Towards Private Sector Engagement on Climate Change Adaptation through

Environmental Corporate Social Responsibility Financial Allocation in Kota

Semarang
Fransiska Sudiyo, SE and Bryan Varsay Renjaan, ST
Postgraduate Program on Environment and Urban Studies
UNIKA Soegijapranata
Semarang
I. Introduction
Climate change has become an undeniable trending issue in how the global society
perceive the recent condition of planet earth. This fact is shown by the existence of
climate change praxis field that has been spread sporadically in many countries in the
world. This field has been initiated by many governments, non government
organizations and environmental agencies in the world to be the foundation for many
programs that have been operated by those organizations and agencies.
This praxis field of climate change also has determined the definitions of the climate
change to elaborate the sphere of their climate change programs. The oldest
organizations on modern day climate change, The Intergovernmental Panel on
Climate Change (IPCC) that coined by UN and WMO defines climate change as the a
change in the state of the climate that can be identified (e.g. using statistical tests) by
changes in the mean and/or the variability of its properties, and that persists for an
extended period, typically decades or longer. Meanwhile United Nations Framework
Convention on Climate Change (UNFCCC) defines climate change as a change of
climate which is attributed directly or indirectly to human activity that alters the
composition of the global atmosphere and which is in addition to natural climate
variability observed over comparable time periods. The different between the
definitions of climate change elaborated by IPCC is the UNFCCC attributed the

climate change into human activity; meanwhile IPCC has more focus on the natural
phenomena that are occurred and signified by climate change.
There are two main climate change praxis orientations that have been identified by
UNFCCC in the praxis field of climate change; the climate change adaptation (CCA)
and the climate change mitigation (CCM). IPCC have already defines mitigation as an
anthropogenic intervention to reduce the sources or enhance the sinks of greenhouse
gases (IPCC, 2001) and adaptation as adjustment in natural or human systems in
response to actual or expected climatic stimuli or their effects, which moderates harm
or exploits beneficial opportunities (IPCC, 2001). The mitigation activities are
projected to be done by the specific organizations that will facilitate the climate
change impacts to be more adaptable for the worlds citizens. And the adaptation will
take participations from all humans in the world who have been impacted by climate
change. This research will be more oriented to the UNFCCC definitions for what have
been determined as its focus; the engagement of the specified Private Sector
engagement through CCA based CSR programs in the specified area of Kota
Semarang as the hometown of the researchers that has been experienced many
unsolvable climatic problems such as seawater intrusions and unpredictable tides that
already creates economic devaluation on traditional fishery sectors in its coastal area
and regular floods in its urban area. Semarang also has many manufacture companies
and vehicle distributors that should cope with CCA perspective and adaptation
activities to create better living conditions for all of Semarang citizens that could be
damaged by their operational based solid and liquid waste and also gaseous
consequences.
Related to the lack of popularity of CCA on being the main perspective on the private
and public sector based environmental issue, Indonesia, as a part of the world, has

established Dewan Nasional Perubahan Iklim (DNPI) with cooperation with Deutsche
Gesselschaft fur Internationale Zusammenarbeit (GIZ). The main objective of this
organization is to create engagement among all of the actors of development in
Indonesia. This organization has mapped the stages of CSR that can be done by some
large-scale direct natural resourced companies in Indonesia into six stages :

Awareness of social and environmental business impacts

Fire fighting of impacts charity

Planned and strategic efforts Risk Mitigation

Creating Shared Value

Business Transformation

(GIZ DNPI report, adapted and modified from Nugroho, 2013 and Jalal, 2013)
This report also have exposed the CSR activities of Nestle, Pupuk Kaltim, and
Pertamina which already on the CSV stage. This research will map the readiness and
possibilities of private sector engagement to adopt CCA as the orientation of CSR
programs.
II. Previous Documents on Private Sector Engagement on Climate Change
Adaptation
There are many researches and reports documents on the field of Private Engagement
on Climate Change Adaptation (CCA) that have been held by many world-scale
organizations.
Organizations
Type of Documents
OECD (The Organization Group Meeting Reports

Findings
Map of Private Sector

for Economic Cooperation

CCA Engagement in the

and Development)
PwC UK for Department

world scale.
Stimulations and actions

Project reports

for International

on

private

sector

Development (DFID)

engagement to CCA in

Asian

Tiger

Capital Project Reports

UK.
Linking CCA based CSR

Partners for International

with

Finance Corporation

advantages
systemic

United

Nations

For Project Reports

commercial
through
programs

financial risk management.

The map of existing

Environmental Protections

Climate

(UNEP)

adaptation-related

GIZ-DNPI

Case Study Report

on

Change

institutions in Africa.
Recommendations

on

private and public sectors

collaborative actions on
CCA based CSR.
Table 1 Related Documents on Private Sector Engagement to CCA
The substance of these documents will be the orientation and insight of this research
thus this research could gain the most suitable framework for establishing private
sector engagement on CCA based CSR.
III. Objectives and Methodology
This qualitative research will elaborate recommendations for all of private companies
that have financial capacities on Corporate Social Responsibility to engage with CCA
as a scope of CSR financial allocation that covered economic, social, and cultural
aspects of allocation.
Questionnaire-based in depth interview will be spread among the companies who
have CSR programs and the nature direct related logistic resourced companies i.e.
mass product food and beverage manufacturers and power plant companies who have
capacities to allocate financial efforts on CSR.
This research will use Pearson Chi Square statistic formula to calculate the association
between economic, social, and cultural motives and advantages from CSR and the
possibility for establishing CCA based CSR programs.

Dependent Variables
Independent Variables
Economic, Social, and Cultural Motives Possibility for establishing CCA based
of Specified Private Sector
Economic,
Social,
and

CSR programs.
Cultural

Advantages of Specified Private Sector

Table 2 Dependent and Independent Variables