Sustainable Bank
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Transcript of Sustainable Bank
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Dimas Perdana Oskar
February 8, 2012
Sustainable Bank
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Indonesian issues on todays
sustainable banking
A modest growth affected by globaleconomy slowdown
Unfavorable business environment
Syariah Banking
Rise of Technology and Social Media Rise of Local bank
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CIMB Niaga
Incorporated on 26 September1955 under the name of Bank
Niaga.
Listed on IDX in 1989.
Acquired in November 2002 byCIMB Group Holdings Berhad(CIMB Group Holdings) and
subsequently transferred its shares
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Sustainable Bank
environ
ment
social
financialservices
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Sustainable Bank
The best way for a bank to developcommercially is to look at the bigpicture and act in a way that
benefits consumers, the economy,society and the environment. Banksare part of complex human, social
and environmental ecosystems, soit is in their own self-interests tokeep those ecosystems going.
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Sustainable Bank
self-intere
st
altruism
Profitand
Sustain
able
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How to be a Sustainable BankConsumer
-Facin
g Competitive
Communi
cate
Care
Commitment
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Significance of Sustainable Bank
It helps build a stronger community
It's good for the corporate future
It empowers people to start to meettheir own needs
It is designed to be good for theenvironment
Benefits local and global economies
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Dimensions of Sustainability
There are several initiatives whichcan be taken and has been takenthat enable CIMB Niaga to be a
leader in the three main dimensionsof sustainability;
social,
environmental,
business objectives:
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Social
A bank needs to manage the impactof its activities on society in twoways:
by removing, or at leastmitigating, any negative impacts itmay have;
by taking positive steps to helpcommunities through its
employment practices,
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Social Initiatives
1. Create a set of ethical businessprinciples that must be followed toensure it is a responsible provider of
financial services to customers bethey individuals, small businesses,large corporations, public sector bodies
or any other entity so that bank-financed customer activities do notharm others. A banks lending,
investing and asset managementpolicies should have built-in respect for
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Social Initiatives
2. Investing in communities by makingdonations, providing loans and givingother assistance to charities and other
good causes
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Social Initiatives
3. Persuading suppliers to act in asocially responsible manner andgaining the support of shareholders for
all of these initiatives
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Social Initiatives
4. EmployeesRecruiting the best people and providing good
working conditions and opportunities for
employees to develop their careers andenhance their knowledge and skills beyondtheir day job.
Systematically raise the awareness of the
employees and increase their sense ofresponsibility for environmental protection.
Holding employee survey, discussion forums,behavioral campaigns, and internalcommunications to raise the employees
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Environment
Banks want to minimize anynegative impact their activities mayhave on the environment and, if
possible, ensure their activitieshave no negative impact at all. Insome cases, they will try to reverse
damage already caused.
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Environmental Initiatives
Will be achieved by managing theenvironmental footprint of our ownbusiness, for examples:
Using less energy, paper, and waterBuying office equipment where we givepriority to durability and low energy
consumption.Education for environmental changes
Community development relate to
saving earth.
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Business
The most important aspect of a bankssustainability program is managing theimpact that its products, services and
customer relationships have on thefinancial sector. First and foremost, abank must give customers what they
want fairly, responsibly andtransparently. At the same time, it mustprovide good working conditions for staffand deliver profitable growth forshareholders.
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Business Initiatives
1. Commitment to AccountabilityFinancial institutions must be accountable totheir stakeholders, particularly those that are
affected by the companies and activities theyfinance. Accountability means thatstakeholders must have an influential voice infinancial decisions that affect the quality of
their environments and their lives -- boththrough ensuring that stakeholders rights are
protected by law, and through practices andprocedures adopted by financial institutions
themselves.
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Business Initiatives
Financial institutions must be transparent
to stakeholders, not only through robust,regular and standardized disclosure, butalso by being responsive to stakeholderneeds for specialized information onfinancial institutions policies, procedures
and transactions. Commercialconfidentiality should not be used as an
excuse deny stakeholders information.
2. Commitment to Transparency
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Business Initiatives
Financial institutions should ensure thatmarkets are more capable of fosteringsustainability by actively supporting publicpolicy, regulatory and/or market
mechanisms which facilitate sustainabilityand that foster the full cost accounting ofsocial and environmental externalities.
3. Commitment to Sustainable Markets andGovernance
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The Quest
If corporate sustainability is to befinancially sustainable, there needs to be apayoff beyond efficiency. That payoff is the
brand. Does housing your office in apaperlessbuilding pay off your brandpromise? Yes, if your promise is all aboutbeing a green bank. No, if you're a big
bank with a mainstream brand. Mainstreambanks investing significantly in greeninfrastructure do not reap brand rewards.
Their efforts may make them more efficient' '
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Conclusion
Financial institutions must expand their missionsfrom ones that prioritize profit maximization to avision of social and environmental sustainability. Acommitment to sustainability would require
financial institutions to fully integrate theconsideration of ecological limits, social equityand economic justice into corporate strategiesand core business areas (including credit,
investing, underwriting and advising), to putsustainability objectives on an equal footing toshareholder maximization and client satisfaction,and to actively strive to finance transactions that
promote sustainability.
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Thank You