Jakarta, 26 September 2024 – Bank Mandiri is taking a firm and innovative approach to accelerate Indonesia’s green transition by leveraging digital technology and strategic partnerships to empower both individual and industrial customers in their sustainability journeys. At the 2024 Green Initiative Conference initiated by Kumparan, Alexandra Askandar, Vice President Director of Bank Mandiri, emphasized the bank’s unique role in driving sustainable transformation through digital innovation. As Indonesia’s largest wholesale bank, Bank Mandiri remains committed to becoming “Indonesia’s Sustainability Champion for a Better Future,” aiming for Net Zero Emissions (NZE) in operations by 2030 and in financing by 2060 or sooner.
Through digital innovation, Bank Mandiri is taking a different approach in the banking industry by utilizing its digital platform capabilities to make green financing more accessible and practical while promoting green financial literacy among the public. For example, through the Livin’ SuperApp, Bank Mandiri will introduce a dedicated segment to help customers adopt a more sustainable lifestyle. This initiative not only raises environmental awareness but also encourages a shift toward more responsible consumer behavior by providing personal insights into their contributions to sustainability issues.
Additionally, Bank Mandiri continues to provide easier access to green financial products through the Livin’ SuperApp, such as Green Mutual Funds, Green Mortgages, and electric vehicle financing. This step offers consumers sustainable financial instruments as part of their financial decisions, contributing to the support of the green economy transition.
Alexandra Askandar, Vice President Director of Bank Mandiri, stated, “Our focus goes beyond conventional banking services. We are committed to providing innovative solutions that empower the community to be part of the green transition. Through various communication channels to enhance customer literacy and understanding of green finance, we aim to bridge customer awareness and interest with tangible actions by providing access to the green financial products we offer.”
Bank Mandiri is also taking significant steps to address climate risks directly. The company has implemented advanced approaches such as the Partnership for Carbon Accounting Financials (PCAF) methodology to measure Scope 3 emissions from its financing portfolio, which now covers 44% of total loans. Additionally, Bank Mandiri’s piloting of the Climate Risk Stress Test (CRST) allows them to assess physical and transition risks within their portfolio, thereby strengthening the company’s climate resilience.
Alexandra added, “Addressing climate risk is not just about compliance—it’s about ensuring the sustainability of both our business and the broader economy. By integrating these methodologies, we can make decisions that support both our customers and the environment.”
Bank Mandiri’s visionary approach is also demonstrated through the establishment of the Global Climate Tech Fund (GCTF), launched in collaboration with Australian company Investible, through Mandiri Capital Indonesia (MCI). Up to 30% of this fund is allocated to supporting Indonesia’s climate tech ecosystem. This initiative positions Bank Mandiri as a key player in driving local innovation and strengthening the green tech movement in the region.
Beyond digital innovation and climate tech, Bank Mandiri is also addressing the structural challenges of Indonesia’s green transition, particularly given the country’s current reliance on fossil fuels and the high investment costs for green projects. Bank Mandiri continues to provide green financing incentives and is actively developing policy frameworks to support the implementation of a carbon tax, reinforcing its role as a key supporter in Indonesia’s transition to a low-carbon economy.
