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Sustainability Reporting in Indonesia: Palm Oil Certified ISPO Company progress in Riau, West Sulawesi and Central Kalimantan
Last modified: 2019-10-01
Abstract
The sustainability regulation standard for the palm oil industry in the form of certification is still considered to be one of the instruments needed to offset the deforestation rate and the socio-economic impacts caused. At least since the 1990s the pressure on standardization in industries that manage forests and natural resources to pay more attention to the environment has begun to increase. Environmental damage in Indonesia has increased sharply, especially since the 1990s when large-scale and transnational investments were opened in Sumatra, Kalimantan and Sulawesi. This study uses a quantitative method with a mix method approach utilizing an assessment of the disclosure of the sustainability of the Global Reporting Initiative 4 which includes 17 Goals in the SDGs and combined with analysis of discussions with civil society organizations, local governments, tracking media records from four ISPO certified business units. This research finds that information disclosure on the sustainability of ISPO certified business units is almost impossible. The main reason is that proactive information from the ISPO business unit is not provided on the ISPO official website or on the company's official website. This is very difficult if the regional government or the central government also civil society organizations want to supervise, especially on non-financial aspects in the event of environmental and social violations of the fulfillment of the certification that has been given. This study also gives the reflection on how the palm oil governance with the palm oil certification mandatory scheme such as ISPO compare to the bussiness voluntary scheme such as RSPO contribution on SDGs especially related on prevent the increasing of environmental degradation.
Keywords
sustainability reporting, SDGs,ISPO, palm oil governance, environmental degradation