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All Journal Journal of Sustainability, Society, and Eco-Welfare Journal of Critical Ecology
Kusumadewi, Dzikrina Almas
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Agriculture, Biological Sciences & Forestry Decision Sciences, Operations Research & Management Earth & Planetary Sciences Economics, Econometrics & Finance Environmental Science Social Sciences

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Analysis of factors affecting the Environmental Quality Index (EQI) and its implications for sustainable development Kusumadewi, Dzikrina Almas; Kristanto, Bimo Yudo
Journal of Sustainability, Society, and Eco-Welfare Vol. 2 No. 2: January (2025)
Publisher : Institute for Advanced Science, Social, and Sustainable Future

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61511/jssew.v2i2.2025.1452

Abstract

Background: The Environmental Quality Index (EQI) reflects environmental performance and sustainability, with DKI Jakarta scoring 54.57—below its target. This study analyzes the influence of the Human Development Index (HDI), population growth, and the Information, Communication, and Technology Development Index (IDI) on DKI Jakarta’s EQI. Methods: A quantitative approach using time-series data (2008–2023) and multiple linear regression analysis was applied to evaluate the relationship between HDI, population growth, and IDI with environmental quality. Findings: HDI positively impacts environmental quality, contributing 5.776%. In contrast, a 1% increase in IDI and population growth correlates with a 2.183% and 173.456% decline in EQI, respectively, highlighting the environmental challenges of urbanization and technological expansion. Conclusion: Improving human resources, adopting green technologies, and fostering collaboration among stakeholders are critical to enhancing environmental quality. Novelty/Originality of this article: This study provides new insights into the interplay of HDI, IDI, and population growth in influencing environmental quality in a major urban area.
Assessing transition risks and financial implications of emission reduction in FMCG companies under Indonesia's ENDC framework Kusumadewi, Dzikrina Almas
Journal of Critical Ecology Vol. 2 No. 1: (February) 2025
Publisher : Institute for Advanced Science, Social, and Sustainable Future

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61511/jcreco.v2i1.1660

Abstract

Background: Indonesia has committed to limiting global temperature rise to below 2°C through ENDC, impacting emission-intensive sectors like FMCG. PT X faces transition risks from carbon surcharges and emission reductions to meet ENDC targets. This study analyzes these risks, showing the company must reduce emissions to avoid additional costs and comply with ENDC. Methods: This paper uses qualitative and quantitative methods to assess transition risks for FMCG companies, focusing on carbon emission reduction policies. The quantitative analysis involves calculating climate financial risks through scenario analysis, while the qualitative approach analyzes regulations and sustainability reports. The study uses a bottom-up approach to assess emissions in Scope 1 and 2 and applies sensitivity analysis to evaluate the financial impact of emission reduction policies. Findings: The scenario and sensitivity analysis shows that if PT X conducts operational activities in accordance with Business as Usual (BAU) for a 1.6% reduction in emissions, the company will experience an emission deficit (emissions above the ENDC target), which raises additional carbon costs of USD 21,199.91 tons CO2eq per year by the company. Meanwhile, in the scenario analysis and sensitivity analysis, the minimum level the company must reduce its emissions by 1.9% to get an emission surplus (emissions below the ENDC target). Conclusion: To reduce the impact of transition risk, companies can invest in the development of environmentally friendly technologies, and switch to renewable energy. The sale of carbon credits from surplus emissions can also be used by companies to cover carbon costs and mitigation actions. Novelty/Originality of This Study: This study lies in its application of climate financial risk analysis to assess the transition risks faced by Indonesia’s FMCG industry, providing a quantitative evaluation of emission reduction thresholds and their financial implications under the Enhanced Nationally Determined Contribution (ENDC) framework.
Co-Authors Kristanto, Bimo Yudo