Introduction to

Sustainability Reporting

CORPORATE SUSTAINABILITY
MANAGEMENT & ACCOUNTING
 Corporate Public Reporting
Milestones

1850 1990 2000

s s

Social accounting
Financial accounting & reporting Sustainability
& reporting reporting
Environmental
reporting
Other names:
CSR Reporting
SD Reporting
 Standar: PSAK/IFRS Unit Pengukur: Uang Auditor : KAP

Akuntansi Laporan

STAKEHOLDERS
Keuangan Keuangan
Keuangan

Aktivitas /
Transaksi AKUNTABILITAS CSR
CSR /
Sustain-
ability
Akuntansi Laporan
Non
Sustainability Sustainability
Keuangan

Standar: GRI G3 Guideline Unit Pengukur: Multi Unit Auditor: KAP/Konsultan

@ Ali Darwin, 2008

Sustainability Reporting Vs Financial Reporting

Bottom Lines National International

Standards & References
Setter Body

Financial - Balance Sheet Financial Accounting International Financial

Reporting - Income statement Standards. Accounting Standards
Setter : IAI Setter: IFAC
-- Mandatory

Sustainability - Environmental Sustainability Sustainability

Reporting - Social, and Reporting Reporting Guidelines
- Economic Guidelines. Setter: GRI based in
-- Voluntary / performances Setter: NCS the Netherlands since
-- Mandatory 2000
Financial Accounting Standards
Related to CSR Expenses
Standar Pelaporan dan Akuntansi
CSR dalam PSAK & ISAK

PSAK No. 1 paragraph 9

PSAK No 18, 24, 29, 32, 33, 45, 57
ISAK No. 03.
 Financial Accounting Standards (PSAK)

Perusahaan dapat pula menyajikan

laporan tambahan seperti laporan
mengenai lingkungan hidup .,
khususnya bagi industri dimana faktor-
faktor lingkungan hidup memegang
peranan penting.
( PSAK No. 1, Paragraph 9, September 1998)
 Financial Accounting Standards (PSAK)

PSAK No 33 Akuntansi Pertambangan Umum (1994)

PSAK No. 32 Akuntansi Kehutanan (1994)
PSAK No. 29 Akuntansi Gas dan Minyak Bumi (1990)
PSAK No 45 Pelaporan Keuangan Organisasi Nirlaba (1997)
PSAK No 18 Akuntansi Dana Pensiun (1995)
PSAK No 24 Imbalan Kerja (2004)
PSAK No 57 Kewajiban diestimasi, Kewajiban Kontijensi, dan
aktiva kontijensi (2000)
ISAC No. 03 Interpretasi tentang Perlakukan Akuntansi atas
pemberian sumbangan atau bantuan (1997)
 Sustainability Reporting
Sustainability Reporting is
the reporting on the Economic
economic, environmental Performance
and social policies, impacts
and performance of an
organisation and its
products in the context of Environmental Social
sustainable development Performance Performance
(Three Bottom Line
Reporting)

To measure and report CSR Performance

 DATA INPUT DATA
-- Quantitative PROCESSING OUTPUT
-- Qualitative

SUSTAINABLE
DEVELOPMENT

CORPORATE
SUSTAINABILITY
Manually
Policies/Commitment/Activities SUSTAINABILITY
REPORTING
CORPORATE
CORPORATE SOCIAL Computerize Printed
RESPONSIBILITY RESPONSIBILITY
Mandated by Law (Voluntary)
Website
Economic Environment - Social

Sustainability Reporting Workflow

The Family of
Sustainability Reporting

Corporate Sustainability Report

Corporate Social Report
Environmental Report
Social Report
Social and Environmental Report
Nature of Sustainability Report
Producing an evironmental or suistainability report
will enable the board to answer these key question
with confidence:
Does our level of transparency meet the demands of
todays society?
Do we know who our stakeholders are? Do we know
what their concern are? Do we address these concern?
Do we know what our impacts are? Do we
communicate how we take responsibility for our key
environmental and social impacts?
Are we accountable for all our impacts on society and
the environment?
 Main Users of SR
Society/Community
Socially Responsible Investors
Socially Bankers
Government institutions
Management & Employees
 Drivers for reporting
Mandatory
Company ethos
Controversial / high impact sectors
Peer pressure
Recognition of good business sense
 Why report?
Increases accountability & transparency, demonstrates
responsibility & openness

Stakeholders : build trust, addresses needs, strengthens dialogue

Reduces corporate risks and protects reputation

Can be used in investment analysis

Drivers internal and continuous improvements

Gains competitive advantage in capital, labor, supplier and

costumer markets
 Benefits to reporting
Strengthens dialogue with stakeholders

Aligns corporate vision and principles with internal

business practices and activities

Drives internal and continuous improvements

Gains competitive advantage in capital, labor, supplier

and costumer markets

Manages risk and protects reputation

Components of a report
1. CEO statements
2. Organisational profile
3. Scope
4. Key impacts
5. Governance
6. Sustainability-related policies
statement
7. Management system and procedures
8. Stakeholder engagement
9. Performance and compliance
10. Targets and achievements
11. External assurance
 Guidelines/Standard

Global Reporting Initiative (GRI) Sustainability

Reporting Guidelines

GRI Guidelines 2000, 2002, 2006

GRI 2006 - Indicators
Sustainability
Reporting

Environmental Social Economic

Performance Performance Performance

Materials,
Energy,
Water,
Environmental Biodiversity,
Management:
Emissions,
Effluents, and waste,
Suppliers,
Products and services,
Compliance,
Transport,
GRI 2006 - Indicators
Sustainability
Reporting

Environmental Social Economic

Performance Performance Performance

Labour Practices and

Decent Work:
Employment,
Labour/management relations,
Health and safety
Training and education,
Diversity and opportunity
Society
Community, Bribery and
corruption, Political
contributions,
Competition and pricing
Human Rights
Strategy and
management, Non- Product
discrimination, Responsibility
Freedom of
Customer health and
association and safety, Products and
collective bargaining, services, Advertising
Child labour, Forced Respect for privacy
and compulsory
labour, Disciplinary
practices, Security
practices.
GRI 2006 - Indicators
Sustainability
Reporting

Environmental Social Economic

Performance Performance Performance

Direct economic impacts to :

Customers,
Suppliers,
Employees,
Providers of capital, and
Public sector
Components of a report
1. CEO statements
2. Organisational profile
3. Scope
4. Key impacts
5. Governance
6. Sustainability-related policies
statement
7. Management system and procedures
8. Stakeholder engagement
9. Performance and compliance
10. Targets and achievements
11. External assurance
Qualities of a good report
Completeness
Communication
Convergence
Credibility
Materiality
Responsiveness
Performance/impact focus
Assurance
 GRI Sustainability Report Mapping

1. Strategy and 2. Organizational 3. Report 4. Commitments &

Analysis Profile Parameter Engagements

Boards Statement, 1.1 Report Profile, 3.1 3.4 Governance

Organization Background Report Scope&Boundary,3.53.11 External Initiatives
Key Impacts, 1,2 information (RG 2.1
Risk and Opportunity, 1.2 GRI Content Index, 3.12 SO Engagements
2.10) Assurance, 3.13

5. Management
Approach and
Performance
Indicators Social
Economic
Goal and performance
Environmental Policy
Organizational
Goal and performance Goal and performance responsibility
Policy Policy Training and awareness
Others Organizational Monitoring and follow up
responsibility Others
Training and awareness
Goal and performance Monitoring and follow up Performance Indicators -36
Policy Others Labor, 14
Others Human Right, 9
Performance Indicators - 9 Performance Indicators - 30 Society, 8
Product Responsibility, 9
Practical experience
on sustainability
reporting
Number of
Sustainability
Report
 Reporting in Malaysia
The Industrial Products sector is the largest sector
involved in environmental reporting, comprising of 23%
of reporting companies in 1999.
There are an increasing number of KLSE main board
listed companies engaging in some form of
environmental reporting.
Half of the reporting companies were in the list of the
top 100 companies in Malaysia, representing 20% of the
top 100 Malaysian companies who engage in some(ACCA form
2004)
of environmental reporting.
 Reporting in Singapore
14% of 160 companies listed on the Singapore Stock
Exchange (SGX), were found to publish an
environmental report.
Amongst disclosing companies there is a tendency to
concentrate mainly on general environmental policies
and products / processes with environmental benefits.
The main disclosing sectors are the manufacturing /
processing, property development sectors and the
transportation sectors.
Of 13 Government Linked Companies and Statutory
Boards, 23% (3 companies) disclosed some form of
environmental information in their annual report.
(ACCA 2004)
 Reporting in Japan
Over 380 reports have now been published in
Japan since 1993.
In 2001, the Japanese Government issued
environmental reporting guidance which
Japanese companies have taken up and used.
72% of the top 100 Japanese companies now
publish non- financial data, and the greatest
number of companies using the GRI
Guidelines.
(ACCA 2004)
 Reporting in Hong Kong
In Hong Kong, the first environmental
report was published in 1997.
Since then, around 20 large corporations,
mostly in the transport, property
management and electronics sectors, now
disclose environmental information.
(ACCA 2004)
 Reporting in Sweden

Sweden introduces state sector Sustainability

reporting regulations

All state-owned companies in Sweden will

be required to produce annual sustainability
reports from 2009.
 Reporting in Indonesia
Disclosure of social and environmental
responsibility in annual report is required by:
Bapepam Regulation and Limited Company
Law (UU No. 40 Year 2007)
In general, corporate social activities is applied
by many companies, such as; social welfare
programs for local communities, charity
programs for the red cross, orphanages, blood
donor activities, linked with Dompet Dhuafa
or other schemes.
Indonesia
Sustainability
Reporting
Award
(ISRA)
 List of the Indonesian-based companies released
a stand-alone Sustainability Reporting in 2007.

1. PT Kaltim Prima Coal. Private Company in Coal Mining industry. - www.kpc.co.id

2. PT Astra International, Tbk,. - Automotive industry. - www.astra.co.id
3. PT Riau Andalan Pulp & Paper. Private company in Pulp and Paper industry, -
www.aprilasia.com.
4. PT Tambang Batubara Bukit Asam, Tbk.- Coal mining industry.- www.ptba.co.id
5. PT Aneka Tambang, Tbk, - Gold and other metal mining.- www.antam.com
6. PT Telekomunikasi Indonesia, Tbk., - Telecommunication industry. www.telkom.co.id
7. PT Timah, Tbk., - Tin mining industry. www.timah.com
8. PT International Nickel Indonesia, Tbk., Nickel mining industry, www.inco.co.id
9. PT Indah Kiat Pulp & Paper , Tbk. - Pulp and Paper industry. www.asiapulppaper.com
10. PT Unilever Indonesia Tbk, - Consumer product, www.unilever.co.id
11. PT Medco Energi International Tbk, - Oil & gas industry, www.medcoenergi.com.
12. PT Pembangunan Jaya Ancol, Tbk., - Property and amusement industry.-
www.ancol.com

37
Objectives
To promote sustainability management in Indonesia

To elevate sustainability reporting practices in Indonesia

To design, disseminate, and promote standardized

sustainability reporting for organisations in Indonesia

 Strategic Plans

Organise the training and certification for :

--- Certified Sustainability Reporting Specialist (CSRS)
--- Certified Sustainability Reporting Assurer (CSRA)
By 2010 Indonesia will have a 160 SRS and a 80 SRA
By 2010 SR could be required as a mandatory reports for
specific PLC in Indonesia
Sustainability Report

Examples
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