ESG Commitments Put to the Test as Corporate Challenges Grow More Complex

JAKARTA, KOMPAS.com - Corporate commitments to Environmental, Social, and Governance (ESG) are now facing increasingly complex challenges. Amid growing attention to sustainability, companies are not only required to develop ESG programmes but also ensure these principles are genuinely embedded in decision-making and daily operations.

Over the past few years, many firms have launched sustainability initiatives, published sustainability reports, and established dedicated ESG teams to meet demands from regulators, investors, and the public.

However, behind this progress, a phenomenon known as ESG fatigue — a decline in corporate enthusiasm for sustainability agendas, particularly at management level — is becoming increasingly discussed.

‘In the past, many companies focused on ESG reporting and image-building. Now the challenge is integrating ESG into how companies make decisions and run daily business,’ Angela said in a press statement on Friday, 29 May 2026.

According to RSM Indonesia’s 2025 ESG Survey, many firms now view ESG not just as a compliance obligation but as part of building trust, business resilience, and long-term competitiveness.

Nevertheless, ESG implementation is now considered more complex. Companies face new regulations, need for detailed data, and higher transparency demands.

The survey found 64% of respondents cited regulatory complexity as the biggest challenge in implementing ESG.

Amid economic pressures, digital transformation, and growth targets, ESG is increasingly seen as a burdensome agenda requiring significant investment.

Angela noted signs of ESG fatigue typically appear when ESG issues are rarely discussed in corporate decision-making.

Additionally, ESG targets are no longer part of performance evaluations, sustainability budgets are being cut, or ESG programmes operate without cross-departmental support.

Angela also observed that some companies remain overly focused on narratives rather than genuine implementation within their organisations.

‘ESG is often actively discussed in public spaces but not always accompanied by strengthened workflows, risk management, or governance within the organisation,’ she explained.

This situation indicates that current ESG challenges extend beyond strategy development to maintaining consistent implementation across all parts of the company.