GRC Leadership for Sustainable Impact Summit PDF

Enhancing Energy Transition Performance by Addressing Inequalities through GRC and ESG Initiatives Derina EVP of Compliance PT PLN (Persero) SPEAKER Derina Executive Vice President of Compliance PT PLN (Persero)  The scalability of assets and the complexity...

Enhancing Energy Transition Performance by Addressing Inequalities through GRC and ESG Initiatives Derina EVP of Compliance PT PLN (Persero) SPEAKER Derina Executive Vice President of Compliance PT PLN (Persero)  The scalability of assets and the complexity of PLN’s end-to-end business processes require a strong ESGRC principles culture across all lines Primary Energy Generation Transmission Distribution Retail Electrification Ratio 99,79% 72.976MW 68.284,24kms 1.047.283kms Employee 42.475 Installed Generation Capacity Total Transmission Total Distribution Network Length Length Customer PLN (44.995) Buy (26.658) 171,508MVA 74,127MVA 89,1 M Rent (1.323) 2.327UNIT 551.303UNIT Energy Sold 288 TWh Total Sub Station (GI) Total Distribution Sub Capacity Station Capacity Revenue Rp 487 T Rp  Why ESGRC Leadership Is Becoming More Critical? In an era of increasing uncertainty and novelty and the urgency of environmental sustainability, social responsibility, and ethical governance, PLN needs to understand and anticipate the risks arising from various strategic issues, especially in the energy sector, as an effort to increase resilience and ensure a sustainable future. White Elephant Black Swan Fusion Nuclear Breakthrough Inefficiency Carbon Capture Impact on PLN: Causing current and Storage (CCS) Project investments in renewable Impact on PLN: High operational energy to become obsolete, costs, low capture efficiency, disrupting the market and and limited scalability, making it investment strategies." economically unviable Grey Rhino Black Jellyfish Climate Change Impact Cyber Security Attack Impact on PLN: Increased Impact on PLN: Increased infrastructure damage, higher vulnerability, data breaches, and maintenance costs, and accumulation of small disruptions in energy disruptions that can cause production and distribution significant operational risks. Leaders Navigating Resiliently “Like a captain steering a ship through unpredictable weather, PLN leaders must be adaptive and visionary in facing new risks. Embracing diversity and inclusion strengthens PLN's ability to innovate and adapt in the sustainable energy transition." Sustainability and ESG must be the basic framework in running PLN's business processes (fiduciary duty) -Darmawan Prasodjo- PLN CEO  PLN is committed to conducting sustainable business practices as outlined in the Statement of Corporate Intent on Sustainable Business Principles of PT PLN (Persero), which is structured based on four aspects: Economic aspect Environmental aspect focusing on financial performance (profit) as one of focusing on environmental conservation, including the factors for business sustainability while climate change control, air quality management, water considering the affordability of electricity to drive quality management, hazardous and non-hazardous national economic growth waste management, resource conservation, and biodiversity conservation. Social aspect Governance aspect focusing on employees, business partners across focusing on implementing good corporate governance PLN’s supply chain, consumers, and the general (GCG) principles, including transparency, accountability, public, which include health and safety, facility responsibility, independence, and fairness, through the security, gender equality, diversity, adoption of GCG guidelines and codes of conduct, inclusion/special needs, product responsibility, risk management, internal control, compliance, community engagement, and meaningful participation. internal oversight, integrity enforcement, and information disclosure, including cybersecurity. “PLN Sustainable Business Principles are set based on a holistic balance of economic, environmental, social, and governance pillars” Environment : Governance : Climate Change Management Business Ethics Environmental Management Corporate Governance Resource Management Occupational Health & Safety Land Use and Biodiversity Social one form of leadership concern for sustainable impact Community Involvement and Development on the social pillar with coverage of gender Gender Equality, Disability & Social Inclusion equality. Product Governance Human Capital Development Social Management Performance Highlights In addition, gender equality Gender Equality is also a principle in implementing SDG's achievements. In the context of running a business in the energy transition era, Gender equality is an inseparable Women can provide aspect of the company's overall strategy. different perspectives that enrich ideas and discussion, hence become an added value to the company. Gender as part of ESG risk rating indicators. Lowering ESG risk ratings is key to increasing access to energy transition and sustainability finance.  Cultural survey results show inequalities that can impact performance in the energy transition sector 3 Main reasons why it is not equal 3 Main things that can increase 3 Main reasons why we don't have women’s comfort at work equal rights There are jobs that require physical strength Supporting facilities (childcare/lactation room) Not all jobs can be done by women Holding 82,9% Holding 79,1% Holding 70,7% Sub Holding 87,2% Sub Holding 77% Sub Holding 71,3% There are jobs that are dangerous if done by women Placement in non-hazardous/night work Related to women who need to divide their time with Holding 60,2% Holding 67,7% household chores Sub Holding 63,3% Sub Holding 71,5% Holding 60% Sub Holding 47,5% There is work to be done at night Flexible time women's abilities are not the same because there is Holding 41,9% Holding 36,3% a menstrual period which interferes with women's Sub Holding 56,4% Sub Holding 41% ability to think Holding 53,1% Sub Holding 58,8% Source : based on the results of the 2023 PLN cultural team survey Gender Equality Strategy in Policy PLN has made policies and efforts related to gender equility and prevention of sexual violence. President Director's Commitment: "CEO Statement of Support for the Women's Board of Directors Regulation Empowerment Principles” No. 0153.P/DIR/2019 concerning the Implementation Board of Directors Decision No. of the PLN Safeguard System for 0191.K/DIR/2021, Establishment ADB Project Costs of Srikandi Task Force at PT PLN (Persero) 2020 2023 Board of Directors Regulation Board of Directors Regulation No. 0138.P/DIR/2019 No. 0170.P/DIR/2021 concerning Corporate Social concerning the Life Balance Responsibility (CSR) Guidelines Program based on ISO 26000 2019 Board of Directors Regulation No. 0015.P/DIR/2020 concerning Protection, Prevention and Handling of Sexual Harassment in the Environment of PT. PLN (Persero) 2021 Statement of Corporate Intent (SCI) No. 0014.P/DIR/2022 on Gender Mainstreaming Statement of Corporate Intent Number 0056.P/DIR/2023 on Gender Mainstreaming Policy (PUG)  Gender Equality Strategy in Manuals and Procedures The Gender Equality Policy is provided in the form of a manual/procedure to be implemented in every business process cycle. Environmental and Social Management System is PLN's manual for implementing safeguard provisions in foreign funding projects, including gender criteria. Complaints and grievances from the public regarding gender are regulated in the Complaints and Grievance Handling Mechanism Procedure. Gender issues are included in the ESG KPI achievements which are monitored and evaluated continuously The proportion of female % Women in nominated representation in management talent positions 22 % target  Webinar IGNITION 1.0: Webinar Platform IGNITION 2.0: MASTERCLASS Platform: Learning Topic: Women in STEM, Partnership with USAID ASIA Women Summit (for ASIA Women in Gender Academy Electricity Industry) Framework and instruments in Capacity Building integrating gender equality in Partnership with ADB Gender Up-skilling: Gender Equality learning and training Awareness Training PLN Female Bootcamp: Women Leadership Program for PLN Top Youth Female Gender Academy is not a Employees “women’s platform” but a vital PLN Group Women Summit ongoing learning platform for everyone with specific programs Women Support designed to reduce structural Coaching & Mentoring barriers to recruitment, promotion, Program: Woman supports and talent development for Scholarships Woman, He for She Program women. Scholarship to continue their education to a higher level  Capacity Building Program OPERATIONAL ENERGY VALUE CREATION & EXCELLENCE TRANSITION ENABLERS ✓ Hydrogen ü Early Coal Plant Retirement ü Bioenergy ✓ Fuel Cell ü Environmental ü Biomass ü Climate Change Mitigation Asset Management Risk Hydropower Power Gas Conversion Energy Transition Bioenergy Mechanism ü USC Boiler ü Battery Energy ü Carbon Capture ü Coal Gasification Storage Business Development (Electrochemical) Geothermal Energy Clean Coal Technology Energy Storage system Wind Solar Generation Commerce Nuclear Ocean Energy ✓ Power System Planning Smart Grid & ✓ Power System Operation Sustainability Control System Smart Grid & Control System Interconnection ✓ Electrical Energy Transaction Digitalization ✓ SCADA, Telecommunications and Protection Transmission Industrial Digitalization Smart Distribution Policy & Regulation Distribution Digital Digital Digital Supply Digital Product Digital Innovation Cloud Computing Digital Business Cyber Security IoT Software Devops UI/UX IT Governance Data Science & AI & Machine Marketing Chain & Collaboration & networking Management Development Analytics Learning Program Capacity Building “Collaboration Learning and Innovation Opportunity “(COLONY)  Scholarships PLN has a scholarship program for employees to pursue higher education or to gain specific skillset through short courses. There is also internship program available to attain knowledge and skills from benchmarks. 32% of woman employees got the opportunity to take part in the programs. Women Summit & Webinar PLN IGNITION: #womenseries Organizational Support Srikandi PLN Women Empowerment Strategy To analyse policies related to women's empowerment The involvement of female employees in the energy transition To provide recommendations to management for improving agenda is carried out through the PLN Srikandi Task Force. women's empowerment policies and programs Srikandi PLN, was launched by PLN’s CEO in 2021, is a task To establish strategic programs for women's empowerment force that aims to ensure the implementation of women empowerment programs in PLN. Women Empowerment Learning and Development To provide, organize, evaluate, and report on learning and development programs for women's empowerment Women Empowerment Communication and Public Relation To be spokesperson as Srikandi task force for internal and external stakeholders To document and publish policies, programs and activities that promote women's empowerment To manage information and communication media  Capacity building PLN Srikandi Program Social and Environmental Responsibility Program Policy and advocacy culture and character  PLN is continuously committed to empowering women to pursue careers in STEM, occupy managerial positions and enhance their capacities, particularly in the field of energy transition Number and Percentage of Female Employees 20,94% 19,76% 19,53% 8.070 8.327 8.351 2023 2022 2021 22 % Number and Percentage of Women in Management Positions target 15,15% 14,71% 13,82% 339 330 307 2023 2022 2021 Leadership focused on sustainable impact not only involves implementing GRC, ESG, and SDG principles but also actively promotes Gender Equality and Social Inclusion. By ensuring that company policies and practices support equity and inclusion, leaders can drive positive, sustainable change that benefits both the company and society as a whole. Thank you