Sidoarjo, 4 September 2025 - Since its official listing on the Indonesia Stock Exchange on December 8, 2021, PT Avia Avian Tbk (Avian Brands) has shown significant growth, not only in terms of operations and finance but also in its commitment to sustainability. One of its main initiatives is the Avian Carbon Reduction Initiative (ACRI), built on four pillars: Technology, Utility, Heat Transfer, and Combustion Reduction Initiative. This initiative is supported by a digital energy monitoring system, the use of renewable energy such as solar panels, and data-driven management by a special team from the Quality Assurance & Sustainability Dept (QAS) and the Energy Management System (SMEn).
To strengthen sustainability governance, Avian Brands has established a Quality Assurance & Sustainability Department and a Greenhouse Gas Emission Committee comprising BNSP-certified personnel (Energy Manager & Energy Auditor) and ISO 14064, up to Life Cycle Assessment, also BNSP-certified. Since 2021, the company has set an emission baseline and developed an ESG Roadmap covering Scope 1, 2, and 3 emission reductions, as well as a transition towards Net Zero Emission by 2050. This policy is reinforced in official company documents such as the Product Quality and Environmental Sustainability Policy and the Organizational Context Document. Avian Brands has achieved significant milestones in its operational decarbonization efforts. By 2024, the company successfully reduced greenhouse gas (GHG) emissions by 11,244.89 tons of CO₂e, equivalent to a 15.99% reduction compared to the 2021 baseline.
Avian Brands also implements international standards such as ISO 14001 (Environmental Management), ISO 50001 (Energy Management), and ISO 45001 (Occupational Health and Safety). The integration of these three systems ensures that emission management is carried out systematically and measurably, in line with global ESG principles. This commitment has also earned Avian Brands recognition from various international rating agencies, such as Ecovadis, Sustainalytics, FTSE Russell, MSCI, as well as the SRI-KEHATI, ESGQ45, ESG Sector Leaders, and IDX ESG Leaders indices.
As the only paint company in Indonesia to achieve KLHK's Proper Hijau (Green Proper) for three consecutive years and receive the Green Industry Certificate award, Avian Brands proves that sustainability is an inseparable part of its business strategy. Through the involvement of all employee levels, strengthened governance, and transparent emission reporting, Avian Brands addresses stakeholders' and regulators' expectations for a transition to a low-carbon economy, and ensures long-term business sustainability. Avian Brands' strategic efforts in emission management reflect its commitment to environmental transparency while also meeting investor and regulator demands for credible data towards Net Zero Emission. Compliance with regulations and the involvement of certified parties make Avian Brands a recognized pioneer in global-standard emission governance.
Avian Carbon Reduction Initiative (ACRI) is Avian Brands' strategic program to systematically manage and reduce greenhouse gas (GHG) emissions as part of its commitment towards Net Zero Emission by 2050. GHG emission calculations refer to three main international standards: GHG Protocol, IPCC, and ISO 14064, known as “the big three”. These three ensure a comprehensive and verifiable methodology for Scope 1, 2, and 3. Avian Brands' emission data has also been verified by an independent party, Decar Verite Asia, to ensure the transparency and credibility of the report. ACRI stands on four main pillars: Technology Reduction Initiative, Utility Reduction Initiative, Heat Transfer Reduction Initiative, and Combustion Reduction Initiative.
Technology Reduction Initiative emphasizes the transition to low-emission technology through the conversion of 65% of diesel-powered forklifts to electric power, successfully reducing emissions by ±5.72 tons of CO₂e per year. Currently, approximately 65% of the total 67 forklift units at Avian Brands' production facilities use electric power, totaling 43 units, and the company is committed to continuing to increase this conversion in the future. In addition, Avian Brands also strengthens the use of renewable energy by installing a total of 2,280 solar panels at its Sidoarjo and Serang factories, generating 559,201 kWh (2,013 GJ) of energy. The utilization of solar energy results in a potential emission reduction of ±458.54 tons of CO₂e per year, directly contributing to the company's clean energy mix improvement. Furthermore, its commitment to the Renewable Energy Initiative for scope 2 is demonstrated by Avian Brands' long-term collaboration with PLN for the procurement of Renewable Energy Certificates.
Utility Reduction Initiative focuses on air compressor system efficiency. Through pipeline repositioning and compressor unit optimization, monthly electricity consumption has been successfully reduced from an average of 112,000 kWh to 66,000 kWh, resulting in energy efficiency of ±45,760 kWh per month. With Indonesia's electricity emission factor of 0.87 kg CO₂e/kWh, this initiative reduces emissions by approximately ±477 tons of CO₂e per year, reflecting significant improvements in industrial utility management.
Heat Transfer Reduction Initiative is carried out by optimizing Cooling Tower operations. Through the Quality Control Circle (QCC) program, the electricity consumption of the cooling system decreased from 33 kWh/ton to 22 kWh/ton of production, resulting in savings of 405,735 kWh. Thus, the emission reduction achieved reached ±332.7 tons of CO₂e, thanks to the implementation of automation and efficient cooling circulation which significantly impacts energy and environmental performance.
Combustion Reduction Initiative targets the efficiency of natural gas usage in the paint can printing oven process. With the implementation of an automatic change-over valve, the oven's energy consumption ratio was successfully reduced from 0.44 to 0.36 mmBTU/ton. This initiative resulted in an emission reduction impact of ±174.69 tons of CO₂e, while also improving the efficiency of the combustion system without disrupting production stability.
The Avian Carbon Reduction Initiative (ACRI) is a program that integrates carbon accounting, governance, technology, and a culture of efficiency into a single strategic framework. ACRI adopts international standards such as GHG Protocol, IPCC, and ISO, and involves an independent institution (Decar Verite Asia) for emission data verification, ensuring transparency and credibility in reporting. This initiative is strengthened by four main pillars, Technology, Utility, Heat Transfer, and Combustion Reduction Initiative, which have demonstrably resulted in significant emission reductions through data-driven and technology-based approaches.
Robert Tanoko, Director of Operations and Development, stated: "The Avian Carbon Reduction Initiative is not merely a technical effort to reduce emissions, but also a reflection of our commitment to embed sustainability as a company culture, which we continuously drive through innovation, digitalization, and the involvement of all Avian personnel."
Beyond its technical focus, ACRI also emphasizes digitalization and human empowerment. Avian Brands developed the Avian ESG Portal as a real-time emission monitoring platform and established an Emission Committee composed of BNSP and ISO 14064 certified personnel. Through cross-functional involvement in Quality Control Circles (QCC), ACRI successfully built a carbon-conscious culture from operational to strategic levels. This comprehensive approach makes ACRI a leading model in industrial emission management.
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About PT Avia Avian Tbk
PT Avia Avian Tbk was founded in 1978 as an integrated paint manufacturing company. Known as Avian Brands. For over 4 decades, Avian Brands has brought color to the lives of millions of Indonesian families through various products including Sunguard All in One, Supersilk Anti Noda, and Avitex wall paints, No Drop leak-proof coating paint, and Avian wood & iron paints.
Listed on the Indonesia Stock Exchange (BEI) on December 8, 2021, with stock code (IDX: AVIA), AVIA is the largest decorative paint manufacturer and a market leader in the decorative paint and coating industry in Indonesia, based on a survey conducted by Frost & Sullivan.
Currently, AVIA controls approximately 24% of the market share in Indonesia's decorative paint and coating industry. AVIA possesses strong manufacturing capacity and capabilities through its manufacturing facilities in Sidoarjo and Serang. Vertical integration allows AVIA to produce raw materials internally.
AVIA's sales are divided into architectural solutions and merchandise. Architectural solutions contribute approximately 80% of sales, and the merchandise segment contributes approximately 20% of sales.
Since 2020, Avian Brands has had the first research, development, and innovation center in Indonesia called the Avian Innovation Center (AIC), covering an area of 5,000 square meters.
As a manifestation of Avian Brands' commitment to environmental management, occupational health and safety, and GCG (Good Corporate Governance) in accordance with international standards, Avian Brands has successfully obtained and implemented ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), ISO 45001:2018 (Occupational Health and Safety Management System), ISO 50001:2018 (Energy Management System), and ISO 27001:2013 (Information Security Management System).
Avian Brands' existence aims to provide cutting-edge benefits and contribute to coloring Indonesia.
