ESG Disclosure & Reporting

Comprehensive Publication, Global Compliance: ESG Disclosure & Reporting

In Indonesia, corporate compliance with Environmental, Social, and Governance (ESG) disclosure has been formally regulated by law. For example, for listed companies, public companies, and Financial Services Institutions (Lembaga Jasa Keuangan/LJK), the Financial Services Authority (Otoritas Jasa Keuangan/OJK) has established comprehensive and specific disclosure standards through OJK Regulation No. 51/POJK.03/2017. These disclosure requirements are further strengthened by OJK Circular Letter No. 16/SEOJK.04/2021, which provides detailed guidance on the specific actions that must be reported.

In practice, however, compliance with ESG regulations is not merely a matter of preparing a report, but of ensuring that all data, methodologies, and narratives presented are technically defensible and ready to be examined by an independent third party. Many companies face challenges in aligning their operational data with continuously evolving reporting standards, creating the risk of disclosures that are inconsistent, difficult to verify, or fail to meet the expectations of investors and regulators.

Three Strategic Actions Companies Should Take Today:

Assess Data Gaps Against OJK & Global Regulations

Identify the expectations of regulators and investors, and evaluate the extent to which current operational data is prepared to meet the stringent standards of POJK No. 51/2017 and SEOJK No. 16/2021 in order to determine the ideal ESG target state for your business.

Develop Implementation Plan & Analysis Gap

Develop a tactical operational roadmap to bridge internal data gaps while restructuring reporting methodologies so that the resulting narratives are supported by a strong audit trail.

Map Short-Term Requirements & Due Diligence Readiness

Identify critical metrics that must be reported in the near term while building an adaptive data infrastructure to anticipate future regulatory developments and ensure that reports are ready to undergo objective third-party review.

Wordsmith Group ESG Disclosure & Reporting Approach

We simplify the complexities of ESG reporting through a structured three-stage approach, ensuring regulatory compliance while creating long-term value for your business:

Diagnose
We begin with a Sustainability Reporting Diagnostic to assess your company’s current position within the ESG landscape. This stage focuses on evaluating the readiness of internal data against the latest standards, while identifying gaps (gap analysis) that need to be addressed before the reporting process begins.
Prepare
We prepare your data and operational infrastructure to ensure audit readiness through Sustainability Assurance Readiness. Critical data, including carbon emissions, energy consumption, occupational health and safety (OHS/HSE), and governance, is consolidated through a rigorous process to meet international assurance standards such as ISAE 3000, AA1000, and ISSA 5000, ensuring a smooth third-party verification process.
Align and Execute
We prepare and execute the final report through comprehensive alignment with multiple reporting frameworks:
- Local & Global Compliance: Rigorous integration with POJK No. 51/2017 and SEOJK No. 16/2021 for the domestic market, while aligning with global standards, including GRI, ISSB, CSRD, and the EU Taxonomy.
- Digital Innovation: Implementation of Digital Tagging within reporting documents to facilitate automated machine reading by international ESG rating agencies.
- Future Strategies: Through our Sustainability Readiness Lab, we help organizations navigate transition risks and transform ESG commitments into tangible economic value.

Frequently Asked Questions (FAQ)

What distinguishes this ESG Disclosure & Reporting service from conventional Sustainability Report writing services?

While conventional Sustainability Report writing primarily focuses on preparing a descriptive annual corporate narrative, our ESG Disclosure & Reporting service emphasizes technical compliance, audit committee governance, assurance readiness, and global regulatory risk mitigation. This service is designed to support companies from the outset through a Sustainability Diagnostic, organize operational data to meet the same level of rigor as financial reporting, and prepare digitally tagged documentation that is ready for objective verification by independent third-party auditors in accordance with international assurance standards.

Why should ESG disclosures include descriptions of corporate policies in addition to quantitative metrics?

Under the latest global reporting standards (such as the European Sustainability Reporting Standards [ESRS) under the Corporate Sustainability Reporting Directive (CSRD)), disclosing indicators or quantitative metrics alone is no longer sufficient. Companies are required to provide clear descriptions of their policies, long-term objectives, and the concrete actions adopted by management. This demonstrates to stakeholders that the company has a mature and well-structured internal governance system, rather than simply reporting figures on paper.

There are many ESG reporting standards, such as GRI, ISSB, TCFD, and SASB. How do we determine which standard is most appropriate for our company?

Selecting the appropriate standard depends largely on who your primary stakeholders are and the strategic direction of your business.

If your priority is transparent reporting of multidimensional impacts (social, economic, and environmental) to the public and employees, GRI provides the strongest foundation.
If your objective is to attract global investors or meet capital market expectations, ISSB and SASB, with their focus on financial materiality, are the key frameworks
Meanwhile, if your company is part of a European supply chain or plans to expand into Europe, compliance with the CSRD becomes essential.

At Wordsmith Group, we do not recommend adopting every available standard without a clear strategy. Through our Sustainability Reporting Diagnostic service, we analyze your business profile, key audiences, and industry ambitions to identify the most efficient, impactful, and targeted combination of reporting frameworks through a multi-framework integration approach.

How does Wordsmith Group ensure the security of our company's sensitive data throughout the engagement?

Safeguarding the confidentiality of raw operational data, tax information, board strategic plans, and internal corporate documents is one of our highest legal and ethical commitments. Before any data exchange or information-gathering process begins, we can execute a Non-Disclosure Agreement (NDA) in accordance with mutually agreed terms.

How long does it typically take to prepare a high-quality, assurance-ready ESG Disclosure document?

A comprehensive engagement generally takes between three and six months, particularly for companies that are still developing and organizing their ESG data architecture. The most time-consuming part of the process is not drafting the narrative, but consolidating cross-functional data, conducting a gap analysis, and establishing a robust audit trail to support every reported data point. To ensure your report is ready for timely publication alongside your Annual Report for the Annual General Meeting of Shareholders (AGMS), we strongly recommend beginning the Sustainability Diagnostic process in the fourth quarter (Q4) of the current year.