Jakarta. Pertamina New Renewable Energy, the renewable sector sub-holding of the state-owned oil and gas firm, was recently placed third globally in Sustainalytics’ environmental, social, and corporate governance (ESG) ratings.

The ESG analytics firm gave Pertamina NRE a score of 13.0. This ESG rating falls under the "low-risk" category. This also puts Pertamina NRE in third place globally among independent power producers (IPP) and traders. 

“This achievement shows that Pertamina NRE has demonstrated its  ESG commitments in running a sustainable business,” Pertamina NRE chief executive officer Dannif Danusaputro was quoted as saying in a recent press statement.

Pertamina NRE focuses on three pillars: low-carbon solutions, renewable energy, as well as new and future business.

Fadjar Djoko Santoso, the VP for corporate communications at Pertamina, attributed the high ratings to the robust collaboration between the parent company and the sub-holding.

“It is the strong collaboration on the sustainability aspect between Pertamina and each subholding. Thanks to that, Pertamina Group has earned 4 ESG ratings from Sustainalytics,” Fadjar said.

Pertamina earned an ESG rating of 22.9. Sustainalytics also gave Kilang Pertamina Internasional and Pertamina Hulu Energi ESG ratings of 24.2 and 31.2, respectively. Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry-specific material ESG risks, and how well a company is managing those risks. There are 5 categories: negligible-risk (0-10), low-risk (10-20), medium-risk (20-30), high-risk (30-40), and severe-risk (40 and above). The lower the scores, the better as it shows that they are less exposed to ESG risks.

Pertamina has made commitments to help the Indonesian government reach net zero emissions by 2060. To this end, the company has undertaken sustainable development goal (SDG) initiatives and adopted ESG principles in its operations.