The first coaching clinic presented the theme of Way forward for ESG: Streamlining and Impact Reporting. Presenting speakers from Global Report Initiative, Bappenas, and PT Pertamina, the goal of this coaching clinic is to guide and accompany businesses in their journey towards transformational governance.
Ms. Daniele Coronacion from GRI was the first speaker who pointed out the hard and soft criterias in the ESG that would help build the environment surrounding the growth of the company to boost the commitment to be influential for the society. She explained further how to measure company’s determination to transform their governance through ESG, as described below:
- E (Environment): How companies operated and address the environmental issues
- S (Social): How companies manage their relations between workers and societies where they operate
- G (Governance): Involving criteria towards the governance of executive companies
As she explained, ESG is different from Sustainability. ESG is measured and defined more clearly and its parameter is more detailed. Meanwhile, Sustainability is a term used universally to describe organizations’ efforts in sounding their ESG and non-ESG performance.
The second speaker, Mr. Yanuar Nugroho from BAPPENAS, explained the importance of a transformational governance as a duty to assure a top quality public service for society. He also added that providing good governance along with sustainable development goals (SDGs) was fundamental. What was said to be good governance comes with these three main points:
- How public institutions operate public works and maintain public resources
- Model to compare an ineffective and viable economic approach
- Public needs fulfillment becomes central to this concept
The eight characteristics needed in Good Governance are : Consensus Oriented, Participatory, Following the Rule of Law, Effective and Efficient, Accountable, Transparent, Responsive, Equitable and Inclusive.
Mr. Yanuar Nugroho also highlighted that a country needs good governance. The public has always been depending on the government. Hence, a collaboration between the government and civil society is important to provide a dialogue that is beneficial for both sides. Governments can receive inputs and evaluate their performance, in order to create policies that are more responsive towards the public needs.
Mr. Daniel Purba from PT Pertamina, ended the coaching clinic by promoting more about ESG implementation and how it has affected Pertamina as an actor in national and global development. PT Pertamina, as a company that has contributed in implementing ESG in their policies, has three main aspects that are kept in shaping their sustainability policy:
- Environmentally Friendly Company
- Socially Responsible Company
- Good Government Company
Some challenges are faced during the implementation of ESG in the context of Policy Making, Strategy, Execution, Monitoring, and Rating.
Mr. Daniel Purba added that ESG has held an important role in the continuity of PT Pertamina. There are 16 SDGs Initiatives that have become corporations by KPI. These kinds of publication and rating based on ESG, is proof that by maximizing the implementation of ESG and Good Governance, companies and their performance can be impactful in the future.
