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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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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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

Sustainable Bank

Documents

Transcript of Sustainable Bank