Sustainability Management and Reporting
Sustainability Report has became a requirement for financial service, listed and public companies in Indonesia based on the Regulation of Financial Services Authority No. 51/Pojk.03/2017 on Application of Sustainable Finance to Financial Services Institution, Issuer and Publicly Listed Companies. Mandatory for issuing Sustainability Report that will effectively be applied in 2019 and after, shall be made for the period of 2018. It will be easier for a company to follow the regulation if the various components in the supply chain start systematically collecting and reporting on their sustainability impacts Report as well. Moreover, in the future, the regulation will possibly be extended and applied for non-listed companies as has been the case for example in the EU.
A key approach for companies to mitigate the risks is therefore not only to collect their own
data on sustainability issues ranging from CO2 emissions to waste water management, but also to request sustainability information from suppliers as they too are part of a company’s sustainability footprint and endeavors. Dell for example has required that all its suppliers issue sustainability report and ENEL has recently started piloting this in Peru through a partnership with GRI.