• LPKR sets measurable ESG targets under 2030 Sustainability Agenda to drive ambition and accountability in climate action, social impact, and good corporate governance.

• LPKR’s 2022 Sustainability Report highlights the various initiatives undertaken by the Company to strengthen its ESG performance and disclosures, including through the formalization of its sustainability governance structure as well as the integration of climate risks and opportunities into its business strategy.

Jakarta, 08 June 2023 – PT Lippo Karawaci Tbk ("LPKR" or "Company"), Indonesia’s leading real estate and healthcare platform based on total revenue, is proud to announce the launch of its 2030 Sustainability Agenda, as published in its 2022 Sustainability Report. Under its 2030 Sustainability Agenda, LPKR has publicly committed to achieving a holistic set of Environmental, Social and Governance (ESG) targets that will drive the Company’s sustainability performance, create positive impact for stakeholders, and ultimately advance Indonesia’s 2030 Agenda for Sustainable Development.

John Riady, LPKR Group CEO, said, “Lippo Karawaci is committed to pursuing sustainable growth and delivering large-scale positive impact to Indonesians throughout the archipelago, including future generations to come. We are proud to announce the launch of our 2030 Sustainability Agenda, which articulates our ESG ambitions through concrete outcomes that deliver meaningful impact for our stakeholders. By tracking our progress against measurable goals, we also seek to improve the transparency and accountability of our ESG performance. 

Our 2030 Sustainability Agenda aligns our corporate policies and business growth plans with our sustainability objectives and strategy, and ensures that we take a longer-term view on ESG as we transition towards a more sustainable future. This agenda also dovetails with our ongoing efforts to strengthen our Company’s operational performance and financial sustainability across all business segments. We look forward to working with our stakeholders to collectively achieve our goals in this new chapter in our sustainability journey.”

2030 Sustainability Agenda 

LPKR’s 2030 Sustainability Agenda is built on its Sustainability Framework, which outlines its ESG priorities across four key pillars – 1) Enhancing Quality of Life, 2) Caring for Our Environment, 3) Investing in Our People, and 4) Championing Best Practices.

       1. Enhancing Quality of Life 

Driving sustainable economic growth, providing socioeconomic opportunities for local communities, and innovating to enrich the customer experience. 

• At least 90% of sold homes priced under Rp 2 billion each year
• Hospitals and clinics in over 60% of provinces in Indonesia, with over 40% of hospital portfolio located outside of Java
• 3,000 community activities under PASTI by 2030 (cumulative) [2022 baseline: 432 activities]
• 30,000 MSMEs supported under PASTI3 by 2030 (cumulative) [2022 baseline: 2,989 MSMEs.

      2. Caring for Our Environment

Improving resource efficiency, developing greener products and processes, and mitigating climate risks while capitalizing on new opportunities.

• 35% reduction in building emissions intensity by 2035, with 15% reduction by 2030 [2019 baseline: 0.164 ktCO2e/m2]
• 20% of water consumption from sustainable sources by 2030
• 30% increase in volume of treated water from sustainable sources5 by 2030 [2019 baseline: ~520,000 m3]
• Double amount of waste diverted from landfill by 2030 [2022 baseline: ~1,400 tons] 

      3. Investing in Our People 

Creating a fair and inclusive workplace, prioritizing health, safety and well-being, and empowering staff to unlock their full potential.

• Zero fatalities and high consequence injuries
• ≤ 1 Total Recordable Injury Frequency Rate (TRIFR)
• Average 40 training hours per employee
• Double ESG training hours by 2030 [2022 baseline: 800 hours]

      4. Championing Best Practices

Upholding the highest standards of corporate governance, promoting sustainable practices across the value chain, and improving accountability and transparency in ESG performance.

• 100% completion rate for training on Code of Conduct and anti-corruption policies
• Zero cases of non-compliance with laws and regulations resulting in fines and/or sanctions
• Zero legal cases of corruption, fraud and bribery
• Formulate Group Sustainable Procurement Policy, and socialize requirements to vendors

2022 Sustainability Performance

The Company is pleased to publish its 2022 Sustainability Report, which takes stock of its ongoing progress to address the ESG issues that are material to the business and stakeholders, and highlights key initiatives that support its 2030 Sustainability Agenda. The 2022 Sustainability Report builds on the disclosures from the Company’s inaugural Sustainability Report published in 2021, with an expanded scope of reporting and additional disclosures in line with the following reporting standards and frameworks: Global Reporting Initiative (GRI), United Nations Global Compact (UNGC) and Sustainable Development Goals (UN SDGs), Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB), World Economic Forum (WEF) Stakeholder Capitalism Metrics, and Financial Services Authority of Indonesia (OJK) Regulations.

Jonathan Lian, LPKR Group Head of Sustainability, said, “At Lippo Karawaci, we view sustainability as core to our mission and value proposition. It is a critical aspect of our transformation journey, as we strive to serve our stakeholders better, enhance business resilience, and seize new opportunities. As such, we are committed to accelerating the integration of sustainability into our organization through greater accountability and ambition. 

In 2022, we enhanced our sustainability governance structure by formalizing the roles and responsibilities of the ESG Committee, as well as establishing the ESG Steering Group and Group Sustainability Function to coordinate ESG workstreams across all levels and business units within the Company. In addition, we have taken steps to integrate climate risks and opportunities into our enterprise risk management system and business strategies, in line with the TCFD recommendations. We conducted our first bottom-up climate risk assessment across various asset classes and time horizons to prepare more robust mitigation plans in response to the impact of climate change. As a new UNGC signatory, we have also incorporated the UNGC’s Ten Principles on human rights, labour, environment, and anti-corruption in our corporate policies. Lippo Karawaci is keen to support the UNGC’s agenda by promoting responsible business practices and advancing the UN SDGs throughout our ecosystem.”

Other 2022 highlights include:

      - Decarbonization

• Developed Group-wide decarbonization strategy with business unit-level roadmaps
• Enhanced emissions reporting to include Scope 3 emissions, with plans to further expand Scope 3 coverage

      - Water Circularity

• Increased usage of recycled wastewater and harvested rainwater for water consumption (15%) and water treatment (~620,000 m3)

      - Social Impact

• Launched Group-wide framework for community support and engagement dubbed “Lippo Untuk Indonesia PASTI” to amplify social impact through alignment with Group’s priorities and targets. “PASTI” is the acronym for Pintar (Education), Asri (Environment), Sejahtera (Social), Tangguh (Health), and Independen (Economic Empowerment).

      - Human Capital

• 40% female representation at senior executive and manager level
• Maintained TRIFR below 1
• Provided 38.8 training hours per employee on average, including 800 ESG training hours in total