On 30 November 2021, the Foundation For International Human Rights Reporting Standards (FIHRRST) and Moores Rowland Indonesia, in cooperation with UNDP, launched the Study of the 2020 Sustainability Reports of Public Companies in Indonesia. This study followed the 2019 sustainability report study of public companies that FIHRRST launched in 2020.

The Study assessed the compliance of public companies’ sustainability reports with the criteria set out in Indonesia’s Financial Services Authority (OJK) regulation no.51/2017 on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies. The regulation is a major step towards the widespread implementation of sustainability reporting in Indonesia. It requires all public companies in Indonesia to prepare and publish sustainability reports and submit the respective reports to the OJK.

The Study also ranked the sustainability reports. The sustainability reports were ranked based on their compliance with the criteria set out in OJK Regulation No. 51/2017 and selected criteria from GRI standards.

Key takeaways from the study are as follows:

» While the number of sustainability reports has increased each year, only 121 companies (16%) of all public companies registered in the Indonesian Stock Exchange have prepared a standalone 2020 sustainability report.

» Of the 121 sustainability reports for the year 2020 published by public companies, only 28% fulfilled more than 80% of the criteria for sustainability reports within the POJK 51/2017.

» Only 21% of the 121 sustainability reports disclosed the company’s sustainability policy that has been formally issued and used as reference in carrying out activities and make decision on sustainability.

» Only 2% of the 121 sustainability reports disclosed the company’s human rights policy. This is significantly different compared to sustainability reports of global companies that majority have disclosed company’s sustainability policy. In addition, the updated Universal Standards of GRI Standards includes requirements to disclose human rights policy and HRDD disclosure, starting from 1 January 2023. Human rights policy and HRDD are parts of “Social” component of the GRI Standard.

» Only 7% of the 21 Sustainability reports have disclosed greenhouse gas (GHG) emission scope 1, 2 dan 3. Furthermore, 27% of reports have disclosed GHG emission scope 1 and 2, while 65% have disclosed scope 1.

» Only 17% of 121 sustainability reports in 2020 have been verified (assured) by an independent party. The financial industry had the most reports verified, followed by the energy industry and the basic materials industry.

» Of the 121 sustainability reports, 68% disclosed the company’s contribution towards SDGs achievement.

» Of the 121 sustainability reports, 83% were prepared according to GRI Standards.

The full report can be accessed here: https://fihrrst.org/study-launch-2020-sustainability-reports-of-public-companies-in-indonesia.html