Recent cases sparked concerns about labor exploitation and poor working conditions, specifically in the fishery industry. The legal instruments to protect human rights across the supply chain and consumers’ awareness of the “true cost” of the seafood are in question.
ESG issues, which are attached to the entities in which the financial institutions invest, may cause reputational, social, and legal costs, not only to the investees but also the investors. One of sectors that is significantly affected by a number of ESG issues is forestry.
Earlier this month (8/4/2021), Lestari Capital launched the ‘Rimba Collective’ initiative that aims to deliver US$ 1 billion to protect and restore forests in Southeast Asia over a 25-year duration. Poised to be one of the largest private sector-enabled forest conservation initiatives, Rimba Collective is backed by consumer goods giants PepsiCo, Nestlé, Procter & Gamble, and palm oil trader Wilmar International. The initiative aims to protect and restore over 500,000 hectares of tropical forests, starting in Indonesia, before expanding to other Southeast Asia countries.
Earlier this year (2/2/2021), the Ministry of Environment and Forestry (KLHK) under Joko Widodo Administration excluded coal waste, specifically the coal fly ash and bottom ash (FABA), from the hazardous and toxic waste list (known as B3 waste). Seeing the high environmental and economic cost of the linear coal production, one solution is to utilize or recycle ash rather than diverting coal ash to landfills.
Nowadays, there is a growing number of companies communicating their environment, social, governance (ESG) performance through sustainability reporting (or integrated reporting), answering to the increasing pressure from stakeholders for corporate sustainability and transparency. Nonetheless, there are still common misconceptions in the practices.
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