Bank Mandiri Strengthens Sustainability Commitment with Global ESG Standards

JAKARTA, RAKYAT NEWS – Bank Mandiri has reiterated its dedication to sustainable practices by consistently implementing prudent credit policies that align with global environmental, social, and governance (ESG) standards. These efforts ensure that every financing decision supports responsible business practices while adhering to sustainability principles.

Senior Vice President and ESG Group Head, Citra Amelya Pane, stated that Bank Mandiri has incorporated ESG aspects into its credit approval processes across 12 key sectors. These include agriculture, construction, energy, fast-moving consumer goods (FMCG), metal mining, coal, shipbuilding, healthcare, pulp and paper, telecommunications, transportation, and oil and gas.

In the palm oil sector, for instance, the bank collaborates with companies committed to sustainable practices, adhering to “No Deforestation, No Peatland Expansion, and No Exploitation” (NDPE) principles. Additionally, they prioritize firms certified by the Indonesian Sustainable Palm Oil (ISPO) and the Roundtable on Sustainable Palm Oil (RSPO) standards to avoid financing projects linked to environmental damage, deforestation, or labor exploitation.

Similarly, in the paper and packaging sector, Bank Mandiri provides financial support to companies with verifiable timber legality certificates, including those under the Forest Stewardship Council (FSC) and the Timber Legality Verification System (SVLK). These measures promote responsible forest management and the preservation of ecosystems.

Citra elaborated on the bank’s robust ESG framework, highlighting the implementation of the Environmental and Social Compliance Checklist (ESCC), derived from eight global performance standards. This checklist assesses compliance in areas such as biodiversity protection, land acquisition practices, and adherence to human rights, ensuring sustainable operations across their wholesale debtors.