ASEAN Corporate Governance Score Card
| Material Sustainability-related information should be specified |
|||
| B.1.1 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company identify/report ESG topics that are material to the organizations strategy? | ||
|---|---|---|---|
| Company Practices 2023-2024 |
The Company has identify/report ESG topics material to the organizations strategy. The material topics, as determined by the Company, are matters that have significant impact on stakeholder decisions. In 2023, the Company reassessed the relevant material topics through a materiality analysis process involving stakeholders, such as investor concerns. This approach serves as the Company's method to identify the actual and potential, negative and positive impacts of the Company on the economy, environment, and society, including impacts on human rights, across all Company activities and relationships. Based on the analysis results, there are 24 sustainability issues deemed material to be included in this sustainability report. Based on the significance level to stakeholders and the economic, social, and environmental impacts, the 24 sustainability issues are then prioritized in a materiality matrix. The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.1.2 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company identify climate change as an issue? | ||
| Company Practices 2023-2024 |
The Company has identified climate change as an issue. Climate change can have a significant impact on the banking sector. One of impacts is the increased risk of debt repayment failure by debtors whose business sectors are directly affected by climate change such as agriculture, forestry and tourism. To that end, the company must determine certain conditions related to the environment before distributing credit so as not to provide funds to developers who will use them for projects or activities that are detrimental to the environment. This is essential for the company to avoid risks related to financing projects or activities that hurt the environment. The company has carried out mapping of risks and opportunities caused by climate change in accordance with the Recommendations of the Task Force on Climate-related Financial Disclosures. The company has also identified the financial impacts resulting from the risks and opportunities of climate change. The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.1.3 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company adopt an internationally recognized reporting framework or standard for sustainability (i.e. GRI, Integrated Reporting, SASB, IFRS Sustainability Disclosure Standards)? | ||
| Company Practices 2023-2024 |
The Company adopted Internationally recognized reporting framework or standart for sustainability. The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| If a company publicly sets a sustainability-related goal or target, the disclosure framework should provide that reliable metrics are regularly disclosed in an easily accessible form | |||
| B.1.4 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Do shareholders have the opportunity, evidenced by an agenda item, to approve remuneration (fees, allowances, benefit-in-kind and other emoluments) or any increases in remuneration for the non-executive directors/commissioners? | ||
| Company Practices 2023-2024 |
Shareholders have the same opportunity to approve remuneration (fees, allowances, benefit-in-kind and other emoluments), including agenda items related to remuneration for the Company's directors and board of commissioners. |
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.1.5 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company provide non-controlling shareholders a right to nominate candidates for board of directors/commissioners? | ||
| Company Practices 2023-2024 |
Shareholders have the opportunity, as evidenced by agenda items, to nominate candidates for board of directors/commissioners. This can be seen in the Announcement for the Annual General Meeting of Shareholders of PT Bank Tabungan Negara (Persero) Tbk on January 29 2024, Shareholders may submit proposals for the agenda of the Meeting that can propose the agenda of Meeting are as follows 1 (one) shareholder or more that represents 1/20th (one – twentieth) or more of the total number of shares issued by the Company with valid voting rights. One of the agenda that Shareholders can propose is nominated candidate for Board of Directors/Commissioners to changes in the Composition of Company’s Management. This information is mentioned in: 1. Announcement Document for the Annual GMS FY 2023 - Page 2 2. PT Bank Tabungan Negara (Persro) Tbk, Annual Report FY 2023, Corporate Governance, Page 54. 3. PT Bank Tabungan Negara (Persro) Tbk, Annual Report FY 2023, Shareholders’ Rights, Page 417-418. |
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.2.1 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company engage internal stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company? | ||
|---|---|---|---|
| Company Practices 2023-2024 |
'The company has engaged internal stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company. The involvement of key stakeholders in discussing critical issues faced by the Company is carried out after undergoing an identification process. This process is conducted through stakeholder mapping methodology. Through this approach, the Company can accurately categorize stakeholders who have significant connections with the company, including the forms of relationships established, topics to be addressed, and appropriate communication strategies. This step is aimed at achieving the targets set by the Company through effective communication efforts. The information is mentioned in:
The information is mentioned in Company website : Header : Investor Relationship Menu : ESG Part : Commitment Sub part : Management Sustainability Commitment Fill content : Stakeholder Engagement |
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.2.2 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company engage external stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company? | ||
| Company Practices 2023-2024 |
The company has engaged external stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company. The information is mentioned in:
The information is mentioned in Company website : Header : Investor Relationship Menu : ESG Part : Commitment Sub part : Management Sustainability Commitment Fill content : Stakeholder Engagement |
||
| Source | BTN Sustainability Report FY 2023 | ||
| Boards should assess whether the company's capital structure is compatible with its strategic goals and its associated risk appetite to ensure it is resilient to different scenarios |
|||
| B.3.1 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company disclose that the board reviews on an annual basis that the company's capital and debt structure is compatible with its strategic goals and its associated risk appetite? | ||
|---|---|---|---|
| Company Practices 2023-2024 |
The company has disclosed that the board reviews on an annual basis that the company's capital and debt structure is compatible with its strategic goals and its associated risk appetite. In formulating the Capital Plan as a part of Bank BTN's Business Plan, the Board of Directors has received the approval from the Board of Commissioners, Bank BTN regularly plans and reviews capital requirements together with the data of the analysis. In planning, Bank BTN always links financial goals and capital adequacy to risks so that Bank BTN's business is in line with the capital and liquidity requirements. The information is mentioned in:
Currently, the Bank had a Risk Appetite Statement (RAS) which is a qualitative statement as well as a quantitative measure of the Bank's main risks. Disclosure of RAS was performed in writing and well documented by the Risk Management Work Unit. Determination of RAS limits is carried out by the Board of Commissioners and Directors. In determining RAS, economic, environmental and social sustainability has been taken into account which is then aligned to the preparation of the Company's Work Plan and Budget (RKAP), Risk Appetite, Risk Tolerance and Recovery Plan. The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| Does the company disclose a policy and practices that address : |
|||
| B.4.1 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | The existence and scope of the company's efforts to address customers' welfare? | ||
|---|---|---|---|
| Company Practices 2023-2024 |
The company discloses the existence and scope that address the company's efforts to address customers' welfare. The company has Special Policy No.KK.9-Z dated 31 August 2023 on Customer and Community Protection. The company protects customers and the public by providing clear and transparent information on the products and/or services offered, including the consequences and risks that will be received if customers and the public use or utilize the company's products and/or services. With this policy, customers and the public can be protected from financial losses and legal aspects in every use of the company's products and/or services To strengthen the implementation of prudential principles, the Company adopts the know your customer (KYC) and know your employee (KYE) approaches in managing operational risks in banking business activities. The KYC approach has evolved into customer due diligence (CDD), which includes identification, verification, and monitoring activities conducted by the Company to ensure that transactions comply with the profile of prospective customers, walk-in customers (WIC), or existing customers, in accordance with PBI No. 14/27/PBI/2012. To enhance employees' understanding of the implementation of prudential principles, the Company provides access to online training with CDD materials containing relevant case examples related to prudential principles The information is mentioned in: |
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.4.2 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Supplier/contractor selection procedures? | ||
| Company Practices 2023-2024 |
The company has disclosed a policy and practices that address supplier/contractor selection procedures. The company's procurement of goods and/or services is carried out in an integrated manner using an electronic system (e-Procurement). The use of this system is part of the company's efforts to reduce GHG emissions by saving paper in daily operations. The company always supports local and national economy through Special Policy Guidelines for the Implementation of Procurement of Goods and/or Services KK.9-H dated 30 June 2022 realized by implementing the principle of using domestic production while still complying with the provisions of the prevailing laws and regulations. The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.4.3 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | The company's efforts to ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? | ||
| Company Practices 2023-2024 |
The company has disclosed a policy and practices that address the company's efforts to ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development. In implementing ESG, the Portfolio Guideline is in accordance with Technical Instructions No. PT.8-H.3 dated 1 October 2023. PT.8-H.3 dated 1 October 2023. Issuance of Portfolio Guidance is one of the tools in implementing credit risk management used to control lending concentration risk. As part of efforts to implement effective credit risk management, the bank also needs to diversify in providing wholesale lending. This is done by providing wholesale lending to industrial sectors other than the property sector, considering the level of demand and supply of wholesale lending, wholesale credit risk, and ESG aspects in industrial sectors, as well as prudential principles and sound credit management. This is in accordance with regulatory provisions such as Financial Services Authority Regulation (POJK), Financial Services Authority Circular Letter (SEOJK), Sustainable Finance Roadmap in Indonesia, Indonesian Green Taxonomy Report, Law No. 16 of 2016 concerning the Ratification of the Paris Agreement, as well as the National Medium-Term Development Plan (RPJMN). The Company as a Financial Services Institution caring about the environment has adapted its loan granting policies to the Environmental, Social and Governance concept. In distributing loans, the Company pays special attention to environmental requirements in accordance with the precautionary principle. In this way, the Company can avoid mistakes in the form of providing loans to developers who can use it for projects or activities that have a negative impact on the environment. In order to ensure that the loans provided is not used for projects or activities that are detrimental to the environment, several implementation practices include providing environmental requirements that must be met, including the implementation of Environmental Impact Analysis. This requirement is very important to avoid errors in managing loan funds. Apart from that, the Company also considers it important to have competency development activities for developers or partners related to financing schemes and their potential impact on the environment Small and Medium Enterprises (SMEs). The Company carries out a Social and Environmental Risk Assessment process to assess credit risk from an environmental and social perspective and ensure that debtors, both new realization debtors and existing consumer debtors, do not have businesses that have the potential to damage the environment and cause social conflict. Apart from fulfilling environmental responsibilities through implementing regulations, the Company also strives to preserve the environment through conservation programs and activities. To support this program, the Company does not have operational offices located in conservation areas or those with protected biodiversity. To support sustainable procurement of goods and/or services and consider the ESG aspects, the company has implemented several requirements as follows:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.4.4 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | The company's efforts to interact with the communities in which they operate? | ||
| Company Practices 2023-2024 |
The company has disclosed a policy and practices that address the company's efforts to interact with the communities in which they operate. The company continues to strengthen its commitment to social and environmental responsibility through integration with the Sustainable Development Goals (SDGs) and the implementation of the Corporate Social Responsibility program. As a form of implementation of Regulation of Minister of SOE No. PER-1/MBU/03/2023 on Special Assignments and Social and Environmental Responsibility Programs for State-Owned Enterprises, the company has developed initiatives that focus on sustainable development goals and concern for the environment. The company has taken significant steps by affirming its commitment to managing impacts on people and communities, as well as society at large. The focus on this aspect shows the company's strong commitment to managing the impact of its business activities on the welfare and development of society. By establishing people and community as one of the components in the ESG Roadmap, the company seeks not only to create economic value, but also to make a positive contribution to social development and welfare of communities around the company. This endeavor is in line with global societal trends that increasingly underscore the importance of sustainability and corporate social responsibility in carrying out business operations. Corporate Social Responsibility Topic Through the CSR program, the company aims to bring a positive impact on human life and the environment. The company's CSRL program is directed at empowering communities, improving the quality of life, and maintaining the sustainability of the surrounding ecosystem. In the company's Work Plan and Budget, CSR is one of the important pillars that drives the company to innovate and develop together with society. Therefore, by orienting towards the ISO 26000 standard, the company has designed a series of concrete programs to support the creation of community welfare, while providing a positive impact for the company itself. With these steps in place, the company continues to realize its strategic role in supporting sustainable development and creating positive value for all stakeholders. The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.4.5 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | The company's anti-corruption programmes and procedures? | ||
| Company Practices 2023-2024 |
The company has disclosed a policy and practices that address The company's anti-corruption programmes and procedures. The Company emphasizes that any violation of anti-corruption and anti-fraud policies is a serious matter and must be dealt with firmly in accordance with applicable policies and regulations. Circular Letter of the Board of Directors No. 22/ DIR/IAD/2014 dated May 28, 2014, regarding the Standard Operating Procedure for Anti-Fraud Strategy, serves as a guide in implementing anti-corruption and anti-fraud strategies. The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.4.6 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | how creditors' rights are safeguarded? | ||
| Company Practices 2023-2024 |
The company has disclosed a policy and practices that address how creditors' rights are safeguarded. The Company has a policy regarding the fulfillment of creditors' rights which is used as a guideline in making loans to creditors. The aim of the policy in question is to ensure the fulfillment of rights and maintain creditors' trust in Public Companies.For 2023, there are 2 (two) Company creditors, namely bilateral loan creditors and bond creditors. The information is mentioned in:
|
||
| Source | Annual Report | ||
| B.4.7 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company have a separate report/section that discusses its efforts on environment/economy and social issues? | ||
| Company Practices 2023-2024 |
The Company has report/section that discusses effort on environment/economy and social issues. The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.5.1 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company provide contact details via the company's website or Annual Report which stakeholders (e.g. customers, suppliers, general public etc.) can use to voice their concerns and/or complaints for possible violation of their rights? | ||
|---|---|---|---|
| Company Practices 2023-2024 |
The company provides contact details via the company's website which stakeholders can use to voice their concerns and/or complaints for possible violation of their rights. The Company also builds supporting infrastructure in implementing WBS policy in which reporters can submit their reports through the following media:
The information is mentioned in:
The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.5.1 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company provide contact details via the company's website or Annual Report which stakeholders (e.g. customers, suppliers, general public etc.) can use to voice their concerns and/or complaints for possible violation of their rights? | ||
| Company Practices 2023-2024 |
The company provides contact details via the company's website which stakeholders can use to voice their concerns and/or complaints for possible violation of their rights. The Company also builds supporting infrastructure in implementing WBS policy in which reporters can submit their reports through the following media:
The information is mentioned in:
The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.6.1 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company explicitly disclose the policies and practices on health, safety and welfare for its employees? | ||
|---|---|---|---|
| Company Practices 2023-2024 |
The company explicitly discloses the policies and practices on health, safety and welfare for its employees. Definition of OHSMS, according to Regulation of Minister of Health Republic of Indonesia Minister of Health Regulation No. 48 of 2016 on Office Occupational Safety and Health Standards is "part of the overall office building management system in controlling risks related to work activities in order to create a safe, efficient and productive workplace. The implementation of OHSMS aims to enhance the effectiveness of occupational safety and health protection through a series of work procedures that are more planned, measurable, structured, and integrated, with the aim of preventing accidents or illnesses caused by work. The company implements OHSMS and special OHS policies that cover all employees (100%) and employees who carry out activities within the company's operational areas, in accordance with the Human Capital Management Division Work Unit database. In line with this, the preparation and installation of standard operating procedures (SOP) is an effort made by the company to ensure the health and safety of employees and interested parties in the company's operational areas, including providing training on healthy and safe work methods. The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.6.2 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company explicitly disclose the policies and practices on training and development programmes for its employees? | ||
| Company Practices 2023-2024 |
The company has disclosed the policies and practices on training and development programmes for its employees. Developing hard skill and soft skill competencies becomes part of the Human Capital cycle guidelines in managing Human Resources in accordance with Special Policy No. KK.3-A dated October 31, 2023 concerning the Human Capital Cycle. Every employee is obliged to develop their competencies so they can do their job well, and prepare themselves to be able to face change and/or occupy a higher position. Employee competency development is carried out through systematic learning and development programs to increase knowledge, skills and attitudes. The learning and development framework applies the concept of Analysis, Design, Development, Implementation and Evaluation (ADDIE) using a 10:20:70 learning model (10% formal learning, 20% learning from others and 70% learning from doing). The information is mentioned in:
|
||
| Source | Annual Report FY 2023 | ||
| B.6.3 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company have a reward/compensation policy that accounts for the performance of the company beyond short-term financial measures? | ||
| Company Practices 2023-2024 |
The company has a reward/compensation policy that accounts for the performance of the company beyond short-term financial measures. In order to improve the Company's performance in the long term so that the Bank can grow and develop well, since 2020 the Company's management has decided to provide Long Term Incentive (LTI) variable incentives/remuneration for employees at management level in the form of the provision of Shares which are given in 3 (three vestings), namely 1st vesting in 2020, 2nd vesting in 2021, and 3rd vesting in 2022, each vesting is carried out for a locked up period of 3 (three) years. In 2023, as a continuation of the previously implemented LTI program, a Long- Term Incentive policy had been issued, namely giving bonuses in the form of Company shares and carrying out a locked-up period for a maximum of 3 (three) years. The background to the provision of the Long Term Incentive (LTI) program and long-term bonuses to employees, especially at the managerial level, is as follows:
Employees receiving LTI are the holders of the key positions with strategic roles as the alignment of Corporate objectives, who also serve as the supervisor and controller of performance achieved by their respective Divisions/Regional Offices/Branch Offices. The information is mentioned in:
|
||
| Source | Annual Report FY 2023 | ||
| B.7.1 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company have a whistle blowing policy which includes procedures for complaints by employees and other stakeholders concerning alleged illegal and unethical behaviour and provide contact details via the company's website or annual report | ||
|---|---|---|---|
| Company Practices 2023-2024 |
The company has disclosed the whistle blowing policy which includes procedures for complaints by employees and other stakeholders concerning alleged illegal and unethical behaviour and provide contact details via the company's website or annual report. The Company's Violation Reporting System (WBS) policy was guided by the Minister of BUMN Regulation No.PER-2/ MBU/03/2023 dated March 3, 2023, concerning Guidelines for Governance and Significant Corporate Activities of State- Owned Enterprises and the OJK Regulation (POJK) No. 39/ POJK.03/2019 dated December 19, 2019 regarding the Implementation of Anti-Fraud Strategy for Commercial Banks. The Company also builds supporting infrastructure in implementing WBS policy in which reporters can submit their reports through the following media:
The information is mentioned in:
|
||
| Source | BTN Sustainability Report FY 2023 | ||
| B.7.2 | |||
| Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Does the company have a policy or procedures to protect an employee/person who reveals alleged illegal/unethical behaviour from retaliation? | ||
| Company Practices 2023-2024 |
The company has policy or procedures to protect an employee/person who reveals alleged illegal/unethical behaviour from retaliation. The Company is committed to protect to every whistleblower. Protection to the Whistleblower is provided to support the courage of the Whistleblower in reporting alleged violations and/or if there is retaliation from the Reported Person. For whistleblowers who submit WBS reports that are recognized for their accuracy and good faith, the Company can provide protection guarantees as follows :
The information is mentioned in:
|
||
| Source | Annual Report FY 2023 | ||
| B.1 | Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-looking material information that a reasonable investor would consider important in making an investment or voting decision | Company Practices 2023-2024 | Source |
|---|---|---|---|
| Material Sustainability-related information should be specified | |||
| B.1.1 | Does the company identify/report ESG topics that are material to the organizations strategy? |
The Company has identify/report ESG topics material to the organizations strategy.
The material topics, as determined by the Company, are matters that have significant impact on stakeholder decisions. In 2023, the Company reassessed the relevant material topics through a materiality analysis process involving stakeholders, such as investor concerns. This approach serves as the Company's method to identify the actual and potential, negative and positive impacts of the Company on the economy, environment, and society, including impacts on human rights, across all Company activities and relationships. Based on the analysis results, there are 24 sustainability issues deemed material to be included in this sustainability report. Based on the significance level to stakeholders and the economic, social, and environmental impacts, the 24 sustainability issues are then prioritized in a materiality matrix. The information is mentioned in:
|
BTN Sustainability Report FY 2023 |
| B.1.2 | Does the company identify climate change as an issue? |
The Company has identified climate change as an issue.
Climate change can have a significant impact on the banking sector. One of impacts is the increased risk of debt repayment failure by debtors whose business sectors are directly affected by climate change such as agriculture, forestry and tourism. To that end, the company must determine certain conditions related to the environment before distributing credit so as not to provide funds to developers who will use them for projects or activities that are detrimental to the environment. This is essential for the company to avoid risks related to financing projects or activities that hurt the environment. The company has carried out mapping of risks and opportunities caused by climate change in accordance with the Recommendations of the Task Force on Climate-related Financial Disclosures. The company has also identified the financial impacts resulting from the risks and opportunities of climate change. The information is mentioned in:
|
BTN Sustainability Report FY 2023 |
| B.1.3 | Does the company adopt an internationally recognized reporting framework or standard for sustainability (i.e. GRI, Integrated Reporting, SASB, IFRS Sustainability Disclosure Standards)? |
The Company adopted Internationally recognized reporting framework or standart for sustainability. The information is mentioned in:
|
|
| If a company publicly sets a sustainability-related goal or target, the disclosure framework should provide that reliable metrics are regularly disclosed in an easily accessible form | |||
| B.1.4 | Does the company disclose quantitative sustainability target? |
The Company has disclosed quantitative sustainability target.
BTN has 24 strategic initiatives in its 5-year ESG roadmap with 10 priority initiatives as follows:
The information is mentioned in:
BTN's ESG Framework, GHG emission management is included in the Climate Change and Ecosystems pillar. The company has set a minimum emission reduction target of 30% in its operational activities for the next five years. Efforts to fulfill this target are carried out with various initiatives, such as adopting solar panels as an energy source, using electric vehicles as much as 20% or at least 50 of the total company fleet, and other programs. Until the year 2023, the Company has operated 29 electric vehicles, consisting of 21 electric motorcycles and 8 electric cars. Additionally, the Company has installed 3 solar panels at its office. The information is mentioned in:
|
|
| B.1.5 | Does the company disclose sustainability-related performance progress in relation to its previously set targets? |
The Company has disclose sustainability related performance progres in relation to its previously set target. The Company has disclosed sustainability-related performance progress
Based on the table on Sustainability Report page 77, electrical energy use in 2023 decreased by 50% and fuel use also decreased by 12% compared to that in 2022. The Company has not yet conducted calculations regarding the reduction in energy required for the sold products and services. Energy usage during the reporting year is as follows: Electricity
BBM
The information is mentioned in:
|
BTN Sustainability Report FY 2023 |
| B.2 | "Corporate governance frameworks should allow for dialogue between a company, its shareholders and stakeholders to exchange views on sustainability matter" | Company Practices 2023-2024 | Source |
|---|---|---|---|
| B.2.1 | Does the company engage internal stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company? |
'The company has engaged internal stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company.
The involvement of key stakeholders in discussing critical issues faced by the Company is carried out after undergoing an identification process. This process is conducted through stakeholder mapping methodology. Through this approach, the Company can accurately categorize stakeholders who have significant connections with the company, including the forms of relationships established, topics to be addressed, and appropriate communication strategies. This step is aimed at achieving the targets set by the Company through effective communication efforts. The information is mentioned in:
The information is mentioned in Company website : Header : Investor Relationship Menu : ESG Part : Commitment Sub part : Management Sustainability Commitment Fill content : Stakeholder Engagement |
|
| B.2.2 | Does the company engage external stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company? |
The company has engaged external stakeholders to exchange views and gather feedback on sustainability matters that are material to the business of the company.
The information is mentioned in:
The information is mentioned in Company website : Header : Investor Relationship Menu : ESG Part : Commitment Sub part : Management Sustainability Commitment Fill content : Stakeholder Engagement |
BTN Sustainability Report FY 2023 |
| B.3 | "The corporate governance framework should ensure that boards adequately consider material sustainability risks and opportunities when fulfilling their key functions in reviewing, monitoring and guiding governance practices, disclosure, strategy, risk management and internal control systems, including with respect to climate-realted physical and transition risk." | Company Practices 2023-2024 | Source |
|---|---|---|---|
| Boards should assess whether the company's capital structure is compatible with its strategic goals and its associated risk appetite to ensure it is resilient to different scenarios | |||
| B.3.1 | Does the company disclose that the board reviews on an annual basis that the company's capital and debt structure is compatible with its strategic goals and its associated risk appetite? |
The company has disclosed that the board reviews on an annual basis that the company's capital and debt structure is compatible with its strategic goals and its associated risk appetite.
In formulating the Capital Plan as a part of Bank BTN's Business Plan, the Board of Directors has received the approval from the Board of Commissioners, Bank BTN regularly plans and reviews capital requirements together with the data of the analysis. In planning, Bank BTN always links financial goals and capital adequacy to risks so that Bank BTN's business is in line with the capital and liquidity requirements. The information is mentioned in:
Currently, the Bank had a Risk Appetite Statement (RAS) which is a qualitative statement as well as a quantitative measure of the Bank's main risks. Disclosure of RAS was performed in writing and well documented by the Risk Management Work Unit. Determination of RAS limits is carried out by the Board of Commissioners and Directors. In determining RAS, economic, environmental and social sustainability has been taken into account which is then aligned to the preparation of the Company's Work Plan and Budget (RKAP), Risk Appetite, Risk Tolerance and Recovery Plan. The information is mentioned in:
|
|
| B.4 | The corporate governance framework should recognise the rights of stakeholders established by law or through mutual agreements and encourage active co-operation between corporations and stakeholders in creating wealth, jobs, and the sustainality of financially sound enterprises | Company Practices 2023-2024 | Source |
|---|---|---|---|
| Does the company disclose a policy and practices that address : | |||
| B.4.1 | The existence and scope of the company's efforts to address customers' welfare? |
The company discloses the existence and scope that address the company's efforts to address customers' welfare.
The company has Special Policy No.KK.9-Z dated 31 August 2023 on Customer and Community Protection. The company protects customers and the public by providing clear and transparent information on the products and/or services offered, including the consequences and risks that will be received if customers and the public use or utilize the company's products and/or services. With this policy, customers and the public can be protected from financial losses and legal aspects in every use of the company's products and/or services To strengthen the implementation of prudential principles, the Company adopts the know your customer (KYC) and know your employee (KYE) approaches in managing operational risks in banking business activities. The KYC approach has evolved into customer due diligence (CDD), which includes identification, verification, and monitoring activities conducted by the Company to ensure that transactions comply with the profile of prospective customers, walk-in customers (WIC), or existing customers, in accordance with PBI No. 14/27/PBI/2012. To enhance employees' understanding of the implementation of prudential principles, the Company provides access to online training with CDD materials containing relevant case examples related to prudential principles The information is mentioned in: |
|
| B.4.2 | Supplier/contractor selection procedures? |
The company has disclosed a policy and practices that address supplier/contractor selection procedures.
The company's procurement of goods and/or services is carried out in an integrated manner using an electronic system (e-Procurement). The use of this system is part of the company's efforts to reduce GHG emissions by saving paper in daily operations. The company always supports local and national economy through Special Policy Guidelines for the Implementation of Procurement of Goods and/or Services KK.9-H dated 30 June 2022 realized by implementing the principle of using domestic production while still complying with the provisions of the prevailing laws and regulations. The information is mentioned in:
|
BTN Sustainability Report FY 2023 |
| B.4.3 | The company's efforts to ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? |
The company has disclosed a policy and practices that address the company's efforts to ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development.
In implementing ESG, the Portfolio Guideline is in accordance with Technical Instructions No. PT.8-H.3 dated 1 October 2023. PT.8-H.3 dated 1 October 2023. Issuance of Portfolio Guidance is one of the tools in implementing credit risk management used to control lending concentration risk. As part of efforts to implement effective credit risk management, the bank also needs to diversify in providing wholesale lending. This is done by providing wholesale lending to industrial sectors other than the property sector, considering the level of demand and supply of wholesale lending, wholesale credit risk, and ESG aspects in industrial sectors, as well as prudential principles and sound credit management. This is in accordance with regulatory provisions such as Financial Services Authority Regulation (POJK), Financial Services Authority Circular Letter (SEOJK), Sustainable Finance Roadmap in Indonesia, Indonesian Green Taxonomy Report, Law No. 16 of 2016 concerning the Ratification of the Paris Agreement, as well as the National Medium-Term Development Plan (RPJMN). The Company as a Financial Services Institution caring about the environment has adapted its loan granting policies to the Environmental, Social and Governance concept. In distributing loans, the Company pays special attention to environmental requirements in accordance with the precautionary principle. In this way, the Company can avoid mistakes in the form of providing loans to developers who can use it for projects or activities that have a negative impact on the environment. In order to ensure that the loans provided is not used for projects or activities that are detrimental to the environment, several implementation practices include providing environmental requirements that must be met, including the implementation of Environmental Impact Analysis. This requirement is very important to avoid errors in managing loan funds. Apart from that, the Company also considers it important to have competency development activities for developers or partners related to financing schemes and their potential impact on the environment Small and Medium Enterprises (SMEs). The Company carries out a Social and Environmental Risk Assessment process to assess credit risk from an environmental and social perspective and ensure that debtors, both new realization debtors and existing consumer debtors, do not have businesses that have the potential to damage the environment and cause social conflict. Apart from fulfilling environmental responsibilities through implementing regulations, the Company also strives to preserve the environment through conservation programs and activities. To support this program, the Company does not have operational offices located in conservation areas or those with protected biodiversity. To support sustainable procurement of goods and/or services and consider the ESG aspects, the company has implemented several requirements as follows:
|
|
| B.4.4 | The company's efforts to interact with the communities in which they operate? |
The company has disclosed a policy and practices that address the company's efforts to interact with the communities in which they operate.
The company continues to strengthen its commitment to social and environmental responsibility through integration with the Sustainable Development Goals (SDGs) and the implementation of the Corporate Social Responsibility program. As a form of implementation of Regulation of Minister of SOE No. PER-1/MBU/03/2023 on Special Assignments and Social and Environmental Responsibility Programs for State-Owned Enterprises, the company has developed initiatives that focus on sustainable development goals and concern for the environment. The company has taken significant steps by affirming its commitment to managing impacts on people and communities, as well as society at large. The focus on this aspect shows the company's strong commitment to managing the impact of its business activities on the welfare and development of society. By establishing people and community as one of the components in the ESG Roadmap, the company seeks not only to create economic value, but also to make a positive contribution to social development and welfare of communities around the company. This endeavor is in line with global societal trends that increasingly underscore the importance of sustainability and corporate social responsibility in carrying out business operations. Corporate Social Responsibility Topic Through the CSR program, the company aims to bring a positive impact on human life and the environment. The company's CSRL program is directed at empowering communities, improving the quality of life, and maintaining the sustainability of the surrounding ecosystem. In the company's Work Plan and Budget, CSR is one of the important pillars that drives the company to innovate and develop together with society. Therefore, by orienting towards the ISO 26000 standard, the company has designed a series of concrete programs to support the creation of community welfare, while providing a positive impact for the company itself. With these steps in place, the company continues to realize its strategic role in supporting sustainable development and creating positive value for all stakeholders. The information is mentioned in:
|
BTN Sustainability Report FY 2023 |
| B.4.5 | The company's anti-corruption programmes and procedures? |
The company has disclosed a policy and practices that address The company's anti-corruption programmes and procedures.
The Company emphasizes that any violation of anti-corruption and anti-fraud policies is a serious matter and must be dealt with firmly in accordance with applicable policies and regulations. Circular Letter of the Board of Directors No. 22/ DIR/IAD/2014 dated May 28, 2014, regarding the Standard Operating Procedure for Anti-Fraud Strategy, serves as a guide in implementing anti-corruption and anti-fraud strategies. The information is mentioned in:
|
BTN Sustainability Report FY 2023 |
| B.4.6 | how creditors' rights are safeguarded? |
The company has disclosed a policy and practices that address how creditors' rights are safeguarded.
The Company has a policy regarding the fulfillment of creditors' rights which is used as a guideline in making loans to creditors. The aim of the policy in question is to ensure the fulfillment of rights and maintain creditors' trust in Public Companies.For 2023, there are 2 (two) Company creditors, namely bilateral loan creditors and bond creditors. The information is mentioned in:
|
Annual Report |
| B.4.7 | Does the company have a separate report/section that discusses its efforts on environment/economy and social issues? |
The Company has report/section that discusses effort on environment/economy and social issues.
The information is mentioned in:
|
BTN Sustainability Report FY 2023 |
| B.5 | Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights | Company Practices 2023-2024 | Source |
|---|---|---|---|
| B.5.1 | Does the company provide contact details via the company's website or Annual Report which stakeholders (e.g. customers, suppliers, general public etc.) can use to voice their concerns and/or complaints for possible violation of their rights? |
The company provides contact details via the company's website which stakeholders can use to voice their concerns and/or complaints for possible violation of their rights.
The Company also builds supporting infrastructure in implementing WBS policy in which reporters can submit their reports through the following media:
The information is mentioned in:
The information is mentioned in:
|
BTN Sustainability Report FY 2023 |
| B.6 | Mechanisms for employee participation should be permitted to develop | Company Practices 2023-2024 | Source |
|---|---|---|---|
| B.6.1 | Does the company explicitly disclose the policies and practices on health, safety and welfare for its employees? |
The company explicitly discloses the policies and practices on health, safety and welfare for its employees.
Definition of OHSMS, according to Regulation of Minister of Health Republic of Indonesia Minister of Health Regulation No. 48 of 2016 on Office Occupational Safety and Health Standards is "part of the overall office building management system in controlling risks related to work activities in order to create a safe, efficient and productive workplace. The implementation of OHSMS aims to enhance the effectiveness of occupational safety and health protection through a series of work procedures that are more planned, measurable, structured, and integrated, with the aim of preventing accidents or illnesses caused by work. The company implements OHSMS and special OHS policies that cover all employees (100%) and employees who carry out activities within the company's operational areas, in accordance with the Human Capital Management Division Work Unit database. In line with this, the preparation and installation of standard operating procedures (SOP) is an effort made by the company to ensure the health and safety of employees and interested parties in the company's operational areas, including providing training on healthy and safe work methods. The information is mentioned in:
|
BBTN Sustainability Report FY 2023 |
| B.6.2 | Does the company explicitly disclose the policies and practices on training and development programmes for its employees? |
The company has disclosed the policies and practices on training and development programmes for its employees.
Developing hard skill and soft skill competencies becomes part of the Human Capital cycle guidelines in managing Human Resources in accordance with Special Policy No. KK.3-A dated October 31, 2023 concerning the Human Capital Cycle. Every employee is obliged to develop their competencies so they can do their job well, and prepare themselves to be able to face change and/or occupy a higher position. Employee competency development is carried out through systematic learning and development programs to increase knowledge, skills and attitudes. The learning and development framework applies the concept of Analysis, Design, Development, Implementation and Evaluation (ADDIE) using a 10:20:70 learning model (10% formal learning, 20% learning from others and 70% learning from doing). The information is mentioned in:
|
Annual Report FY 2023 |
| B.6.3 | Does the company have a reward/compensation policy that accounts for the performance of the company beyond short-term financial measures? |
The company has a reward/compensation policy that accounts for the performance of the company beyond short-term financial measures.
In order to improve the Company's performance in the long term so that the Bank can grow and develop well, since 2020 the Company's management has decided to provide Long Term Incentive (LTI) variable incentives/remuneration for employees at management level in the form of the provision of Shares which are given in 3 (three vestings), namely 1st vesting in 2020, 2nd vesting in 2021, and 3rd vesting in 2022, each vesting is carried out for a locked up period of 3 (three) years. In 2023, as a continuation of the previously implemented LTI program, a Long- Term Incentive policy had been issued, namely giving bonuses in the form of Company shares and carrying out a locked-up period for a maximum of 3 (three) years. The background to the provision of the Long Term Incentive (LTI) program and long-term bonuses to employees, especially at the managerial level, is as follows:
Employees receiving LTI are the holders of the key positions with strategic roles as the alignment of Corporate objectives, who also serve as the supervisor and controller of performance achieved by their respective Divisions/Regional Offices/Branch Offices. The information is mentioned in:
|
Annual Report FY 2023 |
| B.7 | "Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this. | Company Practices 2023-2024 | Source |
|---|---|---|---|
| B.7.1 | Does the company have a whistle blowing policy which includes procedures for complaints by employees and other stakeholders concerning alleged illegal and unethical behaviour and provide contact details via the company's website or annual report |
The company has disclosed the whistle blowing policy which includes procedures for complaints by employees and other stakeholders concerning alleged illegal and unethical behaviour and provide contact details via the company's website or annual report.
The Company's Violation Reporting System (WBS) policy was guided by the Minister of BUMN Regulation No.PER-2/ MBU/03/2023 dated March 3, 2023, concerning Guidelines for Governance and Significant Corporate Activities of State- Owned Enterprises and the OJK Regulation (POJK) No. 39/ POJK.03/2019 dated December 19, 2019 regarding the Implementation of Anti-Fraud Strategy for Commercial Banks. The Company also builds supporting infrastructure in implementing WBS policy in which reporters can submit their reports through the following media:
The information is mentioned in:
|
Annual Report FY 2023 |
| B.7.2 | Does the company have a policy or procedures to protect an employee/person who reveals alleged illegal/unethical behaviour from retaliation? |
The company has policy or procedures to protect an employee/person who reveals alleged illegal/unethical behaviour from retaliation.
The Company is committed to protect to every whistleblower. Protection to the Whistleblower is provided to support the courage of the Whistleblower in reporting alleged violations and/or if there is retaliation from the Reported Person. For whistleblowers who submit WBS reports that are recognized for their accuracy and good faith, the Company can provide protection guarantees as follows :
The information is mentioned in:
|
Annual Report FY 2023 |