As a logistic and supply chain Company, AKR strives to contribute to environmental protection and preservation in order to reduce climate change and extreme weather that is happening on a global scale. Through the Corporate ESMS Guidelines, the Company seeks to manage the impact of operational activities and declare its commitment for continuous improvements, as well as creation of good environmental, occupational health and safety at the Company.
AKR implements a fuel-saving program to show concern for environmental sustainability and support for the Republic of Indonesia’s Presidential Regulation No. 61 of 2011 concerning the National Action Plan for Reducing Greenhouse Gas Emissions “RAN-GRK”. This regulation has become the basis for various Ministries, state institutions, and Regional governments to carry out activities that will have both direct and indirect impacts on reducing greenhouse gas (GHG) emissions.
The total emissions produced by AKR, among others, relate to petroleum and electricity. The use of petroleum produces direct GHG emissions (scope 1), while the use of electricity produces indirect GHG emissions (scope 2). In addition to the GHG emissions in scope 1 and 2, the Company also produces emissions from its air conditioning machines and small fire extinguishers (APAR). Other sources of air emissions managed by the Company include air emissions from the petroleum of operational vehicles, generators, and transportation business, including transportation by trucks and ships.
The company implements various initiatives to reduce CO2 emissions. These have been discussed in an earlier section. Lower use of Petroleum and Electricity will together lower the CO2 emissions.
In 2020, the Company operated around 300 trucks. To reduce air emissions, the trucks transporting petroleum and basic chemicals are tested for emissions. Using only those trucks that passed the test helps reduce emissions. The Company also reduces air emissions by an operating transportation fleet powered by environmentally friendly high octane fuel of octane 92 and above. In addition to preserving the engines and reducing any residue, this type of fuel was chosen due to its perfect and effective combustion that reduces air gas emissions. At JIIPE, the Company reduces the emissions by using environmentally friendly natural gas for its power plant.
In addition, AKR has also participated in the Indonesian Government’s initiatives to use biodiesel. Since September 1, 2018, in accordance with the government policy, AKR has been fully supporting the distribution of Biodiesel under the government initiative. In 2020, participation in the Government B30 Program saw instalations in-house blending facilities to accomplish the targets and this has also continued in 2021.
As for ozone depleting substances, the Company replaced synthetic refrigerant Freon R-22 with eco-friendlier substances for air conditioners. This is further proof of the Company’s steadfast commitment to ozone layer recovery.
What is also important, apart from just building physical facilities at Java Integrated Industrial and Port Estate (“JIIPE”), the Company has also undertaken reforestation by planting trees to produce more oxygen and reduce carbon dioxide. The trees will in turn help with water drainage and erosion control, and preserve soil fertility and reduce air pollutants. In 2019, JIIPE planted 200 trees together with KODIM Gresik. In 2020, the Company plans to plant trees together with Community Watchdog Group in the 10,000 mangrove conservation program.