The new Pernyataan Standar Pengungkapan Keberlanjutan (PSPK) framework provides a comprehensive set of guidelines for organizations in Indonesia, outlining the standards for sustainability-related disclosures. The recently released PSPK 1 and PSPK 2 provide critical frameworks for organizations looking to align their operations with sustainability principles, especially in Human Resources (HR) and organizational management. This blog will dive into the core of PSPK 1 and PSPK 2, explore their implications, and show how Sinergis can support organizations in complying with these standards.
What is PSPK 1?
PSPK 1 is the General Requirement for Sustainability-related Financial Information Disclosure. It establishes the framework for reporting on sustainability-related risks and opportunities, focusing on providing transparency regarding the financial impact these factors have on the organization. PSPK 1 demands that organizations disclose their approach to managing these risks, including how sustainability issues affect financial statements, governance, strategy, and financial performance.
For HR, PSPK 1 is crucial as it forces organizations to disclose how sustainability factors influence the company’s workforce planning, training, and development programs. The standard highlights the need for HR departments to align their strategies with the company’s sustainability goals, ensuring the workforce is prepared to handle the challenges and opportunities these changes bring.
What is PSPK 2?
PSPK 2 focuses specifically on climate-related disclosures. It provides requirements for organizations to report the physical and transitional risks related to climate change, including:
- Climate-related risks: physical risks (e.g., floods, droughts) and transition risks (e.g., regulatory changes, shifts to a low-carbon economy).
- Opportunities related to climate: ways organizations can benefit from climate action, like sustainable products or services.
- Governance and strategy: how companies manage and oversee climate-related risks.
- Metrics and targets: organizations must set and disclose specific climate-related goals, such as carbon emissions reductions, energy use, and sustainability targets.
Why Are These Standards Important for HR and Organizations?
Both PSPK 1 and PSPK 2 are designed to ensure organizations act responsibly when it comes to sustainability and climate change. These standards have broad implications for HR because they require the alignment of workforce strategies with the company’s sustainability initiatives.
PSPK 1 encourages organizations to report on how they manage sustainability risks across departments, including HR. This means HR teams must ensure that employee training, development, and welfare align with sustainability goals and the company’s long-term viability.
PSPK 2 puts a specific focus on the climate. As climate risks and opportunities affect industries worldwide, organizations must understand and disclose their climate-related risks, and HR departments need to integrate climate action into their workforce development strategies.
How Sinergis Can Help Organizations Implement PSPK 1 & 2
At Sinergis, we help organizations comply with PSPK 1 and PSPK 2 by offering comprehensive consulting services that focus on the HR department’s role in meeting these standards.
- PSPK 1 Compliance: Integrating Sustainability into HR Practices
- Sinergis can assist in aligning your HR functions with PSPK 1 by helping organizations incorporate sustainability risks and opportunities into HR strategies. This includes ensuring that recruitment, training, and talent management practices reflect the organization’s sustainability goals.
- Sinergis can assist in aligning your HR functions with PSPK 1 by helping organizations incorporate sustainability risks and opportunities into HR strategies. This includes ensuring that recruitment, training, and talent management practices reflect the organization’s sustainability goals.
- PSPK 2 Compliance: Managing Climate Risks and Opportunities
- PSPK 2 emphasizes the importance of climate-related disclosures, requiring organizations to evaluate and disclose their climate-related risks and opportunities. Sinergis can guide HR in training staff, adjusting recruitment strategies, and recruiting talent focused on sustainability goals, ensuring that organizations are prepared for the low-carbon transition.
- PSPK 2 emphasizes the importance of climate-related disclosures, requiring organizations to evaluate and disclose their climate-related risks and opportunities. Sinergis can guide HR in training staff, adjusting recruitment strategies, and recruiting talent focused on sustainability goals, ensuring that organizations are prepared for the low-carbon transition.
- Developing a Green Workforce
- With the focus on climate in PSPK 2, Sinergis helps HR integrate climate action into employee performance metrics, creating sustainability training programs and developing a climate-aware workforce. This ensures that your organization not only complies with PSPK but also capitalizes on the opportunities arising from a green economy.
- With the focus on climate in PSPK 2, Sinergis helps HR integrate climate action into employee performance metrics, creating sustainability training programs and developing a climate-aware workforce. This ensures that your organization not only complies with PSPK but also capitalizes on the opportunities arising from a green economy.
- Reporting and Metrics Alignment
- Both PSPK 1 and PSPK 2 require the development of specific metrics and reporting. Sinergis ensures that your HR practices have measurable targets related to sustainability, climate action, and workforce engagement. We help organizations report on these metrics accurately, in line with the standards, ensuring transparency and compliance.
- Both PSPK 1 and PSPK 2 require the development of specific metrics and reporting. Sinergis ensures that your HR practices have measurable targets related to sustainability, climate action, and workforce engagement. We help organizations report on these metrics accurately, in line with the standards, ensuring transparency and compliance.
As organizations strive to meet global sustainability expectations, HR plays a key role in implementing and adhering to PSPK 1 and PSPK 2. By aligning HR strategies with sustainability goals, organizations can ensure they remain compliant, resilient, and competitive in an increasingly eco-conscious world.
With Sinergis as your partner, you can confidently implement PSPK 1 and PSPK 2, fostering a sustainable workforce and meeting the challenges of the low-carbon economy. We help your HR teams embed sustainability into every level of talent management, enabling your organization to lead in sustainability efforts while complying with the highest standards in Indonesia.
