SUSTAINABILITY

AEI includes ESG considerations in its every action. AEI dedication to protecting the environment and improving environmental performance through the constant implementation of green initiatives is demonstrated by integrated mining operations that take into account the ideals of good mining practices and environmental protection.

OUR VALUES, CODE OF CONDUCT, AND INTEGRITY

Our Values

To support our vision to be a leading Indonesian mining and energy group, we conduct our business in a sustainable manner to address and manage our Environmental, Social, and Governance (ESG) risks. We integrate ESG into our operations and are committed to actively contributing to shaping a sustainable future. To enhance our performance in operating business, we commit to the Adaro Values of IMORE values, which stands for Integrity, Meritocracy, Openness, Respect, and Excellence.

Code of Conduct

At AEI, we have a code of conduct that is applicable to all of our people. It sets out the principles and behaviors in interacting with stakeholders in an equitable manner which covers our values:

• How the Adaro Group and each individual subsidiary within the group must comply with the law as well as Good Corporate Governance (GCG) principles; and
• How each individual within the company must interact with various stakeholders including shareholders, customers, suppliers, communities, creditors, and other employees.

Anti-corruption and Fraud Policy

AEI has made a commitment to upholding the Anti-Corruption Policy as outlined in Law No. 20 of 2001 on Amendment to Law No. 31 of 1999 concerning the Eradication of Criminal Acts of Corruption. One of these commitments is carried out by strengthening and perfecting AEI's general internal controls in order to enhance fraud and corruption prevention measures like detection, inquiry, reporting, and evaluation.

All AEI employees have a responsibility to avoid insider trading, corruption, and fraud in accordance with AEI's corporate value of "Integrity". The AEI Code of Conduct and the bylaws for the Board of Directors and the Board of Commissioners both contain this duty.

Whistleblowing System

The Board of Directors or other people who can be contacted as listed on AEI’s website are to be informed immediately if any employees or other stakeholders discover an act of error, fraud, or violation of business ethics, company rules, the Articles of Association, laws, or confidential information. All received complaints will be handled anonymously.

Conflict of Interest

At AEI, we avoid conducting any transaction that has the potential to engender conflicts of interest with the company. Permission from the Board of Directors is required for anyone who has ever been, is currently engaged in, or wants to join the management, supervision, or stockholder of a company that is a direct rival, supplier, and/or has the potential to create a conflict of interest with AEI.

OUR MATERIAL TOPICS

Integrating ESG into our operations requires holistic considerations of topics that are material to our business. AEI has identified material topics that represent our most significant impacts on the economy, environment, and people. We utilized guidance from the established GRI standards to analyze and define our material topics. From the assessment process, AEI established 28 material topics to be our focus on improving our sustainability performance:

Based on the materiality matrix above, we have identified 13 material topics that are considered high priority for both internal and external stakeholders. We committed to concentrating more of our efforts on managing the material topics designated as "high priority". These topics are included in our ESG strategy framework.

OUR ESG STRATEGY FRAMEWORK

At AEI, we develop our ESG strategy framework to holistically encompass and tackle all of our material ESG topics. This framework could be the medium for our stakeholders to understand AEI’s strategy in ESG.

Sustainability Vision

Our commitment to sustainability drives how we handle business. AEI is committed to managing our ESG subjects and problems, with the UN SDGs as the driving force behind this. We shape our ESG initiatives with the following vision in mind:

“To lead with purpose towards a sustainable future”

Sustainability Mission

1. mplement best practice GHG and energy management
2. Maintain low environmental pollution throughout our operations
3. Achieve zero occupational health and safety-related (OHS) incidents
4. Secure long-term value for our stakeholders
5. Support the professional and personal development of our human capital
6. Manage and implement corporate social responsibility programs to support local community development

Sustainability Strategy

The general strategies applied to achieve sustainability vision are:

1. Work in an inclusive manner, i.e., designate the community as a strategic partner and embrace all community groups.
2. Uphold local wisdom so that the program is implemented according to needs, utilizing the potential of the community, and not conflicting with positive values that already exist in the community.
3. Build multi-party partnerships.
4. Geared to the principle of sustainability through capacity-building and institutional strengthening.
5. Ensure that the CSR program is carried out transparently, accountably, effectively, and efficiently.
6. Knowledge-sharing through local and national media.
7. Diversification to green economy and initiate carbon reduction journey.

The illustration of our framework is shown below.

POLICIES AND COMMITMENTS TOWARDS SUSTAINABLE DEVELOPMENT

AEI is committed to sustainable development and has established a range of policies and commitments to ensure that it operates in a socially responsible, environmentally sustainable, and economically viable manner. We understand that AEI plays an important role through our program to support the following goals.

AEI has recognized Presidential Regulation No. 59 of 2017 on “The Achievement of Sustainable Development Goals” which asserts the need for the formulation of a National Action Plan (RAN) and Regional Action Plan (RAD) for Sustainable Development Goals (SDGs). The regulation determined the number of targets of the national development goals according to objectives in the SDGs

To support the national agenda on sustainable development, AEI has developed a comprehensive sustainability program that outlines our commitment to sustainable development.