International Journal of Multidisciplinary Research and Publications ISSN (Online): 2581-6187 82 Muhammad Abadan Syakura, Musviyanti, Muhammad Harits Zidni Khatib Ramadhani, and Iskandar, “Pragmatic Study of ESG Concepts Practice (Case Study of PT Kaltim Industrial Estate),” International Journal of Multidisciplinary Research and Publications (IJMRAP), Volume 6, Issue 6, pp. 82-88, 2023. Pragmatic Study of ESG Concepts Practice (Case Study of PT Kaltim Industrial Estate) Muhammad Abadan Syakura 1 , Musviyanti 2 , Muhammad Harits Zidni Khatib Ramadhani 3 , Iskandar 4 1,2,3,4 Accounting Department, Mulawarman University, Samarinda, Indonesia Email address: musviyanti@feb.unmul.ac.id Abstract — This research aims to reveal the in-depth meaning of the implementation of the ESG concept in business models and the impact of ESG performance on PT KIE's sustainability report. This research is qualitative research with an interpretive approach. The informants in this research are accountants and management at PT KIE. The triangulation method used in this research is source triangulation. The research findings are that the implementation of the ESG concept at PT KIE is not an instruction from its holding company but the initiation of management and directors. There is an internalization of environmental, social and governance based on the conceptual framework of institutional theory and legitimacy theory. The Impact of ESG performance disclosure for the company is the importance of reputation in the public or society and the belief that it will have a positive effect the company’s profits and mitigation risk for long-term business continuity supported by various stakeholders. The implication of this research is that the implementation of the ESG concept in corporate sustainability reporting will encourage the company towards a sustainable business model that provides support for the development of management accounting and sustainability accounting. Keywords— Environmental, Social, Governance, Reputation, Risk Mitigation, Sustainability Reporting. I. INTRODUCTION Environmental, social and governance issues are the main issues that every company pays attention to. The increasing number of negative impacts caused by company activities on the surrounding environment increases the awareness of stakeholders, so they demand companies to protect the environment and carry out social responsibility to achieve sustainable business. Sustainability is key issue as business is no longer seen only from the level of short-term financial returns, but a business is also required to explain the transparency of every operational activity carried out by the company. However, sustainability is also an important opportunity to build a resilient organization for the long term. The UN World Commission on Environment and Development defines sustainability as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainability is often considered to have three pillars or components: economic, environmental and social or, more commonly, profit, planet and people ( Triple Bottom Line / TBL). The main concept of TBL is how to create sustainability that extends to the economic, social and environmental aspects of the company. Therefore, there needs to be integration and linearity of various variables and components in the implementation of TBL. In order to increase its value, companies must not only pay attention to financial performance but must also pay attention to non-financial performance such as social responsibility and environmental. This is proven to have a positive impact on the company's survival in the future. Every company must improve its business model and sustainability reporting system to be a going concern . Therefore, sustainability reporting practices must result in management thinking and actions that pursue sustainability (Adiasih & Lianawati, 2019). In addition to carrying out social and environmental responsibilities, the implementing of good corporate is also an important factor as a form of risk mitigation for a company. Environmental, Social, Governance (ESG) is a concept that priorities sustainable development/investment/business activities with three main factors, namely environmental, social and corporate governance aspects. ESG performance measurement aims to assess company performance that is not found in accounting data. The integrating ESG into company valuation models can improve non-financial indicators such as consumer satisfaction, market acceptance, lower debt costs and the social value brought to stakeholders. Thus, ESG is an indicator that is able to cover broader non-financial data on environmental, social and corporate governance performance and can be used to evaluate company’s management capabilities and to support risk management (Tarmuji et al., 2016). The evolution of the ESG concept (Bansal, 2022; Haanes, 2022) starts from the shareholder perspective and then the stakeholder perspective, and will evolve to the system value perspective. ESG, on the other hand, is seen as core to the way an organization's business operates. It measures activities to understand more fully the impact of an organizational actions. A focus that integrates sustainability into an organization's strategic goals, mission, and daily decisions. This evolution includes an expanded role of organizational governance for its entire value chain and long-term responsibilities around issues such as climate change and carbon accounting. In response to these environmental, social and corporate governance problems, the government issued Law 40 of 2007 concerning Limited Liability Companies and Government regulation PP Number 47 of 2012 concerning social and environmental responsibility in limited liability companies . Sustainable businesses undertake a commitment to reducing the