Jakarta-The Financial Services Authority and WWF-Indonesia initiated a sustainable finance pilot project that began with a workshop entitled "First Steps to Implement Sustainable Finance". The workshop was attended by directors and senior planning, risk and business staff from ten participating banks and other non-bank financial services institutions (FSIs) at Hotel Borobudur. This project initiative was developed in response to the Sustainable Finance Roadmap policy which requires financial services institutions in Indonesia to begin the process of integrating environmental, social and governance (ESG) aspects voluntarily in the initial period of the 2014-2019 roadmap.

This joint pilot project seeks to support the preparation of competencies of financial services institutions regarding the objectives of the sustainable finance program in Indonesia in order to increase the portion of financing for environmentally friendly sectors and business activities carried out in a sustainable manner and improve the organization's ability to manage environmental, social and corporate governance risks better.

"Initially there will be 3 banks piloted, the hope is that this pilot project can realize the concrete role of Financial Institutions in integrating environmental, social and governance elements in their business decisions, and support the government's commitment to reduce greenhouse gas emissions from various priority sectors." Explained Mulya Effendi Siregar, Deputy Commissioner for Banking Supervision I, Financial Services Authority.

"In addition, a guidebook entitled "Integration of Environment, Social and Governance: A Guide to Start Implementation" which can be utilized voluntarily by Financial Services Institutions, especially banks, as a preparatory stage for the implementation of sustainable finance in 2020," added Mulya.

"The most fundamental thing for WWF Indonesia in encouraging the integration of sustainability principles in banking and financial services practices is that we have entered an era where every aspect of human activity generates significant externalities on the sustainability of biodiversity, saving natural resources and climate change". Added, Efransjah, CEO of WWF Indonesia.

"WWF together with OJK will assist the banks in this pilot project to start implementing sustainable finance systematically. The project will run for 1.5 years effective from January 2016", added, Rizkiasari Yudawinata, Responsible Investment Policy Senior Officer, WWF Indonesia.

The most fundamental point in encouraging the integration of sustainability principles in banking and financial services practices is that we have entered an era where every aspect of human activity generates significant externalities to the sustainability of biodiversity, the saving of natural resources and climate change.

The active role of financial services institutions, OJK and WWF Indonesia is expected to encourage the ESG integration process to run gradually until finally the practice of financial services institutions in Indonesia can achieve the best performance standards for ESG aspects.

It is time for regulators, financial services institutions, and civil society organizations to work together to make a positive contribution to sustainable and low-emission economic development.

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For more information, please contact:
Rizkiasari Yudawinata
Responsible Investment Policy Senior Officer
Market Transformation Initiative - WWF-Indonesia
Email: Rjoedawinata@wwf.or.id, Mobile: +62811 234 4343.