JAKARTA - Deputy Minister of State-Owned Enterprises I Pahala Nugraha Mansury assesses the importance of making plans related to reducing emissions in order to implement environmental, social and corporate governance or environmental, social, and corporate governance (ESG).
Pahala said, regarding ESG, his party acknowledged that Indonesia and the world must comply with regulations related to emission reduction.
This is one of the main challenges that must be implemented in all sectors.
"For this reason, if we want to comply with the achievement of national commitments related to emission reduction efforts, then we need to start understanding and measuring how much emissions are actually produced in all existing entities," said Pahala, quoted from Antara, Thursday, August 18.
After that, he continued, it is really necessary to make a plan for how to reduce these emissions.
Pahala said, when discussing how to implement ESG in business entities and also the government, it is necessary to start by understanding, measuring, and being able to understand how many emission reduction initiatives are.
"We have to start by measuring and understanding what the main steps we should take so we can reduce emissions going forward," he said.
Previously, Research Director of the Institute for Development of Economics and Finance (Indef) Berly Martawardaya said strengthening ESG principles could increase the competitiveness of Indonesian mining SOEs in countries involved in the G20.
The ESG principle has now become a trend for the sustainability demands of the world community who want companies to pay attention to environmental and social aspects.
Companies that are able to implement ESG well will be accepted by the market and have great attraction in the eyes of investors.
Berly said that of the companies that are included in the Indonesian Mining Industry Holding MIND ID, only PT Aneka Tambang and PT Bukit Asam have ESG scores in the middle of the G20 countries' mining companies.
Through the implementation of ESG and a good reputation, mining companies in the future will be able to expand mining permits to other countries.
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