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Sustainable Social and Environmental Responsibilities

As an entity operating within the broader community, the Company endeavors to contribute to the enhancement of community living standards. This commitment is manifested through impactful social responsibility initiatives. Additionally, the Company implements energy-conscious operational practices to minimise its carbon footprint.

The Company takes pride in serving the communities of Indonesia through its business and other initiatives. Providing the local communities with products and services they trust and can rely on is fundamental to building a sustainable business. 

As such, the Company is committed to generating a positive impact in every aspect of its operations, which is manifested in the implementation of sustainability initiatives across the Company to ensure that the Company actively contributes to the community and environment in its operations. 

The sustainability policies of the Company are established under the following three main pillars: [GRI3-3]

PLANET

TEAM

PRODUCT

FIGHTING THE CLIMATE CRISIS

Implementing interventions in scopes 1, 2 and 3 to reduce greenhouse gas emissions.

BUILDING GREENER STORES

Building a stronger sustainability culture and practice in the way we design, construct, operate and maintain our stores.

ACHIEVING ZERO WASTE TO LANDFILL

Diverting operational waste away from landfills

RESPECTING HUMAN RIGHTS

Upholding human rights and monitoring compliance with our suppliers.

CARING FOR OUR PEOPLE

  1. Promoting a diverse and inclusive workplace where everyone can grow and thrive.
  2. Ensuring the health and wellbeing of our people.
  3. Supporting career development for the youth

SUPPORTING OUR COMMUNITIES

  1. Promoting volunteering and long-term engagement with charity organisations in the fields of health & wellbeing, education and community care
  2. Expanding our global partnership with Operation Smile.
  3. Stepping up our Empowerment campaigns.

MAINTAINING HIGH PRODUCT QUALITY AND SAFETY

  1. Providing safe and high-quality products.
  2. Conducting regular customer research to get feedback.

OFFERING MORE SUSTAINABLE PRODUCTS

  1. Encouraging customers to adopt a more sustainable lifestyle by offering them a wider range of food and non-food products with more sustainable ingredients and packaging, through both offline plus online channels.
  2. Developing packaging with less or better plastics (New Plastics Economy Global Commitment)
  3. Increasing our sourcing of deforestation-free products.

PLANET

FIGHTING THE CLIMATE CRISIS

Implementing interventions in scopes 1, 2 and 3 to reduce greenhouse gas emissions.

BUILDING GREENER STORES

Building a stronger sustainability culture and practice in the way we design, construct, operate and maintain our stores.

ACHIEVING ZERO WASTE TO LANDFILL

Diverting operational waste away from landfills

TEAM

RESPECTING HUMAN RIGHTS

Upholding human rights and monitoring compliance with our suppliers.

CARING FOR OUR PEOPLE

  1. Promoting a diverse and inclusive workplace where everyone can grow and thrive.
  2. Ensuring the health and wellbeing of our people.
  3. Supporting career development for the youth

SUPPORTING OUR COMMUNITIES

  1. Promoting volunteering and long-term engagement with charity organisations in the fields of health & wellbeing, education and community care
  2. Expanding our global partnership with Operation Smile.
  3. Stepping up our Empowerment campaigns.

PRODUCT

MAINTAINING HIGH PRODUCT QUALITY AND SAFETY

  1. Providing safe and high-quality products.
  2. Conducting regular customer research to get feedback.

OFFERING MORE SUSTAINABLE PRODUCTS

  1. Encouraging customers to adopt a more sustainable lifestyle by offering them a wider range of food and non-food products with more sustainable ingredients and packaging, through both offline plus online channels.
  2. Developing packaging with less or better plastics (New Plastics Economy Global Commitment)
  3. Increasing our sourcing of deforestation-free products.

To realise the policy, the Company collaborates with stakeholders. [GRI3-3]

In addition, to ensure that sustainability policies have been implemented properly, the Company conducts regular monitoring and evaluation. [GRI3-3]

In carrying out its sustainability activities, the Company refers to the prevailing laws and regulations, primarily the Company Law, Law No. 25 of 2007 regarding Capital Investment, and Government Regulation No. 47 of 2012 on Corporate Social and Environmental Responsibility of Limited Liability Companies.

In 2023, the Company disbursed an amount of Rp222,368,138 in connection with sustainability activities.

The Realisation of Corporate Social Responsibility towards the Community

In promoting the development of communities in Indonesia, as well as in minimising the unemployment rate, the Company prioritises the employment of Indonesians to support its operations. (POJK51-B.1.e)

In addition, the Company also promotes a corruption-free Indonesia by requiring its vendors to contractually sign anti-bribery provisions,  ensuring healthy cooperation and business conduct. 

Internally, the Company holds periodic anti-bribery and anti-corruption trainings to improve its employees’ awareness and understanding of such acts. 

In 2023, the Company organised the following activities for the benefit of local communities: (POJK51-F.23)(POJK51-F.25)[GRI203-1][GRI203-2]

Community Grievances Mechanism (POJK51-F.24)

Generally, the flow of handling local community grievances is as follows:

  1. Receive and record grievances
  2. Discuss, coordinate and investigate the grievances
  3. Resolution, response and termination (that is carried out in stages according to the level of complexity of grievances)

During 2023, there were no grievances from external parties that were significant and could disrupt the Company’s operational activities.

The Realisation of Corporate Social Responsibility towards Environment

Grounded in the commitment to environmental sustainability, the Company consistently strives to mitigate its environmental impact through comprehensive preservation efforts in all business activities, both in its stores and the office. 

In practice, the Company encourages employees’ environmental awareness through the emphasis of efficient use of resources. 

To minimise the waste that it generates in its operations, the Company reduces the use of plastic bags in the stores in accordance with the standards set by the Indonesian Retailers Association (APRINDO). 

Another measure taken to minimise environmental impact is the implementation of waste management system especially for warehouse waste, to reduce the waste generated and to ensure the proper disposal of waste and garbage. 

To ensure the effectiveness of the system, the Company works with a vendor specialising in waste management which provides specific drums for waste disposal.

Energy Use

Saving electricity use means helping to reduce carbon emissions from burning energy that is not environmentally friendly. This is the responsibility of every person as part of the world community to combat global climate change. Addressing global climate change is one of the SDGs developed by the United Nations, namely SDG 13 “Climate Action”. Energy is the biggest contributor to global climate change. Around 60% of greenhouse gas emissions are caused by massive and environmentally unfriendly energy use.

The Company realises the importance of the impact of maintaining the increasing global climate change through energy savings. This awareness has been realised by the Company in concrete actions throughout 2023. In daily operational activities, the Company always strives to save energy, in the form of: 

  • saving the use of air conditioner and keeping the air conditioner temperature at 22°C-25°C when in use; 
  • saving the use of lights by not turning on all lights in the morning; 
  • using more energy-efficient devices; and
  • using the automatic energy saver function on printers and photocopiers when not in use.

Below is the information related to energy consumption and emissions produced by Company:

No.
Sustainability Activities
Sustainable Development Goals
Description
Achievement
1
In January 2023, the Company collaborated with Nivea and Dompet Dhuafa to provide groceries for people in need in Setiabudi District, South Jakarta. A donation of Rp1,000 was generated from each sale of Nivea products at Watsons.
Good health and well being
Allocation of funds Rp0 Period 12 January 2023
A total of 100 participants attended the event
2
In March 2023, the Company raised funds from all Watsons Indonesia employees to help residents of Barukaso Village, Cianjur, West Java who were affected by the earthquake.
Good health and well being
Allocation of funds Rp0 Period 16 March 2023
A total of 250 health centres in Jabodetabek received assistance
3
On 1 August 2023, the Company, in collaboration with Nivea, invited customers to participate in planting mangrove seedlings to restore the mangrove forests on Pari Island, Jakarta, Indonesia.
Climate action Life on land
Allocation of funds Rp65,350,000 Period 1 August 2023
1,000 mangrove trees were planted on Pari Island
4
On 7 December 2023, the Company, together with Maybelline, organised the Brave Talk Training, which is designed in collaboration with mental health experts to equip individuals with tools to support those around them who are experiencing anxiety or depression.
Good health and well being
Allocation of funds Rp0 Period 7 December 2023
A total of 250 participants took part in the training
5
On 8 December 2023, the Company and Kenvue organised the “Healthy Skin, Healthy Sea” programme, which involved a beach clean-up event at Mertasari Beach, Denpasar, Bali.
Climate action Life on land
Allocation of funds Rp50,000,000 Period 8 December 2023
A total of 100 participants took part in this event

Table of Energy Consumption and Intensity

Energy Type
Unit
2023
2022
2021
Diesel
kWh
12,583
8,246
2,089
Gigajoules
46
30
7.52
Electricity
kWh
4,346,432
4,108,372
3,871,837
Gigajoules
15,647
14,790
13,939
Total
Gigajoules
15,693
14,820
13,946.52
Total Sales Quantity
Pieces
76,652,966
39,877,886
32,585,568
Energy Consumption Intensity
Gigajoules/ Pieces
0.00020
0.00037
0.00043

Energy efficiency efforts are carried out through replacement of electronic equipment with new technology that saves energy such as LED lights and performing maintenance regularly in an orderly manner. (POJK51-F.7)[GRI302-4]

Table of Resulting Emission and Intensity

Emission (Greenhouse Gas/GHG)
2023
2022
2021
Scope 1 (metric tons of CO2 equivalent)
3.23
3.23
0.57
Scope 2 (metric tons of CO2 equivalent)
3,055
3,185
2,966
Total (metric tons of CO2 equivalent)
3,058.72
3,186.85
2,966.30
Total Sales Quantity
76,652,966
39,877,886
32,585,568
Emission Intensity GHG (kg CO2 equivalent per piece)
0.07
0.08
0.09

To reduce emissions and improve fuel efficiency, the Company ensures that all transporter vendors carry out emission tests or KIR. Maintenance and testing of exhaust emissions are also carried out regularly. (POJK51-F.12)[GRI305-5]

In 2023, environmental cost disbursed by the Company was Rp271,312,000. (POJK51-F.4)

During the reporting period, there were no community grievances related to the environment. (POJK51-F.16)