to the BoD and BoC on its activities and recommendations.
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SU STA I NA BI L ITY G OVE R N A N C E Under the new system, we will be able to make data
consolidation and validation more efficient, standardize FOSTERING A SUSTAINABLE
We have established a robust sustainability governance LEADERSHIP MINDSET
data submissions via fixed templates, flag data
structure that provides oversight and drives the
discrepancies, and provide transparency in the audit ESG CAPACITY-BUILDING & PEER SHARING
implementation of environmental, social and governance
trail. This Group data management system will be fully
(ESG) initiatives at all levels of the organization. Our In 2023, our focus was on empowering our
operational in 2024.
sustainability governance is led by the ESG Committee, governance bodies and senior leadership with
overseen by the ESG Steering Group, and supported a deeper understanding of ESG principles,
ESG Committee Agenda
by the Group Sustainability Function. Please refer to underscoring our unwavering commitment to
“Sustainability Governance” on page 20 for an overview In 2023, the ESG Committee convened a total of 5 meetings,
sustainability. Through tailored ESG training
2023 SUSTAINABILITY REPORT
of the roles and responsibilities within our sustainability and carried out a number of activities as part of its duties
sessions for senior executives, we prioritized the
governance structure. and responsibilities as follows:
exploration of climate risks, opportunities, and
• Endorsed the Group’s decarbonization roadmap
decarbonization strategies. These targeted efforts
In 2023, we focused on strengthening our sustainability • Provided guidance and approvals on enhancements to
were aimed at equipping our leadership with the
governance, starting with the cascading of our the 2023 Sustainability Report, including a Group-wide
necessary knowledge to navigate the dynamic ESG
Sustainability Agenda to the respective business units. materiality refresh
landscape, ensuring compliance with ISSB and
We also developed and socialized Group-wide Standard • Approved the implementation of a Group-wide
TCFD requirements. Collaborative dialogues with
Operating Procedures (SOPs) on ESG reporting. The key integrated ESG data management system for improved
external consultants facilitated robust discussions
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and more transparent data reporting
PT LIPPO KARARWACI TBK
processes outlined in the SOP include identification within our ESG Committee, while ongoing
of responsible personnel, data collection, monitoring, • Formalized Group ESG reporting SOPs and made
engagements with senior management ensured
review, and report preparation for internal reporting preparations for the internal audit of ESG data,
alignment with our ambitious 2030 Sustainability
and regulatory purposes. In addition, we performed commencing with environmental metrics
Agenda and garnered enthusiastic support for
an internal audit of our ESG reporting processes and • Established a Group Occupational Health and Safety
implementation plans. Furthermore, we actively
2023 environmental disclosures as a preparatory (OHS) Committee to oversee business units’ OHS
engaged our Boards in a fruitful dialogue on
measure for assurance readiness. The objective of this performance and reporting, and the implementation
various sustainability fronts. We shared insights
audit was to test and validate that the current internal of OHS best practices
on our progress, challenges, and achievements
control system and reporting processes were properly • Reviewed the findings and recommendations from
in aligning with ESG standards and reporting
designed, implemented, and complied with reporting the climate scenario analysis exercise
requirements. These interactive sessions fostered
standards. Another priority was the implementation of • Explored potential collaborations with external partners
transparency and facilitated strategic decision-
a Group-wide data management system to improve to support the Group’s community engagement and
making, reaffirming our steadfast commitment
ESG data integrity and streamline reporting flows. sustainability initiatives
to embedding ESG considerations within our
corporate governance framework and advancing
our long-term sustainability aspirations.
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ETHICS & COMPLIANCE
CO D E OF CON D U CT As part of our HR policy, we have a grievance mechanism, AN TI COR R UPTION
and we also maintain a publicly accessible whistleblowing
We prioritize sustainability and ethical business practices. Anti-corruption policies have been incorporated into our
channel. Our organization has established a robust
The Group consistently ensures that the Group’s Code Code of Conduct since 2022. We ensure anti-corruption
whistleblowing system to enable employees to report
of Conduct is aligned with best practice and the latest policies are socialized and reviewed annually and Maker-
concerns related to human rights, labor rights, or
business conditions. The last update to the Group’s Code Checker-Approver procedures, particularly in financial
anticorruption issues. Employees can choose to report
of Conduct was undertaken on December 15 2022 and expenditures, are to be carried out by different employees.
2023 SUSTAINABILITY REPORT
directly to our dedicated whistleblowing committee or
is readily accessible on the Group’s website. Our Code of At Lippo Karawaci, 100% of our operations are assessed
use our designated email address. This system ensures
Conduct covers responsible employment & workplace for risks relating to corruption by our Risk and Internal
confidentiality and anonymity, promoting an environment
practices, conflicts of interest, business ethics and relations Control Team as part of an annual risk assessment cycle.
where employees can voice concerns without fear
with external parties. To instill these values within our Risks are identified using a business process approach to
of retaliation. The reports received are thoroughly
team, we conduct mandatory annual training covering ensure all processes are covered and the risk identification
investigated by our whistleblowing committee, and
essential topics such as the code of conduct, company is comprehensive. In 2023, our risk assessment covers
appropriate actions are taken to address any identified
rules, good corporate governance, the whistleblowing all business processes including Plan to Construct,
violations. There were 0 reported cases of whistle blowing
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system, and non-disclosure agreements. In 2023, this Inventory Management, Sell to Collect, Procure to Pay,
through our whistle blowing channel.
PT LIPPO KARARWACI TBK
mandatory training has been socialized to all employees until Information Technology. In 2023, the Company
and is facilitated through our digital learning platform for implemented mandatory training on anti-corruption
In 2023, there were no administrative sanctions imposed
easy accessibility, enabling all employees to conveniently policies for all employees. Accessible through the internal
on the Company, members of the Board of Commissioners
participate and refresh their understanding each year. At training portal, this program covers crucial topics including
and members of the Board of Directors, by the Financial
the conclusion of the training, employees are required to Good Corporate Governance (GCG), whistleblowing,
Services Authority or other relevant authorities. We have
acknowledge that they have read and comprehended the compasny regulations, the code of conduct, and non-
not engaged in any activities that violate regulations
provisions outlined in the Group regulations, GCG, NDA, disclosure agreements. This year, we achieved a 99%
governing anti-bribery, anti-competitive behavior, anti-
whistleblowing system, and code of conduct. completion rate for our annual employee training on Code
trust, or monopoly practices throughout our business
of Conduct and anti-corruption policies. We also keep
operations.
our suppliers and business partners informed about our
anti-corruption policies and procedures, whereby they
will be required to sign a Vendor Integrity Pledge that
communicates the Company’s zero tolerance towards
corruption.
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SUSTAIN ABL E PR OCUR EMEN T POL ICY
Category Disclosure Cases
In line with our 2030 Sustainability Agenda, we have formulated a Group-wide
General Non-compliance with laws and regulations resulting in 0
monetary fines
Sustainable Procurement Policy and Supplier Code of Conduct, which outlines
our approach to conducting business with a focus on ethics,
Non-compliance with laws and regulations resulting in 0
labor and human rights, health and safety, and environmental sustainability.
non-monetary sanctions
This policy seeks to enhance governance across our value chain, such as by
Corruption Legal cases regarding corruption and bribery 0 mitigating legal and reputational risks stemming from supplier misconduct.
brought against the organization or its employees.
Every supplier is required to endorse the Supplier Code of Conduct by signing
(This does not include any employee/vendor corruption
cases that were resolved internally) a Supplier Statement of Commitment. This will be done on a one-off basis
2023 SUSTAINABILITY REPORT
upon signing a new/renewed contract. Existing suppliers will also need to
Competition Legal action (pending or completed) regarding anti- 0
sign this retrospectively, in phases based on our business units’ prioritization.
competitive behavior and violations of anti-trust and
monopoly legislation in which the Company has been Refusal to sign the Commitment requires reasonable cause in writing.
identified as a participant
Our organization continues to make improvements to procurement policies
Social/Economic Non-compliance with any relevant social and economic 0
laws and regulations, including human rights and labor and processes, with a particular focus on supply chain resilience, cost
laws management, and digitization. Several business units have transitioned
from a paper-based approval process to utilizing digital SaaS solutions.
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Environmental Non-compliance with any relevant environmental laws 0
PT LIPPO KARARWACI TBK
and regulations Additionally, we have incorporated Google Forms to facilitate communication
with vendors. In summary, better procurement management and
Health & Safety Non-compliance with regulations and/or voluntary 0
codes concerning the health and safety impacts of
integrating digitalization into our processes have increased transparency
products and services and accountability between us and our suppliers. In 2023, there were 2
cases of contract termination when contracts with business partners were
Data Privacy Cases or substantiated complaints concerning breaches 0
of customer privacy and losses of customer data terminated or not renewed due to violations related to corruption.
Legal proceedings associated with data security and
In 2024, we plan to formally publish and communicate our Sustainable
privacy 0
Procurement Policy and Supplier Code of Conduct to all our suppliers
Product Info Non-compliance with regulations and/or voluntary across the Group. Through regular progress reports, we will monitor supplier
codes concerning product and service information and 0
commitments and gather feedback. We have started socialization of the new
labelling
policies to key suppliers.
Non-compliance with regulations and/or voluntary
codes concerning marketing communications, 0
including advertising, promotion, and sponsorship
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SUPPLI E RS CO DE O F CO NDUCT
SUPPLIER CODE OF CONDUCT
BUSINESS ETHICS HUMAN AND LABOR RIGHTS ANTI NEPOTISM
Suppliers must conduct their business activities in Our suppliers shall comply with the applicable labour laws Suppliers should have no family relationship with our
compliance with all relevant local laws and regulations. and regulations, and the existing practice in the industry employees, including but not limited to spouses, children,
Additionally, they are encouraged to report any actual and local labour market of the jurisdictions in which parents, siblings, or other family relationships.
breaches or concealment of forbidden acts, such as anti- it operates. We strive for a safe and healthy work
bribery and corruption, unfair business practices, conflict environment, supported by a robust health and safety ENVIRONMENTAL RESPONSIBILITY
2023 SUSTAINABILITY REPORT
of interest, gifts and gratuities, and insider trading. management system that is compliant with all governing a. Suppliers must comply with local and national
health and safety laws and regulations and is aligned environmental laws and regulations. This includes:
FAIR COMPETITION with industry best- practice. Our suppliers must prevent i. Resource consumption, pollution prevention and
We are committed to promoting fair competition workplace injuries, illnesses and diseases by implementing waste minimization
among Suppliers, where they shall promote free controls to eliminate or mitigate risks from identified ii. Mitigate environmental risks and impact
and fair competition in the marketplace and avoid hazards and promote healthy workplaces. iii. Co-operate to measure, track and report the
business practices that have the purpose or effect of We also strictly prohibit the employment of underage sustainability performance of goods and
workers in accordance with the applicable laws
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limiting competition. services supplied
PT LIPPO KARARWACI TBK
and regulations. b. Suppliers must undertake reasonable endeavours
INSIDER TRADING to comply with national standards on environmental
INFORMATION CONFIDENTIALITY
We prohibit suppliers from unlawfully obtaining any kind protection and relevant local laws and regulations.
of confidential information or information and make Our suppliers must handle all our information in a proper
business decisions based on confidential or non-public way and maintain its confidentiality and comply with the
information. relevant data protection laws and regulations.
PROHIBITION OF PROHIBITION OF BRIBERY
HARASSMENT AND INTIMIDATION AND CORRUPTION
We do not tolerate any unlawful discrimination or Bribery and corruption are strictly prohibited in
harassment in the workplace. Our suppliers are prohibited any form. Our suppliers shall avoid any actual and
from unlawful discrimination based on any protected potential conflicts of interest that make it difficult
characteristic under applicable law and harassment to to conduct business objectively and effectively.
provide a safe and inclusive work environment. If there are such cases, Suppliers shall immediately report
to us.
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DATA PR IVACY & S E CU RITY In response to the evolving landscape of digital threats, we
are intensifying our cybersecurity measures to safeguard PATIENT DATA MANAGEMENT
We prioritize data privacy and security, particularly as AT SILOAM HOSPITALS
vital information and bolster system integrity. By ensuring
we expand our digital systems and manage increasing
that software and systems remain current, vulnerabilities
amounts of customer data. Our dedication to safeguarding
are minimized and resilience against cyber threats is Siloam recognizes the importance of protecting
customer privacy is reflected in our Code of Conduct,
fortified. Additionally, proactive steps such as upgrading the privacy and security of personal data. As
which requires all employees to uphold and protect
antivirus versions and implementing vigilant monitoring our healthcare business accelerates its digital
customer data privacy. We have established rigorous
facilitate swift responses to emerging threats, mitigating transformation, Siloam has implemented
frameworks for data governance, including policies,
the risk of data breaches and system compromises. robust data privacy protocols to safeguard the
structures, processes, and controls to ensure effective
rights of all individuals whose data is processed,
2023 SUSTAINABILITY REPORT
management and oversight of data. We consistently
Moreover, we are actively fostering a culture of IT security including patients, employees, customers,
assess our IT protocols and infrastructure to uphold robust
awareness among our workforce. Through comprehensive healthcare professionals, suppliers, visitors, and
cybersecurity measures. This includes system upgrades
socialization efforts, employees are educated on various other business partners. Siloam is proud to have
and patching for improved security and access to the latest
cyber threats, with a particular focus on phishing attacks. received ISO-27001 certificate for Data Quality
features, upgrading antivirus versions, and implementing
By equipping employees with knowledge and tools to and Management in 2023. Siloam maintained the
monitoring to ensure swift responses to unknown threats.
recognize and address potential security risks, we aim protection of its patients data throughout 2023,
In 2023, we did not receive any complaints related to
to establish a robust defense mechanism against cyber with no incidents of data leakage. The Group
customer privacy.
|
threats. Furthermore, the Company emphasizes data also recognizes the importance of protecting
PT LIPPO KARARWACI TBK
privacy and protection as core principles embedded in its information systems against cyberattacks,
its Code of Conduct. Employees are mandated to comply information leakage, and misuse of data or
with data protection laws, maintain the confidentiality systems. The organization’s ICT team maintains
of customer data, and obtain explicit consent before a range of information security countermeasures
disclosing any information. These stringent measures based on applied laws and regulations. This
underscore our commitment to upholding the highest includes collaborating with professional firms to
standards of data privacy and security while maintaining assist their IT in data protection, detection, and
the trust and confidence of our customers. response and implementing the international
cybersecurity framework NIST-CSF. Through
these efforts, Siloam ensures that its information
systems remain secure and protected against
unwanted activities.
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A PPE N D IX
Reporting Methodology
Environmental Data
Workforce Data
Scenario Analysis
Content Index
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REPORTING METHODOLOGY
G H G E M I SS I O N S Additional Notes different profiles in terms of energy consumption
and operational GFA compared to hotels.
Lippo Karawaci’s GHG inventory adheres to the World • Our reporting scope comprises high-rise residences,
o With the exception of high-rise residential
Resources Institute (WRI) and World Business Council hospitals, malls, hotels, and other real estate
buildings, we do not calculate the operational GFA
for Sustainable Development’s (WBCSD) Greenhouse operations, including water treatment plants and
for our other real estate operations because these
Gas Protocol Initiative (GHG Protocol) for corporate GHG managed residential/commercial/industrial areas
operations are not confined within built up areas
accounting and reporting. Our reporting boundaries are within our townships. We have excluded tenanted
2023 SUSTAINABILITY REPORT
and the intensity data cannot be accurately derived
based on the operational control approach, which includes areas and managed properties for which we do not
based on land area.
assets that are wholly owned or leased by Lippo Karawaci have operational control, such as franchise operations
• Base year emissions and any historic data are not
and our subsidiaries, as well as operations for which we and strata-titled assets for which we do not have a
recalculated for organic growth or decline. Organic
have the full authority to introduce and implement our controlling stake.
growth/decline refers to increases or decreases in
operating policies. • Energy intensity is calculated by dividing the total
production output, changes in product mix, and
consumption of fuel and electricity by the operational
closures and openings of assets that are owned or
Given that we have set emissions reduction targets, we GFA for the following building types: high-rise
controlled by the Group.
residences, hospitals, malls, and hotels.
|
have established accounting rules to account for changes
• 2023 conversion factors for calculating emissions
PT LIPPO KARARWACI TBK
in emissions to ensure that our emissions disclosures • GHG emissions intensity is calculated by dividing the
and energy are from DEFRA (The UK Department for
remain consistent even as our portfolio changes over total Scope 1 and 2 emissions by the operational GFA
Environment Food and Rural Affairs) environmental
time. In line with the GHG Protocol, a recalculation shall for each building type.
reporting guidelines; GWP (global warming potential)15
be performed if any significant qualitative or quantitative • Operational GFA may change from year to year due
used for calculating emissions from refrigerants are
change is made to the data, inventory boundary and/or to the development of new properties, expansion of
from GHG Protocol and IPCC Assessment Report,
methods. We have adopted the definition of “significant” operations within a built area, and transfer of ownership
2014 (AR5); and province-specific grid emission factors
as a structural change such as a merger, acquisition, or and/or operational control. Notable exclusions:
as published by the Ministry of Energy and Mineral
data restatements exceeding 5% of base year Scope 1 and o The tenanted areas in our high-rise residential
Resources of Indonesia (MEMR). For Scope 2 emissions,
2, in alignment with common references (WRI/WBCSD buildings and malls are excluded from our
a market-based method is adopted to highlight supply
2004). 2019 was chosen as our baseline year as it most operational GFA, as the emissions from these areas
choices and future renewable energy procurement.
accurately reflects our business as-usual emissions prior to are classified under Scope 3.
In addition we utilize the Inventory of Carbon and
the business disruption caused by the COVID-19 pandemic. o The operational GFA of our hotel portfolio excludes
Energy (ICE) database to account for embodied carbon
leisure properties such as Aryaduta Country Club
in building materials and US EPA (United States
and Imperial Klub Golf, which have significantly
Environmental Protection Agency)16 Industry Emission
15
GWP (Global-warming potential) is a term used to describe the relative potency, molecule for molecule, of a greenhouse gas, taking account of how long it remains active
Factors within our Scope 3 emissions.
88 in the atmosphere.
16
US EPA (United States Environmental Protection Agency) is an independent agency of the United States government tasked to protect human health and the environment.
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Introduction Highlights Our Sustainability Approach Enhancing Quality of Life Caring for Our Environment Investing in Our People Championing Best Practices Appendix
• Refrigerants - specifically classified under GRI as Wastewater Discharge practitioner, but can return to work within 1x24 hours after
Ozone Depleting Substances (ODS) - are included the incident.
Our wastewater discharge data is inclusive of both our
within our Scope 1 emissions calculations. This means
internal and tenants’ discharge, as we do not currently sub-
that the impact of refrigerants on our overall emissions, Lost Time Injury (LTI)
meter our tenants’ wastewater discharge. This method of
particularly those with ozone-depleting properties, Work-related injury which results in an employee being
reporting is aligned with reporting standards and peers.
is considered in our comprehensive emissions away from work for more than 1x24 hours after the day on
Some assets report data on actual wastewater discharge
assessment. which the injury occurred.
as recorded by their meters. For those which are unable to
disclose metered data, we take the approach of estimating
WATER A ND WAST EWAT E R High Consequence Injury
wastewater discharge as 80% of water consumption.
2023 SUSTAINABILITY REPORT
Water Consumption Work-related injury that results in an injury from which
WA STE the worker cannot, does not, or is not expected to
Our water consumption data is consistent with the way our
recover fully to pre-injury health status within six months
inventory for energy and GHG emissions is compiled: the Non-Hazardous Waste
(exclude fatality).
operational control approach. Given the same boundaries,
Our non-hazardous waste data reflects waste collected
we have excluded water consumption by residents/
from both our business operations and residents/ tenants. Recordable Injury
tenants.
We collate the data from the third-party vendors whom
Medical Treatment Case (MTC) and Lost Time Injury (LTI)
we engage to collect and manage non-hazardous waste
Water Withdrawal are jointly classified as Recordable Injury.
|
at our assets and townships.
PT LIPPO KARARWACI TBK
In addition to the water consumption by our business units,
Total Recordable Injury Frequency Rate (TRIFR)
we report on water withdrawal by our WTD, which supports Hazardous Waste
some of our township management operations. As water TRIFR = [No. of MTC + LTI] X 1,000,000 / [No. of Manhours]
Our hazardous waste data only reflects waste collected
withdrawal is tied to the demand for treated water, which
from our business operations. We collate the data from
includes residents, tenants and other businesses located Lost Time Injury Frequency Rate (LTIFR)
the third-party vendors whom we engage to collect and
in our townships (i.e. not only the water consumption for LTIFR = [No. of LTI] X 1,000,000 / [No. of Manhours]
manage hazardous waste at our assets and townships.
our own business operations), but we have also clearly
Tenants that produce hazardous waste (e.g. industrial
separated this water withdrawal data from our water High Consequence Injury Frequency Rate
tenants at Delta Silicon Industrial Park) separately arrange
consumption data on page 59. Data collected consists of
for hazardous waste collection by their own vendors. High Consequence Injury Frequency Rate = [No. of High
recorded water withdrawal and production data at the
Consequence Injury] X 1,000,000 / [No. of Manhours]
water treatment plant level.
O CCUPATI O NA L HE A LTH & SA FE TY
Fatality Rate
Medical Treatment Case (MTC)
Fatality Rate = [No. of Fatality] X 1,000,000 /
Work-related injury which requires the treatment beyond
[No. of Manhours]
first-aid by, or under the specific order of, a medical
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ENVIRONMENTAL DATA RESTATEMENTS (*)
• Restatement of 2022 energy and emissions data for the Real Estate and
Lifestyle segments due to clarifications on the boundaries between
common areas and tenanted areas; and updated conversion factors to
EN E R G Y CON S U M PT IO N align across all business units.
• Restatement of 2019-2021 water consumption data for Healthcare
segment, and 2022 water consumption data for Real Estate and Lifestyle
Energy Consumption
2019 2020 2021 2022* 2023 segments, following further data validations conducted in 2023.
(103 GJ)
Electricity 1,398 1,039 1,073 1,194* 1,253
Real Estate 88 84 104 145* 148
Healthcare 334 383 399 399 417
EN ER GY IN TEN S ITY BY BUIL DIN G TYPE
2023 SUSTAINABILITY REPORT
Lifestyle 976 571 569 650* 687
Petrol 7.3 8.4 9.2 18 16
Building
Real Estate 4.5 5.2 5.9 7.2 6.3 Energy
Intensity 2019 2020 2021 2022* 2023
Healthcare 2.0 2.4 2.2 8.6 7.2
(GJ/m2)
Lifestyle 0.9 0.8 1.1 2.5 2.2
High-rise 0.224 0.174 0.167 0.196* 0.160
Biodiesel - - - 1.6 19 Residential
Real Estate - - - 1.6 3.2 Hospitals 0.712 0.730 0.755 0.793* 0.850
Healthcare - - - 0 8.2 Malls 0.935 0.547 0.538 0.545 0.573
Lifestyle - - - - 7.5 Hotels 0.511 0.294 0.317 0.418* 0.439
|
PT LIPPO KARARWACI TBK
Diesel 14.9 8.9 7.5 19 - Average 0.724 0.503 0.487 0.519* 0.534
Real Estate 1.9 2.7 2.6 2.8 -
Healthcare - - - 10 -
Lifestyle 13 6.2 4.9 6.2 -
CNG - - - - 1.4 GH G EMIS S ION S IN TEN S ITY
Real Estate - - - - - BY BUIL DIN G TYPE
Healthcare - - - - -
Lifestyle - - - - 1.4 Building
GHG
LPG - - - 18* 16 2019 2020 2021 2022* 2023
Intensity
Real Estate - - - 0.4* 0.4 (TCO2e/m2)
Healthcare - - - 4.1* 11
High-rise 0.049 0.038 0.037 0.043 0.036
Lifestyle - - - 14* 4.6 Residential
Natural GasGas - - - - 13 Hospitals 0.160 0.164 0.170 0.171 0.184
Real Estate - - - - - Malls 0.213 0.127 0.122 0.124* 0.128
Healthcare - - - - 8.9 Hotels 0.114 0.066 0.071 0.087 0.100
Lifestyle - - - - 3.9 Average 0.164 0.115 0.110 0.115* 0.118
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GHG EM I SS I O N S WATE R CON S UMPTION BY BUS IN ES S S EGMEN T
Water
GHG Emissions
2019 2020 2021 2022* 2023 Consumption 2019 2020 2021 2022* 2023
(ktCO2eq)
(103 m3)
Scope 1 4.56 5.00 2.65 12.27 18.59 Purchased Water 3,567* 2,470* 2,621* 3,457* 3,489
Mobile Combustion 0.51 0.58 0.63 1.36 1.22 Real Estate 271 238 256 520* 465
Real Estate 0.30 0.36 0.40 0.60 0.56 Healthcare 1,051* 1,023* 1,074* 1,508 1,360
Healthcare 0.13 0.16 0.14 0.59 0.54 Lifestyle 2,246 1,209 1,291 1,429* 1,664
Lifestyle 0.08 0.07 0.08 0.17 0.13 Rainwater 14 11 22 94* 708
Stationary Combustion 1.10 0.64 0.55 2.47 2.72 Real Estate 14 11 22 18* 588
2023 SUSTAINABILITY REPORT
Real Estate 0.14 0.18 0.19 0.21 0.09 Healthcare - - - - -
Healthcare - - - 1.00 1.61 Lifestyle - - - 76* 120
Lifestyle 0.96 0.46 0.36 1.27 1.03 Recycled 219 301 366 458* 398
Wastewater
Fugitive 2.95 3.78 1.47 8.44 14.65
Real Estate 55 49 51 78* 101
Real Estate - - - 0.27 0.22
Healthcare - - - - -
Healthcare - - - 1.15 4.20
Lifestyle 164 252 315 381* 297
Lifestyle 2.95 3.78 1.47 7.01 10.2
Scope 2 316 235 243 262 274
Electricity 316 235 243 262* 274
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PT LIPPO KARARWACI TBK
Real Estate 20 19 24 32* 33
Healthcare 75 87 90 88 92
Lifestyle 221 129 129 142* 150
Scope 3 - - - 167 316
Purchased Goods - - - 49 49
& Services
Fuel & Energy - - - - 64
Related Activity
- T&D Electricity
Losses
Waste Generated - - - - 23
in Operations
Business Travel - - - - 0.6 0.8
Airplane
Downstream - - - 117 110
Leased Asset -
Tenanted Area
Use of Sold - - - - 69
Product - Managed
Fee Building
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WAT E R WI TH D RAWA L BY S O U RC E WATE R CO NSUMPTION IN TEN S ITY BY BUIL DIN G TYPE
Water Building Water
Withdrawal 2019 2020 2021 2022 2023 Consumption 2019 2020 2021 2022 2023
(103 m3) Intensity (m3/m2)
Recycled 226 397 214 209 716 High-rise Residential 0.56 0.40 0.34 0.44* 0.56
Wastewater
Hospitals 2.23* 1.94* 2.02* 2.84 2.56
Rainwater 294 223 379 410 530
Malls 2.08 1.27 1.32 1.29* 1.44
Purchased 19,899 19,840 17,954 18,857 19,327 Hotels 1.94 1.14 1.51 2.10* 2.25
Water
Average 1.89* 1.29* 1.31* 1.58* 1.61
2023 SUSTAINABILITY REPORT
WA STEWAT E R G E N E R AT E D BY B U S IN E SS SE G ME NT WA STEWATE R T R EATED BY WATER TR EATMEN T DIVIS ION
Water 2022 2023 Treated Wastewater
Withdrawal 2022 2023
(103 m3)
(103 m3) Discharged Recycled / Total Discharged Recycled / Total
Reused Reused
Real Estate 393 153 546 419 691 1,110 Recycled/Reused 1,043 2,044
Healthcare 1,020 41 1,061 770 126 896 Discharged 3,120 2,167
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Lifestyle 1,128 589 1,717 1,175 640 1,815 Total 4,163 4,211
PT LIPPO KARARWACI TBK
Total 2,541 783 3,324 2,364 1,457 3,821
WA STE M A N AG E M E N T BY S E CTO R
NON-HAZARD OUS (To ns) HA ZA R DOU S (Ton s )
Business
Year
Segments
Disposed Diverted Disposed Diverted
Real Estate 33,662 1,775 616 -
Healthcare 2,697 182 1,342 35
2023
Lifestyle 7,987 1,202 17 2
Total 44,346 3,159 1,975 37
Real Estate 36,240 21 516 -
2022
Healthcare 2,615 51 1,347 11
Lifestyle 11,865 1,352 1 -
Total 50,720 1,424 1,864 11
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WORKFORCE DATA
RESTATEMENTS (*)
• Restatement of 2022 data on non-employee workers for Real Estate and Lifestyle segments following further
data validations conducted in 2023.
EMPLOYM EN T BY B U S IN E S S S E G M E NT NO N- E MPLOYE E WOR KER BY BUS IN ES S S EGMEN T
Year Real Estate Healthcare Lifestyle Total Year Real Estate Healthcare Lifestyle Total
2023 981 14,142 2,007 17,130 2023 7,076 2,142 6,369 15,587
2022 968 13,461 1,820 16,249 2022 7,269* 2,655 5,656* 15,580*
2021 956 13,354 1,762 16,072
E MPLOYME NT BY R EGION
2023 SUSTAINABILITY REPORT
EMPLOYM EN T BY E M PLOYE E STATU S
Bali, Nusa
Business
Java Kalimantan Sumatra Sulawesi Tenggara,
Business Permanent Contract Segment
Maluku, Papua
Segments Employees Employees
Real Estate 867 4 11 79 20
2023 15,549 1,581
Healthcare 8,679 805 1,391 1,225 2,042
Real Estate 823 158
Lifestyle 1,349 98 227 116 217
Healthcare 13,851 291
Total 10,895 907 1,629 1,420 2,279
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Lifestyle 875 1,132
PT LIPPO KARARWACI TBK
2022 14,947 1,302
Real Estate 856 112 E MPLOYME NT BY EDUCATION QUAL IF ICATION S
Healthcare 13,274 187
Lifestyle 817 1,003 High School Undergraduate Postgraduate
Year Certification
Diploma
Degree Degree Total
2021 13,341 2,731
Real Estate 767 189 2023 2,503 4,641 9,512 474 17,130
Healthcare 11,748 1,606 2022 2,188 4,784 8,880 397 16,249
Lifestyle 826 936 2021 2,195 4,991 8,489 397 16,072
EMPLOYM EN T P O S IT IO N BY N AT IO N A LI TY
Executive Manager Supervisor Staff Non-Staff
Business
Segments
Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign
Real Estate 13 3 171 5 338 0 439 0 12 0
Healthcare 62 4 226 1 666 1 12,570 1 611 0
Lifestyle 1 1 251 1 349 0 1,306 0 98 0
93
Total 76 8 648 7 1,353 1 14,315 1 721 0
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EMPLOYEE PO S IT IO N BY G E N D E R
Executive Manager Supervisor Staff Non-Staff
Year
Female Male Total Female Male Total Female Male Total Female Male Total Female Male Total
2023 33 51 84 264 391 655 600 754 1,354 9,732 4,584 14,316 312 409 721
2022 31 49 80 250 376 626 546 668 1,214 9,287 4,279 13,566 334 429 763
2021 6 29 35 270 396 666 1,399 1,091 2,490 8,073 3,497 11,570 622 689 1,311
EMPLOYEE PO S IT IO N BY AG E G R O U P
2023 SUSTAINABILITY REPORT
Executive Manager Supervisor Staff Non-Staff
Year
<30 30-50 >50 Total <30 30-50 >50 Total <30 30-50 >50 Total <30 30-50 >50 Total <30 30-50 >50 Total
2023 0 48 36 84 18 528 109 655 249 1,012 93 1,354 7,621 6,426 269 14,316 238 439 44 721
2022 0 45 35 80 23 496 107 626 219 917 78 1,214 7,414 5,984 258 13,656 258 463 42 763
2021 0 14 21 35 6 521 139 666 737 1,604 149 2,490 7,010 4,389 171 11,570 585 671 55 1,311
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EM PLOYEE BY G E N D E R E MPLOYE E BY AG E G ROUP
PT LIPPO KARARWACI TBK
Year Female Male Total Year <30 30-50 >50 Total
2023 10,941 6,189 17,130 2023 8,126 8,453 551 17,130
2022 10,418 5,801 16,219 2022 7,914 7,815 520 16,219
2021 10,370 5,702 16,072 2021 8,338 7,199 535 16,072
PA R E N TA L LE AVE
Staff entitled to parental leave Staff who returned to work after Staff who returned to work after parental
Staff who took to parental leave
parental leave leave (12 month retention)
Business
Segments
Female Male Female Male Female Male Female Male
Real Estate 12 34 12 34 12 34 7 25
Lifestyle 600 268 600 268 597 268 550 250
Healthcare 37 28 37 28 37 28 30 24
Total 649 330 649 330 646 330 587 299
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R E TU R N TO WO R K & R E T E N T IO N RAT E S
Return to work rates Retention rates
Business Segments
Female Male Female Male
Real Estate 100.0% 100.0% 58.3% 73.5%
Lifestyle 99.5% 100.0% 91.7% 93.3%
Healthcare 100.0% 100.0% 81.1% 85.7%
NEW HI R E BY G E N D E R E MPLOYE E TUR N OVER BY GEN DER
2023 SUSTAINABILITY REPORT
Year Female Male Total Year Female Male Total
2023 329 503 832 2023 1,051 581 1,632
2022 1,693 1,166 2,859 2022 1,353 797 2,150
2021 925 1,971 2,896 2021 1,209 753 1,962
NEW HI R E BY AG E G RO U P E MPLOYE E TUR N OVER BY AGE GR OUP
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PT LIPPO KARARWACI TBK
Year <30 30-50 >50 Total Year <30 30-50 >50 Total
2023 473 344 15 832 2023 899 713 20 1,632
2022 2,123 698 38 2,859 2022 1,394 697 59 2,150
2021 2,373 487 36 2,896 2021 1,178 679 105 1,962
NEW HI R E BY B U S IN E S S S E G M E N T E MPLOYE E TUR N OVER BY BUS IN ES S S EGMEN T
Year Real Estate Healthcare Lifestyle Total Year Real Estate Healthcare Lifestyle Total
2023 224 145 463 832 2023 135 1,180 317 1,632
2022 258 2,074 527 2,859 2022 170 1,689 291 2,150
2021 242 2,274 380 2,896 2021 114 1,518 330 1,962
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NU M BER OF H O U RS WO RK E D
Year Employees Non-Employee Workers
2023 35,130,984 34,374,426
2022 34,628,528 31,291,568
OCCU PATI ON AL H E ALT H & S A F E TY
2022 2023
OHS Metrics
2023 SUSTAINABILITY REPORT
Employees Non-Employee Workers Employees Non-Employee Workers
Fatality 0 1 1 1
High Consequence Injuries 0 0 0 0
Number of Recordable Injuries 3 20 6 45
Lost Time Injuries (LTI) 1 6 2 13
Medical Treatment Cases (MTC) 2 14 4 32
Total Recordable Injury Frequency Rate (TRIFR) 0.09 0.64 0.17 1.31
Fatality Rate 0 0.03 0.03 0.03
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PT LIPPO KARARWACI TBK
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S C E N A R I O A N A LY S I S
As part of our high-level scenario analysis, we examined Our properties may face increased occurrences of flooding Droughts: Indonesia faces significant water stress and
the potential impact of each physical and transition risk due to high rainfall events experienced in Indonesia. a notable risk of drought, as illustrated in the diagram
in Indonesia under RCP 2.6 and RCP 8.5 scenarios, based As a result, this could cause business interruptions and provided. Prolonged periods of abnormally low rainfall
on 2030 and 2100 time horizons. Our detailed findings are infrastructure damage, leading to higher financial costs. may lead to droughts and a shortage of water. This affects
below, which we will continue to review and refine. Flooding could also potentially endanger the safety of our our water treatment businesses, and also poses significant
stakeholders at our properties. social impacts on our stakeholders as disruptions in water
2023 SUSTAINABILITY REPORT
PHYSI CA L R I S K IM PACT supplies can impact their health and safety.
Extreme waves & coastal abrasion (rising sea levels):
Extreme variability in weather patterns and
Rising sea levels can lead to the erosion of our land bank Heat stress: We expect an increase in operating costs
precipitation patterns: Indonesia ranks higher than the
and damage/devaluation of properties near coastal due to the heightened demand for cooling systems. As
global average in terms of natural hazards and exposure
areas, and increased costs from investment in coastal temperatures increase, the need for effective climate
on the INFORM Risk Scale. This is primarily attributed
infrastructure adaptation measures. As shown in the control within our facilities becomes more pronounced,
to the distinctive characteristics of its landscape and
figures below, Indonesia is at risk for sea level rise, even in resulting in increased energy consumption and operational
geographical location which exposes it to various
a 2.0°C scenario where light blue areas will be under sea expenses. Moreover, the surge in temperatures could
|
environmental challenges. These make it susceptible
level. The location of our properties suggests that only potentially lead to reduced revenue and productivity within
PT LIPPO KARARWACI TBK
to extreme weather events, including floods, landslides,
a limited number of our developments will experience our workforce. The link between elevated temperatures
and coastal flooding. The complex interplay of these
significant impacts from sea level rise. and health concerns may contribute to a higher rate of
geographical factors enhances the country’s vulnerability
absenteeism among employees. Heat-related illnesses
to natural hazards, leading to a higher risk profile compared
Landslides: Historically, landslides are the third most and discomfort may prompt more frequent sick leaves,
to the global average on the INFORM Risk Scale. Changes
frequent natural hazard in Indonesia. 17
Heavy torrential thereby impacting the overall productivity levels of our
in precipitation patterns, including prolonged rainy
rain or earthquakes may lead to decreased asset values workforce.
seasons and the presence of tornadoes or typhoons, can
and result in costly repairs from damage to property,
lead to damage to property and infrastructure, disruption
infrastructure and landbank. Climate change is expected
of supply chains, and business interruption. This results in
to impact the stability of slopes and bedrock by influencing
Hazard & Exposure
higher costs incurred, as well as posing health and safety
Tropical Cyclone
precipitation patterns and/or temperature variations.
Coastal Flood
risks to our stakeholders.
Earthquake
While landslides have been infrequent in the past, we
River Flood
Tsunami
Natural
anticipate an increase under an RCP 8.5 scenario.
Flooding: It is predicted that in Indonesia, under a high
Country Risk Class
emissions scenario, on average 4,215,700 individuals per
Very Low-Very High 0-10
year may be impacted by flooding caused by sea level rise
Indonesia Medium 6.7 7.3 8.9 8.3 9.3 1.5 1.5
by 2100. We have also identified certain property locations
97 Global Average 3.3 3.9 3.7 4.5 2.7 1.6 1.6
17
https://climateknowledgeportal.worldbank.org/country/indonesia/vulnerability
affected by 100 year flood zones.
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LO N G -T ERM S EA L EVEL OUTCOMES +2 .0° C VS . + 4 .0° C TR AN S ITION R IS K IMPACT
Disruption of new (low emission) technology:
Technological advancements can accelerate the shift to
a low-carbon economy, posing a challenge to businesses
relying on outdated fossil-fuel technologies. This may
lead to additional costs from switching to more energy-
efficient equipment as well as low-carbon processes
and materials. With the increasing awareness of green
and energy efficient buildings, we need to monitor the
2023 SUSTAINABILITY REPORT
emergence of low-emission technologies that may present
decarbonization opportunities for us.
Below tideline after
Greater expectations and demand from customers and
4.0 C of global warming
o 2.0oC of global warming
investors for more sustainable products and services:
There is an increasing market trend that reveals customers
I N DON ESIA WATER RISK IND ICATOR 18 are increasingly aware of ethical and sustainable
purchasing practices. This shift is driven by a heightened
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PT LIPPO KARARWACI TBK
awareness of environmental and social concerns, coupled
with a preference for making purchasing decisions that
align with values such as sustainability, social responsibility,
and ethical production. Failure to meet industry standards
and the expectations of stakeholders could result in
weaker demand as well as loss of reputation and investor
confidence.
Since the establishment of the Green Building Council
Indonesia (GBCI) in 2009, more properties are pursuing
voluntary green building certifications such as Greenship
certification and EDGE certification. It is observed that the
majority of green building certifications are in commercial
Drought risk
properties rather than residential properties. Therefore, the
Low Low-medium Medium Medium-high High present effect of this risk on our real estate business is less
(0.0-0.2) (0.2-0.4) (0.4-0.6) (0.6-0.8) (0.8-1.0)
pronounced, given our emphasis on residential products.
98 18
https://www.wri.org/applications/aqueduct/country-rankings/?country=IDN&indicator=drr
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CONTENT INDEX
GLOBA L R E P O RT IN G IN IT IAT IVE ( G RI)
Statement of use Lippo Karawaci has reported in accordance with the GRI Standards for the period 1 Jan 2023 to 31 Dec 2023.
GRI 1 used GRI 1: Foundation 2021
Reason for omission Not Applicable, Legal Prohibitions, Confidentiality Constraints, Information Unavailable/Incomplete
2023 SUSTAINABILITY REPORT
Page number(s)
GRI Standard Disclosure Reasons for Omission SGX Requirement
and/or URL(s)
G E NE RA L D IS C LO S UR E S
GRI 2: General Disclosures 2021 2-1 Organizational details 7-11
2-2 Entities included in the organization’s sustainability reporting 4-11
2-3 Reporting period, frequency and contact point 4-6
2-4 Restatements of information 88, 90, 93
2-5 External assurance 6
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2-6 Activities, value chain and other business relationships 8-11
PT LIPPO KARARWACI TBK
2-7 Employees 67-69
2-8 Workers who are not employees 67
2-9 Governance structure and composition 20, 80-82 PN7.6-3.1
2-10 Nomination and selection of the highest governance body 2023 Annual Report (p.162-163, 191-192)
2-11 Chair of the highest governance body 2023 Annual Report (p.70-80)
2-12 Role of the highest governance body in overseeing the management of impacts 20, 80-82
2-13 Delegation of responsibility for managing impacts 20, 80-82
2-14 Role of the highest governance body in sustainability reporting 20
2-15 Conflicts of interest 83
2-16 Communication of critical concerns 80-83
2-17 Collective knowledge of the highest governance body 2023 Annual Report (p.173-175, 198-200)
2-18 Evaluation of the performance of the highest governance body 2023 Annual Report (p.201-202)
2-19 Remuneration policies 2023 Annual Report (p.200)
2-20 Process to determine remuneration 2023 Annual Report (p.189-190)
2-21 Annual total compensation ratio Confidentiality constraints
2-22 Statement on sustainable development strategy 12-13, 19, 28-29, 52
2-23 Policy commitments 83-85
99
2-24 Embedding policy commitments 83-85
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Page number(s)
GRI Standard Disclosure Reasons for Omission SGX Requirement
and/or URL(s)
G E NE RA L D IS C LO S UR E S
GRI 2: General Disclosures 2021 2-25 Processes to remediate negative impacts 20, 80-82
2-26 Mechanisms for seeking advice and raising concerns 6, 20, 47-50, 80-83
2-27 Compliance with laws and regulations 83-85
2-28 Membership associations 11
2-29 Approach to stakeholder engagement 22-23
2-30 Collective bargaining agreements 71
M AT E RIA L TO PICS
2023 SUSTAINABILITY REPORT
GRI 3: Material Topics 2021 3-1 Process to determine material topics 21-22
3-2 List of material topics 22 PN7.6-4.4.1. a
EN H A N CIN G QUA L ITY OF L IFE
Material Topics: Economic Performance
GRI 3: Material Topics 2021 3-3 Management of material topics 35-39 PN7.6-4.1.c;
PN7.6-4.1.d;
LR711B-1.b;
LR711B-1.c
GRI 201: Economic 201-1 Direct economic value generated and distributed 35
Performance 2016
201-2 Financial implications and other risks and opportunities due to climate change 28-29
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PT LIPPO KARARWACI TBK
201-3 Defined benefit plan obligations and other retirement plans 68
201-4 Financial assistance received from government 38
CA RIN G FOR OU R ENVIRON MEN T
Material Topics: Energy
GRI 3: Material Topics 2021 3-3 Management of material topics 52-56 PN7.6-4.4.1. c.
PN7.6-4.4.1. d.
PN7.6-4.4.
LR711B-1 b & c
GRI 302: Energy 2016 302-1 Energy consumption within the organization 54
302-2 Energy consumption outside of the organization 55-56
302-3 Energy intensity 54
303-4 Reduction of energy consumption 52-53
303-5 Reductions in energy requirements of products and services 52-54
100
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Page number(s)
GRI Standard Disclosure Reasons for Omission SGX Requirement
and/or URL(s)
CA RIN G FOR OU R ENVIRON MEN T
Material Topics: Emissions
GRI 3: Material Topics 2021 3-3 Management of material topics 52-56 PN7.6-4.4.1. c.
PN7.6-4.4.1. d.
PN7.6-4.4.
LR711B-1 b & c
GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions 55-56
305-2 Energy indirect (Scope 2) GHG emissions 55-56
305-3 Other indirect (Scope 3) GHG emissions 55-56
305-4 GHG emissions intensity 56
2023 SUSTAINABILITY REPORT
305-5 Reduction of GHG emissions 55-56
305-6 Emissions of ozone-depleting substances (ODS) 55-56, 89
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions We do not currently
report this but will
consider doing so in
the future
Material Topics: Water and Effluents
GRI 3: Material Topics 2021 3-3 Management of material topics 57-61 PN7.6-4.1.c;
PN7.6-4.1.d;
LR711B-1.b;
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LR711B-1.c
PT LIPPO KARARWACI TBK
GRI 303: 303-1 Interactions with water as a shared resource 57-61
Water and Effluents 2018
303-2 Management of water discharge-related impacts 61
303-3 Water withdrawal 57-60
303-4 Water discharge 61
303-5 Water consumption 57-58
Material Topics: Waste
GRI 3: Material Topics 2021 3-3 Management of material topics 62-65 PN7.6-4.4.1. c.
PN7.6-4.4.1. d.
PN7.6-4.4.
LR711B-1 b & c
GRI 306: Waste 2020 306-1 Waste generation and significant waste-related impacts 62-64
306-2 Management of significant waste-related impacts 62-65
306-3 Waste generated 62, 65
306-4 Waste diverted from disposal 62-64
306-5 Waste diverted to disposal 62-64
101
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Page number(s)
GRI Standard Disclosure Reasons for Omission SGX Requirement
and/or URL(s)
INVESTIN G IN OU R PEOPL E
Material Topics: Employment & Rights
GRI 3: Material Topics 2021 3-3 Management of material topics 67-69 PN7.6-4.4.1. c.
PN7.6-4.4.1. d.
PN7.6-4.4.
LR711B-1 b & c
GRI 401: Employment 2016 401-1 New employee hires and employee turnover 68
401-2 Benefits provided to full-time employees that are not provided to temporary 68
or part-time employees
401-3 Parental leave 68
2023 SUSTAINABILITY REPORT
GRI 405: Diversity and 405-1 Diversity of governance bodies and employees 70-71
Equal Opportunity 2016
405-2 Ratio of basic salary and remuneration of women to men Confidentiality constraints
GRI 406: Non-discrimination 2016 406-1 Incidents of discrimination and corrective actions taken 71
GRI 407: Freedom of 407-1 Operations and suppliers in which workers’ rights to exercise freedom of 71
Association and Collective association or collective bargaining may be violated
Bargaining 2016
GRI 208: Child Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child labor 71
GRI 409: Forced or 409-1 Operations and suppliers considered to have significant risk for incidents of 71
compulsory labor 2016 forced or compulsory labor
Material Topics: Occupational Health & Safety
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PT LIPPO KARARWACI TBK
GRI 3: Material Topics 2021 3-3 Management of material topics 72-74 PN7.6-4.4.1. c.
PN7.6-4.4.1. d.
PN7.6-4.4.
LR711B-1 b & c
GRI 403: Occupational Health 403-1 Occupational health and safety management system 72-73
and Safety 2018
403-2 Hazard identification, risk assessment, and incident investigation 72-73
403-3 Occupational health services 72-73
403-4 Worker participation, consultation, and communication on occupational 72-73
health and safety
403-5 Worker training on occupational health and safety 73
403-6 Promotion of worker health 72-73
403-7 Prevention and mitigation of occupational health and safety impacts 72-73
directly linked by business relationships
403-8 Workers covered by an occupational health and safety management system 72-73
403-9 Work-related injuries 74
403-10 Work-related ill health 74
102
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Page number(s)
GRI Standard Disclosure Reasons for Omission SGX Requirement
and/or URL(s)
INVESTIN G IN OU R PEOPL E
Material Topics: Training & Education
GRI 3: Material Topics 2021 3-3 Management of material topics 75-78
GRI 404: Training and 404-1 Average hours of training per year per employee 76
Education 2016
404-2 Programs for upgrading employee skills and transition assistance programs 75-78
404-3 Percentage of employees receiving regular performance and career 75
development reviews
CH A MPION IN G B EST PRACTICES
Material topics: Anti-Corruption
2023 SUSTAINABILITY REPORT
GRI 3: Material Topics 2021 3-3 Management of material topics 83-85 PN7.6-4.4.1. c.
PN7.6-4.4.1. d.
PN7.6-4.4.
LR711B-1 b & c
GRI 205: Anti-corruption 2016 205-1: Operations assessed for risks related to corruption 83
205-2: Communication and training about anti-corruption policies and procedures 83
205-3: Confirmed incidents of corruption and actions taken 83
Material Topics: Anti-Competitive Behaviour
GRI 3: Material Topics 2021 3-3 Management of material topics 83-85 PN7.6-4.4.1. c.
PN7.6-4.4.1. d.
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PN7.6-4.4.
PT LIPPO KARARWACI TBK
LR711B-1 b & c
GRI 206: Anti-competitive 206-1: Confirmed incidents of anti-competitive behavior and actions taken 84
Behaviour 2016
103
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U N I T E D NATI O N S G LO B A L CO M PACT (UNG C)
Principles Page Reference / Remarks
H U MA N RIGH TS
Principle 1 Businesses should support and respect the protection of internationally proclaimed human rights 71, 83-85
Principle 2 Make sure that they are not complicit in human rights abuses 83-85
L A B OR
Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining 71
Principle 4 Elimination of all forms of forced and compulsory labor 71, 83-85
2023 SUSTAINABILITY REPORT
Principle 5 Effective abolition of child labor 71, 83-85
Principle 6 Elimination of discrimination in respect of employment and occupation 70-71, 83
ENVIRON MEN T
Principle 7 Businesses should support a precautionary approach to environmental challenges 31-33
Principle 8 Undertake initiatives to promote greater environmental responsibility 29, 52-53, 59-60, 64
Principle 9 Encourage the development and diffusion of environmentally friendly technologies 29, 32-33, 52-53, 58
A N TI- CORRU PTION
Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery 83-85
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TA S K FOR C E O N C L IM AT E -RE L AT E D DI SCLO SURE S (TCFD )
TFCD Recommendation Disclosure Page Number(s)
Disclose the organization’s governance Describe the board’s oversight of climate-related risks and opportunities 28
around climate-related risks and
opportunities Describe management’s role in assessing and managing climate-related risks and 28
opportunities
Disclose the organization’s governance Describe the climate-related risks and opportunities the organization has identified over 28-31
around climate-related risks and the short, medium, and long term
opportunities
Describe the impact of climate-related risks and opportunities on the organization’s 28-31
businesses, strategy, and financial planning
Describe the resilience of the organization’s strategy, taking into consideration different 28-31
climate-related scenarios, including a 2°C or lower scenario
2023 SUSTAINABILITY REPORT
Disclose how the organization identifies, Describe the organization’s processes for identifying and assessing climate-related risks 31-33
assesses, and manages climate-related risks
Describe the organization’s processes for managing climate-related risks 31-33
Describe how processes for identifying, assessing, and managing climate-related risks are 31-33
integrated into the organization’s overall risk management
Disclose the metrics and targets used Disclose the metrics used by the organization to assess climate-related risks and 33
to assess and manage relevant climate- opportunities in line with its strategy and risk management process
related risks and opportunities where such
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and 33
information is material.
the related risks.
Describe the targets used by the organization to manage climate-related risks and 33
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opportunities and performance against targets
PT LIPPO KARARWACI TBK
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SUSTA I NA BI L ITY ACCO U N T IN G STA N DA RDS B OA RD (SA SB ) – RE A L E STATE SE CTO R DIS CLOS UR E
SASB Sustainability Disclosure SASB Code Accounting Metric Property Subsector Page Reference / Remarks
E NE RG Y M A NAG E M E N T IF-RE-130a.1 Energy consumption data coverage as Real Estate 100%
a percentage of floor area, by property Healthcare 100%
subsector (%) Lifestyle 100%
IF-RE-130a.2 Total energy consumed by portfolio area with Real Estate 158 x 103 GJ
data coverage, by property subsector (GJ) Healthcare 452 x 103 GJ
Lifestyle 707 x 103 GJ
Total energy consumed by percentage grid Real Estate 94%
electricity, by property subsector (%) Healthcare 92%
Lifestyle 97%
2023 SUSTAINABILITY REPORT
Total energy consumed by percentage Real Estate 0.6%
renewable, by property subsector (%) from Healthcare 0.5%
biodiesel B30 only Lifestyle 0.3%
IF-RE-130a.3 Like-for-like percentage change in energy Real Estate +0.6%
consumption for the portfolio area with data Healthcare +7.2%
coverage, by property subsector (%) Lifestyle +5.2%
IF-RE-130a.4 Percentage of eligible portfolio that has an N/A in Indonesia
energy rating, by property subsector (%)
Percentage of eligible portfolio that is N/A in Indonesia
certified to ENERGY STAR®, by property
subsector (%)
IF-RE-130a.5 Description of how building energy “Energy Efficiency & Emissions” Page 52-53
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PT LIPPO KARARWACI TBK
management considerations are integrated
into property investment analysis and
operational strategy
WAT E R M A NAG EM E N T IF-RE-140a.1 Water withdrawal data coverage as a Real Estate 100%
percentage of total floor area, by property Healthcare 100%
subsector (%) Lifestyle 100%
Water withdrawal data coverage as a Real Estate 100%
percentage of total floor area, in regions Healthcare 100%
with High or Extremely High Baseline Water Lifestyle 100%
Stress19, by property subsector (%)
Total water withdrawn by portfolio area with Real Estate 1.15 x 106 m3
data coverage, by property subsector (m3) Healthcare 1.36 x 106 m3
Lifestyle 2.08 x 106 m3
IF-RE-140a.2 Total water withdrawn by percentage in Real Estate 100%
regions with High or Extremely High Baseline Healthcare 100%
Water Stress20, by property subsector (%) Lifestyle 100%
IF-RE-140a.3 Like-for-like percentage change in water Real Estate -3%
withdrawn for portfolio area with data Healthcare -10%
coverage, by property subsector20 (%) Lifestyle +10%
IF-RE-140a.4 Description of water management risks and “Optimizing Water Usage” Page 58
discussion of strategies and practices to
mitigate those risks
106 19
We operate in regions within Indonesia which are generally assessed to experience “high” to “extremely high” water stress according to the World Resources Institute’s Aqueduct Water Risk Atlas.
20
The like-for-like percentage change excludes San Diego Hill's water withdrawal data, which was only included in 2023.
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SASB Sustainability Disclosure SASB Code Accounting Metric Property Subsector Page Reference / Remarks
M A NAG E M E NT O F T E N A N T IF-RE-410a.1 Percentage of new leases that contain a cost Real Estate 0%
S U STA INA BILITY I M PACTS recovery clause for resource efficiency related Healthcare NA
capital improvement, by property subsector (%) Lifestyle 0%
Associated leased floor area, of new leases that Real Estate 0%
contain a cost recovery clause for resource Healthcare NA
efficiency related capital improvements, by Lifestyle 0%
property subsector (sq. ft)
IF-RE-410a.2 Percentage of tenants that are separately Real Estate 100%
metered or sub-metered for grid electricity Healthcare 100%
consumption by property subsector (%) Lifestyle 100%
Percentage of tenants that are separately Real Estate 100%
metered or sub-metered for water withdrawals, Healthcare 100%
by property subsector (%) Lifestyle 100%
2023 SUSTAINABILITY REPORT
IF-RE-410a.3 Discussion of approach to measuring, “Energy Efficiency & Emissions” Page 52-56
incentivizing, and improving sustainability
impacts of tenants
C LIM AT E C HA NG E AN D ADA PTAT I O N IF-RE-130a.5 Area of properties located in 100-year flood “Scenario Analysis” Page 97
zones, by property subsector
Description of climate change risk exposure “Strategy” Pages 28-33
analysis, degree of systematic portfolio
exposure, and strategies for mitigating risks
SASB - Real Estate Sector Disclosure (Activity Metrics)
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PT LIPPO KARARWACI TBK
SASB Code Activity Metric Property Subsector 2022
IF-RE-000.A Number of assets, by property subsector Real Estate21 28
Healthcare 40
Lifestyle 43
IF-RE-000.B Leasable floor area, by property subsector (sq. ft) Real Estate22 10,818,407 sq. ft
Healthcare N/A
Lifestyle23 18,024,491 sq. ft
IF-RE-000.C Percentage of indirectly managed assets, by property Real Estate N/A
subsector (%) Healthcare N/A
Lifestyle N/A
IF-RE-000.D Average occupancy rate, by property subsector (%) Real Estate Undisclosed
Healthcare Undisclosed
Lifestyle Undisclosed
21
The Real Estate segment comprises high-rise residential buildings, townships, water treatment plants, and corporate offices. Unlike in the Healthcare and Lifestyle segments where each managed “asset” is a distinct property, our Real Estate segment manages
multiple assets and public/residential/commercial areas within each township. As such, for ease of reporting, we have consolidated multiple assets/areas within each township and classified them as a single “asset”.
22
Based on residential area within the high-rise residential buildings under our scope of reporting.
107 23
Based on net leasable area within the malls under our scope of reporting.
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WOR LD E CON O M IC FO RU M ( WE F ) STA K E HO LDE R CA PI TA LI SM ME TRI CS
Theme Core Metrics and Disclosures Page Reference/Remarks
PRINC IPA L O F GOVE R N AN C E
Governing purpose Setting purpose 7
Quality of governing body Governance body composition 20, 80
Stakeholder engagement Material issues impacting stakeholders 21-23
Ethical behaviour Anti-corruption 83
Protected ethics advice and reporting mechanisms 83
Risk and opportunity oversight Integrating risk and opportunity into business process 28-33
2023 SUSTAINABILITY REPORT
PRO S PE RITY
Employment and wealth generation Absolute number and rate of employment 67-68
Economic contribution 35-39
Financial investment contribution 36-39
Innovation of better products and services Total R&D expenses 44-50
Community and social vitality Total tax paid 15
PE O PLE
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Dignity and equality Diversity and inclusion 70-71
PT LIPPO KARARWACI TBK
Pay equality 71
Wage level 71
Risk for incidents of child, forced or compulsory labor 71, 83-85
Health and well-being Health and safety 72-74
Skills for the future Training provided 41, 72-78
PL A NE T
Climate change Greenhouse gas emissions 55-56
TCFD implementation 28-33
Nature loss Land use and ecological sensitivity 59
Freshwater availability Water consumption and withdrawal in water-stressed areas 57-61
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F IN A NC I A L SE R VIC E S AUT H O RITY O F I NDO NE SI A (OJK ) – P OJK NO.5 1 /P OJK .03/201 7
Index Description Page
S U STAI N A B I L I TY ST R AT E GY
A.1 Explanation on Sustainability Strategies 12-13, 19
Overview
OVE of Sustainability
R VI EW O F S U STA IAspects Performance
N A B IL ITY A S PECTS PERFORMA N CE
B.1 Economy Aspects 15
B.2 Environmental Aspects 15
B.3 Social Aspects 16
Company
CO M PANProfile
Y PR O F I L E
2023 SUSTAINABILITY REPORT
C.1 Vision, Mission, Sustainable Values 7
C.2 Company Address 6
C.3 Business Scale:
a. Total assets or assets capitalization and total liabilities; 35
b. Total employee based on gender, position, age, education and employment status; 67-68, 70-71
c. Percentage of share ownership; and 11
d. Operational area. 8-9
C.4 Product, Service and Business Activities 8
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PT LIPPO KARARWACI TBK
C.5 Member Association 11
C.6 Significant Changes 7
D I R E CTO R EXPL A N AT I O N
D.1 Director Explanation 12-13
S U STAI N A B L E CO R PO R AT E GOVERN A N CE
E.1 Person in Charge Responsibility for Sustainable Finance 20
E.2 Sustainable Finance Competency Development 20
E.3 Sustainable Finance Risk Assessment Implementation 20, 28
E.4 Stakeholders Relations 22-23
E.5 Sustainable Finance Implementation Problems 20, 80
S U STAI N A B L E PE R FO R M A N CE
F.1 The Activities of Building a Culture of Sustainability 40-43, 72-74, 83-85
E CO N O M I C PE R FO R M A N C E
F.2 Comparison of Production Targets and Performance, Portfolio, Financial Targets, or Investment, Revenue and Profit 35
F.3 Comparison of Portfolio Targets and Performance, Financing Targets, or Investments in Financial Instruments or Projects in Line With the 36-37, 53
Implementation of Sustainable Finance
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Index Description Page
E NVI R O N M E N TA L PE R FO R MA N CE
F.4 Environment Cost Incurred 50
M AT E R I A L AS PE CT
F.5 Use of Environmentally Friendly Materials 65
E N E R G Y A S PE CT
F.6 The Amount and Intensity of Energy Used 54-56
F.7 Efforts and Achievement of Energy Efficiency Including Use of Renewable Energy Sources 52-53
WAT E R AS PE CT
2023 SUSTAINABILITY REPORT
F.8 Water Used 57-61
B I O D IVE R S I TY A S PE CT
F.9 Impacts from Operational Areas Close to or in Conservation Areas or Having Biodiversity 51
F.10 Biodiversity Conservation Efforts 51
E M I S S I O N A S PE CT
F.11 The Amount and Intensity of Emissions Produced by Type 55-56
F.12 Efforts and Achievement Emission Reduction Carried Out 52-53
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PT LIPPO KARARWACI TBK
WAST E AN D E F F LU E N T AS PECT
F.13 The Amount of Waste and Effluent Produced by Type 61-65
F.14 Mechanism of Waste and Effluent Management 61-65
F.15 Spills that Occur (if any) 61-65
E NVI R O N M E N TA L CO M PL A IN T A S PECT
F.16 The Amount and Material of Environmental Complaints Received and Resolved 62
S O C I A L AS PE CT
F.17 Commitment to Provide Services for Equivalent Products and/or Services to Consumers 47
E M PLOYM E N T AS PE CT
F.18 Equality of Employment Opportunities 67-71
F.19 Child Labor and Forced Labor 71
F.20 The Regional Minimum Wage 71
F.21 Decent and Safe Working Environment 72-74
F.22 Training and Capacity Building of Employees 75-78
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Index Description Page
S O C I E TY AS PE CT
F.23 Operational Impacts to the Surrounding Community 40-43
F.24 Public Complaints 47
F.25 Environmental and Social Responsibility Activities 40-43
R E S P O N S I B I L I T I E S FO R D EVELOPIN G S U STA IN A B L E PROD U CTS /S ERVICES
F.26 Innovation and Development of Sustainable Financial Products and/or Services 44-46
F.27 Products/Services that have been Evaluated for Safety for Customers 49-50
F.28 Products/Service Impacts 49-50
2023 SUSTAINABILITY REPORT
F.29 Number of Products Recalled 49-50
F.30 Customer Satisfaction Survey of Sustainable Finance and/or Services 47-49
OT H E R S
G.1 Written Verification from an Independent Party (if any) 6
G.2 Feedback Form 6
G.3 Feedback on Previous Year’s Sustainability Report 6
G.4 Disclosure List Based on POJK No.51/POJK.03/2017 regarding the Implementation of Sustainable Finance for Financial Services Institutions, Listed 109-111
Companies and Public Companies
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PT Lippo Karawaci Tbk
Menara Matahari, 22nd Floor
Jl. Boulevard Palem Raya No.7, Lippo Karawaci Central, Tangerang, Banten, Indonesia 15811
Tel: +62 21 2566 9000 | Fax: +62 21 2566 9098 | sustainability@lippokarawaci.co.id | www.lippokarawaci.co.id
Names mentioned 26 people and organisations named in the text · linked when the evidence is strong
unresolved
org
LIPPO KARARWACI TBK
p.1 ×104
unresolved
org
PT Gowa Makassar
p.4
unresolved
org
PT Siloam International
p.4 ×2
unresolved
org
Hospitals Tbk
p.4 ×2
unresolved
org
PT Lippo Malls Indonesia
p.4 ×2
unresolved
org
Financial Services Authority
p.5 ×2
unresolved
org
Indonesia Stock Exchange
p.5 ×3
unresolved
org
PT Gowa Makassar Tourism
p.8
unresolved
org
W N EO P SH LE Development Tbk
p.8
unresolved
org
PT Aryaduta International Management
p.8
unresolved
org
PT San Diego Hills Memorial Park Lippo Malls
p.8
unresolved
org
PT Inti Anugerah Pratama
p.11
unresolved
org
Ministry of Environment and Forestry
p.39
unresolved
org
MarkPlus Inc
p.48
unresolved
org
Ministry of Manpower
p.50 ×2
unresolved
org
PT Exelly Elektrik Indonesia
p.52
unresolved
org
PT Exelly Elektrik
p.53
unresolved
org
PT IO N
p.54 ×2
unresolved
org
Ministry of Energy and Mineral Resources of Indonesia
p.55
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