Sustainability Blue Disclosures
The research conducted by Wanta and Gunawan (2021) under the title Sustainability Disclosures: Index Development and Preliminary Implementation aims to develop a sustainability blue disclosure index and evaluate the implementation to provide preliminary findings through the information disclosed in annual reports. This disclosure considers blue economy activities, namely Sustainability Blue Disclosures (SBD). This is qualitative research with a content analysis approach for quantifying how many disclosures in the annual or sustainability report are relevant to SBD. Score 0 and 1 as dummy variable was applied to indicate no relevant disclosure with SBD index (0) and any relevant information with SBD index (1). Interviews with experts in the field of sustainability were also conducted to obtain more information on environmental, economic, social, and governance (EESG) aspects and indicators for disclosures.
To develop the SBD index, there are several steps have been undertaken. POJK 51/2017 and the Blue Economy principles stipulated in Law 32/2014 are the primary sources to be used.
- Step 1: Collecting data indicators from sustainability report standard POJK51/2017 (66 indicators)
- Step 2: Combining the disclosure indicators with principles of Blue Economy law 32/2014 (4 indicators)
- Step 3: Analysing each identical indicator’s meaning for POJK 51/2017 and Blue Economy principles with tabulation.
- Step 4: The tabulation results show cross indicators between POJK 51/2017 and POJK51/ 2017. This indicator is the principle of community involvement, similar to social indicators. Hence, after choosing one of them, the final result obtained 69 indicators for the SBD index.
After stage 4 was completed, additional indicators for the SBD index were added following the results of the interviews. This is a significant contribution to establishing the SBD index. Three indicators added are namely:
- Information on the efficiency of using marine or fisheries resources or information on maximizing marine or fisheries resources by companies.
- Information on company policy information in minimizing waste of marine or fisheries resources or maximizing waste generated from business activities.
- Information or policy on maximizing the use of marine or fisheries resources in increasing company profits.
The paper has provided two contributions to developing the SBD index and empirical study of CSD in public companies related to marine or fisheries resources in Indonesia. The SBD index comprises economy, environmental, social, governance, and Blue Economy Principles. The blue economic principal indicator is a new method added to the existing indicators in POJK51/2017. The indicators of the blue economic principles are as follows; information on the efficiency of the use of marine/fisheries resources or information on maximizing either marine or fisheries resources by companies; second, Information on company policy is minimizing waste of marine or fisheries resources or maximizing waste. These results may indicate that the companies are in the early stage of understanding sustainability issues, including the availability and quality of raw materials, changes in environmental quality, working capital performance, fluctuation of the foreign exchange rate, and demand from the global markets.
- Google Image. (2022)
- Financial Services Authority. (2017). 51 /POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies.
- Law of The Republic of Indonesia. (2014). Blue Economy law.
- Wanta D. and Gunawan J. (2021). Sustainability Disclosures: Index Development and Preliminary Implementation. Jurnal Riset Akuntansi Kontemporer. 13(2), 97-105.