Our Commitment towards Environmental Management
As a company with an extensive value chain and diverse stakeholders, Sampoerna understands that climate change has created challenges for the entire supply chain, from tobacco farmers to our distribution network.
Recognizing that there are risks beyond the company’s operational sphere related to the environmental pillar, we take steps to balance our sustainability initiatives in reducing the environmental footprint and preserving sustainability within each of our operations and communities where we operate.
Energy Efficiency
Following our parent company PMI’s goal, Sampoerna is committed to following PMI’s goal and gradually transitioning our energy source to renewable energy, as well as improving efficiency at all production and operational facilities.
In order to achieve the Greenhouse Gases (GHG) emission reduction target, the Company has undertaken a number of initiatives to support electrical efficiency and process optimization at its production facilities through the implementation of a Building Management System (BMS) and the use of a smart energy dashboard to monitor energy usage effectively.
In 2024, the Company recorded an energy consumption intensity performance achievement of 5.44 GJ/MioCig. This is an achievement for the Company in reducing energy consumption by 5% from the previous year.
As a form of commitment to fully convert to renewable energy as a source of electricity, Sampoerna uses a Solar Power Plant (Pembangkit Listrik Tenaga Surya/PLTS) and purchases electricity that has a Renewable Energy Certificate (REC) facilitated by the State Electricity Company (Perusahaan Listrik Negara/PLN). Through a combination of these two approaches, all electricity supplies for the Company’s owned production facilities have completely (100%) utilized clean energy.
Water Management Performance
Sampoerna is committed to manage our water as a common resource in the area, within our operation. To maintain sustainability, we implement water conservation in every production facility and involve relevant stakeholders in conserving water resources.
We applied the Alliance for Water Stewardship (AWS) standards at our production facilities in Karawang, West Java and Pasuruan, East Java. The same standard is applied to our Malang production facility, East Java this year.
Waste Management Performance
Sampoerna’s target on waste management is to reduce waste from operational activities, encourage recycling, and responsible waste disposal.
We implemented the Reduce, Reuse, and Recycle approach as an effort to reduce waste in both our production and distribution facilities. The various initiatives we carry out include:
- Sorting waste in production facilities based on its nature and purposes.
- Repurposing solid waste into an alternative energy source such as biomass, biodiesel, or bioethanol.
- Managing hazardous waste according to existing regulations
Through good waste management, the Company reported no incidents caused by waste spills or leaks in 2024 around the production facilities.
Raising Awareness on Post-Consumer Waste Management
The Company also consistently strives to increase its adult consumers’ (legal age) awareness and behavior in managing and reducing post-consumer waste through various initiatives and forms of communication, such as:
- The Company is committed to reducing cigarette butt waste through behavior change campaigns and empowering adult consumers to dispose of cigarette butts properly. In commemoration of World Cleanup Day on September 16, 2024, the Company organized cleanup and mangrove planting activities involving more than 1,725 participants and collecting over 2 tons of waste.
- Smoke-Free Product (SFP) consumables: In July 2024, we started end-of-life take-back programs in 50 outlets across 12 cities. This program provides simple and convenient ways for our adult consumers to collect and return their used consumables, enabling us to manage this waste responsibly.
- Smoke-Free Product (SFP) electronic devices: The Company seeks to minimize waste with our SFP device take back program IQOS since October 2023 & VEEV since July 2024 in all our direct retail outlet.
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