This is Indonesia's Corporate Strategy to Face ESG Challenges

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Adi Ahdiat 02/08/2024 14:15 WIB

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According to a survey by Mandiri Institute, large companies in Indonesia are implementing a variety of strategies to address the challenges of ESG implementation. However, some have yet to develop a s

Indonesian Corporate Strategies in Addressing ESG Implementation Challenges (2023)

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This is Indonesia's Corporate Strategy to Face ESG Challenges

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Indonesian Corporate Strategies in Addressing ESG Implementation Challenges (2023)

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Many large Indonesian companies have adopted environmental, social, and governance (ESG) principles, business standards that consider environmental, social, and governance aspects sustainably.

However, many also face challenges in their implementation, such as difficulty meeting ESG performance indicators, cost constraints, and a lack of understanding of ESG.

According to a Mandiri Institute survey, these companies generally already have strategies to address the challenges of ESG implementation.

Of the 162 listed companies surveyed, the majority, or 59%, have formed internal ESG units.

Others formed ESG working groups with external parties (41%), used consultant services (40%), and conducted ESG assessments based on third-party standards (39%).

Then there are those who invest in ESG-related matters (35%), issue ESG-related investment instruments (9%), and use related software (5%).

However, a small percentage have yet to develop a strategy, as shown in the graph.

"As many as 17% of respondents have not yet begun any mitigation efforts for ESG-related challenges. This indicates that their readiness in implementing ESG is still under development," said the Mandiri Institute team in the ESG Report 2023.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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This is Indonesia's Corporate Strategy to Face ESG Challenges

This is Indonesia's Corporate Strategy to Face ESG Challenges

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