Jakarta. Energy think-tank Institute for Essential Services Reform (IESR) recently called for a better adoption of environmental, social, and governance (ESG) principles in the mining industry.

Several large companies have begun to adopt the ESG concept. However, others are doing so only to meet the requirements, according to IESR's executive director Fabby Tumiwa.

Fabby said Thursday that the ESG adopters were typically the large-scale enterprises and those listed on the Indonesia Stock Exchange (IDX). All publicly listed companies are required to report their ESG data periodically. Unfortunately, many mining companies still lack clear ESG guidelines. Some have not yet published ESG reports, as do mining giants Freeport Indonesia and Vale Indonesia.

The IESR has also conducted a study on ESG implementation strategies in the mining sector. The study encourages companies to respect human rights, manage waste properly, reduce environmental impacts, and provide fair treatment for employees. 

Fabby also called on the government to strengthen regulations to ensure an effective implementation of ESG. He feared that a weak ESG commitment could increase the mining operations' environmental impacts, while also worsening the conditions of the local communities and undermining the industry's sustainability.

"The government needs to issue some principles. They should also require mining companies to implement standards," Fabby said on Thursday.