by established sustainability
governance and ESG risk
management. Bank itself
owns its Sustainability Policy,
Sustainable Finance Policy,
Human Rights Policy, and
NDPE commitment.
Climate change has become a global challenge, including in Indonesia, a large maritime country. In response to this challenge, the Government continues to improve the implementation of sustainable finance. As a financial services provider, CIMB Niaga plays an important role in climate change mitigation and adaptation efforts. CIMB Niaga refers to the Task Force on Climate-related Financial Disclosures (TCFD) framework as guideline to achieve net zero emission targets for Scope 1, 2, and 3, or become a carbon
neutral organization by 2050. This TCFD framework is also incorporated into the governance of the Good Corporate Governance (GCG) & Sustainability Unit.
This unit is assigned to map and classify internal business based on the types of climate change risks, to reduce the negative impacts of climate change and its adaptation measures, and to develop mitigation strategies with specific scenarios to anticipate extreme climate impacts.
Sustainability Governance Body at CIMB Niaga [SUSBA 1.4.1.7] [POJK51-E.1]
GOOD CORPORATE GOVERNANCE (GCG)
SPECIALIST
SUSTAINABILITY SENIOR SPECIALIST COMMUNITY DEVELOPMENT HEAD
COMMUNITY DEVELOPMENT
SPECIALIST SUSTAINABILITY BUSINESS PRACTICE SPECIALIST
SUSTAINABILITY STRATEGY AND REPORTING SPECIALIST HEAD OF GOOD
CORPORATE GOVERNANCE (GCG) DAN SUSTAINABILITY
BUSINESS UNIT/ENABLER UNIT BUSINESS UNIT/ENABLER UNIT
Sustainability Governance
[GRI 2-9; 2-11; 2-12; 2-13][SUSBA 1.4.1.7]RISK MANAGEMENT
COMMITTEE INTEGRATED
CORPORATE GOVERNANCE
COMMITTEE
PRESIDENT DIRECTOR
DIRECTOR RESPONSIBLE FOR SUSTAINABILITY BOARD OF COMMISSIONERS
NOMINATION REMUNERATION AND
COMMITTEE AUDIT
COMMITTEE RISK OVERSIGHT
COMMITTEE
BUSINESS UNIT/ENABLER UNIT BUSINESS UNIT/ENABLER UNIT
The Board of Commissioners is the highest governance body, followed by President Director, Director of Compliance, Corporate Affairs, & Legal, and Head of Good Corporate Governance (GCG) & Sustainability in charge of the GCG Specialist, the Community Development Head, and the Sustainability Specialists.
All Directors are jointly responsible for implementing sustainable finance principles and are directly supervised by the Board of Commissioners, with the assistance of the Audit Committee and Risk Oversight Committee. Periodically, the Risk Management Committee and the Risk Oversight Committee are also informed on the updates of sustainability risks in Bank’s financing portfolio as well as sustainability recommendations for clients. Meanwhile, the Bank’s Sustainable Finance Action Plan (RAKB) and its achievements are reported to the Audit Committee.
[SUSBA 1.4.1.7] [GRI 102-20; 102-23; 102-29]
Duties and Responsibilities of the Highest Governance Body for Sustainability and Sustainable Finance [GRI 2-12; 2-13; 2-14; 2-19] [SUSBA 1.1.2.2; 1.4.1.2; 1.4.1.6; 1.4.1.7]
CIMB Niaga believes that corporate governance is the foundation for managing an organization with ethics, integrity, and responsibility to build stakeholder trust. Bank has integrated sustainability implementation-related duties and responsibilities into the charters of the Board of Commissioners, Board of Directors, Audit Committee, and Nomination and Compensation Committee. The Pillar 4 Appendix provides a comprehensive explanation of the duties and responsibilities of the Audit Committee and the Nomination and Remuneration Committee regarding sustainability implementation.
Several Duties and Responsibilities of the Governance Body in Implementing Sustainable Finance Principles Board of
Commissioners 1. Ensure environmental, economic, social, and governance alignment in the business strategies preparation and business activities by the Board of Directors as a means of implementing a sustainable banking business
Board of Directors
1. Ensure that the sustainability strategy is in line with Bank’s overall strategy
2. Approve the Policies and Procedures related to sustainability aspects and sustainable finance principles 3. Develop the Sustainable Finance Action Plan (RAKB) for submission to OJK following approval by the Board of
Commissioners
4. Conduct periodic reviews to evaluate sustainability and sustainable finance performance Director of
Compliance, Corporate Affairs, and Legal
1. Lead the preparation of the RAKB
2. Ensure that the RAKB is aligned with the Bank’s vision and mission
3. Regular coordination, evaluation, and monitoring of RAKB implementation
4. Ensure the implementation of adequate frameworks, policies, methodologies, procedures and/or controls to mitigate sustainability risks [e.g. environmental and social risks, risks related to human rights, and risks related to climate change (eg physical and transitional risks)]
5. Supervise and ensure the implementation of sustainable activities/initiatives in line with Bank’s strategy 6. Examine and provide input on the sustainability report
GCG &
Sustainability Work Unit [GRI 102-19]
[SUSBA 1.4.2.1]
1. Propose and ensure that the sustainable finance vision and mission are regularly reviewed and aligned with the Bank’s vision and mission
2. Develop the Sustainability and Sustainable Finance Policy 3. Develop RAKB and submit it to regulators [SUSBA 1.1.2.2]
4. Supervise the implementation of the RAKB, including the development of sustainable finance products/
services, capacity building, and Bank’s internal adjustments
5. Implement and oversee the implementation of sustainability culture and activities/initiatives in Bank’s internal environment, including corporate social responsibility (CSR)
6. Raise the awareness of sustainable finance practices and culture at Bank 7. Ensure that stakeholders are informed on sustainable finance implementation
8. Map business segments that have climate change-related risks and assign the financing categories into high, medium, or low risk groups [SUSBA 1.4.1.2]
Detailed description and disclosure of information regarding Corporate Governance; nomination and remuneration criteria for Board of Directors (BoD) and Board of Commissioners (BoC); authorities of the General Meeting of Shareholders
Management Review of Sustainability Performance
[GRI 2-12; 2-13] [SUSBA 1.4.1.1; 1.4.1.2; 1.4.1.3; 1.4.1.6; 1.4.1.7; 1.4.2.1]
Compliance, Corporate Affairs, and Legal Director is appointed as the director responsible for the implementation, monitoring, and evaluation of the RAKB. Regular assessments of sustainability performance are conducted at least twice a year.
Through this process, the Board of Directors discusses the objectives and achievement strategies outlined in the RAKB. In 2022, CIMB Niaga specifically discussed a strategy for mapping and identifying clients in accordance with the Indonesian Green Taxonomy.
The implementation of RAKB are also reviewed periodically, by which the results are presented to the Board of Commissioners. The Board of Commissioners and/or the Audit Committee will continue to review RAKB results submitted by the Board of Directors, while the Board of Commissioners and/or the Risk Oversight Committee will review the identification of high sustainability risk sectors, sustainable finance risks, human rights risks, and climate change (physical and transitional) risk. Board of Directors and Board of
Commissioners leverage this evaluation process to ensure that the application and implementation of the sustainability strategy, the growth performance of the Sustainable Business Activity Category (KKUB) portfolio, and financial risk mitigation are performed in a targeted manner. In 2022, the review found nothing significant regarding the implementation of the RAKB to be specifically reported to the Board of Commissioners. [GRI 102-34] [SUSBA 1.4.1.7]
Furthermore, Board of Directors is responsible for approving Sustainability Policy and Sustainable Finance Policy, as well as ensuring the optimal implementation of the sustainability strategy. Board of Directors will periodically receive and evaluate KKUB portfolio reports, portfolio based on the Green Social Sustainability Impact Products & Services (GSSIPS) framework reports, and sustainable risk management reports based on business sectors including Indonesian Green Taxonomy report. [GRI 102-20; 102-29; 102-34] [SUSBA 1.4.1.1; 1.4.1.2; 1.4.1.3; 1.4.1.5; 1.4.1.6;
1.4.2.1]
Conduct sustainable business activities that results in
continuous and integrated growth
MISSION for Sustainable Finance
[POJK51-C.1]
To be the leading ASEAN company that embraces the harmony of economic, social, and environmental aspects
VISION for Sustainable Finance:
[SUSBA 1.1.1.1] [POJK 51-C.1]