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Environmental and Social Governace

ESG (Environmental and Social Governace)

ESG for Oorja Group is where Environmental, Social, and Governance becomes the Priority Benchmark in investment development throughout the development of Mining projects under the auspices of the Multi International Company Oorja Group Indonesia. This refers to the criteria used by the company to evaluate performance in terms of social responsibility, environment, and quality of governance of mining implementation in accordance with the Implementation Provisions mandated in the Policies and Regulations of the Government of the Republic of Indonesia.

OORJA GROUP ESG COVERAGE

Environmental

This includes how companies manage their environmental impact. This can include company policies related to reducing carbon emissions, waste management, natural resource conservation, and other environmentally friendly practices.

Social

It focuses on how companies treat their employees, consumers, the communities they live in, and how they contribute to the overall social welfare. This can include issues such as occupational safety and health, human rights, diversity, relationships with local communities, and corporate charitable programs.

Governance

This refers to how a company is managed, including corporate structure, corporate policies, transparency, and business ethics. Good governance includes things like board diversity, board independence, fair executive compensation, and transparent accounting practices.

ENVIRONMENT

This includes how the company manages its own environmental impact. This can include company policies related to reducing carbon emissions, managing natural resource conservation areas, and environmentally friendly practices developed by the company are very sustainable. From upstream to downstream, environmental management is developed in the form of cooperation with government stakeholders and communities around the mining location. A real example that has been running and developing in accordance with general mining governance is where the company has built a Special School of Agriculture and Forestry in collaboration with the East Kalimantan Provincial Environment and Forestry Service for the development program of plant nurseries for Reclamation and Post-Mining needs.

SOCIAL

It focuses on how the company treats its employees, society and surrounding communities, and how all stakeholders contribute to overall social well-being. This can include issues such as security, occupational safety and health, infrastructure, diversity, relations with local communities, and the Community Development and Empowerment programs implemented by the company to create sustainability.

GOVERNANCE

It refers to how a company is managed, including corporate structure, corporate policies, transparency, and business ethics. Good governance includes things like board diversity, board independence, fair executive compensation and transparent accounting practices. The application of Governance to mining activities by the company is:

Strengthening Environmental Focus (E): Corporate environmental criteria in ESG help raise awareness about the importance of ecological balance in economic activity and investment. It promotes the protection of the natural environment, which in turn supports the principles of responsible environmental management by ensuring the sustainability of natural resources and ecosystem functions.
Encouraging Social Responsibility (S): ESG covers a company’s relationship with society, including the social impacts of their economic activities. By considering social impacts, including the welfare of local communities and labor rights, ESG helps ensure that environmental services management principles take into account social welfare as well as environmental sustainability.
Promoting Sustainable Governance (G): Well-developed corporate governance in the context of ESG focuses on transparency, accountability and fairness. It contributes to environmental stewardship management by ensuring that investment decisions and corporate practices are based on sustainable principles that consider their environmental and social impacts.
Promoting Sustainable Business Practices: Corporate ESG can encourage companies to adopt more sustainable business practices overall, including practices that take into account the environmental and social impacts of the Company’s business activities. This may include investing in environmental initiatives, implementing carbon emission reductions, or complying with strict environmental regulations.
Integrating Environmental and Social Factors in Investment Decision Making Investment Companies that consider ESG criteria in making investment decisions tend to choose companies that have good environmental and social performance. This provides an incentive for companies to pay attention to environmental and social aspects, which also includes good management of environmental services management.

Scope of the Company ESG Activities

Forest Conservation
Sustainable forest conservation and management can not only store carbon but also maintain biodiversity, safeguard water sources, and provide other natural resources.
Ecosystem Restoration
Restoring damaged ecosystems such as wetlands, mangrove forests, and grasslands can help restore their natural functions that contribute to climate change mitigation, protection from natural disasters, and restoration of biodiversity (applied in the implementation of Watershed Rehab).
Sustainable Agriculture Practices
The use of sustainable agricultural practices such as organic farming, agroforestry, and healthy soil management practices can improve soil productivity, reduce erosion, maintain biodiversity, and store carbon in the soil.
Green Infrastructure
Establishing environmentally friendly infrastructure such as, handling potential flood areas, and other green open spaces can help reduce the ambient heat effect of mining activities, improve air quality, and provide psychological and social benefits to city residents.
Revegetation of Exposed Land
Restoring vegetation on degraded or abandoned land can help improve soil quality, reduce erosion, and provide habitat for wildlife (applied in Reclamation and Post-Mining activities).

Example of real application of ESG

Environmental Management within the scope of Oorja Group

Application of ESG Criteria in Mining Process:

Environmental:
Mining companies can implement environmentally friendly mining practices, such as the application of more efficient processing technologies to reduce waste, post-mining land restoration, and conservation of water and soil resources.

Social:
Ensuring the safety and well-being of mine workers, taking into account the rights of local communities, and ensuring their participation and consultation in decision-making are important parts of the social aspect of ESG.

Governance:
Implementing good governance in mining companies includes transparency, accountability and fairness. This involves developing policies that take into account the interests of all stakeholders, including workers, communities and shareholders.

Implementation of Nature Based Solutions:

Revegetation and Land Restoration:
Mining companies can revegetate and restore post-mining lands using nature-based solutions such as endemic plants, replanting forests, and returning lands to natural habitats.

Water Management:
Implementation of NBS in water management includes construction of artificial wetlands or rehabilitation of natural wetlands to clean mine wastewater before it is discharged into the environment.

Tree Planting and Carbon Management:
Tree planting or forest restoration can also be part of NBS’s strategy to reduce carbon emissions and manage climate change impacts from mining operations.

Restoring infrastructure in the development of sustainable activities in maintaining ecosystems
for the protection and restoration of Community economic activities.

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AFTER

BEFORE

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Partnerships with Local Community Stakeholders and Related Parties

Implementing ESG and NBS also involves collaborating with local communities, local governments, NGOs, and other relevant parties to design and implement sustainable programs for the environment and local communities.