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Sustainability and Integrated Report


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Disclosure on CSR activities in the annual report is requiredby: Capital Market Supervisory Agency Regulation since2005.

Disclosure on CSR activities in annual report is alsomandated by Limited Company Law ( Law No.40 Year 2007)

Pasal 66 (2.c) UU No 40/2007 : Perusahaan wajib melaporkanCSR bagi yang memanfaatkan sumber daya alam

Pasal 74 UU No 40/2007 ayat 1-4: Adanya sanksi, tetapibersifat umum dan belum dijelaskan tata cara pelaksanaannya

All Stated Owned Enterprises is mandated to allocate 1% - 3%of net profit after tax for financing the communitydevelopment program and produce an audited stand alonecommunity empowerment and partnership report/PKBL(Since 1996).

Regulation on CSR Reportingin Indonesia


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Regulations

1. Keputusan Menteri BUMN Per-05/MBU/2007 tentang ProgramKemitraan Bina Lingkungan (PKBL).

2. Peraturan Perseroan Terbatas (PT), yaitu Undang-UndangPerseroan Terbatas pasal 74 Nomor 40 Tahun 2007.

3.Peraturan Pemerintah (PP) Nomor 47 Tahun 2012 TentangTanggungjawab Sosial dan Lingkungan sebagai pelaksanakanketentuan Pasal 74 Undang-Undang Nomor 40 Tahun 2007.

4. Undang-Undang Penanaman Modal Nomor 25 Tahun 2007.5. Undang-Undang Minyak dan Gas Bumi Nomor 22 Tahun 2001.

6. Undang-undang Nomor 13 Tahun 2011 Tentang PenangananFakir Miskin.7. Peraturan Menteri Sosial RI Nomor 13 Tahun 2012 tentang Forum

tanggungjawab dunia usaha dalam penyelenggaraanKesejehteraan Sosial pada level Provinsi.


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Bapepam Regulation: August 2012

Regulation Reinforcement


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Bapepam Regulation: August 2012

Regulation Reinforcement


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Sustainability Report N o n- F

i n

a n c i a l r e p o r t

Sustainability Report is

the report on theeconomic, environmentaland social policies,impacts and performanceof an organization and its

products in the contextof sustainabledevelopment (ThreeBottom Line Reporting)


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1. Transparency2. Accountability

3. Communication4. Business strategy: financialrewards, competitors challenge,global practices, good image,investor attraction

5. Award and recognition6. Ready for regulations

Reasons for Sustainability Reporting


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Environment

Social:

CommunityDevelopmentHealth, Safety & SecurityLabor & WorkplaceHuman RightProduct ResponsibilityPhilanthropy

Economic

Best PracticesIndustry InitiativeStandards

Norms & EthicsEmpathy & CaringPeer pressureHigh impact

VOLUNTARYMANAJEMEN CSR/

SUSTAINABILITY

MANDATORY

Comply withregulations

Laporan Keberlanjutan

Sustainability Report

Laporan CSR

SusDev Report

SCOPE OF SUSTAINABILITY REPORT


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COMPONENTS OF A REPORT

1. CEO statements2. Organisational profile3. Scope4. Key impacts5. Governance6. Sustainability-related policies statement7. Management system and procedures8. Stakeholder engagement9. Performance and compliance10. Targets and achievements11. External assurance


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Global ReportingInitiative

www.globalreporting.com

GRI Guidelines 2000, 2002, 2006, 2011 , 2013 (GRI 4)


11/26Reporting Trend www.GRI.com


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Sustainability Report Trend

Reporting Trend

2012

32

More than 50company hasmade SR, but

didn

t submit inISRA


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GRI Report development in 5 s teps

CommunicateMonitor Connect Define P r e p a r

a t i o n

Prepare


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1. Relatively thinner report2. Materiality aspects & boundaries

(materiality test)1. Deeper management discussions2. Sustainability Strategy / Roadmap3. Assurance Service is recommended4. No application level

G4 offers:

Understand the change in G4


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REPORT QUALITYBalance

Comparability

Accuracy

Timeliness

Clarity

Reliability

REPORT CONTENTMateriality

Stakeholders InclusivenessSustainability Context

Completeness

Principle


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Laporan harusmenggambarkandampak ekonomi,

sosial & lingkunganperusahaan yg:SignifikanMempengaruhipandangan &keputusan stakeholder

Materialitas


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ECONOMICPERFORMANCE

INDICATORS

EC1 EC9

STRATEGYAND

ANALYSISG4 -1, G4 -2

DISCLOSURE ON MANAGEMENT APPROACH

LABOR PRACTICESAND DECENT WORK

LA 1 LA16MM 4

PRODUCTRESPONSIBILITY:

PR1 PR9

MM11

HUMANRIGHTS:

HR1 HR12

MM5

SOCIETY:

SO1 SO11

MM6 MM10

ENVIRONMENTALPERFORMANCE

INDICATORS

EN1 EN34MM1 MM3

SOCIALPERFORMANCE

INDICATORS

Sustainability report

Sustainability report based on GRI

ORGANIZATIO

NAL PROFILEG4 -3 // G4 -16

MATERIALASPECT &

BOUNDRIESG4 -17 // G4 -23

STAKEHOLDERS

ENGAGEMENTG4 -24 // G4 -27

REPORT

PROFILEG4 -28 // G4 -33

GOVERNANCEG4 -34 // G4 -55

ETHIC &

INTEGRITYG4 -56 // G4 -58


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WHERE to NEXT?

The propositions set out by GRI in the opening plenary of 2010GRI Conference were that:

By 2015, all large and medium-size companies in OECD countriesand large emerging economies should be required to report on their

Environmental, Social and Governance (ESG) performance and, ifthey do not do so, to explain why.

By 2020, there should be a generally accepted and appliedinternational standard which would effectively integrate financial andESG reporting by all organizations.


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Increasing number of SR

Trend of IRGrowing demand of SRCompetitive advantages

More regulationsSustainability issues is on going globallyBusiness strategy linkage to sustainability

FACTS


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PART OF PICTURE: FINANCIAL REPORT

?Non Financial Report


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SUSTAINABILITYREPORTING

INTEGRATEDREPORTING


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IIR Framework


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IIR Framework

c.

d.


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IIR Framework

e.

f.

g.


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Juniati Gunawan

Trisakti University

Email:[email protected]: 0816 1935 611

iai sr and ir

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