Proposed Implementation of Environmental, Social, and Governance (ESG) at PT Permodalan Nasional Madani

Ahmad Suhaemi; Sri Wahyuni

doi:10.63922/ijebir.v5i05.5871

Ahmad Suhaemi Master of Management Program, Perbanas Institute, Jakarta, Indonesia
Sri Wahyuni Master of Management Program, Perbanas Institute, Jakarta, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i05.5871

Keywords: Environmental, Social, and Governance (ESG); Sustainable Finance; Sustainability Strategy; ESG Roadmap; Gap Analysis; PT Permodalan Nasional Madani (PNM).

Abstract

This study aims to propose an Environmental, Social, and Governance (ESG) implementation framework for PT Permodalan Nasional Madani (PNM) by evaluating the company's current ESG practices and identifying strategic improvements aligned with national regulations and international standards. A qualitative research approach was employed, using purposive sampling to select key informants. Data were collected through in-depth interviews, document analysis, and observations. The analysis focused on comparing existing company policies, financing procedures, and sustainability initiatives with the requirements of Financial Services Authority Regulation (POJK) No. 51/POJK.03/2017 on Sustainable Finance, POJK No. 22 of 2023 on Consumer Protection, ISO 26000:2010, the Global Reporting Initiative (GRI) Standards, and relevant theoretical frameworks, including Stakeholder Theory and the Triple Bottom Line. The findings indicate that PNM has integrated ESG principles into several financing programs, particularly Mekaar, ULaMM, and PKU, which emphasize financial inclusion and community empowerment. However, environmental and governance indicators have not yet been systematically incorporated into financing requirements, product documentation, and risk management processes. The study also reveals that digital transformation has improved transparency, accountability, operational efficiency, and financial inclusion, although challenges remain in ESG data availability, environmental performance measurement, sustainability reporting, and internal organizational readiness. Based on the gap analysis, this study proposes a five-year ESG implementation roadmap (2025–2029) consisting of five strategic phases: Strengthening Sustainability Performance, Empowering Growth through Sustainable Finance, Accelerating Performance through Sustainable Innovation, Creating Long-Term Value, and Leading with ESG for Impactful Business Transformation. The proposed roadmap is expected to strengthen PNM's sustainability governance, enhance regulatory compliance, improve stakeholder value creation, and support the company's long-term sustainable business transformation

References

Achim, M. V., Văidean, V. L., Sabau, A. I., & Safta, I. L. (2023). The impact of the quality of corporate governance on sustainable development: an analysis based on development level. Economic Research-Ekonomska Istrazivanja , 36(1), 930–959. https://doi.org/10.1080/1331677X.2022.2080745
Almagtome, A., Khaghaany, M., & Önce, S. (2020). Corporate governance quality, stakeholders’ pressure, and sustainable development: An integrated approach. International Journal of Mathematical, Engineering and Management Sciences, 5(6), 1077–1090. https://doi.org/10.33889/IJMEMS.2020.5.6.082
Arikunto, S. (2020). Prosedur Penelitian Suatu Pendekatan Praktik. Rineka Cipta.
Elkington, J. (1986). Enter the triple bottom line. The Triple Bottom Line: Does It All Add Up, 1(1986), 1–16. https://doi.org/10.4324/9781849773348
Freeman, R. (1984). Strategic Management: A Stakeholder Approach. Pitman.
Fuadah, L. L., Mukhtarudin, M., Andriana, I., & Arisman, A. (2023). Environmental, Social and Governance (ESG). Integrated Journal of Business and Economics, 7(2), 459. https://doi.org/10.33019/ijbe.v7i2.706
Hasanuddin, F. (2026). Strategy to Innovation: The Role of Leadership in Shaping Organizational Behaviour Across Sectors. In Management and Organizational Dimension Journal (Vol. 1, Number 1).
Porter, M. E., & Kramer, M. R. (2011). The Big idea Creating Shared Value how to reinvent capitalism-and unleash a wave of innovation and growth.
Sugiyono. (2019). Metode Penelitian Kuantitatif, Kualitatif R&D. Alfabeta.
Tedja, W. (2022). Improving Knowledge Management for Better Competitive Advantage Through Strategy Execution: A Theoretical Model Proposal. International Journal of Management, Entrepreneurship, Social Science and Humanities, 5, 47–62. https://doi.org/10.31098/ijmesh.v5i1.925