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Green Banking Leadership Forum

Green Banking Leadership Forum. Convening practitioners, regulators, and partners from across Indonesia's financial sector to advance sustainable finance.

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Overview

This guide brings together practical guidance for embedding sustainable finance into everyday lending and investment decisions. Core terms such as financed emissions are defined as you go, and each recommendation is grounded in the current Sustainable Finance Taxonomy (opens in a new window).

The approach is built around a few core principles:

  • Treat climate and nature-related risk as core to credit decisions, not a reporting afterthought.
  • Use comparable, verifiable data wherever a judgement call would otherwise be made.
  • Align every financing decision with a credible, time-bound transition pathway.

Putting it into practice follows three broad steps:

  1. Baseline the portfolio's financed emissions against a recognised methodology.
  2. Set sector-level targets and the lending policies needed to meet them.
  3. Report progress each year and adjust as the underlying data improves.
The transition will be financed by the institutions that can see their risks most clearly. Those that treat climate and nature as core credit factors, rather than reputational extras, will be the ones still lending profitably a decade from now.
Jordan Lee, Sustainability Lead at Acme Inc.
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Key figures at a glance

Indicative sustainable finance metrics by year.
Indicator202220232024
Green lending (USD bn)0.81.22.4
Sustainability-linked loans (USD bn)0.51.11.9
Financed emissions (MtCO₂e)9.48.67.1
Clients with transition plans183457
Institutions reporting81230

Common questions

A few points that come up often when teams first put this into practice:

Financed emissions follow the PCAF standard, attributing a share of each borrower's or investee's emissions to the financing provided.

Where primary data is unavailable, sector averages are used and clearly flagged as estimates so the gaps stay visible.

Explore the data

Disclosure is not the destination; it is the starting line. The value comes from what institutions do once they can finally see where their emissions and their risks actually sit.
Priya Nair, Head of Climate Risk at Acme Inc.

Use this guidance alongside the resources linked throughout, and adapt each step to your institution's own portfolio, clients, and risk appetite.

Our Partners

With thanks to

Our work is made possible by a diverse network of partners spanning governments, multilateral development banks, financial institutions, and private sector organisations.

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Our Team

The people behind this work

Meet the people driving sustainable finance forward across Indonesia's financial sector.

Events

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