Environment
Operating Sustainably
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.
The Use of Eco-Friendly Materials
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.
Waste Management
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.
Energy Efficiency
Efficiency is the key to our strategy in reducing our unsustainable energy consumption. In doing so, we are maximising energy-efficient technologies, optimising the logistic vehicles’ occupation and routes, and consolidating Head Office activities into one building.
Some actions taken to reduce the energy consumption are as follows:
1. Implementing electricity efficiency campaign and socialising the policy at the Head Office. The policy requires employees to switch off all unused electricity appliances, utilise low-energy devices, and maintain discipline in electricity efficiency;
2. Maximising the use of energy-efficient technology such as LED lighting throughout our stores and Head Office; and
3. Optimising the vehicle occupation and routes of company-owned trucks to reduce the fuel consumed in transporting merchandise between stores and the Distribution centre.
Other Topics
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 enacted electricity efficiency policy, shifting to energy-efficient lighting, optimising logistic vehicle routes, and carrying out campaigns to save energy.
We purchased Renewable Energy Certificates (RECs) in 2022, 2023, and 2024 for our renewable energy adoption efforts and offsetting a portion of our Scope 2 GHG emissions.
In 2024, we purchased 8,400 MWh- equivalent of RECs, which were sourced from the Hydrobased Power Plant Cirata. This number covers the electricity consumption amount in our Head Office, Distribution Center, and 16 stores.
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 Head Office from the Local Water Supply (PDAM) and groundwater.