Bank Mandiri

The financial institution delegates decision-making and oversight of its sustainability strategy to its highest governance body and assigns the implementation of the strategy to specific functions, teams, or committees within the organization. Furthermore, it discloses its membership in trade associations, as well as transparently identifies and prioritizes sectors and areas with the highest nature-related impacts arising from its products, services, and capital. Finally, the financial institution reports the monetary amount or share of its products, services, and capital provided to small- and medium-sized enterprises and provides country-level operational disclosures, such as the number of employees or revenue.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions. Furthermore, it identifies material sustainability impacts across its value chain but could provide more detail on the objective criteria and evidence used for prioritisation. Linking senior executive remuneration to specific sustainability targets is also recommended, along with disclosing actions taken to align lobbying and public policy with its sustainability strategy.

While the financial institution has credit policies for certain fossil fuel sectors, it should clarify that it does not support new or current fossil fuel projects. Although it mentions progress in sustainability financing, it could set measurable targets for providing products, services and capital to climate solutions. The entity discloses monetary values for some nature-related activities but should provide further detail and clarify the aggregate amount allocated to nature-positive solutions.

Although the financial reports scope 1-2 emissions, further detail on scope 2 emissions regarding location or market-based values is needed. Furthermore, increasing coverage of financed emissions measured and monitoring other scope 3 categories is recommended. Establishing a transition plan for operations, supply chain, and portfolio is also advised, along with disclosing client breakdown by income group and processes to avoid negative impacts on low-income countries. Finally, identifying social risks related to net zero transition and providing examples of actions taken on salient human rights issues from recent assessments are also recommended.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.