Environmental Social and Governance(ESG) Committee Charter

ESG Committee

The ESG Committee was established as a manifestation of the Company’s commitment to sustainable development in social, economic, environmental, and governance aspects. Formed under the Board of Directors’ Decision Letter No. 020/Kpts/DIR/ITP/XI/2021, the ESG Committee is responsible for ensuring the alignment of Indocement’s business practices with environmental sustainability goals, particularly in enhancing long-term corporate value and promoting strategic ESG management.

Legal Basis

1. Indonesia’s 2030 SDGs Roadmap published by the Ministry of National Development Planning/National Development Planning Agency (Bappenas);
2. Sustainable Finance Roadmap in Indonesia issued by the Financial Services Authority (OJK);
3. Indonesian Corporate Governance Roadmap published by the Financial Services Authority (OJK);
4. HeidelbergCement Group’s 2030 SDGs Roadmap;
5. Board of Directors Meeting dated 22 October 2021.

The ESG Committee Charter can be downloaded here.

Duties and Responsibilities

The ESG Committee’s duties and responsibilities include:

1. Setting direction and formulating effective ESG strategies, while recommending related policies, action plans, and disclosures;
2. Developing an integrated ESG system and aligning ESG goals and targets across the Company;
3. Providing necessary support to ensure the execution of ESG quality improvement programs;
4. Performing duties relevant to ESG Committee objectives as delegated by the Board of Directors;
5. Monitoring the implementation of ESG programs and managing their associated risks and impacts;
6. Evaluating overall ESG implementation and identifying opportunities for improvement;
7. Reporting to the Board of Directors at the end of each fiscal year on the ESG Committee’s performance, achievements of ESG programs, and providing related recommendations.

Implementation of ESG Committee Duties

Throughout the year, the ESG Committee held meetings and conducted coordination activities across all relevant functions, including engaging with external parties such as ESG rating agencies. Feedback and evaluations from these agencies were taken into account to continually enhance the Company’s sustainability performance.