Perusahaan Listrik Negara

PLN aims to achieve net-zero scope 1, 2 and 3 emissions by 2060 and to reduce its scope 1, 2 and 3 emissions by 15.7% by 2030 compared to 2021. However, these targets could not be assessed for alignment against its 1.5°C pathway as PLN states that it plans to use offsets, and it is unclear what percentage of the target will be achieved through these offsets. PLN should set intermediate targets at gaps of no more than five years to incentivise near-term action on its longer-term goals. It should also clearly report base year emissions and activity data, as well as any offsetting it intends to use, to allow for a complete analysis of its targets and progress against them.

PLN’s emissions intensity trend decreased between 2017 and 2022 at a rate greater than that required by its 1.5°C pathway between 2022 and 2027. Regardless, PLN is not projected to align with its 1.5°C pathway between 2022 and 2027 and is expected to exceed its total 1.5°C carbon budget for the period 2022-2037 by over 50%. This is due to a projected increase of about 17% in the company’s thermal coal generation. Although PLN reports its total capital expenditure (CapEx) for 2022, it does not report its CapEx allocated to low-carbon technology or fossil fuel electricity generation, nor report a projection of its CapEx spending for the next five years.

PLN conducts research and development (R&D) in “new renewable energy” (NRE) power plants, battery energy storage systems (BESS), the co-firing of biomass and ammonia, hybrid and hydropower plants, and carbon capture, utilisation and storage (CCUS). It also conducts R&D in de-dieselisation, mobile gasifier technology, virtual power plants, power plant interruptions and weather modification technology. PLN does not disclose its R&D investment figures for the last four years, and should disclose its climate-related R&D spending in both mature and non-mature low-carbon technologies. Moreover, to meet sectoral-level expectations, the majority of PLN’s total R&D investments should be dedicated to low-carbon technologies and energies.

PLN’s emission intensity trend for its purchased power for resale remained static between 2017 and 2022. To align with its 1.5°C pathway for 2022 to 2027, PLN must reduce its emissions intensity by about 6% per year. Although PLN purchases about 35% of its power for resale to its customers, the company does not report future projections for its purchased power. In 2020, when PLN last reported granular data on power purchased for resale, about 81% of this purchased power was generated using fossil fuels. Since then, PLN only reports the proportion of its total delivered energy generation which has been purchased.

PLN aims to achieve net-zero scope 1, 2 and 3 emissions by 2060. It also aims to reduce the scope 1, 2 and 3 emissions intensity of its electricity supply by 15.7% by 2030 compared to 2021.

PLN’s Transformation Breakthrough plan aims to achieve 18 GW of new renewable energy (NRE) capacity by 2025, aiming to account for 23% of PLN’s energy mix in 2025. PLN’s objective for 2060 is for renewable energy to account for 69% of its electricity generation, gas to account for 15%, coal and gas equipped with carbon capture and storage (CCS) to contribute 8% and new renewable energy to contribute 7%. PLN has set emissions reduction targets, but it is unclear whether the company will use offsets to achieve them.

In 2022, about 87% of PLN’s electricity generation was from fossil fuels. PLN aims to achieve 18 GW of renewable energy capacity by 2025. It has also developed a range of low-carbon business models, which aim to have new renewable energy (NRE) account for 69% of its generation capacity in 2060, use CCS to support a projected 8% coal and gas generation capacity in 2060, construct smart grids on four Indonesian islands and phase down gas and coal by 2060.

PLN’s emissions intensity for its own energy generation decreased between 2017 and 2022 at a rate greater than that required to align with its 1.5°C pathway in 2027. Its emissions intensity associated with its purchased power for resale remained static between 2017 and 2022. To align with its 1.5°C pathway in 2027, the company must reduce this emissions intensity by about 5% per year.

PLN aims to achieve net-zero scope 1, 2 and 3 emissions by 2060 (supported by the use of offsets) and for renewable energy to contribute to 69% of its generation mix in 2060. However, the company has only set a short-term target to achieve 18 GW of renewable generation capacity by 2025, and it is unclear what renewable energy generation capacity it aims to achieve in 2060 and how it aims to achieve this. Furthermore, PLN’s transition plan lacks information on financial details that support its objectives.

No evidence was found of the company’s commitment to social dialogue or discloses the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found showing the company undertakes low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company discloses the actions it takes to realise quality job opportunities for local residents near its renewable energy power plants. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and education opportunities for workers and affected stakeholders. For instance, it offers upskilling for local residents by renewable energy power plants. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No policies or commitments were found to show the company respects human rights. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

No evidence that the company commits to respecting the health and safety of its workers, nor does it expect the same commitment of its business relationships. Moreover, no evidence was found of a time-bound target for paying all workers a living wage. The company discloses that it regulates working hours according to collective bargaining agreement with a maximum of 40 hours per week. However, no evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements. The company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. No evidence was found that the company commits to gender equality and women’s empowerment.

The company indicates that it has a confidential and anonymous channel/mechanism accessible to all stakeholders to raise bribery and corruption concerns and complaints without fear of reprisals. However, no other policies or commitments of the company related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.