Double materiality and stakeholder engagement: JALA’s sustainability journey

Learning outcomes Objective 1: Students will discover the challenges Indonesian companies encounter when preparing sustainability reports. Students will gain a deeper understanding of these issues and actively participate in discussions to explore potential solutions through critical thinking.Objective 2: Students will assess how JALA’s integration of double materiality enhances its overall sustainability strategy and decision-making processes. This evaluation will encompass both the immediate and long-term benefits for the company and its stakeholders, providing a comprehensive understanding of how JALA’s sustainability efforts align with its strategic goals and industry standards.Objective 3: Students will critically analyse JALA’s stakeholder engagement strategies, assessing their effectiveness in fostering trust and collaboration beyond the Indonesian context. They will further evaluate their alignment with theoretical frameworks of stakeholder management to enhance understanding of their general impact on sustainability outcomes. Case overview/synopsis This case study immerses readers in the unfolding drama of JALA, an ambitious aquaculture start-up from Yogyakarta, Indonesia, that has been making waves in shrimp farming since its inception in 2018. With its bold mission to ignite a “blue revolution”, JALA uses cutting-edge big data techniques to drive unprecedented productivity and efficiency in the shrimp farming industry. However, the excitement takes a tense turn in November 2023 when Liris Maduningtyas (Liris), the Chief Executive Officer of JALA, must confront a critical challenge: preparing a detailed sustainability report to meet investor demands during a high-stakes fundraising effort in Yogyakarta. As Liris and Andi, the company’s Chief Operating Officer, navigated this complex task, they faced the intricate dilemma of defining double materiality – juggling both financial performance and environmental and social impact. The plot thickened as they engaged with a wide array of stakeholders, including local farmers, shrimp communities, investors and government institutions, each with their own set of expectations and concerns.This case study explores the story of JALA’s challenges with sustainability reporting and stakeholder engagement. It investigates the delicate balance between financial and non-financial factors while highlighting the real-world obstacles that companies encounter in aligning their practices with investor expectations and regulatory standards. Through JALA’s journey, the case study provides a comprehensive examination of sustainable business practices and the complexities involved in managing diverse stakeholder interests within a dynamic industry landscape. Complexity academic level This case study is aimed at undergraduate and graduate students in fields related to management accounting, sustainability reporting, double materiality, stakeholder engagement, corporate governance, environmental management, start-up entrepreneurship and business administration. Supplementary material Teaching notes are available for educators only. Subject code CSS1: Accounting and Finance.