Jakarta. The effective implementation of Environmental, Social, and Governance (ESG) principles can significantly benefit the environment, society, and corporate governance, said Environment Minister Hanif Faisol Nurofiq. ESG is not only about meeting global standards but also a strategic approach to strengthening Indonesia’s position on the international stage.

“Successfully applying ESG principles brings numerous benefits, from enhancing reputation and reducing operational risks to building greater trust with investors,” Hanif said during the Investor Daily ESG Appreciation Night in Jakarta on Monday.

He further emphasized that ESG’s impact goes beyond energy efficiency and carbon emissions reduction, serving as a key driver of green technology innovation. A recent study showed that investments in green initiatives could reduce carbon emission intensity by up to 0.5 percent. While this figure may seem modest, its impact becomes substantial when applied on a larger scale. “This demonstrates that successful ESG implementation can make a meaningful contribution in the fight against climate change,” Hanif noted.

However, Hanif acknowledged the significant global challenges that remain, including the climate crisis, social inequality, and threats to food security. In this context, the role of businesses is becoming increasingly crucial to support sustainability efforts.

As the institution responsible for environmental management, the Environment Ministry is committed to strengthening the framework that supports sustainability, with a focus on fostering synergy between the government, businesses, and society.

“Monitoring, environmental management, and regulation must go hand in hand to ensure all parties comply with established environmental standards,” Hanif said.

President Prabowo Subianto also reaffirmed his commitment to supporting sustainable development. He believes that by mapping strong economic growth, environmental management efforts can become more effective. “The separation of ministries focusing on environmental issues is a strategic step to ensure this management is more focused and directed,” Hanif added.

Hanif emphasized that ESG is not solely the government’s responsibility but also that of the business community. Companies are encouraged to integrate ESG into their business strategies. This approach not only ensures regulatory compliance but also enables companies to contribute meaningfully to global sustainability.

With a strengthened framework and cross-sector collaboration, the Environment Ministry is optimistic that Indonesia can lead the global sustainability transformation. “This is not just about protecting the environment; it’s about creating a better future for generations to come,” Hanif concluded.