Indonesian company Asia Pulp & Paper's net zero goals have been endorsed by the Science Based Targets Initiative, with local businesses reaffirming their commitments to combating climate change.
In a significant move towards a sustainable future, two major Indonesian companies, Asia Pulp and Paper (APP) and Pan Brothers, have had their climate targets validated by the Science Based Targets initiative (SBTi). This makes them the first resource-handling firms in Indonesia to align their goals with the Paris Agreement.
Asia Pulp and Paper's Decarbonisation Strategy
APP, a leading resources firm, is addressing its Scope 2 emissions by transitioning away from coal towards renewable energy, adopting waste-to-energy solutions, and buying renewable energy certificates. The company has indicated difficulty in accumulating data needed to calculate a Scope 3 target, which includes climate pollution from forest, land, and agriculture. Nevertheless, APP's Scope 1 and Scope 2 targets, as approved by SBTi, aim to reduce emissions by 54.6% by 2033 for Scope 1 and Scope 2, and 32.5% by the same year for Scope 3.
The company's long-term net zero target is set for 2060, aligning with Indonesia's national net-zero goal. However, it's important to note that APP's Scope 3 target excludes climate pollution from forest, land, and agriculture (FLAG). APP's FLAG emissions, as well as those of its suppliers, are vast, as much of its plantations are sited on carbon-rich peat soil.
APP's Questionable Past and Pan Brothers' Progress
Despite these ambitious targets, APP has faced criticism in the past for alleged breaches of its promise to stop cutting natural forests. On the other hand, Pan Brothers, a textiles and garments company, has had its near-term targets approved by SBTi. However, its longer-term net zero commitment was removed by the standards body.
Pan Brothers' decarbonisation strategy involves the addition of more solar capacity to its factory roofs and ramping up energy efficiency measures. The company is Indonesia's first manufacturing company to have its climate targets approved by SBTi.
Other Indonesian Companies Following Suit
Forty-two Indonesian firms have SBTi-approved climate targets, although nine targets have been removed, either because they did not meet the criteria or they missed deadlines for submitting validated targets. As of January 2023, no specific Indonesian companies with SBTi-validated climate targets have been identified in the search results. The results mention global and other regional companies but do not provide information about Indonesian firms meeting this specific criterion.
RGE's Climate Commitment and Competition
RGE, a competitor of APP, has not had its climate targets validated by SBTi. RGE's 2023 emissions totalled 13.1 million tCO2e. The company has a zero-tolerance policy for deforestation, but it has been linked to forest loss in its palm oil supply chain in a protected nature reserve in Indonesia.
Gunung Raja Paksi (GRP), another major Indonesian company, plans to be carbon neutral by 2050 and achieve net zero emissions by 2060 or sooner, in line with Indonesia's domestic net zero target. GRP plans to invest in a decarbonisation project this year to accelerate its ambitions.
As these companies strive towards a more sustainable future, it's clear that Indonesia is making significant strides in the fight against climate change. The approval of APP and Pan Brothers' climate targets by the SBTi is a testament to the country's commitment to reducing emissions and protecting its natural resources.
