Head of Corporate Sustainability and Governance of United Tractors, Sara K. Loebis and Deputy Chancellor III IPB, Dodik Ridho Nurrochmat signed a memorandum of understanding to reduce carbon emissions with biodiversity programs for the next 5 years, at the Forest Park Campus IPB, Thursday (15/12/2022).

Bogor, December 15th,2022 – At the end of 2022, PT United Tractors Tbk (UT) with the stock code UNTR signed a Memorandum of Understanding (MoU) with the Bogor Agricultural Institute (IPB) in the Forest Park of the IPB Campus, Bogor Regency, Thursday (15/12/2022). The signing of this MoU is related to cooperation in the implementation of the biodiversity program to reduce carbon emissions (carbon set-off).

Head of Corporate Sustainability and Governance of United Tractors, Sara K. Loebis said, through this collaboration, UT and IPB are committed to implementing a biodiversity program to create a carbon sequestration mechanism to achieve UT’s carbon emission reduction target by 2030. Reducing carbon emissions is part of the Company’s target in the application of sustainable business principles through the implementation of environmental, social, and governance (ESG) aspects. In this program, the implementation of ESG is under the pillar of UT’s CSR for the environment namely UTREES (United Tractors for Nature and Environment Sustainability).

“This collaboration is one of the milestones for UT to make a real contribution to the environment around the Company’s operational areas. UT and IPB, with their respective advantages, are committed to exchanging knowledge and technology to jointly support the government’s target of achieving net zero emissions by 2060,” said Sara K. Loebis.

The main program outlined in the MoU between UT and IPB is IPB campus forest conservation covering an area of 20 hectares, with the reforestation of 15,000 trees. In addition, until 2026, UT targets that this collaboration will be able to provide a sustainable environmental impact by preparing other programs starting from basic calculations for reducing carbon emissions, improving facilities in the IPB campus forest environment, conserving flora and fauna including the captive birds of protected fauna such as the Timor Deer (19 deers and Bali Starlings 6 birds) to the development of the edu-ecotourism area.

In addition, UT also pays attention to the welfare and economic sustainability of the surrounding community by developing economic programs through the involvement of farmer groups in the care and management of fruit tree planting which was carried out this year, to provide added value from an economic standpoint for the community.

“I believe that UT’s assistance is desperately needed. There is a Folu Net Sink 2030 target that needs to be achieved by the government with the support of all parties including the private sector. Later, IPB will register UT with the National Registration System (SRN) so that UT can claim the number of carbon emissions that have been suppressed in this program,” said Dodik Ridho Nurrochmat, Wakil Rektor III IPB

Dodik Ridho Nurrochmat added, in this collaboration, IPB will play a role in caring for the trees to calculate the baseline and the amount of carbon emission reduction obtained. From the current basic calculation, 15,000 trees from UT are targeted to reduce the carbon emission burden between 1,200 to 2,400 tons of carbon in a period of 5 to 10 years with a land area of 20 hectares.

As a form of compliance, this collaboration program also receives direct supervision from the Natural Resources Conservation Center (BKSDA) Region 1 Bogor. The Head of the Bogor BKSDA, Lana Sari, said that the government needs more similar programs from the private sector to help the government realize its net zero emission target.

The collaboration between UT and IPB, supported by the Karya Bakti United Tractors Foundation (YKBUT), was realized by planting trees in the forest area of the IPB campus. Seven types of trees are planted, namely Meranti, Honey Jackfruit, Guava Mutiara, Matoa, Rambutan Binjai, Kemang, and Red Guava. The seven types of plants were chosen because they can to absorb high carbon.

Through this collaboration, UT aims to make all of the Company’s social and environmental contribution efforts effective and provide added value to stakeholders and the community. Therefore, the collaboration and integration of the world of education and industry play an important role in responding to environmental and social challenges in the future.

The signing of the MoU was attended by the Dean of the Faculty of Forestry and Environment IPB, Naresworo Nugroho; Head of the Department of Forest Resources Conservation and Ecotourism of IPB, Nyoto Santoso; IPB Campus Forest Park Farmer Group Leader, Sutopo; and UT’s CSR & Communication Department Head, Himawan Sutanto.

 

50 Years of UT, 50,000 Trees for Indonesia, and 10 UT Sustainability Aspirations

On October 13th, 2022, United Tractors celebrated its 50th year as a world-class company in the fields of heavy equipment, mining, and energy which continues to contribute positively to the nation and the country both from business, social and environmental perspective.

The reforestation of 15,000 trees in the IPB Campus Forest Park completed the 50,000 trees target as part of the 50th Anniversary of UT. This reforestation is the Company initiative in preventing extreme climate change and creating a better environmental future for the nation. Tree planting has taken place throughout the year in the Company’s operational area, especially in Sumatra, Kalimantan, Sulawesi, NTT, and Papua.

“As part of the series of UT 50th Anniversary momentum, we launched United Tractors’ 10 Sustainability Aspirations in 2030 as the Company’s road map in implementing a sustainable business and implementing ESG. All of these aspirations can be accessed openly by the public through the Company’s website,” said Sara K. Loebis.

UT’s Ten Sustainability Aspirations for 2030 are divided into three ESG aspects. On the environmental aspect, UT is targeting a 30% reduction in scope 1 and 2 Greenhouse Gas Emissions (GHG), a 22% renewable energy mix to support operational activities, more efficient and effective water management in each business unit category, and solid waste management up to 62%.

On the social aspect, UT supports diversity, equality, and inclusiveness within the Company, achieves zero workforce fatality and an LTI rate of 0.093, and reaches 750,000 beneficiaries through community development programs to create added value.

In the aspect of governance, UT maintains business resilience by increasing non-coal revenue contribution by up to 50%, supporting diversity and inclusiveness at the executive levels, as well as strengthening corporate governance with international standards to maintain the principles of good corporate governance (GCG).

 

United Tractors’ Overview

PT United Tractors Tbk (UT) which is known as the largest heavy equipment distributor in Indonesia has been established since 1972. Currently, UT has grown and has six business pillars, namely Construction Machinery, Mining Contracting, Coal Mining, Gold Mining, Construction Industry, and Energy. As its contributions to the achievement of Sustainable Development targets (SDGs). UT consistently carries out activities to uphold sustainability.

ESG United Tractors

As a world-class heavy equipment, mining, and energy company with more than 50 years of experience in Indonesia, UT is committed to presenting a sustainable future for Indonesia through the effective application of ESG principles by paying attention to the environment, having a good impact on society, and upholding good corporate governance. good corporate governance at all levels of its business operations, as well as optimizing its competencies, expertise, and strategic assets to bring added value to all stakeholders and the Indonesian people.

For more information, please contact:

 

Sara K. Loebis

Head of Corporate Governance and Sustainability Division

PT United Tractors Tbk

Email : ir@unitedtractors.com

Address : Jl. Raya Bekasi Km.22 Cakung, Jakarta Timur 13910

Telp. : (62-21) 3511961, Fax : (62-21) 3441413

Medsos : IG (@unitedtractorsofficial & @ceritadiut)

Website: www.unitedtractors.com