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Medan Sugar Industry: Indonesia’s First Sugar Refinery to Operate Using Biomass Energy

Jakarta, June 9, 2025 – PT Medan Sugar Industry (MSI), a subsidiary of Samora Group, is the first sugar refinery in Indonesia to be fully powered by biomass, sustainable energy derived from farm and plantation waste. Designed from the outset with an environmentally responsible operating system, MSI has eliminated the use of fossil fuels from its production process.

This initiative is aligned with Samora Group’s commitment to promoting a circular economy. The flexibility of biomass allows the company to utilize various types of local waste materials, including palm kernel shells, fiber, and empty fruit bunches, as primary energy sources. This initiative forms a key pillar of the company’s long-term sustainability strategy.

Using biomass as its primary energy source has enabled MSI to reduce the emissions intensity of its sugar production by up to 50% compared to coal-powered refineries. Choosing MSI sugar means customers not only benefit from a high-quality product but also take a tangible contribution to reducing Scope 3 emissions in their supply chain, supporting their own environmental responsible business practices and strengthens their commitment to Net Zero Carbon targets.

“As part of the agro-industry sector, we believe environmental sustainability is our shared responsibility. We are committed to ensuring that every product we deliver brings positive impact to both the environment and the communities around us,” said Yohan Setiawan, CEO of Samora Group.

MSI has recorded a significant shift in biomass consumption patterns over the past three years:

MSI also actively calculates its biomass-related carbon emissions using an inclusive emissions accounting approach. While biomass is generally considered carbon-neutral, MSI chooses to report biogenic emissions in its greenhouse gas (GHG) inventory to ensure full transparency and accountability.

This emissions reporting is an integral part of Samora Group’s climate targets, which have been validated by the Science Based Targets initiative (SBTi). By providing science-based and measurable data, the company ensures that its annual emissions reporting aligns with SBTi benchmarks and enables customers to accurately calculate the specific emissions intensity of MSI’s refined sugar for their own reporting needs.

Looking forward, Samora Group and its subsidiaries will continue to explore innovative, cleaner renewable energy sources as part of their transition toward low-carbon operations. This ongoing commitment reflects not only the company’s environmental responsibility but also supports Indonesia’s national goal of achieving Net Zero Emissions by 2060.

Samora Group Secures SBTi Validation for Net-Zero Target, Reinforces Position as a Green Industry Leader in Indonesia

Jakarta, June 2, 2025 – Samora Group, holding company of three refined sugar plants and one white crystal sugar facility, proudly announces the successful validation of its net-zero emissions target by the Science Based Targets initiative (SBTi)—becoming the first company of its kind in Indonesia to achieve this distinction. This accomplishment represents a critical milestone in Samora Group’s sustainability transformation and underscores its leadership in advancing climate action within the national industrial landscape.

SBTi is a globally recognized authority that supports corporations and financial institutions in setting emissions reduction targets in line with the latest climate science. Through rigorous standards, tools, and frameworks, SBTi ensures corporate commitments are aligned with limiting global warming to 1.5°C and achieving net-zero emissions by 2050. The initiative is a collaboration between CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the Worldwide Fund for Nature (WWF).

“This validation affirms the scientific rigor and accountability of our decarbonization roadmap. At Samora Group, we recognize the urgency of the climate crisis and remain committed to being a catalyst for sustainable change,” said Yohan Setiawan, Chief Executive Officer of Samora Group.

In 2023, Samora Group was also among the inaugural participants in the Corporate Assistance Program facilitated by the KADIN Net Zero Hub (NZH), further demonstrating its proactive stance on climate governance.

Advancing a Science-Based Climate Strategy

Samora Group’s emissions accounting adheres to the globally accepted GHG Protocol, encompassing:

Scope 1: Direct emissions from operational activities, including fuel combustion in boilers and company-owned vehicles.

Scope 2: Indirect emissions from purchased electricity and energy sources.

Scope 3: All other indirect emissions across the value chain, such as raw material procurement, logistics, and product usage.

In addition to Non-FLAG emissions (energy and industrial sectors), the company also conducts a full inventory of emissions from the Forestry, Land, and Agriculture (FLAG) sectors—covering agricultural inputs such as sugarcane and raw sugar. This includes emissions from land-use change, land management, and bioenergy, calculated in accordance with SBTi’s FLAG-specific methodologies.

2030 Emissions Reduction Targets

Samora Group has set the following interim targets for 2030:

42% absolute reduction in Scope 1 and Scope 2 emissions (Non-FLAG), compared to a 2022 baseline.

Reduction in Scope 3 emissions associated with upstream and downstream activities such as procurement, logistics, and product processing.

For the FLAG sector: 30.3% reduction in Scope 1 and Scope 3 emissions, and the complete elimination of deforestation across critical supply chains by the end of 2025.

Long-Term Net-Zero Commitments for 2050

By 2050, Samora Group is committed to:

Achieving a 90% absolute reduction in Scope 1 and Scope 2 emissions in the Non-FLAG sector.

Driving a 90% reduction in Scope 3 emissions across the Non-FLAG value chain, covering areas such as raw material sourcing, distribution, energy use, and product end-of-life processing. Substantially reducing land-use and bioenergy-related emissions, including those from biomass and biodiesel.

Delivering a 72% reduction in Scope 1 and Scope 3 emissions in the FLAG sector.

All targets are aligned with the 1.5°C trajectory established by the SBTi, in support of global climate objectives.

Commitment to Sustainable Business Leadership

The SBTi validation reflects Samora Group’s deep-rooted commitment to responsible environmental management and its ambition to build a future-ready, climate-resilient enterprise. This initiative forms an integral part of the company’s long-term strategy to create enduring value while aligning with internationally recognized Environmental, Social, and Governance (ESG) standards.