Energy Efficiency and Emission Reduction Efforts Lead Sampoerna to Earn Green PROPER Award 2020 - 2021

Jakarta, 7 February 2022 – PT HM Sampoerna Tbk. (Sampoerna), a leading tobacco company, earned the Green PROPER award from the Company Performance Rating Program for Environmental Management of the Ministry of Environment and Forestry of the Republic of Indonesia (KLHK), which was announced virtually by the KLHK PROPER team to the winners and the general public at the end of 2021.

Sampoerna's Head of External Affairs Ishak Danuningrat stated that this achievement would be a motivation for tens of thousands of Sampoerna’s employees to continuously improve their performance, especially in the aspect of environmental management and community empowerment to carry out the mandate they have received upon, as well as aiming to earn the Gold PROPER rating in the future.

“We are proud of the appreciation given by the Ministry of Environment and Forestry and are committed to continue our efforts to maintain environmental sustainability in areas where the company operates. Earning the Green PROPER award aligns with our sustainability practices, especially at our plant in Sukorejo. I would also like to thank the Governor of East Java and her staff, as well as the East Java Provincial Environmental Office for the support and assistance they provided until now, "said Ishak.

PROPER, which is a program for evaluating company performance ratings in environmental management, is certainly not given by the Ministry of Environment and Forestry to just any company or organization. The criteria are quite strict and also consist of two stages, namely the criteria for Assessment of Compliance and Beyond Compliance or assessment criteria that are more than just the requirements.

“This achievement is a manifestation of our contribution to realizing Advanced Indonesia, through our Sampoerna for Indonesia umbrella program, which focuses on developing micro, small and medium enterprises (MSMEs); improvement of farmers' welfare; supporting national economic recovery, and reducing the environmental footprint,” he explained.

Sampoerna received the Green PROPER award in line with its sustainability efforts which are realized through various programs within the scope of environmental management. On the issue of water security, for example, Sampoerna encourages the management and use of water that is socially fair and environmentally friendly by involving various relevant stakeholders.

Sampoerna's water sustainability practices have also been recognized as the first company in Indonesia to receive a Water Management Standard Certificate from the Alliance for Water Stewardship, which aims to support the initiatives of industry players in water stewardship in their areas of operation.

Another environmental issue currently being discussed is the use of energy and the reduction of carbon emissions. Sampoerna's plant in Sukorejo, East Java has its own way of dealing with this matter, which is by employing the Chiller Optimizer technique, which uses an automated tool monitored online to reduce the use of energy generated from the production process units. This practice is the first innovation implemented in Indonesia, which has succeeded in reducing energy use at the Sampoerna’s plant by 1,848 Gigajoules throughout 2020.

Sampoerna also conducted an LCA (lifecycle assessment) study to assess the hotspots of the main and supporting process activities, and the emissions. This was done to determine the best solution to reduce carbon emissions. Based on the results of the study, Sampoerna has implemented a magnetic motor chiller pump installation, increased compressor efficiency, and utilized other technologies to reduce carbon emissions.

The next topic assessed through the PROPER rating is the implementation of good agricultural practices that have been implemented by Sampoerna until now, especially in empowering clove farmers. This initiative is realized through various training programs, CSR activities, and infrastructure development. Moreover, until now Sampoerna has established 21 hubs spread across clove production centers in various regions of Indonesia. In addition, Sampoerna also provides the Sampoerna Entrepreneurship Training Center (SETC) facility as an integrated entrepreneurship training center to support the government's efforts to accelerate economic growth through MSMEs empowerment.

The Ministry of Environment and Forestry also added other criteria for the sensitivity and responsiveness of companies to disasters in assessing aspects of community empowerment in PROPER rating for the 2020-2021 period. This involves the response to the COVID-19 pandemic that has spread in the country since March 2020.

"During the COVID-19 pandemic, our company carried out all government regulations and policies related to health protocols properly and strictly. We carry out this mandate not only to follow the rules, but also to protect the extended family of Sampoerna employees,” said Ishak. "In addition, we also provide training through Sampoerna Rescue (SAR) to help improving disaster response skills for all of our employees and the local communities."

Sampoerna earned a Green Rating along with 186 other companies, out of a total of 2,593 companies assessed. Thus, this achievement proves that the management of operational activities at Sampoerna has been running properly and efficiently and can provide benefits for environmental management and the empowerment of the surrounding community.

“For us, caring for the environment and the community is part of business sustainability practices, so it has become a commitment as well as our corporate culture. This is in line with the commitment of Sampoerna for Indonesia, which is the umbrella program of our sustainability programs to support the government in achieving its vision of realizing an Advanced Indonesia,” concluded Ishak.


About Sampoerna for IndonesiaSampoerna untuk Indonesia”

Sampoerna for Indonesia is the umbrella program for PT HM Sampoerna Tbk's (Sampoerna) sustainability programs. Through various initiatives under Sampoerna for Indonesia, Sampoerna supports the government in achieving its vision of realizing an Advanced Indonesia through four main focuses: development of micro, small and medium enterprises (MSMEs); improvement of farmers' welfare; supporting national economic recovery; and reduction of environmental impact.

About PT HM Sampoerna Tbk. (Sampoerna)

Founded in 1913, Sampoerna – an affiliate of Philip Morris International Inc. – is a leading tobacco company in Indonesia, with a primary focus on the manufacturing and sale of kretek (clove) cigarettes. The Company produces a number of best-known clove cigarette brands, such as Sampoerna A, the legendary “King of Kretek” Dji Sam Soe, Sampoerna U, and Sampoerna Kretek. The Company also distributes the Marlboro brand throughout Indonesia through a long-term distribution agreement with PT Philip Morris Indonesia.

Sampoerna owns and operates six factories located in Surabaya, Pasuruan, Probolinggo, Malang, and Karawang. The Company establishes partnership with 38 Third-Party Operators (TPOs) in Java – with a total workforce of around 65,000 direct and indirect employees, mostly in the production of hand-rolled clove cigarettes. It has a total of 110 zone branches offices, sales offices, and distribution centers throughout Indonesia.

Sampoerna is one of the largest companies by market capitalization on the Indonesian Stock Exchange, where it trades under the ticker symbol “HMSP”.

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Media Contact:

Reza Juniarshah

Head of Corporate Communications

PT HM Sampoerna Tbk.