Winners of the Sustainable Finance Award at the 2016 International Sustainable Finance Forum held at the Westin Resort in Nusa Dua, Bali, on Thursday (01/12). (JG Photo/Sheany)

Sustainable Finance Award: New Award for Environmentally Friendly Institutions

BY :SHEANY

DECEMBER 02, 2016

Nusa Dua, Bali. State-owned Bank Rakyat Indonesia, Bank Negara Indonesia Syariah, Adira Dinamika Insurance and pawnbroker Pegadaian all receive a Sustainable Finance Award — which recognized their effort to minimize social and environmental risks in their operations — at the 2016 International Sustainable Finance Forum in Nusa Dua, Bali, on Thursday (01/12).

The Sustainable Finance Award (SFA) is a biannual event introduced for the first time this year by the Financial Services Authority, or OJK — Indonesia's financial service regulator, to award companies and institutions that have been paying close attention to the social and environmental risks of their businesses.

"We want to promote sustainable financial practices by handing out this award," SFA judge Ismid Hadad said in a press conference.

The awards are handed out to institutions in the banking sector, capital market and non-bank financial industry.

Criteria taken into account by the judges include a long-term, sustainable performance, strategy and corporate responsibility program, regular sustainability report, corporate governance, innovation and leadership support.

Lately, Indonesia has seen a lot of positive development on how financial institutions address multi-faceted social and environmental challenges.

Bank Rakyat Indonesia, the SFA winner in the banking sector and the "best of the best" category, has been implementing sustainable finance practices both in its businesses and operational strategy.

The bank reportedly conducts meticulous screenings for loans and chooses only environmentally-friendly customers.

"Palm oil plantations receive loans only if they have RSPO [Roundtable on Sustainable Palm Oil] certificates," BRI credit risk director Susy Liestiowaty said.

In the banking sector, the SFA winners are Bank Rakyat Indonesia, Bank Jabar Banten and Bank Negara Indonesia (BNI) Syariah.

In the capital market sector, the winners are National Gas Company (publicly listed company winner) and Mandiri Sekuritas (securities company winner).

In the non-bank financial industry, the awards are won by Adira Dinamika Insurance (insurance company winner) and Pegadaian (other financial services winner).

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