To support the implementation of the Climate Risk Management and Scenario Analysis (CRMS) guidance, the Indonesian Financial Services Authority (OJK), in collaboration with WWF-Indonesia, held a three-day Climate Target Setting (CTS) training from April 28 to 30, 2025.

The training, attended by 181 participants from 94 of Indonesia’s 105 banks, marked the third session in the ongoing Climate Transition Planning capacity-building series. Previous sessions, held in February and March 2024, focused on calculating greenhouse gas (GHG) emissions across Scopes 1-3, including financed emissions (Scope 3 Category 15).

Supported by the HSBC Climate Solutions Partnership, WWF’s Greening Financial Regulation Initiative (GFRi), UNEP FI, and Indonesia Sustainable Finance Initiative (IKBI), the training introduced methodologies for setting climate targets aligned with the Paris Agreement. It also covered selecting credible scenarios and applying available target-setting tools.

Experts from WWF-Indonesia, WWF GFRi, and WWF Sweden led the sessions, sharing best practices, key steps, the SBTi tools, and the CDP-WWF Temperature Scoring Methodology. Additionally, contributions came from UNEP FI, the Science Based Targets initiative (SBTi), and practitioners from HSBC, SCBX, and Bank Rakyat Indonesia (BRI)—the first Indonesian bank to receive SBTi target validation.

Aligned with the OJK’s 2024 directive for banks to conduct climate stress testing using scenarios from the NGFS, IEA, and IPCC, the CTS session helped banks define credible emissions reduction pathways and integrate them into their business strategies and transition plans.

During the event, WWF presented a study to OJK developed in collaboration with the Climate Bonds Initiative, titled “Financing Decarbonisation in the Commercial and Light Industry Supply Chain.” The report’s key findings will inform an upcoming training session focused on developing Climate Transition Plans. Both the capacity-building initiative and the study were developed as part of the Climate Solutions Partnership.

Looking Ahead

As Indonesia moves toward adopting the IFRS S2 Climate-related Disclosures standard by 2027, banks are expected to strengthen their capacity for climate governance, risk management, and target setting. IFRS S2 mandates entities to disclose their climate-related strategy, processes, and targets, ensuring alignment with international climate goals such as the Paris Agreement.

To support this transition, OJK and WWF-Indonesia will continue the training series with a dedicated session on Climate Transition Planning.

About the Climate Solutions Partnership
The Climate Solutions Partnership is a five-year, USD 100 million philanthropic program that brings together a global network of local partners to: (i) scale up innovative nature-based solutions, and (ii) support the transition of the energy sector in Asia toward renewable energy.

By combining resources, knowledge, and expertise, the partnership seeks to accelerate commercially viable climate solutions and deliver measurable impact.

The consortium—comprising WWF, HSBC, and worldesources institute—works collaboratively to identify and support high-potential initiatives. WWF-Indonesia plays a key role in identifying opportunities to mobilize finance and strengthen enabling conditions that improve access to funding for climate transitions.

For more information, please contact:

Rizkia Sari Yudawinata, Sustainable Finance Advisor, WWF-Indonesia | Email at rjoedawinata@wwf.id

Aurellia Puteri Arfita, Sustainable Finance Analyst, WWF-Indonesia | Email at aarfita@wwf.id