Jakarta. Companies both at home and abroad embrace environmental, social, and governance principles, commonly shortened as ESG, including the Indonesian multinational conglomerate Lippo Group.
The ESG principles align with the Sustainable Development Goals (SDGs), which aim to end poverty, protect the earth, and improve people's quality of life.
According to Lippo Group executive director John Riady, Indonesia has shown a significant commitment to the sustainability of life and the environment.
"It is important for [sustainability] to receive support from all parties, including the business world," John said in a written statement on Thursday.
On environmental sustainability, Indonesia serves as one of the world's "lungs." The Southeast Asian country took part at the COP26 climate summit in Glasgow and has even set a goal of reaching net-zero emission by 2060 or sooner.
As the holder of the G20 presidency, Indonesia has also initiated countless innovative efforts to improve the quality of people's lives and the environment. In many G20 discussions, Indonesia spoke of global health and green financing.
Lippo Group —whose businesses cover property, health services, and education— is drawing up frameworks that embrace the ESG principles to help realize the many global goals of a sustainable economy.
"We have even created a sustainability division to ensure that the business runs according to ESG principles," John said.
ESG measurement uses the World Economic Forum's stakeholder capitalism metrics (SCM). The SCM encompasses four categories: principles of governance, planet, people, and prosperity. Lippo Group has gradually implemented standards for these four categories over the past three years.
"ESG is more important than just CSR. ESG across all business practices, starting from the upstream to the downstream, is designed to bring added value to sustainable development," John said.
In the planet category, Lippo Group's property development adopts water recycling technology, thus significantly saving groundwater use. Amid the worsening climate change, Lippo Group pledged to continuously improve its resources' efficiency.
"As well as to reduce the environmental impact by finding new ways to make our products and business processes more environmentally friendly," John said.
Property, health, and education —Lippo Group's business sectors— are all crucial to civilization. Lippo Group's efforts in providing quality services contribute to creating a better life and sustainable development.
"We continuously strive to uphold the standards of governance and accountability, promote operational excellence and sustainable business practices, and build trust through service and customer satisfaction," he added.
Lippo Group currently employs around 15,000 people. John said the company "upholds fair employment practices, prioritizes their health, safety, and well-being, supports their development and aspirations, and empowers them to be good people."
The small yet massive steps like what Lippo Group is doing will eventually make Indonesia the most significant contributor to the global recovery.
"If all business sectors implement the same principles and values, this would turn the fate of the society, environment, and not just on a national scale," John said.