Imagine working in a factory where employees operate in a safe, healthy, and humane environment. The Better Work program, a collaboration between the ILO and IFC in the garment sector, has shown how powerful this can be. An evaluation in 2016 found that workers in improved conditions completed their tasks 40 minutes faster that those working under pressure.
Better Work is just one of many concrete examples of how Environmental, Social, and Governance (ESG) principles drive sustainable business performance. Caring for workers is not merely an ethical obligation, it is a smart business move that enhances both productivity and corporate credibility.
In this edition of Leader’s Insight, Mr. Ali Rahmadi, Sustainability Division Head at Moores Rowland Indonesia, shares his perspective on how companies in Indonesia should approach ESG.
Why ESG Matters to Business Sustainability
In today’s business landscape, transparency is no longer optional. Investors, regulators, and consumers now judge companies not only on financial results, but also on how responsibly they treat people and the planet.
“ESG performance and human rights are at the core of risk management and long-term business success,” Ali explains.
“Well-managed ESG can also unlock significant opportunities, including better governance and decision-making, improved operational efficiency, stronger employee loyalty and greater access to capital.
Yet, many companies in Indonesia still view ESG as nothing more than a compliance requirement. Ali emphasizes that compliance is only the starting point. “What must change is the mindset: companies should see ESG as an investment in long-term competitiveness, not a burden.”
Leadership Must Come First
Building a company that prioritizes the well-being of its people and the environment cannot happen overnight. According to Ali, strong leadership support is non-negotiable. From there, companies can conduct stakeholder interviews to map both internal and external expectations.
“The next step is to align ESG priorities with the company’s medium- and long-term strategies,” Ali advises. He also encourages organizations to leverage existing systems, such as the Contractor Safety Management System (CSMS), and expand their use to assess and manage human rights risks.
The Reality of ESG Implementation
Despite its potential, the ESG journey is not without obstacles. Ali highlights two major challenges. First, the lack of leadership commitment. Without senior management support, ESG initiatives often lose funding mid-way, suffer from poor coordination, and risk being perceived as greenwashing.
The second obstacle is low cross-departmental awareness. Too often, ESG is viewed as the sole responsibility of sustainability teams. In truth, ESG can only succeed when it becomes a shared responsibility. As Ali puts it, just like workplace safety, ESG should be embedded across every level of the organization.
Building a Sustainable Business with Moores Rowland Indonesia
The ESG journey may not be easy, but it is far from impossible. Moores Rowland Indonesia assists companies throughout their business cycle to ensure ESG is truly integrated into their corporate governance
Our services cover strategy development, roadmap design, and the creation of effective monitoring mechanisms. With this approach, companies go beyond regulatory compliance and turn ESG into a genuine source of value, thereby enhancing efficiency, strengthening reputation, and unlocking long-term business opportunities.
Building ESG is not a journey you have to take alone. At Moores Rowland Indonesia we are ready to support you every step of the way. Contact us today for a free consultation:
Jakarta: contact-jakarta@moores-rowland.com
Bali: contact-bali@moores-rowland.com
