Achieve ESG Awards 2023 by KEHATI, BRI Excelling in Implementing Sustainable Business

Kapanlagi.com - High commitment to implementing sustainable finance has enabled PT Bank Rakyat Indonesia (Persero) Tbk to achieve the Environmental, Social, and Corporate Governance (ESG) Award 2023. The award event was organized by the Indonesian Biodiversity Foundation (KEHATI). At the event held in Jakarta on July 27, 2023, BRI received the award in the Best Capital Market category, subcategory Emiten.

This achievement is based on assessment indicators, namely high ESG scores from KEHATI, pioneering level for investors, ESG-based investment products issued, and allocation of company's managed funds (Asset Under Management/AUM) for philanthropic activities.

According to BRI's Compliance Director, Ahmad Solichin Lutfiyanto, BRI remains committed to sustainable investment. "BRI has developed specific strategies and policies to implement ESG aspects in its business processes," he said.

Application of ESG Principles Has Become BRI's Commitment

The application of ESG principles in BRI has become part of the company's sustainability strategy and BRI's commitment to making positive contributions to society and the environment. In the first quarter of 2023, this BBRI-listed issuer recorded a 11.1% year-on-year (yoy) growth in sustainable credit disbursement, reaching Rp710.9 trillion.

As a bank that focuses on serving MSME customers, BRI also contributes to improving financial inclusion & literacy. In 2019, BRI issued a sustainability bond worth US$500 million.

Furthermore, BRI issued Rp5 trillion worth of green bonds in 2022. Also in 2022, BRI issued sustainability-linked loans worth US$1 billion, in line with its business focus on increasing credit disbursement to MSMEs, especially micro and ultra-micro segments.

Another milestone achieved by BRI in the implementation of ESG in 2022 is the calculation of financed emissions in BRI's company emissions calculation, which also led to BRI's inclusion in the S&P Global Sustainability Yearbook Member as the only Indonesian company included. This shows global recognition for BRI's implementation of ESG.

Selected Based on Best ESG Criteria

Regarding this ESG award, Riki Frindos, Executive Director of KEHATI, also stated that the awarded companies were selected based on the best ESG criteria representing their respective industry sectors.

For issuers specifically, the selection was carried out among several listed companies that are constituents of the SRI-KEHATI Index, a stock index launched by KEHATI in collaboration with the Indonesia Stock Exchange (IDX) since 2009.

"Congratulations to the winners of the 2023 ESG Award By KEHATI." We hope their high commitment to ESG-based sustainable investment can drive the same awareness from other market participants in the financial industry, especially the Indonesian capital market," said Riki in an official statement in Jakarta, July 27, 2023.

This award was assessed by a number of jury members who are experts and professionals, namely Cyril Noerhadi, Chairman of the Indonesian Investment Authority (INA) Supervisory Board, and Riki Frindos from KEHATI as the secretary, as well as six other members, namely Demetrius Ari Pitojo, Mohamad Oki Ramadhana, Ariani Vidya Sofjan, Rama Manusama, Nadia Chiarina, and Agus Salim.

(kly/tmi)