- The concept of ESG, which is short for "Environmental, Social and Governance", requires companies to implement environmental preservation, social responsibility and appropriate governance in an effort to balance their long-term business operations. This concept is in line with the government’s decarbonization plans, which are being aimed at a reduction in Indonesia’s greenhouse gas carbon emissions amounting to 31.89% by 2030.
- Lucius Dinto, Division Head of the Enhancing Livelihood Programme at the Unilever Indonesia Foundation, has stated that companies need to innovate in order to reduce their carbon emissions. Such innovations may involve the use of IREX-certified electricity, the use of renewable fuels such as B35 biofuel to replace fossil fuels and companies pursuing more efficient operations through the use of larger trucks.
- Also commenting on this increasingly important issue, Stefanus Indrayana, Head of Corporate Communications at PT Indofood Sukses Makmur, has pointed out that acting sustainably is no longer voluntary but now mandatory across several business sectors while emphasizing the importance of companies focusing on environmental and social concerns as well as their bottom lines.
- Other efforts aimed at reducing Indonesia's overall carbon emissions include the launch of a carbon exchange at the IDX, which is expected to bring Indonesia closer to achieving its national emissions reduction target of 31.89% by 2030. In this regard, the Ministry of Environment and Forestry has established the Economic Value of Carbon (NEK) in order to support the implementation of carbon trading and internalize the costs associated with greenhouse gas emissions.
- For more on this story, see Hukumonline: “Perlu Inovasi Pelaku Usaha untuk Mendukung Program Pengurangan Emisi Karbon”
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