The Role of Companies in Supporting Net-Zero Emissions in Indonesia

Climate change is a global challenge that urgently needs to be addressed. Indonesia, as one of the countries with relatively high carbon emissions, has set a target of achieving Net-Zero Emissions by 2060 or earlier. To achieve this target, the involvement of all sectors, including companies, is essential. Companies play a strategic role in reducing carbon emissions through various innovative measures and sustainable policies. This article will discuss the various strategies that companies can implement to help Indonesia achieve Net-Zero Emissions.

1. Adopting Renewable Energy

One of the primary steps companies can take is transitioning to renewable energy. Fossil fuels, such as coal and oil, are major contributors to carbon emissions. Therefore, companies can adopt cleaner energy sources, such as solar, wind, and hydro power. ‍

• ‍Implementing solar panels in operational facilities to reduce dependence on coal-based electricity. ‍
• Partnering with green energy providers to obtain electricity from renewable sources. ‍
• Applying energy efficiency policies, such as using LED lights, energy-efficient cooling systems, and automation to reduce power consumption.

2. Reducing Carbon Footprint in the Supply Chain

The supply chain is a significant contributor to carbon emissions in corporate operations, as it encompasses multiple high-impact activities, including raw material extraction, manufacturing, transportation, and distribution. Each stage generates substantial greenhouse gas emissions, particularly from fossil fuel consumption, inefficient logistics, and energy-intensive production processes. Therefore, companies can implement the following strategies:

• Using environmentally friendly raw materials, such as recycled products or materials with a low carbon footprint. ‍
• Implementing green transportation, such as electric vehicles or biofuels in product distribution. ‍
• Collaborating with suppliers committed to sustainability, ensuring the entire supply chain supports the Net-Zero Emissions target. ‍
• Optimizing logistics and distribution with more efficient delivery systems to reduce emissions from transportation.

3. Implementing Circular Economy Principles

To reduce environmental impact and improve resource efficiency, companies need to adopt circular economy principles. This approach helps businesses minimize waste, lower production costs, and reduce dependency on finite resources by focusing on reusing, recycling, and optimizing materials throughout the supply chain. By implementing circular strategies, companies can enhance sustainability, comply with regulatory requirements, and strengthen their brand reputation among eco-conscious consumers.

4. Establishing Net-Zero Targets and Policies

Companies need to have clear policies regarding their Net-Zero Emissions target. This can be achieved through:

• Setting Science-Based Targets Initiative (SBTi) goals to ensure emission reductions align with global climate targets. ‍
• Conducting regular carbon emission audits to understand the main sources of emissions and identify ways to reduce them. ‍
• Engaging all stakeholders, including employees, customers, and investors, in efforts to achieve Net-Zero Emissions. ‍
• Integrating sustainability into corporate policies, such as incentives for employees using environmentally friendly transportation or remote work options to reduce carbon footprints.

5. Developing Green Innovation and Technology

Technology and innovation play a crucial role in decarbonization efforts. Some strategies that can be implemented include:

• Investing in low-carbon technology, such as more efficient production systems and artificial intelligence to optimize energy consumption. ‍
• Developing environmentally friendly products, such as biodegradable goods or energy-efficient solutions. ‍
• Digitizing operational processes to reduce paper consumption and improve remote work efficiency.

6. Supporting Conservation and Reforestation

Companies can also contribute through conservation and reforestation programs as part of carbon offset initiatives.

• Supporting reforestation projects to absorb unavoidable carbon emissions. ‍
• Collaborating with environmental organizations in forest conservation and ecosystem preservation projects. ‍
• Greening work environments, such as vertical gardens or green spaces, to improve air quality.

7. Transparency and Sustainability Reporting

To ensure the effectiveness of Net-Zero Emissions efforts, companies must implement transparency in emission and sustainability reporting. One way to achieve this is by leveraging climate technology that helps measure and manage emissions across the supply chain. CarbonIQ by Jejakin offers a solution that enables businesses to accurately track Scope 1, 2, and 3 emissions, providing actionable insights to drive meaningful climate action.

Conclusion

Companies play a crucial role in supporting Indonesia's Net-Zero Emissions goals. By implementing strategies such as renewable energy adoption, supply chain efficiency, circular economy, technological innovation, environmental conservation, and transparent reporting, companies can make a significant contribution to climate change mitigation. Through collaboration between the private sector, government, and society, Indonesia can achieve Net-Zero Emissions sooner and create a more sustainable future.

‍