Bank Negara Indonesia

The financial institution assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body while implementation responsibility is delegated to various functions, teams, or committees. It discloses a list of the trade associations of which it is a member and provides examples of how its products, services, and capital supports the climate adaptation and resilience of society. Furthermore, the institution monitors its Scope 1-2 emissions and discloses the amount or share, in monetary terms, of products, services, and capital provided to small and medium-sized enterprises. However, no leading practices were identified for the financial institution with regard to Responsible business conduct.

The financial institution commits to respecting the ILO’s fundamental rights at work but has the opportunity to formalise this in a policy document. It can also disclose its method for determining a living wage in its operational regions. While it prohibits bribery and corruption, formalising this in a public policy document and including such clauses in its contracts with business relationships is recommended.

While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Furthermore, it could link performance criteria for remuneration at the senior executive level to specific sustainability targets and disclose that it does not provide products, services or capital, neither to new fossil fuel projects nor to clients and investees undertaking such projects.

It is recommended that the institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Moreover, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition.

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.