Indonesia, which is heavily dependent on natural resource exploitation for economic growth, has significant environmental and social issues – ranked in the top third of countries for climate risk, with high exposure to flooding, extreme heat, and sea-level rise. Indonesia’s transition to a low-carbon and climate-resilient future will require huge investments. The private sector will have to play a bigger role in strengthening Environmental, Social and Governance (ESG) practices to facilitate this transition.
Under a recent memorandum of understanding (MoU) between the Indonesia Stock Exchange (IDX), International Finance Corporation (IFC), a member of the World Bank Group, and with the support from Swiss State Secretariat for Economic Affairs (SECO), listed companies and prospective listers will be encouraged to strengthen Environmental, Social and Governance (ESG) practices. The move is expected to boost the companies’ efforts to better weigh ESG issues, including climate-related risks, and help them deliver on sustainability goals. This agreement will make listed companies on the IDX more attractive to the growing number of investors looking for sustainable assets.
Join this exclusive webinar “Unlocking Jakarta’s Potential: Challenges and Opportunities” to learn the intricacies of doing business in Jakarta and of the regulation update of Jakarta’s Spatial Plan towards strengthening Environmental, Social and Governance (ESG) practices.