Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Social Performance
• Environmental Performance
• Governance

Environmental Achievements

• Reduced electricity use at Bank Mega Tower Tendean by 529,800 kWh
• Reduced paper waste by 34,319 reams
• Reduced fuel use by 475,609 liters, equivalent to 1,117,524 kg CO2 emission reduction

Social Achievements

• 97.08% of employees participated in online trainings
• Launched e-learning sustainable finance training for employees
• No fatal work accidents
• Implemented COVID-19 Control Group and health protocols
• Distributed Rp5.6 billion for COVID-19 related health protocols and employee support

Governance Achievements

• Established a Sustainable Finance Team
• Prepared and submitted Sustainable Finance Action Plan (RAKB) to OJK
• Updated Bank Credit Policy to incorporate Sustainable Finance principles
• Implemented anti-fraud and anti-corruption measures

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business and training
• Slow credit growth in real and business sectors
• Challenges in distributing credit to MSMEs due to location, management capabilities, capital, and legality
• Increasing environmental and social risks (environmental degradation, climate change, human rights violations, forced labor)

Mitigation Strategies

• Implemented digital transformation and automation to increase productivity and cost efficiency
• Adjusted internal capacity improvements through online training
• Continued support for MSMEs through credit restructuring and digital innovation
• Implemented sustainable finance policies and risk management procedures
• Provided internal and external education on sustainable finance
• Selected debtors based on credit requirements aligned with ESG aspects
• Conducted company operations considering eco-friendly aspects

Supply Chain Management

Responsible Procurement

• Procurement Committee coordinates with Board of Directors
• Routine evaluation of vendors’ performance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Reporting Standards

Frameworks Used: OJK Regulation Number 51/POJK.03/2017, GRI Standards: ‘in accordance’, and financial services sector supplement

UN Sustainable Development Goals

• Good Health and Well-Being
• Gender Equality
• Responsible Consumption and Production
• Quality Education
• Decent Work and Economic Growth
• Industry, Innovation, and Infrastructure

Bank Mega's strategies and activities align with these SDGs (refer to the report for details).

Sustainable Products & Innovation

• Mega Berbagi savings product
• M-Smile mobile banking application
• MILA chatbot

Awards & Recognition

• Various awards mentioned in the report (refer to the report for details)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Emission reduction to 2,349 tons of CO2 or 15% compared to last year
• Reduced pertalite fuel use from 943,687 liters in 2021 to 844,389 liters in 2022 (fuel efficiency of 99,098 liters, contributing to a reduction of around 232.83 tons of CO2)
• Reduced HVS paper use from 6,263 reams in 2021 to 4,454 reams in 2022 (equivalent to reducing the felling of about 78 trees)
• Reduced print media use from 103,200 copies to 75,108 copies (reducing the felling of around 52 trees)
• Planted 50 mangrove seedlings in Bali and 100 bamboo tree seedlings in Magelang

Social Achievements

• Provided booster vaccines to the general public
• Conducted community empowerment through Social and Environmental Responsibility (TJSL) activities
• Provided credit financing to MSMEs of Rp66 billion
• Distributed funds for TJSL activities of Rp9.57 billion (increase from Rp4.32 billion in 2021)
• 100% of employees received performance review and participated in career development activities
• 13.78% of employees received position promotion

Governance Achievements

• Obtained ISO 27001:2013 certification from CBQA Global
• Updated Bank’s Credit Risk Management Policy to regulate efforts in identifying, measuring, monitoring, and risk control over implementation of Sustainable Finance
• Carried out Risk Awareness training
• Implemented a Whistleblowing System

Climate Goals & Targets

Environmental Challenges

• Credit risk, operational risk, liquidity risk, and market risk in implementing sustainable finance
• Need to increase awareness of all employees to stimulate sustainability culture
• Vague and overlapping regulations, particularly in green projects
• Escalating number of cybercrime due to digital transactions

Mitigation Strategies

• Practiced a prudential approach through four pillars: Adequacy in Policy, Procedure, and Limitation; Active Oversight of the Board of Commissioners and Directors; Internal Control System; Adequacy in Identification, Measurement, Monitoring, and Risk Control as well as Risk Management Information System
• Provided education to all employees and debtors on the importance of implementing sustainable finance
• Reinforced data security system with three-layer defense and implemented ISO 27001
• Encouraged customers to help guard their data confidentiality
• Provided an open channel through a whistleblowing system for complaints/information

Supply Chain Management

Responsible Procurement

• All 25 vendors in 2022 were local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather changes (floods and windstorms)

Reporting Standards

Frameworks Used: POJK No. 51/POJK.03/2017, GRI Standards 2021, GRI Financial Services Sector Supplement

Certifications: ISO 27001:2013

UN Sustainable Development Goals

• 3
• 4
• 5
• 8
• 9
• 12

Initiatives align with SDGs 3 (Good Health and Well-being), 4 (Quality Education), 5 (Gender Equality), 8 (Decent Work and Economic Growth), 9 (Industry, Innovation, and Infrastructure), and 12 (Responsible Consumption and Production).

Sustainable Products & Innovation

• Mega Berbagi Savings product

Awards & Recognition

• Corporate Emissions Transparency Award 2022 (Silver Degree)
• The Best Bank in SME Financing KBMI III - Infobank
• Top 50 Big Capitalization Public Listed Company (Indonesian Institute for Corporate Directorship)

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• Customer Privacy and Data Security
• Digitalization and Innovation
• Training, Development, and Technology Engagement
• Financial Inclusion and Literacy
• Service Excellence

Environmental Achievements

• Reduced water consumption at Bank Mega Tower by 3% (82.31 m3 in 2023 compared to 85.15 m3 in 2022).
• Reduced paper waste by 47% (15.05 tons in 2023 compared to 22.05 tons in 2022).
• Reduced magazine and newspaper costs by Rp177.4 million.

Social Achievements

• 3,391 female employees constituting 54.31% of the total workforce.
• 2 women (25%) in roles as Directors and members of the Board of Commissioners.
• Allocated Rp10.82 billion for Mega Berbagi and Mega Peduli programs (13.06% increase from 2022).
• No reports of complaints regarding violations of employment practices, including acts of discrimination.

Governance Achievements

• Implemented a Whistleblowing System, receiving and addressing 11 reports in 2023.
• Conducted periodic anti-fraud training for all employees.
• Achieved a position within the top 5 in customer satisfaction levels (SLE Index 2023).

Climate Goals & Targets

Environmental Challenges

• Data privacy security in digitalization.
• Challenges in implementing sustainable finance (internal: enhancing employee awareness; external: collaboration with debtors, obtaining climate risk data).
• Increased fuel consumption for official vehicles and online taxis (15% and 16% increase respectively).

Mitigation Strategies

• Implemented ISO 27001:2013 standard for Information Security Management System (ISMS).
• Continuous education for employees and debtors on sustainable finance and ESG factors.
• Reviewing policies to ensure alignment with a culture of sustainability.
• Use of high-octane RON 95 fuel for some operational vehicles.

Supply Chain Management

Supplier Audits: 24 in 2023, 25 in 2022

Responsible Procurement

• Vendor code of conduct
• Transparent goods and/or services procurement
• Fair work contract
• Timely payment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (floods, windstorms)
• Floods and fire risks impacting assets

Transition Risks

• Carbon tax imposition

Reporting Standards

Frameworks Used: GRI 2021 standards, POJK No. 51/POJK.03/2017, SEOJK No. 16/SEOJK.04/2021

UN Sustainable Development Goals

• 3, 4, 5, 8, 9, 12, 16

Programs aligned with SDGs 3 (Good Health and Well-being), 4 (Quality Education), 5 (Gender Equality), 8 (Decent Work and Economic Growth), 9 (Industry, Innovation, and Infrastructure), 12 (Responsible Consumption and Production), and 16 (Peace, Justice, and Strong Institutions).

Sustainable Products & Innovation

• Digital Credit Card (reduces carbon emissions and paper usage)
• QRIS TUNTAS functionality in M-Smile application

Awards & Recognition

• Transparency in Corporate Emission Reduction 2023 (Green Category) - Investor Daily
• Transparency in Corporate Emission Calculation 2023 (Silver Category) - BGK Foundation
• Katadata Green Initiative Awards 2023 - Banking Sector Category
• LPS Awards 2023 - Best Bank in SCV Reporting, KBMI Group 3
• Satisfaction Loyalty Engagement Awards 2023 - Infobank and MRI
• The Most Efficient Bank Bank KBMI 3 - Bisnis Indonesia
• Excellent Financial Performance Bank in 2022 - Infobank
• The Best Performing Bank 2023 (Bank Assets Category Within Rp100 Trillion Less Thank Rp500Trillion) - The Finance