Freeport Implements ESG, Commits to 30% Carbon Emission Reduction by 2030

09 September 2022

PT Freeport Indonesia (PTFI) says it is implementing the Environmental, Social, And Governance management concept or ESG towards increasing investment in the minerals and coal sector. PT. Freeport Indonesia President Director Tony Wenas says implementation of ESG is crucial as it forms part of a mandatory report submitted to the Energy and Mineral Resources (ESDM) Ministry. “Certainly, what is now termed as environmental management, ESG, green economy, and the like are necessary, and like it or not we must implement them,” Tony told CNBC Indonesia some time ago.

PTFI has stated its commitment to 30% carbon emissions reduction by 2030. This commitment is already in effect, for instance with the operation of an electric rail system that will enable immense lowering of carbon emissions. 

Also in their environmental efforts, 100 hectares of mangrove forest are planted every year to absorb even more carbon. In other programs initiated by PTFI that are described as development by design, PTFI takes ESG aspects into account.   

More than 300 hectares of former mining land have undergone a reclamation and rehabilitation program and have been revegetated. There is also a post-mining program slated for the future, for which according to current planning, close to Rp 7 trillion has been set aside.     

"We recognize that minerals are a nonrenewable resource, and at some point, they will be depleted following extraction. However, their management must be conducted in such a sustainable manner, as essentially ours is a program for sustainable and safe production. So, we expect to maintain sustainability even after PT Freeport operations cease,” Tony said.   

PTFI addresses not only environmental factors but also attends to social aspects. Every year PTFI carries out direct social investment for Papuan communities, through the provision of free healthcare for 20 years for the 7-tribe people inhabiting Mimika Regency.   

In the educational area, more than 12,000 children are granted free schooling. The Taruna Papua Boarding School is the first of its kind to be established in Papua, providing education, board, and lodging for children at the primary through high school levels, with more than sufficient nutrition, ensured to enable the children to compete with their peers from outside Papua.   

"PTFI also provides education to create MSMEs among the communities surrounding our operation area, and currently around 200 MSMEs that were mentored are generating revenue of around Rp 250 billion. As such at this figure, some have become major businesses,” he ended. 

 

http://www.cnbcindonesia.com/news/20220909141208-4-370763/terapkan-esg-freeport-komit-mereduksi-karbon-30-di-2030

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