Filantropi Indonesia has pioneered the publication of sustainability reports for the philanthropy and non-profit sector by launching the Integrated Sustainability Reporting Guideline and Platform. This guideline is expected to encourage and facilitate philanthropic organizations in reporting on their commitment, performance, and support for four aspects of sustainability: economic, environmental, social, and governance. This Reporting Guideline and Platform also help and facilitate philanthropic organizations to integrate their annual report, sustainability report, and their roles and contributions for SDGs implementation in 1 (one) report.
The Sustainability Reporting Guideline and Platform was launched during the online discussion “Integrating Sustainability Reporting, Organizational Performance and SDGs” which was held on Thursday afternoon (21/1/2021). Erna Witoelar, Co-Chair of FI Steering Committee, opened the event that was attended by many philanthropy actors in Indonesia. Hamid Abidin and Andi Pangeran as the writer and editor started by presenting and explaining the tools, then three guest speakers, Lany Harijanti (Country Program Manager GRI), Vivi Yulaswati (Head of National Secretariat SDGs Bappenas) and M. Zuhair (Director of the Hadji Kalla Foundation) gave their comments and responses as part of the discussion.
Erna also explained that the preparation of this guidebook was motivated by the active role of FI in promoting sustainability issues to its members, partners, and networks. One of them is by encouraging and facilitating members, partners, and networks to align their programs to the goals, targets and indicators of the Sustainable Development Goals or SDGs. FI promotes SDGs as a tool or platform to philanthropy/non-profit organizations so that their programs can be more targeted, measurable, and contribute to national and global development.
Apart from their programs, philanthropic organizations can also show their commitment and support through organizational practices and operations on four aspects of sustainability: economic, environmental, social, and organizational governance. They can align through sustainability reporting as a form of non-financial reporting that encourages organizations to practice transparency and accountability as their commitment and support for sustainability.
“This has become a common practice in various sectors as a self-regulatory mechanism related to the performance and governance of organizations in the economic, environmental and social sector based on the daily activities of the organization. This reporting can also be a way for philanthropic organizations to demonstrate their relationship and commitment to the Sustainable Development Goals (SDGs)”, she added.
According to Erna, the preparation of the reporting guideline and platform was adapted from the sustainability reporting standard developed by Global Reporting Initiative (GRI) which is widely used. The GRI standard was adapted because it can provide the type of reporting that aligns the performance of the organization with its role and contribution in SDGs implementation. Because the philanthropy and non-profit sector is different from the private sector, FI made several changes and adjustments with the assistance of the GRI team. In addition, this reporting also adopts the sustainability reporting mechanism developed by the Financial Services Authority (OJK) through POJK 51/2017 regarding the Implementation of Sustainable Finance Program.
To make it easier for philanthropy organizations to prepare their sustainability report, FI integrates it with performance report (annual report) that is aligned with the goals, targets, and indicators of SDGs. For this integrated sustainability reporting standard to be applied easily, Filantropi Indonesia compiled and published a Guideline for the Compilation of Integrated Sustainability Reporting for philanthropic and non-profit organizations as well as its Writing Guideline. The publication of this book aims to help stakeholders understand the procedures for preparing sustainable reporting for philanthropic and non-profit organizations within the framework of implementing the Sustainable Development Goals in Indonesia.
FI also provides a Digital Sustainability Reporting Platform (www.pelaporan.filantropi.or.id) to help philanthropic and non-profit organizations store data and make it easier to compile and complete the required information based on a reporting structure and framework. In addition, FI is trying to spearhead the publication of the 2019 and 2020 Indonesian Philanthropy Association’s Integrated Sustainability Report. It is hoped that this report can become a model or reference for philanthropic and non-profit organizations in preparing their own respective integrated Sustainability Report.
“This initiative to encourage the publication of sustainability reporting for the philanthropic sector is relatively new and the first in Indonesia. We hope to get recognition and support from the government, philanthropic and non-profit organizations, and other stakeholders. With this support, together we can encourage and facilitate more organizations to publish performance reports as well as sustainability reports and SDGs. The report can be a manifestation of their commitment and attention to sustainability issues and problems, as well as their support and contribution to the Sustainable Development Goals”, said Erna Witoelar.