Evaluating Environmental Sustainability Performance through Green Industry Standards in Indonesian Ammonia Production
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Green Industry Standard, Corporate Sustainability, Environmental Performance, Fertilizer Industry, Energy Intensity, Greenhouse Gas Emission
Abstract
The fertilizer industry is a strategic sector that supports global food security. However, the production processes associated with this industry are characterized by high energy consumption and significant greenhouse gas emissions. The present study assesses environmental management and corporate sustainability performance within an integrated ammonia and urea production system based on Green Industry Standard (GIS) indicators. A quantitative descriptive approach was employed, whereby sustainability performance was measured through the use of key performance indicators (KPIs), trend analysis, and benchmarking against national GIS technical requirements. Secondary data from operational records, annual reports, and sustainability reports covering the period of 2021–2024 were analysed. The outcomes demonstrate that economic growth is concomitant with alterations in environmental and economic sustainability performance. Ammonia and urea production increased by 13% and 11.5%, respectively, while natural gas consumption intensity remained relatively stable, with only a 0.15% increase compared with the baseline period. However, greenhouse gas emission intensity exhibited a 35.8% increase compared to the 2021 baseline level, signifying that the effective management of emissions continues to pose a substantial challenge to the pursuit of sustainable industrial performance. From an economic vantage point, the augmentation in production capacity was accompanied by a 19.1% diminution in net profit margin, underscoring the necessity of achieving a balance between operational efficiency and environmental objectives. The findings indicate that Green Industry Standards offer a quantifiable framework for evaluating sustainability performance in energy-intensive fertilizer industries. To this end, there is an imperative for ongoing enhancement in emission reduction strategies, energy efficiency, and operational reliability. Such enhancements are crucial for fortifying environmental management practices and underpinning long-term corporate sustainability.
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