Riau Andalan Pulp & Paper’s President Director Tony Wenas appear receiving an award for the company he leads from Coordinating Human Resources Development and Culture Minister Puan Maharani in this photo. (Photo courtesy of APRIL Group)
Indonesian Companies Get Recognition for Sustainable Business Practices
BY :MUHAMAD AL AZHARI
AUGUST 27, 2016
Jakarta. Several Indonesian companies received awards in recognition of their sustainable business practices, the organizer of the award said in a statement sent to the Jakarta Globe on Thursday (25/08).
The Sustainable Business Awards (SBA), which has been held in six countries, is intended to increase awareness of sustainable business best-practices and to demonstrate how setting up sustainable operations benefit not only companies, but also stakeholders and the environment.
"Indonesia is the fourth most populated country in the world and boasts a unique biodiversity that integrates a large part of the global climate and water systems that provide vital life to the planet," Indonesian Business Council for Sustainable Development (IBCSD) president Shinta Kamdani said when introducing the awards.
"Business communities share the responsibility alongside government to innovate towards economic development that is primarily eco-efficient," added Shinta, who is also deputy chairwoman of the Indonesian Chambers of Commerce and Industry (Kadin).
These awards recognize Indonesian business leaders' efforts towards the Paris climate goal of limiting global warming.
The award, organized in partnership with consultancy PricewaterhouseCoopers, recognized companies that can prove their commitment to sustainability through rigorous assessment and scoring tools in 11 categories, including strategy and vision; workforce use; community engagement; energy management; water management; and waste and material management.
Companies' commitment to combating climate change; sustainable supply chain; land-use, biodiversity and environmental preservation; business responsibility as well as ethics were also assessed.
Several ministers, including Coordinating Human Development and Cultural Affairs Minister Puan Maharani, Industry Minister Airlangga Hartarto and National Development and Planning Minister Bambang Brodjonegoro, as well as Kadin chairman Rosan P. Roeslani and hundreds of role players from Indonesian and international corporations witnessed the award ceremony at the Shangri-La Hotel in Jakarta.
Fast-moving consumer goods giant Unilever Indonesia was the overall winner for Indonesia, having received the highest ranking across the board in most categories.
"From sourcing of raw materials, through production, to sales, Unilever has consistently increased its efforts year-on-year to adapt their supply chain towards an increasingly sustainable production," the SBA said in the statement. "They were also recognized for the proven track record for the concept of 'purpose-driven' brands that must not only have a clear purpose that contributes to a social or environmental concern, but the product itself must also contribute to Unilever's sustainable initiative targets."
The SBA said Unilever Indonesia, the local unit of the British-Dutch multinational consumer goods company, has successfully reduced carbon emission by 21.8 percent per ton of production since 2008.
"The recognition given to businesses for their sustainable efforts not only encourages others to follow suit, but also provides an excellent resource to learn from best practices. The rigorous process and prominence of the panel give the awards unparalleled credibility and standing in Asia," explained Tony Gourlay, chief executive of Global Initiatives, the awards organizer for the fifth year.
The awards involved a process of a comprehensive interviews and questionnaires to score their corporate sustainability visions, environmental as well as social management strategies.
Winners were selected by a panel of cross-industry experts, including IBCSD, Editors-in-Chief and PWC. Supporting partners for the award was Control Union and the Turnkey Group.
Awards were also given to dozens of Indonesian companies in different categories.
The following companies received awards in the different categories:
1. Best Strategy and Sustainability Management: Indocement Tunggal Prakarsa
2. Best Business Responsibility and Ethics: Unilever Indonesia
3. Best Workforce: Nestlé Indonesia
4. Best Sustainability in the Community: Vale Indonesia
5. Best Supply Chain: H&M
6. Best Stakeholder Engagement: Unilever Indonesia
7. Best Energy Management: Holcim Indonesia
8. Best Water Management: Multi Bintang Indonesia
9. Best Waste Management: Nestlé Indonesia
10 Best Climate Change: RAPP (April Group)
11 Best Land Use, Biodiversity and the Environment: Smart
Special Recognition by Category
1. Strategy and Sustainability Management: Asia Pulp & Paper (APP)
2. Business Responsibility and Ethics: L'Oréal Indonesia
3. Workforce: Bayer
4. Sustainability in the Community: Tirta Investama (Danone Aqua)
5. Supply Chain: Sinar Mas Land
6. Stakeholder Engagement: Bukit Asam
7. Energy Management: Frisian Flag
8. Water Management: Martina Berto
9. Waste Management: Dupont
10. Climate Change: United Tractor
11. Land Use, Biodiversity and the Environment: Branita Sandhini (Monsanto)
Special Individual Recognition
12. Best Flagship Initiative: Pertamina
13. Best SME: PT PIPA
14. Best Newcomers (entering SBA for the first time): Bank CIMB Niaga.