We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: The Indonesian Coal Mining Association (APBI) supports a significant role for coal in the future energy mix, contrary to IPCC recommendations. APBI has also expressed negative positions on carbon taxes in Indonesia, although there is limited evidence of transparent engagement with specific climate-related regulations in recent years.
Top-line Messaging on Climate Policy: APBI has limited top-line engagement with climate policy. In a March 2023 newsletter, the organization appeared to support the Indonesian government's net-zero emissions by 2060 target. In a December 2022 newsletter, the company acknowledged, but did not take a clear position on Indonesia’s Nationally Determined Contribution (NDC) targets, as outlined by the Paris Agreement. APBI did not explicitly support the Paris Agreement or the need for government regulation to respond to climate change.
Engagement with Climate-Related Regulations: APBI appears to have limited and mixed engagement with climate-related regulation from 2021-2023. According to an issuu article published in November 2021, the organization opposed the Indonesian carbon tax of 2021, requesting for it to be ‘delisted from the tax bill’. In contrast, APBI appeared to support the Indonesian government’s GHG emissions targets in a July 2022 newsletter, although the specific targets supported by the organization were unclear.
Positioning on Energy Transition: APBI appears to have engaged negatively on the energy transition, supporting a sustained role for coal in the energy mix. According to the APBI’s corporate website, accessed in April 2023, the organization’s mission is to ‘promote coal production and utilization’. Furthermore, in a May 2021 newsletter, APBI appeared to advocate for the Indonesian government to reduce royalty taxes on the Indonesian coal mining sector. The IPCC Mitigation of Climate Change report, published in April 2022, recommends a decrease in the use of coal without carbon capture and storage (CCS) by 91% by 2050; APBI’s positions appear to be in misalignment with this aim.