Cert. Number: AWS-010-INT-CAB-00-07-00017-0091 Version: 2 ...

www.TÜV.com

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TÜV Rheinland

System

CSS-Corporate Sustainability Service

Alliance for Water Stewardship Assessment Report

as per

AWS Standard Version 1.0

For

PT HM Sampoerna, Tbk

Jalan Raya Surabaya – Malang KM 51,4 Sukorejo

67161, Pandaan, Kabupaten Pasuruan, Provinsi

Jawa Timur

Prepared by: TÜV Rheinland

Cert. Number: AWS-010-INT-CAB-00-07-00017-0091

Version: 2.0

Date: 28th Aug 2019

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Contents

1. Client and Certification Details

2. Executive Summary

3. Scope of Assessment

4. Description of the Catchment

5. Summary of Shared Water Challenges

6. Indicator Checklist

Minor Non-conformities

Observations

Good Practices

7. Summary and Conclusion

8. Opportunity and Recommendation

9. Appendix

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Client and Certification Details:

Client Name: PT HM Sampoerna, Tbk

Audit location:

Jalan Raya Surabaya –

Malang KM 51,4 Sukorejo

67161, Pandaan,

Kabupaten Pasuruan,

Provinsi Jawa Timur

Country: Indonesia

Activities/Processes: Cigarette manufacturing

Contact person: Sulung Prasetyo

Contact email: [email protected]

Company website:

AWS Reference Number: AWS-010-INT-CAB-00-07-00017-0091

Type of audit: Initial Audit

Audit date(s): 2019.07.09~2019.07.10

Auditor Team:

Ian Jiang (Lead Auditor)

Budi Setiawan (Local Auditor)

Dwi Handana (Local Expert)

Audit Standard: AWS Core

Proposed date of next audit: 2020.07.09

Audit report completed by: Ian Jiang

Contact email: [email protected]

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Executive Summary

The scope of service covers the conformity assessment of water management and

usage for PT HM Sampoerna Tbk. The assessment was completed in compliance

with the AWS Standard Version 1.0 dated on July 2015.

PT MH Sampoerna Tbk. is a tobacco manufacturer, mainly producing a variety of

tobacco products. The premises occupied about 1,500,000 square meters, and

currently it has about 2200 employees.

Findings summary:

Total three findings were raised during the audit, including one minor

non-conformity and two observations.

Certification level:

After thorough evaluation of the non-conformance and observations, in compliance

with the AWS Certification Requirement v1.0 TÜV Rheinland auditor team would

recommend to reward PT HM Sampoerna Tbk the AWS Core Certified status.

Surveillance audit should be conducted on an annual basis.

Scope of Assessment

Client factories main products Tobacco

Client factories production

processes Primary process-Secondary process-Packing

Assessment preparations

activities include: Document review, stakeholder comments collecting

Assessment on-site activities

includes:

Document review, onsite inspection, management interview,

employee interview, stakeholder interview

Assessment follow-up activities

includes (in any): Non-conformity follow up

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The layout of the site

The area inside the red line is the site. It is located in a mixed industrial and

residential zone.The North has as a residential area of housing, bottling company

and also fresh milk company. To the south has as a residential area of housing with

wide rice field and plantation. To the east the Sukorejo Plant is bordered by National

Road also some companies including some bottling companies and residential area

of housing and school. To the west has a residential area of housing, company, green

space (forest), and also a substation.

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Wastewater treatment plant

The final effluent discharge point

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The well of the underground water

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The Summary of the Stakeholder meeting

During the assessment, a stakeholder meeting was conducted. Total 11 participants

attended the stakeholder meeting. Four were from the government agency, three

from the NGO, two from the local village representative, one from the university and

one from the local media.

Based on the interviews with local stakeholders, overall the stakeholders were

satisfied about the Sampoerna’s effort on the water stewardship. The officers from

government agency stated that the Sampoerna have done great contribution on the

conservation of the local environment and watershed, such as the replantation,

engaging with the local company for watershed protection. The village representative

appreciated the water filtration facility provided by the Sampoerna, hence the village

can obtain clean drinking water. The NGO were appraised the environmental

initiative that Sampoerna have conducted. The university worked with the

Sampoerna on the project of the local ecosystem protection, especially the Mountain

Arjuno.

All of these showed that the Sampoerna were leading the water stewardship in the

local area.

Description of the Catchment

The plant only use the underground water, which originated from the mountain Arjuno.

The water went through the Betiting River, Kedunglarangan River and Welang River,

and finally discharge to the sea in Surabaya.

The catchment map

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The important water-related area in the catchment area

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Stakeholder list, engagement and analysis.

Stakeholder

name

Stakeholder

type

Water-related challenge Influence/to

be

influenced

engagement

Dinas &

Kementrian

Lingkungan

Hidup

Government

- permission of w ater related

activities around sites - w ater

monitoring related report -

regulation of discharge volume

High -

Moderate

- engagement in

November 2018

(stakeholder meeting) -

biannual environment

report- - Hari Sampah

Nas ional (March 2019) -

informal discussion

session - invited as one

of presenter on

Multi-stakeholder

w orkshop (May 2019)-

shared commitment on

renew able w ater supply

in Mount Arjuno (May

2019) - w ill have further

discussion related to


project (October 2019)

Dinas

Pendapatan

Daerah

Government

payment for charge the Plant

ground w ater intake

High -

Moderate

- agreement on ground

w ater price - informal

discussion

UPT

Pelayanan

Perizin

Terpadu

Government

- permission of w ater related

activities around sites - regulation

of discharge volume

High -

Moderate

Formal permit for

ground w ater activities

Kementrian

ESDM

Government

- provides geology and

hydrology of w ater catchment-

provide consultation regarding

geology and hydrology of w ater

catchment

High -

Moderate

None, just data

Community

(HIPAM)

Neighborhood

- People living surrounding

Sukorejo Plant (community also

use ground w ater as clean w ater

Low -

Low

- engagement in

November 2018

(stakeholder meeting)-

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Stakeholder

name

Stakeholder

type


be

influenced

engagement

supply)




2019)- Multi stakeholder

meeting 2019)

Kaliandra

NGO

- NGO concerning

environmental protection around

the neighborhood (may raise

environmental pollution issue)

Moderate

-

Moderate

- engagement in

November 2018 - Hari

Sampah Nasional

(March 2019) - shared

commitment on




meeting 2019)

Companies

surrounding

Sukorejo

Plant

especially

Bottling

Companies

Industry

association/

- Extreme events including

f looding- use large volume of

ground w ater for operations-

Projected w ater stress

High -

Moderate

- engagement in

November 2018 -

informal discussion

(sharing) about


program (May 2019) -





meeting 2019)

Braw ijaya

university

University

- support in studies to understand

water catchment and w ater cycle in

the w atershed area(provides

collaboration on study of w ater

catchment status)

Moderate -

Moderate

- HMS engaged in 2013 to

hold study on HMS

watershed in order to

determine location of

infiltration w ell- informal

discussion about

programs related to w ater

management - invited as

one of presenter on

Mult i-stakeholder

workshop (May 2019)-


renew able w ater supply in

Mount Arjuno (May 2019) -

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Stakeholder

name

Stakeholder

type


be

influenced

engagement

w ill have further discussion

related to renew able w ater

supply project (October

2019)

Employee Employee

- use water inside catchment- Access

to water, sanitation and hygiene in the

catchment

High - High

- Socialization on AWS

Commitment- Provide good

WASH in the catchment-

Support AWS

implementation inside the

catchment

Contractor

&Visitor

Contract

time : >1 year-

ISS- Takenaka

Pr imary

Stakeholders

- use w ater inside catchment-

Access to w ater, sanitation and

hygiene in the catchment

High - High


Commitment- Provide

good WASH in the

catchment- Support AWS

implementation inside the

catchment

SETC

(Sampoerna

Entrepreneurship

and Training

Center)

Training Center

- Rescue Training Center- Included

on Sampoerna Water Contingency

Plan

High - High


Commitment- Provide

good WASH in the

catchment- Discussion

w ith PIC

Supplier

Supplier

chemical

treatment

process in

WWTP : NALCO

Support w aste w ater treatment

process inside the catchment

High - High

- Ensure all the chemicals

is handled based on SOP-

socialization on AWS

Commitment to all

contractors that directly in

touch w ith chemical

treatment in WWTP

Supplier

Supplier on

drinking w ater

Bott ling w ater :

Club

Provide clean dr ink w ater for all

entire site

High - High

- socialization on AWS

Commitment to all

contractors that directly in

touch w ith chemical

treatment in WWTP-

ensure supplier alw ays

keep the good quality of

drinking w ater

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Summary of Shared Water Challenges

The plant has identified and prioritized the shared water challenges as below (3 is the

highest):

Water challenge Relevance Prioritization

Extreme events - f looding on Pasuruan

Operational disrupted It w as clarif ied

that f looding incidents in the past

had nothing to do w ith

SAMPOERNA

2

Projected baseline w ater stress-

Unsustainable w ater use in the area

because of industrial use (bottling

companies etc.) and partially illegal

community w ithdraw al- Deforestation

and missing nature conservation

reduces replenishment

- Decreasing w ater availability -

Opportunity to participate in future

programme w ith conservation

including infiltration w ells-

Opportunity to participate in

reforestation and linking this w ith the

community empow erment

programme

3

Ground w ater level falling

Projected draw dow n groundw ater

level

3

Littering : Waste contaminating the

surface rivers

Opportunity to join effort for a

aw areness raising campaign on

preventing littering the rivers

3

Poor enforcement of w ater regulations

Domestic w astew ater quality can

impact w ater quality w ithin the

catchment

3

WASH for communities

Support government to implement

100% good WASH implementation

2

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Indicators Checklists

Per requirements set from the AWS certification requirements v1.0, below is a

checklist of all the CORE AWS indicators. The documents reviewed/ processes

reviewed are also indicated.

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Clause Expectations Documents

COMMIT

1.1 Establish a leadership

commitment on w ater

stew ardship:

1.1.1 Signed and publicly

disclosed statement that

explicitly covers all

requirements

Statement

Other :

The factory has a w ater stew ardship commitment dated November 2018.

Commitment available in each processing (Primary, secondary, printing)

base on f ield visit at primary and secondary process, commitment on

w ater stew ardship available at place.

Water stew ardship commitment statement ( in English and Bahasa): This

statement w as prepared covering all the requirements of clause 1.1 of

standards. It is signed by the Factory manager east (Mr Aji Sumantoro)

and issued on November 2018. It w as publicly available at the

entry/lobby of the factory site w here public can access.

The Water stew ardship commitment has socialization to all employee on

July 5, 2019 through the SHA RP application and socialization to

contractor on June 20, 2019.

1.2 Develop a w ater

stew ardship policy:

1.2.1 Publicly available

policy that meets all

requirements

Water stew ardship policy

Other :

The PMI V P global manufacturing has signed the “PMI Manufacturing

center’s EHS Policy. Issued on February 5, 2019 in English. This policy

includes H&S, quality, sustainability

GATHER &

UNDERSTAND

2.1 Define the physical scope:

2.1.1 Documentation or

map of the site’s

boundaries

2.1.2 Names and location

of w ater sources, including

both w ater service provider

(if applicable) and ultimate

source w ater

2.1.3 Names and location

of eff luent discharge

points, including both

w ater service provider (if

applicable) and ultimate

Documentation or map of the site’s boundaries

Names and location of w ater sources

Names and location of eff luent discharge points

Other :

They have the document “Sukorejo MAP”

The groundw ater w ells are coded by local body that grants the licenses.

The 5 groundw ater w ells are tubular Sukorejo factory have permit for

groundw ater extraction (SIPA) to operate 5 (f ive) deep w ells – one as

monitoring w ells. Deep w ells used to meet clean w ater needs both for

domestic needs and production needs. Regarding w ater availability,

physically Sukorejo Plant located betw een tw o different aquifer: High

Aquifer productive, w ith w ide spread and Moderate Aquifer productive

w ith w ide spread. This is also prove by w ater risk f ilter of Sukorejo Plant

that show s Aridity and Water Stress in very low risk level.

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receiving w ater body

2.1.4 Geographical

description or map of the

catchment(s)

Based on groundw ater recharge area map that published by department

of energy and mineral resources in 2004, Sukorejo Plant is located on

groundw ater release area w ith Q1 (amount of free groundw ater f low )

628.000.000 m3/year.

WWTP Sukorejo. Location in Ngadi Mulyo village, Sukorejo sub-district,

Pasuruan Regency.

The company has IPLC licenses number 660.31/1642.1/424.078/2016

dated November 24, 2016.

The company has a w ater catchment map made in July 2019. Based on

the w ater catchment area, the HM Sampoerna area in the

Kedunglarangan w atershed.

2.2 Identify stakeholders, their

water-related challenges and

the site’s sphere of Influence:

2.2.1 List of stakeholders,

descriptions of prior

engagements and

summaries of their

w ater-related challenges

2.2.2 Description of the

site’s sphere of influence

List of stakeholders

Water-related challenges

Other :

The company has list of stakeholder on document “Sukorejo- list

stakeholders 2018-2019”. These are:

-Environmental services

-Income Office Region

-Licensing Service

-Ministry of environment and forestry

-Ministry of Energy and Mineral Resources

-Employee

-Contractor

-Supplier

-SETC (Sampoerna Entrepreneurship Training Center)

-HIPAM community (Association of drinking w ater use

-Academic (University of Braw ijaw a)

-NGOs (KALIANDRA and STAPA)

-Bottling w ater companies (AQUA, CEERS, CLUB)

-Villages

Each of the w ater-related challenges is then evaluated for their

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legitimacy, urgency and consolidation stage.

On document “Procedure SDES006-21 w ater management” it is also

explained that for identifying the neighbour industry, the type of

stakeholders, the stakeholders interest or concern and the stakeholders

level of engagement to date. As a result, they prepare a matrix for the

stakeholders identif ication and assessment. For each stakeholders, it is

determined their level of pow er and influence. As a result, there is an

action proposed for each stakeholders. The evaluation is high, medium

or low for each criterion (pow er and influence). Example Dinas

Lingkungan Hidup is high for each criterion (pow er and influence)

One minor non-conformity raised:

From the stakeholders list provided by the plant, the stakeholder of

customer/client is missed it doesn’t meet the requirement of the

AWS 2.2.1 List of stakeholders, descriptions of prior engagements

and summaries of their w ater-related challenges.

Note: The customer didn’t pay much attention on the w ater-related issue

to the plant.

2.3 Gather w ater-related data

for the catchment:

2.3.1 List of relevant

aspects of catchment

plan(s), signif icant publicly

led initiatives and/or

relevant w ater-related

public policy goals for the

site

2.3.2 List, and description

of relevance, of all

applicable w ater-related

legal and regulatory

requirements, including

legally defined and

customary w ater rights and

Water-related public policy goals

Applicable w ater-related legal and regulatory requirements

Documentation identifying Important Water-Related Areas

Other :

The document “Sukorejo Plant-Water Governance” has list all catchment

plan or w ater-related public policy for national and regional level.

It also list all the applicable w ater-related law s and regulations.

The plant obtain the estimation catchment data from the government and

update annually.

The plant is required to test the w ater from the w ell every six months.

The latest report is issued in 10th Jun. 2019, conducted by Nevil Clark,

report No. ENV-2191059N.

In document “AWS Summary Sukrejo Plant”, it describes the IWRA

including The nearby forest Park, Mountain Arjuno (underground w ater

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w ater-use rights

2.3.3 Catchment w ater

balance by temporally

relevant time unit and

commentary on future

supply and demand trends

2.3.4 Appropriate and

credibly measured data to

represent the physical,

chemical and biological

status of the site’s w ater

source(s) by temporally

relevant time unit, and

commentary on any

anticipated future changes

in w ater quality

2.3.5 Documentation

identifying Important

Water-Related Areas,

including a description of

their current status and

commentary on future

trends

2.3.6 Existing, publicly

available reports or plans

that assess w ater-related

infrastructure, preferably

w ith content exploring

current and projected

suff iciency to meet the

needs of w ater uses in the

catchment, and exposure

to extreme events

source) and far-aw ay national park.(Bromo Tengger Semeru), and their

general status.

The plant conducted the investigation and found that no w ater-related

infrastructure is constructed in the catchment area.

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2.4 Gather w ater-related data

for the site:

2.4.1 Copies of existing

w ater stew ardship and

incident response plans

2.4.2 Site w ater balance

(in Mm3 or m3) by

temporally relevant time

unit and w ater-use

intens ity metric (Mm3 or m3

per unit of production or

service)

2.4.3 Appropriate and




status of the site’s direct

and outsourced w ater

eff luent by temporally

relevant time unit, and

possible pollution sources

(if noted)

2.4.4 Inventory of all

material w ater-related

chemicals used or stored

on-site that are possible

causes of w ater pollution

2.4.5 Documentation

identifying existing, or

historic, onsite Important

Water-Related Areas,

including a description of

their status

2.4.6 List of annual

Water stew ardship and incident response plans

Site w ater balance (in Mm3 or m3)

physical, chemical and biological status of the site’s direct and

outsourced w ater eff luent

Other :

The plant has established the emergency response plan “ SDES009-06”

The plant has established the w ater balance map w hich indicated the

input and output of the w ater.

The chemical list is established including all the use chemicals.

The plant has assigned the qualify agent to conduct regularly testing

report for the eff luent, and the testing report of last 12 months w ere

provided for review, all are compliant.

In document “AWS Summary Sukrejo Plant”, it describes the IWRA

including the w ell, w astewater treatment plant.

The w ater-related cost, revenue of the site has been conducted.

One observation is raised:

In the w ater balance map, it is recommended to use different sign/mark

to distinguish data of meters from data of assumptions.

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w ater-related costs,

revenues and

description/quantif ication

of social, environmental or

economic value generated

by the site to the

catchment

2.5 Improve the site’s

understanding of its indirect

w ater use:

2.5.1 List of primary inputs

w ith their associated

embedded annual (or

better) w ater use and

(w here know n) their

country/region/or

catchment of origin w ith its

level of w ater stress

2.5.2 List of outsourced

services that consume

w ater or affect w ater

quality and both (A)

estimated annual (or

better) w ater w ithdraw als

listed by outsourced

services (Mm3 or m3) and

(B) appropriate and




status of the outsourced

annual (or better) w ater

eff luent

List of primary inputs

List of outsourced services

Other :

The plant has a list of all primary input including the leaf, cloves and

chemicals, as w ell as the outsource activities list.

One observation is raised:

The gardening is subcontracted to the vendor, in the indirect w ater

user/outsourced services list, the w ater usage is not included (the w ater

use for gardening is from offsite.). The plant is recommended to estimate

or calculate the w ater use for this purpose.

2.6 Understand shared

water-related challenges in the

List of shared w ater challenges

Other :

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catchment:

2.6.1 Prioritized and

justif ied list of shared

w ater challenges that also

considers drivers and

notes related to

public-sector agency

efforts

The w ater challenges w ere listed and prioritized, based on the

stakeholder ’s feedback and internal assessment, such as high w ater

stress, WASH of the local.

2.7 Understand and priorit ize

the site’s w ater risks and

opportunities:

2.7.1 Prioritized list of

w ater risks facing the site,

noting severity of impact

and likelihood w ithin a

given time frame

2.7.2 Prioritized list of

w ater-related opportunities

for the site

2.7.3 Estimate of potential

savings/value creation

List of w ater risks facing the site

List of w ater-related opportunities

Other :

The w ater risks and opportunities w ere identif ied and evaluated.

PLAN

3.1 Develop a system that

promotes and evaluates

w ater-related legal compliance:

3.1.1 Documented

description of system,

including the processes to

evaluate compliance and

the names of those

responsible and

accountable for legal

compliance

Documented description of system

Other :

Based on the documentation review “The SPCR007 QEHS Legal and

Other Requirements” demonstrated the w ritten statement of the legal

compliance system and assigned the responsible person.

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3.2 Create a site w ater

stew ardship strategy and plan:

3.2.1 Available w ater

stew ardship strategy

3.2.2 Available plan that

meets all component

requirements and

addresses site risks,

opportunities and

stakeholder shared w ater

challenges

Water stew ardship strategy

Plan

Other :

The s ite has developed the w ater stew ardship strategy for perid

2018-2022 w hich addressing the identif ied shared w ater challenges.

Based on the strategy, the plan has developed the w ater stew ardship

plan for 2018~2019, w hich addressing the s ite r isks, opportunit ies and

shared w ater challenges, also included the action, responsible person,

cost and timeline etc..

3.3 Demonstrate

responsiveness and resilience

to w ater-related risks into the

site’s incident response plan:

3.3.1 A description of the

site’s efforts to be

responsive and resilient to

w ater-related issues

and/or risks in an

appropriate plan

Description of the site’s efforts

Other :

The site developed an emergency response plan, including the extreme

events like earthquake, typhoon and f looding etc..

3.4 Notify the relevant

(catchment) author ity of the

site’s w ater stew ardship plans:

3.4.1 Documented

evidence of

communicating the site’s

plan to the relevant

catchment

authority/agency

Documented evidence of communicating

Other :

The site communicated the plan w ith the local authority.

IMPLEMENT

4.1 Comply w ith w ater-related

legal and regulatory

requirements:

4.1.1 Documentation

Water-related legal and regulatory requirements

Documents of efforts to w ork w ith relevant public sector agencies

Other :

The government pay visit to the plant and issue the report to describe the

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demonstrating compliance

4.1.2 (Catchments w ith

stakeholders w ho have an

unmet human right to safe

drinking w ater and

sanitation) Documentation

of efforts to w ork w ith

relevant public sector

agencies to fulf il human

right to safe drinking w ater

and sanitation.

compliance and management status of the plant. The plant obtain the

evaluation report from the government.

The documentation”

Environmental Performance Evaluation Report (2017~2018)” issued on

21 Sep. 2018 show ed that the section about the compliance of w ater

section is obtain 100% score.

4.2 Maintain or improve site

w ater balance:

4.2.1 Measurement-based

evidence show ing that

targets

have been met

4.2.2 (Water scarce

catchments only) Evidence

of continual decrease or

best practice

4.2.3 (Sites w ishing to

increase w ithdraw als in

w ater scarce catchments

only) Evidence of no net

increase in w ater scarcity

Measurement-based evidence

Evidence of continual decrease or best practice

Evidence of no net increase in w ater scarcity

Other :

The plant set the target to reduce 3% w ater use for per unit product in

2019, based on the progress report, the actual reduction is about 9%

until May. 2019.

4.3 Maintain or improve site

w ater quality:

4.3.1 Measurement-based


targets have been met

4.3.2 (Water

quality-stressed

Measurement-based evidence


Evidence of no net degradation in w ater quality in the catchment

Other :

Based on the testing report of the underground w ater, it show that the

w ater quality maintain compared w ith last year.

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of continual improvement

or best practice

4.3.3 (Sites w ishing to

increase eff luent levels of

w ater quality parameters

of concern in w ater

quality-stressed


of no net degradation in

w ater quality in the

catchment

4.4 Maintain or improve the

status of the site’s Important

Water-Related Areas:

4.4.1 Documented


targets have been met

4.4.2 (Degraded Important

Water-Related Area


of continual improvement

or best practice

Documented evidence


Other :

The plan conduct the ris k assessment and engagement w ith the

government, the status of the IWRA may maintain stable in the future 3

years.

4.5 Participate posit ively in

catchment governance:

4.5.1 Documented

evidence of the site’s

ongoing efforts to

contribute to good

catchment governance

4.5.2 (Weak w ater

governance catchments

only) Evidence of continual

improvement or best

Documented evidence


Other 其他:

Based on the documentation and stakeholder interview, the plant is

leading the w ater stew ardship of the local area.

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practice

4.6 Maintain or improve indirect

water use w ithin the catchment:

4.6.1 List of suppliers and

service providers, along

w ith the actions they have

taken as a result of the

site’s engagement relating

to indirect w ater use

List of suppliers and service providers

List of actions

Other :

The plant launched the project aiming to trace the w ater consumption of

the leaf and clove suppliers, also help to capacity building and raise the

aw areness of the w ater.

For outsource supplier, the plant started to track the w ater consumption

of them.

4.7 Prov ide access to safe

drinking w ater, adequate

sanitation and hygiene

aw areness (WASH) for w orkers

on-site:

4.7.1 List of actions taken

to provide w orkers access

to safe w ater, effective

sanitation and protective

hygiene (WASH) on-site

List of suppliers and service providers

List of actions

Other :

The site purchased the barrelled w ater for drinking w ater. The site

monitor the dr inking w ater quality via checking their qualif ication from the

government, and request the testing report of the drinking w ater. The site

has provided suff icient sanitation facility in the w orkshop, and conduct

the regular cleaning to ensure the hygiene of the site.

4.8 Notify the ow ners of shared

water-related infrastructure of

any concerns:

4.8.1 List of individuals

contacted and key

messages relayed

List of messages

Other :

The s ite has reported the w ater management plan and concerns to the

zone management authority.

EVALUATE

5.1 Evaluate the site’s w ater

stew ardship performance, risks

and benefits in the catchment

context:

5.1.1 Post-implementation

data and narrative

discussion of performance

Total amount of w ater-related costs, cost savings

Other :

The company has a management review document that is conducted

every month. In the management review discussed MoM on MR -

updates, campaign planning, sukorejo catchment area and risk updates,

sukorejo AWS strategy and action plans, w ater performance, etc.

In the management rev iew it also discusses the long-term AWS plan for

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and context (including

w ater risk)

5.1.2 Total amount of

w ater-related costs, cost

savings and value creation

for the site based upon the

actions outlined in 3.2

(draw n from data gathered

in 2.4.6)

5.1.3 Updated data for

indicator 2.4.7 on

catchment shared value

creation based upon the

actions outlined in 3.2

the per iod 2018 - 2022. In the plan there is information about challenges

/ risks, goals, actions, benefits

The company has a management review document that is carried out

every month. For example in April 2019 the management review

discussed the costs used to carry out the plan according to needs.

Updated data for indicator 2.4.7 on catchment shared value creation

based upon the actions outlined in 3.2 through the management review

meeting.

5.2 Evaluate w ater-related

emergency inc idents and

extreme events:

5.2.1 Documented

evidence (e.g., annual

review and proposed

measures)

Documented evidence

Other :

Once emergency report occurs, the company immediately conducts

emergency response reporting and evaluat ion. During the past year

there w as no emergency response related to w ater.

All events are recorded in the application ehsspms.app.pmi/, w ho can

access this application is the EHS staff.

Every time an emergency response occurs, it is also discussed in EHS

meeting.

The company has accident reporting and emergency response

procedures.

5.3 Consult stakeholders on

w ater-related performance:

5.3.1 Commentary by the

identif ied stakeholders

Commentary by the identif ied stakeholders

Other :

Stakeholders w ho w ant to give suggestions, complaints etc. must go

through a corporate affair.

Internal and external issues update through corporate affair and continue

to the relevant departments.

Examples of several response letters addressed to the company include:

- From the chairman of the Pasuruan PWI on July 8, 2019 related to

the AWS program PT HM Sampoerna

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- From NGO Kaliandra Sejati number 027 / YKS-CCD / Ext / VI / 2019

dated 8 July 2019 related to the AWS program

- Universitas Braw ijaya number 5037 / UN10.F04.15 / TU / 2019

dated July 5, 2019 related to the AWS program of PT HM

Sampoerna

5.4 Update w ater stew ardship

and incident response plans:

5.4.1 Modif ications to

w ater stew ardship and

incident response plans

incorporating relevant

information

Relevant information

Other :

The site adopted the AWS at the end of 2018, so this is not applicable,

and it w ill be follow ed in the surveillance audit.

COMMUNICATE

& DISCLOSE

6.1 Disclose w ater-related

internal governance:

6.1.1 Disclosed and

publicly available summary

of governance at the site,

including those

accountable for

compliance w ith

w ater-related law s and

regulations

Summary of governance

Other :

The company has an organizational structure "Water Internal

Governance - Sukorejo Plant" available to the public.

Relating to those responsible for compliance w ith w ater related law s and

regulations is part of the EHS department (Pak Her i Susanto) and the CA

team (Mr. Rusdiono)

6.2 Disclose annual site w ater

stew ardship performance:

6.2.1 Disclosed summary

of site’s w ater stew ardship

results

Summary of results

Other :

The company has a summary of w ater management results announced

through the ehsspms.app.pmi application

And

w ww.sampoerna.com/sampoerna/id/investor-relations/reports-and-filings

in the 2018 annual report states that:

Completed in December 2018, this program is supported by the f ire

piping rejuvenation project, w hich is targeted to reduce w ater leakage

around 5000 m3 / month. This and other init iat ives related to AWS

Certif ication in 2019 w ill improve w ater performance of the Sukorejo site,

from 10.24 m3 / Mio Cig in 2018, to 9.85 m3 / Mio Cig in 2019,.

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6.3 Disclose efforts to address

shared w ater challenges:

6.3.1 Disclosed and

publicly available

description of shared

challenges and summary

of actions taken to engage

stakeholders (including

public-sector agencies)

Publicly available description

Other :

The company has published the shared w ater challenge, for example:

Kabarpas.com, access 21 June 2019 - Sampoerna strengthens its

commitment to maintain the sustainability of w ater resources in

Pasuruan.

Wartabromo.com, access May 23, 2019 - Hm Sampoerna conducted a

FGD w ith the theme of sustainability of Mount Arjuna w ater resources.

Faktualnew s.co, access May 24, 2019 - HM Sampoerna conducted a

FGD w ith the theme of sustainability of Gunung Arjuna w ater resources.

Surya.co.id, May 23, 2019 - commitment of Pasuruan Regency

Government and mult i-stakeholder alliance to guard w ater resources in

Mount Arjuna.

6.4 Drive transparency in

w ater-related compliance:

6.4.1 Available list of

w ater-related compliance

violations w ith

corresponding corrective

actions

List of w ater-related compliance violations w ith corresponding

corrective actions

Other :

The company has a list of legal compliance. Some compliance of

regulation, example: Water permit.

The company has complied w ith regulations related to evidence:

The company has SIPA and IPLC licenses.

6.5 Increase aw areness of

w ater issues w ithin the site:

6.5.1 Record of aw areness

efforts (dates and

communication) and, if

possible, level of

aw areness

Record of aw areness efforts (dates and communication)

Other :

The company has socialization about AWS to stakeholders, example:

- Workshop and stakeholder forum on Mei 23, 2019 w ith 39

participants

- AWS-Sharing w ith stakeholders (DLH Pasuruan) on 10 May 2019

w ith 6 participants

- AWS-Sharing w ith stakeholders (PT Tirta Investama Pandaan) on

10 May 2019 w ith 9 participants

- Public announcement on May 2019 regarding AWS auditing

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Assessment Non-conformities:

During audit. One minor non-conformity and two observations were identified:

Minor non-conformity:

NO. AWS Expectations Description of

non-conformity

Client’s response and Documentation provided

1

2.2

List of stakeholders,


engagements and

summaries of their

water-related

challenges

From the stakeholders list

provided by the plant, the

stakeholder of customer/client

is missing and it doesn’t meet

the requirement of the AWS

2.2.1 List of stakeholders,


engagements and summaries

of their w ater-related

challenges.

Note: The customer didn’t pay

much attention on the

water-related issue to the plant.

Root cause analysis: Based on internal assessment and

discussion, the customers has low interest on w ater-related

issue or w ater-usage on cigarette production.

Corrective action: The plant has added the customer into

the stakeholder list and re-assess the status and their

influence on w ater stew ardship.

Observations:

NO. AWS Expectation Description

Client’s response and

Documentation

provided(If any)

1 2.4.2

In the water balance map, it is recommended to use

different sign/mark to distinguish data of meters from

data of assumptions.

2 2.5.2

The gardening is subcontracted to the vendor, in the

indirect water user/outsourced services list, the water

usage is not included (the water use for gardening is

from offsite.). The plant is recommended to estimate

or calculate the water use for this purpose.

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Good practices:

NO. Description

1

Excellent stakeholder engagement, leading the water stewardship in the located

region, involving the stakeholder including the neighbour residence, government,

NGO, etc.

2

Contribute to the WASH not only for the employee, but also for the neighbour village

by building an infiltration plant to provide the clean drinking water and good sanitation.

3

Diversity action plans addressing the water stress of the located area, actions

including re-planation, river cleaning and raising the awareness of the people.

4

Started at the end of 2018, the plant launched the project aiming to trace the water

consumption of the leaf and clove suppliers, also help to capacity building and raise

the awareness of the water.

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Summary and Conclusion of the Assessment

In assessment of the water stewardship performance of the PT HM Sampoerna Tbk.,

it is apparent that the sites put considerable effort to adopt the AWS standard into the

management system.

One minor non-conformity was raised during the assessment. The site has been

requested to make some improvement plan to address the Non-conformity to fully

compliant to the standard.

Two observations were issued during this audit. Auditors have pointed out the areas

that to be considered for improvement in the following implementation. However, no

action is demanded during the audit cycle.

All evidences provided to TÜV Rheinland to address the non-conformity was

reviewed and evaluated to ensure the compliance to the AWS standard. All actions

were accepted as sufficient to close the non-conformity.

In conclusion, PT HM Sampoerna Tbk. met the AWS standard- Core Level.

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Appendix 1: Responding to the finding

Updated stakeholder list and the matrix of the influence.

Stakeholder

name

Stakeholder type Water-related challenge Influence/to

be

influenced

engagement

Customers External/Public-consumes

cigarette

- very low interest about

water usage on cigarette

production- low interest on

contamination through

cigarette related waste

materials Low Interest

Low-Low - annual report

including water

performances and

water management-

publicly available

AWS Project on

Sukorejo Plant, AWS

Progress and water

performance - Public

awareness project

about anti-littering

cigarette project

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Responding to Observation 1:

The plant obtain the information from the vendor to understand the indirect water

consumption.

Responding to Observation 2:

The plant updated the water balance map, now the data from the meter and

estimation can be distinguished.