Norlina Pasaribu

We recognize the urgency of global environmental issues, which not only affect the environment but also have significant implications for human life. These impacts include heat stress, irregular rainfall, water scarcity, increased natural disasters, and ecosystem disruptions, all of which are direct consequences of climate change.Climate change refers to a long-term shift in temperature and weather patterns, occurring over several decades or even longer. This transformation manifests in various ways, including rising temperatures and altered precipitation patterns, leading to increased dryness or wetness, among other climate-related phenomena (UN, 2024).The impact of climate change on both human well-being and organizational operations is profound. These effects include disruptions in production due to extreme weather events, damage to infrastructure from natural disasters, and vulnerabilities in supply chains that can lead to delays and increased costs. Additionally, employee health and safety are at risk, with potential issues such as heat stress, respiratory problems, and other health concerns.Recognizing these challenges, companies has been committed to addressing the impacts of climate change through proactive measures. Below are some of the actions being taken as part of this commitment.1. Calculating Carbon Footprint and Assessing Opportunities for ReductionCompanies have begun conducting comprehensive annual carbon footprint calculations, evaluating greenhouse gas emissions—including carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), and others—across their operations. This process includes both direct emissions (Scope 1) and indirect emissions (Scope 2 and Scope 3). Data for these calculations utilizing both primary and secondary sources such as Operation, Health, Safety, and Environment (HSE), Human Resources (HR), Procurement, and Finance sources. Various carbon calculation methodologies, such as the cradle-to-grave and cradle-to-gate approaches, track the carbon impact from material sourcing through distribution and eventual return to customers. These emissions are standardized and converted into metric tons of carbon dioxide equivalent (tCO2-e), providing a consistent measure of a company’s carbon footprint. This approach enables a holistic view of environmental impact, informing decisions to reduce carbon emissions.The results of these carbon footprint calculations are analyzed to monitor and track emissions contributions. This analysis is crucial for identifying trends, patterns, and significant changes, supporting efforts to identify opportunities for future improvement. Additionally, this analysis informs business decision-making, helping prioritize initiatives that will have the most significant impact on reducing the overall carbon footprint.2. Setting Carbon Reduction TargetsIn alignment with the global carbon reduction goals established during COP 21 in Paris, companies around the world are taking proactive steps to set their own carbon reduction targets. These targets are designed to contribute to the broader international effort to combat climate change, as outlined in the Paris Agreement adopted by 196 nations in 2015, represents a unified global commitment to addressing climate change by limiting the rise in global temperatures. Companies recognize the critical role they play in this global endeavor, as industrial activities and corporate operations are significant contributors to greenhouse gas emissions. By setting and striving to meet ambitious carbon reduction goals, businesses not only demonstrate environmental responsibility but also position themselves as leaders in the transition to a low-carbon economy.The Paris Agreement, as a legally binding international treaty, has set forth clear objectives for mitigating climate change. One of its primary goals is to limit the increase in global average temperature to well below 2°C above pre-industrial levels, with a more aspirational target of capping the temperature rise at 1.5°C. Achieving these targets requires substantial reductions in greenhouse gas emissions across all sectors of the global economy. In response, companies are developing and implementing strategies that align with these objectives, including enhancing energy efficiency, transitioning to renewable energy sources, and innovating in areas such as carbon capture and storage. By doing so, they contribute to the global effort to prevent the most severe impacts of climate change, ensuring a more sustainable future for both the planet and their business operations.3. Implementing a Comprehensive Emission Reduction StrategyTo achieve these carbon reduction targets, companies are implementing various strategies, including:Energy Efficiency Improvements: Investing in energy-efficient equipment, such as LED lighting and other energy-saving technologies, to reduce overall energy consumption. This not only enhances energy efficiency but also contributes to long-term cost savings and environmental sustainability.Adopting Renewable Energy: Prioritizing the adoption of renewable energy sources, such as solar, wind, and hydro energy, in facilities and offices to reduce carbon footprints. By supporting global initiatives that prioritize renewable energy, companies are actively contributing to the transition to cleaner, more sustainable power.Carbon Offset and Carbon Capture, Utilization, and Storage (CCUS): Engaging in carbon offset programs and adopting CCUS technologies to mitigate emissions that cannot be eliminated through other means.Transportation Optimization: Encouraging eco-friendly commuting options, such as carpooling, public transportation, and the use of electric vehicles, to reduce transportation-related emissions.Exploring Additional Initiatives: Continuously seeking and adopting new initiatives to enhance resilience and adapt operations to the challenges of climate change, ensuring business continuity and contributing to global climate action.4. Raising Awareness Among StakeholdersAchieving sustainability goals requires a unified understanding of the urgency of climate change among all stakeholders. This includes employees, customers, investors, and other partners. By fostering awareness of the environmental challenges, companies can align efforts to mitigate climate risks and promote sustainable practices.Engaging stakeholders through open communication, education, and collaboration helps them understand their critical role in the collective response to climate change. This commitment drives meaningful action, fosters innovation, and builds a more resilient and sustainable business for the future.Bibliography UN. (2024). What Is Climate Change.UNFCC. (2024). The Paris Agreement.

The global demand for energy continues to grow at an accelerating pace. In 2023, the world’s energy needs reached unprecedented levels, with global energy consumption increasing by 2.2%, a significant rise compared to the average annual growth rate of 1.5% recorded between 2010 and 2019 . This trend highlights the likelihood of continued growth in energy demand in the coming years.Coal, a primary source of energy, is finite and its environmental consequences, particularly its contribution to greenhouse gas emissions, are increasingly detrimental. Coal-based energy production is a major contributor to climate change, as it emits large quantities of carbon dioxide and other harmful gases into the atmosphere. Given the limitations of coal and the pressing need to mitigate its environmental impact, renewable energy emerges as a promising solution. By harnessing renewable resources such as solar, wind, and hydropower, the world can reduce reliance on coal and other fossil fuels, thereby decreasing greenhouse gas emissions. Transitioning to renewable energy sources is critical to achieving a more sustainable and environmentally responsible global energy system.Several countries have embraced the transition to renewable energy as a key strategy for reducing carbon dioxide emissions. Among the global leaders in renewable electricity generation are China, the United States, and Brazil, which rank as the top three nations in this effort. According to 2022 data, China generated 2,673,550 GWh, the U.S. produced 981,697 GWh, and Brazil contributed 594,028 GWh of electricity from renewable sources, including bioenergy, geothermal energy, hydropower, marine energy, pumped storage, solar energy, and wind power . This global shift is not limited to developed countries, as many developing nations are also accelerating their adoption of renewable energy.Indonesia, in particular, is highly vulnerable to the effects of climate change, facing risks such as flooding, landslides, and rising sea levels that threaten its population and economy. The country’s vulnerability, influenced by a combination of political, geographic, and social factors, is reflected in its ranking of 97th out of 181 countries in the 2020 ND-GAIN Country Index . In response to these challenges, Indonesia has committed to achieving net-zero emissions by 2060 or sooner. Central to this goal is the nation's transition to renewable energy, which is essential for reducing its dependence on fossil fuels and mitigating the severe risks posed by climate change.At the COP-26, Indonesia disclosed an ambitious strategy aimed at accelerating its transition to renewable energy sources such as solar, wind, and geothermal power. The country has committed to generating more than 51% of its new electricity capacity from renewables by 2030, reflecting its dedication to reducing reliance on fossil fuels and cutting greenhouse gas emissions. This commitment was reaffirmed during the International Sustainability Forum in Indonesia, held in September 2024, where the Ministry of Energy and Mineral Resources repeated that “Indonesia remains on track to stop the construction of new coal-fired power plants by 2030”.Indonesia's annual energy demand in 2022 reached 1,113,656,743 barrels of oil equivalent (BOE), excluding traditional biomass. The data reveals that the vast majority of Indonesia’s energy consumption—87%—was derived from non-renewable sources such as coal, crude oil, and natural gas. In contrast, renewable energy sources, including hydropower, bioenergy, and biofuels, contributed only 13% to the country's total energy consumption. This heavy reliance on non-renewable energy underscores the critical need for Indonesia to accelerate its transition toward cleaner, more sustainable energy solutions in the coming years.Indonesia Energy Source in 2022 Indonesia Energy Consumption in 2022 At the International Sustainability Forum held in Jakarta, the President of Indonesia highlighted the nation’s huge potential for renewable energy, stating, "Indonesia has a huge green energy potential reaching more than 3,600 gigawatts." This statement underscores Indonesia’s significant natural resources and the opportunity to become a major producer of renewable energy. However, despite this vast potential, the country's progress in renewable energy production remains limited, especially when compared to its heavy reliance on non-renewable sources.In 2022, non-renewable energy sources like coal, crude oil, and natural gas accounted for 87% of Indonesia's total energy consumption, while renewable sources such as hydropower, bioenergy, and biofuels contributed only 13%. This disparity highlights the gap between Indonesia’s renewable energy capacity and its current energy mix, indicating that much more needs to be done to shift toward sustainable energy.One of the major hurdles to scaling up renewable energy in Indonesia is the lack of investment. The country continues to face challenges in attracting sufficient capital to develop and deploy renewable energy infrastructure. Recognizing this, the Indonesian government is actively inviting global investors to participate in the development of its green energy resources. The President made a direct appeal to potential investors, urging them to collaborate with Indonesia in harnessing its vast renewable energy potential, which could be pivotal in the country’s efforts to meet both its growing energy demand and its climate commitments.Indonesia's energy future centers on its ability to grab the current momentum and prioritize renewable energy investments. If Indonesia can fully harness its renewable energy potential—estimated at over 3,600 gigawatts—by attracting investment, scaling up infrastructure, and fostering international partnerships, the country stands to reduce its heavy reliance on coal, crude oil, and natural gas and allow Indonesia to meet its net-zero emissions target by 2060 or earlier, positioning the country as a global leader in climate action. On the other hand, if Indonesia fails to capitalize on its renewable energy potential and continues to rely heavily on coal and other non-renewable sources, several negative outcomes could unfold. The best-case scenario offers the potential for economic growth, energy security, and climate leadership, while the worst-case scenario poses risks of energy shortages, environmental degradation, and missed climate targets.

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Norlina Pasaribu

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The urgency of climate change: Impacts on human life and corporate responsibility

Indonesia's Renewable Energy Journey: Current Landscape, Capacity, and Vision for a Sustainable Future