As we work towards carbon-neutrality, which cannot happen immediately, we look at all available options to reduce the implications that our work has on greenhouse gas emissions, air pollution, and public health. This is done primarily through monitoring, tracing, and mitigating emissions.

The emission calculations we publish are in line with the standardized approach of The GHG Protocol, set out by the World Resources Institute and the World Business Council for Sustainable Development. In the electricity sector, we also provide emissions data annually to the Indonesian Ministry of Energy and Mineral Resources through their Electricity Emission Calculation and Reporting Application (APPLE-GATRIK). 

As we work towards TBS2030, we are also improving these monitoring systems to ensure further transparency and accountability in our operations. In six of our key sites, we have initiated an operational strategy to adopt the GHG emissions data from 2021 and 2022 as our baseline. For newer operations, the year 2023 will serve as the baseline year. This step is crucial for ensuring the accuracy and precision of our future measurements and reports.

TBS is acutely concerned with our environmental impact. This concern is evident in how we are changing our business for the better. Steps include achieving ISO14001 certification and pushing for a higher PROPER rating as a business KPI. TBS is also actively monitoring resource use and emissions across our operations, investing in cleaner technologies, and improving processes to reduce our overall environmental footprint.

While emission reduction remains crucial, we understand the need for a broader adaptation strategy. For TBS, this adaptation strategy includes monitoring changing weather patterns and sea level rise. With weather patterns, we are analyzing potential disruptions to our existing infrastructure due to increasingly extreme events. This information will inform future investments and ensure our operations remain resilient. With sea level rise, TBS is evaluating the risks posed primarily to our coastal facilities. Proactive measures like relocation or infrastructure upgrades are being considered.

Through all of this, we recognize climate change adaptation presents both challenges and opportunities. The transition to a low-carbon economy may pose short-term financial risks as we divest from some traditional assets. Additionally, stricter environmental regulations could impact our operational costs. On the more positive side, however, by embracing renewables and EVs, we position ourselves at the forefront of a rapidly growing market. Investing in sustainable solutions fosters brand reputation and attracts environmentally conscious investors.

One other area of note is the need for improved and robust regulatory frameworks. While we strive for internal compliance, these frameworks will help fast-track adaptation measures. TBS believes in collaborative efforts between industry leaders and the Government to ensure a smooth and responsible transition towards a safe and just future.

We are working to reduce emissions containing ozone-depleting substances from the operation of equipment and the use of materials that damage the ozone layer. Our measures include replacing CFC refrigerants and other equipment with environmentally friendly hydrocarbon materials. These materials have an Ozone Depletion Potential (ODP) value of zero and a Global Warming Potential (GWP) value of 675 tCO2eq/kg. However, there are no calculations that we can show regarding this effort and the calculation methodology.

TBS will work to ensure compliance with evolving regulatory thresholds, improved technologies, and other measures to reduce emissions as much as feasible. That includes emissions from nitrogen oxides (NOx), sulfur oxide (SOx), particulate matter, and mercury released during electricity generation. The Company regularly tests other emissions arising from stationary emission sources. This testing process involves several important parameters, such as particulates, SO2, NOx, HCI, NH3, Pb, Sn, and CO.

Waste incineration can emit similar air pollutants to coal-fired power plants, including PM during combustion, SO2 and NOx, heavy metals (trace amounts of heavy metals like mercury, lead, cadmium, and arsenic might be present in medical waste).