Carbon Tracking & ESG Reporting: Guide for Indonesian Companies

Measuring and reporting carbon emissions for ESG compliance

Published: 20 Juni 2024
10 min read

Indonesian companies face growing pressure to measure, report, and reduce their carbon emissions. From OJK sustainability reporting requirements for listed companies to international supply chain demands, carbon tracking has become a business imperative. Understanding how to accurately measure and report emissions is the essential first step.

Why Carbon Tracking Matters for Indonesian Companies

Indonesia has committed to reducing greenhouse gas emissions by 31.89% by 2030. Companies face regulatory requirements (OJK sustainability reporting), supply chain demands (Scope 3 disclosure from global buyers), investor expectations (ESG ratings), and carbon tax preparation. Early adoption of carbon tracking creates competitive advantage.

Understanding Emission Scopes

GHG Protocol defines three scopes: Scope 1 (direct emissions from owned sources — fuel combustion, company vehicles, industrial processes), Scope 2 (indirect emissions from purchased electricity and energy), and Scope 3 (all other indirect emissions — supply chain, employee commuting, waste). Most companies start with Scope 1 and 2, then expand to Scope 3.

Carbon Measurement Methodology

Carbon emissions are calculated using activity data multiplied by emission factors. For example: electricity consumption (kWh) × grid emission factor = CO₂ equivalent emissions. Accurate tracking requires systematic data collection from utility bills, fuel purchases, travel records, and operational data across all facilities.

Choosing a Carbon Tracking Platform

A good carbon tracking platform collects activity data from multiple sources, applies Indonesia-specific emission factors, calculates Scope 1, 2, and 3 emissions, generates OJK-compliant sustainability reports, and provides dashboards showing emission trends and reduction opportunities. JEJAKU is one example of a platform designed for Indonesian companies.

From Tracking to Reduction

Carbon tracking is not just reporting — it enables reduction. The best platforms identify emission hotspots, model reduction scenarios, track progress against targets, and support carbon offset management. Companies can set science-based targets and use their tracking platform to monitor their decarbonization journey.

FAQ

FAQ

OJK requires listed companies to publish sustainability reports including environmental metrics. While detailed carbon tracking is not yet universally mandatory, the trend is toward more specific emission disclosure requirements.