Hi Everyone :)
This is Team Indonesia of KC. Today we will talk about ESG Management strategy in Indonesia.
1. SSE – Sustainable Stock Exchanges
UN established SSE to raise awareness of sustainable management around the world. The SSE has considered that the disclosure of ESG by securities issuers is important to revitalize ESG. And they presents model guidance to help stock exchanges create their own ESG guidelines.
2. IDX – Indonesia Stock Exchange
In April 2019, the Indonesian Stock Exchange joined the UN-led Sustainable Stock Exchange Initiative. They also made various efforts to implement this.
The efforts of IDX – 1. Principles – Sustainable Insurance Service
There is a Principles for Sustainable Insurance (PSI) in the financial initiative that Indonesia has joined.
principle 1. We will embed in our decision-making envirionmental, social and governanve issues relevant to our insurance business.
principle 2. We will work together with our clients and business partners to raise awareness of envirionmental, social and governance issues, manage risk and develop solutions.
principle 3. We will work together with governments, regulations and other key stakeholders to promote widespread action across society on environmental, social and governance issues.
principle 4. We will demonstrate accountability and transparency in regularly disclosing publicly our progress in implementing the principles.
The efforts of IDX – 2. Index – IDX ESG LEADER INDEX
The Indonesian Stock Exchange released a new index called ESG LEADERS on December 14, 2020, as a way to realize sustainable investment. This is an index of the ESG scores of 30 highly evaluated companies related to ESG from the Indonesian Stock Exchange and compares the current changes as of February 2014.
The efforts of IDX – 2. Index – IDX ESG LEADER INDEX – Procedures for the selection of 30 event
IDX ESG Leader Index evaluate and announce 30 stocks with the lowest ESG risk on a three-month basis on the Indonesian Stock Exchange. The stock price of the 30 stocks announced is the index, and it si the subject of the transaction. The specific procedure is as follows. The index includes most of Indonesia’s major companies in the financial, infrastructure, consumer goods, and industries.
The efforts of IDX – 3. Corporation – Bank Rakyat Indonesia (BRI)
In IDX ESG LEADER INDEX announced on March 16, 2022, Bank Rakyat Indonesia was designated as the bank implementing the best ESG. BRI applies sustainable financial principles to all business activities to provide sustainable value to all stakeholders.
Thank you for reading our contents~!