Main Article Content
Abstract
Sustainability practices and disclosures for business organizations with large capacities can have a positive impact on the company's image and increase company profits. In contrast to SMEs with limited business capacity such as Batik SMEs in Central Java, Indonesia, they have less awareness of sustainable practices and disclosures. SMEs as business actors also have an impact on their business activities on Environmental, Social and Governance (ESG). This research aims to analyze how ESG challenges and opportunities are practices and disclosures by Batik Bayat SMEs and Batik Lasem SMEs to describe the journey of SMEs towards sustainable development. The analysis was carried out using the Simplified ESG Disclosure Guide (SEDG) for SMEs. This research uses a qualitative approach with in- depth investigation methods. The findings of this research are that there are many opportunities and challenges for Batik Lasem SMEs and Batik Bayat SMEs in sustainability practices and disclosure. The results indicate that ESG practises are dearth in Batik SMEs in Central Java, Indonesia, especially in the context of environmental and social disclosures