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Sustainable living
In the modern business world, sustainability has become a crucial aspect that can no longer be ignored. Companies that want to survive and thrive must start adopting sustainability principles in their operations. One widely implemented approach is the concept of ESG (Environmental, Social, and Governance). ESG is not just a trend but a strategy that can enhance company performance, attract investors, and strengthen customer relationships.
In this article, we will delve into ESG, its concept, implementation strategies, benefits, and examples of companies that have successfully applied ESG.
ESG stands for Environmental, Social, and Governance. This concept reflects three main pillars used to measure a company's sustainability impact.
Implementing ESG in a company brings significant benefits in terms of financial, operational, and reputational aspects.
Investors increasingly consider sustainability factors in their investment decisions. Companies with high ESG scores are more attractive to institutional investors and have a better chance of securing funding.
Consumers are becoming more aware of environmental and social issues. Companies that effectively implement ESG gain greater trust from customers and build a stronger market reputation.
Government regulations worldwide are becoming stricter regarding environmental and labor rights. By implementing ESG, companies can avoid legal risks, fines, or consumer boycotts due to unethical business practices.
ESG implementation often drives innovation in resource utilization, such as energy-efficient technologies and supply chain efficiency, ultimately reducing operational costs.
How can companies integrate ESG into their operations? Here are strategic steps to follow:
Companies must have a clear sustainability vision and set realistic ESG targets. This commitment needs to be supported by top management and communicated across all business units.
Conducting environmental and social audits to understand a company’s impact and formulating policies to mitigate negative effects.
Employees, customers, investors, and communities should be involved in ESG strategies. Transparent communication about ESG policies will enhance engagement and support from various parties.
Utilizing renewable energy, supply chain efficiency, and business process digitalization are examples of how technology can support ESG.
Companies need to compile ESG reports periodically to assess the effectiveness of implemented strategies. These reports also help enhance transparency for investors and other stakeholders.
Several companies have demonstrated strong commitment to ESG and reaped substantial benefits. Here are two exemplary cases:
As part of its commitment to sustainable finance, Bank Mandiri has embedded ESG principles across its business operations. The bank's strategy is built on three key pillars: Sustainable Banking, Sustainable Operation, and Sustainable Beyond Banking, covering eight main initiatives outlined in its sustainability framework.
One of its notable ESG-driven innovations is Livin' Planet, launched in collaboration with Jejakin. This initiative enhances customer awareness and engagement regarding environmental responsibility through educational content, carbon footprint calculations, tree planting contributions, and transparent reporting on tree-planting efforts. Through these initiatives, Bank Mandiri not only reduces its environmental impact but also strengthens its relationship with customers who prioritize sustainability[1].
Gojek, Southeast Asia’s leading on-demand services and payments platform, has committed to achieving its Three Zeros by 2030: Zero Emissions, Zero Waste, and Zero Barriers. These sustainability goals were detailed in its first annual Sustainability Report, which outlines its long-term ESG roadmap[2].
Under the GoGreener initiative, Gojek has implemented programs such as the GoGreener Tree Collective and GoGreener Carbon Offset, developed in partnership with Jejakin. These features allow users to track their carbon footprint and take action by contributing to carbon offset programs. By integrating sustainability into its business model, Gojek demonstrates a strong commitment to reducing environmental impact while fostering social inclusion and economic progress.
Opsigo, a technology-driven travel company, has positioned itself at the forefront of sustainable corporate travel. By partnering with Jejakin, Opsigo has introduced an innovative carbon emission tracking feature in Opsicorp, its corporate travel management platform[3].
This pioneering initiative enables businesses to make informed, eco-friendly travel decisions by providing real-time carbon emission data for air travel. With this integration, companies can:
✅ Choose more efficient flight routes.
✅ Reduce unnecessary travel frequency.
✅ Participate in environmental mitigation programs.
By incorporating sustainability into corporate travel, Opsigo empowers businesses to actively contribute to climate action while improving operational efficiency.
These companies exemplify how ESG implementation can drive positive environmental, social, and governance impacts while fostering long-term business sustainability.
ESG is not just a concept but a business strategy that enhances a company's competitiveness in the modern era. By implementing ESG, companies can attract more investors, increase customer loyalty, and reduce legal and operational risks. Despite the challenges in its implementation, the right strategies will help companies effectively adopt ESG.
For businesses looking to adapt to future trends, ESG is an unavoidable step. Now is the time to move towards a more responsible and sustainable business!
By implementing ESG principles, companies not only take responsibility for the environment and society but also build a more stable and profitable business future. If you are interested in adopting ESG, start with small steps and develop strategies that align with your company’s needs!
Reference:
Jejakin’s green programs combine high-tech monitoring, biodiversity restoration, and community-led initiatives to deliver powerful, sustainable change across ecosystems.
