IMPLEMENTATION OF COMPLIANCE OF ESG FRAMEWORK AT PT PERTAMINA (PERSERO)

• Main Author: Ayu Anggita Putri, Michelle
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55172
• Institution: Institut Teknologi Bandung

Customer preferences are shifting as time passes. Customers who used to be more concerned with product quality is now more concerned with how the product or business runs. This has an effect on investment as well. Investors are begun to attempt to consider how the businesses run in a number of areas. The factor of Environmental, Social, and Governance is one of them. Many International Oil Company (IOC) and National Oil Company (NOC) businesses have adopted this ESG framework, and even they have moved even further in thinking about how to maintain ESG in their businesses, rather than how to develop an ESG framework. As Indonesia’s state-owned oil and gas business, PT Pertamina (Persero) must take this into consideration. The purpose of this final project is to assess the compliance of PT Pertamina (Persero) ESG Framework in order to compete and sustain in the company’s business and financial aspects. The approach used in this final project is to collect data from PT Pertamina (Persero) Annual Report, Sustainability Report, and online media to evaluate the company’s compliance to face the ESG framework and to collect data from agencies that provide ESG ratings. According to the study, PT Pertamina (Persero) has only met 45 percent to 64 percent of the indicators given by every agency. It is indicating that PT Pertamina (Persero) needs to improve their data disclosure in their Annual Reports, Sustainability Report and online media. Based on data comparison and investor analysis, MSCI and Sustainanlytics are the most suitable ESG agencies for PT Pertamina (Persero).