Page 202 - SUSTAINABILITY ISSUES & COVID-19

31 Sustainability Accounting as a Future
Corporate Sustainability Strategy

Ruth Agustini Sirait, Gabrielle Angela Christie

PURPOSE

Today, the environmental crisis and social demands have initiated companies to implement Sustainability Accounting
as a strategy for their business sustainability. One indicator of this application is the availability of periodic company
Sustainability Reports that can be accessed by the public. Even though the Sustainability Report preparation is still
voluntary, the government will require the publication of Sustainability Report for Financial Service Institutions, Issuers,
and Public Companies through POJK NUMBER 51/2017.

Apart from the benefits of implementing Sustainability Accounting, the company’s awareness in implementing this
initiative is still minimal. By the end of 2016, only 9% of Financial Services Institutions and Issuers listed on the Indonesia
Stock Exchange (IDX) have taken steps in issuing Sustainability Reporting. This number shows a lack of enthusiasm for
companies in Indonesia to be accountable for implementing their sustainability strategies. Supposedly, companies
that have been able to list their shares on the Indonesia Stock Exchange have the capable capacity to implement
Sustainable Reporting.

Sooner or later, the concept of Sustainable Development will disrupt the way humans do things and pay more
attention to their impact on the environment. Companies should see this as an opportunity to be at the forefront of
implementing sustainability initiatives. Although this step requires large expenses and several complex phases in its
implementation, the company is actually developing for its future success. However, it must be admitted that there are
still loopholes that may become obstacles for business actors in applying Sustainability Reporting. Therefore, through
this paper the authors hope to provide solutions to optimize the function of the Sustainability Report as a form of
sustainability strategy.

STUDY DESIGN/METHODOLOGY/APPROACH

In this study, the data was carried out using a literature study approach through secondary data. Secondary data
obtained from university articles, journals, company financial reports, government report data, and other readings
from national and international media. The authors use qualitative and quantitative descriptive analysis methods
and then observed and placed based on a particular relevant focus. For quantitative data processing, the authors
use the Compound Annual Growth Rate (CAGR) calculation method with the appropriate variables. Furthermore, the
information that has been generated will be interpreted.

The method of drawing conclusions used in this study is inductively, namely determining general conclusions based
on the results of secondary data analysis that have been obtained previously. Conclusions are drawn with the aim of
proving that the implementation of Sustainability Accounting is an appropriate sustainability strategy for companies
in Indonesia and the optimization of the use of Sustainability Report.

FINDINGS

This paper will prove a positive correlation between the implementation of sustainability accounting and company
valuations in investor’s eyes. Many parties claim that company expenses related to Sustainability Accounting will
benefit well in the future. However, the picture of the benefits itself remains unclear. This condition often prevents
companies from implementing a sustainability strategy due to the many uncertainties about the promised benefits.
Therefore, the author tries to comprehensively analyze the real benefits of Sustainability Accounting qualitatively and
quantitatively.

International Conference on Sustainability 201
(5 Sustainability Practitioner Conference)
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