Sustainability reporting improves transparency and builds trust by disclosing a company’s ESG initiatives, performance and impact across these three pillars. It is an important tool for Indonesian companies’ environmental, social, and governance (ESG) reporting approach. The report outlines the company’s sustainability commitment and provides an actionable plan with timelines to achieve specific targets.

The Indonesian Financial Services Authority (Otoritas Jasa Keuangan, commonly known as OJK) released rule 51/POJK.03/2017: Implementation of Sustainability Finance for Financial Services Institutions, Issuers and Public Companies (“POJK 51”), which requires all listed companies to publish sustainability reports, starting with all financial services providers from 2019. The rule was extended to a wider range of listed companies from 2020. However, the enforcement has been delayed until 2021 due to COVID-19.

The OJK currently allows companies the flexibility to choose and apply international reporting frameworks or standards that best suit their industry and goals. This promotes transparency and facilitates effective communication with stakeholders. However, tackling the diverse landscape of reporting frameworks in Indonesia can be challenging. Some of the common questions our clients have are:

1. Choosing the right framework: Although the OJK regulation offers flexibility in selecting a reporting framework, how do we identify one that best suits our industry, taking into account Indonesian regulations and best practices?
2. Improving ESG communication: How can we improve our reporting? How can we integrate different standards into a coherent and transparent report?

Our team of Renoir-CGI experts can guide you through every step of your ESG reporting journey. Whether you are planning to publish your first sustainability report or want to improve your existing report, we can help you make informed decisions and achieve your sustainability goals.