Sustainability

Sustainability serves as the foundation of our business. We firmly believe that the sustainability of our company relies not only on efficient and profitable operations, but also on responsible environmental management, employee health and safety, employee empowerment, significant contributions to community welfare, and the adoption of the highest standards of corporate governance.

Our commitment to sustainability is enshrined in our Sustainability Policy, formulated with reference to:

The United Nations Guiding Principles on Business and Human Rights
The International Labour Organization’s Declaration on fundamental principles and rights at work
The OECD Guidelines for Responsible Business Conduct, and
The Financial Services Authority Regulation No. 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies.

As a signatory of the United Nations Global Compact (UNGC), Merdeka is committed to adhering to the 10 UNGC principles concerning human rights, labor, the environment, and anti-corruption.

In 2022, we have devised a Six Pillars of Sustainability Strategy aligned with the Sustainable Development Goals. These six pillars encompass:

The preserving the environment
Ensuring “everyone safe, always”
Empowering our people
Carring for communities
Respecting human rights
Adopting good corporate governance.

In October 2023, Merdeka’s MSCI ESG rating improved from BBB to A, making us at that time the only Indonesian mining company within the MSCI Diversified Metals and Mining sub-industry, to achieve this rating. Merdeka is also included in the MSCI Indonesia ESG Leaders Index, which comprises various large and mid-sized companies with relatively higher ESG performance compared to their sector peers.

Throughout 2023, we maintained our position as a leader in the ESG risk rating by Sustainalytics among diversified mining companies in Indonesia within the comprehensive assessment category. This rating improved our global position from the 18th to the 16th percentile in the metals and mining sub-industry. We also received several sustainability awards in 2023 and 2024.

2023 Sustainability Report

Our Board of Directors holds full responsibility for implementing sustainability at Merdeka, approving strategies, targets, and policies to realize Merdeka’s sustainability commitment.

Our Board of Directors established the Sustainability Committee through the Sustainability Committee Charter. The committee supports the board in decision-making and overseeing the sustainability implementation. Chaired by the Vice President Director, the committee includes the President Director, Executive Management, General Managers at each site, the Head of Mining Engineering, General Managers at the headquarters, and managers from the Sustainability Department. The sustainability committee holds meetings at least four times a year. Meeting outcomes are reported by the Committee Chair to the Board of Directors at board meetings.

The tasks and responsibilities of the Sustainability Committee:

Review the Merdeka’s sustainability policy, strategies, targets, and guidelines.
Monitor national and global sustainability laws and regulations, developments in relevant sustainability standards and trends for Independence, and formulate recommendations for updating Merdeka’s sustainability strategies, policies, targets, and guidelines.
Identify and manage Merdeka’s operational impacts on the environment, society, and economy.
Review methods for communicating Merdeka’s sustainability policy, strategy, target and performance to internal and external parties.