Sustainability Accounting

International Accounting
Andalas University

Safira Annisa & Rofifah Rizda

1710532066 & 1710533010

Reaction Paper of Social Performance

The social topic of sustainability concerns the impact of the organization on the social
system in which the organization operates which consists of 19 specific topics. PGN has
successfully fulfilled 9 disclosures (Employment; Occupational health and safety; Training
and education; Diversity and equality; Non Discrimination; Security Practices; Local
Communities; Customer Health and Safety; Marketing and Purchase) where according to
previous research in 2016 and 2017 this unfolding is still below 50%. According to our
group, at PGN's report also the need to disregard the socioeconomic compliance, since the
business is running by taking something from nature. Necessary thing improved by PGN is
increased reporting on specific topics on sustainability report in the coming year. There are
still many disclosures contains important information so that stakeholders understand the
extent the company has a positive impact and the company's steps to minimize the impact the
negative.

In addition to the topics that our group choose regarding GRI 416 about customer
health and safety. Based on our group discussion, actually in PGN's report is only disclosed
GRI 416-1 without 416-2 that discuss about Incidents of non-compliance concerning the
health and safety impacts of products and services. Meanwhile, the disclosure of 416-1 is
already in accordance with GRI since the PGN's report has disclosed about how they identify
the existence and range of systematic efforts to address health and safety across the life cycle
of a product or service. For suggestions only, it will be better if PGN is also disclosed in its
management approach regarding to this topic about whether the health and safety impacts of
products and services are assessed for improvement in each of life cycle stages.

Meanwhile, In the Sawit SumberMas Sarana company that Rofifah Rizda chose, this
GRI is very important, because this company is very much related to nature such as forests,
therefore customer health and safety must be guaranteed. But at this company, GRI 416 is a
topic of materiality, but the sustainability report at this company has no disclosure on this
topic. However, this company will discuss and explain about preserving the environment.
Environmental Harmony. Because, environmental management is one of the main focuses.
The minimum target is compliance with Indonesian government regulations related to the
environment. While the main target of this company is recognition from global stakeholders
that can only be obtained if it meets all the requirements of various environmental standards,
namely Proper, ISO 14001, ISPO, RSPO and ISCC. In accordance with the principles
stipulated in the Roundtable on Sustainable Palm Oil (RSPO), This company always strive to
produce sustainable palm oil products through the management of wastewater pollution from
palm oil processing plants. The management of pollution due to oil palm is regulated in the
RSPO principles and criteria. Regarding waste management, it is stated that waste must be
reduced, recycled, reused, and disposed in responsible ways.