COMPANY PROFILE

As part of LafargeHolcim Group which operates in more than 90 countries around the world with more
than 180 years of experience, Holcim Indonesia has a strong commitment to be the leading and highest-
performing company in the building materials industry in Indonesia. Bringing 15 million tonnes per year
production capacity of cement, Holcim Indonesia presents to meet building material needs.

Holcim’s presence in Indonesia is marked by the operation of four plants in Lhoknga - Aceh, Narogong -
West Java, Cilacap - Central Java and Tuban - East Java. production activities are supported with a wide
network of grinding stations & distribution terminal up to Kalimantan and Sumatera and excellent sales
management & product innovations to offer.

These picture below shows the vision, mission, values and history of Holcim company
 ANALYSIS SUSTAINABLE REPORT OF PT HOLCIM INDONESIA TBK 2016

The GRI Sustainability Reporting Guidelines (the Guidelines) offer Reporting Principles, Standard
Disclosures and an Implementation Manual for the preparation of sustainability reports by
organizations, regardless of their size, sector or location. The Guidelines offer two options for
an organization to prepare its sustainability report ‘in accordance’ with the Guidelines. The two
options are Core and Comprehensive. The focus of both options is on the process of identifying
material Aspects. The Core option contains the essential elements of a sustainability report. The
Core option provides the background against which an organization communicates the impacts
of its economic, environmental and social and governance performance. The Comprehensive
option builds on the Core option by requiring additional Standard Disclosures of the
organization’s strategy and analysis, governance, and ethics and integrity. In addition, the
organization is required to communicate its performance more extensively by reporting all
Indicators related to identified material Aspects.
n this case, writer analyzes the Sustainability reporting of PT Holcim Indonesia Tbk. 2016. PT
Holcim Indonesia Tbk organized the sustainability reporting based on Global Reporting
Initiatives (GRI) G4 by using core criteria. These tables below described the standard that must
be follow for company/organization who use core criteria in its sustainability report.

A. GENERAL STANDARD DISCLOSURE

The General Standard Disclosures are applicable to all organizations preparing sustainability
reports. Depending on the organization’s choice of ‘in accordance’ option, the organization has
to identify the required General Standard Disclosures to be reported. The General Standard
Disclosures are divided into seven parts: Strategy and Analysis, Organizational Profile, Identified
Material Aspects and Boundaries, Stakeholder Engagement, Report Profile, Governance, and
Ethics and Integrity.

In presenting the general standard disclosure in sustainability report, Holcim Indonesia make it
interesting by using great design, easy to understand and made it in accordance to the standard
given. Writer also appreciate the great performance of sustainable development of Holcim
Indonesia in 2016 and also the concern of Holcim Indonesia about the importance of the
sustainable report for user and the involvement of stakeholders in defining material aspect of
reporting and to achieve the sustainable development.

In addition of these sustainable report of Holcim Indonesia there are several aspect that is not
detail presented in the sustainability report which are part organizational profile and
governance. The standard require company to provide total number of employees by
employment type and gender also net sales or revenue in organizational profile part and
require to include: The role of the highest governance body in setting the organization’s
purpose, values, and strategy, The competencies and performance evaluation of the highest
governance body , The role of the highest governance body in risk management , The role of
the highest governance body in sustainability reporting, The role of the highest governance
body in evaluating economic, environmental and social performance in governance part.
Regarding these aspecst Holcim Indonesia do not include detail information about these parts.
Furthermore in part report profile present that the sustainable report of Holcim Indonesia do
not audited by external auditor so there is no assurance for user to rely on this report of Holcim
Indonesia.

B. SPESIFIC STANDARD DISCLOSURES

The Guidelines organize Specific Standard Disclosures into three Categories - Economic,
Environmental and Social. The Social Category is further divided into four sub-Categories, which
are Labor Practices and Decent Work, Human Rights, Society and Product Responsibility. The
organization’s sustainability report presents information relating to material Aspects, that is,
those Aspects for which impacts are identified as material by the organization. Material Aspects
are those that reflect the organization’s significant economic, environmental and social
impacts; or that substantively influence the assessments and decisions of stakeholders.

In presenting the spesific standard disclosure in sustainability report, Holcim Indonesia makes it
accordance with standard and also easy to understand. holcim have to report the present
information for each identifed material aspects. The information provided should be diclosed in
accordance with the standard, Specific Standard Diclosures. But the information provided often
not complete and not detail as standar GRI G4 required.

CATEGORY: ECONOMIC
The economic dimension of sustainability concerns the organization’s impacts on the economic
conditions of its stakeholders, and on economic systems at local, national, and global levels. In
this aspect holcim Indonesia report indirect economic impact with consider as material and
presented the condition of economic in the holcim Indonesia. It described that Holcim
Indonesia focus on education , helath, support for SMEs, infrastructure, and environmental
conservation on its social investment. Many kind of activities have been done by holcim in
order to contribute to society for better futute and sustainability for all people that represent
by their motivation for the worlds build better. this category already present well and
accordance with the criteria required.

CATEGORY: ENVIRONMENTAL
The environmental dimension of sustainability concerns the organization’s impact on living and
non-living natural systems, including land, air, water and ecosystems. This category are very
material for construction company like holcim. In aspect materials GRI G4 require the company
to report total weight or volume of materials used to produce products and already state
information about this good enough. It states holcim Indoensia will find a way to reduce the use
of material in produce cement. Then, for energy intensity the sustainable report of Holcim
Indonesia do not include all information require in the standard where its already put as part of
its sustainable report of Holcim in its index. For example the ratio uses of energy should be
report consumption within the organization, outside of it or both not just only the ratio of
energy intensity like holcim. The assumption , methodologies of rductions energy, watermust
be provided. Next the standard G4-EN12 also do not detailed and not completed described. For
emission category no data qualitative therefore it’s difficult to understand what the source of
emission , assumption, and the methodologies.

CATEGORY: SOCIAL
The social dimension of sustainability concerns the impacts the organization has on the social
systems within which it operates. The Social Category includes the sub-Categories: Labor
Practices and Decent Work, Human Rights, Society and Product Responsibility . in aspect anti
corruption based on G4-SO4 holcim Indonesia does not include the total number employee that
organization’s anti corruption communicated and trained .

CONCLUSION

PT Holcim Indonesia Tbk have been making the sustainable report for several years and
improve the reporting year by year. According to writer’s analysis about sustainable reporting
of PT Holcim Indonesia Tbk 2016, writer conclude that Holcim Indonesia report not fully
accordance with Global Reporting Initiatives (GRI G4). There are so many information that
require by standard do not report completely and detailed. Writer also found that the holcim
Indonesia already have commitment to be sustain in every aspect of their activities and they
have great plan and performance toward suitainable development. But, to show their
seriousness and commitment Holcim Indonesia need to prepare sustainable report fully in
accordance to standard while keep maintaining the quality of their performance. Fully
accordance means every information requires by standard must be clearly and detailed
present in the sustainable report. Writer suggests the Holcim Indonesia to make the billingual
report to reach not only local stakeholders but also foreign stakeholders and also audit their
sustainability report by auditor to ensure the reliability of reporting.