Sustainability Report

IMPORTANT ROLE OF THE CERTIFIED SUSTAINABILITY

REPORTING SPECIALIST (CSRS) PROFESSION

Composed by :

KEVIN HENRICO 01031181621042

Faculty Of Economy
Major Of Accounting
Sriwijaya University
2019

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 Table of Content

Table of Content ................................................................................................................. ii

CHAPTER I ........................................................................................................................ 1
INTRODUCTION .............................................................................................................. 1
1.1. Background ......................................................................................................... 1
1.2. Objectives of Paper ............................................................................................. 3
CHAPTER II....................................................................................................................... 4
DISCUSSION ..................................................................................................................... 4
2.1. Overview of Sustainability Reporting................................................................. 4
2.2. Benefits of Sustainability Reporting ................................................................... 6
2.3. Sustainability Report Guideline .......................................................................... 7
2.4. CSRS Profession Role ........................................................................................ 8
2.5. Benefits of CSRS Program ...................................................................................... 9
2.6. Relationship Between Sustainability Reporting and CSRS Profession ................... 9
CHAPTER III ................................................................................................................... 12
CONCLUSION ................................................................................................................. 12
REFERENCES ................................................................................................................. 13

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 CHAPTER I

INTRODUCTION

1.1. Background
Business concepts in management of the company now has a change
viewpoint. Company management in managing the company no only required to
give prosperity to shareholders company only, but expected also provide benefits
to stakeholders who are on outside the company. Business concept long ago
confirmed that the company established for profit as much as possible. In this
concept then the company is only concerned the interests of management and
shareholders without paying attention the interests of the parties who are at outside
the company. Business concept only then emerges with a perspective that states that
company management must manage the company with pay attention to stakeholder
interests company interests, fine internal stakeholders company and stakeholders
interests of external companies.
In line with the development of time, understanding the meaning and
benefits of business value in business concepts shift from a single P namely profit
to 3P (TripleBottom Line). The Triple Bottom Line, initiated by Elkington (1997),
formulates three main factors in the company's operations, namely economic
factors and profits, human and society factors (people), and environmental factors
(planet). These three factors are related to each other.

Picture 1. TripleBottom Line

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 Society depends on the economy; the economy and corporate profits depend
on society and the environment, even the global ecosystem. These three
components are dynamic, and cannot be separated from social, economic and
environmental conditions and pressures, as well as possible conflicts of interest.
This approach is to improve decision making about policies and programs in a better
direction by considering economic, environmental and society aspects at the same
time. Company performance that reflects the three main factors in this 3P concept
can be demonstrated in Sustainability Reporting (SR). This report is a tool for
stakeholders to assess the extent to which companies address sustainability issues
such as savings and energy conservation, water management, waste management,
overcoming air pollution and social issues such as company participation in
improving the quality of life of local communities. SR is a real manifestation of
sustainability accounting carried out by the company to the public. The publication
of this report is a potential legitimacy for companies that care about the environment
or society. This means that the society obtains adequate information and legitimizes
the existence of the company in the midst of the society.
Increased corporate awareness of social responsibility shows the importance
of annual reports as a medium for disclosure of Corporate Social Responsibility
(CSR) practices (Kusumawardani, Setiawati, & Ginting, 2017). This increased
awareness is evident from the increasing number of companies in Indonesia that
publish Sustainability Report from year to year, as data obtained from Global
Reporting Initiatives (GRI), as of February 2015 there were as many as 63
companies that had made and published their reports
.

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 Picture 2. Trend Sustainability Report (Source: GRI)

The National Center for Sustainability Reporting (NCSR) offers a Certified

Sustainability Reporting Specialist (CSRS) program to help answer questions faced
by organizations related to Corporate Social Responsibility (CSR). The role of
Certified Sustainability Reporting Specialist (CSRS) is very important in the
process preparation of a sustainability report to deliver information from companies
to stakeholders can be more comprehensive.

1.2. Objectives of Paper

The objective of this paper is as follows :
1. Describe the important role of the Certified Sustainability Reporting
Specialist (CSRS) profession towards the needs of current corporate
reports.

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 CHAPTER II

DISCUSSION

2.1. Overview of Sustainability Reporting

Financial statements are now considered insufficient to be used to assess
company performance (Rofelawaty, 2014). In the beginning, accounting values
were a guideline in evaluating company performance. This changes because of
changes in the business perspective that carry the concept of sustainability.
Company management is required to be responsible management which in this case
means that the management of the company is not only required to manage the
company well, but also can make decisions that can impact both the social society
and the environment outside the company. Responsible management will produce
responsible business whose basic values are profit, people and planet (triple bottom
lines). One form of responsible business is sustainability reporting which will later
produce a sustainability report.
The company's sustainability report has become a new form of corporate
management responsibility. The company management is now no longer reporting
only accounting figures to corporate stakeholders, but the information submitted to
corporate stakeholders must be more comprehensive. Sustainability reporting is
closely related with corporate social responsibility reporting. It has a voluntary
character. Social responsibility reporting refers to the measurement and
communication of information about company’s effect on employee welfare, the
local society, and the environment. Information on company welfare may involves
working conditions, job security, equal opportunity, workforce diversity, and child
labor. Environmental issues may include the impact of production process,
products, and services on air, water, land, biodiversity, and human health. However,
corporate social responsibility reporting focuses only on environmental and social
disclosure, while the concept of sustainable development tied in sustainability
(Burhan, 2012).
Sustainability Reporting Awards is an annual event organized by the
National Center for Sustainability Reporting (NCSR). SRA is the culmination of
awards for advanced and developing companies in Indonesia that report their efforts

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in realizing sustainable development through economic, environmental and social
aspects.
Table 1. Ranking list – Asia Sustainability Reporting (SR) Award 2018
Award Indonesia Companies Rank
Platinum PT Vale Indonesia Tbk 1
PT Perusahaan Gas Negara Tbk 2
PT Pupuk Kalimantan Timur 3
PT Pupuk Indonesia (Persero) 4
PT Pertamina Hulu Energi ONWJ (PHE ONWJ) 5
PT Wijaya Karya (Persero) Tbk 6
PT ANTAM Tbk 7
Gold Star Energy Geothermal Wayang Windu Ltd 1
PT Indo Tambangraya Megah Tbk 2
PT Indocement Tunggal Prakarsa Tbk 3
PT Indonesia Power 4
PT Bio Farma (Persero) 5
PT Perkebunan Nusantara XI 6
PT Kaltim Prima Coal 7
PT Pertamina EP Asset 4 Poleng Field 8
PT Austindo Nusantara Jaya Tbk. 9
PT Garuda Indonesia (Persero) Tbk 10
Lembaga Pengembangan Masyarakat Amungme dan 11
Kamoro (LPMAK)
PT Bumi Resources Tbk. 12
PT Agincourt Resources 13
Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu 14
Minyak Dan Gas Bumi (SKK MIGAS)
PT Bank Maybank Indonesia Tbk 15
PT Pertamina (Persero) 16
PT Bank Pembangunan Daerah Sumatera Selatan Dan 17
Bangka Belitung
PT Bank Bukopin, Tbk 18
PT Bank CIMB Niaga 19
PT TIMAH Tbk 20
PT United Tractors Tbk 21
Silver PT PELNI (Persero) 1
PT ABM Investama Tbk. 2
PT Reswara Minergi Hartama 3
PT Bank Rakyat Indonesia (Persero), Tbk. 4
Bronze PT Sarana Multi Infrastruktur (Persero) 1
Asia Pulp & Paper 2
PT Bank Pembangunan Daerah Jawa Timur Tbk 3
PT Pupuk Kujang 4
BPJS Ketenagakerjaan 5
PT Bank Pembangunan Daerah Jawa Barat dan Banten, 6
Tbk.

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2.2. Benefits of Sustainability Reporting
The benefits obtained from sustainability reporting according to the World
Business Council for Sustainable Development include:
1. Sustainability Reporting provide information to stakeholders (shareholders,
members of the local society and government) and improve company
prospects, and help realize transparency;
2. Sustainability Reporting can help build a reputation as a tool that contributes
to increasing brand value, market share and long-term consumer loyalty;
3. Sustainability Reporting can be a reflection of how the company manages
the risks;
4. Sustainability Reporting can be used as a stimulation of leadership thinking
and performance that is supported by the spirit of competition;
5. Sustainability Reporting can develop and facilitate the implementation of a
management system that is better in managing environmental, economic
and social impacts;
6. Sustainability Reporting tends to reflect directly the ability and readiness of
the company to fulfill the long-term wishes of shareholders;
7. Sustainability Reporting help build shareholder interest with a long-term
vision and help demonstrate how to increase corporate value related to
social and environmental issues.
An effective sustainability reporting cycle, which includes a regular
program of data collection, communication, and responses, should benefit all
reporting organizations, both internally and externally.
Table 2. Internal and External Benefits of Sustainability Reporting
Internal Benefits External Benefits
Increased understanding of risks and Mitigating – or reversing – negative
opportunities environmental, social and governance
impacts
Emphasizing the link between financial Improving reputation and brand loyalty
and non-financial performance
Influencing long term management Enabling external stakeholders to
strategy and policy, and business plans understand the organization’s true
value, and tangible and intangible
assets
Streamlining processes, reducing costs Demonstrating how the organization
and improving efficiency influences, and is influenced by,

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 expectations about sustainable
development
Benchmarking and assessing
sustainability performance with respect
to laws, norms, codes, performance
standards, and voluntary initiatives
Avoiding being implicated in
publicized environmental, social and
governance failures
Comparing performance internally,
and between organizations and sectors

2.3. Sustainability Report Guideline

Sustainability reports appear as a consequence of changes in the company's
reporting paradigm. Sustainability reports emphasize reporting on information
delivery information relating to economic performance, social performance, and
corporate environmental performance. The guidelines in preparing sustainability
reports are GRI G4 (fourth generation GRI) compiled by the GRI (Global Reporting
Initiative). Global Reporting Initiative (GRI) is a network-based organization that
has pioneered the development of the world’s most widely used sustainability
reporting framework. Sustainability reports based on the GRI framework can be
used to benchmark organizational performance with respect to laws, norms, codes,
performance standards and voluntary initiatives; demonstrate organizational
commitment to sustainable development; and compare organizational performance.
GRI promotes and develops this standardized approach to fulfill demand for
sustainability information (Astini, Yuniarta, & Kurniawan, 2017).
In the GRI G4 implementation guide, it is stated that companies in preparing
sustainability reports must select and prepare information that will be presented in
the sustainability report, apply the principles of reporting, and identify material
aspects and boundaries that will be disclosed in the sustainability report. In
presenting the company's management sustainability report, it must involve all
company stakeholders and explain the economic impacts, social impacts, and
environmental impacts caused by the company's operations. In this context,
basically sustainability reports are a form of communication between company
management and company stakeholders. This form of communication is not only
in the form of accounting numbers (profits, debt, and dividends), but more broadly

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and comprehensively so that ultimately stakeholders can assess the company's
performance more fully.

2.4. CSRS Profession Role

CSRS profession certification was introduced by the National Center for
Sustainability Reporting (NCSR) to accommodate the needs regarding the
preparation of sustainability reports. The National Center for Sustainability
Reporting (NCSR) in collaboration with the Institut Akuntan Manajemen Indonesia
(IAMI) offers a Certified Sustainability Reporting Specialist (CSRS) program to
help answer questions faced by organizations related to corporate Sustainability
Responsibility (SR). The CSRS profession is tasked with interpreting the real
conditions of the company to then translate it into a sustainability report. The CSRS
profession is required to understand the GRI G4 sustainability reporting guidelines
as a basis for making sustainability reports. In carrying out a sustainability report
preparation, the CSRS profession must understand about (1) company strategy and
analysis, (2) organizational profile, (3) material aspects and boundaries related to
the company, (4) company relations with stakeholders, (5) and corporate
governance.
Material aspects are crucial because the assessment of these material aspects
will determine the quality of the company's sustainability report. Stakeholders must
first be identified who have an impact on the company's operations and then identify
what information is important to these stakeholders. In the process of preparing a
sustainability report, the CSRS profession must be guided by the GRI G4
framework. This framework can be divided into two general parts, namely reporting
principles and standard disclosures. Standard disclosures include two parts, namely
general disclosures and special disclosures. General disclosures include (1)
company strategy and analysis, (2) organizational profile, (3) corporate governance,
and (4) ethics and integrity while special disclosures include (1) disclosure of the
company's economic performance, (2) disclosure of corporate social performance
and (3) disclosure of the company's environmental performance.
Disclosure of economic performance includes direct economic benefits felt
by stakeholders due to the company's business activities. Disclosure of social

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performance includes training and empowerment of employees, freedom of
association for employees, and guarantee of employee rights. Disclosure of
environmental performance includes waste management, energy efficiency in
company activities, and reduction of carbon emissions.
This understanding will lead us to assess that the CSRS profession is very
important. The CSRS profession must be able to become the main "actor" who will
connect the interests of the company with the interests of all company stakeholders.
The CSRS profession must be able to translate items contained in the GRI G4
guideline to be implemented in accordance with the real conditions in the company.
The fact that happens is that most companies in Indonesia have not been able to
fulfill all the items contained in the GRI G4.

2.5. Benefits of CSRS Program

Provide information on the latest developments regarding sustainable
development and CSR, both theoretically and practically, especially with regard to
policy, management, accountability and reporting. Transfer of knowledge and skills
related to strategic disclosure of the company's ongoing performance on economic,
environmental and social development (triple bottom line reporting) in accordance
with the GRI G4 Sustainability Reporting Guidelines. Graduates will have a basic
level of skills in corporate social responsibility (CSR) / sustainable management
and have the opportunity to become more professional managers in the CSR field
and develop additional capabilities in the following fields:
1. Prepare a good and accurate CSR report
2. Analyzing sustainable reports / CSR
3. Manage the CSR department in an effective and efficient manner
4. Develop a CSR vision and strategy and changes needed in the organization

2.6. Relationship Between Sustainability Reporting and CSRS Profession

One important aspect of sustainability reports lies in the process of
preparing a sustainability report (Kurniawan, 2018). Generally, sustainability
reports can be prepared by company management, but in many cases sustainability

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reports are prepared by someone who has passed a Certified Sustainability
Reporting Specialist (CSRS) certification. The CSRS profession is a profession
whose task is to compile a company's sustainability report. The CSRS profession
plays an important role in translating the actual condition of the company into a
company sustainability report. Someone who has passed the CSRS certification
have sufficient ability to compile a sustainability report and be able to account for
the information presented in the company's sustainability report. CSRS profession
must be able to understand the guidelines or guidelines in preparing a sustainability
report then translate the company's actual conditions into a sustainability report.
The role of the CSRS profession in the preparation of sustainability reports can be
interpreted as a form of application of enterprise theory in the business world .
Kurniawan (2017) stated that enterprise theory is a new paradigm in which
company management views the interests of parties outside the company. The form
of company management's attention to stakeholders outside the company is by
compiling a company sustainability report. In a sustainability report you will see
how the balance between economic performance, social performance, and
environmental performance of the company.

Picture 2. Strategic Sustainability Plan

Sustainability reports issued by company management will not only benefit

the company's internal interests, but also for sustainable society development.
When all company stakeholders benefit from economic performance, social
performance, and environmental performance of the company, then at that time

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company management is said to have carried out business concepts that are
responsible for running the company (Astini et al., 2017).
The CSRS profession is in charge of preparing data, information,
determining materiality, and establishing relationships with corporate stakeholders
to prepare a reliable sustainability report that can be used by corporate stakeholders
in making a decision, be it economic decisions or investment decisions, social
decisions and environmental decisions (Kurniawan, 2017). The CSRS profession
and sustainability report is an answer to the current business paradigm where
companies should be able to provide benefits to all corporate stakeholders
(enterprise theory). This paradigm abandons the past paradigm where in the past
the company's main goal was established for the prosperity of management and
shareholders of the company. The CSRS profession and sustainability report are the
first steps for businesses that can provide social benefits to all levels of society and
ultimately can achieve social welfare. The main objective of sustainability reporting
is sustainable economics.

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 CHAPTER III

CONCLUSION

The change in the corporate reporting paradigm has made all parties aware
that comprehensive information delivery is important in the current context of
sustainable reporting that results in a sustainability report that is important for
linking the interests of company management with corporate stakeholders. When a
continuous report is important, then at that time the CSRS profession becomes an
inseparable element in the information linking chain of company management to
corporate stakeholders. The CSRS profession plays an important role in translating
the actual condition of the company into a company sustainability report. Someone
who has passed the CSRS certification is said to have sufficient ability to compile
a sustainability report and be able to account for the information presented in the
company's sustainability report. The CSRS profession is in charge of preparing
data, information, determining materiality, and establishing relationships with
corporate stakeholders to prepare a reliable sustainability report that can be used by
corporate stakeholders in making a decision, be it economic decisions or investment
decisions, social decisions and environmental decisions. The CSRS profession and
sustainability report is an answer to the current business paradigm where companies
should be able to provide benefits to all corporate stakeholders.

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Elkington, J. 1997. Cannibals With Forks: The Triple Bottom Line Of 21st Century
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Kurniawan, P. S. (2017). Profesi Certified Sustainability Reporting Specialist ,
Pelaporan Keberlanjutan , Dan Teori Enterprise, 6(1), 10–19.
Kurniawan, P. S. (2018). Analisis Penyusunan Dan Pelaksanaan Program Audit
Laporan Keberlanjutan Perusahaan, 10(1), 33–48.
Kusumawardani, A., Setiawati, L., & Ginting, Y. L. (2017). Urgensi Akuntan Sosial
Dan Lingkungan : Perspektif Institusional.
Rofelawaty, B. (2014). Analisis Praktik Pelaporan Berkelanjutan ( Sustainability
Reporting ) Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia, 12.

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