Indonesia's best bank for ESG 2022: Bank Rakyat Indonesia
Bank Rakyat Indonesia
Bank Rakyat has been playing a significant role in the area of ESG in Indonesia, using its reach and credentials to help the natural resources and coal-reliant country adopt better practices.
The state-owned bank, one of the largest lenders by assets in the southeast Asian nation, was among the first movers to take forward the Financial Services Authority’s sustainable banking initiative unveiled in 2015.
BRI, led by president director Sunarso, issued its own sustainability policies in 2018, embedding ESG into four aspects of its business: assets, liabilities, operations, and human capital. By March, BRI had disbursed about 66% of its total loans to sustainable businesses.
It is helping brown sectors with the transition. For instance, sustainable principles are applied to the palm oil sector, so borrowers adhere to globally recognized ESG certifications.
BRI was also the first bank in southeast Asia to sell $500 million of sustainable bonds. The bank has developed digital savings products to cut carbon emissions from customer mobility and paper use.
On the operations side, BRI has digitalized many of its processes and products.