PT Chandra Asri Petrochemical Tbk (Chandra Asri) has been awarded the International Sustainability and Carbon Certification (ISCC), a globally recognized certificate for producing environmentally friendly products.
With this certification, Chandra Asri’s facilities are now compliant with standards for processing bio-feedstock into bio-based products such as bio-propylene, bio-ethylene, bio-crude C4, and bio-pygas.
This achievement supports Chandra Asri’s efforts to transition to more sustainable alternative feedstock materials. Bio-based feedstock has a lower carbon footprint because it is derived from plants that absorb carbon from the atmosphere.
This process creates a closed-loop system where the carbon dioxide released during production is balanced by the carbon absorbed during plant growth, reducing greenhouse gas emissions.
Asri Phuping Taweesarp, Director of ESG & Sustainability at Chandra, expressed optimism about the plans for transitioning to bio-feedstock as an alternative raw material.
“By using bio-based feedstock, we open up opportunities for downstream chemical industry partners to jointly develop a green chemical industry ecosystem. It is also one way to implement our sustainability commitment,” he stated, on October 13, 2023.
Over the past year, Chandra Asri has improved its MSCI rating, moving from BB to BBB. Additionally, the company has maintained its status as a “low-risk” entity according to Sustainalytics, with a decrease in its ESG risk level from 17.7 to 16.6. Chandra Asri’s stock (TPIS) is also listed in the IDX ESG Leaders group, as announced by the Indonesia Stock Exchange.
“Chandra Asri’s efforts to obtain ISCC certification and enhance its ESG rating affirm our dedication as a sustainable business partner,” Phuping added.
Chandra Asri had previously explored potential partnerships with PT Nippon Shokubai Indonesia (NSI) to maximize the asset footprint, core competencies, and technology of both companies. This collaboration aims to establish a new green supply chain at Chandra Asri and NSI’s facilities in Cilegon, Banten, including the production of bio-based products.