Sustainability reporting is a communications tool through which organizations disclose their current economic, social, and environmental value to stakeholders, and present their responses to climate change, social problems, and other sustainability issues.
It’s a rising trend
Globally, the importance of sustainability reports continues to rise: a trend echoed here in Indonesia. Over the last five years, more and more companies and organizations in Indonesia have been producing sustainability reports. This reflects not only the private sector’s greater awareness of its impact on environmental and social issues, but the growing awareness of the need to be accountable to stakeholders through transparent communication.
By law, (Article 66.C of the Limited Liability Company Law no. 40 Year 2007), Indonesian companies are required to disclose their social and environmental responsibilities through their annual financial reports. From here, it is a short step to the concept of integrated sustainability reporting: this refers to the combination of financial and sustainability-related information into a single, annually-produced report.
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