Beyond Compliance: Building SDG Strategies with Climate Risk Integration – Case Study of Public Companies in Indonesia

Author : Median Wilestari, Molina

Abstract :The main objective of this research is to analyse the level of integration of climate risk (SDG 13) into the financial strategies of companies in Indonesia, identify key barriers, and formulate practical recommendations to ensure that sustainability is not only a compliance issue but a part of a profitable business strategy. This research utilises hybrid methods (quantitative and qualitative) by administering structured questionnaires and content analysis to understand the state of integration of SDG 13 and financial policies, particularly the critical role of management accountants as a bridge between climate data and shareholder value. The sample of this research is 15 leading companies in Indonesia that represent industrial categories directly involved with energy and environmental issues. The result reveals a paradox: although 90% of Indonesian companies report on SDG 13, only 20% integrate it into their financial strategies. However, that 20% proves that integration is possible and profitable. Companies are advised to use particular measurement instruments, such as Green Weighted Assets (GWA) and Activity-Based Carbon Costing (ABCC), or conduct benchmarking. There are at least 2 top companies as best practices for integrating SDG strategies and finance in Indonesia, based on the depth of implementation, measurable impact, and relevance to various sectors.

Keywords :Climate Risk, Compliance, Integration, Public Companies, SDG Strategies.

Conference Name :International Conference on Banking, Accounting and Finance (ICBAF-25)

Conference Place Christchurch, New Zealand

Conference Date 25th Aug 2025