MSF 2023 Title, Bank Mandiri Strengthens ESG Implementation Commitment Commitment

JAKARTA - PT Bank Mandiri (Persero) Tbk (BMRI) continues to strengthen its commitment to encouraging the implementation of Environmental, Social and Governance (ESG) principles in order to realize sustainability in economic development. This time, Bank Mandiri through the Mandiri Institute released the latest research and research results entitled Sustainable Acts: Why Now, What's Next?

To socialize it, Bank Mandiri also held the Mandiri Sustainability Forum (MSF) 2023 event attended by decision makers from regulators, corporations, associations, international institutions, customers and related stakeholders, in a hybrid manner.

Bank Mandiri President Director Darmawan Junaidi revealed that this research is expected to be a reference related to the picture of the implementation of ESG in Indonesia as well as inviting all parties to intensify real action for a sustainable economy.

Darmawan said that because this research was carried out comprehensively by involving various stakeholders ranging from listed and non-listed, investors, to fund managers.

"Our MSF event is held for the second time because it has become a proper discussion for business people, the government, and other business actors regarding the potential and challenges of Environmental, Social and Governance (ESG) in the future, both at the global and national levels, of course in the context of supporting the national agenda of achieving NZE 2060," said Darmawan when opening MSF 2023, Thursday, December 7.

Bank Mandiri Chief Economist Andry Asmoro explained that investment related to ESG has now been perceived as the main factor in business sustainability, both now and in the future.

According to Andry, this is reflected in the results of research showing that the data on the signing of investment principles is responsible or the Principles for Responsible Investment (PRI) has increased significantly.

As of November 2023, there were 5,374 signatures of investment principles in charge. In addition, the issuance of global debt securities related to ESG reached 1.5 trillion US dollars in 2022, an increase almost 15 times compared to 2015.

Andry added that the results of the research also provide a new perspective on business views, investors, and fund managers of ESG which can be an important input for future improvements.

"One of them, the results of the Mandiri Institute's research found a number of challenges faced in implementing ESG, especially in the financial market," he explained.

Andry said that there is still a lack of differentiation of ESG products and funding styles. This happens, due to the lack of awareness regarding ESG, including that there are still many who do not believe that ESG is a priority.

Referring to the survey results, 71 percent of open companies were found, believing that business practices with ESG principles would be a priority in the future. However, only 57 percent are only aware of the Nationally Determined Contributions (NDC) target or the reduction in greenhouse gas (GHG) emissions until 2030.

Untungnya, hampir seluruh responden telah mempertimbangkan untuk melakukan praktik bisnis ESG ke depannya. Artinya, potensi bisnis berkelanjutan masih sangat terbuka dan Bank Mandiri berkomitmen kuat untuk mengoptimaliskan potensi tersebut, tambah Andry.

Andry said this report emphasized that regulators and policy makers should be more active in communicating the standardization of reporting on the implementation of ESG in the country.

"Because continuous reports are very important not only for companies but also for investors, as well as a reference for comparison of sustainable performance in all companies in various sectors," he said.