INITIATIVE PROGRAMS OF LIGHT VEHICLE MANAGEMENT IN ORDER TO SUPPORT ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) IN ZONA 4 REGIONAL 1 SUBHOLDING UPSTREAM PERTAMINA FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By MOH KHOLID YADI Student ID: 29321573 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG December 2024 i ABSTRACT INITIATIVE PROGRAMS OF LIGHT VEHICLE MANAGEMENT IN ORDER TO SUPPORT ENVIRONMEN TAL, SOCIAL, AND GOVERNANCE (ESG) IN ZONA 4 REGIONAL 1 SUBHOLDING UPSTREAM PERTAMINA By MOH KHOLID YADI Student ID: 29321573 (Master of Business Administration Program) Recently, the challenges of oil and gas companies is increasing, beside targeting to generate profits, they must also consider ESG aspects, including efforts to reduce carbon emissions. Subholding Upstream Pertamina (SHU) determine this program as the company's annual achievement targets and is cascaded to become the target of each department. To support this common target, each department must review its respective business processes, what activities that produce carbon emissions, and attempt to find the potential for improvements that can be made. In SCM Department, one of the activities that produces quite high carbon emissions is the provision of light vehicles (LV) which the quantity is more than 440 units of vehicles all around Zona 4. In this context, the selection of optimal alternative fuels that balance efficiency, operations, environmental impacts, and compliance with regulations is very important. This final project presents a systematic evaluation of the alternative use of 4 (four) fuels, Biosolar CN48, Dexlite CN51, Pertamina Dex CN53, and Biosolar CN48 + Additive, using the Analytic Hierarchy Process (AHP) tool. The objective is to identify the most environmentally, friendly, and efficient fuel option that minimizes carbon emissions and air pollution while ensuring operational feasibility. This study uses AHP as a multi-criteria decision-making (MCDM) tool, to integrate various criteria and sub-criteria that are important for evaluating alternative fuel options. These criteria include Environmental, Economic, Technical, and Quality aspects. Expert judgments from Subject Matter Experts (SMEs) in the oil and gas sector were collected to conduct pairwise comparisons, resulting in a comprehensive assessment of each fuel alternative. The results of the analysis revealed that PT. Pertamina Dex CN53 emerged as the most suitable alternative. The findings of this study provide actionable insights for energy companies and policy makers who are looking to adopt cleaner fuel alternatives, which contribute to the broader goals of sustainable energy management and environmental conservation. Keywords: Carbon Emission Reduction, Alternative Fuel Evaluation, AHP ii ABSTRAK PROGRAM INISIATIF PENGELOLAAN KENDARAAN RINGAN DALAM RANGKA MENDUKUNG LINGKUNGAN, SOSIAL, DAN TATA KELOLA (ESG) DI ZONA 4 REGIONAL 1 SUBHOLDING UPSTREAM PERTAMINA Disusun Oleh: MOH KHOLID YADI Student ID: 29321573 (Program Studi Magister Administrasi Bisnis) Belakangan ini, tantangan perusahaan minyak dan gas semakin bertambah, selain untuk menghasilkan keuntungan, juga harus mempertimbangkan aspek ESG, dimana salah satunya pengurangan emisi karbon. Subholding Upstream Pertamina (SHU) menjadikan hal ini sebagai salah satu target capaian tahunan perusahaan dan dicascading untuk menjadi target setiap Fungsi. Untuk mendukung target Bersama tersebut, setiap fungsi harus mereview bisnis proses masing-masing, apa saja kegiatan yang menghasilkan emisi carbon, dan tentu saja melihat potensi improvement yang dapat dilakukan. Di Fungsi SCM, salah satu kegiatan yang menghasilkan emisi carbon cukup tinggi adalah penyediaan kendarangan ringan penumpang (KRP) yang mencapai lebih dari 440 unit kendaraan. Dalam konteks ini, pemilihan bahan bakar alternatif yang optimal yang menyeimbangkan efisiensi, operasional, dampak lingkungan, dan kepatuhan terhadap peraturan menjadi sangat penting. Projek akhir ini menyajikan evaluasi sistematis terhadap alternative penggunaan 4 (empat) bahan bakar, yaitu Biosolar CN48, Dexlite CN51, Pertadex CN53, dan Biosolar CN48+ Additive, dengan menggunakan tool Analytic Hierarchy Process (AHP). Tujuannya adalah untuk mengidentifikasi opsi bahan bakar yang paling ramah lingkungan dan efisien yang meminimalkan emisi karbon dan polusi udara sekaligus memastikan kelayakan operasional.