Abstract
The global and Indonesia energy trend is heading to process of transitioning from fossil fuel to renewable energy (decarbonization) in the purpose of reducing Green House Gas (GHG) effects. Industries as one of the biggest contributors of emission generator expected to participate in this effort, where fuel and electricity play significant roles in running the operation. Many businesses try to participate and state their commitment on this energy transition initiative by increasing the portion of renewable energy within their operation. Meanwhile, business have several uncertainties’ on how the renewable energy will be acquired and will this renewable energy options be available at the time they need it. Campur Plc. (CP) through its subsidiary in Indonesia, PT. Campur Ilmiah (PT. CI) has targeted the entity to reduce 50% of the emission by 2030 with the baseline of 2018, which align with corporate target of 46.2% of emission reduction globally. Uncertainties on achieving this target generated from external and internal factors, and not to forget how to sustainably maintain the achievement. The location of PT.CI in industrial estate need to be considered as limitation because the power and energy supply are regulated. The accessibility, availability and affordability of renewable energy are expected to be handled by the government, industrial estate or other third party in energy business, but the phasing and the achievement up to now has not shown a promising progress. As a business, PT.CI need to have a strategic planning on this energy transition to support the global target as well as shown a positive investment climate in Indonesia. There are four (4) scenarios has been developed and each of the scenarios are explored to identify alternative and possible strategies to still be able achieving the target and how the organization manage these changes. As the conclusion of this research, four (4) strategic imperatives are defined. This research also might be use as the reference of future planning for the similar industries that have the similar target and type of energy mix.
Highlights
Refer to global data of greenhouse gas (GHG) emission by sector in 2016, energy contributed 73.2% of GHG emission with energy used in the industry take 24.2% of it
Campur Plc. (CP) is a UK based company focus in create, make and sell specialty chemicals that deliver real benefits to a range of diverse products including health and beauty, engine lubricants, plastics and many more, is one of the companies that refer to The United Nation Sustainable Development Goals (UNSDG) a key part in shaping their strategy for a sustainable business
CI) challenged and mandated to participated in this global strategy by reducing 50% GHG emission from our Indonesia manufacturing facility, with Year 2018 used as basis comparison for this reduction
Summary
Refer to global data of greenhouse gas (GHG) emission by sector in 2016, energy contributed 73.2% of GHG emission with energy used in the industry take 24.2% of it. Chemical Industry contributed another 2.4% of GHG emission globally. CI) challenged and mandated to participated in this global strategy by reducing 50% GHG emission from our Indonesia manufacturing facility, with Year 2018 used as basis comparison for this reduction. CI need a good strategy for this energy transition to get the best conditions desired by the group as one of the requirements of group investment, as well as support the national GHG reduction target, where currently the location of Indonesia operation have very limited sources of alternative energy. CI growth strategy, especially in accommodating GHG emission target by the group globally, this research expected to have proper planning to face future challenge and condition
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