Abstract

The corporate realm has forsaken conventional business practices in favour of embracing an approach that incorporates a sustainability framework. The initiatives that emerged in the past as corporate social responsibility (CSR) are now becoming more defined due to the shared global threat and issue of global warming. Decarbonization is an imperative measure that must be implemented as a compulsory contribution to mitigate the risks of global warming and climate change, which now pose significant dangers to business continuity. Corporate social responsibility and decarbonization are closely linked ideas that enhance a company's long-term viability, aligning with public perception and competitive edge. By incorporating corporate social responsibility (CSR) and decarbonization initiatives, organizations can effectively improve their social and financial performance, leading to a more sustainable and profitable future. To tackle climate change and achieve the Net Zero Emissions (NZE) target, the Indonesian government has adopted a Green Taxonomy as part of its sustainable finance strategy. This paper explores the process of Indonesia's Green Taxonomy in the transition to decarbonization, highlighting the critical role of sustainable finance in confronting climate change. The qualitative study will depict the difference between Indonesia's Green Taxonomy 1.0 and Indonesian Sustainable Finance Taxonomy 2.0.