Home Blog Build Credible Reporting with Decarbonization Services Business Advisory | ESG Advisory | Indonesia Build Credible Reporting with Decarbonization Services InCorp Editorial Team 7 September 2026 8 minutes reading time Table of Contents Key Takeaways Overview of Corporate Decarbonization Services What Does Decarbonization Mean for Businesses in Indonesia? Why Does Climate Reporting Start with Emissions Data? What Emissions Data Should Companies Prepare? What is Included in a Decarbonization Roadmap? How Do Decarbonization Services Support ESG and Climate Reporting? When Should a Company Use Decarbonization Services? How InCorp Indonesia Supports Decarbonization Readiness Frequently Asked Questions Climate reporting is becoming more important for businesses in Indonesia, but credible disclosure starts with reliable emissions data. Decarbonization services help companies build a clear greenhouse gas (GHG) inventory, identify major emission sources, and develop practical reduction plans, strengthening trust with stakeholders. With Indonesia strengthening its climate framework and PSPK 1 and PSPK 2 taking effect on January 1, 2027, companies that may be affected by evolving sustainability reporting requirements should start preparing their emissions data and reporting processes now to stay ahead. Key Takeaways Decarbonization services help companies measure emissions, identify reduction priorities, and build a practical roadmap for climate reporting. Indonesia’s climate framework is supported by Perpres 110/2025 and Permen LH/BPLH 7/2026, which strengthen GHG emissions management and reporting for relevant businesses. PSPK 1 and PSPK 2 take effect on January 1, 2027, increasing the importance of reliable climate and emissions data. Scope 1, Scope 2, and relevant Scope 3 data provide the foundation for tracking emissions and setting reduction targets. InCorp Indonesia (an Ascentium Company) supports businesses with carbon footprint assessment, emissions mapping, decarbonization planning, monitoring, and ESG reporting readiness. Overview of Corporate Decarbonization Services Decarbonization services are essential for companies to accurately measure emissions, identify key areas for reduction, and develop a credible climate strategy that supports transparent reporting. Area What It Covers Outcome Emissions mapping Identifies major Scope 1, 2, and 3 emission sources Clear view of emission hotspots GHG inventory Organizes and calculates emissions data Reliable emissions baseline Data validation Reviews activity data, emission factors, and supporting records More credible calculations Decarbonization roadmap Defines reduction actions, targets, and timelines Practical emissions reduction plan Monitoring and reporting Tracks progress and prepares reporting data Stronger ESG and climate reporting Together, these steps turn emissions data into a measurable and credible decarbonization plan. What Does Decarbonization Mean for Businesses in Indonesia? Decarbonization means measuring and reducing greenhouse gas emissions across a company’s operations and value chain through actions such as improving energy efficiency, adopting cleaner energy, and implementing process improvements. In Indonesia, this is increasingly tied to a broader climate framework. Perpres 110/2025 establishes the national framework for controlling GHG emissions, while Permen LH/BPLH 7/2026 requires relevant businesses in Nationally Determined Contribution (NDC) sectors to conduct GHG inventories and report emissions annually. Reliable emissions data therefore supports both compliance and a credible decarbonization roadmap. READ MORE:Geothermal in Indonesia: Unlocking Clean Energy & Export Potential Understanding ESG Scores: A Key Indicator for Sustainable Business Practices ESG Rating Explained: What It Is, How It Works, and Why It Matters Why Does Climate Reporting Start with Emissions Data? Climate reporting is easier to support when companies have a clear view of where emissions come from and how they are calculated. A GHG inventory can provide a baseline for tracking progress and identifying opportunities for reduction. This can help companies: Identify major emission sources Track emissions over time Set more informed reduction targets Support ESG and climate reporting with more reliable data, making them feel ready for future compliance. What Emissions Data Should Companies Prepare? Before planning reductions, companies should gather data on Scope 1, 2, and 3 emissions, including fuel use, electricity consumption, and supply chain activities. Area What Companies Should Prepare Scope 1 Fuel use, company vehicles, and other direct emissions Scope 2 Electricity and other purchased energy Scope 3 Relevant supplier, transport, travel, waste, and value-chain data Supporting data Energy bills, fuel records, invoices, and other operational records Decarbonization services can help identify relevant emission sources, organize data, and establish a baseline for reduction planning. What is Included in a Decarbonization Roadmap? A decarbonization roadmap turns emissions data into a clear plan to reduce them. It usually sets reduction priorities, targets, responsible teams, timelines, and methods for tracking progress. Indonesia’s Industrial Decarbonization Roadmap targets net-zero emissions for industry by 2050 and currently covers nine energy-intensive sectors: Cement Iron and steel Fertilizers Chemicals Pulp and paper Textiles Glass and ceramics Automotive Food and beverages Across manufacturing, around 46% of emissions come from direct energy use, 16% from purchased electricity, and 38% from industrial processes and product use. The roadmap therefore focuses on energy and material efficiency, cleaner fuels and materials, electrification, process improvements, and carbon capture for remaining emissions. How Do Decarbonization Services Support ESG and Climate Reporting? Decarbonization services help companies turn emissions data into information that can support climate and ESG reporting. Instead of treating carbon calculations as an isolated sustainability exercise, the process creates a repeatable system for collecting, calculating, explaining, and monitoring emissions. It can help businesses: Build a Scope 1, 2, and 3 emissions inventories Track progress against reduction targets Organize data for sustainability reporting Monitor emissions through reporting tools Improve readiness for verification or assurance This preparation is becoming more important as PSPK 1 and PSPK 2 take effect on January 1, 2027, with PSPK 2 covering climate-related disclosures. In August 2026, IAI approved exposure drafts proposing revisions to PSPK 1 and PSPK 2, including proposed updates on GHG emissions disclosures and industry guidance. Companies should therefore keep their reporting approach aligned with the latest developments. When Should a Company Use Decarbonization Services? Decarbonization is a continuous process, not a one-time carbon calculation. Companies may need expert support as their emissions data, operations, targets, or reporting needs change. Consider decarbonization services when you: Prepare your first corporate carbon footprint Have incomplete or inconsistent emissions data Combine data across multiple entities or facilities Receive emissions requests from customers or parent companies Set or update reduction targets Prepare ESG or climate reporting Make major operational, energy, or supply-chain changes How InCorp Indonesia Supports Decarbonization Readiness InCorp Indonesia (an Ascentium Company) provides decarbonization strategy services to help businesses measure emissions, set reduction priorities, and strengthen climate and ESG reporting. Carbon Footprint Assessment Assess Scope 1, Scope 2, and Scope 3 emissions using recognized frameworks such as the GHG Protocol and ISO 14064, with support from ISO 14067 for product-level emissions. Strategic Decarbonization Planning Develop practical reduction initiatives based on the company’s emissions profile, operational priorities, and climate targets. Implementation and Monitoring Track emissions performance, monitor progress, and support ongoing climate and ESG reporting. Technology-Enabled ESG Support Consolidate emissions data across entities, improve visibility through monitoring tools, and support coordination with internal teams and auditors. InCorp Indonesia (an Ascentium Company) can support the process from emissions mapping and baseline calculation to decarbonization planning and ongoing reporting. Talk to our experts to assess your emissions data and build a practical decarbonization strategy. Fill out the form below. Frequently Asked Questions What are decarbonization services? Decarbonization services help companies measure greenhouse gas emissions, identify major sources, establish a baseline, develop reduction initiatives, and monitor progress. They can also help prepare the emissions information needed for ESG, climate, group, customer, or regulatory reporting. Is GHG emissions reporting mandatory for every company in Indonesia in 2026? There is no single corporate GHG reporting obligation that applies identically to every company in Indonesia. Requirements depend on factors such as industry, regulatory status, company activities, and applicable sector rules. Financial services businesses, issuers, and public companies are among the entities affected by OJK’s sustainability-reporting framework, which OJK proposed updating in 2026 to align with Indonesia’s new sustainability disclosure standards. What is a GHG inventory? A GHG inventory is a structured record of greenhouse gas emissions generated by an organization within a defined reporting boundary and period. It establishes the information needed to understand the company’s carbon footprint and provides a baseline for future emissions reductions. What information is needed to calculate a corporate carbon footprint? Common information includes electricity consumption, fuel usage, company vehicle data, refrigerants, process information, waste, transportation, business travel, purchased goods and services, and other relevant value-chain data. The exact requirements depend on the company’s activities and the Scope 1, Scope 2, and Scope 3 categories included. What is the difference between Scope 1, Scope 2, and Scope 3 emissions? Scope 1 covers direct emissions from sources owned or controlled by the company. Scope 2 covers indirect emissions from purchased electricity, steam, heating, or cooling, while Scope 3 covers other indirect emissions across the value chain. Why does a company need a baseline emissions calculation? A baseline gives the company a consistent reference point for measuring future changes in emissions. Without a defined base year, it becomes harder to demonstrate whether emissions have genuinely increased or decreased, and how much progress has been made against targets. What should a decarbonization roadmap contain? A roadmap should connect the company’s emissions baseline with reduction targets, priority initiatives, implementation responsibilities, timelines, and performance indicators. Appropriate initiatives should reflect the company’s actual hotspot emissions rather than applying a one-size-fits-all solution. Can decarbonization services help companies prepare for PSPK 2? They can help establish important underlying climate data, particularly emissions inventories, baselines, methodologies, and monitoring processes. PSPK 2 addresses climate-related disclosures across governance, strategy, risk management, and metrics and targets, and takes effect on January 1, 2027. Can InCorp Indonesia calculate product-level emissions? Yes. In addition to corporate Scope 1, Scope 2, and Scope 3 assessments, InCorp Indonesia’s (an Ascentium Company) decarbonization services offering includes lifecycle-based evaluations aligned with ISO 14067 for product-level emissions. When should companies engage InCorp Indonesia for decarbonization support? Companies don’t need to wait until climate disclosure is due. Support can begin by establishing the first GHG inventory, improving existing emissions data, responding to group or customer reporting requests, setting reduction targets, preparing a decarbonization roadmap, or strengthening data before external reporting or verification. Read Full Bio Verified by Imelda Adhisaputra Chief Operations Officer at InCorp Indonesia Imelda Adhisaputra is a senior executive and recognized leader in Indonesia's corporate and regulatory landscape, bringing over 30 years of experience across multinational corporations, private equity-backed businesses, and highly regulated... 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