Sustainable business growth cannot be separated from Environmental, Social and Governance (ESG) elements. This was conveyed by Rizky Anugrah, Head of Program of Instellar at the Startalk: Generating Sustainable Business Growth for Social Enterprises event organized by Skystar Ventures.
What is ESG?
ESG is a framework used to measure company behavior in three areas, namely environmental footprint, social footprint and governance practices. ESG was created not just to create value, but how to create company sustainability to face challenges.
How important is ESG?
Rizky said that ESG is very important for every company to have, because ESG can reduce risks in production or business operations, which makes it easier for companies to achieve their goals and respond to crises that occur.
Apart from that, ESG can also create an opportunity to enter new markets. Constantly changing market conditions can result in a mismatch between supply and demand. ESG is here to bring added value to create profits and increase investment returns, as well as help penetrate the market.
How Instellar implements ESG
We implement ESG by actively designing programs aimed at developing a sustainable ecosystem, one of which can be seen in a program aimed to reduce single-use plastic HackSUP (Hack Single-Use Plastic) by challenging FnB and stall entrepreneurs to reduce the use of plastic waste in their business operations.
Apart from designing programs with partners, Instellar also helps social entrepreneurs to gain access to new markets and collaborate. Recently, Kulaku and Greenie, social entrepreneurs participating in Instellar & IKEA Social Entrepreneurship Accelerator (I-SEA) program collaborated and are now working together to create products with added value by utilizing coconut fiber waste produced by Kulaku.
Another participant of the program, Duitin has also collaborated with IKEA Kota Baru Parahyangan recently. The collaboration between the two allows IKEA Kota Baru Parahyangan customers to exchange their recyclable waste and get reward points through the Duitin platform.
Interested in implementing ESG in your organization’s business operations? We’re here to help. Contact [email protected] for further information.
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