Pertamina's Sustainable Finance Framework: Paving the Way for Green and Transition Projects
Key Ideas
  • Pertamina's debut Sustainable Finance Framework integrates sustainability into financing for Green and Transition projects, aligning with emission reduction goals.
  • Guidelines under the Framework allow for the issuance of green or transition financing instruments across various sectors such as renewable energy and emission reduction.
  • Independent validation from ISS-Corporate confirms consistency with sustainability strategies and alignment with international Green Bond and Loan Principles.
  • Robust governance and reporting processes enhance transparency for investors, showcasing the positive environmental impact of Pertamina's investments.
Pertamina, a prominent Indonesian energy company, has unveiled its inaugural Sustainable Finance Framework to bolster the integration of sustainability goals into its financing strategy. This strategic move is aimed at enabling Pertamina and its subsidiaries to access funding for Green and Transition projects in alignment with the company's broader energy transition strategy. The Framework outlines the criteria for issuing sustainable financial instruments, including loans and bonds, focusing on areas like renewable energy, green hydrogen, emission reduction, and clean transportation. It also supports Pertamina's target of achieving a 32% reduction in emissions by 2030 and aligns with Indonesia's goal of reaching Net Zero Emissions by 2060. The Framework has received a positive evaluation from ISS-Corporate, verifying its harmony with Pertamina's sustainability objectives and international standards such as the Green Bond Principles and Green Loan Principles. Pertamina's commitment to sustainable practices is further underscored by the inclusion of robust governance and reporting mechanisms in the Framework, enhancing transparency for investors regarding the environmental impact of the company's green investments. This initiative, supported by Crédit Agricole Corporate and Investment Bank, solidifies Pertamina's position as a leader in the energy transition and reinforces its contribution to Indonesia's sustainability journey.
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