According to Otoritas Jasa Keuangan (OJK), ESG could be the basic to implement business activity and decision making in company(ies).
Palm oil companies should conserve environment by considering their operational business to environmental impact and should get coordinators that deal with environment. It should cover environmental energy, waste management responsibly not to be pollutant, participation in irreplaceable natural resource conservation, normal act to animals and effectively get risk management system to manage environmental risks.
The companies should conduct social responsibility by considering their relation and reputation, including brand image to other stakeholders and the people. Palm oil plantation companies’ social responsibility aspect can be running by maintaining good relationship to the people, communities, suppliers, consumers, workers and those that relate to business. That is why selecting every supplier should also run ESG policy and practices.
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Besides, it needs to involve organizations that develop community both in profit percentage and voluntarily work of workers for the communities around, make sure there would be healthy and safe work environment for workers, get input and hope consideration for other stakeholders to the business.
Palm oil plantation companies should conduct good governance accountably in their management. It needs to apply standard accountant model which is responsible and honest. It needs to make sure that every related party would get the chance to participate in voting to get significant decision to the company’s performance continuity
Besides, the good governance should confirm that there is no political contribution to get special treatment from those that got contribution and confirm not to be involved in illegal activity or be against the available positive laws.
If the stakeholders run ESG well, palm oil company would avoid over damages and pressure in the future. The companies would have high durability when crisis happens and could create long term – values and profits. One thing for sure, palm oil companies would contribute to realize SDGs if implementing ESG.
With the spirit of Indonesia’s Independence-Day the 78th, the spirit to implement ESG in palm oil business from upstream to downstream sectors should keep increasing and would really contribute to environmental conservation, social welfare and anti-crisis palm oil companies. Media InfoSAWIT can help palm oil stakeholders to tell your sustainable development for the people.
The spirit of Indonesia’s Independence-Day should be the big encouragement to realize sustainable palm oil development, social fairness, and anti-crisis palm oil plantation companies. The people including the smallholders would highly contribute to implement ESG to realize Indonesia’s SDGs. HAPPY INDEPENDENCE DAY!!! (T1)
