TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Using ESG data model to monitor emissions goal
The BPKP can provide recommendations or early responses on whether net-zero emissions targets are realistic under current conditions.
Change Size
Pertamina engineers conduct a check at an unknown location in this undated photo. (Courtesy of Pertamina)
T
he government is committed to creating a balance between economic prosperity and sustainable development. This is shown through the adoption of the Sustainable Development Goals (SDGs) into Presidential Regulation No. 59/2017 concerning SDGs and Presidential Regulation No. 111/2022 concerning the achievement of the SDGs. One of the strategic issues discussed in the regulations is climate change.
The achievement of this goal is of concern for countries of the world through the net-zero emissions (NZE) target by 2060, which was agreed upon in the 2016 Paris Agreement. The commitment of these countries is demonstrated in their Nationally Determined Contributions (NDCs). In Indonesia’s enhanced NDC, it committed to reducing emissions cumulatively by 31.89 percent, or by 915 million tons of CO2 equivalent.
However, the regulations do not provide details on how the distribution of reduction targets to stakeholders will be carried out. This is important to measure the level of support from the central government, local governments and the corporate sector in reducing emissions.
The ESG model data approach can be used to accurately predict the achievement of NZE 2060 based on government policies related to sustainability implementation, both in government agencies and the corporate sector.
Compared to the past decade, many companies now publish sustainability reports. Sustainability reports describe how a company is responsive to social, environmental, and governance (ESG) aspects in its business operations. Unlike financial reporting, the spectrum of sustainability reports is very broad because it concerns social and environmental aspects with different interests and needs among companies.
In Indonesia, the government has enforced regulations regarding the obligation of companies to disclose sustainability reports. This obligation is reflected in Financial Services Authority (OJK) Regulation No. 51/2017 and OJK Circular Letter No. 16/2021.
The two regulations define which companies fall into the regulatory scope and how companies draw up sustainability reports. However, this regulation is limited to publicly listed companies, issuers and financial services companies, which are in the realm of the OJK’s supervision.
