From ambition to action, Bank DBS Indonesia records Rp6.1 trillion in transition financing and other achievements in 2023 Sustainability Report
Indonesia, 14 May 2024 - Bank DBS Indonesia released its 2023 Sustainability Report entitled "Building A Sustainable Advantage" as a manifestation of its commitment to promoting harmony between economic, social, and environmental aspects in its business operations. This is also in line with Financial Services Authority (OJK) Regulation Number 51/POJK.03/2017 concerning the Implementation of Sustainable Finance.
At a time when Indonesia shows impressive economic resilience, Bank DBS Indonesia understands its responsibility as a bank that goes beyond financial achievement. Hence, sustainability reporting is important to demonstrate transparency, accountability, and commitment to the Environmental, Social, and Governance (ESG) principles that guide its operations.
The following are five points that highlight Bank DBS Indonesia's concrete steps in 2023 to build a better future in the spirit of becoming "The Best Bank for a Better World":
1. Disbursed Rp6.1 trillion to support green transition of various companies in line with RPJMN 2020-2024
Throughout 2023, Bank DBS Indonesia disbursed Rp6.1 trillion to fund various green and sustainable projects carried out by companies in various sectors, such as automotive, food and agriculture, oil and gas, energy, and others. This was a tangible manifestation of Bank DBS Indonesia's commitment to
Regulation of the President of the Republic of Indonesia Number 18 of 2020 on National Medium-Term Development Plan 2020-2024
. More than 30 percent of the funds were allocated for renewable energy projects and more than 40 percent for the construction of green buildings that meet sustainability standards. This is in line with the first sustainability pillar, Responsible Banking. Under this pillar, Bank DBS Indonesia plays a role to support corporate customers to transition to a low-carbon business model, integrate sustainability into financing solutions, serves as advisor, and shares insights on risk mitigation and climate adaptation strategies to jointly achieve the net zero target.
Moreover, Bank DBS Indonesia implemented a robust risk management process by enhancing its ESG Risk Assessment. Bank DBS Indonesia also continuously improves its knowledge and skills to understand customers' transition needs. With these measures, Bank DBS Indonesia becomes a responsible financial partner and provides comprehensive solutions to challenges and climate change.
2. Built an inclusive financial ecosystem with customers to achieve SGD91.4 million in ESG Mutual Funds and SGD95.6 million in Green Bonds
Still under the sustainability pillar Responsible Banking, in addition to corporate customers, Bank DBS Indonesia also continues to provide ESG-oriented banking solutions for its retail customers. One of them is the LiveBetter feature which has attracted more than 59,000 customers and more than Rp43 billion in green investments in just six months since its launch in July 2023. This achievement underlined a growing awareness among customers of the importance of sustainable lifestyles.
Additionally, Bank DBS Indonesia recorded more than 5,400 new customers of the Green Savings programme with a balance of Rp134.82 billion. ESG-based investment products also successfully attracted investor interest, as indicated by the total placement of SGD91.4 million (equivalent to more than Rp1 trillion) in ESG Mutual Funds and SGD95.6 million (equivalent to Rp 1.1 trillion) in Green Bonds.
To accelerate financial inclusion in Indonesia, Bank DBS Indonesia also supports low-income retail customers in meeting their needs through Ecosystem Lending partnerships with various partners, with an outstanding loan balance of IDR 3,354 billion as of December 2023.
3. Supported Net Zero Emissions 2060 by reducing energy consumption by 62 percent
IQAir in 2023
data shows that Indonesia is currently ranked as the 17th most polluted country in the world. Support from various parties in various aspects is needed to improve the ranking. To that end, Bank DBS Indonesia has taken various concrete actions that have succeeded in reducing carbon emissions by 322 metric tonnes in one year, from 4,998 tonnes in 2022 to 4,676 tonnes in 2023. Similarly, energy consumption was cut by 62 percent, while renewable energy production increased from 202.65 MWh to 262.46 MWh with the addition of solar panels. In addition, 7 percent of Bank DBS Indonesia's branch buildings have obtained "Green Building" certifications.
Meanwhile, to ensure employee welfare, Bank DBS Indonesia established the Employee Experience Council. To develop and regenerate female leaders, it has the Women Leadership Programme. Employees are also equipped with sustainability knowledge through the DBS Sustainability Learning Campus. As a result, Bank DBS Indonesia has achieved a record employee engagement rate of 94 percent with an increasing number of contributions to voluntary activities.
All of these efforts are part of Bank DBS Indonesia's second sustainability pillar, Responsible Business Practice, which focuses on the bank's efforts in conducting business operations that pay attention to ESG aspects by using resources efficiently and organising programmes to promote diversity and inclusiveness.
4. Promoted food security and supported businesses with social impact, far beyond the banking sphere
In addition to serving individual and corporate customers, DBS Bank Indonesia also completes its services with a wider range of facilities, financing, and initiatives. One example is providing grants totaling SGD3.7 million for 24 small and medium enterprises (SMEs) and social enterprises from six countries in Asia, including 4 SMEs from Indonesia, through the DBS Foundation Business for Impact Grant Award. Bank DBS Indonesia also allocated Rp890 billion for micro and small enterprises and non-micro and small enterprises to meet their need for working capital.
Bank DBS Indonesia also cares about education and food security. In the education sector, the bank has the DBS Berpijar programme. In 2023, the programme empowered more than 1,200 students by providing them with future-ready skills they need in the world of work. The bank also held DBS Foundation Coding Camp 2023, which provided scholarship for online programming training for Back-End Developers and DevOps Engineers. The programme has been joined in by 52,000 participants, highlighting Bank DBS Indonesia's commitment to developing the potentials of Indonesia's youth. Meanwhile, related to food security issues, Bank DBS Indonesia through the Towards Zero Food Waste or #MakanTanpaSisa movement has prevented 554,822 kg of food from ending up in landfills, up 971 percent compared to the previous year.
In the long term, DBS Group is committed to providing up to SGD1 billion in financing over the next 10 years in all countries where it operates, including Indonesia. The funds will be utilised to improve the lives of the underprivileged and build a more inclusive society. These efforts embody the third sustainability pillar, Impact Beyond Banking.
5. Engaged more than 13,000 employees in volunteer activities, People of Purpose
People of Purpose (PoP) is Bank DBS Indonesia's employee volunteer movement that is aligned with the bank's values. The activities cover a wide range of issues and come in many forms, such as providing financial literacy education for communities, planting tropical forest trees, and donating food to communities in need. These activities successfully made a positive impact on more than 25,000 recipients. As a result, Bank DBS Indonesia received the "Best Companies to Work for in Asia" award from HR Asia.
President Director of PT Bank DBS Indonesia
Lim Chu Chong
emphasized Bank DBS Indonesia's commitment to a sustainable future and efforts to expand its positive impact. "We recognise that growth is not the end goal, but rather a challenge to continuously innovate to make positive change more equitable and sustainable in society. Through the concrete steps recorded in our Sustainability Report, Bank DBS Indonesia hopes that it can serve as a reference for similar industry players to carry out responsible and sustainable business practices," said
Lim Chu Chong
.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named
“World’s Best Bank”
by Global Finance,
“World’s Best Bank”
by Euromoney and
“Global Bank of the Year”
by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named
“World’s Best Digital Bank
” by Euromoney and the world’s “
Most Innovative in Digital Banking”
by The Banker. In addition, DBS has been accorded the
“Safest Bank in Asia
“ award by Global Finance for 15 consecutive years from 2009 to 2023. DBS Indonesia is ranked second in the top as
World’s Best Bank in Indonesia
for three consecutive years from 2020 to 2022.
Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices and 4 Functional Offices and 3,011 active employees in 15 Major Cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services in the corporate, SME and consumer banking segments that focuses on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees and the community towards a sustainable future.
PT Bank DBS Indonesia
is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit
www.dbs.com
.
DBS Bank Ltd | 12 Marina Boulevard, DBS Asia Central @ Marina Bay Financial Centre Tower 3,
Singapore 018982 | Co. Reg. No. 196800306E
Tel: 65.6878 8888 | www.dbs.com
