PT SMI supports the implementation of Environmental, Social, and Governance (ESG) in Financial Services Institutions

PT SMI has implemented the management of ESG elements – Environmental, Social, Governance as part of the Company's operational and business activities. The implementation of ESG becomes PT SMI's concrete steps in supporting realization of sustainable financing to achieve Sustainable Development Goals (SDGs) in Indonesia.

For elements E and S, several tools and arrangements have been developed and implemented, including the preparation and implementation of the Corporate ESMS Guidelines, Environmental and Social Safeguards Guidelines and various other initiatives. Specifically for the S element, the Company also carried out several activities such as Corporate Social Responsibility (CSR), Community Development Program “Desa Bakti untuk Negeri (DBuN)” and human resource management (employees and outsourcing). Meanwhile, element G is focused on the enforcement of Good Corporate Governance (GCG), adherence to the principles of anti-bribery and gratification, and prevention of anti-money laundering (APU PTT) as well as obtain the ISO 37001 certification regarding application of the Anti-Bribery Management System (SMAP). PT SMI has also conducted information disclosure on the implementation of each ESG element through the preparation of a Sustainability Report every year.

On May 7, 2021, as an effort to develop a more solid ESG Framework and obtain the required roadmap, the Social Environment & Advisory Evaluation Division of PT SMI initiates a Focus Group Discussion with the topic about “ESG Preparation and Implementation for Institutions Financial Services”, which was attended by SMIers (Employees of PT SMI) and representatives from the Ministry of Finance. This FGD involved expert resource persons, including Rizkiasari Yudawinata – WWF Indonesia; Albidin Linda – Ernst & Young Indonesia; and Guillaume Goton – S&P Global Marketing Intelligence. Those experts shared experiences and best practices with PT SMI regarding the implementation of ESG within an organization in general and specifically in Financial Services Institutions (07/05).

In his remarks, the Director of Risk Management of PT SMI – Faaris Pranawa hoped that the FGD activities could encourage a more strategic and systematic implementation of ESG throughout the Ministry of Finance’s work environment, especially PT SMI. This spirit is in accordance with the mandate from the Minister of Finance - Sri Mulyani, to make ESG as an inherent part of risk management. The implementation of ESG is a manifestation of PT SMI's commitment in responding to the challenges of climate change, answering the demands for the application of sustainable finance, and encouraging sustainable development targets in Indonesia.