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EY Climate Change and Sustainability Services (CCaSS) Indonesia developed this research to align companies, regulators and other stakeholders on the importance of sustainability reporting and the readiness of Indonesian companies for the upcoming standards.
A study of selected Indonesian listed companies throughout 2019-2024.
In brief
- This publication by EY Indonesia Climate Change and Sustainability Services (CCaSS) explores the trend of sustainability reporting of Indonesian companies and readiness for upcoming sustainability reporting standards.
- It analyzes sustainability reports of selected companies listed in the Indonesia Stock Exchange across 11 sectors (observed companies), published between 2019 and 2024.
There is a rising focus, either mandatory or voluntary, on disclosing environmental, social and governance (ESG) information globally in the form of a sustainability report or equivalent terms. Since 2017, the Indonesian Financial Services Authority (OJK) has enforced a regulation to mandate businesses to disclose their non-financial performance. Aside from OJK regulation, there are global standards and/or guidance for sustainability reporting that influence the rise in ESG disclosures.
Various stakeholders might have different interests and expectations towards the extent of information disclosed by reporting companies. With different ways of operating across sectors, there are also a staggering number of approaches to report performance, setting targets and narrating achievements to the public.
With increasing global demand for transparent sustainability information, this report aims to align companies, regulators, and stakeholders on the importance of sustainability disclosures, highlight current reporting practices, and identify gaps against emerging global standards, such as IFRS Sustainability Disclosure Standards issued by the ISSB. It provides sector-specific insights, observed challenges, and actionable recommendations to support organizations in preparing for future requirements.
Building on this objective, the report highlights seven key insights into the growth and depth of corporate sustainability reporting in Indonesia. These insights are supported by both quantitative and qualitative data derived from the analysis of observed companies and EY Indonesia CCaSS’ experience in assisting organizations with sustainability disclosures.