DSNG Stock Included in 2 newly ESG-based IDX Index
JAKARTA, 16 DECEMBER 2021 – PT Dharma Satya Nusantara Tbk (DSNG) stock got added in two new indices of the Indonesia Stock Exchange (IDX) based on Environmental, Social, and Governance (ESG) performance, namely ESG Quality 45 IDX KEHATI (ESGQ 45) and ESG Sector Leaders IDX KEHATI (ESGS KEHATI). These new indices are jointly developed with the Biodiversity Foundation (KEHATI) and are valid from 20 December 2021 to 31 May 2022.
The IDX announced the inclusion of DSNG in the two new ESG-based indices in its announcement No. Peng-00408/BEI.POP/12-2021 and No. Peng-00409/BEI.POP/12-2021 dated 15 December 2021. The ESGQ 45 index consists of the 45 best stocks from the ESG assessment and the financial and trading liquidity performance. Meanwhile, ESGS KEHATI contains company stocks whose ESG performances are above their respective sector’s average with good trading liquidity. The industrial classification refers to the IDX Industrial Classification (IDX-IC).
The stocks selected in the two new indices come from the Assessed Universe stocks with an ESG score above the minimum threshold. The ESG Score is obtained by assessing the Company’s ESG performance based on predetermined indicators gathered from Sustainability Reports, Financial Reports, company websites, external data, questionnaires, and other sources. In addition, all selected stocks must also pass the ESG Controversy Screening.
Next, the constituents of ESG KEHATI Universe will be ranked from the highest to the lowest ESG & Quality Composite Score. The Index will only include the top 45 stocks with the highest composite value. The predetermined commercial indicators include market capitalization, total assets, net profit, free float, average transaction value.
In addition, IDX and KEHATI Foundation are also considering sustainable products and innovation, natural resources and biodiversity, energy consumption, emissions and greenhouse gases, and waste management for the environmental aspect.
The social aspects include employee training and development, worker practices, occupational health and safety, product safety, and environmental and social impacts.
And last but not least, the aspects of governance are also considered, such as the mechanism for protecting the rights of shareholders, the competence and role of the board of commissioners and directors, quality and disclosure of information, business ethics, and stakeholder involvement.
The President Director of DSNG, Andrianto Oetomo, said that the inclusion of DSNG in the two new ESG-based Indexes reaffirmed the recognition from capital market institutions for DSNG’s consistency in implementing sustainability standards, both in the oil palm and wood product businesses.
“We always put DSNG as an ESG ready plantation and wood product company by implementing sustainable business practices and transparency of information disclosure to the investors,” said Andrianto Oetomo, responding to the release of ESGQ45 and ESG Sector Leaders from the IDX.
Previously DSNG was also ranked 7th out of 100 global palm oil companies in the 2021 Annual ESG Policy Transparency Assessment published by Sustainability Policy Transparency Toolkit (SPOTT). DSNG received a score of 85.4, an increase from 16th place in 2020 with scoring of 75.3. DSNG also becomes the only Indonesia-based headquarter plantation company in the top 10 of the SPOTT ranking.
This SPOTT rating results from a study on the disclosure of Environmental, Social, and Governance (ESG) performance in 100 global companies engaged in the oil palm plantation business.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and engages in palm oil and wood products businesses. Currently, DSNG has 112.6 thousand hectares of planted area and 10 palm oil mills which process Fresh Fruit Bunches (FFB) into CPO with a total capacity of 570 tons per hour. As for wood products, DSNG runs two wood processing plants in Central Java that produce panels and engineered floorings.
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Paulina Suryanti
Corporate Secretary
Jl. Rawa Gelam V Kav. OR / 3B
Kawasan Industri Pulogadung (Pulogadung Industrial Estate)
Jakarta 13930, Indonesi