Bank Mandiri was founded in 1998 in Indonesia. The following year four state-owned banks - Bank Bumi Daya, Bank Dagang Negara, Bank Exim and Bapindo - were amalgamated into Bank Mandiri. Today the financial institution comprises one main entity, Bank Mandiri, and 11 subsidiaries. It has two business segments, retail and wholesale, as well as four geographical segments namely, Indonesia, Asia, Western Europe and the Cayman Islands. As of 2021, Bank Mandiri had IDR 1.73 quadrillion in total assets and 37,840 employees.
Bank Mandiri has identified and prioritised its impacts through a materiality assessment process in which Bank Mandiri considered its external impact. It also publicly commits to gender equality and women’s empowerment.
Bank Mandiri has a grievance mechanism accessible to all workers and external stakeholders to raise human rights complaints or concerns. It also has a policy prohibiting bribery and corruption and takes steps to identify and address bribery and corruption. In terms of workforce diversity, the financial institution discloses the proportion of its total direct operations workforce for each employee category by age group, gender and education. Bank Mandiri also discloses the amount of finance it directs towards usually excluded groups, namely women in rural areas, as well as a breakdown of lending to micro, small and medium sized enterprises.
While the financial institution’s board of directors supports the implementation of sustainability, it is unclear if the end responsibility for sustainability issues lies with this body. Moreover, there is no evidence that the financial institution links the remuneration of its executive or management teams to sustainability performance criteria. The financial institution has an opportunity to reach at least 40% female representation in senior leadership positions and on the board. Currently it has 32% women in top level management and 16.6% women on the board. Additionally, there is an opportunity for the financial institution to disclose actions taken to address any pay gaps. Regarding engagement, Bank Mandiri has an opportunity to describe its engagement approach on sustainability themes and impact topics with clients and investees, across its financing activities.
There is no evidence that Bank Mandiri discloses a target to reach net-zero financed emissions by 2050 or has an approach to fossil fuels, which covers the entire fossil fuel value chain and all of the financial institution’s financing activities. The financial institution has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on alignment with the Paris Agreement. It could also commit to minimising its negative impacts on nature and biodiversity. Bank Mandiri has committed IDR 205.4 trillion to ‘sustainable business activity’, but there is no evidence that the financial institution discloses its financing activities devoted to climate solutions.
There is no evidence that Bank Mandiri has a publicly available policy statement committing it to respect human rights laid out in the UNGPs and the ILO declaration on fundamental rights at work. Moreover, it has an opportunity to describe the process for identifying its human rights risks and impacts through its relevant financing activities. While the financial institution states that it respects the health and safety of workers, it could formalise this commitment in a public policy document. Bank Mandiri could also disclose the amount of finance directed towards low-income developing countries.
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Net income: IDR 74.85 trillion; Total assets: IDR 1.73 quadrillion