The Global Sustainability Standards Council (ISSB) has launched two international financial reporting standards, IFRS S1 and IFRS S2, which are considered a stimulus for companies to enter the carbon market. The Financial Services Authority (OJK) is pushing the DPR to immediately discuss regulations regarding the carbon exchange. IFRS S1 requires companies to submit opportunity and risk profiles regarding sustainability issues in the short, medium, and long term, while IFRS S2 specifically states climate issues related to IFRS S1. The ISSB standard aims to provide quality, transparency, and reliability of reports related to the environment, social, and business governance. The standard will encourage companies to engage in carbon exchanges, as it involves external parties to audit the company.Indonesia has enforced the obligation to report sustainability efforts (ESG) but investors are still doubtful if companies implement ESG policies. A survey by the Mandiri Institute in 2022 found that 70% of the 309 investors experienced information problems in terms of ESG information or data, and only 26% invested in ESG products. Additionally, 52% of 190 public companies in Indonesia do not measure carbon emission footprints and 37% do not set targets in terms of sustainability and climate risk in risk management. The existence of a standard for sustainability reporting has boosted the urgency for the OJK to release a carbon stock exchange in the near future.Link di fonte: https://www.kompas.id/baca/ekonomi/2023/06/27/standar-issb-dapat-menarik-minat-perusahaan-masuk-bursa-karbon (ICE GIACARTA)

Fonte notizia: Kompas - 27 June 2023