2. Indonesia’s Climate Risk & Rising GHG Emission
Source : IPCC 2022, Bappenas Buku 1, Daftar Lokasi & Aksi Ketahanan Iklim, 2021,
https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/finance-and-green-deal/just-transition-
mechanism_en
2
Early Warning
Structural
Early Action
Community
Consists of
Changed into
With the role
of
The Just Transition Mechanism (JTM) is a key tool to
ensure that the transition towards a climate-neutral
economy happens in a fair way, leaving no one behind. It
provides targeted support to help mobilized around
€55 billion over the period 2021-2027 in the most affected
regions, to alleviate the socio-economic impact of the
transition.
The Just Transition Mechanism addresses the social and
economic effects of the transition, focusing on the
regions, industries and workers who will face the
greatest challenges, through three pillars:
1. A new Just Transition Fund
2. InvestEU "Just Transition" scheme
3. A new Public Sector Loan Facility
Cultural
Just Transition and How to Maintain Global
Temperature
3. Our Commitment to Maintain Global Temperature
Indonesia Net Zero Emission Commitment
The Government of Indonesia has submitted Long Term Strategy on
Low Carbon and Climate Resilience 2050 (LST-LCCR) document to
the UNFCCC and sectoral strategies to support the commitment to
Net-Zero Emission by 2060 or earlier.
3
As part of the implementation of Article 13 of the Paris Agreement,
Indonesia applies an Integrated National Transparency framework,
through:
a) National Registry System (Id. Sistem Registry Nasional/SRN) for
mitigation, adaptation and means of implementation both from
national and international sources;
b) National GHGs Inventory System (SIGN-SMART)
c) MRV system for mitigation including REDD+
d) Safeguards Information System for REDD+ (SIS-REDD+)
e) Information Systems on Vulnerability (SIDIK) and joint adaptation and
mitigation at the Village level (ProKlim).
Source : Enhance Nationally Determined Contribution Republic of Indonesia, 2022
Harmonization is mandatory
4. Mitigation and Adaptation
4
Demand-side mitigation can be achieved
through changes in socio-cultural factors,
infrastructure design and use, and end-use
technology adoption by 2050.
Source : IPCC, 2022
a. Nutrition b. Manufactured products, mobility, shelter
c. Electricity: indicative impacts
of change in service demand
Enabler
of Climate Change
Mitigation & Adaptation
G20
Covid 19
6. Eco Living: Is what we should do
Energy efficiency—including residential, industrial and municipal energy
savings—is central to achieving the energy and climate goals of
countries around the world. It remains the lowest-cost option to meet
national climate change commitments. For this reason, energy
efficiency is often referred to as the ‘first fuel’, the resource to be used
before all other energy options.
Source: https://www.energy.gov/sites/default/files/2014/05/f15/emv_ee_program_impact_guide.pdf
Measure
Reduce
Offset
Evaluating Measurement
6
Register to SRN.
Without SRN useless
Lighting Cooling Office Equipment Supply Chain
Stakeholders (Supplier,
Client, Etc.) with
environmental compliance
Green Procurement
Socialization to Employees
Work from Anywhere
Turn off when not in use
Replace with more energy
efficient tools
Using paper back and forth
Environmentally friendly
energy source
Using LED lights
Update building
infrastructure with
Skylights or Reflectors
Passive Cooling Design
Using Curtain
Using AC VRV (Variable
Refrigerant Volume) System
Reducing Carbon Footprint
8. What is ESG?
Environmental, Social, and Governance (ESG) is a set of operational
standards that refer to three main criteria in measuring the
sustainability and impact of an investment on a company.
Source : ESG Reporting Guide 2.0 Nasdaq, 2019
https://www.cfainstitute.org/en/research/esg-investing; https://www.pwc.nl/en/insights-and-publications/services-and-industries/financial-sector/six-
key-challenges-for-financial-institutions-to-deal-with-ESG-risks.html
Translating the ESG strategy into the
organization’s ecosystem
Adapting stakeholder management and
spreading ESG knowledge in-house
Collecting, managing and using ESG data
for risk modelling
Delivering and communicating on ESG
commitments
Embedding ESG in existing risk practices
ESG Challenge Response
Seeing past the ESG label and getting to
the issues
Integrating ESG in the credit or
investment cycle
Training investment teams on effective
ESG engagement with a diversity of
companies
Using CDD/KYC (Client Due
Diligence/Know Your Customer) practices
for ESG data collection
Actions that would help buyers grasp the
added value of ESG
Integrating ESG in Risk Management
Framework
Striking the right balance: anticipating
adequately to relevant risks
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2
3
4
5
6
9. Integrating ESG in The Decision-making Process
The ones that perform well on ESG are well-positioned for
the future and have better chances of adapting their
products and services to a global consumer base that is
increasing pushing for environmental protection, respect
for human rights and corporate transparency. The number
of financial institutions that integrate ESG in their
decision-making processes is on the rise globally, and it is
expected to increase in a post-Covid economy as studies
have shown that companies with high ESG ratings held up
better than their competitors during the crisis.
Source : https://www.pwc.nl/en/insights-and-publications/services-and-
industries/financial-sector/six-key-challenges-for-financial-institutions-to-
deal-with-ESG-risks.html
Source : KPMG International, 2021
Dependencies & Influences of ESG Developments
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