CSR is not just charity but also must prioritize aspects of sustainability based on ISO 26000 guidelines in its implementation. For this reason, a strategic design guide is needed in the form of a Blueprint as the company’s holy book in planning CSR programs that are aligned with the company’s business chain.
Thus, in the process of making a blueprint it must be in accordance with the direction of the company’s CSR policies, strategies, programs & activities using the CSV method which involves all company units.
The company conducts social mapping based on Minister of Environment and Forestry Decree number 1 of 2021 concerning social mapping references for the PROPER standard.
Social Mapping is a way to map the potential and resources of an area while at the same time providing recommendations for CSR programs that are in accordance with regional conditions and company goals. Therefore, the proper implementation of social mapping will provide verifiable data and help companies to design CSR programs that are right on target in the region.
Why do we have to conserve mangroves?
Mangroves are a solution to improve environmental and economic quality. Based on research data by Fatoyinbo et al (2017) it is revealed that estimated annual emissions from the land use sector in Indonesia can be reduced by mangrove conservation by 31%. It was also revealed that mangroves are able to absorb carbon at a rate 2-5 times greater than mature tropical forests and contain the highest carbon density of all terrestrial ecosystems. We all know that mangroves are a collection of trees that grow in areas around the coastline which are influenced by tides and are located in places that experience accumulation of organic matter and sedimentation.
President Joko Widodo will carry out Mangrove Rehabilitation until 2024 reaching 600 thousand square hectares as an effort to support COP26 in overcoming climate change. Thus, as a national effort, collaboration between stakeholders (especially companies) is needed in achieving Indonesia’s national program.
Let’s protect our environment together with mangrove conservation!
Ministry Regulation 05/MBU/04/2021 requires that every implementation of the TJSL (Social and Environmental Responsibility) program must have an impact on the Company (Creating Shared Value).
Creating Shared Value (CSV) is a program to identify social issues that are in accordance with a company’s business case. CSV is a development from the concept of Corporate Social Responsibility to a more modern approach.
Social Return On Investment (SROI) is a measurement framework to help organizations understand and manage the social, environmental, and economic value they generate. SROI is a framework for measuring and accounting. Furthermore, SROI is not just calculating value. SROI seeks to reduce inequality and environmental degradation and improve welfare by including social, environmental, and economic costs and benefits. An SROI value of more than 1 means that every Rp.1 investment spent in the program will result in more than one program unit benefit (Meaning that the higher the SROI value, the better the program’s quality).
There are two types of SROI (The SROI Networks)
The company measures the Community Satisfaction Index / IKM (Indeks Kepuasan Masyarakat) for CSR programs based on the Ministry of Forestry and Environment regulations regarding the company’s PROPER (Performance Rating Assessment Program) standard Community Satisfaction Index. The community satisfaction index is a measurement used to assess the extent to which the community is satisfied or the level of satisfaction with the company’s CSR programs, both qualitatively and quantitatively.
The Community Satisfaction Index can be calculated by conducting surveys or questionnaires to a larger population group. The analysis method used includes descriptive analysis, satisfaction index, expectation index, gap analysis, and importance-performance analysis. IKM is usually calculated using a scale of 1-100, with a higher score indicating a higher level of community satisfaction. The results of the IKM measurement can be used to identify problems that need to be addressed, improve the quality of the CSR programs being implemented, and increase public trust in companies that have implemented the CSR programs.
A Sustainability Report (SR) or also known as a sustainability report is a report showing the economic, financial, social and environmental performance of an FSI, issuer and public company while operating their business. Detailed reports related to sustainable business operations can describe the good performance of companies that are not only profit-oriented. This can improve the company’s image and the trust of various stakeholders, such as the public, employees, investors, to the government. A good SR can also increase the value of the company’s shares on the stock exchange.
The preparation of this report is also included in the Financial Services Authority Regulation (POJK) Number 51/POJK.03/2017 concerning the implementation of sustainable finance for financial service institutions, issuers and public companies.
We are here ready to assist your company in compiling a Sustainability Report (SR) document in accordance with POJK 51/2017 and the GRI Index.
