Jakarta. Climate change and environmental degradation are reshaping how corporations approach social responsibility, with Corporate Social Responsibility (CSR) and Environmental, Social and Governance (ESG) programs increasingly viewed not simply as social contributions but as tools to mitigate risks facing businesses and communities.

Mahawan Karuniasa, an environmental and climate change expert at the University of Indonesia, said the shift was becoming increasingly urgent as economic growth often comes with environmental deterioration.

Economic development in many regions is frequently accompanied by a growing ecological footprint, highlighting the disconnect between economic growth, environmental sustainability and community well-being, he said.

“The more developed a country becomes, the larger its ecological footprint grows,” Mahawan said at the Investor Daily Summit 2026 in Jakarta on Wednesday.

He said the trend was unfolding amid a triple planetary crisis involving climate change, pollution and biodiversity loss. "The situation requires companies to rethink how they measure the success of their social and environmental programs," he added.

Many CSR and ESG initiatives are still assessed based on outputs, such as the number of beneficiaries reached or the amount of resources spent, while their long-term effects on ecosystems and communities receive less attention.

“Output isn’t enough. We need to look at outcomes, and especially impact,” he said.

From Social Assistance to Economic Opportunity
Some companies are responding by integrating sustainability and community resilience into their business strategies, moving beyond conventional CSR toward programs that create longer-term economic opportunities.

Windy Riswantyo, Head of Corporate Communications at Astra International, said sustainability had become an important consideration when Astra evaluates new businesses and potential acquisitions. Through its Triple P strategy — Portfolio, People and Public Contribution — Astra also integrates sustainability into its community programs.

One example is the Desa Sejahtera Astra program, which has supported more than 1,500 villages since 2018. About 500 are now considered self-sufficient, with some reaching international markets, Windy said.

Organic palm sugar from Pacitan, East Java, has been exported to Malaysia and the Netherlands, while Arabica coffee from Bajawa, East Nusa Tenggara, has reached Thailand. Cassava producers in Bogor, West Java, meanwhile, export about 20 to 25 tons a month.

The focus, Windy said, is not simply on production but on helping villagers improve their skills, access financing and reach larger markets.

“People in villages often think very simply: they have a product, sell it to a middleman and that’s it. So we support the infrastructure, including financing, distribution and market access,” Windy said.

Astra also brings village entrepreneurs to domestic and overseas trade fairs to connect them with larger markets.

“What happens is that they gain access to much bigger markets. That is how we create villages that can go global and become exposed to larger markets,” she said.

Water Security as a Corporate Risk
The climate challenge is particularly visible in access to basic resources such as water, especially as prolonged dry conditions associated with El Nino put additional pressure on water supplies and heighten risks for communities and businesses.

Agung Laksamana, General Secretary Director of Danone Indonesia, said inadequate access to clean water remained a major challenge in Indonesia.

“Data shows that 70% of Indonesians still do not have sufficient access to clean water,” Agung said.

For companies whose operations depend heavily on natural resources, such vulnerabilities can ultimately become business risks, making water security and resource management increasingly relevant to corporate sustainability strategies.

Danone has also sought to address another environmental challenge — plastic waste — by incorporating circular-economy principles into its business model.

Agung said the company’s responsibility does not end when consumers drink its products and discard the packaging. Instead, that is where another stage of the product’s lifecycle begins.

“For us at Danone, the journey only begins when the product has been consumed,” Agung said.

Danone Indonesia has built a recycling ecosystem involving nearly 25,000 waste pickers, thousands of waste banks and dedicated recycling operations. Collected plastic bottles are processed into recycled PET, some of which is then used in Danone’s bottled-water products.

Agung said recycled material accounts for up to 25% of the material in some Aqua bottles, helping create a closed-loop supply chain in which discarded packaging returns to the production cycle.

By connecting waste collection and recycling with its supply chain, Danone is also creating economic opportunities for people working in the informal waste sector. The company’s circular-economy initiatives collect and manage about 51,000 tons of plastic waste annually across Indonesia, according to Agung.

Add as a preferred source on Google +