Materiality Topics Determination Process
Pupuk Kaltim conducts periodic assessments of material sustainability issues relevant to its business operations, covering Environmental, Social, and Governance (ESG) dimensions. This process adopts a double materiality approach, which consists of:
Impact Materiality
Considering actual or potential impacts, both positive and negative, on society and the environment, based on Pupuk Kaltim's operations and stakeholder expectations throughout the value chain.
Financial Materiality
Assessing sustainability-related risks and opportunities that may affect Pupuk Kaltim's performance, development, and financial position.
Pupuk Kaltim assesses material topics by considering internationally recognized sustainability reporting standards, namely Global Reporting Initiative (GRI) Standards 2021 and AA1000 Accountability Principles: AA1000AP (2018).
Materiality Assessment Mechanism
As a company committed to sustainability principles, Pupuk Kaltim implements a systematic, transparent materiality assessment process that aligns with global standards. This process ensures that the company's sustainability strategy aligns with stakeholder priorities and is able to identify and manage long-term risks and opportunities for the business.
The methodology used includes: Focus Group Discussion (FGD) with stakeholders to provide their respective opinions according to their background of interests.
Standard and Peer Identification
Issue and Impact Identification
Impact Assessment and Validation
Double Materiality Assessment
Materiality Assessment Results
Material Topics Identified
All relevant and aligned with GRI Topic Standards
The review results identified 26 material topics that are all relevant and aligned with GRI Topic Standards. These topics are mapped in a materiality matrix, integrated into the Enterprise Risk Management (ERM) process, and adopt the double materiality principle.
With this approach, Pupuk Kaltim ensures that every material issue is identified comprehensively, data-driven, and reflects the perspectives of various stakeholders. This process becomes an important foundation in formulating sustainability strategies, risk management, and achieving long-term ESG targets. Every stage of this assessment process has been verified by independent external parties.
Pupuk Kaltim is committed to continuously improving the materiality assessment methodology to be able to capture issues that are relevant and have a significant impact on company performance and long-term sustainability.
📖 Further information regarding Pupuk Kaltim's Materiality Assessment process can be found in the Pupuk Kaltim Sustainability Report 2024 pages 72-77