Sustainable Banking in Indonesia
In cooperation with Indonesia’s financial regulator, the Financial Service Authority (Indonesian: Otoritas Jasa Keuangan or OJK) and the WWF Indonesia, GIZ’s Emerging Markets Dialogue on Finance offers capacity building trainings in environmental, social and governance (ESG) risk management procedures for the major Indonesian banks.
The initiative is integral part of Indonesia’s Sustainable Finance Roadmap launched by OJK in conjunction with the Ministry of Environment and Forestry in year 2015. The roadmap functions as the key guidance document for the finance industry and other parties involved in supporting sustainable development. As a result of the roadmap, the largest eight banks – representing over 50 percent of the national banking capital assets – are required to integrate ESG criteria into their risk management practices. In order to build the necessary capacities on ESG risk management, the initiative offers technical workshops for risk and compliance managers as well as representatives from legal and sustainability departments, and establishes the Indonesia Sustainable Finance Initiative (ISFI) Roundtable of first movers.
- Update Indonesia Sustainable Finance Initiative: Indonesian Banks being assessed on ASEAN Sustainable Banking Report (Bahasa Version) (October 2018)
- Update Indonesia Sustainable Finance Initiative: Consolidation Meeting of Indonesia Sustainable Finance Initiative (ISFI) (September 2018)
- Workshop: Environmental, Social & Governance Integration for Banks – First Steps to be a Sustainable Bank (22 Feb 2017, Jakarta). The workshop focused on how to integrate and apply ESG risk assessment practices.
- Workshop: Papua Responsible Investment & Sustainable Banking Pilot Project Socialization (12 Apr 2017, Papua)
- Workshop: Environmental, Social & Governance Integration for Banks – First Steps to be a Sustainable Bank (3 May 2017, Jakarta). The workshop focused on incorporating ESG criteria into loan agreements, dealing with non-compliance and on-going monitoring of ESG policy .
- Workshop: Environmental, Social & Governance Integration for Banks – Pilot Project Training & Technical Facilitation (on-going). The in-house workshop with all eight first mover banks provided a first technical training on the first steps to ESG integration and Palm Oil Masterclass.
- Closing Ceremony for the first mover banks: Environmental, Social & Governance Integration for Banks (12 Jul 2017, Bali)
- Side Meeting to Closing Ceremony: Environmental, Social & Governance Integration for Banks – Concrete Action and Next Action Plan (12 Jul 2017, Bali)
- Launch: „Indonesia Sustainable Finance Initiative“ (31 May 2018, Jakarta)