Indonesia Business Council for Sustainable Development (IBCSD) held the Iftar Business Forum & Knowledge Sharing, with the topic of “Green Finance Initiatives from Banking Sector to Support Indonesia’s Low Carbon Economy”, on 4 April 2024 in Jakarta.
The Iftar Business Forum aimed to share knowledge on existing initiatives and products of sustainable financing in Indonesia, exploring the role of the financing sector in promoting industrial decarbonization through sustainable financing. It also aimed to foster collaboration among IBCSD members in sustainable finance and investment.
Opened by the Chairman of IBCSD, Sihol P. Aritonang, he emphasized that Financing is one of the most vital factors in driving concrete decarbonization in the industrial and commercial sectors. Therefore, green financing is highly expected to be able to encourage industry players towards low-carbon development.
In the knowledge sharing session, the speakers were the Project Development and Matchmaking Experts of SDG Financing Hub National Secretariat SDGs Bappenas, Luhur Fajar Martha, and the Head of Corporate Sustainability PT Bank HSBC Indonesia, Nuni Sutyoko. This session was moderated by the Executive Director of IBCSD, Indah Budiani.
Luhur Fajar Martha highlighted that the impact of climate change can potentially cause an economic loss of IDR 544 trillion if there’s no policy intervention in tackling climate change. He also stated that the importance of Sustainable Finance is underscored by the imperative for the financial services sector to align economic, social, and environmental interests in promoting sustainable development. To achieve this, three main approaches are critical: creating green financial instruments and investments to drive sustainable and inclusive economic growth, building a sustainable investment ecosystem, and implementing sustainable capacity building programs alongside technical assistance. These strategies collectively aim to promote the integration of sustainability principles into financial practices, to ensure a more resilient and equitable future.
The session continued with a presentation from Nuni Sutyoko, explaining the strategy carried out by PT Bank HSBC Indonesia in heading towards net zero as an example from the financial sector. The session continued with a presentation from Nuni Sutyoko, who explained the strategy carried out by PT Bank HSBC Indonesia in heading towards net zero as an example from the financial sector. She said that the biggest challenge for the banking sector to achieve net zero is in scope 3, because banks must ensure that their credit beneficiaries who are included in their supply chain must be net zero as well. For this reason, HSBC has a dedicated ESG Solutions Unit that aims to support customers to reduce carbon emissions by facilitating through the provision of funds for sustainable finance and investment.
As a CEO-led business association committed to fostering sustainable development, IBCSD strives to promote sustainable business practices and drive positive environmental and social impact.
