Corporate Sustainability and Human Rights Protection in the Lapindo Mudflow: An Analysis of ESG Failures and UNGPs Framework
DOI:
https://doi.org/10.37253/conescintech.v6i1.12810Keywords:
Lapindo Mudflow, ESG, Human Rights, UNGPs, Corporate SustainabilityAbstract
The Lapindo Mudflow disaster, triggered by drilling activities at the Banjar Panji-1 well in Sidoarjo on 29 May 2006, remains one of Indonesia’s most significant environmental and human rights cases. This study analyzes the incident from the perspectives of Environmental, Social, and Governance (ESG), the United Nations Guiding Principles on Business and Human Rights (UNGPs), Sustainable Development Goals (SDGs), and corporate sustainability. Using normative legal research with statutory, conceptual, and case approaches, the study examines national and international legal instruments relevant to corporate accountability and human rights protection. The findings indicate substantial shortcomings in environmental risk mitigation, social responsibility, and corporate governance. The disaster caused environmental degradation, displacement of communities, loss of livelihoods, and long-term socioeconomic impacts. From the UNGPs perspective, deficiencies were identified in the pillars of Respect and Remedy, while the State’s Protect obligation was implemented but not optimally fulfilled. The study concludes that sustainable business practices require stronger ESG implementation, effective human-rights due diligence, transparent governance, and timely remedies for affected communities.
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