Environmental, social, and governance (ESG) in Indonesia: Analyzing sustainability reports

Abstract

This study provides a descriptive analysis of data extracted from Environmental, Social, and Governance (ESG) and sustainability reports across diverse industries and regions. Using a sample of corporate reports over the past five years, the study aims to summarize and interpret trends, variability, and distribution patterns in key ESG indicators. Data was collected and standardized to ensure consistency, then categorized into environmental, social, and governance dimensions to facilitate detailed analysis. Descriptive statistics were computed to summarize trends, while cross-sectional and trend analyses highlight sectoral and regional variations. Results reveal common and emergent ESG practices, along with areas where disclosure and performance vary significantly across sectors. The findings underscore the critical need for standardized ESG reporting frameworks to enhance comparability and transparency in corporate sustainability practices. This study's main goal is to examine how Environmental, Social, and Governance (ESG) issues are disclosed in sustainability reports that Indonesian businesses publish. The purpose of this study is to determine sectoral disparities, appraise the influence of ESG practices on investment decisions and business reputation, and examine the scope and caliber of ESG activities in relation to worldwide norms. This study provides stakeholders with valuable insights into current ESG reporting practices and identifies gaps for potential improvement in alignment with evolving regulatory standards and stakeholder expectations.