SUSTAINABILITY ACCOUNTING AND INTEGRATED REPORTING: STRATEGI KEPEMIMPINAN BERKELANJUTAN PERUSAHAAN DI MASA DEPAN

Abstract

Today, the environmental crisis has initiated companies to implement Sustainability Accounting as a business sustainability strategy. One indicator of this implementation is the availability of periodic Integrated Reports (Financial Reports and Sustainability Reports) of companies that can be accessed by the public. Indonesia has taken steps to require the publication of a Sustainability Report for Financial Service Institutions, Issuers and Public Companies through POJK NUMBER 51/2017. Although Sustainability Strategy is an essential concept, there are several weaknesses that require solutions. This paper aims to explain the essence of implementing Sustainability Strategy in the company. So that the company does not only implement it to the extent of fulfilling the demands of the government, but for the benefit of the company in the long term. The author uses a qualitative analysis approach with earnings per share and the growth of company stock prices in the Financial Services Institutions, Issuers and Public Companies sector. The author also describes the basic concepts and uses secondary data to support each argument given. First, this paper will prove a positive correlation between the implementation of the Sustainability Strategy and the company's profitability in the future. Furthermore, the author also analyzes the fundamental weakness of the Integrated Reporting systematics which makes it difficult to compare between companies. Therefore, the author offers a universal measurement standard that can be used by external and internal parties of the company in assessing how far the company is implementing its Sustainability Strategy. This standard measure will later become a means of proving the company's ability to maintain its business continuity in the long term and affect its current valuation. Sustainability Strategy is an important factor in the long-term sustainability of the company. However, it is undeniable that the Sustainability Strategy launched by the Indonesian government still has several weaknesses. This paper is expected to answer the challenges of the role of accountants in Indonesia in facing the revolution from Traditional Accounting to Sustainability Accounting, especially in optimizing the Integrated Reporting scheme by companies.