Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced monthly average greenhouse gas emissions associated with organic, paper, plastic, metal and glass waste by 85%
• Operated 50 electric motorbikes, 30 electric cars and 1 unit of public electric vehicle charging station
• Total recycled waste was 237,957.5 kg equivalent to avoided emission of 164 tonnes of CO2e
• Distributed 680,848 tree seedlings and reached 2,196 villages throughout Indonesia

Social Achievements

• Disbursed IDR 35.8 trillion in loans to 13.9 million female debtors through PNM Mekaar
• Developed multiple initiatives, including human resources management, fulfillment of human rights, increased financial inclusion, and implementation of Social and Environmental Responsibility (TJSL)
• Employee Engagement Index (On a Scale of 4) With “very satisfactory” category: 3.48

Governance Achievements

• Issued a Sustainability Policy and Strategy set out in BRI Directors Circular Letter No: SE.52-DIR/ESG/10/2022
• Established ESG Strategy Pillars
• Ratification of the ESG-Based Pulp & Paper Sector Financing Policy
• Ratification of the Policy on Fixed Asset Management & ESG-Based Procurement

Climate Goals & Targets

Environmental Challenges

• Increasingly fierce banking industry business competition, especially in terms of use of digital technology

Mitigation Strategies

• Strengthened the digital technology-based business ecosystem
• Optimized the digital ecosystem that enables all customers and business actors to be connected with the entire supply chain across the country and abroad
• Continued to encourage its digital talent to have agility, speed, with high creative power

Supply Chain Management

Responsible Procurement

• ESG principles in fixed asset management and procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as hurricanes and floods

Transition Risks

• Policy and Legal Regulations
• Technology
• Market

Opportunities

• Products and Services
• Technology
• Market
• Energy Sources

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 9001, ISO 37001, ISO 37301, SMK3

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 17

Various programs and initiatives are carried out as a form of BRI’s contribution to support SDGs

Sustainable Products & Innovation

• Green Bonds
• Sustainability-Linked Loans (SLL)
• BRImo
• BRISPOT
• BRILink
• SenyuM Mobile
• Pasar.id

Environmental Metrics

ESG Focus Areas

• Climate Change
• Financial Inclusion
• Governance

Environmental Achievements

• Decreased Scope 1 emissions by 1.29% (1,706 tons of CO2e)
• Decreased Scope 2 emissions by 1.22% (4,393 tons of CO2e)
• Decreased Scope 3 financed emissions by 7.02% (788,279 tons of CO2e)
• Planted 904,196 tree seedlings (absorbing approximately 780,606 kg CO2eq of carbon)
• Operated 118 electric vehicles and 150 electric motorbikes
• Installed solar panels in 93 BRI work units
• Recycled 591,203 kg of waste, avoiding 441,817 kg of CO2e emissions

Social Achievements

• Facilitated disbursements to more than 36.9 million Ultra Micro (UMi) and Micro customers
• Empowered more than 15.1 million underprivileged women customers through the PNM Mekaar program
• Launched BRImo application, increasing transaction value by 55.8% and users by 32.6% (reaching over 31 million users)
• Launched SenyuM Mobile application, accessed by over 36 million micro and ultra-micro customers
• Implemented the BRI Menanam program, planting 233,700 trees in 2023
• Implemented the BRInita (Farming in the City) program, involving 615 people and producing various crops and processed products
• Achieved a customer satisfaction rate of 84.66%
• Achieved a complaint resolution rate of 99.56%

Governance Achievements

• Joined the United Nations Global Compact (UNGC) in March 2023
• Issued a Sustainability Policy and Strategy
• Established the Risk Management and Environmental, Social & Governance (ESG) Committee
• Established the ESG Division
• Issued a USD 1 billion Sustainability-Linked Loan
• Issued Green Bonds worth IDR 11 trillion
• Issued human rights policy and policy pertaining to human rights principles in employment
• Implemented ISO 37001:2016 Anti-Bribery Management System

Climate Goals & Targets

Environmental Challenges

• Uncertainty of challenging global economic conditions, including inflation and debt
• Forthcoming general election in 2024 and escalating geopolitical tensions
• Internal and external challenges in implementing sustainable finance, including regulations, digitalization, and limited guidance
• Climate change risks (transition and physical risks)

Mitigation Strategies

• Increased consistent and structured trainings on various sustainability topics
• Implemented risk management to identify potential risks from external factors
• Developed alternative sourcing strategies
• Incorporated electric vehicles into operational activities
• Developed decarbonization strategies, including Sustainability-Linked Loans
• Established ESG-based financing policies in the Palm Oil and Pulp & Paper subsectors
• Established a specialized division to handle digital data security
• Periodically updated and reviewed e-KYC technology and algorithms

Supply Chain Management

Supplier Audits: 42 suppliers participated in human rights assessment in 2023; 254 vendors holding the Certificate of Registration (SKT)

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Anti-Bribery Declaration
• Human Rights considerations (including prohibition of child labor)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heatwaves
• Flooding

Transition Risks

• Carbon pricing
• Ambitious climate-related policies
• Technological advancement
• Reputation
• Market changes

Opportunities

• Development of energy-efficient products
• Technological advancement supporting transition towards a lower-carbon economy
• Increased brand value for timely response to national decarbonization strategies

Reporting Standards

Frameworks Used: GRI Standards, SASB, IFRS S1 and S2, TCFD

Certifications: ISO 37001:2016 Anti-Bribery Management System, ISO 27001, ISO 20000, ISO 45001

Third-party Assurance: CBC Global Indonesia

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 17

BRI's BRIVolution 2.0 strategy and various initiatives contribute to the achievement of these SDGs.

Sustainable Products & Innovation

• Green Bonds
• Sustainability Bonds
• Sustainability-Linked Loans
• Qlola platform (Supply Chain Management feature)

Awards & Recognition

• Banks Sustainability Yearbook Member 2024 (S&P Global)
• Top 3 Public Listed Companies in Indonesia and the ASEAN Asset Class within the ASEAN Corporate Governance Scorecard (ACGS)
• Constituent of the IDX ESG Leaders Index (ESGL)
• Included in 3 KEHATI Indices
• Anugerah CSR Republika 2023 Awards
• Top CSR Awards 2023
• TJSL & CSR Awards 2023
• Republika Majalah Top Business BUMN Track Awards