Mowilex's Green Blueprint: Seven Years of Carbon Neutrality and Beyond

JAKARTA, Indonesia – December 29, 2025 – Indonesian paint and coatings producer PT Mowilex Indonesia has marked its seventh consecutive year of certified carbon neutrality, a milestone that underscores a deep-seated commitment to environmental stewardship. However, the company is signaling a significant evolution in its strategy, moving beyond certification-led accounting toward permanent, infrastructure-based emissions reductions that set a new benchmark for sustainable manufacturing in the region.

Since first achieving carbon neutral certification in 2019—a first for any manufacturer in Indonesia—Mowilex has progressively tightened the scope and rigor of its environmental accounting. This now covers all Scope 1 (direct) and Scope 2 (indirect from electricity) emissions, along with significant and measurable elements of the notoriously complex Scope 3 (value chain) emissions. This disciplined approach, independently verified by SCS Global Services, is now being paired with major capital investments designed to slash emissions at their source.

From Offsets to Ownership: A Strategic Pivot

Mowilex's journey reflects a maturation in corporate climate strategy. While carbon credits and renewable energy certificates remain part of its toolkit to cover its footprint, the company's focus has decisively shifted to direct investments that yield permanent reductions. This transition from simply balancing the books to fundamentally changing operations is at the heart of its long-term vision.

"Over time, carbon management has moved from being a reporting exercise to something that directly informs how we plan energy use, manage operations, and prioritize investments," said Yossy Tresinya Prameswari, Chief Supply Chain Officer of Mowilex Indonesia. "That shift has been essential in making emissions reduction practical and repeatable, not just aspirational."

To reinforce this commitment to transparency and rigor, the company has transitioned its accounting framework to the ISO 14064 standard. This globally recognized benchmark for greenhouse gas reporting ensures that its emissions data is not only accurate and complete but also comparable on an international stage. This move provides a robust foundation for its strategy, grounding aspirational goals in verifiable data.

The philosophy driving this change was articulated by Mowilex Indonesia CEO Niko Safavi. "Real progress comes from execution and infrastructure, not certificates alone," he stated, emphasizing a pragmatic approach. This ethos is directly visible in the company's recent infrastructure projects.

Powering Production with the Sun

Recognizing that electricity accounts for approximately 71 percent of its total energy consumption, Mowilex has targeted this area for its most significant direct investments. The company is aggressively pursuing a dual strategy: matching purchased grid electricity with certified renewable energy sources while simultaneously building its own on-site renewable generation capacity.

The most prominent example is the large-scale rooftop solar installation completed in 2025 at its Cikande manufacturing facility. The system, comprising over 750 modules across the factory roof and parking canopies, is designed to reduce the plant's reliance on grid electricity by up to 25 percent. This translates to an estimated reduction of 500 kilowatt-hours annually, meaning one out of every four liters of paint produced at the facility is now manufactured using solar energy.

This follows an earlier investment in rooftop solar at the company's Head Office, which has been operational since 2023 and now supplies up to a quarter of that building's power needs. In its first year, the system helped cut the facility's carbon emissions by 22 percent. These projects demonstrate a tangible commitment to reducing the company's largest emissions source, turning sustainability goals into physical assets that deliver measurable results year after year.

Tackling the Toughest Emissions

While tackling direct energy use is a critical step, Mowilex is also transparent about the challenges of addressing its wider value chain footprint. Scope 3 emissions, which encompass everything from raw material extraction to the end-of-life treatment of sold products, are notoriously difficult for manufacturers to measure and control. They often constitute the largest portion of a company's total carbon footprint.

"We cover all Scope 1 and 2 emissions, and we include the parts of Scope 3 we can credibly measure today," said CEO Niko Safavi. "Scope 3 is the hardest part — anyone in manufacturing knows that — but ignoring it does not make it disappear."

This acknowledgment is a crucial part of the company's leadership. By making inaugural disclosures of its embodied emissions in its 2023 ESG Report, Mowilex is taking initial steps to map its full impact. This commitment also has historical roots in its product development; as a pioneer of water-based paint technology in Indonesia, the company has long worked to reduce the environmental impact of its products at the point of use, a key downstream component of Scope 3 emissions.

Setting the Standard in Indonesian Manufacturing

Mowilex's sustained efforts have positioned it as a leader within Indonesia's evolving corporate sustainability landscape. As the nation works toward its goal of achieving net-zero emissions by 2060, the manufacturing sector, which contributes nearly a fifth of the country's GDP, is under increasing pressure to decarbonize. Mowilex's seven-year track record and its proactive investment strategy provide a compelling blueprint for others to follow.

This leadership has not gone unnoticed. For the fourth consecutive year in 2025, Mowilex was named one of Indonesia's Best Managed Companies by Deloitte, achieving the prestigious Gold Standard status—an honor bestowed on only three Indonesian companies that year. The award's rigorous evaluation framework assesses companies on strategy, capabilities, culture, and governance, with a strong emphasis on sustainable growth and long-term vision. The recognition validates Mowilex's holistic approach, where environmental responsibility is integrated directly into its core business strategy and operational excellence.