RISK LEVEL ASSESSMENT OF OCCUPATIONAL SAFETY AND HEALTH MANAGEMENT ASPECTS OF UMKM ACCORDING TO ESG

• Main Author: Kusuma Dewi, Yulianty
• Format: Final Project
• Language: Indonesia
• Subjects: Teknik saniter dan perkotaan; teknik perlindungan lingkungan
• Online Access: https://digilib.itb.ac.id/gdl/view/84783
• Institution: Institut Teknologi Bandung

ESG risk rating is one of the decision makers for investors to invest in a company/organisation. ESG risk rating is achieved through verified rating agencies that focus on ESG rating. In Indonesia, the most widely used rating agency is Morningstar Sustainalytics. However, the rating is mostly used by large companies, while small companies such as MSMEs are rarely used. In fact, ratings for MSMEs have a huge impact in the country's economy. Therefore, this study aims to look at the level of risk based on environmental, social, and governance aspects, especially the OHS category using the ESG risk rating Morningstar Sustainalytics assessment of MSMEs. In addition, this study provides recommendations for improving the ESG risk rating that is suitable for MSMEs. The assessment was conducted on three MSME units with two small categories and one medium category. Data collection was carried out by interview, observation, and questionnaire with a range of 1 - 4 using the Morningstar Sustainalytics ESG risk rating assessment indicators. The data was processed quantitatively by calculating the average of all risk levels based on environmental, social and governance aspects. It was found that the risk level of the OHS category in MSME A was 0.85; MSME B was 0.80; and MSME C was 0.85. Meanwhile, the total ESG risk rating for MSME A is 0.82; MSME B is 0.90; and MSME C is 0.90.