Compiled by By Happy Tarumadevyanto | Independent Consultant | Environmental Asia| happy.devyanto@environmental.asia
There is a fundamental shift in corporate sustainability: in the past, leading companies had voluntary commitments, such as donations, volunteering programmes, and corporate investments into climate action or social justice.
The most recent evolution in the journey of corporate sustainability is ESG : a set of Environmental, Social, and Governance criteria to measure and evaluate a company. What separates ESG from precursor programmes isn’t just a change in acronyms, but the paradigm shift from a shareholder-centric philosophy to one that is undeniably focused on all stakeholders.
Forest management companies that are generally committed to sustainability will also maintain accountability, implementing best practices in the social, environmental and business fields. This commitment to sustainability principles will certainly be seen by the public as a responsible company.
The pros and cons of the existence of large companies in Indonesia are getting worse. New problems have emerged that have led to the emergence of disparities that occur between local community [who are living around the company] and companies in the area.
Therefore, the solution that has begun to be offered with this problem is that every company operating in Indonesia must carry out a Corporate Social Responsibility (CSR) program . Many people recognizes that social responsibility given by the company to the local community affected by the company’s activities in the area. The regulation itself already exists in Law Number 25 of 2007 concerning Investment (UUPM) and Law Number 40 of 2007 concerning Limited Liability Companies (UUPT).
Sustainability crisis might be caused by various environmental problems that is currently occurring. To overcome this, a holistic, multi-perspective and solution-oriented approach is needed. This approach is part of what is currently known as the concept of social-ecological resilience. In an increasingly busy and complex world, many of our society are looking for ways to achieve true balance and well-being.
Key Success to Sustainability
In addressing sustainability, we believe that the environment and interested stakeholders are the key to the success of sustainability. Sustainability is not a one-dimensional concept and embrace a holistic approach. To this end, we collaborate closely with community members and other key stakeholders to identify and harness their unique strengths and assets.
A holistic approach offers answers by emphasizing the importance of harmonizing body, mind, and spirit. More than just focusing on physical symptoms, this approach sees humans as a unified whole, where every aspect of life is interconnected and influences each other.
The paradigm shift from profit oriented to benefit oriented has opened a new spirit and perspective in sustainable development.
The aim of building a business that is credible and can be trusted by the public with the aim of being a good business partner with responsible members of the local, national and global community.
Sustainability Policies are usually implemented based on existing principles and criteria. This sustainability commitment depends on the standards the company uses. These provisions apply entirely and exclusively to the particular Company. Meanwhile, companies [corporations] describe their annual performance as a form of reporting on the implementation and progress of their Sustainability Policy commitments.
With the introduction of the Corporate Sustainability Reporting Directive (CSRD) and the forthcoming Corporate Sustaintability Due Diligence Directive (CSDDD) as part of the EU Green Deal, about 50,000 companies worldwide will shift more of their attention to compliance action on ESG. That requires new skillsets: reporting & analysis experts in addition to stakeholder engagement; investment portfolio managers (including for the VCM) in addition to grant makers; policy experts in addition to supply chain experts.
