Bank Mandiri Affirms Sustainable Economic Commitment To COP 29

Bank Mandiri expressed its commitment to supporting the global climate change agenda, through innovation in the financial sector, especially sustainable financing.

In the 29th UN Climate Change Conference (COP) in Baku, Azerbaijan at a session titled CEO Climate Talks: Unlocking Innovative Climate Financing" at the Indonesian Pavilion, Bank Mandiri President Director Darmawan Junaidi said Indonesia's position in maintaining carbon balance was crucial. According to him, the role of achieving this vision can be maximized through the collaboration of various stakeholders and the application of innovative financing strategies.

"Bank Mandiri is committed to leading in sustainable financing innovations, utilizing Indonesia's natural resources as a strategic asset in global efforts to maintain climate stability," Darmawan said in a statement to the media, Tuesday, November 12.

Darmawan further explained, referring to data from the Food and Agriculture Organization (FAO) of the United Nations, Indonesia has three important factors related to this position. Among other things, owning the world's largest peatlands, being the country with the most biodiversity, and having the third largest tropical forest in the world.

"Indonesia can lead the climate change agenda if it takes advantage of the potential for natural based solution (NBS)," he added.

In his presentation, Darmawan assessed the importance of improvement in three main aspects to form a sustainable ecosystem in Indonesia. Among other things, limited knowledge related to sustainable business practices, access to technology that is evenly distributed throughout the industry, and financing gaps to increase the scale of sustainable projects.

On the other hand, Bank Mandiri also has two main focuses in the distribution of sustainable financing. First, carrying out the role of ESG Advisor for customers in the transition to a low-carbon economy. Second, providing financing for various climate-based projects.

Our big dream is to become a Sustainability Champion, through impact-driven business practices, gain competitive advantage in terms of sustainability, adopt global best practices, and create a tough business model against climate change, with the aim of supporting NZE Indonesia's goals by 2060 or sooner," said Darmawan.

Darmawan said Bank Mandiri had realized sustainable financing that supported efforts to reduce emissions in various priority sectors in the Enhanced Nationally Determined Contributions (ENDC).

In September 2024, Bank Mandiri's sustainable portfolio has reached IDR 285 trillion or grew by 12.8 percent on an annual basis. This growth was contributed by a social portfolio of IDR 143 trillion or grew by 9.4 percent and a green portfolio of IDR 142 trillion or grew by 16.4 percent. This makes Bank Mandiri a Green Portfolio Market leader with a market share of more than 35 percent.

We invite stakeholders, partners, and the global community to work with us, as your preferred financial partners. Thus, we can increase positive impacts, accelerate emission reduction, and support the future that prioritizes economic growth and maintain environmental balance. This confirms the importance of Indonesia's role in Global Carbon Balance," concluded Darmawan.