Corporate Obligations in Sustainability Reporting and ESG Implementation: A Comparative Study of Indonesia and China
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Abstract
This study conducts a comparative analysis of corporate sustainability reporting obligations and ESG standards in Indonesia and China, two industrialized nations in Asia. Indonesia mandates sustainability reporting for public companies and financial institutions under OJK Regulation No. 51/POJK.03/2017, aligning primarily with the Global Reporting Initiative (GRI) Standards. Meanwhile, China has introduced the Corporate Sustainability Disclosure Standards (CSDS), aiming for a unified ESG reporting system by 2030. Both countries are transitioning toward comprehensive ESG disclosures, yet differ in regulatory approaches, implementation timelines, and standard adoption. While Indonesia's framework emphasizes immediate compliance by mandating ESG implementation for public companies and the banking sector, China’s phased approach focuses on establishing a uniform national sustainability disclosure system by 2030. This comparative study highlights the evolving ESG landscapes in these industrial economies, offering insights into their strategies for enhancing corporate transparency and sustainability.
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References
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International Department, Central Committee of CPC. 2023. “Xi stresses building Beautiful China, advancing modernization featuring harmony between humanity and nature.” Xinhua, July, 2023.
Kurnia, Erika. 2023. “Dukung Investasi Hijau, Perbankan Ramaikan Bursa Karbon Indonesia.” Kompas, September, 2023.
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PwC China. 2024. “Guidelines on Self-Regulation of Listed Companies - Sustainability Report (Trial) of the People's Republic of China.”
Rustandi, Etty Murwaningsari, and Sistya Rachmawati. 2024. “The Effect of Environmental, Social and Governance (ESG) Business Strategy on Tax Aggressiveness with Corporate Social Responsibility (CSR) as a Moderation Variable.” Asian Journal of Management Entrepreneurship and Social Science 04 (01).
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