Indonesia: Investor resistance to ESG transparency, challenges for the green palm oil ecosystem

Published Jun 6, 2024

Tridge summary

A report by the Center for Governance and Sustainability (CGS) of the National University of Singapore (NUS) Business School has found that investors are resistant to palm oil companies being transparent in their Environmental, Social and Governance (ESG) reporting. The study, which analyzed 36 palm oil companies listed on stock exchanges in four countries, found that transparent companies are undervalued by investors. The report urges investors to consider the non-financial performance of companies and emphasizes the need for collaboration between governments, palm oil companies, and investors to achieve sustainability in the sector. The research was conducted using the Sustainability Policy Transparency Toolkit (SPOTT), which rates companies based on the transparency of their ESG disclosures.

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Original content

The Center for Governance and Sustainability (CGS) National University of Singapore (NUS) Business School report found investor resistance to palm oil companies being transparent in their ESG (Environmental, Social and Governance) reporting. The results of this study reveal that the more transparent companies are about these initiatives, the lower their value in the eyes of investors. ADVERTISEMENT Director of CGS at NUS Business School, Professor Lawrence Loh stated that this needs to change, according to him investors need to pay attention to the impact of ESG responsibilities, not only on the company's financial performance and value but also on non-financial performance. Also Read: Jokowi Era Mega Project Abandoned by Boss, Hasto PDIP: Construction of Palm Oil Factory Just Delayed... "The main aim of ESG responsibility is to incorporate socially acceptable norms into business activities to achieve sustainability goals for the good of society," he said as quoted from a written ...

Source: Wartaekonomi