ESG Achievements
- MSCI ESG rating of A and Top 3 Index Leader (25 November 2021)
- Gold Rank, Asia Sustainability Report Rating 2022 by National Center for Sustainability Reporting (NCSR)
- Katadata Green Initiative Awards 2022 by Katadata
- Highly Commanded, The Sustainable Business Awards (SBA) Indonesia 2020/ 2021
- Medium ESG Risk Rating from Sustainalytics (4 March 2021)
- The Best SOE, The 12th IICD Corporate Governance Award (31 May 2021)
- Constituent of SRI-KEHATI Index
- Constituent of IDX ESG LEADERS Index
Our ESG Journey
As one of the first movers on sustainable banking in Indonesia, PT Bank Negara Indonesia (Persero) Tbk (“BNI”) mobilizes energy from all people of BNI to continue to be at the forefront of effecting sustainable finance. We believe our effort is in line with sustainable development, in addition to enhance the resilience and competitiveness of BNI itself.
BNI’s commitment to sustainability is manifested by implementing sustainable finance as a patronage for values, attitudes and work culture, corporate strategy, operational policies, as well as the Company’s operational systems and procedures. BNI has been further developing the Company upon the basis of the Five Pillars of Sustainability, namely BNI for Indonesia, BNI for Customers, BNI for Employees, BNI for the Community, and BNI for the Environment.
We have institutionalized ESG into a formal committee led by Risk Management group to monitor the initiative and its results. We try to accommodate as many ESG framework as possible which fits with Indonesia banking landscape and make sure the frameworks are aligned with OJK guidelines. To review the results, one indicator we are currently using is MSCI ESG rating, which now stands at single A, the highest rating among Indonesia Banks.
Until Sept-2022, BNI's financing in the green segment has reached Rp 176 trillion or 28.5% of total loans, with the highest growth in the renewable energy sector, especially financing to Hydro power plant projects. Furthermore, BNI's green financing is also provided for the empowerment of MSMEs, sustainable land management, pollution control, and water and waste management.
On environmental aspect, we already incorporate environmental aspect into our underwriting standard. In palm oil, we require new palm oil debtors to have RSPO or ISPO certification. As of Sept-22, around 51% of our borrowers are already ISPO/RSPO certified or in the process of obtaining certification in short term.
One of our goals is to focus on top tier clients, considering their business models that are more sustainable and have high awareness of environmental, social and governance aspects. Gradually, we are also reviewing efforts to provide incentives for green portfolio loans. A concrete example is the one we just launched regarding low interest loans for electric vehicle ownership.
The Bank also makes efforts in providing products and services with environmental impact. BNI has installed voice services in 3,223 units of its ATMs to help customers with disabilities, promoting financial inclusion supporting program including agent banking (Agen46), also intensifying the implementation of our corporate strategy to reinforce the #BNItuDigital motto, unequivocally. We believe that digitization will continue to alter the face of banking, and we are greatly looking forward to having the long-term digitization of BNI that will help reduce GHG emissions.
As regards the internal aspect, BNI focuses on ecofriendly operations by managing the use of materials, energy, and water, as well as handling waste output and emissions. BNI is also striving to boost employee awareness regarding environmental issues by launching a campaign for employees (green attitude), providing training on environmental and social risks in credit-worthiness analysis.