Our business operations have a direct and indirect impact on the environment. We are committed to contributing to improving environmental conditions and sustainable development. Our programs in this pillar focus on sustainable materials, waste management, and energy efficiency.

All material choices will have an impact on the environment and people. We are committed to using our resources responsibly to reduce our environmental impact and to protect our ecosystem. We continue to choose and innovate on materials with lower negative impact. By choosing suitable materials for our products and packaging, we hope to help accelerate our strategy to operate in a sustainable manner.

We recognize the need to address the environmental impact of waste generation throughout our business and supply chain. We pursue the Reduce, Reuse, and Recycle approach to minimize our impact and encourage our employees to participate in these practices. We are also aware that our value chain in the clothing industry significantly impacts waste generation, especially in manufacturing and post-consumer activities. We will continue to increase our stakeholders' awareness of sustainable practices to help minimize textile waste and its environmental impacts.

Efficiency is the key to our strategy in reducing our unsustainable energy consumption. In doing so, we are maximizing energy-efficient technologies, optimizing the logistics vehicles' occupation and routes, and consolidating Support Center activities into one building.

Some actions taken to reduce the energy consumption are as follows:

1. Implementing electricity efficiency campaign and socializing the policy at the Support Center. The policy requires employees to switch off all unused electricity appliances, utilize low-energy devices, and maintain discipline in electricity efficiency;
2. Maximizing the use of energy-efficient technology such as LED lighting throughout our stores and Support Center; and
3. Optimizing the vehicle occupation and routes of company-owned trucks to reduce the fuel consumed in transporting merchandise between stores and the Distribution center.
   
   

Our other initiative is to invest in renewable energy by purchasing Renewable Energy Certificates (RECs) from the national grid (PLN). We started to source REC from Geothermal Power Plant. In the first phase, it was estimated that the amount was equivalent to the electricity consumption in our Support Center, Distribution Center, and 8 stores in Java. We continue to extend, expand, and diversify the renewable energy sourcing.

Climate Change

At Matahari, we are committed to mitigating the negative impact of climate change by reducing GHG emissions within our operations. Since energy consumption was our operations' primary source of GHG emissions, we focused our GHG emissions reduction initiatives on reducing our non-renewable energy consumption.

Several initiatives include the enacting electricity efficiency policy, shifting to energy-efficient lighting, optimizing logistics vehicle routes, and carrying out campaigns to save energy.

Water Usage

While our operations do not use a significant amount of water, we are aware of the importance of water conservation and have the initiative to increase our efficiency in water usage. We use clean water for our activities in all sites: stores, Distribution Center and Support Center from the Local Water Supply (PDAM) and groundwater.