LPKR Introduced a Range of Initiatives to Strengthen ESG Practices in 2022

Jakarta, 6 September 2023 - Building on the success of its previous sustainability governance efforts, PT Lippo Karawaci Tbk. (LPKR), Indonesia’s leading real estate and healthcare platform by revenue, enhanced its sustainability governance structure in 2022 by formalizing the roles and responsibilities of the Environmental, Social, and Governance (ESG) Committee.

In addition, LPKR established an ESG Steering Group and a dedicated Group Sustainability Function to coordinate ESG workflows across all levels and business units. The Company also took significant steps to integrate climate-related risks and opportunities into its enterprise risk management and business strategy, in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

LPKR conducted bottom-up climate risk assessments across various asset classes and timeframes, laying the groundwork for stronger mitigation plans in response to climate change impacts. As a signatory to the United Nations Global Compact (UNGC), LPKR has embedded the UNGC’s Ten Principles, covering human rights, labor, environment, and anti-corruption, into its corporate policies.

The 2022 Sustainability Report builds upon the disclosures made in the 2021 report, with expanded reporting coverage and enhanced disclosures aligned with several global standards and frameworks, including: the Global Reporting Initiative (GRI), UNGC and the United Nations Sustainable Development Goals (UN SDGs), TCFD, the Sustainability Accounting Standards Board (SASB), the World Economic Forum (WEF) Stakeholder Capitalism Metrics, and regulations set by the Indonesian Financial Services Authority (OJK).

In 2022, LPKR also prioritized key sustainability focus areas such as Decarbonization, Water Circularity (including increased reuse of treated wastewater and rainwater for water consumption and processing), Social Impact through the launch of the “Lippo Untuk Indonesia PASTI” framework (PASTI stands for Pintar – Education, Asri – Environment, Sejahtera – Social Welfare, Tangguh – Health, and Independen – Economic Empowerment), and Human Capital Development, reflected in the 40% representation of women at the senior executive and managerial levels.

Group CEO of LPKR, John Riady, stated “At LPKR, we view sustainability as central to our mission and value proposition. It is a critical part of our transformation journey, as we strive to better serve our stakeholders, strengthen business resilience, and capture new opportunities. For this reason, we are committed to accelerating the integration of sustainability across the organization through greater accountability and ambition.”