Paving the Way for a Brighter Future with Bukalapak’s ESG Programs
In today’s fast-paced and ever-changing business landscape, companies recognize the need to go beyond financial profits and take responsibility for their impact on the world. Environmental, Social, and Governance (ESG) principles have also emerged as a guiding framework, allowing businesses to harmonize their operations with sustainability, well-being, and ethical governance.
As I come from a journalism background, I have seen many business models and their economic growth — but Bukalapak caught my attention. Bukalapak proudly incorporates ESG principles into the core business strategy, viewing them not as a trend but as a step towards realizing the mission of creating a positive impact for all. I am highly interested in Bukalapak’s business model where social initiatives are deeply rooted to empower the lowest sector of the economy, which is the micro businesses. Joining Bukalapak has motivated me to become involved, engage directly, and contribute to creating new solutions for society.
In Bukalapak, I become part of the team that focuses on external relations, in business and social sides. Participating in our social initiatives made me recognize that all businesses should prioritize ESG efforts in their operations. This role has shown me that developing an ESG initiative is not merely a moral imperative but also a strategic choice that can improve a company’s long-term performance, competitiveness, and substantial benefits to society and the environment.
According to McKinsey and other sources, there are plenty of reasons why businesses should give priority to ESG programs, including:
- Innovation and Competitiveness: ESG initiatives encourage us to innovate and develop new products, services, and business models that align with sustainability goals. This can lead to a competitive advantage in a rapidly evolving market where sustainability and responsible practices are becoming more important to consumers and also regulatory bodies.
- Stakeholder Trust: Engaging with stakeholders, including customers, communities, and regulators, through transparent and responsible ESG initiatives can build trust and stronger relationships. Trust is a critical foundation for maintaining positive business relationships and avoiding reputational damage.
- Employee Engagement and Talent Attraction: Strong ESG initiatives boost employee engagement, satisfaction, and retention, attracting purpose-driven talent.
- Reputation and Brand Image: ESG initiatives bolster reputation, attract conscious stakeholders, and foster market differentiation.
- Regulatory Compliance: ESG initiatives mitigate regulatory risks and enhance compliance
- Ethical and Social Responsibility: It ensures ethical and responsible business practices, aligning with values and benefiting society.
- Long-Term Financial Performance: ESG integration boosts long-term financial success through efficiency, savings, and stronger relationships.
- Access to Capital and Investment: Many investors, including institutional investors, are increasingly incorporating ESG criteria into their investment decisions. Companies with strong ESG performance may have better access to capital, as they are perceived as less risky and more attractive to socially responsible investors.
Bukalapak’s ESG strategy is focused on allowing the entities to achieve sustainable growth. By enabling the MSMEs to access technology, we are not only building a stronger economic foundation, but also contributing to the attainment of the United Nations Sustainable Development Goals (SDGs). Our company conducted those approaches by giving more attention to 4 SDG areas, which are SDG 17 (Partnerships for the Goals), SDG 4 (quality education), SDG 8 (Decent Work and Economic Growth), and SDG 11 (Sustainable Cities and Communities), which reflected our dedication in addressing the pressing societal challenges.
Building a Better Future One Initiative at a Time
Through our ESG-angled initiatives, we are working on driving remarkable transformations on environmental conservation, employee empowerment, and community development. We strive to make these initiatives as solutions to various challenges facing the environment, employees, and communities.
Within the environmental pillar, we are taking a step toward minimizing the effects of the climate crisis and contributing to the realization of FOLU Net Sink goal — when the land and forest sectors take in more carbon than they would emit — by establishing the “Akar Kebaikan with Bukalapak” program. More than 1000 tree seedlings were effectively planted upon the launch of this program in late 2022. This program kicked off with active participation from our employees and the representatives of our Mitra Bukalapak, who planted 200 mangrove tree seedlings at the Pantai Indah Kapuk Mangrove Ecotourism Area and additional 1000 tree seedlings at the Hutan Organik Megamendung in Bogor. As Bukalapak’s first environmental initiative, we are excited that Akar Kebaikan Program successfully attracted engagement from the employees and Mitra Bukalapak.This first environmental initiative has also opened doors for us to other strategic partnerships.
In a mission to widen the impact to the other areas, we touched upon another pain point. According to Bank Indonesia’s survey data, among the 65.6 million MSMEs in Indonesia, 65% are owned or run by women. However, female MSME players continue to encounter various obstacles, including a lack of business and capital knowledge. This issue prompted us to launch “Perempuan Jagoan Pencari Cuan (PUJAAN)” initiative. Through several business competitions and training sessions, the PUJAAN program seeks to strengthen small enterprises, particularly those run by female Pelapak and Mitra Bukalapak. The winners of this program are selected based on their innovative business plans to receive cash prizes and mentorship on creative, business, and financial management. As a result, 7 months after receiving the rewards, PUJAAN winners successfully saw business improvements in terms of earning, volume, and leverage.
Seeing how these programs have created changes needed to create a path towards a better future motivates us to do more. That is why we are continuously strengthening our efforts. Personally, I am truly grateful for having the opportunity to take part in growing Bukalapak’s business, while at the same time preparing a better world for us and the future generations.
