IMPLEMENTATION OF ESG RISK RATING IN PT PERTAMINA INTERNASIONAL EP

• Main Author: Nurul Akbar Kosasih, Ikmal
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80889
• Institution: Institut Teknologi Bandung

The growing recognition of climate change and sustainability among the public necessitates companies to demonstrate their dedication to Environmental, Social, and Governance (ESG) principles. This is evident in the criteria adopted by certain banks, investors, and lenders, who now exclusively support companies exhibiting a strong commitment to sustainable practices. As a company engaged in the production of oil and gas, PT Pertamina Internasional EP (PIEP) is facing significant hurdles with lenders who demand ESG Risk Ratings as a crucial parameter for loan applications. Quantitative methods are used in this research, utilizing data sourced through the analysis of annual reports, sustainability reports, third-party databases, and online information. The acquired data undergoes processing using the Sustainalytics methodology to generate an ESG Risk Rating. The findings indicated that PIEP's ESG Risk Rating value fell within the severe risk category. Furthermore, there is room for improvement in PIEP's ESG Risk Rating, particularly in the areas of carbon emissions related to products and services, selfoperation carbon emissions, and waste emissions. Identifying the areas that require enhancement is intended to offer valuable feedback to the company, aiming to improve the management of ESG aspects and ultimately achieve a more favorable ESG Risk Rating.