COMMUNICATION ON PROGRESS

Transcription

1 COMMUNICATION ON PROGRESS PT RAJAWALI CORPORA Page 1

2 I. COMPANY IDENTITY Company Name PT Rajawali Corpora Date May 1st, 2014 Address Menara Rajawali Kawasan Mega Kuningan Lot 5.1 Membership date Jakarta Country Indonesia Number of employees April 8 th, 2006 ± persons (Total Group) Contact name Y.W.Junardy Contact Position President Commissioner Sector Investment Holding Company Contact telephone no. Brief description of nature of business PT Rajawali Corpora is an investment holding company of Rajawali Group operating in diversified industries with business units in hotels and resorts development, land and air transportation, agriculture (palm, sugar, rubber, and corn plantation), coal, gold, and iron sands mining, broadcast media, consulting and publishing media, infrastructure, and IT Services. The Group covers approximately 50,000 employees. Statement of continuing support PT Rajawali Corpora is proud to be the member of the United Nations Global Compact. We are committed to the Global Compact initiatives and uphold its ten principles pertaining to human rights, labor rights, protection of the environment and corporate governance. We believe that by adhering to this core set of universal values which are fundamental in meeting the socio economic needs of the world, we would be able to foster sustainable growth. Our commitment is also reflected in our participation in collaborative actions and full support to the operations of Indonesia Global Compact Network by providing office facilities, executive resources as well as operating funds in order to advance the GC Principles in Indonesia. Peter Sondakh Chairman & CEO PT Rajawali Corpora Page 2

3 Rajawali Corpora s Vision and Mission : Vision : To become an outstanding reputable company that creates and adds value to our stakeholders Mission : Optimizing shareholders value. Delighting customers with superior products and services. Inspiring, empowering and caring for all employees. Supporting the community and environmental sustainability. Page 3

4 II. IMPLEMENTATION OF UNGC S 10 PRINCIPLES HUMAN RIGHTS PRINCIPLE 1 PRINCIPLE 2 PRINCIPLE 3 BUSINESS SHOULD SUPPORT AND RESPECT THE PROTECTION OF INTERNATIONALLY PROCLAIMED HUMAN RIGHTS BUSINESS SHOULD ENSURE THAT THEY ARE NOT COMPLICIT IN HUMAN RIGHTS ABUSES BUSINESS SHOULD UPHOLD THE FREEDOM OF ASSOCIATION AND THE EFFECTIVE RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING Respect for human rights is a fundamental principle of practicing good management and being a responsible business. At Rajawali, the implementation of human rights is reflected in the company philosophy, values, policies and code of business conducts covering the roles of management and employees as well as the advancement opportunity, competitive compensation and benefits, work environments, and obligation to the community in location where we are operating (Corporate Social Responsibility). Implementations: Framework: Corporate Governance The Governance framework is designed to provide the Rajawali Corpora Board, the Business Unit Boards and the RC Group s employees with a structure by which: o the business is conducted o decisions are presented and approved o employees conduct themselves Rajawali Corpora is committed to uphold its Corporate Governance to: o create Shareholder Value o protect individuals provides ground rules in which management can operate o part of Risk Management o provide good control environment o provide good business practice where it is structured and focusing on core principles o establish credible structure/credibility assisting to attract solid, long term investors The Rajawali Governance Framework provides empowerment to the Business Units Investments within the approved risk tolerance levels. At the Holding level, Rajawali Committee and/or Rajawali Board approve the following: o Strategy, Business Plan, and Annual Budget o Fund raising / equity changes Page 4

5 o Pledging of assets / off balance sheet debt o Purchase and sale of major assets o Executive appointments and exits o Risk profile o Executive Compensation, appointments and KPIs o Investment Business Cases o Financial Audits and Governance o Environment Policies and compliance o Code of Conduct o Approval Limits o Dividend Distribution Policy o Stock Option Plans and Profit Sharing o Group Risk Framework With the above approvals from the Holding level, Governance is established. Business Units operating within the guidelines uphold Rajawali Governance. The Governance Framework had been reviewed and updated last December 2014 to define and establish the 5 pillars of RC Corporate Governance which focus on accountability, fairness, transparency, independence and responsibility. Further, the new framework had put emphasis on the following key governance requirements: o Risk portfolio profile & Management o Self-Assessment Performance Evaluation of Board and Committees o Confidentiality of Information o Whistleblowing Policy & Program o Sustainability & Environment Issues as Part of Strategic Formulation o Annual Review of Corporate Governance Manual and alignment with key stakeholders Process: Corporate Governance The Corporate Governance, Policy, and Code of Business Conduct are in place and implemented across all Business Units. The Governance document has been reviewed and updated once a year and served as a guideline for the management and employees in conducting the business throughout the Group. The Company policies are also reviewed and updated regularly. o The mechanism process of updating the Corporate Governance documents commences in every July but may be updated as the business environment and operations may warrant it. Governance office would first collect inputs from the RC and business internal audit departments, along with written and verbal inputs from few relevant General Managers in each business unit and each MD office. Based on the inputs, Governance Office will prepare a proposal for Governance changes. Through few rounds of review with GM and MDs, Page 5

6 Strategy and Governance office will then finalize the proposal. Based on the summary, the Corporate Governance manual is updated. o For 2014, the new Corporate Governance Manual had been launched incorporating the new organization structure and enhancements reflecting Rajawali s Strategic Direction. Formal briefings had been launched in April 2014 and the changes in the Corporate Governance Manual included the following: - Reporting and Analysis - Insider Trading - Investment Road Show - Key Performance Indicators (KPI) - Environment Management - Shareholder s Right - Physical Security o Training on Corporate Governance is conducted once the Governance manuals are updated. The programs are conducted throughout relevant people within the Group. - In 2014, governance training was completed in April In 2015, governance training and forum is planned to be held in June o In February 2012, Corporate Governance department improved the program into developing Governance Online where BU can submit Business Case, Business Plan, Material Contract and Debt Facility. Since then, almost all submissions of Business Case, material contracts and debt facilities are administered through Governance online. The online methodology simplifies the needs of face-to-face meeting and allows for better tracking of documents. Not necessarily replaced the scheduled meeting, but to shorten the process. Each Business Unit can also track their submission and follow the status so that transparency in the process is upheld. As an improvement of governance online in 2014, Business Case Closing and Project Identification Form have also been made online. o In January 2015, review and evaluation of the procedures for management of new investments and divestments had been started as well as the discussions with the Investment Team on the enhancements of the procedures which will subsequently be updated on the governance online. o The Corporate Governance department governance e-learning was launched since This online learning system is a facility where every employee can access, take personal quiz, and update their Governance documents online via Company s intranet portal. The first phase of the e-learning was launched on 3 key topics: Strategy Plan, Business Plan and Business Case. The 2 nd phase will Page 6

7 be launched for other sections such as Material Contract and Banking Signatory in o Corporate Governance Department also communicates their progress by publishing Governance Reminder which is published quarterly via the Intranet portal of Rajawali. In 2014 Governance survey is being conducted for almost all business units in Rajawali: Property, Express, Premiair, RC Foundation, Archipelago, Green Eagle and Velo and results are shared to the RC and business management. A similar exercise will be held in 2015 together with the launch of Board & Committees Self- Assessment as well as the Whistleblowing Program. The Self-Assessment would include list of questionnaires designed to help the stakeholders gauge the effectiveness of the Board & Committees performance relating to the following areas: - BOD effectiveness (independence, competence & Succession Planning) - Committee effectiveness - Planning and Leadership - Regulatory & Compliance - Financial Stewardship - Human Resources Stewardship - Performance Monitoring and Accountability - Risk Management o Governance Compliance reviews will be carried out in 2015 at RC and business unit levels covering Finance, IT, Tender & Purchases as aligned with the Internal Audit & Governance Plan. Embedding Management Responsibilities To establish corporate accountability, exercise fair, consistent treatment and transparency, the company has reorganized the Corporate Committees each chaired by Managing Director level: o Human Resources Committee. This Committee is responsible for ensuring competitive and consistent remuneration within the group. Approval through the Committee includes: competitive salary structure in line with the industry specifics, executive compensation and bonuses, employee benefits and prerequisites, employee development programs, and employee stock option plan. o Ethics Committee This Committee is responsible for enforcement and implementation of Business Conducts and Practices throughout the Group. It also updates the Policy as required and handles any allegations of misconduct. Page 7

8 o Environment and Sustainability Committee Established in 2012, this committee is responsible for ensuring that all policies relating to sustainability are relevant and effective and for assessing how successfully each Rajawali invested business unit is able to implement policy, set realistic goals, and monitor performance. o Investment Committee This Committee is responsible to evaluate, approve, recommend key investment, divestment and related activities. o Audit and Risk Committee The Audit and Risk Committee is responsible to assist the RC Board in fulfilling its oversight responsibilities. The AC reviews the system of internal control, risk management, corporate governance processes, financial reporting, audit process (internal and external) and the Group s process for monitoring compliance with laws and regulations. Rights to Equal Employment Opportunity & Non Discriminatory Treatment Written policy is in place and implemented across Business Units. The policy defines that all hiring process, promotion, and business decisions are taken strictly on qualifications, business imperatives, and merit. Rights of Workers Rights of Workers are stipulated in the Human Capital Policy. It covers, among others: o Health & Safety Rajawali Corpora has established comprehensive and adequate allowance including medical, transportation, health assistance, subsidy/assistance & emergency loan, safety, and security procedures. - Since 2012, Rajawali Corpora also conducts Tali Kasih program as part of Employee Benefits Scheme in which adequate funds or gifts are given in the event of marriage, bereavement, and birth. - For work safety program, Rajawali Corpora has also provided comprehensive personal insurance for employees that travel often during work, and for all people managers. - This comprehensive allowance scheme is established so that the employees can have a favorable working condition and thus, it may then support their well-being. The provision and amount of allowances may differ in Business Units by considering the industry common practices and requirements. Page 8

9 - Special field training is regularly conducted for plantation workers. o Education Rajawali Academy Every employee is eligible to get training in order to develop their skills and competency to support company objectives. In the beginning 2014, Rajawali Academy that caters for employees education and knowledge management initiatives was established. The Academy provides a platform for employees to grow productively by holding assessment, development, sharing knowledge, and clear career development path. Some examples of the Rajawali Academy programs: 1. Rajawali Academy Leadership Program a. In 2014, Rajawali Academy conducted feedback assessment for leaders (360 degree feedback) for all people managers in Rajawali Corpora. b. Based on the feedback, the leaders underwent the leadership program that pinpointed the theory of better leaderships and better teams c. Following up with the theory-based classroom sessions, the leaders were encouraged to practice the theory on the field work of Team Synergy program (leadership role-play) d. To further enhance the skills, the leaders are accommodated through Leaders Café program, once every three months. e. This leadership program will continue throughout Rajawali Academy Knowledge Management sessions. Some examples: a. Beginning 2015, every once a month there are Rajawali Academy public lecture program presented by internal subject matter experts, with themes ranging from technical skills (e.g., Control Self Assessment), soft skills (e.g., Keep Calm and Be Creative), to actual-based issue/update (e.g., Changes in how to fill out the individual tax form). b. Beginning 2015, there have been a weekly session of Rajawali Academy Sharing Session, whereby the internal subject matter experts are required to share their knowledge to relevant audience in the Company. Topics are diverse, ranging from experience-based sharing (e.g., The Sweat and Tears in Mining Field), relationship-based sharing (e.g., HR Industrial Relations), awareness issue (e.g., IT Security awareness), through empowerment issue (e.g., Professional Women at Work). c. Security gathering was conducted for all business units and Holding level in October 2014 at JW Marriot Hotel, Jakarta. This Page 9

10 training was a collaboration with POLRI, with the theme Sistem Manajemen Pengamanan dan Situasi Aktual Kamtibnas (Security Management System for the Real World), designed to develop and expand the knowledge and skills for all security personnels. d. In 4 April and 27 November 2014, Rajawali Academy conducted HC Forum for all HR business units, with a point of discussions Good To Great to better leverage the skill of leaderships on all Rajawali Group and HR matters such as Talent Management Systems, HR Business Partner & HR Competencies and HR Industrial Relations, Operations, & Information System. e. Internal Audit Forum for all Rajawali Group business units in March 2015, attended by all internal auditors throughout the Group. 3. Rajawali Academy Team Building training a. In 2014, Rajawali Academy conducted MBTI Program for IT departments, Legal departments, Agriculture departments and Mining departments. The targets are for all departments to attend this training as teams to promote team building and trust within team members, especially during leadership/other changes. 4. Rajawali Academy Talent Assessment and Development a. In the beginning of 2014, based on the 2-year performance data, all selected employees and executives of the Rajawali Group have been required to undergo objective assessment sessions to see their further leadership potentials b. The assessment reports will be disseminated for the management and participants to foster self-development and succession planning update. c. After gaining assessment data, the participants will undergo the talent development program, beginning Rajawali Academy Technical skills training. Some examples: a. Expatriate Legal Document Procedure training for all business units and holding level in 22 March 2014 at Menara Rajawali, Jakarta. This training was designed to develop and expand the knowledge and skills for employees who were in charge with the Expatriate Legal Document Procedure (staff GA/CS, staff HR, staff legal, etc). b. Service Beyond Expectation training was conducted for Corporate Services Departments in 8 June This training was designed to develop and expand the knowledge and skills for services in providing quality services within their work. Page 10

11 c. In 2014, Security training procedures every month starting from April This training was designed to to improved skill and management for the security team. d. Throughout 2014 and 2015, technical skills training from all departments have been granted for employee applicants, such as finance, information technology, accounting, auditing, risk management, human capital, corporate communication, and project management. 6. Rajawali Academy Culture Socialization Program a. In 2014, Rajawali Academy conducted RC Culture socialization for all new employees (executive and regular employees) of all business units. 1st Batch was conducted on February 2014 at Grand Somerset, Jakarta, 2nd and 3rd Batch was conducted on March 2014 at Mercantile Club, Jakarta at Mercantile Club, Jakarta. b. In 2014, we also conducted Train The Train for fasilitator RC Culture for all BU Group in August and September 2014 at Griya Dunamis Gadog, Puncak, total facilitators who attend this class 41 persons. o Education Scholarship Program 1. Special scholarship program is also available, granted to the lower level employees children. This is applicable in Rajawali and across business units. 2. Our transportation business unit, Express Taxi also holds the same program. In Express Taxi, where drivers are business partners instead of employees, their children are also eligible for company scholarship. o Internal Communication The company facilitates various internal / employee communication programs to allow employees to express their aspiration to the management, and vice versa. The available programs include: - Kick Off Meeting is an annual meeting of Rajawali Group; that is attended by leaders/managers across the company and business units to recognize the high-achievers and to communicate company s business direction and strategy of the year; - Intranet Rajawali is an intranet based online technology that provides company information for all employees in order to keep the employees abreast with the current situation of the Company and Business Units. The Page 11

12 Intranet is also functioned as an employee communication tool by means of enabling group interest forums such as Photography, Choir, various sports, etc. The intranet portal is upgraded periodically into a more interactive, modern look to mirror the Company s dynamic and innovative attitude on employees engagement. - Employee Activities of Rajawali Corpora comprise of various groups of interests in sports and arts, such as basketball, volley ball, futsal, badminton, table tennis, tennis, golf, cycling, yoga, karaoke, photography, and choir. Religious community such as Tausiyah is also part of Employee Activities initiative. The purpose of establishing such community groups is to strengthen the tie between Rajawali Corpora employees while also to promote the healthy and balance work-lifestyle by encouraging its members to contribute in sport, art, and/or religious activities. Sense of belonging (through workplace communal activities) may promote inter-employee sustainable engagement, whereas employee physical and mental health may in turn affect work productivity. - Other Informal gatherings: Thematic gathering, RC CUP (Sport and Art Competition), Mudik Bareng (Homecoming Together) held by our Rajawali Televisi on Idul Fitri Holiday Season. o Obligation to the Community - Blood donations were made on four separate occasions during the year at Menara Rajawali (April 2014, June 2014, September 2014, December 2014, March 2015) - Rajawali Corpora supports University Paramadina Fellowship program as part of Company s commitment to make a positive impact on building the nation. Full scholarship education programs for the nation s talented students have been offered to students of less-privilege family. - Rajawali Corpora is responsible and committed in community development through various programs of Rajawali Foundation Established in 2010 by Bp. Peter Sondakh, as the CEO and Rajawali Corpora (RC) Chairman, Rajawali Foundation has effectively contributed to the community development by doing collaboration with RC as group. Rajawali Corpora and Rajawali Foundation have delivered various education support and assistance as well as community outreach programs in This includes supporting inclusive education for special needs children. Not only doing internal collaboration, Rajawali Foundation has also built collaboration with other foundations and organizations. Indonesia Global Compact Network which is representative of United Nation Global Compact Network becomes our partner for programs and events related to UNGC Page 12

13 principles; especially related to principle human right and principle anticorruption. In January 2014, to support the Government of Jakarta Capital City in providing decent public housing facility for the low income citizens, Rajawali Foundation had rejuvenated one tower, home of 100 families in Cluster B Rusunawa (Rumah Susun Sewa Sederhana) Marunda. The Rusunawa Marunda Project, still continues in improving public facilities for sustainable living environment. In March and December 2014, Rajawali Foundation delivered disaster relief aids for a quick response to the occurring natural disasters in Indonesia throughout the year. The foundation managed to partner up with Rajawali Corpora and Indonesian Red Cross (PMI) to provide hygienic water supplies for the victim of Mount Kelud Eruption in Malang, East Java. Shortly after, a similar disaster was affecting people s life in Brastagi, North Sumatera, and Rajawali Foundation together with Express Group, Archipelago Indonesia, and Green Eagle Group decided to deliver assistances for Children s Education Relief who had been skipping their education activities for weeks since Mount Sinabung Volcano erupted in late Weeks before the year 2014 ended, another tragedy stroke the nation in Banjarnegara; a massive landslide that destroyed the villages and resulted in high numbers of victims due to the natural disaster. Right away, Rajawali Foundation, altogether with Rajawali Corpora and Premiair were sending off some aids that contained drinking water, medical, and clothing supplies. In March, June, September, and December 2014, the quarterly Rajawali Blood Donation Day in collaboration with the Indonesian Red Cross continues with positive response. Number of donors from RC group employees and public is increasing from time to time. Throughout 2014, we had succeeded to gather around 400 pouches of blood. In July 2014, Rajawali Foundation granted scholarship to a student in East Java, who passed her 9th grade national exam as the second highest score in Jombang district, to continue her study onto High School. This philanthropy program is aimed to support students in Indonesia with outstanding academic performance, yet hindered by financial disadvantages. In October and December 2014, Rajawali Foundation had carried out its Community Outreach Program that particularly designated for children with special needs, in two different practical approaches. First, we were having a field trip to Kuntum Farm field in Bogor, West Java, with Yayasan Elsafan community base foundation which provides home and education for blind children. The field trip was arranged to let the Elsafan Kids experience themselves to touch, hear, and smell the animals and plants that they have only known by name in the classroom. We believe, such experiences will help them to boost their educative learning. The activities involved participation from RC & Page 13

14 business units employees from BATR, PremiAir, Velo Networks, Agriculture Division, Rajawali TV and Express Group. A customized training program Guru K.I.T.A for inclusive teacher to enhance inclusive education quality was implemented in Banyuwangi in December 2014 as our firm act to support the Regent s declaration on Banyuwangi as an inclusive region. Rajawali Foundation, as a philanthropic institution committed to the Public Policy, sees the policy that related to equal opportunities to access good quality education for normal children and children with special needs, as a policy that necessarily needs to be supported. In December 2014, the CSR Champion Forum kicked off its first ever gathering to discuss about further synchronization between the Rajawali group CSR agendas and the Environmental Sustainability agendas. The collaboration will seek for possibilities to work together in the same area, with the same objectives and to create better impact to community. The forum invited the entire CSR representatives and Environment Sustainability Champions of Rajawali Business Units as we tried to brainstorm a synergy of corporate social action with significant output. In January 2015, Rajawali Foundation and Rajawali Televisi were delightedly involved in another noble initiative of Indonesia Global Compact Network (IGCN) to sponsor and organize the Jakarta Interfaith Mass Wedding This record breaking event was joined by more than 5,000 low-income couples to legalize their marriage through religious ceremonies and official civil registration, hence, they are able to access their civil rights which otherwise cannot be exercised. The joyous event was also supported by the Indonesian Army. Employee Wellness Company provides comprehensive wellness facilities. These benefits vary from one business unit to another depending on each respective industry environments and affordability. These include: o Medical allowance & health prevention assistance; o Transportation allowances; o Special assistance/emergency loan offered to our employees affected by crisis, such as grievances (i.e.: death, prolonged sickness,) natural & fire disaster; o Employees leaves (Annual Leave, Long Service Leave, Maternity Leave, Sick Leave, Compassionate Leave, Hajj Pilgrimage Leave, and Unpaid Leave); o Employee transfer/relocation entitlements for those who are relocated at the company s request. The entitlements include: housing allowance, educational Page 14

15 allowance for the children, additional vocational leave, home trip, hardship allowance (if any,) and cost of living allowance. Violations To exercise fair treatment and ensure all actions are justifiable, the company implements sanction procedures for any violations or breach of code of conducts by employees. Business Ethic Committee is involved in any serious violation. Termination of employment To ensure that all termination actions are justifiable, properly administered, and executed according to the prevailing government laws and company policy/regulations, the company sets a termination procedure and an exit interview for any termination. There are two categories of termination: company initiated termination and employee initiated termination. Employees whose employment is terminated may receive severance compensation according to the prevailing government policy. Freedom of association The company policy stipulates the company facilitates communication programs to allow dialog with employees to understand their aspirations. The formation of association or union is stipulated in the policy manual. Employee can form the organization so long as it adheres to the company policy and code of business conduct. Political Activities The company is not affiliated to any political party. Employee joining political party is considered a personal affair. Employees should not use the company s time and resources in conducting his/her political activities. LABOUR PRINCIPLE 4 PRINCIPLE 5 PRINCIPLE 6 BUSINESS SHOULD SUPPORT THE ELIMINATION OF ALL FORMS OF FORCED AND COMPULSORY LABOUR BUSINESS SHOULD SUPPORT THE EFFECTIVE ABOLITION OF CHILD LABOUR BUSINESS SHOULD SUPPORT THE ELIMINATION OF DISCRIMINATION IN RESPECT OF EMPLOYMENT AND OCCUPATION Labor policy o In accordance to the established policy, Company and its business units must not engage in any forced and compulsory labour. The Company establishes a standard working hour. The procedures and payment of Page 15

16 overtime for eligible employees are provided in accordance to the government regulations. o The company policy stipulates that the minimum age of employee to be hired is 18 years old. No child labour. o The following is the distribution of employee by age in Rajawali Corpora (this figure does not include employees in Business Units): RAJAWALI CORPORA, PT GROUP AGE AS OF JANUARY UP 3 Non-discrimination 27 36Policy o Policy is in place and implemented across business units. Company provides a working environment that is free from harassment and discriminations including that from race, ethnic, color, religion, national origin, disability, marital status, age, sexual orientation, or gender. o Promotion is fully based on individual performance and potentials, evaluated by immediate superior, and approved by superior s superior and Human Capital. o Distribution of employee by gender in Rajawali (excluding employees in Business Units): RAJAWALI CORPORA, PT EMPLOYEE DATA BY GENDER AS OF JANUARY 2015 LEVEL FEMALE MALE TOTAL MANAGERIAL NON MANAGERIAL NON STAFF TOTAL ENVIRONMENT PRINCIPLE 7 BUSINESS SHOULD SUPPORT A PRECAUTIONARY APPROACH TO ENVIRONMENTAL CHALLENGES PRINCIPLE 8 BUSINESS SHOULD UNDERTAKE INITIATIVES TO PROMOTE GREATER ENVIRONMENTAL RESPONSIBILITY PRINCIPLE 9 BUSINESS SHOULD ENCOURAGE THE DEVELOPMENT AND DIFFUSION OF ENVIRONMENTALLY FRIENDLY TECHNOLOGIES Rajawali Corpora s commitment to environmental sustainability is articulated in its strategic sustainability framework (Fig 1) Page 16

17 Figure 1. The Rajawali Sustainability framework Our sustainability commitment o Resource stewardship for tomorrow s generations upholds Rajawali Corpora vision to become an outstanding reputable company that creates and adds value to our stakeholders. Five pillars support this commitment: the creation of value, care for people, excellence in delivery, community awareness and support and responsible environmental management. o This commitment is translated into a series of Sustainability policies in Rajawali Corpora Corporate Governance. o An Environment and Sustainability Committee is tasked to oversee the governance of sustainability. The committee consisted of 4 personnel at Managing Director level and has a brief to ensure all policies relating to sustainability are relevant and effective and to assess how successfully each Rajawali invested business unit is able to implement policy, set realistic goals and monitor performance. o Day to day implementation of our sustainability commitment is in the hands of an active group of Environment and Sustainability Champions (ESCN) who Page 17

18 works within RC invested business units to develop, refine and deliver against goals and targets, reporting to a Champion leader for each of the environmental themes. Environmental Initiatives Some of the initiatives that Rajawali Group has conducted to promote greater environmental responsibility and encourage the development and diffusion of environmentally friendly technologies during the course of 2014 include: Agriculture: o Using the best practices in agronomy and a responsible approach to the environment: due care over the use of pesticides and fertilizers to ensure there is no spill nor runoff into local water courses, effluent ponds are used to collect wastewater from our CPO mills and organic materials are broken down using aerobic and anaerobic bacteria, usage of wastewater in land application to supplement the use of fertilizers, integrated pest management o Maintaining a training center to equip future skilled agronomists with the knowledge to support our operations as the Group expands to meet demand. o Conducting HCV (high conservation value) assessments in all new operations to ensure a responsible approach is taken to protect primary forest areas and habitats o Committing to zero development on peatland and high carbon value areas in accordance to legal requirements and zero tolerance towards any burning of forests o Composting of empty fruit bunches and palm oil mill effluent using aerated tunnel composting technology o Optimizing utilization of oil palm shells and fiber as fuel to reduce oil fuel consumption o Planting and reforestation o Regular monitoring of water and air quality Mining & Resources: o Reclamation and decommission sites to a safe and stable condition Page 18

19 o Collecting top soil and vegetation from sites before mining operations begin for replanting purposes during rehabilitation o Collection and disposal of hazardous waste by approved third parties o Water treatment and regular monitoring of water and air quality o Training of employees and contractors o Reduction of dust emissions through water spraying Infrastructure and Transportation: o PT Nusantara Infrastructure under its umbrella corporate responsibility programme, Nusantara Care, has both a variety of initiatives to address the six core environmental themes as well as safety, health and education as its contribution to capacity building, disaster preparedness, environmental and thought leadership using a series of public seminars to raise awareness and promote debate on sustainable development o Refer to Express Taxi Sustainability Report for information related to Express Taxi o Premiair compliance with ISO Environmental Management System Hotel & Property: o Central to the strategy is the appointment of first class operators to manage the hotels. These are international hoteliers in whom the Group has confidence not only for delivering the best in service standards, but a professional approach to environmental stewardship. o The Group has clear and well-established policies on environmental management, social responsibility and, not least, occupational health and safety. This has been integrated into the daily routines of our international managers who include: - Starwood Group featuring the hotel and resorts brands of Sheraton, Westin and St. Regis, each with a distinctive positioning. - Marriott International is aligned with the issues important to the communities in which it operates, Marriott shows a clear responsibility towards the environment and in particular, programmes for the conservation of forests. Page 19

20 Rajawali Corpora o Novotel - with 395 hotels in 60 countries, Novotel as partners to Rajawali, have a public commitment to the Green Globe worldwide certification programme and sustainable development. Two new projects are embracing in green building standards Media & Services: o Velo Network continues to adopt Green technology to support compliance on new product development ANTI CORRUPTION PRINCIPLE BUSINESS SHOULD WORK AGAINST CORRUPTION IN ALL ITS 10 FORMS, INCLUDING EXTORTION AND BRIBERY Core Values The adoption of corporate governance is embedded in our Rajawali Values which are the guiding principles of our operations: - Integrity : We act in an honest, ethical and truthful manner Caring : We show concern for others Respect : We value and appreciate other people s views Excellence & Innovative : We do the best to consistently exceed expectations through actions and the generation of new ideas - Being Responsible : We are accountable for our actions and inactions Unity : We capitalize on differences and work together to achieve common goals Growth : We always strive to become better - Code of Business Conduct The code provides a guideline to all employees in businesses conducted within and outside the Group. It includes compliance with laws, regulations and company s policies; fair dealing; conflicts of interest: outside engagements, insider trading, gifts & entertainment; integrity of financial records, crisis management, and establishment of authorities, group asset and confidential information protection. Management Responsibilities The following committees are established in order to enforce the Business Conduct Practices across the group. Page 20

21 o Ethics Committee The Committee is responsible for the enforcement and implementation of Business Conduct and Practices throughout the Group. It updates the Policy as required and handles any allegations of misconduct. o Audit Committee The Committee is responsible for the financial and process audit conducts in order to ensure compliance with the company policy and delegation of authority. Also, the Committee is responsible to review the effectiveness of the system for monitoring compliance with laws and regulations and the results of management s investigation and follow up (including disciplinary action) of any fraudulent acts or non-compliance. Promoting Good Corporate Governance o Rajawali Corpora is also the active member of Indonesian Business Links (IBL), a non-profit foundation aims to contribute towards the creation of sound and ethical business practices in the country. We also participated in the 3 rd National Corporate Social Responsibility Conference as a speaker and moderator which endorsed the active role of promoting the UN Global Compact. Rajawali Foundation; Leadership and Capacity Building for Local Leaders and Initiate Policy Dialogue With an Objective to Improve Public Policy Making and Implementation in Indonesia Since its establishment in 2010, Rajawali Foundation has engaged with list of Ministries and local governments in its public policy education, training, and research program. Support, endorsement and active participation from government are crucial. We believe by having excellent public policy development & execution, transparency, critical mass, and feedbacks to government will eliminate any risk in fraud, corruption and misconduct. Rajawali Foundation s programs are designed to nurture leaders with high capacity in policy formulation and implementation. This is essential to lead creation of community environment with certain code of ethics and values that entail openness and accountability. Leadership Transformation Indonesia Program The program which is now has 114 alumni of regents and mayors, was carried out by Rajawali Foundation in collaboration with university partners; Harvard Kennedy School of Public Policy and Northwestern University. Having said this, 2014 was the year for Rajawali Foundation to start the Follow-Up program to the Leadership Transformation Indonesia Program. The program which Page 21

22 was designed to provide advance leadership and paradigm shift will be followed up with certain programs of applied research and innovative policy design and implementation to answer specific challenges facing our local leaders across Indonesia. Lee Kuan Yew School of Public Policy and University of Cambridge will also be Rajawali Foundation s University Partners in We learn and understand challenges are related with complex and unique aspects. Therefore, building intense communication and creating hub for information become important as the fundamental ingredients of Rajawali Foundation s Follow Up program. TRANSFORMASI Rajawali Foundation then established Center for Public Policy Transformation ( Transformasi ) at the end of 2013 with joint funding support from Ford Foundation, Climate and Land Use Alliance (CLUA) and Packard Foundation. The Center started to work in early Transformasi reviews and designs the followup program, leads policy dialogue between Ministries, talk and promote better policy to Regents and Mayors. Transformasi has also become the partner of Rajawali Foundation in publishing research and books; advocating government. Fellowship, Executive Education and Public Policy Forum Rajawali Foundation through Harvard Kennedy School Indonesia Program and Northwestern University s Arryman Scholarship provide scholarship and fellowship for bright candidates of scholars who pursue knowledge and research in Public Policy. The student assistance will help us to screen and nurture future leaders at the very early stage of process. We hope they will contribute in community, to be our brand ambassadors and agents of change. We put our highest hope on leaders of next generation to continue the process to build clean and transparent government. Harvard Kennedy School Indonesia Program also gives scholarship to selected candidates from Ministries who were sponsored by Rajawali Foundation, to take Executive Education programs. Specific issues course programs are designed by Harvard Kennedy School to shape understanding and skills of government officials to be more innovative and have certain advance leadership. The two to three week programs are held at Harvard Kennedy School campus in Cambridge, Massachusetts. Rajawali Foundation had collaborated with many partners to hold series of events of policy dialogue and policy forum. The events invited partners from other philanthropy organizations or associations, as well as international aid organizations. One of the forums is our reputable annual Asia Public Policy Forum, which is organized in collaboration with Harvard Kennedy School. The forum provides channel of sharing and communication between local leaders, policy makers, scholars as well as international aid organizations. Page 22

23 In February 2014, Rajawali Foundation and RTI international held a half day forum at Four Seasons Hotel Jakarta on 17 February The event had successfully invited 21 participants; most of them were philanthropy organizations from Indonesia and some of them were international aid organizations. This event was held to assist better communication, sharing session between philanthropy organizations and to maximize impact for community. On the other hand, international aid organizations would have better understanding about philanthropy activities in Indonesia. In March 2014, Rajawali Foundation, Kementerian PAN&RB, and Center for Public Policy Transformation ( Transformasi ) had a joint event to publish a compilation book of Public Service Innovation; Top 99 Inovasi Pelayanan Publik. The book shall inspire government officials and leaders in Indonesia to always improve their approach and method to deliver service to public. In June 2014, Rajawali Foundation through Harvard Kennedy School Indonesia Program in collaboration with Fulbright Economics Teaching Program held a reputable annual forum; The Asia Public Policy Forum 2014 in Ho Chi Minh City, Vietnam. Topic of the forum was City Transportation, Land Utilization and Cities Rapid Growth in Asia. In August 2014, in response to the issue of National economy acceleration, a themed dialogue Exploring the Potential of Jakarta-Surabaya Double Track Railroad to Accelerate Local Economy along North Coast of Java Island was exclusively held on a moving train from Jakarta s Gambir Station and bound for Semarang s Tawang Station. The dialogue was initiated by Rajawali Foundation in collaboration with the Ministry of Transportation Republic of Indonesiaand organized by the Center for Public Policy Transformation ( Transformasi ). It was attended by dozen of Indonesian regional District Heads and Mayors. In August, Rajawali Foundation had also successfully sent the second batch of participants from Ministry of Forestry to take Executive Education program at Harvard Kennedy School campus in Cambridge Massachusetts, United States of America. We have 5 (five) Program Alumni from Ministry of Forestry; 2 (two) alumni from batch 2013 and 3 (three) alumni from batch In October 2014, The Center for Public Policy Transformation ( Transformation ) that fully supported by Rajawali Foundation, published and launched the book of Economic Choices facing the Next President. The Book is written by the Emeritus Professor of Economy from Boston University, Gustav Papanek; Vice Head of the National Economic Committee. Dr Raden Pardede; and Professor of the Economic Faculty of University of Indonesia, Prof. Suahasil Nazara. The book is a result of an in-depth assessment and research on the economic challenges in Indonesia, complete with comprehensive data analysis, proposed solutions and recommendations on economic policy. Page 23

24 Other Supports The United Nations Global Compact o Rajawali Corpora is proud to be a part of the UNGC and to uphold its 10 principles pertaining to human rights, labor rights, the protection to the environment and corporate governance, the fundamentals required to meet the socio economic needs of the world. We also provide support to the Office of Indonesia Global Compact Network (Local Network of United Nations Global Compact in Indonesia), in the form of office facilities, executive resources, as well as operating funds. Page 24