In line with Indonesia's Enhanced Nationally Determined Contribution (ENDC) to reduce its emissions by approximately 31.9% unconditionally and a net zero target of 2060 or sooner, GRP has taken steps to bolster their Environmental, Social and Governance (ESG) strategy and reduce primary sources of emissions from the use of grid electricity and fuel (natural gas and coal) combustion, via clean energy alternatives.
The steelmaker has set out a plan to engage stakeholders across the supply chain in minimising the environmental and social impact from steel. GRP has built its ESG strategy around five core pillars:
- Responsible Procurement
- Environmental and Social Compliance
- Energy Transition and Low Carbon Solutions
- Contributing to Responsible Environmental Management
- Nurturing Talent
In accordance with these pillars, the Net Zero Roadmap outlines the GRP's decarbonisation goals, which builds upon the Energy Transition and Low Carbon Solutions pillar, whereas the new sports centre builds on the themes of Nurturing Talent.
To date, steel production accounts for almost 8% of global carbon emissions and this figure is expected to rise, as the global appetite for steel consumption increases. Against this backdrop, government and industry leaders alike, are making commitments to reduce their carbon footprint and GRP is determined to support these national and global agendas.
Upon evaluating its emissions based on the Greenhouse Gas (GHG)Protocol and identifying its primary sources of emissions, GRP has identified 5 main pillars of emissions reduction measures and initiatives to achieve carbon neutrality:
- Fuel Switching: transitioning from coal to cleaner sources of energy such as natural gas
- Production improvements and resource efficiency improvements: Balancing between meeting current steel demand whilst decarbonising production processes
- Green Power Sourcing: Sourcing green energy from the grid or producing it in-house
- Carbon offsetting: Investing in carbon offset projects that benefit the environment
- Collaboration and Partnership: Working with public and private sector stakeholders to implement solutions to reach Net Zero i.e. the Indonesian Iron & Steel Industry Association (IISIA) and participating in the Net Zero Hub by Indonesian Chamber of Commerce (KADIN).
GRP's Net Zero roadmap also includes its disclosure for 2021 GHG Inventory, which is currently at 0.86 Tonne CO2/ Tonne of Crude Steel production. As an electric arc furnace (EAF) operated mill, GRP has the advantage in decarbonising its manufacturing plant compared to other global steel players who run by Blast Furnace Operated mills. This inventory data serves as a baseline for GRP's decarbonisation journey.
"In the past year, we are hearing more conversations from the industry around decarbonisation and transitioning to cleaner energy sources. As much as there is increasing attention towards ESG, we believe that action speaks louder than words. Mapping out these actionable steps is the right way forward in our ESG strategy. With our Net Zero Roadmap, we are determined to shift the business towards a carbon neutral one and collaborate with stakeholders within our supply chain to achieve this mission," said Sheren Omega, Head of Sustainability at GRP.
In addition, GRP also announced the launch of its new sports centre, which focuses on one of the five core pillars – Nurturing Talents. The World Steel Association showed that steel workers suffer long-term health effects such as cancers, respiratory diseases and stress related disorders as a result of prolonged exposure to hazards on the job. GRP believes that improving the mental and physical wellbeing of their employees is essential for them to excel at work. The new sport centre will provide employees an outlet to destress and recharge for work in light of building career longevity.
"Our employees are crucial assets to the company. Some of them have been with us for decades and it is only right that we as a company safeguard their wellbeing and provide them with a healthy working environment. We believe that initiatives like this sports centre will go a long way in setting our employees up for success at work," said Tony Taniwan, Executive Committee at GRP.
Embarking into a new year, GRP is determined to support construction projects for eco-friendly infrastructure such as the building of the New Capital City (IKN), Solar Panel and Electric Vehicle Plants. The company also seeks to actively engage the government and industry leaders in identifying solutions to help the industry transition to a cleaner future.
GRP is currently a full member of the ResponsibleSteel™ and has certified products and operation sites which meets the pre-requisite 13 principles, and the 370 associate requirements, highlighted in the ResponsibleSteel™ International Standard V2.0.
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About Gunung Raja Paksi
PT Gunung Raja Paksi Tbk (GRP) is part of the Gunung Steel Group, which is one of Indonesia's major private steel businesses. Our company began its operations in 1970 in Medan, North Sumatra, by producing hot steel, then progressed to manufacture steel beams and sheets.
With over 50 years of steel industry experience, GRP has a production capacity of 2,200,000 tons of high-quality steel annually approved by local and international certifying company.
Today, our company has become one of the largest private steel companies in Indonesia. Gunung Raja Paksi, "Shaping Tomorrow". Together we develop a better future.
For more information, please visit: www.gunungrajapaksi.com
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