Circular Economy and Sustainable Business are Key to the Earth Conservation Efforts

Published on 9 June 2022

Climate change has a very broad impact on people's lives, including various aspects of changes in nature and human life, such as water quality and quantity, habitats, forests, health, agricultural land and coastal ecosystems.

This condition also encourages many business actors to run a sustainable business. The company does not only pursue profit, but also runs a business that is environmentally friendly (planet) and has a commitment to community empowerment (people). More than that, the urgency of sustainable business has become a company need in the future.

Various approaches are used in its implementation including the Sustainable Development Goals (SDGs) and the Environment, Social, and Governance (ESG). Its implementation is expected to have a positive impact on the company's operational areas as well as being able to become a means of good relations with the surrounding community and the government. This is a corporation’s breakthrough to be able to run their business well while at the same time providing social inclusion in which the company and the surrounding community can walk and move forward together.

Responding to climate change and its relation to the company's sustainable business operations, environmentalist, Dr Alexander Sonny Keraf, one solution that can be done by business actors is the concept of a circular economy. The circular economy is a new industrial model that focuses on reducing, reusing, and recycling and leads to the reduction of primary resource consumption and waste production. “Currently, the business world realizes the importance of sustainable responsibility for the sustainability community and environment. Meanwhile, consumers globally are also starting to become aware of and worried about the earth and climate crisis which makes them increasingly demanding products and business models that are environmentally friendly,” said Sonny.

Currently, he considers that there has been growing awareness among industry players in the country to not only think about profit, but also the planet and people. “Not all aspects of sustainable business and circular economy have been carried out perfectly by local producers. However, there is indeed a commitment and effort to carry out processes that are greener in nature,” he explained.

One of them, he mentioned, is the initiative carried out by Danone Indonesia. According to Sonny, this company has the value of caring in terms of collecting post-consumption plastic packaging and then reprocessing it as raw material for their packaging, or for different products that can be used by the community. "The product packaging made of plastic can be re-produced for other needs, or sent to the manufacturer of the brand to be reused as raw material, thereby reducing the dredging of natural resources," he explained.

For your information, in IGSCA 2022, Danone Indonesia managed to enter the top 10 companies that carry the green company concept and was announced as the winner on May 12, 2022.

The IGSCA assessment criteria consist of aspects of a Sustainable Economy, Social Inclusion, Employee Welfare and Comfort, Environmental Management, and Ethics and Compliance Standards. The jury determined the 10 companies with the highest scores to receive the IGSCA 2022 award and the three companies that received special awards.

As explained by Vera Galuh Sugijanto, VP General Secretary of Danone Indonesia on a separate occasion, Danone has a high concern and commitment in carrying out a responsible sustainable business. “Not just carrying out social responsibility, but more than that. The company's business strategy is based on sustainability and always refers to the SDGs. It is in line with the sustainable development goals set by the government," said Vera.

Vera said that Danone Indonesia's sustainability program targets human health and the environment. Regarding health issues, under the umbrella of the Bersama Cegah Stunting (Together Prevent Stunting) program, Danone Indonesia has mobilized nutrition education and healthy hydration programs through Warung Anak Sehat (Healthy Children's Shop), Isi Piringku (Fill My Plate), Gerakan Ayo Minum Air (Let's Drink Water), Aksi Cegah Stunting (Stunting Prevention Action), WASH and the GESID program for youth education.

“Danone Indonesia has also pioneered various efforts to protect water resources in the form of conservation activities, including tree planting, construction of infiltration wells, making Rorak, biopore, water harvesting, as well as the construction of biodiversity parks and environmentally friendly agricultural programs with the target of achieving a positive water impact on the environment in 2030," said Vera.


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