Indonesia Stock Exchange (IDX) is continuing to support green investment development in the domestic capital market, with the adoption of environmental, social and governance (ESG).
“IDX is committed to always developing sustainable investment and increasing ESG practice in Indonesia’s capital market,” IDX Development Director Hasan Fawzi remarked in a statement on Thursday.
According to Fawzi, a support from the market is IDX’s incorporation in United Nations Sustainable Stock Exchange (SSE) Initiative since April 2019. Also, IDX has become a Task Force supporter on Climate-related Financial Disclosures (TCFD) on 15th June, 2021.
“There are other alternative products for our investors, such as the Green Bond, the Green Sharia-Based Bond and ESG-based Mutual Funds,” he pointed out, adding there are two indexes in IDX that are ESG-themed, which are IDX ESG Leaders and SRI-KEHATI index or the Sustainable and Responsible Investment-Biodiversity.
“Each index has 30 and 25 company stocks, respectively, and are committed to practicing ESG,” he explained.
Fawzi stressed his team also supported the policy of the Financial Services Authority (OJK), through OJK regulation No. 51 for 2017 and OJK’s Circular Letter No. 16 for 2021 on Technical Guidelines on Sustainable Report Formulation.
Regarding the regulation, OJK has step-by-step required financial services institutions to produce a report on sustainable financial action plan and sustainability report.
On 29th November, 2021, there were already 153 companies listed in the market that released sustainability reports in 2020.
“Moreover, IDX also supports OJK, which has prepared stage two of a roadmap for sustainable financial application for 2021-2025,” he explained.
The roadmap includes several factors, such as policies, products, infrastructures, human resources and awareness, he added, stating, “The initiative plan that will be conducted will hopefully enhance the adoption of ESG and sustainable finance in the capital market.”
Source: Antara News