World Achievement! BRI, the Sole Champion from Indonesia, Wins Sustainable Finance Awards 2023

World Achievement! BRI, the Sole Champion from Indonesia, Wins Sustainable Finance Awards 2023


Jakarta, Tangerangtalk.Online - PT Bank Rakyat Indonesia (Persero) Tbk, committed to implementing sustainable business practices in the country, has become the only company in Indonesia to win the Sustainable Finance Awards 2023.

The award was presented by Global Finance, a leading financial magazine based in New York, USA, which has been established for 36 years. The assessment method is based on submissions and in-depth research. Joseph Giarraputo, the founder of Global Finance, stated that the assessment and research are conducted independently, with evaluation criteria covering policies, objectives, governance, and measurable achievements in environmental and social sustainability financing.

"The Sustainable Finance Awards 2023 are given to companies that have successfully maintained and developed their sustainable financing throughout 2022," quoted the official release from Global Finance on July 4, 2023.

In response to this achievement, BRI's Director of Compliance, Ahmad Solichin Lutfiyanto, stated that BRI prioritizes the implementation of sustainable finance. He explained, "Our core business, which focuses on empowering micro, small, and medium enterprises (MSMEs), strengthens BRI's determination and commitment to consistently enhance sustainable financial practices in the future."

Solichin emphasized that as a front-runner in sustainable banking in Indonesia, with the largest sustainable finance portfolio in the country, BRI believes that sustainable finance practices have become an obligation and a key strategy for the company's continuous growth and development.

Sustainable finance is a comprehensive effort by the financial services industry to promote sustainable growth, where growth is shaped by the alignment of economic, social, and environmental aspects.

BRI continues to integrate ESG (Environmental, Social, and Governance) principles into its operational and business activities. To achieve this, BRI has initiated various initiatives in each aspect of ESG. In terms of the environment, BRI has a strong portfolio in financing sustainable businesses, following the criteria set in Financial Services Authority Regulation No. 51/2017, which includes the green sector and MSMEs. In the first quarter of 2023, BRI disbursed loans amounting to IDR 80.2 trillion for environmentally friendly activities, accounting for 7.5% of BRI's total loan disbursement.

Regarding funding, in 2019, BRI issued a USD 500 million Sustainability Bond. In 2022, BRI directed 26% of the raised funds to the green sector. BRI also issued a Green Bond amounting to IDR 5 trillion in 2022, with 80% of the funds allocated to the green sector.

Not only in the environmental aspect, but BRI also continues to strengthen the implementation of ESG in the social aspect. The establishment of the Ultra Micro Holding Company, consisting of BRI, Pegadaian, and PNM in 2021, is an effort by the BRI Group to improve financial inclusion and literacy in Indonesia.

Throughout 2022, BRI disbursed loans amounting to IDR 630.7 trillion to the MSME sector, accounting for 59.2% of BRI's total loan disbursement. Additionally, BRI directed 74% of the funds raised from the Sustainability Bond and 20% from the Green Bond to the social sector. In 2022, BRI also issued USD 1 billion worth of Sustainability-Linked Loans with Key Performance Indicators aligned with BRI's focus on increasing credit disbursement to MSMEs, especially micro and ultra micro segments.

Moreover, BRI is committed to upholding human rights enforcement. This is evident through policies such as Human Rights Principles in employment, Respectful Workplace Policy, and Occupational Health and Safety Implementation Policy. BRI also implements anti-discrimination policies in all aspects of Human Capital management, including career development and employee benefits.

As part of BRI's commitment to providing the best service to its customers, BRI applies consumer protection principles, including transparent marketing practices, equal treatment for all customers, protection of customer's personal data supported by ISO27001:2013-certified data privacy and cybersecurity management systems, and the availability of procedures for handling and resolving customer complaints in accordance with applicable standards and regulations.

Due to BRI's commitment to implementing good corporate governance practices, BRI has received various acknowledgments, including being ranked as one of the top three Public Limited Companies (PLCs) in Indonesia in the ASEAN Corporate Governance Scorecard (ACGS) by the ASEAN Capital Market Forum (ACMF). Additionally, BRI has been awarded as the Most Trusted Company in the Corporate Governance Perception Index (CGPI) assessment. (Siaran Berita)

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