Visualizing CSR & ESG:

A Practical Guide for

Sustainability
Practitioners
Written By: Maria Rosaline Nindita Radyati, PhD

[email protected] www.sustainability.co.id
June 2024 1st Edition
Purpose of this book
I utilise infographics to translate complex
concepts into visual representations,
making them understandable even for
individuals without specialised knowledge
in the field.

It is intended to inspire practitioners and

enthusiasts in the fields of Sustainability,
CSR, ESG, and particularly for Social
Entrepreneurs to develop their businesses
to be more impactful and sustainable.

Enjoy Reading

Maria Rosaline Nindita Radyati, PhD

Relationship between Sustainability, SDGs,
Sustainable Development, and ISO 26000
Created By:
Maria R Nindita Radyati

Sustainability is the end objective, i.e.: sustainability of business, economy,

natural environment and society.
SDGs are the objectives where holistic CSR must contribute to
Holistic CSR is the VEHICLE to contribute to SDGs and materialize
Sustainability
Holistic CSR is CSR that is conducted by all divisions in an organisation,
using ISO 26000 as a guidance
Sustainable Development is the PROCESS to MAKE money in responsible
and sustainable ways, hence achieving SDGs

SDGs

bl e
u s t ai n a m e nt
S p
el o
Dev

CSR
 SDGs & Business
Sustainability are SDGs
the end objectives
Corporates are the
vehicles: where its
activities will create an
This Girl represents
Towards impact on the environment
investors, Banks, Rating Business
and society (Impact
Agencies, Bondholders: Sustainability
Materiality: Inside-Out)
who will assess how the
company manages Financial
Materiality, arising from E,S&G
risk and opportunities to the
company's operations, using ESG Corporate
criteria (Outside-In)

ESG
Investors, Banks, Corporate
Bondholders, Rating
Agencies

Corporate
Created By:
Maria R Nindita Radyati
 Double Materiality, CSR, ESG
By: Maria R Nindita Radyati

CSR

pact Materiality Sustainability Report:

Im
Explains how companies
are responsible for the
nside→Out
(I ) impacts of their business
operations

Main Target:
Company’s Consumers, Employees, Investors,
Operation Public

Double
Materiality

ESG Disclosure: ESG issues

Describes how the
company is prepared to
face ESG risks &
opportunities
Fin (Outside→In)
ty
anc ali
ial Materi
Main Target:
Investors, Banks, Bondholders

ESG
 ESG (IFC Handbook/Panduan
Aspects CSR (ISO 26000)
KADIN)

Outside-in: The effect of

Inside-out: the impact of the
environment and society issues on
Focus organization's operations to society
the organization (risk and
and environment
opportunities)

Programs to be responsible for the

impact of the organization on the Programs to mitigate risks and
Activites society and environment and take advantage of (utilize) ESG
contribute to non-financial opportunities
performance

Who has Customers, employees, communities, Investors, financial institutions,

interests government, society customers

Accounting metrics based on

Number and type of activities
Measurement global standards (Non-
SROI, CSV, Impact creation, etc.
financial performance)

Good relationship with stakeholders Financial performance & good

Value to the
that will lead to seamless operation reputation, competitive advantage
organization
and good reputation (USVP)

Basis for
Sustainability report following global ESG disclosure following various
scoring/rating/
standards (ex: GRI, UNGC, etc.) standards/requirements
external audit

Created By: Maria R Nindita Radyati

 ESG &
Community
Development

[email protected] www.sustainability.co.id
 Economic
Development

Social
Development

Environmental
Stewardship
The links
between
Governance and
community Participation
development
and ESG Climate change
mitigation and
Adaptation

Just Transition

Nature-based
Climate Solutions
(NbS)

By: Maria R Nindita R, PhD

1. ECONOMIC DEVELOPMENT

Creating local employment

01 opportunities

Supporting Local Businesses by including

02 them in company’s supply chain

Fostering entrepreneurship to respond

03 demand from a certain market

Create access to market for local

04 products

Enhance the quality of local products to

05 be accepted by market of high income
consumers

By: Maria R Nindita R, PhD

 2. Social Development

01. Access to
education

02. Access to healthcare

2. Social Access to social

Development 03.
services

Promote social
04. cohesion and peace

05. Promote diversity

and tolerance

By: Maria R Nindita R, PhD

 ENVIRONMENTAL
3. STEWARDSHIP

Promote environmental
conservation

Sustainable resource
management

Preserve cultural heritage

Biodiversity programs

FOLU Net Sink: through

Social Forestry

By: Maria R Nindita R, PhD

4. GOVERNANCE AND PARTICIPATION

01 Promote good governance for Community

Organisations

02 Fostering inclusive decision-making process

03 Enhance community participation in designing

programs

04 Promote transparency for Community

Organisations

05 Enhancing accountability of Community

Organisations

06 Promote Conflict Resolution Mechanism

07 Promote diversity in Board of Management of

Community Organisation

By: Maria R Nindita R, PhD

 5. Climate Change
Mitigation & Adaptation

Climate Change Climate Change

Migitation Adaptation
Actions to avoid and/or Actions to adjust to the current &
reduce greenhouse gas future consequences of climate
emissions change

Biopore

Bee farming Water catchment

By: Maria R Nindita R, PhD

 6. Just Transition

Inclusive: include
Listen to Promote Equality
marginalised
Community Education, reskilling
communities

Vocational trainings Access to education:

Youth oriented for Green Jobs Scholarship

Integrated Hydropower for Biomass

Farming Electricity

By: Maria R Nindita R, PhD

 7. Nature Based Solutions
Nature-based Solutions are actions to protect, sustainably
manage, and restore natural and modified ecosystems that
address societal challenges effectively and adaptively,
simultaneously benefiting people and nature (IUCN)

Preservation of
Build and maintain Mangroves planting
River Forests
Park and maintainance

Disaster Risk
Reduction Food Security
Eco-Tourism

By: Maria R Nindita R, PhD

 References
https://enterslice.com/learning/the-community-engagement-and-
development-in-esg/

https://seed.uno/topics/adaptation

https://www.foodandlandusecoalition.org/

https://www.iucn.org/our-work/nature-based-solutions

https://www.ilo.org/global/about-the-ilo/multimedia/maps-and-
charts/enhanced/WCMS_869956/lang--en/index.htm

https://www.menlhk.go.id/program/folu-net-sink/
 Clockwise Social
Business Model

[email protected] www.sustainability.co.id
 Social
Business
Objectives
Activity,
Source of Product/Service,
Revenue USVP (Unique
Brand Name Sustainable Value
Proposition)

9
Cost
Components CLOCKWISE Target
Beneficiaries/
SOCIAL BUSINESS Consumer

MODEL
By Maria R Nindita Radyati, PhD
@sustainable.csr
Social Business Resources
Partners

Consumer Distribution
Relations Channel
 1. Social
Business Describe your social
Objectives business objectives,
such as:
By: Maria R Nindita R, PhD

What Issues you are going to solve

through your activities

Your Vision and Mission

Environmental Impact that you

plan to create

Social Impact that you plan to

contribute

Economic/ Other Impact that you

can create
 2. Activity, Product/Service, USVP
(Unique Sustainable Value Proposition)
By: Maria R Nindita R, PhD

USVP:
Identify what makes your organisation unique in terms of ESG

What What
What Products
Activities Services
you are you are
you are going to
going to offering produce
do
 3. Target Beneficiaries/
Consumers

By: Maria R Nindita R, PhD

Identify your target
market/ user

Age group?

Profession?

Any/which
disadvantaged Group?

Economic level?

Locations?
4. Resources Define the
resources that you
need
By: Maria R Nindita R, PhD

1
Raw Material?

Financial 4
Capital?

2 Social Capital?

5
Intellectual
Capital?
Technology?
3 (incl. production
process and
waste mgt?) 6
Suppliers?

Plan on how and

where you are
going to get them
 5. Distribution Channel
By: Maria R Nindita R, PhD

Explain how you are

going to deliver your
products/ services to
your customers/users
6. Consumer
Relations Elucidate how you
maintain relations with
customers/ users
By: Maria R Nindita R, PhD
7. Social Business
Partner(s)
By: Maria R Nindita R, PhD Identify

Who will be your

social business
partner(s)?

What do they
contribute?

What Shared
Value to create
to each other?

What are their

expectations?
Strategies to
approach prospective
partners?
8. Cost Component
By: Maria R Nindita R, PhD

Fix Costs?

Variable Costs?

Direct Costs?

Indirect Costs?

Other Costs?
9. REVENUE
SOURCES
Identify
By: Maria R Nindita R, PhD

01
PRODUCT/ SERVICES
SALES

02 CORPORATE
PHILANTHROPY

03
PUBLIC DONATIONS
SOURCE OF
REVENUE
04
GRANTS

05 OTHER ALTERNATIVES?
 Optimizing Organizational
Governance Mechanisms

[email protected] www.sustainability.co.id
 Organisation
Governance 1
Mechanism

By: Maria R Nindita R, PhD Board

Compostition

4 2

Board
Communication TRANSPARENCY Board Roles and
& Engagement
& Responsibilities
ACCOUNTABILITY

Decision
making
process

3
 Board Compostition
By: Maria R Nindita R, PhD

1. What are the specific duties and responsibilities

of all Board members in the organization?

2. What is the defined target of each

Board member?

3. What challenges do these

responsibilities present?

4. What are the solutions to these

challenges?

5. In what ways do you ensure that Board

members perform their functions as expected?

6. What criteria do you use to evaluate

Board members' performance?

@sustainable.csr
 BOARD ROLES AND
RESPONSIBILITIES
By: Maria R Nindita R, PhD

1 How does your organization select members of its Board of

Directors?

2 Do the Board's selection procedures have written rules?

Provide an explanation of the criteria used to select each

3 member of the Board based on their expertise and
experience. Is there a written rule regarding this?
Can board members' expertise and network help your
4 organisation/group develop? If so, how? Is there a reason
why not?
Does your group have an Advisory Board? If yes, do you have
5 written criteria, roles for the members?

6 Does your organization have a Supervisory Board?

DECISION MAKING PROCESS
By: Maria R Nindita R, PhD

Does your group/organization have rules for

regular management meetings? If yes, what
is it like? (how many days/weeks/months)

Is the meeting agenda sent out a few days in

advance?

Are there any meeting minutes produced

after each meeting?

Are the meeting minutes distributed to all

management?

Are there written guidelines for financial

management?

Are there financial authority delegation

limits?
DECISION MAKING PROCESS
By: Maria R Nindita R, PhD

Is there a consistent, documented program for

training Management members to continuously
enhance their knowledge and skills?

Is there a knowledge-sharing mechanism

among administrators for effective knowledge
management?

Are there initiatives to nurture new leaders

within the organization?

Is there a transparent compensation system for

board members, or are the guidelines related to
voluntary management activities?

Follow @reallygreatsite for more tips

DECISION MAKING PROCESS
By: Maria R Nindita R, PhD

Are there any Conflict Resolution Rules to

handle management members who are in
conflict with stakeholders?

Are there any rules about how decisions are

made?

If there is a conflict of opinion, how should a

decision be made?

Are the results of important decisions

stated in the Management Decree?

Follow @reallygreatsite for more tips

 DECISION MAKING
PROCESS
By: Maria R Nindita R, PhD

Code of Grievances
Ethics Mechanism
Does the
Does your Organization have
organization/group a “Grievances
have code of ethics ? Mechanism” for
employees and
stakeholders?
BOARD COMMUNICATION &
ENGAGEMENT
By: Maria R Nindita R, PhD

Is there a profile of your organization

on the website?

Is there any communication media for

the organization's activities to
external parties?

Are there rules about regular

engagement and relationships
building with external stakeholders?

Is there a regular/annual report on

the activities of the Organization?

Is there a profile of the

management members accessible
to external parties?
 TRANSPARENCY &
ACCOUNTABILITY
By: Maria R Nindita R, PhD

PROVIDING RELEVANT
Transparency INFORMATION TO RELEVANT
PEOPLE

Accountability EVERYTHING CAN BE HELD

ACCOUNTABLE

Does your organization have:

Vision?
Mission?
Organizational Values?
UVP: Unique Value Propositions that
differentiates your organization from others
Profit-sharing system?
Reward system for Management Members?
 TRANSPARENCY &
ACCOUNTABILITY
By: Maria R Nindita R, PhD

Financial Report
Does your organization have a routine activity and
financial reporting mechanism?

Audit
Does your organization carry out regular audit for
financial report?

Assurance
How does your organization ensure that the four
aspects of Governance run transparently and
accountably?
 Enhancing ESG
Communication: Utilizing
the MOMMY Framework

[email protected] www.sustainability.co.id
ESG COMMUNICATION TOOLS
By: Maria R Nindita R, PhD

Mapping
01 To whom do you want to communicate?
Which standards do you need to use?

Outcome
02 What outcome do you expect from the
communication?

Media
03 What Media will you choose?

Messages
04 What are the messages that you need to
disclose?

Why?
05 What are the justifications for all of your
choices?
 MAPPING
Copyright : Maria R Nindita R, PhD

To whom do you want to communicate?

Which standards do you need to use?
 OUTCOME
Copyright : Maria R Nindita R, PhD

What outcome do you expect from

the communication?
 MEDIA
Copyright : Maria R Nindita R, PhD

What Media will you choose?

 MESSAGES
Copyright : Maria R Nindita R, PhD

What are the messages that you need to

disclose?

Source: https://dart.deloitte.com/USDART/home/publications/deloitte/heads-up/2023/global-esg-disclosure-standard-coverage-issb-finalizes-ifrs-s1-s2
 WHY?
Copyright : Maria R Nindita R, PhD

What are the justifications for all

of your choices?

Budget?

Timing?

Your team members?

Any Consultant?

Other?
 References
https://dart.deloitte.com/USDART/home/publications/deloitte/heads-
up/2023/global-esg-disclosure-standard-coverage-issb-finalizes-ifrs-s1-
s2

Du, S., Bhattacharya, C. B., & Sen, S. (2010). Maximizing business

returns to corporate social responsibility (CSR): The role of CSR
communication. International journal of management reviews, 12(1),
8-19.

https://milfordasset.com/insights/how-do-esg-ratings-stack-up

Sciarelli, M., Cosimato, S., Landi, G., & Iandolo, F. (2021). Socially
responsible investment strategies for the transition towards
sustainable development: The importance of integrating and
communicating ESG. The TQM Journal, 33(7), 39-56.

https://moneyinvestexpert.com/msci-esg-rating-explained

https://www.sustainalytics.com/esg-ratings