Sustainability Governance
As the lead governing bodies of Lippo Karawaci, the BoD and BoC provide strategic direction for the Group
As the lead governing bodies of Lippo Karawaci, the BoD and BoC provide strategic direction for the Group, ensuring that its approach to material ESC issues aligns with the interests of the business and stakeholders. The BoD bears ultimate responsibility for the Group’s ESG performance, while the BoC serves as a supervisory and advisory body to the BoD. The ESG Committee is appointed by the BoD to set the direction for the Group’s ESG strategy, policies, and initiatives, as well as exercise oversight over the Group’s ESG performance. Chaired by the Group CEO, the ESG Committee consists of BoD Members and Senior Executives who hold positions of responsibility and/or possess expertise which are relevant to the Group’s ESG strategy and policies. The ESC Committee periodically reports to the BoD and BoC to seek guidance on ESC priorities and workplans, and to provide updates on the Group’s ESG performance. The ESG Steering Group is the platform through which the Group’s ESG strategy is operationalized. Led by the Group Head of Sustainability, it comprises key representatives from our business units and relevant corporate functions, who are responsible for executing workplans approved by the ESG Committee and monitoring ESG performance in their respective areas of operation. These corporate functions include Sustainability, Risk Control and Assurance, Corporate Secretary, Human Resources, Investor Relations, and Corporate Communications. Our business units, with support from the relevant corporate functions, are held accountable for their ESG performance through regular reporting to the ESG Committee via the ESG Steering Group.
Climate Risk Management
Building on our inaugural TCFD Report, we have enhanced our disclosures by focusing on the quantification of climate risks
Building on our inaugural TCFD Report, we have enhanced our disclosures by focusing on the quantification of climate risks, in terms of scenario analysis and climate-related financial impact assessment. We conducted our first climate scenario analysis to forecast the potential impacts of identified physical and transition risks to our businesses. Our scenario analysis was based on 2030 and 2100 timelines, under RCP 2.6 and RCP 8.5 scenarios (where temperatures are projected to reach to 2°C and 4°C by 2100 respectively). The analysis was based on Indonesia’s country-level climate projections. We conducted a physical risk analysis of 113 assets at the property-level (including townships, malls, hospitals, hotels, office buildings) to assess the financial impact of different types of physical risks at each geographical location under the RCP 8.5 scenario. We conducted a bottom-up RFI on climate-related incidents and costs faced by our businesses in 2022 and 2023, to get a preliminary sense of the financial cost of climate mitigation/adaptation (cost to fix or prevent damage) and business disruption due to climate change. Lastly, we reviewed our management responses to key climate risks/opportunities at our ESG Committee meetings. We plan to discuss our climate agenda more comprehensively at various governance platforms and with our business units going forward.
Sustainable Procurement Policy
We have formulated a Group-wide Sustainable Procurement Policy and Supplier Code of Conduct,
We have formulated a Group-wide Sustainable Procurement Policy and Supplier Code of Conduct, which outlines our approach to conducting business with a focus on ethics, labor and human rights, health and safety, and environmental sustainability. This policy seeks to enhance governance across our value chain, such as by mitigating legal and reputational risks stemming from supplier misconduct. We continue to make improvements to procurement policies and processes, with a particular focus on supply chain resilience, cost management, and digitization. Several business units have transitioned from a paper-based approval process to utilizing digital SaaS solutions. Additionally, we have incorporated Google Forms to facilitate communication with vendors for better procurement management and integrating digitalization into our processes to increase transparency and accountability between us and our suppliers.