BNI’s Green Bond Successfully Reduces the Impact of Greenhouse Gas Emissions

Jakarta – As one of the state-owned banks that is the driving force for the implementation of sustainable finance in Indonesia, PT Bank Negara Indonesia (Persero) Tbk or BNI strives to proactively promote the principles of sustainable finance.

A BNI press release received on Tuesday (1/8/2022) said, one of the concrete steps to support the implementation of sustainable finance, BNI issued a IDR 5 trillion Rupiah-denominated Green Bond in June 2022 to support the financing of sustainable economic projects and has had a positive impact on reducing greenhouse gases (GHG).

The allocation harmonized with BNI’s Green Bond Framework consists of 77.06 percent. Where 11.24 percent is allocated to the Renewable Energy category, 61.77 percent to the Sustainable Transportation category, and 10.33 percent to the Green Building category.

In addition, there is also an allocation of 15.26 percent for Waste to Energy and Waste Management, and 1.40 percent for Natural Resources and Sustainable Land Use, of the 10 Categories available under the Green Bond Framework, and the rest is allocated to other environmentally sound business activities (KUBL).

Regarding sustainable transportation, through Light Rail Transit (LRT), BNI can contribute to the reduction of 109,823 tons of CO2 per year. Meanwhile, renewable energy is allocated by BNI through Solar Power Plants which contribute to the reduction of 3,037 tons of CO2 per year.

Not stopping there, allocations are also used to convert waste into energy and waste management, where as much as 150,410 tons of waste per year has been recycled.

Beyond that, BNI allocates financing from green bonds for natural resources and sustainable land use, for the management of 314,387 hectares of land that has an FSC certificate and planting 31,269 trees in Papua.

BNI Corporate Secretary Okki Rushartomo said that the company does not only channel financing, but also more proactively monitors the results of GHG reduction from financing sourced from green bonds.

“Of course this is a pretty good achievement. We aim to encourage more proactivity in helping the government to achieve net zero emissions,” he said.

Okki explained that BNI has adjusted the calculation methodology in terms of classification of emission sources to calculate emissions, especially scope 3 which includes land official travel, air official travel, and financing emissions by adopting the methodology from PCAF.

Not only that, BNI also began calculating financing emissions for medium and corporate segment debtors, namely the plantation sector, plantation product derivative industry, mining and commodity trading, processing industry, trade industry, pulp and paper, construction, and power plants.

In the ESG roadmap, BNI will calculate Scope 1 and 2 GHG emissions for all BNI offices to sub-branch offices (KCP) throughout Indonesia, which is currently being carried out to develop guidelines and formats for collecting emission source data so that in the future emission calculations can be carried out in more detail and precision.

“Hopefully the economy will grow through the transition period and will lead to the use of new renewable energy (EBT),” he concluded.


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