Second-Party Opinion Download

Sustainalytics is of the opinion that the Bank BRI Sustainability Bond Framework is credible and impactful, and aligns with the Green Bond Principles 2018, the Social Bond Principles 2018 and the Sustainability Bond Guidelines 2018 and ASEAN Sustainability Bond Standards 2018. This assessment is based on the following:

USE OF PROCEEDS

The six green and five social eligible categories for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond Principles and ASEAN Green Sustainability Standards. Sustainalytics considers that the eligible green and social projects and lending activities can contribute to decreasing Indonesia’s environmental footprint and support socioeconomic empowerment of vulnerable communities. In addition, Sustainalytics views that the eligible projects will advance various UN Sustainable Development Goals.

PROJECT EVALUATION/SELECTION

Bank BRI has a two-step project evaluation and selection process in which candidates eligible for green and social projects are selected by BRI’s business units based on the established eligibility and exclusionary criteria. Final assets and/or projects are then reviewed and approved by BRI Bank’s Enterprise Risk & Portfolio Management Division, the Asset and Liabilities Management Division and the Treasury Business Division. This process is aligned with market practice.

MANAGEMENT OF PROCEEDS

Bank BRI is committed to monitoring its sustainability bond proceeds through its internal information systems. Pending full allocation, the unallocated proceeds will be held in cash or high-quality marketable instruments such as government bonds in accordance with the company’s liquidity management strategy. This process is in line with market practice.

REPORTING

Bank BRI committed to disclose allocation and impact reporting on an annual basis using various channels such as its sustainability report, company website and newsletter. Allocation reporting will include distribution of disbursements by the eligibility category, while impact reporting will include relevant quantifiable metrics where feasible. The scope and granularity of BRI’s reporting is in line with market practices.