In 2023, as part of a human rights due diligence process, the Company conducted a human rights risk and impact assessment for a renewable power business in Vietnam. The assessment involved a thorough data collection, including interviews with various rights holders, comprising employees, contractors, subcontractors, security guards, and local communities, as well as vulnerable groups, such as women and pregnant women. The findings from the assessment revealed that, with current control measures, most human rights issues posed low to medium risks. However, there were 6 high-impact risks that require focused attention. These areas included working conditions & equal remuneration, labor recruitment, forced labor, occupational health & safety in workplace, violence or harassment, and internal grievance mechanisms.

Since its establishment in 2019, Jorong Mine’s Sasirangan eco-print program in Indonesia has been a beacon of women’s empowerment and sustainable development. <br><br>The program is operated in partnership with the community consultative committee and involves 2 women groups that manage the activities. These groups have significantly enhanced their capabilities through knowledge sharing and technical skill training, focusing on creating eco-friendly products.<br>Sasirangan’s product line uniquely incorporates eco-print techniques using eucalyptus leaves from Jorong’s reclamation areas. In 2023, the initiative expanded its product range to include eco-print coloring material and became a local government partner in Kondang’s market, a significant step in increasing the program’s reach and impact.

BKV, the Company’s subsidiary in the U.S., is committed to being a positive force within society. BKV prioritizes maintaining open and honest relationships with stakeholders and is deeply committed to being engaged with the community.<br><br>In 2023, BKV launched the first “BKV First Responder Grant Program”. This initiative is designed to establish partnerships with local first responders by providing them with financial support to enhance their services. The program started with a “First Responder Lunch and Learn” event, where BKV began discussions on safety, operations, and partnership opportunities.<br>First Responders in the operational areas in Texas and Northeastern Pennsylvania were invited to participate by submitting a simple one-page grant application. The community relations committee then reviewed all applications and ultimately awarded a total of 8 grants in the amount of over USD 30,000.<br><br>“As fire departments are in fierce competition with all the other city departments for funding, grants, and community organization support are crucial in helping us acquire necessary equipment. The gracious First Responder grant from BKV will go toward obtaining a vital EMS training prop helping ensure our staff remains proficient in our lifesaving EMS skills.”<br>Doug Spears<br>Fire Chief Saginaw Fire Department

Mine Subsidence represents a critical challenge in underground mining, manifesting during or post-mining operations, with the potential to damage nearby structures and residences. The Company’s strategy is the implementation of proactive prevention and mitigation plans. These plans are developed based on thorough mine subsidence risk assessments and surface impact analysis. The Point Hatteras Extraction Plan is a blueprint designed to guide the mining operations with support by sophisticated modeling techniques that simulate the potential impacts. Furthermore, the Company has established a network of monitoring stations focused on tracking the width of surface cracks to prevent and halt subsidence before exceeding the maximum allowance limits. 

The Company has integrated ESG criteria into the supplier screening and selection process. The standard has been developed and deployed across the organizations. This standard outlines the flow process seamlessly from initial engagement with suppliers to the final awarding of contracts.<br>Building upon existing practices, the Company has streamlined the pre-qualification form. The criteria include social aspects such as health & safety and community impact, environmental aspects such as waste management, and governance aspects such as business ethics. While a self-assessment questionnaire serves as a tool for suppliers to evaluate their ESG performance, with scores evaluated based on evidence-supported responses.<br>Simultaneously, the development of supplier ESG assessment standard is underway. This standard is crucial for identifying any significant actual or potential negative impacts that may arise during work and providing a basis for improvements. This is essential for the Company to identify, monitor, and address impacts throughout the entire supply chain.<br>

At Bontang Coal Terminal (BoCT) in Indonesia, coal spillage along the ship loading process has been identified as a critical issue. This challenge not only leads to the port’s cleanliness but also poses environmental risks to the surrounding community and incures significant management costs. In response, BoCT embarked the “Reuse coal spillage project” by blending spilled coal back into the shipment.<br><br>This project kicks off with a comprehensive data collection utilizing a digital application. The execution phase ensures the careful integration of spillage coal back into the shipment process. This approach has led to a reduction of coal spillage dumping and conserved 4,386 tonnes of natural coal annually. Moreover, it has significantly reduced dust emissions and contamination in soil and water, thereby lowering community complaints. Financially, the project has delivered substantial economic advantages, generating additional coal revenue of USD 477,850 and reducing coal spillage management costs by USD 15,052 each year.

The Company has taken a strategic step forward by assembling a cross-border team dedicated to leveraging AI to enhance the profitability in the energy trading business in Australia. This AI showcase is designed to maximize the future battery revenue and improve outcomes of trading business with focus on 2 key goals:<br><br>Forecasting the electricity dispatch price to optimize battery dispatch strategy.<br>Predicting anomalies in pricing to mitigate risks associated with volatile market conditions.<br><br>This initiative has undergone a thorough analysis, revealing an opportunity to boost the business profit by 4.6 million AUD, based on a 22-month back-test result. Such potential gains underscore the transformative power of AI in revolutionizing energy trading business. Currently, the physical battery investment is under final assessment.

ITM, a subsidiary in Indonesia, faced with the challenge of carbon stock data gathering from the reclamation process due to manual data collection and no standard reference. This inefficiency delayed data collection and validation.<br><br>To pursue this challenge, ITM initiated the GREENCODE project, which is a digital platform and dashboard designed to ensure the validity and visibility of carbon stock data. The project was rolled out at Embalut and Jorong mine.<br><br>The introduction of GREENCODE has significantly improved the efficiency and effectiveness of reclamation monitoring. It has also enhanced decarbonization knowledge of team members. Economically, the project has delivered tangible benefits by reducing lead time to update carbon stock data of USD 36,746 annually. The Company also potentially minimizes future carbon tax and ensures reclamation compliance.

The CG Storytelling Contest, themed "Every Story Needs to Be Told," is an innovative approach to deepen employee engagement with corporate governance (CG) best practices. Participants are invited to share their experiences and impressions of colleagues who embody these principles, highlighting real-life examples of integrity and ethical conduct across the Company. The top three stories, celebrated for their inspiration, will be brought to life through video clips and showcased on CG Day.

To address ESG-related challenges, the Company held the ESG Summit 2023 on October 10th, under the theme “Sustainability Horizons: Pioneering Decarbonization and Data Privacy & Cybersecurity”. The summit was graced by the ESG committee and senior executives from all business units, unified in exploring 2 main topics: climate change & carbon reduction and data privacy and cybersecurity. At the summit, the Company welcomed external experts to share value insights under the topic “Strengthen Cyber Readiness” focused on cyber attacks.<br>

Recognizing the importance of ESG awareness across all levels, the Company embarked on an internal communication newsletter to provide employees with comprehensive knowledge about ESG principles in user-friendly infographics. 

CG Day 2023 took place on October 17, 2023, marking an annual event to enhance employee awareness and engagement on CG best practices and Code of Conduct. This year, the top three stories from the CG Storytelling Contest shared their impression through CG stories centered around the theme of “integrity”.

"CG Focus" is a featured section in “Banpu Synergy E-Magazine”, a quarterly e-journal reaching employees across all countries where the Company operates. These articles shine a light on CG best practices within the organization and share updates on the updates on CG progress in order to foster understanding and awareness among the employees.