UNAIR NEWS – Children represent a critical foundation for the future of both Indonesia and the world, comprising over one-third of the nation’s population. Their well-being is essential for shaping the future economy. The Sustainable Development Goals (SDGs) Center Universitas Airlangga recently hosted an Innovative Finance Discussion titled “Integrating Children’s Rights into Investment Decisions and Environmental, Social, and Governance (ESG) Practices.”

This event took place on Thursday, September 26, 2024, in the Tarumanegara Room at ASEEC Tower, Dharmawangsa Campus – B UNAIR. Among the speakers was Putra Kristianto Gautama Putra, an Accounting lecturer at the Faculty of Economics and Business and Deputy CEO of the ESG Study Center, who addressed the relevance of ESG and children’s rights within the SDGs framework.

Understanding Environmental, Social, and Governance (ESG)

Putra opened his presentation by tracing the history of the sustainability concept, which has been in existence for decades, first appearing in the UNWCED report. Over time, it evolved into the 3P framework: Profit, People, and Planet, ultimately leading to the establishment of the 17 SDG pillars.

He emphasized that sustainability aims to improve life for future generations. In light of the planet’s increasingly precarious condition, the focus has shifted from corporate sustainability to a national level. “This approach seeks to ensure that the current generation does not leave unresolved issues for the next,” Putra stated.

As the ESG framework gains importance, companies are facing heightened scrutiny from stakeholders—including investors, consumers, and the general public—regarding their corporate responsibilities, particularly in environmental and social areas, as well as governance practices.

“When we talk about companies pursuing sustainable investments or long-term profits, we refer to those that aim to maximize profits responsibly by adopting the ESG framework,” he added.

Children’s Rights in the ESG context

Putra further explored the limited attention given to children’s rights within ESG discussions. He highlighted those corporate policies usually focus on prohibiting the employment of individuals under a certain age.

According to the Global Reporting Initiative (GRI), relevant points regarding children’s rights can be found in GRI 414 on Supplier Social Assessment, GRI 408 on Child Labor, and GRI 412 on Human Rights Assessment. The International Labour Organization’s Convention 138 stipulates that the minimum age for employing children is 15 years.

“There is no specific section dedicated to children’s rights within ESG. Instead, it falls under the broader human rights category. Both national and international standards primarily define children’s rights in terms of not engaging suppliers that utilize child labor,” he explained. However, a pressing issue this year revolves around the perspective of children’s rights as they pertain to children choosing to work.

Putra illustrated this point with an example from Indonesia, where children in remote areas—such as those involved in palm oil production and mining—often accompany their families to work sites.

“How do we ensure these children’s well-being? They wish to help their parents but are classified as child laborers. This cultural perspective—that children want to assist their parents—conflicts with the definition of child labor,” he concluded.

Author: Tsaqifa Farhana W

Editor: Yulia Rohmawati