In Bank Mandiri, our commitment to responsible finance is at the core of our business.
We have taken a proactive approach in integrating and aligning ESG (Environmental, Social,
and Governance) aspects into our business activities and decision-making processes. First and
foremost, we recognize that responsible financing is not merely a trend but a fundamental principle
that drives our business strategy. We have embedded ESG considerations into our lending and
investment practices, ensuring that we support projects and initiatives that prioritize sustainability
and positive societal impacts. By conducting thorough ESG due diligence on potential clients and partners,
we minimize risk and contribute to the long-term resilience of our portfolios.
To fortify our commitment further, Bank Mandiri has established Sustainable Finance Framework that
demonstrates guidance for stakeholders including regulators, clients, investors, and internal Bank
Mandiri on facilitating the classification, monitoring, and reporting of sustainable finance. This
framework was developed to issue Green, Social, Sustainable loans or bonds, Sustainability Linked-loans
or bonds, and other sustainable finance instruments. In developing this framework, it reflects Bank Mandiri’s
goal of contributing to the achievement national sustainability target, and ensure alignment with international
standards/principles (e.g LMA, ICMA), and relevant taxonomies. This Framework is dynamic in nature and will be
periodically reviewed and expanded as necessary to amend and/or add additional qualifying activities and/or
criteria to meet any applicable regulatory requirements.
Currently, the framework is undergoing assessment for alignment with international standards by Second
Party Opinion (SPO) and will be updated after getting an opinion from SPO.
Download Sustainable Finance Framework
In addition to the evaluation criteria, we have specific policies and/or Standard Operating Procedures (SOPs) to ensure sustainable practices in our business processes:
Bank Mandiri is committed to not financing businesses that engage in the following activities (Exclusion List):
- Environmentally Adverse Projects
- Illegal Logging Operations
- Peatland-related Financing
- Gambling Industries
- Pornographic content & Human Right Violations
- Prohibit Drugs and Narcotics
- Projects that could harm the environment and protected areas, such as UNESCO World Heritage Sites
- Sectors prohibited by laws and regulations.
Bank Mandiri mandates that clients have ESG-related requirement, such as:
- Environmental impact assessment (AMDAL):
- Environmental Management Effort and Environmental Monitoring Effort (UKL-UPL)
- Public Disclosure Program for Environmental Compliance (PROPER)
- other criteria in accordance with applicable laws and regulations.
We have integrated ESG considerations into our end-to-end credit process as a fundamental component of Bank Mandiri's Financing Policy. We have also distributed sector-specific guidelines tailored to high ESG risk industries, which act as a guiding framework for evaluating debtors operating within these specific sectors.
Bank Mandiri has established a binding credit policy for customers in this sector to:
- Have Environmental Management certification such as ISO 14001 or other documents acceptable to the Bank.
- Have at least a Blue PROPER assessment and/or an approved AMDAL or UKL-UPL report by the Environmental Agency (BLH).
- For public companies, it is mandatory to have a sustainability report.
- Make endeavors to improve energy efficiency and reduce emissions, with adequate electricity and water supply.
- Have a Wastewater Treatment Plant (IPAL)/Waste Treatment Plant (IPL)/Liquid Waste Disposal Permit (IPLC)/and B3 waste treatment facility, evidenced by documents acceptable to the Bank.
- For pulp & paper trading, have endeavors/declaration letters to fulfill
principles/commitments including:
- Selling products or services aimed at not harming the environment
- Eco-friendly, efficient, cost-effective, and energy-efficient distribution processes
- Allocating a budget for eco-friendly marketing
- Not overusing resources
- Having sustainability certificates, such as Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC), or similar environmental sustainability certificates.