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Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
APPLICATION OF CORPORATE GOVERNANCE PRINCIPLES
INDEPENDENCE
TRANSPARENCY
1. The Company avoids unreasonable domination by any stakeholders and is not influenced by the interests
of any party and is free from conflicts of interest.
1. The Company discloses information in a timely, adequate, clear, accurate, and comparable manner
2. The Company makes decisions objectively and free from any influence.
accessible by stakeholders.
2. The Company discloses information covering but not limited to the company’s vision, mission, business
objectives, company strategy, financial and non-financial conditions of the company, composition of
the Board of Directors and Board of Commissioners, controlling shareholders, risk management, internal
control and supervision systems, compliance function implementation, company governance system, and
FAIRNESS
material facts that may affect investor decisions.
3. Company policies must be written and communicated to stakeholders entitled to receive such information. 1. The Company considers the interests of all stakeholders based on equality and fairness.
4. The principle of openness must consider the company’s confidentiality, official secrets, and personal rights 2. The Company provides opportunities for all stakeholders to provide input and express opinions for the
in accordance with applicable regulations. benefit of the Company and opens access to information in accordance with the principle of openness.
ACCOUNTABILITY
1. The Company sets business objectives and strategies that can be accounted for to stakeholders.
IMPLEMENTATION OF GCG PRINCIPLES [GRI 2-24]
2. The Company defines clear duties and responsibilities for each member of the Board of Commissioners To manifest good governance practices, Bank Mandiri adheres to the basic principles of GCG in accordance with the INDONESIA
and Directors as well as all levels below them aligned with the company’s vision, mission, corporate values, CORPORATE GOVERNANCE GENERAL GUIDELINES (PUG-KI) 2021 that have been updated by the Governance Policy National
business objectives, and company strategy. Committee (KNKG), namely Ethical Conduct, Accountability, Transparency, and Sustainability.
3. The Company must ensure that each member of the Board of Commissioners and Directors as well as all
levels below them have the appropriate competencies for their responsibilities and understand their roles Implementation of GCG Principles in the Company
in implementing corporate governance.
4. The Company establishes a check and balance system in managing the company.
GCG Principles Explanation Application in the Company
5. The Company has a performance measurement for all levels of the company based on consistent company
values, business objectives, and company strategy, as well as a rewards and punishment system.
In carrying out its activities, the 1. Bank Mandiri strives to uphold Ethical Behavior in
Ethical Conduct
corporation always consistently carrying out business and operational activities,
prioritizes honesty, treats all as evidenced by the application of compliance
parties with respect, fulfills principles which are supported by:
commitments, builds and • Implementation of Anti-Money Laundering
RESPONSIBILITY
maintains moral values and Programs, Prevention of Terrorism Financing
beliefs. The corporation pays and Prevention of Financing of Proliferation of
1. The Company adheres to the principle of prudence and ensures compliance with applicable regulations. attention to the interests Weapons of Mass Destruction;
2. The Company, as a good corporate citizen, cares about the environment and carries out social responsibilities of shareholders and other • Implementation of anti-corruption practices
in a proper manner. stakeholders based on the and culture;
principles of fairness and is • Implementation of Gratification control;
managed independently so that • Implementation of Whistleblowing System
each organ of the company does 2. The Company considers the interests of all stake-
not dominate each other and holders based on the principle of equality and
cannot be intervened by other fairness (equal treatment).
parties. 3. The Company provides opportunities for all stake-
holders to provide input and express opinions for
the interests of the Company and render access
to information in accordance with the principle of
transparency.
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Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
GCG Principles Explanation Application in the Company GCG Principles Explanation Application in the Company
The corporation can account for 1. The Company sets business goals and strategies to be The Corporation complies with 1. The Company has established a dedicated ESG Unit
Accountability Sustainability
its performance transparently accountable to the stakeholders. laws and regulations and is under the supervision of Vice President Director to
and reasonably. For this reason, 2. The Company establishes clear duties and committed to carrying out its coordinating the implementation of sustainability
the Corporation must be responsibilities for each member of the Board of responsibility towards society programs.
managed correctly, measurably Commissioners and Board of Directors organs as well and the environment in order 2. The Company has established a negative investment
and in accordance with as all levels under them which are in line with the to contribute to sustainable list and implemented Industry Acceptance Criteria (IAC)
corporate interests while taking Company vision, mission, values, business objectives development through as part of fulfilling the ESG concept.
into account the interests of and strategies. cooperation with all relevant 3. The Company has established Bank Mandiri ESG
shareholders and stakeholders. 3. The Company must ensure that each member of the stakeholders to improve their Governance Structure, including to determine the
Accountability is a necessary Board of Commissioners and the Board of Directors as lives in a way that is in line Bank’s direction related to climate change and SDGs
prerequisite for achieving well as all ranks below them to have the competence in with business interests and achievement; oversee ESG implementation, fulfillment
sustainable performance. accordance with their responsibilities and understands the sustainable development of sustainability targets and initiatives; and oversee
their role in corporate governance. agenda. the implementation of integrated governance of
4. The Company establishes a check and balance system Sustainability of Bank Mandiri and Subsidiaries.
in its management. 4. The Company organizes specific training programs
5. The Company has performance standards for all levels on sustainability aspects that must be followed by
based on agreed measurements consistent with the representatives of functions related to lending, credit
corporate core values, the business goals and strategies supervision, risk management and others.
and has a rewards and punishment system. 5. The Company holds periodic meetings specifically to
discuss the progress of sustainability programs.
To maintain objectivity 1. The Company discloses information in a timely,
Transparency
in conducting business, adequate, clear, accurate and comparable manner and
corporations provide material can be accessed by concerned parties (stakeholders).
and relevant information in a 2. The Company discloses information which includes but
not limited to the Company’s vision, mission, business
DIVERSITY POLICY OF THE BOARD OF
COMMISSIONERS AND BOARD OF DIRECTORS
way that is easily accessible and
understood by stakeholders. objectives, strategy, the Company’s financial and non-
Corporations take the initiative financial conditions, the Board of Directors and Board of
The diversity policy of the Board of Commissioners and Board the criteria for age, gender, education, experience, integrity,
to disclose not only issues Commissioners compositions, controlling shareholders,
of Directors of the Company is based on various different dedication, understanding of corporate management issues,
required by laws and regulations, risk management, supervisory and internal control
backgrounds, both in terms of age, educational background, and having the knowledge and/or expertise required by Bank
but also those that are important systems, compliance functions, corporate governance
and experience needed to carry out their duties and Mandiri.
for decision-making by as well as material information and facts that may
responsibilities.
shareholders, creditors and other influence investors’ decisions.
The recommendation of the Financial Services Authority, as
stakeholders. 3. The Company policies must be written and
The Articles of Association of Bank Mandiri have regulated the stipulated in the Appendix to Financial Services Authority
communicated to stakeholders who are entitled to
diversity of the composition of the Board of Commissioners in Regulation No. 32/SEOJK.04/2015 on the Guidelines for Good
obtain information about the policy.
accordance with the Appendix to Financial Services Authority Corporate Governance for Public Companies and Financial
4. The principle of openness shall still observe the
Regulation No. 32/SEOJK.04/2015 on the Guidelines for Good Services Authority Regulation No. 13/SEOJK.03/2017 of 2017
provisions of Company secrets, position secrets
Corporate Governance for Public Companies and Financial on the Implementation of Governance for Commercial Banks,
and personal rights in accordance with applicable
Services Authority Regulation No. 13/SEOJK.03/2017 of 2017 on states that the composition of the Board of Directors should
regulations.
the Implementation of Governance for Commercial Banks. consider the diversity of the composition of the Board of
Directors. The diversity of the composition of the Board of
The appointment of the Board of Commissioners is made by Directors is a combination of desired characteristics both from
considering age, gender, education, experience, integrity, the perspective of the Board of Directors as an organization and
dedication, understanding of corporate management issues, individual members of the Board of Directors, in accordance with
and having the knowledge and/or expertise required by Bank the needs of the Public Company. The diversity is determined
Mandiri and being able to provide sufficient time to carry by considering the expertise, knowledge, and experience
out their duties and other requirements based on laws and relevant to the distribution of tasks and functions of the Board
regulations. Currently, the Board of Commissioners has fulfilled of Directors in achieving the goals of the Public Company.
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Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
The consideration of these characteristics has an impact on understanding of corporate management issues related to one
the accuracy of the nomination and appointment process for of the management functions, having the knowledge and/or Nomination and Selection Process [GRI 2-10]
individual members of the Board of Directors or overall members expertise required by the Company, and being able to provide In accordance with the Articles of Association, members of the to meet the Formal Requirements, Material Requirements,
of the Board of Directors. The diversity of the composition sufficient time to carry out their duties and other requirements Board of Commissioners are appointed and dismissed by the and Other Requirements;
of the Board of Directors, as regulated in the Appendix to based on laws and regulations. General Meeting of Shareholders (GMS) for a term of 5 (five) 3. The assessment of meeting the Material Requirements
Financial Services Authority Regulation No. 32/SEOJK.04/2015 years from the date of appointment determined by the GMS. is carried out by: i. assessing the curriculum vitae and
on the Guidelines for Good Corporate Governance for Public However, this diversity policy only governs the diversity of For members of the Board of Commissioners whose term has supporting documents; and ii. specifically assessing
Companies and Financial Services Authority Regulation knowledge and/or expertise based on the responsibilities of expired, they may be reappointed by the GMS. integrity through a written statement from the candidate
No. 13/SEOJK.03/2017 of 2017 on the Implementation of the Board of Directors. The policy related to age and gender as stated in Appendix II of this Ministerial Regulation; and/
Governance for Commercial Banks, has been incorporated in diversity is not currently in place at Bank Mandiri, as nominations The procedure for appointing the Board of Commissioners of or iii. interview;
the Company’s Articles of Association. The appointment of the are prioritized according to the company’s requirements. Bank Mandiri refers to Financial Services Authority Regulation 4. For certain State-Owned Enterprises designated by
Board of Directors is made by considering integrity, dedication, No. 33/POJK.04/2014 on the Board of Directors and Board of the Minister, the candidate of President Commissioner/
Commissioners of Issuers or Public Companies and Minister of Member of the Board of Commissioners must undergo a
State-Owned Enterprises Regulation No. PER-11/MBU/07/2021 fit and proper test conducted by a Professional Institution
on the Requirements and Procedures for the Appointment appointed by the Minister to conduct a fit and proper test
and Dismissal of Members of the Board of Commissioners for Director candidates;
Gender Diversity of the Board Gender Diversity of the Board and Board of Supervisors of State-Owned Enterprises, as 5. Specifically for State-Owned Banks, potential candidates
of Commissioners of Directors amended by Minister of State-Owned Enterprises Regulation to be proposed in the GMS are evaluated by a Team formed
No. PER-7/MBU/09/2022 on the Requirements and Procedures by the Minister involving the Chairman of the Board of
for the Appointment and Dismissal of Members of the Board Commissioners Nomination Committee. In the event that
of Commissioners and Board of Supervisors of State-Owned the Chairman of the Board of Commissioners Nomination
Enterprises. The procedure for appointing the Board of Committee is unable to attend, he/she may be replaced
Commissioners includes: by a member of the Committee from the Independent
18% 25%
1. Potential candidates for the Board of Commissioners/ Commissioner performing the Nomination function.
State-Owned Enterprises Board of Commissioners are The nomination and selection process for the Board of
derived from: Commissioners is carried out through proposals from the
Female Commissioner Female Director
a. Former State-Owned Enterprises Directors; Series A Shareholders to the GMS, taking into account
b. State-Owned Enterprises Board of Commissioners/ recommendations from the Board of Commissioners and the
Supervisors; Remuneration and Nomination Committee. Before delving into
c. Government Structural Officials and Functional the appointment and dismissal of the Board of Commissioners
Officials; during the General Meeting of Shareholders (GMS), details
Female Female d. Other sources; regarding the profiles of newly appointed and reappointed
2. The candidate to be appointed as a member of the Board Board members are presented.
Male Male
of Commissioners is an individual who has been declared
Remuneration Policy [GRI 2-19]
Independent Commissioners Bank Mandiri has implemented a remuneration governance employees, both permanent and variable, in the form of money
policy based on OJK Regulation No. 45/POJK.03/2015 on the or non-money, in accordance with their duties, authorities,
Implementation of Governance in Providing Remuneration for and responsibilities. The implementation of governance in
Commercial Banks. Remuneration is a reward set and given providing remuneration aims to promote prudent risk-taking,
to the Board of Commissioners, Board of Directors, and/or thereby ensuring the sustainability of Bank Mandiri’s business.
55%
Independent
Independent
Non-independent
Commissioner
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Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
Remuneration Policy for the Board of Commissioners PROCESS OF DETERMINING REMUNERATION FOR THE BOARD OF
COMMISSIONERS AND DIRECTORS
and Directors [GRI 2-20]
In providing remuneration for the Board of Commissioners, Based on OJK Regulation No. 45/POJK.03/2015 on the
Bank Mandiri prioritizes prudence and compliance with Implementation of Governance in Providing Remuneration
applicable regulations. The company has currently for Commercial Banks, Bank Mandiri has implemented
implemented good governance in providing remuneration Governance in Providing Remuneration taking into account 1 2
to the Board of Commissioners. In providing remuneration to various aspects, including financial stability, risk management,
the Board of Commissioners, the company considers prudence short-term and long-term liquidity needs, and potential future
to promote prudent risk-taking in maintaining the company’s income.
sustainability. Remuneration and Board of
Nomination Committee Commissioners
The company may defer variable remuneration (Malus) or 3
Bank Mandiri is committed to implementing governance in recover already paid variable remuneration (Clawback) from
providing remuneration by formulating a remuneration policy Material Risk Takers (MRT), with the following conditions:
that has been approved through a Joint Decree of the Board 1. The company applies Malus and/or Clawback for specific
of Commissioners and Directors regarding the Remuneration conditions in the implementation of variable remuneration, Series A Dwiwarna
Shareholder
Policy of PT Bank Mandiri (Persero) Tbk dated March 20, 2018. In considering factors such as: 5 4
determining the remuneration for the Board of Commissioners, a. The magnitude of financial and non-financial losses of
Bank Mandiri refers to: the company.
1. Ministry of SOE Regulation No. PER-04/MBU/2014 on b. The involvement of employees directly or indirectly in Financial Services General Meeting of
the Guidelines for Determining the Income of Directors, the losses incurred. Authority (OJK) Shareholders (GMS)
Board of Commissioners, and Supervisory Board of State- 2. Variable remuneration must be deferred by a certain
Owned Enterprises, as lastly amended by Ministry of SOE percentage determined by the company.
Regulation No. PER-13/MBU/09/2021 dated September 24, 3. This policy applies to officials classified as MRT, with the
2021; following criteria: 1 2 3 4 5
2. Ministry of SOE Regulation No. PER-01/MBU/2011 on the a. Causing financial or non-financial losses to the bank.
Prepare and propose Reviewing the Evaluation of Appointment and Perform Fit and
Implementation of Good Corporate Governance in SOEs, as b. Engaging in fraud, violating the law, unethical behavior, Directors’ Succession Remuneration and the Fulfillment of Determination Proper Test
lastly amended by Ministry of SOE Regulation No. PER-09/ and/or falsifying records. Recommendations Nomination Committee’s Requirements for of Succession of Approval
proposals Candidates for Directors of Candidates
MBU/2012 on Amendments to Regulations of the Ministry c. Violating bank policies, regulations, and procedures Proposing Succession Directors for Company
of SOE No. PER-01/MBU/2011 on the Implementation of intentionally. of Directors to Series A Approval of Management
Dwiwarna Shareholders Succession of Directors
Good Corporate Governance in SOEs; d. Causing significant negative impacts on the bank’s
3. OJK Regulation No. 55/POJK.03/2016 dated December 9, capital not caused by changes in economic or industry
2016 on the Implementation of Governance for Commercial climate.
Banks; 4. In implementing MRT remuneration, Bank Mandiri adheres The determination of remuneration for the Board of Commissioners and Directors is carried out as follows:
4. OJK Regulation No. 45/POJK.03/2015 dated December 23, to OJK regulations, Ministry of SOE regulations, and the 1. The Remuneration and Nomination Committee conducts a review of the remuneration for members of the Board of
2015 on the Implementation of Governance in Providing company’s remuneration policy. Commissioners and Directors.
Remuneration for Commercial Banks; 2. The Remuneration and Nomination Committee coordinates with the Director and the Human Capital unit and related work
5. The Company’s Articles of Association. units in preparing the remuneration proposal.
3. In determining the policy for variable remuneration, the Remuneration and Nomination Committee coordinates with the Risk
Management Work Unit.
4. Based on the review, the Remuneration and Nomination Committee prepares remuneration recommendations and then
submits them to the Board of Commissioners and Directors.
Remuneration and Nomination Committee 5. The Board of Commissioners submits proposals and recommendations based on the review of the Remuneration and
The Board of Commissioners has established a Remuneration for the Board of Commissioners and the General Meeting of Nomination Committee to the General Meeting of Shareholders for approval.
and Nomination Committee aimed at assisting in carrying Shareholders in determining the remuneration for members 6. The proposals and recommendations of the Board of Commissioners to the General Meeting of Shareholders may include:
out its functions and duties related to remuneration and of the Board of Commissioners and/or the Board of Directors. a. Approval regarding the form and amount of remuneration; or
nomination for members of the Board of Directors and Board b. Approval to delegate authority to the Board of Commissioners to determine the form and amount of remuneration.
of Commissioners. One of the tasks of the Remuneration The description related to the Remuneration and Nomination
and Nomination Committee is to establish a remuneration Committee has been explained in the Remuneration and
system for the Board of Commissioners and Directors, as part Nomination Committee section of the Corporate Governance
of the company’s governance policy and serve as the basis Chapter in this Annual Report.
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Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
Scope of Remuneration Policy and Its Implementation Adjustment of Remuneration Linked to Performance and Risk
In connection with the implementation of OJK Regulation No. 1. Benchmarking results for employee, executive officer, Bank Mandiri provides variable remuneration linked to performance and risk, including bonuses, performance incentives, or
45/POJK.03/2015 on the Implementation of Governance in Director, and Board of Commissioner remuneration with other forms equivalent to them. Remuneration in the form of bonuses, performance incentives, and other incentives can be
Providing Remuneration for Commercial Banks, Bank Mandiri similar industries (peer group). provided in cash, shares, or share-based instruments issued by Bank Mandiri with specific provisions for the interests of the Board
has a Remuneration Policy approved through a Joint Decree 2. The size and complexity of the company’s operations. of Commissioners, provided in cash to avoid conflicts of interest in carrying out supervision.
of the Board of Commissioners and Directors dated March 3. Remuneration consisting of salaries/honorariums and
20, 2018. The remuneration policy is the bank’s strategy standardizable benefits such as Holiday Allowance, Annual
in providing rewards to employees, tailored to the bank’s Leave, Official Residence, Official Vehicle, Health Facilities External Consultant Services
capabilities to adapt to changes in employee demographics, and Utilities, and other benefits. Performance-based
labor cost management, and to drive the achievement of Bank remuneration includes bonuses/incentives for employees To determine the bank’s competitive position in the market, this survey serve as the foundation for refining Bank Mandiri’s
Mandiri’s business objectives. and tantiems for Directors and the Board of Commissioners. Bank Mandiri annually engages in an independent and remuneration strategy, subsequently presented for approval
reputable third-party Annual Salary Survey. The findings of at the Board of Directors meeting.
The existing remuneration policy continues to govern the In general, Bank Mandiri’s remuneration strategy is guided by
compensation for the Board of Commissioners and Directors, Labor Laws and Financial Services Authority Regulations. The
and will later be extended to employees at specific levels long-term total reward strategy aims to ensure that the bank Formulation of Remuneration Policies
identified as material risk takers. The determination of material maintains a strong competitive position in the market, aiming Remuneration policies are crucial for attracting and retaining 1. Financial performance and reserve fulfillment as regulated
risk takers is carried out using qualitative and quantitative to: competent and high-quality employees, executive officers, by applicable laws and regulations;
approaches. In determining employee remuneration, 1. Generally position the bank at the 75th percentile. directors, and commissioners. Remuneration policies are 2. Remuneration applicable to the industry corresponding
Executive Officers, Directors, and the Board of Commissioners, 2. Specifically position top talent and critical jobs up to the a strategy of Bank Mandiri to provide rewards tailored to the company’s activities and the scale of the company’s
the Remuneration and Nomination Committee considers 90th percentile. to its capabilities, accommodating changes in employee operations within its industry;
several factors, including: demographics, labor cost management, and to drive the 3. Duties, responsibilities, and authorities of the Board of
achievement of Bank Mandiri’s business objectives. Directors and/or Board of Commissioners linked to the
company’s objectives and performance;
The remuneration of Bank Mandiri aims to attract, retain, 4. Performance targets for each member of the Board of
Remuneration Linked to Risk motivate, and increase employee engagement to continuously Directors and/or Board of Commissioners to achieve a
In providing remuneration, Bank Mandiri takes into account prudence principles aimed at promoting prudent risk-taking to deliver optimal performance in support of Bank Mandiri’s balance between work results and the rewards received;
ensure the sustainability of the bank’s business. Bank Mandiri determines performance measurement methods and types of vision, mission, and strategy. 5. Balancing fixed and variable benefits;
risks in determining variable remuneration in accordance with the scale and complexity of Bank Mandiri’s business activities. In 6. Long-term recommendations and strategies of Bank
establishing remuneration, Bank Mandiri takes into account the type, criteria, impact, and changes in determining primary risks. Formulation of Bank Mandiri’s remuneration policy takes into Mandiri.
account:
Performance Measurement Linked to Remuneration Indicators/Coverage of Remuneration Policies and
Their Implementation
In providing remuneration, Bank Mandiri conducts on performance), unit performance, and overall bank In accordance with the implementation of OJK Regulation remuneration policy governs the compensation of the Board
performance measurements linked to remuneration, covering performance, but remains within the established budget. In No. 45/POJK.03/2015 on the Application of Governance of Commissioners and the Board of Directors, and will later
a review of remuneration policies associated with performance general, in implementing total rewards, Bank Mandiri provides in Providing Remuneration for Commercial Banks, Bank extend to employees at specific levels identified as material
evaluations, methods for linking individual remuneration to salaries, annual salary adjustments, holiday bonuses, annual Mandiri has established a Remuneration Policy approved risk takers. The identification of material risk takers is carried
Bank Mandiri’s performance, unit performance, and individual leave benefits, and long leave benefits given for every 3-year through a Joint Decree of the Board of Commissioners and out through a combination of qualitative and quantitative
performance, as well as the methods used by Bank Mandiri to work period. Bank Mandiri also provides health facilities the Board of Directors dated March 20, 2018. The existing methods.
indicate that agreed-upon key performance indicators cannot for employees and their families, including inpatient care,
be achieved without adjustments to remuneration and the outpatient care, childbirth, dental care, general check-ups,
extent of such adjustments if such conditions occur. eyeglasses, and a pensioner health program.
Remuneration Policy for Employees
The implementation of remuneration strategies also takes In determining employee remuneration, executive officers, 2. The size and complexity of company operations;
into account the performance of each employee (based directors, and commissioners, the Remuneration and 3. Remuneration consisting of salaries/honorariums and
Nomination Committee takes into account several factors, standardizable benefits such as holiday bonuses, housing,
including: company vehicles, health facilities, utilities, and other
1. Benchmarking results of employee, executive officer, benefits. Performance-based remuneration includes
director, and commissioner remuneration with similar bonuses/incentives for employees and performance
industries (peer group); bonuses for directors and commissioners.
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Governance Asessment
REMUNERATION AND FACILITIES FOR THE BOARD Management of Conflict of Interest [GRI 2-15]
OF COMMISSIONERS AND DIRECTORS The management of conflict of interest by the Board of Commissioners is regulated in the Guidelines and Rules of the Board of
Commissioners as follows:
Structure of Remuneration for Board of Commissioners and Directors
Remuneration for the Board of Commissioners and Directors
is provided in accordance with applicable remuneration
equivalent forms.
01 Each Commissioner is required to safeguard information that, based on statutory regulations, must
provisions, in the form of: Bonuses, performance incentives, and other incentives can be be kept confidential, including insider trading provisions and other information that has not been
1. Fixed remuneration, not linked to performance and provided in cash, shares, or share-based instruments issued disclosed to the public by the Company.
risk, including salaries/honorariums, facilities, change by the company with specific provisions for the Board of
allowances, health benefits, education benefits, holiday Commissioners, provided in cash to avoid conflicts of interest
02
bonuses, and retirement benefits. Remuneration in the in carrying out supervision.
form of salaries/honorariums, facilities, allowances, and Each Commissioner is required to disclose:
retirement benefits is provided in cash; The structure for determining remuneration for the Board of a. Their share ownership in the Company as well as in other companies domiciled domestically or
2. Variable remuneration, linked to performance and risk, Commissioners and Directors is as follows: abroad.
including bonuses, performance incentives, or other b. Financial relationships and family relationships with other members of the Board of
Commissioners and the Board of Directors, and their respective families.
TABLE OF STRUCTURE OF REMUNERATION FOR BOARD OF COMMISSIONERS AND DIRECTORS [GRI 2-21] c. Other information that, according to statutory regulations, must be disclosed to the public.
No Type of Income Provisions
Board of Commissioners Board of Directors 03 The Board of Commissioners is prohibited from being involved in decision-making related to
1. Honorarium/Salary Position Position
banking operational activities and/or decision-making that may lead to conflicts of interest.
President Commissioner: 45% of the President Vice President Director: 95% of the President
Director’s Honorarium Director’s Honorarium
Vice President Commissioner: 42.5% of the President Director of Human Capital: 90% of the President
04
Director’s Honorarium Director’s Honorarium
Commissioner: 90% of the President Commissioner’s Other Board Members: 85% of the President
The Board of Commissioners is prohibited from utilizing the Company for personal, family, other
Honorarium Director’ s Honorarium
company, or specific individual interests in a manner that contradicts statutory regulations and the
2. Allowance Company’s code of conduct.
Religious Holiday 1 (one) time honorarium 1 (one) month’s salary
Allowance
Housing Allowance Not given Housing allowance is provided monthly if not
occupying official housing up to a maximum of
Rp27,500,000 The management of conflict of interest by the Directors is for the governance and management of the Bank’s activities.
regulated in the Bank Mandiri Policy Architecture. The Bank The management of conflict of interest by the Directors
Transportation 20% of the honorarium Not provided
Mandiri Policy Architecture is a hierarchy/framework of policies includes, among other things:
Allowance
Annual Leave Not given Not provided
Allowance
3.
Retirement Benefits
Facilities
Insurance premium maximum 25% of the honorarium/year Insurance premium maximum 25% of annual salary
01 The Board of Commissioners, the Board of Directors, and Executive Officers are committed to avoiding
Official Vehicle Given in the form of transportation allowance of 20% of Provided with 1 (one) official vehicle in the form of a all forms of conflicts of interest.
Facility the honorarium lease according to the established criteria
Healthcare Facility Reimbursement of treatment according to internal policy Reimbursement of medical treatment according to
number KEP.KOM/03/2022 internal policy number KEP.KOM/03/2022
02 In the event that a member of the Board of Directors has a personal interest in a transaction, contract,
Professional Maximum of 2 (two) memberships relevant to the Maximum of 2 (two) memberships relevant to the
or proposal in which the Bank is one of the parties, the nature of their interest must be declared at
Association Facility Company’s activities company’s activities
the Board of Directors meeting, and the concerned Director is not entitled to vote.
Legal Aid Facility Legal assistance facilities according to internal policy Legal assistance facilities according to internal policy
number KEP.KOM/03/2022 number KEP.KOM/03/2022
4. Bonus, Royalty, May be provided in the form of shares or cash. May be provided in the form of shares or cash.
Incentive
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Governance Asessment
03 At least once a year, each member of the Board of Commissioners, the Board of Directors, and Executive
Governance Assessment
Officers must make a statement regarding the existence or absence of conflicts of interest with the
Bank’s activities.
Assessment Score
04 Members of the Board of Commissioners, the Board of Directors, and Executive Officers are prohibited
In the first half of 2023, Bank Mandiri conducted its own individual assessment of Governance with a score of 1, however, OJK
provided the following assessment feedback:
to hold multiple positions as regulated by the applicable regulations.
Score Composite Definition
Performance Assessment [GRI 2-18]
The performance assessment of the Board of Commissioners
is carried out collegially through self-assessment and
reported in the Annual General Meeting, where the Board of
the Shareholders. The Annual General Meeting then provides
full discharge and release of responsibility to the Board of
Commissioners and the Company’s Board of Directors for the
1 Reflects that the Company’s management has generally implemented
very good Governance. This is reflected in the very adequate fulfillment of
Governance principles. In the event of weaknesses in the implementation
Commissioners’ performance results are presented through management and supervision during the respective fiscal year. of Governance principles, these weaknesses are generally not significant
the Board of Commissioners’ duties performance report to and can be promptly addressed by the Bank’s management.
Board of Commissioners’ Self-Assessment
Performance Procedure
EXTERNAL ASSESSMENT
In addition to conducting its own assessment of Governance The results of the CGPI assessment are used by Bank Mandiri
based on regulatory provisions, Bank Mandiri actively to evaluate and improve the implementation of GCG. Bank
undergoes an external assessment of Governance to obtain Mandiri was awarded the “Highly Trusted Company” predicate
feedback on the implementation of the Bank’s Governance. in the CGPI assessment for the year 2021 held in 2022 with a
Reporting the results Bank Mandiri participates in the research and ranking program score of 95.11. This award marks the 16th consecutive award for
Determine Through self- of the performance Responsibility
supervisory assessment is accepted/ CGPI held by The Indonesian Institute of Corporate Governance Bank Mandiri. The composition of Bank Mandiri’s assessment
assessment of (IICG). CGPI is participated in by public companies (issuers), scores for the last 4 consecutive years is as follows:
aspects methods the Board of rejected by
the GMS state-owned enterprises, banks, and other private companies.
Commissioners at
the GMS
1. Risk Profile Remuneration CGPI Assessment Results
2. Good Corporate (Tantiem)
Governance Stage Score 2019 Score 2020 Score 2021 Score 2022 Score 2023
3. Profitability Governance Structure 32.98 25.70 33.76 26.65 31.53
4. Bank Capital Governance Process 30.63 34.50 34.26 36.24 31.24
Governance Outcome 31.25 34.74 26.99 32.22 32.45
Score 94.86 94.94 95.01 95.11 95.22
The process of assessing the Directors’ performance can be General Meeting of Shareholders (AGMS). Further information
seen from the achievement of the Key Performance Indicators on the duties, responsibilities, and authorities of the corporate
(KPI) of the Directors individually and collectively, evaluated governance organs can be found in the Bank Mandiri 2023
by the Shareholders through the mechanism of the Annual Annual Report in the Corporate Governance section.
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CGPI Assessment Results 2007-2023
ESG Governance
95,22
95,11
94,94 95,01
94,86 Bank Mandiri manages sustainability comprehensively, Duties and Responsibilities – ESG Unit
93,55 including ESG topics, within the framework of sustainable Develop frameworks, commitments, roadmaps and targets
93,32
92,55 93,29 financial work to achieve the vision of sustainability, “Becoming related to ESG/Sustainability.
91,51 91,51 91,51 91,33 92,15 Indonesia’s Sustainability Champion for A Better Future.” Monitoring Bank Mandiri’s Sustainable Portfolio (according
90,55
to POJK 51/2017 criteria) and reporting Bank Mandiri’s
89,96
89,86 To achieve this goal, the company establishes governance Portfolio in accordance with the Indonesian Green
bodies involved in planning, decision-making, monitoring, Taxonomy.
evaluation, and implementation of bank-wide ESG strategies Encourage the development of Sustainable Financial
within the following structure. services/products.
Cascading relevant ESG KPIs across all units.
Duties and Responsibilities – Directors & Commissioners Ensure ESG disclosure is in line with best practice.
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Monitoring & evaluating the Company’s compliance with Internalizing ESG awareness to all employees.
the Articles of Association, Authority regulations, and other Ensure alignment of ESG aspects into all business processes
laws and regulations related to Risk Management. and internal regulations.
Provide recommendations to the President Director
regarding the preparation of Risk Management Policies,
GCG AWARDS 2023 Strategies and Implementation Guidelines.
GCG Rating by The Indonesian Institute for Corporate Directorship
01 (IICD) at the 14th IICD Corporate Governance Conference and Awards
2023, Bank Mandiri achieved the “Best Overall” category. Sustainability Governance Structure
Bank Mandiri’s participation in the Corporate Governance Perception
02 Index (CGPI) ranking program held by The Institute Indonesian for Board of Commissioners / Related Board of
Corporate Governance (IICG) has successfully maintained the “Highly Commissioners Committee
Trusted” predicate for 17 consecutive times.
In 2023, 3 entities within the Bank Mandiri Financial Conglomerate Board of Directors / Related Board of Directors
03 received the “Highly Trusted” predicate and 4 entities received the Committee
“Trusted” predicate in the Corporate Governance Perception Index
(CGPI) ranking.
ESG Working Group
ESG Coordinator Work Unit
ESG Contributor Work Unit
• Business Unit • Supporting Unit
• Risk Management Unit • Regional Offices I-XII
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ESG MANAGEMENT AND EVALUATION [GRI 2-14], [GRI 2-16]
The company ensures that ESG governance operates impacts of sustainability aspects and climate change,
effectively in line with stakeholder expectations. ESG consulting stakeholders such as shareholders, regulators, ESG Communication Department
governance is continuously monitored to ensure the the public, and other parties. This consultation can take the
Compiling ESG disclosures;
internalization of sustainability-related matters within the form of face-to-face meetings, virtual meetings, or through
Engaging stakeholders through various internal and external events and publications;
company’s overall governance structure. Bank Mandiri has received reports. The frequency of meetings or reports is
Communicating ESG strategy and performance to investors;
also set objectives to effectively address ESG-related matters adjusted as needed.
Responsible for creating and disseminating all company ESG messages;
in accordance with regulations and to consider ESG practices
Compiling press releases, statements, and communication materials related to ESG achievements and initiatives.
applied by the banking industry and global initiatives. In its implementation, the Board of Commissioners and the
Board of Directors delegate responsibility for managing the
In particular, for climate risk management, the Board of impacts of sustainability to the ESG Unit, directly supervised
Directors is assisted by the Risk Management and Policy by the Vice President Director and reports to the Risk
Committee (RMPC), and in its oversight, the Board of Management Policy and Committee (RMPC) and the Risk ESG Operation Department
Commissioners is assisted by the Risk Monitoring Committee Monitoring Committee (KPR). Reports from the ESG Unit are
Compiling operational GHG emission reports;
(KPR). Climate risk monitoring is conducted through director then regularly forwarded to the Directors as needed and to
Developing strategies to reduce operational GHG emissions;
meetings, the Risk Management and Credit Policy Committee the Board of Commissioners with a minimum frequency of
Developing and monitoring the implementation of the Sustainable Financial Action Plan (SFAP).
(RMPC), and the ESG Forum at least six times a year. four times per year.
As the highest governance body, the Board of Commissioners The management oversight in enforcing the Code of
and the Board of Directors set the company’s direction Conduct includes supervision by the Directors related to
through policies, strategies, and sustainable targets in social, the implementation of integrity and ethics, which are part ESG Framework & Sector Policy Department
economic, and environmental topics, including climate of the Internal Control System. In supervision, the Directors
change, embodied in Bank Mandiri’s policies and strategies. ensure the growth of a corporate culture that upholds ethical Developing frameworks, roadmaps, and commitments for ESG and climate change;
values, the integrity of all Mandirians, making management Developing policies related to ESG and sustainable banking in the credit process on a bank-wide basis;
The Board of Commissioners and the Board of Directors an example that fosters the involvement of all employees and Advocating policy and providing insights to regulators regarding best practices in sustainable finance.
actively identify and evaluate the management of the instills a risk culture at all levels of the organization.
Product & Portfolio Management Department
Enhancing the Sustainable Portfolio through the development of sustainable product suites, including advising
STRUCTURE & DUTIES OF ESG UNIT
product owners;
Direktur Utama Reporting on the Sustainable Portfolio in accordance with POJK 51 and Indonesia’s Sustainable Taxonomy;
Developing transition strategies to reduce financed emissions in line with national NZE and best practices;
Developing a system and methodology for managing the Sustainable Portfolio in accordance with best
practices.
Wakil Direktur Utama Direktur Lainnya
Unit Kerja Lain Environmental, Social & Governance Group
Dept. ESG Dept. ESG Dept. ESG Framework & Dept. Product & Portfolio
Communication Operation Sector Policy Management
External ESG Internal ESG Sustainable Sustainable Sector
Engagement Engagement Framework & Policy Policy
Environmental Sustainable Sustainable Product Sustainable Portofolio
Future Operational Development Management
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PERSON IN CHARGE FOR SUSTAINABLE FINANCE [OJK E.1] RESPONSIBILITY, MONITORING, AND EVALUATION OF
The Board of Directors is fully responsible for setting the Mandiri has added a new unit, the ESG Group, in accordance ESG GOVERNANCE
company’s sustainability direction (Framework, Commitment, with SK/KOM/05.2/2022 dated July 18, 2022, and stipulated in
Strategy, Initiatives, Roadmap) related to climate change and the Board of Directors’ Decision Letter No. KEP.DKP/32/2022
the achievement of Sustainable Development Goals (SDGs); dated September 12, 2022. The ESG Group is responsible for
this is embodied in the Sustainable Financial Action Plan sustainable finance in accordance with POJK-51/2017. The ESG ESG Group
(SFAP) 2024-2028, approved by the Board of Commissioners, Group is a full-time permanent unit that replaces the previous
and submitted to the regulator every November. sustainable finance task force.
The quarterly report on the implementation of ESG covers the achievement of sustainable financial
Each member of the Board ensures the implementation of The ESG Group serves as the control tower for implementing initiatives carried out by the ESG Group and contributing members; sustainability framework and
SFAP and the management of relevant ESG topics in their ESG at Bank Mandiri and all its subsidiaries. The ESG Group is led commitment; and other sustainability issues related to climate management and the achievement of SDGs.
respective directorates according to the timeframe set in SFAP. by a Senior Vice President under the authority of the Company’s
The integration and coordination of ESG topics specifically Vice President Director. The daily functions of the ESG Group
fall under the authority of the Vice President Director and are include managing the ESG framework, aligning provisions in
carried out by the ESG Group, covering the following: line with ESG issues and climate change, managing sustainable
ESG Framework Management, portfolio management, responsible operational strategies, as RMPC/Directorate/ESG Forum
Alignment of provisions in line with ESG issues and climate well as communication and reporting functions to external
change, and internal parties.
Sustainable portfolio management,
Directives to the ESG Unit and ESG Contributing Members to review, develop, and align the
Responsible operational strategies, The Board of Directors and the Board of Commissioners review achievement of sustainable financial initiatives with current ESG issues and the expectations of
Communication and reporting functions to external and and approve ESG reports addressed to the public, including stakeholders.
internal parties. the presentation of this Sustainability Report.
In the context of sustainable finance implementation, Bank
Board of Directors
Quarterly reports to the Board of Commissioners through the Risk Monitoring Committee (KPR) on
the achievement of sustainable financial initiatives, sustainability framework and commitment, and
other sustainability issues related to climate management and the achievement of SDGs.
Regular presentation of achievements, plans, and sustainable financial initiatives to investors,
stakeholders (mass media), and regulators through Analyst Meetings, Public Exposures, GMS,
Sustainability Landing Page, and Prudential Meetings.
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SUSTAINABLE CAPACITY DEVELOPMENT [GRI 2-17] Name Position Training/Seminar Organizer Place Date
GRC Masterclass: BLMI Jakarta 10 Agustus 2023
Bank Mandiri ensures that the Board of Commissioners, the The ESG Capacity Building initiative is divided into three Pemeringkat dan
Board of Directors, committees, and units involved in the categories: ESG Awareness for all employees, including Penerbitan Efek Bersifat
implementation of sustainable finance and the management of the Board of Commissioners and the Board of Directors; Utang & Sukuk (EBUS)
ESG issues acquire the knowledge, skills, and tools necessary to Development of ESG Expertise in priority sectors, particularly for
GRC Masterclass: BLMI Jakarta 07 September 2023
effectively carry out their duties. For this reason, the Company employees in Business Units (Corporate Banking, Commercial
Risk Management
facilitates their needs through training and education related and SME) & Risk; and capacity building for individuals through
Effectiveness Evaluation
to ESG. the acquisition of ESG certifications.
Refreshment Sertifikasi LPPI Jakarta 29 September 2023
Manajemen Risiko
-Program Executive
CAPACITY DEVELOPMENT ACTIVITIES FOR ESG GOVERNANCE AT BANK MANDIRI IN 2023
BOC Retreat: Economy Bank Mandiri Bali 15 Desember 2023
Competency Enhancement of the Board of Commissioners Outlook 2024 & m-DNA
Rionald Commissioner Mandiri Investment Bank Mandiri Jakarta 01 Februari 2023
Name Position Training/Seminar Organizer Place Date Silaban Forum 2023
Muhamad Chatib President World Economic Forum World Economic Forum Davos, Swiss 16-20 Januari 2023 Refreshment Program: BARa Risk Forum Jakarta 24 Agustus 2023
Basri Commissioner/ Creating Value in A Fast
Independent Changing Banking World
Commissioner BOC Retreat: Economy Bank Mandiri Bali 15 Desember 2023
Mandiri Investment Bank Mandiri Jakarta 01 Februari 2023 Outlook 2024 & m-DNA
Forum 2023 Faried Utomo Commissioner Mandiri Investment Bank Mandiri Jakarta 01 Februari 2023
Sharing Session: Cyber Bank Mandiri Jakarta 08 Juni 2023 Forum 2023
Attack Refreshment Program: BARa Risk Forum Jakarta 24 Agustus 2023
Mandiri ESG Festival Bank Mandiri Jakarta 12 Juli 2023 Creating Value in A Fast
Refreshment Program: BARa Risk Forum Jakarta 26 Juli 2023 Changing Banking World
Cyber Security Arif Commissioner Refreshment Program:
BSMR Jakarta 22 Februari 2023
GRC Masterclass: BUMN Leadership & Jakarta 07 September 2023 Budimanta ESG Risk Management
Risk Management Management Institute Sharing Session: Cyber
Bank Mandiri Jakarta
Effectiveness Evaluation (BLMI) Attack 8 Juni 2023
BOC Retreat: Economy Bank Mandiri Bali 15 Desember 2023 GRC Masterclass: BLMI Jakarta 07 September 2023
Outlook 2024 & m-DNA Risk Management
Andrinof A. Vice President Mandiri Investment Bank Mandiri Jakarta 01 Februari 2023 Effectiveness Evaluation
Chaniago Commissioner/ Forum 2023 Asean Global Leadership
Independent Programme (AGLP):
Commissioner Leading Innovation SRW & Co. Chicago - USA 15-22 September 2023
Asean Global Leadership SRW & Co. Barcelona 15 - 19 Mei 2023 in Global Economic
Programme (AGLP): Recovery
Shapping The Future Mandiri Sustainability Bank Mandiri Jakarta 07 Desember 2023
With Leadership Forum 2023
Sharing Session: Cyber Bank Mandiri Jakarta 08 Juni 2023 BOC Retreat: Economy Bank Mandiri Bali 15 Desember 2023
Attack Outlook 2024 & m-DNA
GRC Masterclass: Audit TI BLMI Jakarta 27 Juni 2023 Nawal Nely Commissioner Mandiri Investment Bank Mandiri Jakarta 01 Februari 2023
Mandiri ESG Festival Bank Mandiri Jakarta 12 Juli 2023 Forum 2023
GRC Masterclas : ESG For BLMI Jakarta 13 Juli 2023 Sharing Session: Cyber Bank Mandiri Jakarta 08 Juni 2023
Auditor Attack
GRC Masterclass: IPO & BLMI Jakarta 10 Agustus 2023 GRC Masterclass: ESG For BLMI Jakarta 13 Juli 2023
Post IPO Auditor
GRC Masterclass: IPO & BLMI Jakarta 10 Agustus 2023
Post IPO
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Name Position Training/Seminar Organizer Place Date Name Position Training/Seminar Organizer Place Date
GRC Masterclass: BLMI Jakarta 10 Agustus 2023 GRC Masterclass: Audit TI BLMI Jakarta 27 Juni 2023
Pemeringkat dan Mandiri ESG Festival Bank Mandiri Jakarta 12 Juli 2023
Penerbitan Efek Bersifat
GRC Masterclass: ESG For BLMI Jakarta 13 Juli 2023
Utang & Sukuk (EBUS)
Auditor
Refreshment Program: BARa Risk Forum Jakarta 24 Agustus 2023
Refreshment Program: BARa Risk Forum Jakarta 26 Juli 2023
Creating Value in A Fast
Cyber Security
Changing Banking World
GRC Masterclass: IPO & BLMI Jakarta 10 Agustus 2023
GRC Masterclass: BLMI Jakarta 07 September 2023
Post IPO
Risk Management
GRC Masterclass: BLMI Jakarta 10 Agustus 2023
Effectiveness Evaluation
Pemeringkat dan
Forum Penguatan Kementerian BUMN - OJK DI Yogyakarta 26 September 2023
Penerbitan Efek Bersifat
Governansi & Integritas
Utang & Sukuk (EBUS)
BOC Retreat: Economy Bank Mandiri Bali 15 Desember 2023
Executive Risk LPPI Amsterdam, 21-29 Oktober 2023
Outlook 2024 & m-DNA
Management Refresher Paris
Loeke Independent Mandiri Investment Bank Mandiri Jakarta 01 Februari 2023 Program: ESG and
Larasati Commissioner Forum 2023 Business Sustainability
Agoestina
Mandiri Sustainability Bank Mandiri Jakarta 07 Desember 2023
Sharing Session: Cyber Bank Mandiri Jakarta 08 Juni 2023 Forum 2023
Attack
BOC Retreat: Economy Bank Mandiri Bali 15 Desember 2023
GRC Masterclass: Audit TI BLMI Jakarta 27 Juni 2023 Outlook 2024 & m-DNA
Mandiri ESG Festival Bank Mandiri Jakarta 12 Juli 2023 Sosialisasi Petunjuk Kementerian BUMN Jakarta 20 Desember 2023
GRC Masterclass: ESG For BLMI Jakarta 13 Juli 2023 Teknis Tentang Penilaian
Auditor Indeks Kematangan
Refreshment Program: BARa Risk Forum Jakarta 26 Juli 2023 Risiko (RMI) di
Cyber Security Lingkungan BUMN
GRC Masterclass: IPO & BLMI Jakarta 10 Agustus 2023 M. Yusuf Ateh Commissioner Mandiri Investment Bank Mandiri Jakarta 01 Februari 2023
Post IPO Forum 2023
GRC Masterclass: BLMI Jakarta 10 Agustus 2023 Sharing Session: Cyber Bank Mandiri Jakarta 08 Juni 2023
Pemeringkat dan Attack
Penerbitan Efek Bersifat Refreshment Program: BARa Risk Forum Jakarta 24 Agustus 2023
Utang & Sukuk (EBUS) Creating Value in A Fast
GRC Masterclass: BLMI Jakarta 07 September 2023 Changing Banking World
Risk Management Heru Kristiyana**) Independent Sharing Session: Cyber Bank Mandiri Jakarta 08 Juni 2023
Effectiveness Evaluation Commissioner Attack
Executive Risk LPPI Amsterdam, 21-29 Oktober 2023 Mandiri ESG Festival Bank Mandiri Jakarta 12 Juli 2023
Management Refresher Paris Refreshment Program: BARa Risk Forum Jakarta 24 Agustus 2023
Program: ESG and Creating Value in A Fast
Business Sustainability Changing Banking World
Mandiri Sustainability Bank Mandiri Jakarta 07 Desember 2023 Webinar: Bursa Karbon LPPI Jakarta 21 November 2023
Forum 2023 dan Peluangnya bagi
BOC Retreat: Economy Bank Mandiri Bali 15 Desember 2023 Sektor Keuangan
Outlook 2024 & m-DNA Indonesia
Muliadi Rahardja Independent Mandiri Investment Bank Mandiri Jakarta 01 Februari 2023 Mandiri Sustainability Bank Mandiri Jakarta 07 Desember 2023
Commissioner Forum 2023 Forum 2023
Sharing Session: Cyber Bank Mandiri Jakarta 08 Juni 2023 Seminar Jenjang 6: BARa Risk Forum Jakarta 07 Desember 2023
Attack Climate Risk Stress
Testing, Carbon Pricing,
Bursa Karbon Indonesia
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Name Position Training/Seminar Organizer Place Date Competency Enhancement of the Board of Directors
BOC Retreat: Economy Bank Mandiri Bali 15 Desember 2023
Name Position Training/Seminar Date
Outlook 2024 & m-DNA
Darmawan Junaidi President Director Refreshment Sertifikasi Manajemen Risiko 29 September 2023
Zainudin Amali***) Independent Sharing Session: Cyber Bank Mandiri Jakarta 08 Juni 2023
Commissioner Attack Alexandra Askandar Vice President Director Refreshment Sertifikasi Manajemen Risiko 29 September 2023
Refreshment Program: BARa Risk Forum Jakarta 24 Agustus 2023 Ahmad Siddik Badruddin Director of Risk Management ERM and Cyber Security: How to Mitigate and 26 Juli 2023
Creating Value in A Fast Protect
Changing Banking World Agus Dwi Director of Compliance & HC Pelatihan Refreshment Manajemen Risiko 29 November 2023
Pembekalan Manajemen LPPI Jakarta 29-30 Mei, 05 Juni 2023 Handaya Jenjang 7
Risiko untuk Calon Panji Irawan*) Director of Treasury &
Komisaris Bank Umum International Banking
Mandiri Sustainability Bank Mandiri Jakarta 07 Desember 2023 Riduan Director of Commercial Webinar Mengelola Kredit Komersial 6 Januari 2023
Forum 2023 Banking Menghadapi Potensi 2023
BOC Retreat: Economy Bank Mandiri Bali 15 Desember 2023 Aquarius Director of Network & Retail
Outlook 2024 & m-DNA Rudianto Banking
Susana Indah K Director of Corporate Banking Workshop ESG Financing & Energy Transition 5 April 2023
*) Served until March 14, 2023 based on the Annual GMS Resolution of Bank Mandiri. Indrianti Mechanism Financing
**) Appointed at the Annual GMS and passed the fit and proper test on August 21, 2023.
Director of Institutional Kick Off Global Banking Program 20 Januari 2023
***) Appointed at the Annual GMS and passed the fit and proper test on November 6, 2023.
Relations
Director of Operations Pelatihan Refreshment Manajemen Risiko 29 November 2023
Jenjang 7
Director of Finance & Strategy Sharing Session & Leader As Teacher Wholesale 14 September 2023
Banking
Rohan Hafas Director of Information & Pelatihan Refreshment Manajemen Risiko 29 November 2023
Technology Jenjang 7
Toni Eko Boy Director of Treasury & Operation Talks - Vol 2 10 Februari 2023
Subari International Banking
Operation Talks - Vol 3 10 Maret 2023
Operation Talks - Vol 6 28 Juli 2023
Operation Talks - Vol 7 27 Oktober 2023
Pelatihan Refreshment Manajemen Risiko 29 November 2023
Jenjang 7
Sigit Prastowo Direktur Keuangan & Pentingnya Cyber Security dalam Digitalisasi 22 Februari 2023
Strategi Bank dan Kaitannya Dengan Risiko
Operasional
Timothy Utama Direktur Information & Kick Off Global Banking Program 20 Januari 2023
Technology
Pelatihan Refreshment Manajemen Risiko 29 November 2023
Jenjang 7
Eka Fitria**) Direktur Treasury &
International Banking
*) Served until March 14, 2023 based on the Annual GMS Resolution of Bank Mandiri.
**) Appointed at the Annual GMS and passed the fit and proper test on August 21, 2023.
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Risk Management [OJK E.3]
Three Lines of Defense
Risk management is at the core of banking operations Risk Identification, Measurement, Mitigation, and Control.
1 2 3
implemented by Bank Mandiri to achieve healthy and These three main parts are supported by the Audit Unit as an
responsible financial and operational growth. In addition to independent assurance to ensure their effectiveness.
compliance, Bank Mandiri manages and makes decisions in
accordance with the Risk Management Policy (KMNR) based Bank Mandiri carries out the risk management process through
on regulations and best practices. the Enterprise Risk Management (ERM) framework which
The work unit as The Risk Management The Internal Audit Unit
uses a two-prong approach to ensure that risks are not only
the risk owner is the Unit serves as the serves as the third line
The Risk Management Framework at Bank Mandiri covers three properly mitigated through daily business processes, but also
first line of defense second line of defense, of defense, providing
main parts: Risk Oversight, Risk Policy and Management, and in unexpected conditions (downturn) through capital reserves.
responsible for performing oversight independent
managing the risks of functions. assurance functions.
Risk Oversight its work unit.
The Board of Directors and the Board of Commissioners are identification, risk measurement, risk mitigation, and risk control.
responsible for risk oversight. The function of risk oversight
is carried out by the Board of Commissioners through the Risk management at the Bank is structured as follows:
Audit Committee, Risk Monitoring Committee, and Integrated a) Directors overseeing the Risk Management function;
Governance Committee. b) Risk Management Unit (RMU);
c) Operational Units (risk-taking units);
The Board of Directors performs the function of risk oversight d) Internal Audit Unit (IAU); Specifically, Bank Mandiri also implements a 1.5 line of defense, which consists of a fraud detection unit and a Senior Operational
through the establishment of risk policies (risk policy & e) Compliance Unit. Risk Head to support the first line of defense in ensuring effective risk control.
management) with the Executive Committee related to risk
management, namely the Risk Management & Credit Policy Risk Management Unit (RMU), Internal Audit Unit (IAU), and
Committee, Asset & Liability Committee (singular), Capital & Compliance Unit are integrated as one unit. Managed Risks
Subsidiaries Committee, and Integrated Risk Committee. Bank Mandiri manages 10 types of risks in a consolidated manner, namely:
In the organizational structure established, the operational
At the operational level, risk oversight is carried out by the unit that performs transactions (Operational Unit) is separate
Risk Management Unit together with the Business Unit from the internal oversight unit (Internal Audit Unit) and is
and Compliance Unit, which perform the functions of risk independent of the Risk Management Unit. 1. Credit Risk 6. Reputational Risk
2. Market Risk 7. Strategic Risk
Risk Policy Management
Bank Mandiri has established the Risk Management Policy (KMNR) outlining the fundamentals of Risk Management Policy and 3. Liquidity Risk 8. Compliance Risk
serves as the main guideline and highest regulation in risk management at Bank Mandiri. KMNR serves as a reference for policies,
procedures, and guidelines in risk management in accordance with applicable provisions.
4. Operational Risk 9. Intra-Group Transaction Risk
Risk Identification, Measurement, Mitigation, and Control 5. Legal Risk 10. Insurance Risk
The company’s risk management process includes the c) Risk monitoring
following activities: Risk monitoring aims, among other things, to compare the
a) Risk identification risk limits set with the risk exposure being managed.
The purpose of risk identification is to determine the types d) Risk control ESG Risk is an emerging risk embedded in all related risks managed by the bank, including credit risk, liquidity risk, market risk,
of risks inherent in each functional activity that have the Risk control is carried out to prevent the occurrence of and operational risk. In its management, Bank Mandiri conducts a comprehensive risk management process encompassing
potential to harm the bank. breaches of the set risk limits that the bank can tolerate. ESG risk.
b) Risk measurement
The purpose of risk measurement is to determine the risk Bank Mandiri implements effective risk management practices
exposure inherent in the bank’s activities to compare it throughout its work units by applying the Three Lines of
with the bank’s risk appetite, allowing the bank to take Defense model.
risk mitigation actions and determine the capital to cover
residual risks.
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Governance Asessment
1. Credit Risk 6. Reputational Risk ESG RISK MANAGEMENT
In disbursing its credit, Bank Mandiri consistently emphasizes Reputational risk is the risk resulting from a decrease in
prudence by assigning credit analysis functions to business stakeholder confidence due to negative perceptions of the Scope of ESG Risk Management
units and independent credit risk units. The bank consistently bank.
Coordinating ESG aspects is also one of the priorities of Bank The ESG risk management system in the credit process
adheres to the Credit Policy (KPKD) in managing credit risks
Mandiri in the long-term business transformation. Through covers Bank Mandiri’s credit services for wholesale, retail, and
from end to end. 7. Strategic Risk the “Conduct Sustainable Business” stream, Bank Mandiri has treasury segments. Bank Mandiri establishes and implements
Bank risk management is regulated by a bank risk management
developed an ESG framework, roadmap, and initiatives with the Technical Guidelines for Environmental and Social Analysis
2. Market Risk policy formulated with reference to Bank Indonesia
a focus on transitioning to a low-carbon economy, reducing in Credit Provision, used as a reference for environmental
Market risk management is carried out by independent work Regulations (PBI), Financial Services Authority Regulations
emissions, and achieving net zero in the bank’s operations and analysis in credit provision analysis.
units by applying the principle of segregation of duties, (POJK), Basel provisions, and international best practices. This
enhancing social impact in achieving SDGs.
consisting of front office, middle office, and back office. The policy is regularly updated to anticipate changes in business
This is in accordance with the endeavors made by the
Market Risk Management Organization consists of two parts, conditions, regulations, and the bank’s internal conditions.
To achieve these targets, particularly in promoting the Financial Services Authority (OJK) regarding the Assessment
namely Market Risk Management - Trading Book and Market
transition to a low-carbon economy, Bank Mandiri continues of the Quality of Commercial Bank Assets, regulating that the
Risk Management - Banking Book. 8. Compliance Risk to identify, measure, and evaluate ESG risks, including climate assessment of debtor business prospects is also linked to the
Compliance risk arises from the bank’s failure to comply with
risks, particularly in financing aspects. debtor’s efforts in preserving the environment.
3. Liquidity Risk applicable laws and regulations.
Liquidity risk is the risk resulting from the bank’s inability to
meet its obligations from funding sources and high-quality 9. Intra-Group Transaction Risk ESG Risk Management System
liquid assets that can be utilized without disrupting the bank’s Bank Mandiri identifies and analyzes activities that may
activities and financial condition. increase Intra-Group Transaction Risk exposure and affect the ESG risk assessment in credit is conducted at all stages of The Business Unit conducts due diligence, if necessary, on
company’s performance. The identification of these risks is credit disbursement in an end-to-end and integrated manner credit applicants to delve into issues related to ESG, submitted
4. Operational Risk carried out in the business activities of Bank Mandiri and its by the Business Unit, Credit Operation Unit, and Credit Risk by the Business Unit to the credit decision-makers, where
Operational risk is the risk resulting from the inadequacy subsidiaries, taking into account transaction complexity. Management Unit. Each Business Unit conducts assessments this function is carried out by the Senior VP up to the Board
or malfunction of internal processes, human errors, system based on the Portfolio Guideline and then carries out a of Directors. Credit decisions are made independently by the
failures, and/or external events affecting the bank’s operations. 10. Insurance Risk pre-approval process using credit risk tools, including the Business Unit and Credit Risk Management Unit using the four-
Insurance risk is the risk resulting from the failure of the application of ESG aspects. For the wholesale segment, it is eyes-principles process.
5. Legal Risk insurance company to fulfill its obligations to policyholders determined in the Industry Acceptance Criteria (IAC), while
Legal risk is the type of risk faced by Bank Mandiri as a result due to inadequate risk selection processes, premium setting, for the retail segment, the assessment is carried out through The Bank periodically reviews and improves its credit policies in
of legal claims, whether from internal or external parties, or reinsurance use, and/or claims handling. a credit risk scorecard, with reference to the Risk Acceptance general, credit procedures per business segment, and specific
weaknesses in legal aspects such as the absence of supporting Criteria for each product. risk management tools, particularly for sectors with high ESG
regulations, weaknesses in contracts, or imperfect collateral and climate risks. Each Business Unit conducts more detailed
agreements. Bank Mandiri establishes risk appetite and industry appetite and in-depth assessments of each business activity to establish
in line with ESG issues in the Bank’s policies, as stipulated in requirements related to ESG in IAC and RAC, including based
the Industry Acceptance Criteria (IAC) technical guidelines in on input and involvement from regulators and other sources.
Details of the management of these types of risks can be found in the Bank Mandiri Annual Report in the Corporate Internal Regulation No.B3.P1.T16.IAC. Details of the business
Governance section. sectors covered can be found in the Sustainable Banking Bank Mandiri conducts a thorough analysis of sectoral
section of this report. portfolios through sensitivity analysis. The findings are then
showcased at the Board Forum and serve as a crucial reference
for internal business decision-making.
Monitoring of ESG Risks
The framework and governance of ESG Risk Management at Policy Committee (RMPC) is held on a quarterly basis with
Bank Mandiri involve active roles of the Board of Commissioners topics such as the performance of Sustainable Finance Action
and the Board of Directors. The Board of Directors monitors the Plans (SFAP), ESG trends, and discussions on critical issues
implementation and achievement of ESG targets through the related to ESG.
Risk Management & Credit Policy Committee (RMPC) forum in
accordance with the duties and authorities stipulated in the Furthermore, the Board of Commissioners oversees the
Board of Directors’ Decision of PT Bank Mandiri (Persero) Tbk, implementation of ESG, the fulfillment of ESG targets or
Number Kep.Dir/009/2021 regarding the Risk Management commitments through the Risk Monitoring Committee (KPR)
& Credit Policy Committee. The Risk Management and Credit forum, held on a quarterly basis with topics such as reviewing
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the effectiveness of ESG-related risk management and not met the minimum requirements will be subject to
supervision in financing activities. regular monitoring, the development of action plans, and
the establishment of necessary schedules.
Climate-Related Risks Mitigation
Bank Mandiri monitors compliance with ESG aspects in credit 2. Implementing the ALERT system as an early warning
disbursement according to bank policies, with the following mechanism to identify risks that could impact the quality
steps: of debtor credit. This will enable the implementation of Rising prices of raw materials and/or Conducting stress tests and creating a watchlist for continuous
1. Regularly monitoring compliance with ESG aspect preventive measures to avert a decline in credit quality, commodities due to climate change, monitoring to analyze customers affected by related issues.
weather issues, or crop failures.
requirements. Bank Mandiri regularly ensures that customer based on financial performance, industry prospects, and
project progress aligns with the established action plan. To compliance with ESG requirements.
ensure compliance with credit policies and procedures, 3. Conducting an annual review as a form of check and
Bank Mandiri also conducts regular reviews and audits balance for compliance with the latest internal credit policy Energy transition risks in countries Bank Mandiri adjusts its credit policy for the energy sector
conducted by the Internal Audit Unit. Debtors who have requirements, including ESG aspect requirements. that still rely heavily on coal as their utilizing coal in line with the government’s energy transition
main energy source, such as in plan.
Indonesia.
Climate Risk
Climate risk is an emerging risk embedded in key financial Bank Mandiri manages climate-related financial risks,
risks, such as credit risk, market risk, and operational risk. Bank starting from risk identification and the development of a Acute physical risks caused by Implementing a Business Continuity Plan and establishing
Mandiri has assessed key financial risks as expected and has extreme climate change, including data centers in various locations to mitigate customer
risk management framework, including conducting scenario
floods, landslides, and haze from transaction disruptions and protect against the risk of data
considered its ESG aspects. Climate risk is also embedded in analysis. The results of climate risk analysis are utilized to
forest fires. loss due to hydro-meteorological disasters.
every other type of risk managed by the Bank, including credit enhance the Bank’s resilience to climate risk impacts and
risk, liquidity risk, market risk, and operational risk, so Bank strengthen various initiatives and the integration of ESG Implementing BCM according to international standards
Mandiri conducts comprehensive risk management processes aspects in internal business processes. The impact of climate based on ISO 22301:2019 to create a resilient organization
in accordance with existing procedures, including for climate change on the sustainability of Bank Mandiri is based on the against potential internal and external threats through
risk. risk period, including: readiness of BETH3 components (Building, Equipment,
a. In the short term (1-2 years ahead). Climate change can have Technology, Human Resource & 3rd Parties).
Bank Mandiri has conducted an Initial Phase Climate Risk risk impacts on Bank Mandiri’s financing through potential
Stress Test for credit, market, and operational risks following impacts of government policy changes, inappropriate BCM also interacts with climate institutions such as the
the guidance from OJK. For credit risk, the Bank has identified technological developments, and shifts in consumer and Meteorology, Climatology, and Geophysics Agency (BMKG) to
credit portfolios with potential exposure to flood and forest identify and initiate early action plans and to socialize them to
investor preferences, resulting in carbonization transitions
all Mandiri employees.
fire disasters, as well as sectoral portfolios that are classified affecting borrowers’ profitability, cash flow, and asset value.
as high emission sectors and affected by government policies b. In the medium (5-10 years) and long term. Prolonged and
to control climate risk. For market risk, the Bank has identified severe climate impacts can threaten the environment, such
movements in the market value of the Bank’s securities as floods, landslides, heatwaves, food crises, and other
portfolio that fall into the high emission sector category as a natural disasters.
result of changes in government policies on carbon emissions.
Climate-Related Opportunities Response
Climate Risk Mitigation Investment in technology for Bank Mandiri has developed internal capabilities to
renewable energy, currently support the transition to green energy in that sector.
Bank Mandiri is committed to conducting business and the ESG aspects required by the Bank. In the future, Bank Mandiri experiencing growth. According As of December 2022, Bank Mandiri has financed 10
operations with a focus on ESG principles to become “Indonesia’s will strive to conduct more comprehensive climate risk impact to the Ministry of Energy and renewable energy projects.
Sustainability Champion for a Better Future.” This commitment is assessments, such as climate scenario analysis and testing credit Mineral Resources, in 2021,
the Bank’s response to supporting the government’s aspirations portfolios against climate risks, including transition and physical the use of renewable energy
for a low-carbon economy. risks. reached 11.5% of the total
national energy.
In sectors with high climate risks such as plantations, mining,
and energy, Bank Mandiri intensively monitors compliance with
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Involvement of the Governance Body in Climate Risks
The coordination of the management of aspects related to The Board of Directors is assisted in this matter by the Risk BUSINESS CONTINUITY MANAGEMENT
Environmental, Social, and Governance (ESG), including climate Management and Policy Committee (RMPC). The Risk Management
risks, at Bank Mandiri is carried out by the ESG Group under the and Credit Policy Committee (RMPC) is held on a quarterly basis
authority of the Managing Director in managing the framework, with topics including the performance of the Sustainable Finance Bank Mandiri acknowledges that climate change presents activities for each unit. Once critical activities are identified,
coordinating provisions that are in line with ESG issues and climate Action Plan (SFAP), ESG trends, and discussions on critical issues potential physical risks that may disrupt the company’s business units create Recovery/Business Continuity Plans
change, managing sustainable portfolio management, and the related to ESG aspects. capacity to deliver banking products and services and sustain regularly tested and involve both internal and external
Bank’s responsible operational strategy, including communication business operations under normal circumstances as well as in stakeholders.
functions and reporting to external and internal stakeholders. The Board of Commissioners plays a crucial role in managing ESG the face of interruptions or climate-related disasters, such as
Reports from the ESG Unit are then regularly submitted to the Board and climate-related aspects, particularly in ensuring the integration floods, droughts, landslides, and others. This has prompted Bank Mandiri’s developed BCM has been in line with the
of Directors as needed and to the Board of Commissioners with a of ESG and climate aspects in Bank Mandiri’s long-term goals, the company to establish policies to identify, test, implement, International Standard ISO 22301 for Business Continuity
and maintain Business Continuity Management (BCM) to Management Systems (BCMS) and received ISO 22301
minimum frequency of 4 times per year. including promoting efforts beyond compliance and adopting best
ensure the continuity of critical business operations and certification on May 9, 2023, from the global certification body
practices, as well as overseeing the management of sustainability
resources needed in the event of a disaster or disruption. British Standard Institution. BCMS certification is awarded
In the implementation of ESG and climate-related aspects, the and climate-related risks and opportunities. To carry out this task,
to companies that have implemented BCM programs in an
Board of Directors plays a role in strategic functions by: the Board of Commissioners is supported by the Risk Monitoring
BCM is a critical process for a company to maintain or recover end-to-end in accordance with international standards. Bank
integrating ESG aspects bank-wide, establishing the Bank Committee (KPR). The Risk Monitoring Committee (KPR) forum is
normal business operations in the event of a disaster. It is Mandiri became the fourth KBMI bank in Indonesia to receive
Mandiri Sustainable Finance direction covering the Framework, held on a quarterly basis, including discussions on the effectiveness
defined as a framework for identifying and preparing the ISO certification. Through this certification, Bank Mandiri
Commitment, Strategy, Initiatives, Roadmap related to climate of ESG-related risk management and oversight in financing
organization for potential internal and external threats so that has adopted international standards in Business Continuity,
targets and SDG achievements; activities.
business functions can continue smoothly in the event of a effectively mitigating the risk of operational disruptions and
carrying out supervisory functions related to ESG and climate
disaster or disruption, while also safeguarding the interests of ensuring the seamless operation of customer services even
risks and opportunities, implementing Sustainable Finance, The functions and obligations of the Board of Directors and
stakeholders, the company’s reputation, and brand. Effective in the face of disasters or incidents. Currently, 14 main service
ensuring the successful achievement of ESG targets and the implementation of sustainable finance at Bank Mandiri are BCM can minimize potential financial losses, reputational units of the bank (Payment, Settlement, Cash Processing,
initiatives; stipulated in Board Decision No. KEP.DIR/009/2021 dated January damage, and legal liabilities in the event of disruptions or Treasury & Information Technology) have been certified, and
being accountable in ensuring the achievement of sustainable 13, 2021 regarding the Risk Management & Credit Policy Committee disasters. It is also a form of implementing the bank’s vision, critical units will continue to be the focus of standardization
aspirations to stakeholders; and and Board of Commissioners Decision No. KEP.KOM/007/2022 dated mission, and business strategy, and is a shared responsibility in the future.
fostering necessary collaborations and partnerships to November 18, 2022 regarding the Charter of the Risk Monitoring across the entire bank.
accelerate the Company’s progress in achieving SDGs and Committee. The ESG Group, a special body, is established in To ensure service continuity, Bank Mandiri regularly conducts
climate targets. accordance with Board Decision No. KEP. DIR/32/2022 dated Bank Mandiri’s BCM organization is overseen by the Risk Business Continuity Plan (BCP) tests. BCP tests are mandatory
September 12, 2022. Management & Credit Policy Committee and is a working unit and must be conducted at least once a year by all critical
within the Operations Directorate. Bank Mandiri’s BCM has business units identified through Business Impact Analysis.
Climate Risk Resilience been in place since 2016 and is led by the Head of BCM. Given the increasing threats, both IT and Non-IT, in 2023, the
bank expanded the scope of units participating in BCP testing
During the reporting period, Bank Mandiri has conducted a policies for climate risk control. For market risks, the Bank Bank Mandiri’s BCM implements the BETH3 framework, to include non-critical units.
climate risk resilience assessment based on OJK Letter No. identifies movements in the market value of its securities which covers Building, Equipment, Technology, Human &
S-16/PB.013/2023, requiring KBMI 3 & 4 banks to assess climate portfolio in high emission sectors due to changes in government 3rd Party, encompassing the Head Office, Regional Offices, To ensure the reliability and resilience of applications,
risks in their portfolios. In this assessment, climate-related risks policies related to carbon emissions. Branch Offices, and overseas office networks, with guidance infrastructure, and networks, Bank Mandiri performs
are compared with an initial qualitative assessment related to from Standard Operating Procedures (SOP) and supported by Disaster Recovery Plan (DRP) tests for applications, providing
credit, market, and operational risks, specifically flood risks for We analyze the operational and property risks of Bank Mandiri Operational Technical Instructions (OTI) related to Incident customers with the assurance that the bank’s systems
residential and commercial property-backed credit portfolios, as related to drought/forest fires/floods, which, based on the Management and Preparedness. Preparedness is an important continue to function seamlessly.
well as drought/forest fire risks for corporate and SME portfolios assessment, have the potential to cause damage and losses process for the organization to address disasters/disruptions
in the forestry and plantation sectors. to the Bank’s technological systems and properties, as well as through Risk & Threat Assessment, Business Impact Analysis, Testing approaches include Table Top Simulations and Call
disruptions to employee mobility and health. In this scenario, the Recovery Strategy, as well as Exercises and Testing. In facing Trees, where Table Top Simulations involve face-to-face
The assessment provides an overview of potential losses and Bank has a Disaster Recovery Plan that includes a contingency Incident Management, the bank follows processes for simulations of disaster/disruption events and Call Trees test
their impact on credit, market, operational, and capital risks for plan for catastrophic events. Response, Recovery, and Restoration to minimize risks. the readiness of each party with a role in disaster/disruption
the Bank. For transition risks, the assessment is conducted for management.
portfolios in high emission sectors, considering the projected Bank Mandiri will continue to develop climate risk stress testing BCM at Bank Mandiri functions to refine and provide general
impact of increased carbon emissions and government policy in accordance with regulatory guidance and the Bank’s needs guidelines in preparing business units to address and protect In addition to online and face-to-face approaches, Bank
changes on credit, market, operational, and capital risks for in planning climate risk management for its portfolio. With the bank from various IT & Non-IT impacts and to maintain the Mandiri also conducts training for emergency response and
the Bank. Transition scenarios use NGFS scenarios as per OJK advancing technology, the development of specific models continuity of critical business functions and other important disaster management, including fire, flood, and earthquake
guidelines, namely Net Zero 2050, Delayed Transition, and and analytics will be needed to quantify the impact of climate services for customer service. drills, routinely at branch office levels. Emergency response
Current Policies. and environmental factors, as well as more detailed and current readiness is consistently upheld through the Emergency
data and information, scenarios, and assumptions in line with As part of the preparedness process, business units regularly Response Plan (ERP) procedure, along with drills and training
For credit risks, portfolio segments with potential vulnerability regulatory guidance. evaluate potential risks at each location and identify critical involving third parties, as well as regular disaster call tree
to flood and forest fire disasters are identified, as well as sectors
classified as high emission sectors and affected by government
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exercises. Additionally, system readiness is ensured in potential IT disruptions through the Remedy System. BCM Ethics and Anti-fraud
anticipation of national events that could impact the bank’s integrates all this information into a cohesive whole through
business operations. the BCM System Application.
Internal Audit Unit
The bank always ensures the safety of all employees, their The capabilities of the BCM System, enabling for analysis,
families, and customers through the readiness of the monitoring, and reporting processes summarized in a
Emergency Response Team (ERT). To ensure the safety of standardized format on a single dashboard, can be utilized Organization. Authority. Duties, and Responsibilities
lives, the bank enhances the ERT’s capabilities through not only by the BCM Head Office but also by Regional Offices, 1. Board of Commissioners c. Together with the Board of Commissioners, ensuring
certification/competency tests conducted by institutions such Branch Offices, overseas offices, and subsidiary companies. In carrying out the internal audit function, the authority, that internal audits in the Subsidiary Company are
as BASARNAS, which all Bank Mandiri employees in Indonesia At each level, there exists a crisis management team with its duties, and responsibilities of the Board of Commissioners conducted using audit standards at the Bank.
participate in, in collaboration with other institutions such as respective functions. refer to the Internal Control Policy (KICN). 5. Board of Directors
BMKG and TNI/POLRI. The certification aims to enhance the 2. Audit Committee In addition to the authority, duties, and responsibilities
ERT’s competency in search and rescue operations, ensuring As part of Bank Mandiri, the subsidiary company also stated in the Internal Control Policy (KICN), regarding the
In carrying out the internal audit function, the authority,
they have the skills to carry out life-saving processes. standardizes BCM through the Alignment of the 3 Pillars,
duties, and responsibilities of the Audit Committee refer to implementation of the Integrated Internal Audit Function,
covering Governance & Procedure, Preparedness, and Crisis
the Audit Committee Charter. the Board of Directors is responsible for the following:
Since 2021, BCM Bank Mandiri has consistently pursued Management to enhance the value of the subsidiary company.
3. Integrated Governance Committee a. Ensuring that audit findings and recommendations
innovation as a means of continuous improvement by Bank Mandiri’s Business Continuity Management is committed
In carrying out the internal audit function, the authority, from the Internal Audit Unit, external auditors, and
digitalizing processes. The rapid dissemination of information to ongoing innovation. Both now and in the future, BCM will
duties, and responsibilities of the Integrated Governance regulators have been followed up by the Subsidiary
and communication pertaining to disasters and IT incidents persist in safeguarding the security and continuity of services,
is paramount in the business continuity process. This is employees, and their families, leveraging existing and Committee refer to the Integrated Governance Committee Company within the Financial Conglomerate;
exemplified by the real-time monitoring of potential natural advancing digitalization. Charter. b. Performing supervisory functions over the Subsidiary
disasters via the Natural Disaster Notification System and 4. President Director Company within the Financial Conglomerate in
In addition to the authority, duties, and responsibilities accordance with the division of tasks.
stated in the Internal Control Policy (KICN), the President 6. Internal Audit Unit (SKAI)
Director is responsible for the following matters: To uphold independence and objectivity in expressing
a. Providing guidance on the scope and activities of the views and thoughts, free from influence or pressure from
Internal Audit Unit; Management or other parties, the Board of Commissioners
b. Together with the Board of Commissioners, approving reports directly to the President Director and has the
the Annual Audit Plan and budget allocation, taking authority to communicate directly with the Board of
into account the Audit Committee’s recommendations; Directors and the Audit Committee.
Code of Conduct
Bank Mandiri upholds integrity in accordance with the values of AKHLAK instilled in all Mandirians since recruitment and
throughout their work. The Code of Conduct of Bank Mandiri serves as the benchmark for behavior, governing the ethical conduct
of Mandiri’s interactions with other stakeholders.
The Board of Commissioners, Board of Directors, and all Mandirians are required to apply the Code of Conduct at all times to
create an honest and ethical work environment. Internalization of the Code of Conduct commences with Onboarding for New
at Level for new employees, introducing the Code of Conduct, Business Ethics, ethical compliance statements, or Employee
Statements, making annual disclosures that contain all circumstances or situations that may lead to violations of non-compliance
Implementation of Disaster Recovery Plan Trial involving IT with the code of conduct, management commitments, integrity pacts, and Employee Discipline Regulations in the Collective
units and Business units Labor Agreement (CLA).
Topics in the Code of Conduct
Conflict of Confidentiality Abuse of position Insider behavior Sustainable Integrity of the Integrity and
interest and gratification financial system banking system accuracy of bank
data
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Tentang Laporan
Keberlanjutan
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
Code of Conduct and Business Ethics Training Code of Conduct Violation Investigation
Bank Mandiri offers comprehensive training on the Code Conduct is conducted through multiple channels, including Prior to commencing an investigation, an initial assessment Out of152 cases investigated, 31 were related to violations of
of Conduct for all employees, both through in-classroom Bank Mandiri’s intranet, email, banners, flyers, and various is conducted to determine whether the available the Code of Conduct (employee code of conduct), including
sessions and e-learning. The dissemination of the Code of other media within the organization’s environment. information is sufficient to warrant an investigation. The gratuities, bank secrecy breaches, embezzlement of office
investigation progresses through various stages: preparation, funds, leadership style, etc.
implementation, reporting, and follow-up monitoring. An initial
review of the information is essential to determine whether the In carrying out the fraud prevention and monitoring function,
CODE OF CONDUCT AND ETHICAL STANDARDS TRAINING indications of deviations leading to financial losses for the Bank SIV has undertaken several prevention activities through efforts
are sufficient to warrant an investigation. to increase fraud awareness and monitoring of internal control
improvements, including:
Information indicating fraud may be sourced from: 1. Conducting Fraud Awareness sessions with HCEOM Group
76 12.730
1. Directors, Audit Committee, Board of Commissioners. for employees in 12 Regions and the Internal Audit of 5
2. General Audit Findings from IAU. selected Subsidiaries with a high potential for fraud.
Training Titles Training Participants 3. External Audit Findings (BI, OJK, BPK, Public Accountants, 2. Creating a monitoring dashboard to prevent and detect
etc). fraud in acquiring the personal loan (KSM) application
4. Other sources include information from other work used by SIV, Senior Operational Risk (SOR) Distribution
units, employee complaints, LetterTo CEO (LTC), public & Consumer, and Regional Business Control (RBC) in 12
Annual Disclosure complaints, mass media, etc. Regions.
3. Conducting an assessment on the Small Medium Enterprise
Bank Mandiri is committed to conducting business in a responsible and comprehensive manner, and this
commitment is personalized for each Mandiri employee through the annual signing of a Statement Letter. The findings of the information review are recorded and (SME) Credit Segment and the personal loan (KSM)
This commitment also extends to the Bank’s business partners. presented to the Senior Investigator Head (SIV) or Chief Audit application acquisition process.
Executive (CAE) with sufficient reasons to conclude whether 4. Developing indicators or measurement indices in the Work
an investigation should be conducted and proposals for the Unit KPIs calculated from the cumulative value of violations
composition of the Investigation Team. and fraud occurring in the related Work Unit in the form of
Internal Control Score (ICS).
Code of Conduct Monitoring During 2023, SIV conducted investigations in 52 cases and 5. Conducting investigation workshops to enhance employee
The supervision of Management in enforcing the Code of In carrying out the supervision function, the Board of was involved in 100 cases as the Activity Investigation System competencies in fraud prevention and investigation
Conduct includes oversight by the Board of Directors related Commissioners ensures the implementation of the Code Mentor for Regional Business Control (RBC) and the Internal processes for Regional Business Control (RBC) in 12 Regions
to the implementation of integrity and ethics, which is part of of Conduct bankwide through audit mechanisms. In the Audit of Subsidiaries, including joint investigations. and 5 Subsidiary Internal Audit Units with speakers from SIV.
the Internal Control System Implementation. In this oversight, process, the Audit Committee performs audit functions and
the Directors ensure the growth of a corporate culture that presents Significant Findings Reports from the audit process
upholds the ethical values and integrity of all Mandirians, to the Board of Commissioners (based on Board of Directors
making Management a role model that fosters everyone’s Decision No. KEP.DIR/030/2023 on Organizational Structure SIGNIFICANT FINDINGS REPORTING PROCESS
involvement and instills a risk culture at all levels of the dated August 4, 2023).
organization.
Code of Conduct Audit The Audit
The report is
The Audit Manager Operation The report is
The enforcement of the Code of Conduct is carried out jointly This has been stipulated in the Internal Audit Charter, then presented
prepares a summary Department then presented
in internal audit activitiesconducted by the Internal Audit Unit approved by the President Director and the Chairman of the to the CEO and
of Significant Findings compiles the to the CEO and
(IAU), which is authorized to conduct investigative activities, Board of Commissioners of Bank Mandiri, last updated on the Board of
to be submitted to Significant the Board of
including within the Bank, Subsidiaries, and affiliates, in February 15, 2022. The implementation of internal audit in Commissioners
the Audit Operation Findings Report Commissioners
accordance with applicable governance. Investigative activities the reporting period can be found in the Bank Mandiri 2023 through
Department. from all audit through the Audit
may cover cases/issues in every aspect and element of Annual Report in the Corporate Governance section. To enforce the Audit
departments. Committee.
activities indicating fraud and violations of the code of conduct the implementation of the Code of Conduct, Bank Mandiri Committee.
within the Bank, Subsidiaries, and affiliates, in accordance with conducts regular audits of ethical standards as part of the
applicable governance. IAU is responsible for maintaining specific internal audit agenda which covers all aspects of the
independence and objectivity in expressing its views without Bank’s operations, particularly in the ‘people’ aspect. Audits Basis of audit implementation:
influence or pressure from Management and other parties. IAU related to ethical standards, or the Code of Conduct, are part of • Internal Audit Standard Operating Procedure (SPIA) • Human Resources Standard Operating Procedure number
reports directly to the President Director and can communicate annual mandatory audits. Significant findings from these audit number S32.P1.IAU year 2023. S.14. P1.SDM year 2022
• Internal Audit Technical Instructions (PTIA) number S32. • Internal Control Policy K.2 year 2023 (Edition 3).
directly with the Board of Directors, Board of Commissioners, activities are reported to the Audit Committee every quarter.
P1.T1.IAU year 2022.
and Audit Committee.
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Anti-fraud ANTI-BRIBERY
Fraud encompasses any form of dishonesty in banking the risk of fraud in financial services is also increasing. Fraud Bribery and gratification are among the integrity and business KEP.DIR/64/2021. Bank Mandiri applies a gratification
practices, such as cheating, fraud, embezzlement of assets, occurrences can lead to losses for the Bank and its customers, ethics matters that are taken seriously to ensure that banking reporting system directly supervised by the Director of
information leakage, banking crimes, corruption crimes, impact reputation, erode public trust, and disrupt financial business processes are conducted with care, fairness, and Compliance and Human Capital and reported monthly to
and other actions that are considered fraudulent under the stability. In response, Bank Mandiri has implemented a zero- transparency. In order to prevent bribery cases, Bank Mandiri the Corruption Eradication Commission (KPK);
provisions of the legislation. At Bank Mandiri, fraud also tolerance commitment to corruption, fraud, and gratuities. has established the Anti-Bribery Management System Audit 2. Implementing provisions for a gratification control
encompasses actions that violate the employee discipline Team (SMAP). In line with Note No. IAU.WCA/CA.242/2022 from program within Bank Mandiri’s environment, updated
regulations of the Bank. Bank Mandiri has implemented a comprehensive Anti-fraud the SMAP Audit Team, an audit has been conducted using the annually or as required by Bank Mandiri, and continuously
Strategy covering all Policies, Standard Operating Procedure, ISO 37001:2016 Anti-bribery Management System. enhanced in alignment with the Bank’s development and/
As the volume of banking transactions, financial incentives, Operational Technical Instructions, and other arrangements in or compliance with legal provisions, culminating in the
and business environment advancements continues to rise, accordance with regulatory requirements. In order to prevent gratification practices, Bank Mandiri applies program’s refinement in 2022.
the following gratification control processes: 3. Socializing the gratification control program to all
1. Establishing a Gratification Control Unit, which is part employees and stakeholders of Bank Mandiri.
of the Compliance Work Unit as the coordinator of
ANTI-FRAUD STRATEGY gratification control at Bank Mandiri in accordance with
GRATIFICATION CONTROL SCHEME
Pilar 1 Pilar 2 Pilar 3 Pilar 4
Online Gratification Report (OGR)
Prevention Detection Investigation, Monitoring, Evaluation, Directly to KPK (copy to UPG) Issuance of KPK
Reporting, Sanctions, and Follow-up Decree State Owned
and Legal Process
In all work units in The entire unit, The handling of fraud Monitoring the
order to reduce the including the first through investigation follow-up of Owned by
Bank Mandiri Report via email Bank Mandiri
potential for fraud line, second line, and and reporting to investigation results or the
ranks to UPG
Anti-fraud aware- third line of defense, the CEO, Board of and evaluation of Reporting
ness through the is responsible for Party
Commissioners, and fraud incidents, to Clarification and
socialization of identifying and Verification
Regulator. improve weaknesses
the Anti-Fraud detecting fraud in
Delegating and strengthen
Statement, Em- the bank’s business
the authority internal control Copy to Head of Gratification Verification Analysis
ployee Awareness activities. Work Unit Control Unit (Manager’s
Program, and Cus- Whistleblowing. to conduct systems in order to Authority)
tomer Awareness Fraud detection investigations and prevent recurrence.
Program system in the impose sanctions Reporting in
Issuance of UPG Belongs to
Identification of retail transaction to each region writing to the Decree the Reporting
vulnerabilities segment and to expedite the President Director Party
through policies retail credit (micro, handling of cases and Board of
and procedures, consumer, and and recovery. Commissioners is
job descriptions, SME). Owned by
carried out in an Bank Mandiri
and annual disclo- Surprise audits,
orderly manner
sure. especially in high-
for monitoring
Know Your Em- risk or vulnerable Determination of
ployee (KYE) policy business units. the list of follow- Ownership Status
during employee Surveillance up actions that
recruitment. system to monitor have been
and test the determined.
effectiveness of
the internal control
system.
284 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 285
Page 21
Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
APPLICATION TO BUSINESS PARTNERS governance considerations. In line with this commitment, the
bank has conducted Vendor Meetings with various suppliers
and business activities of its supplier partners. This includes
measures to prevent child labor and ensure fairness in
Bank Mandiri requires business partners comprehend and procurement.bankmandiri.co.id/); engaged with the company. During these meetings, Bank business operations. By incorporating ESG considerations
adhere to identical policies on anti-corruption, anti-fraud, 2. Obligation to sign an Integrity Pact for all business partners; Mandiri has extensively communicated the three facets of into its relationships with suppliers, Bank Mandiri aims
and anti-gratification. Throughout the reporting period, 3. Statement of Commitment to Ethical Procurement during ESG to its supplier partners, illustrating the interconnection to generate a more significant positive impact on the
all (100%) of Bank Mandiri’s business partners have been the procurement process for all goods and services between operational activities and the suppliers’ business. environment and society. The bank not only incorporates ESG
provided with guidance on these policies. The enforcement of providers invited; Furthermore, the procurement of goods and services at Bank criteria into its procurement of goods and services but also
Business Integrity among supplier partners is reinforced by the 4. Regulation of anti-bribery and anti-corruption in contracts/ Mandiri strictly follows Standard Operating Procedures (SOP) proactively educates and encourages its supplier partners
incorporation of the ISO 37001:2016 Anti-Bribery Management employment agreements; and Operational Technical Instructions (OTI), ensuring that the to uphold these principles. This initiative underscores Bank
System in the Procurement and Vendor Management domains. 5. Annual dissemination related to gratification through procurement process complies with legal regulations. Mandiri’s dedication to making a positive contribution to the
vendor meeting events. environment and society through sustainable procurement. A
1. Prohibition for business partners to provide gratuities As a tangible step towards advancing ESG principles in more comprehensive exploration of the procurement practices
on the Procurement Bank Mandiri website (https:// procurement practices, Bank Mandiri actively promotes implemented at Bank Mandiri will be presented in the context
the integration of these three aspects into the operational of Sustainable Financial Governance.
PROCUREMENT PRACTICES [GRI 3-3],
The process of procuring goods and services at Bank Mandiri 2. Application of risk management principles, including COMMUNICATION AND ANTI-CORRUPTION TRAINING [GRI 205-2]
adheres to the Procurement Standard Operating Procedures identification, assessment, mitigation, monitoring, and
(SPO) and Operational Technical Instructions (PTO). These measurement of operational risks; Communication and Anti-Corruption and Anti-Fraud Training by Region
documents require the procurement process to comply with 3. Under the guideline of Bank Mandiri’s work culture, based
legal regulations, including procurement carried out in foreign on the following values: The organization has communicated
Attended anti-corruption and anti-
branches. These documents also contain comprehensive a. Core values of AKHLAK (Amanah, Kompeten, Harmonis, about anti-corruption and anti-fraud
Location fraud training
guidelines to facilitate the implementation of procurement Loyal, Adaptif, and Kolaboratif); policies and procedures.
activities, standardize implementation across all work units, b. Corporate culture;
Amount % Amount %
clarify responsibilities, and enhance control functions in the c. Good Corporate Governance (GCG);
implementation of procurement of goods and services. d. Compliance with the code of conduct, business ethics, Head Office*) 12,389 32.43 3,588 32.29
and the implementation of precautionary principles. Sumatera (Region 1. 2) 4,779 12.51 1,064 9.58
Bank Mandiri ensures that all procurement processes comply Jakarta (Region 3. 4. 5) 7,309 19.13 2,389 21.50
with the principles of Good Corporate Governance (GCG) A structured and systematic procurement framework is
Java (Region 6. 7. 8) 7,770 20.34 2,057 18.51
and comply with applicable legal regulations. In addition, established to prevent the misuse of authority and collusion
Kalimantan (Region 9) 1,929 5.05 953 8.58
Bank Mandiri also applies risk management principles in the for personal or group gain, which could jeopardize Bank
procurement process, as follows: Mandiri. Bank Mandiri also guarantees the absence of conflicts Sulawesi & Maluku (Region 10) 2,086 5.46 468 4.21
1. Separation of functions in the Procurement Implementation of interest among the involved parties in the procurement of Bali & Nusa Tenggara (Region 11) 1,158 3.03 408 3.67
Unit, including the unit responsible for supplier/vendor goods and services. Additionally, all parties are obligated to Papua (Region 12) 756 1.98 184 1.66
selection, the unit overseeing the procurement process, refrain from engaging in corruption, collusion, nepotism, and
Total 38,198 100 11,111 100
the unit formulating estimated prices, and the Compliance any form of gratuity during the procurement process.
Work Unit.
SUPPLIERS RECEIVING ANTI-CORRUPTION COMMUNICATION
Sustainable Procurement
Description Amount Percentage
In its procurement of goods and services, Bank Mandiri has Operation in 2030, Bank Mandiri is leveraging sustainable
Service Provider 659 42%
partnered with third-party suppliers to facilitate its operational procurement as part of its strategy, in accordance with global
activities. In alignment with SDG 12: Responsible Consumption standards. Furthermore, the bank has obtained ISO 37001:2016 Supplier 895 58%
and Production, the company encourages its current and certification for its Anti-Bribery Management System within
Total 1,554 100%
potential suppliers to incorporate sustainability into their the scope of Procurement & Vendor Management.
business and operational processes. The implementation of
ISO 20400:2017 aligns with SDG 12 and offers guidance for Bank Mandiri has emphasized to its suppliers the importance
organizations seeking to integrate sustainable procurement of understanding ESG criteria, highlighting that these criteria
practices. Committed to achieving Net Zero Emission by encompass not only environmental aspects but also social and
286 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 287
Page 22
Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
WHISTLEBLOWING SYSTEM [GRI 2-26] REPORTING MEDIA
SMS & WHATSAPP PHONE MAIL
0811-900-7777 0811-900-7777 PO BOX 1007
JKS 12007
EMAIL WEBSITE
bmri-wbsltc@tipoffs.info bmri-wbsltc.tipoffs.info
TABLE WBS-LTC
Report
Reporting Media
Classification Report Report
Year Mail SMS/WA Fraud
Non- Followed Up Completed
Email Website Others
Fraud
2023 9 42 55 60 46 43 78 167 167
2022 1 47 66 23 30 55 52 137 137
The Whistleblowing System (WBS) mechanism of Bank Mandiri with the classification of the report. In the reporting year, 2021 2 28 30 17 26 29 22 77 77
is a means of reporting complaints and violations under the PT Deloitte Advis Indonesia has been designated as the third
name Whistleblowing System – Letter to CEO (WBS-LTC) which party.
is formal and confidential. WBS-LTC aims to implement the
pillar of detecting fraud or indications of fraud, to promote WBS-LTC ensures the confidentiality of reporting data, LHKPN POLICY
awareness and concern among all Mandirians. safeguarding both the reporter’s identity and the information
they provide. Bank Mandiri offers protection to individuals Bank Mandiri has a policy regarding the implementation of the LHKPN administrators, and the sanctions that can be imposed
To minimize conflicts of interest and prevent retaliation, the submitting reports on disciplinary violations and breaches State Officials’ Wealth Report (LHKPN) based on the Board of on employees who fail to fulfill their reporting obligations.
reception of WBS-LTC reports is managed by an independent of regulations, provided that the information is truthful, fact- Directors’ Decision No. KEP.DIR/037/2022 dated October 25,
third party, subsequently documented on the Web Client based, and not fabricated, and that the whistleblower is not 2022 concerning the State Officials’ Wealth Report (LHKPN) Further information on the management of LHKPN at Bank
WBS-LTC platform. These reports are then forwarded to the implicated in the reported misconduct. within PT Bank Mandiri (Persero) Tbk. This policy regulates the Mandiri can be found in the Bank Mandiri’s 2023 Annual Report,
Compliance & AML-CFT Group for further action in accordance obligation of the company’s employees to report their wealth, in the Corporate Governance section.
the procedures for submission, the managing work units,
288 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 289
Page 23
Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
PREVENTION OF MONEY LAUNDERING CRIMES Stakeholder
In accordance with the regulations, Bank Mandiri implements
strategic measures to mitigate the risks of money laundering,
responsible for implementing the AML and PTF programs in
their respective supervisory areas.
Management [OJK E.4] [GRI 2-29]
terrorism financing, and the proliferation of weapons of Bank Mandiri engages with stakeholders to establish effective implementation of Corporate Social Responsibility (CSR) across
mass destruction through the implementation of the Anti- The company’s active role in AML, PTF, and PPWMD is realized communication, ensuring that the community can experience the organization, including in decision-making, strategies, and
Money Laundering (AML), Prevention of Terrorism Financing through cooperation with the Financial Action Task Force the benefits of the bank’s presence and to uphold the bank’s published reports.
(PTF), and Prevention of Proliferation of Weapons of Mass (FATF) and the assessment of the Financial Integrity Rating reputation. Stakeholders, who are influential individuals or
Destruction (PPWMD) programs based on risk in its operational (FIR) by the Indonesian Financial Transaction Reports and groups, are both impacted by and can impact the bank’s Bank Mandiri actively engages with all stakeholders through
and business activities. Bank Mandiri has established Special Analysis Center (PPATK). performance. open and constructive methods. This interaction occurs daily
Work Units at its headquarters, regions, and branches, and takes various forms, including the provision of information,
The Bank employs a 360° methodology to identify presentations, dialogues, and accessible channels for receiving
stakeholders, recognizing six primary stakeholder groups: public input.
Five Pillars of AML CFT & PPWMD shareholders, the community, Mandiri employees, regulators,
customers, and partners. Bank Mandiri consistently engages Bank Mandiri has identified the following stakeholder groups:
with stakeholders, valuing their input and perspectives in the
Active Policy and Internal Active Supervision Active Pemangku Kepentingan Internal
Supervision procedures Control of the Board Supervision
of the Board of Directors of the Board Stakeholder Method of
of Directors and Board of of Directors Main issues Frequency Bank Mandiri’s Responsibilities
and Board of Commissioners and Board of Groups Engagement
Commissioners Commissioners
Mandirian Employee Employee rights According to Grant full rights to employees regarding the
Establishing Implementation, Ensuring the Supporting applications Establishment (Employees) Engagement Enhance the needs established CLA
policies and updating, and effectiveness include: and operation
Employee relationship Conduct regular meetings in various forums
standard improvement of programs in • Internal AML of Special Work
Satisfaction Survey effectiveness between management and employees
procedures for in line with the operational and application, which Units and regular
Performance between Measure organization, leadership,
, updating the development of business activities, meets the reporting and continuous
assessment of regulations and including: specifications to the training to improve evaluation management career development, relationships and
bank’s money international • Providing reviews, Financial Transaction the understanding and employees communication, compensation benefits, job
laundering best practices advice, and Reports and Analysis and awareness suitability, contribution/opportunity to give the
and terrorism periodically recommendations Center (PPATK), of all Mandiri best, and work groups
financing risks for the • Terrorist Financing employees.
Familiarization Foster Regularly Carry out familiarization of ESG
(Individual Risk development Information
E-Learning awareness implementation to 2,205 individuals covering
Assessment), of products, Exchange System
regularly activities, services, (SIPENDAR), related Campaign among 34 work units, 5 ODP batches, 12 regions, and
discussing and technology, to the submission employees 10 subsidiaries
relevant topics • Monitoring of terrorism-related Organize mandatory ESG Awareness Level 1
and issues, and and evaluating reports to PPATK E-Learning, attended by 27,844 Mandirians
involvement in through the • Terrorist Financing Implement a campaign through desktop
related strategic On-Desk Review Information wallpaper installed on 57,720 Mandirian PCs
activities. & Monitoring Exchange System and Notebooks
(ODRM) and Spot (SIPENDAR), related Measure employee understanding through
01 02 Checks programs, to the submission 05 an ESG Awareness Survey which has been
• Inspecting the of terrorism-related
participated by 7,660 Mandirians
implementation reports to PPATK
of programs • Suspicious Financial Directors and Internal Discussion Develop According to Conducted Internal Discussion Forums
by internal or Transaction Database, Commissioners Forum understanding needs twice both online and offline, attended
external auditors. as part of the and awareness by 459 participants including the Board of
evaluation of the
related to ESG Directors, Board of Commissioners, SEVP,
Origin of Criminal Acts,
Subsidiary Directors, Ministries representatives,
performance/Service
Regulators, and international institutions
Level Agreement, and
decision-making input.
03 04
290 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 291
Page 24
Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
Pemangku Kepentingan Eksternal
Stakeholder Method of Stakeholder Method of
Main issues Frequency Bank Mandiri’s Responsibilities Main issues Frequency Bank Mandiri’s Responsibilities
Groups Engagement Groups Engagement
Shareholders General Meeting of Improved According to Strengthening the abilities, skills, and Partners Employment Transparency According to Collaboration and dissemination of information,
Shareholders performance of needs expertise of employees contracts in procurement needs including:
Other routine Bank Mandiri Improving company performance Evaluation of processes Creating employment contracts.
meetings Positive growth of employment Supervising and evaluating employment
stock value contracts contracts
Imposing sanctions for termination of
Community Social and Welfare According to Optimizing the TJSL program
cooperation contracts in case of violations
Environmental Financial literacy needs Increasing the number of new partner
Organized a Vendor Meeting, inviting
Responsibility relationships
>618 BMRI vendors to discuss Sustainable
Program Providing broader financial planning
Procurement
Education and consultations and training to the general
Conducting collaboration and information
understanding public
dissemination, including creating work
related to the
contracts, monitoring and evaluating
effective use of
work contracts, and imposing termination
financial services
sanctions on cooperation contracts in case
Regulator Annual Report Compliance with According to Periodic evaluation as a tool to measure of violations.
and Sustainability regulations needs compliance effectiveness with applicable
Report Good corporate regulations
Payment of governance Enhancing programs:
taxes, levies, and a. Anti-Corruption
Non-Tax State b. Anti-Money Laundering and Prevention
Revenue (PNBP) in of Terrorism Financing (APU-PPT)
accordance with Enhancing cooperation of CSR programs
regulations with the Government
Participation in
events organized
by regulators
for compliance
communication
Customers Complaint Financial literacy According to Providing consultation and dissemination of
mechanism Access to financial needs information, including:
Customer services Ensuring service and guaranteeing the
satisfaction survey Product security quality of financial products
Quality services Data security Organizing complaint mechanisms and
and products follow-ups
Customer Conducting customer satisfaction surveys
Gathering Maintaining customer privacy
Holding Customer Gathering forums
292 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 293
Page 25
About the Sustainability Report Bank Mandiri publishes a sustainability report (‘report’) annually along with the publication of the company’s annual report.
Page 26
About the
Sustainability Report
About the Material Topic Sustainability GRI Content Index List of Disclosures SDG’s link in Feedback Sheet
Sustainability Report and its Boundary Performance Data following POJK-51/2017 GRI Standards
About the Sustainability Report Material Topic and
its Boundary [GRI 3-1]
This report outlines our achievement of sustainable January 1 to December 31, 2023, and serves as a continuation
financial objectives through the Company’s business, of the 2022 Sustainability Report published in February
products, and financial services, covering environmental, 2023. The report is issued annually and does not restate This sustainability report covers ESG topics that are material 3. Assessing the significance of these impacts. Bank Mandiri
social, and governance (ESG) initiatives, performance, and data from previous reports. Through the preparation of this to Bank Mandiri’s banking operations within the framework of engages stakeholders through materiality-level surveys
implementation in the 2023 reporting year, with an emphasis sustainability report, Bank Mandiri aims to foster the trust of sustainable finance. The ESG Group of Bank Mandiri and other during the second and third steps. In determining these
on material topics related to ESG. stakeholders in the company’s commitment to implementing relevant governance bodies discuss topics and new issues topics, the bank also takes into account topics within the
sustainable financial principles. There have been no significant related to ESG, including matters of primary concern to our Financial Sector;
This report contains information covering the banking organizational changes during the reporting year. stakeholders. Based on this discussion, ESG Group assesses 4. Prioritizing the most significant impacts as material topics.
operations throughout Indonesia during the period of and prioritizes based on the scale of impact on the economy, Bank Mandiri consistently monitors the impacts of its
environment, society, and governance. activities on the environment, society, governance, and
the economy.
To determine these sustainability material topics, Bank Mandiri
REPORTING REFERENCES AND EXTERNAL INITIATIVES follows the following four steps: The review of material topics in 2023 revealed the same
1. Understanding the sustainability context of Bank Mandiri; material topics as the previous year. However, the survey
Bank Mandiri Sustainability Report has been prepared 2. Financial Services Authority Circular Letter (SEOJK)
2. Identifying and evaluating the current and potential results indicate that their materiality level differs from the
following several policies to support the implementation of Number 16/SEOJK.04/2021 on the Form and Content of
impacts; previous year.
sustainability principles. The report adheres to the following Issuers’ or Public Companies’ Annual Reports;
reporting standards: 3. Global Reporting Initiative (GRI) 2021 Standards;
1. Financial Services Authority Regulation (POJK) Number 4. International Financial Reporting Standards (IFRS) S1 and
51/POJK.03/2017 on the Implementation of Sustainable S2;
Finance for Financial Services Institutions, Issuers, and 5. Task Force on Climate-Related Financial Disclosure (TCFD);
Public Companies; 6. Sustainability Accounting Standards Board (SASB). Material Topic Determination Process
EXTERNAL ASSURANCE
Bank Mandiri is accountable for the ESG information and its chosen for its expertise, experience, international network,
supporting data. We carry out internal assurance processes and other relevant criteria. DVA has no other involvement with
by each relevant unit or group. This report has been verified Bank Mandiri aside from assuring for this report. The external
by an independent external party, PT Decar Verite Asia (DVA), assurance report can be found on page 334. Identification of
economic, social, Prioritization of ESG
and environmental topics based on
impacts/potential significance
CONTACT ON SUSTAINABILITY REPORT impacts
Readers can submit requests for information, suggestions, or any feedback regarding this sustainability report by contacting: 02 04
Impact assessment Approval by
Relevant ESG topics
and comparison the Board of
and stakeholder
with thresholds Directors
concerns
Corporate Secretary
01 03 05
corporate.secretary@bankmandiri.co.id
JI. Jenderal Gatot Subroto Kav. 36-38
Jakarta 12190 Indonesia
Tel. Phone (021) 5265045
Fax. (021) 5274477, 5275577
Website: www.bankmandiri.co.id
296 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 297
Page 27
About the
Sustainability Report
About the Material Topic Sustainability GRI Content Index List of Disclosures SDG’s link in Feedback Sheet
Sustainability Report and its Boundary Performance Data following POJK-51/2017 GRI Standards
MATERIALITY LEVEL
From the above process, the following list of material topics is obtained:
To determine the materiality level of the Report content, a survey is conducted with both internal and external stakeholders. The
survey results indicate the materiality level of the Report content as follows.
Topics [GRI 3-2] Reasons Why the Topic is Material [GRI 3-3]
Performance and Economic Impact Have a significant impact on the improvement of regional and national economies as well
as the economy of stakeholders.
Market Presence Have a significant impact on human resources, both the well-being and careers of
employees.
Indirect Economic Impact Have a significant impact on the improvement of regional economies and community Customer compliance related
empowerment. to environmental aspects
Procurement Practices Have a significant impact on the development of the local economy.
High
Employee welfare
Anti-Corruption Have a significant impact and influence on the trust of shareholders, the community, and
other stakeholders. Customer compliance
related to social aspects Anti-corruption
Energy Have a significant impact on the sustainability of the earth and environmental
preservation, in addition to economic savings for Bank Mandiri.
Water usage
Emissions Have a significant impact on the sustainability of the earth and environmental
preservation, in addition to economic savings for Bank Mandiri.
Customer privacy
Employment Have a significant impact on the comfort and performance of employees. Assistance for the
Important for Stakeholders
Education and Training Have a significant impact on the comfort and performance of employees as well as the community
capacity/skills of employees.
Medium
Diversity and Equality Have a significant impact on the comfort and performance of employees as well as Carbon emissions
respect for human rights.
Non-discrimination Have a significant impact on the comfort and performance of employees as well as
respect for human rights. Education and training
Have a significant impact on the improvement of products and customer trust.
Tax compliance Renewable energy
Marketing and Labeling Have a significant impact on the improvement of products and customer trust.
Customer Privacy Have a significant impact on the improvement of products and customer trust. Energy usage Sustainable products/
portfolio
Security Practices Have a significant impact on the improvement of community well-being and the
development of products for marginalized communities.
Local Community Have a significant impact on the improvement of services and customer trust. Employee welfare
Low
Product Responsibility Have a significant impact on the improvement of services and customer trust.
Information Security Have a significant impact on the enforcement and application of the sustainability
concept by business relations/vendors of the Company, significantly impacting the
improvement of services and customer trust.
Socio-economic Compliance Has an important impact on the enforcement and implementation of the concept of
sustainability by the Company’s business relations/vendors, has an important impact on
Low Medium High
improving customer service and trust.
Meanwhile, other topics are not included in the material topic, considering that they are not relevant to Bank Mandiri’s business, Important for the Company
such as water, material, waste, and customer health.
298 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 299
Page 28
About the
Sustainability Report
About the Material Topic and Sustainability GRI Content Index List of Disclosures SDG’s link in Feedback Sheet
Sustainability Report its Boundary Performance Data following POJK-51/2017 GRI Standards
Sustainability Performance Data DESCRIPTION UNIT 2023 2022 2021
Allowance for Impairment Losses (CKPN) for financial assets % 2.87 3.91 5.04
against earning assets
ECONOMIC ASPECT NPL gross % 1.02 1.88 2.81
NPL nett % 0.29 0.26 0.41
DESCRIPTION UNIT 2023 2022 2021
Return on Asset (ROA) % 4.03 3.30 2.53
Overview of Economic Aspect Performance
Return on Equity (ROE) % 27.31 22.62 16.24
Operational Income* Rp billion 146,266,161 126,762,391 112,607,027
Net Interest Margin (NIM) % 5.25 5.16 4.73
Net Income ** Rp billion 55,060,057 41,170,637 28,028,155
Rasio Efisiensi (BOPO) % 51.88 57.35 67.26
Economic Performance related to Sustainability
Loan to Deposit Ratio (LDR) % 86.75 77.61 80.04
Types of products that meet the criteria for sustainable Type Sustainable Financing:
business activities • Credit for the sustainable business activity Nilai Liquidity Coverage Ratio (LCR) % - - -
category a. LCR individually % 176.24 191.02 200.56
Sustainable Product: b. LCR consolidated % 169.58 186.79 197.69
• Corporate-in-transition-financing Comparison of Production Targets and Performance, Portfolio, Financing Targets, or Investments, Income and Profit and Loss
• Green Bond
Balance Sheet Summary 2023 2022 2021
• Green Sukuk
• ESG-based mutual funds Total Assets Rp billion 2,174,219,449 1,992,544,687 1,725,611,128
Sustainable Funding: Total Credit Rp billion 1,359,832,195 1,172,599,882 1,026,224,827
• Sustainability Bond Net profit* Rp billion 55,060,057 41,170,637 28,028,155
• Green Bond
• ESG Repo
Nominal products and/or services that meet the criteria for Rp billion 264,080 228,764 205,423
sustainable business activities
DESCRIPTION UNIT 2023 2022 2021
Percentage of the total portfolio of sustainable business activities to the total portfolio
Performance Ratio
a. Fundraising % NA NA NA
Adequacy Ratio
b. Financing % 24 25 25
Minimum Capital Adequacy Ratio (MCAR) % 21.48 19.46 19.6
Inclusive Financial Performance**
NPL gross % 1.02 1.88 2.81
Development of Laku Pandai
NPL nett % 0.29 0.26 0.41
a. Number of Mandiri Agents People 130,100 156,191 162,416
Return on Asset (ROA) % 4.03 0.33 2.53
b. Mandiri Agent Account Opening Account 2,870.000 2,287,036 1,808,173
Return on Equity (ROE) % 27.31 2.26 1.624
Comparison of Production Targets and Performance, Portfolios, Financing Targets, or Investments, Income and Profit and Loss [OJK F.2]
Rasio Efisiensi (BOPO) % 51.88 57.35 67.26
Balance Sheet Summary
Loan to Deposit Ratio (LDR) % 86.75 77.61 80.04
Total Assets Rp billion 2,174,219,449 1,992,544,087 1,725,611,128
Comparison of Portfolio Targets and Performance, Financing Targets, or Investments in Financial Instruments or Projects aligned
Productive assets Rp billion 1,894,264,000 1,778,598,799 1,565,304,069 with Sustainable Finance Implementation [OJK F.3]
Bank Credit/Financing Rp billion 1,359,832,195 1,172,599,882 1,026,224,827 Number of products that meet the criteria for sustainable business activities
Third-Party Funds Rp billion 1,576,950,000 1,490,844,592 1,291,176,119 a. Fundraising Rp billion 5,000 12,454 4,276
Operating Income* Rp billion 146,266,161 126,762,391 112,607,027 b. Financing Rp billion 264,080 228,764 205,423
Operating Expenses** Rp billion 48,256,541 36,391,339 37,756,600 Total Aset Produktif Kegiatan Usaha Berkelanjutan
Net Income*** Rp billion 55,060,057 41,170,637 28,028,155 a. Total Credit/Financing for Sustainable Business Rp billion 264,080 228,764 205,423
Performance Ratio **** Activities (IDR)
Minimum Capital Adequacy Ratio (MCAR) % 21.48 19.46 19.60 b. Total Non-Credit/Financing for Sustainable Business Rp billion 821,707 703,875 622,291
Non-performing earning assets and non-productive non- % 0.68 1.09 1.63 Activities (IDR)
earning assets to total productive assets and non-earning Percentage of total credit/financing for sustainable % 24.30 24.50 24.80
assets business activities to total bank credit/financing (%)
Non-performing productive assets to total productive % 0,68 1.09 1.60
assets
300 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 301
Page 29
About the
Sustainability Report
About the Material Topic and Sustainability GRI Content Index List of Disclosures SDG’s link in Feedback Sheet
Sustainability Report its Boundary Performance Data following POJK-51/2017 GRI Standards
DESCRIPTION UNIT 2023 2022 2021 DESCRIPTION UNIT 2023 2022 2021
Involvement of local parties Sustainable Financing Products
Number of local suppliers Without units 986 895 1049 Green loan Rp billion 3.50 4.67 -
Proportion of local suppliers % 98.38 99.5 97.5 Corporate-in-transition financing Rp billion 0.74 - -
Number of local purchases Rp billion 5.45 4.8 4.4 Sustainability linked loan Rp billion 0.65 1.49 -
Percentage of local purchases % 99.29 97.78 91.8 Sustainable Fundraising
Economic Performance [GRI 201-1] Category
Interest income Rp million 113,747,621 95,943,875 83,033,945 Sustainability Bond US$ - - 300
Sharia Income Rp million 18,796,849 16,438,243 14,715,141 Green Bond Rp billion 5,000 - -
Premium income Rp billion 13,720,000 14,380,273 14,857,941 ESG Repo US$ - 500 -
Profit from selling securities and bonds! government Rp million 125,295 899,579 3,242,400 Sustainable Investments
Profit on sale of fixed assets Rp million 8,624 2,821 (114,086) Category
Other fee and commission income Rp million 20,148,410 18,802,148 15,408,693 Green Sukuk Rp miliar 3,047 - -
Income from fair value through profit or loss - nett Rp million 3,473,796 3,494,409 3,937,883 Green Bond Rp miliar 180 - -
Other Income Rp million 16,900,640 11,984,146 9,681,444 ESG Mutual Fund Rp miliar 17 - -
The economic value generated Rp million 186,911,235 161,945,494 144,763,361
*) Interest income, sharia income and premium income
Other operational expenses *) Rp million (29,444,402) (28,618,312 ) (26,463,155)
**) Interest expenses, sharia expenses and claims expenses
Salary expenses and employee benefits Rp million (24,423,089) (24,641,746) (22,677,112) ***) Excludes current year profits to non-controlling interests
Payment to funders **) Rp million (48,256,541) (36,391,339) (37,756,600) ****) Company only
Dividend payments to shareholders Rp million (24,702,382) (16,816,893 ) (10,271,552)
Payments to the Government (taxes, levies, etc.)***) Rp million (14,633,011) (11,425,358) (7,807,324)
Procurement of goods and services Rp billion (6,086,960) (4,826,716) (4,894,011)
Expenditures for society Rp million (174.6) (137.6) (132.3)
Distributed economic value Rp million (147,546,559) (122,720,364) (122,720,364)
Retained economic value Rp million 39,364,675 39,225,130 39,225,130
Sustainable Business Credit Portfolio
Sustainable Business Activity Categories
Renewable Energy Rp billion 9,727 6,149 4,281
Energy Efficiency Rp billion - - -
Prevention and Control of Pollution Rp billion - - -
Management of Natural Resources and Sustainable Land Rp billion 102,413 92,956 88,537
Use
Conservation of Terrestrial and Aquatic Biodiversity Rp billion - - -
Clean Transportation Rp billion 3,926 3,107 2,028
Water and Wastewater Treatment Rp billion 1,171 867 1,214
Climate Change Adaptation Rp billion - - -
Products that Reduce Resource Use and Generate Less Rp billion 5,354 3,307 -
Pollution (Eco-efficiency)
Green Buildings that Meet National, Regional, or Interna- Rp billion 6,612 16 205
tional Standards or Certifications
Other Green Business and/or Activities Rp billion 8,776 5,067 5,255
Micro, Small, and Medium Enterprises (MSMEs) Activities Rp billion 126,101 117,295 103,547
Total Sustainable Business Activity Categories (KKUB) Rp billion 264,080 182,931 172,385
Portfolio
302 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 303
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ENVIRONMENTAL ASPECT SOCIAL ASPECT
DESCRIPTION UNIT 2023 2022 2021 Baseline (2019) EMPLOYMENT (PEOPLE) [GRI 2-7] [GRI 2-8]
Activity Data
2023 2022 2021
Operating Income Rp billion 146,266,161 126,762.391 112,607,027 102,638,740 Description
Male Female Male Female Male Female
Number of Employees People 38,965 38,200 37,840 39,065
Number of Employees by Age
Paper Usage
< 30 years 4,390 5,729 4,415 5,977 6,754 4,773
- Printing Paper ream 34,126 38,178 - 70,866
30 – 50 years 12,480 13,717 12,183 13,012 12,173 11,631
Direct Energy Consumption
> 50 years 1,716 933 1,744 869 773 1,736
Energy Consumption (electricity), Gjoule 1,040,756 1,046,804 1,009,552 1,140,603
TOTAL 18,586 20,379 18,342 19,858 19,700 18,140
Energy Consumption (Fuel) Gjoule 599,749 569,528 770,838 906,514
Number of Employees by Grade
Energy Consumption (solar or other Gjoule NR NR NR NR
Board of Commissioners 9 2 8 2 9 2
Renewable Energy)
Direksi 9 3 10 2 11 2
Total Energy Consumption Gjoule 1,640,506 1,616,331 1,780,390 2,047,117
SEVP/EVP/SVP 116 33 113 30 27 107
Energy Consumption Reduction (Bank Only)
VP/AVP 2,583 1,431 2,501 1,314 1,205 2,391
Total Energy Consumption Gjoule 1,640,506 1,616,331 1,780,390 2,047,117
Manager 7,131 6,769 6,848 6,558 6,215 6,415
Reduction
Staff 8,593 12,141 8,649 11,951 12,252 8,991
Pemakaian Air (Bank Only)
Others 145 - 213 1 1 236
- Purchase of Water from Third m3 560,911 498,365 460,699 410,316
TOTAL 18,586 20,379 18,342 19,858 19,700 18,140
Parties
Number of Employees by Employment Status
- Water Reuse m3 141,106 138,580 116,057 104,372
Permanent Employees 16,601 17,762 16,630 18,017 18,105 16,670
Total Water Usage m3 702,017 636,945 576,756 514,688
Contract Employees 1,985 2,617 1,478 1,701 1,595 1,470
Waste Management
Outsourcing 26,248 7,448 25,975 7,213 27,024 7,261
- Recycled Kg 1,520 4,400 1,200 NR
TOTAL 18,586 20,379 18,322 19,854 19,700 18,140
- Recycled by Third Party NR
New Hires
- Composting m 3
10,200 63,693 78,480 NR
By Age
- Handed over to Third Party m3 31,610 28,104 45,360 NR
< 30 years 1,109 1,494 1,006 1,028 656 764
Green house gas Emissions from the Company (Bank Only)
30 – 50 years 117 47 152 43 120 38
Direct GHG Emissions (Scope-1) ton CO2e 43,077 42,698 64,319 75,640
> 50 years 16 2 7 1 10 3
Indirect GHG Emissions (Scope-2) ton CO2e 252,636 260,082 249,938 283,113
TOTAL 1,242 1,543 1,165 1,072 785 805
Total GHG Emissions ton CO2e 295,713 303,787 315,535 362,863 Turnover
Emissions from Financing By Age
Other Indirect GHG Emissions ton CO2e million 18.1 < 30 years 181 265 185 231 137 287
(Scope-3)
30 – 50 years 387 629 423 511 454 254
GHG Emission Reduction (Bank Only) per-Employee
> 50 years 429 157 359 131 435 164
GHG Emission Intensity Scope 1&2 ton CO2e 7.59 7.93 8.30 9.18 TOTAL 997 1,051 967 873 1,026 975
Environmental Costs [OJK F.4]
Solar Panel Installation rupiah - - 853,000,000 -
Renewal and Repair of Water rupiah - 1,510,000,000 1,792,400,000 -
Recycle RO System
TJSL Activities in Nature rupiah 22,500,000,000 645,015,195 99,325,100 365,000,000
Conservation and Preserving
Environment
LED Installation rupiah 2,250,000,000 - - -
304 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 305
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AVERAGE TRAINING HOURS Description Unit 2023 2022 2021
2023 2022 Customer Financial Protection Training
Total Average Number of training topics Title 171 NR NR
Description Number of Number of Total Training Average Training
Training Training Number of participants People 26,288 NR NR
Employees Employees Hours Hours
Hours Hours
Incidents of Violation of Customer Financial Protection
By Grade
Number of Violation of Product Incident 0 0 0
SEVP – SVP 158 15,558 90.5 148 17,392 117.5 Information Rules
VP - AVP 3,965 807,516 202.6 3,793 661,178 174.3 Number of Violations of Marketing Incident 0 0 0
SM - FAM 13,822 2,553,630 184.2 13,293 2,153,892 162.0 Communication
Executor 19,751 1,839,932 88.5 20,364 1,713,998 84.2 Complaints Related to Privacy Violations Incident 0 0 0
Non-Executor 59 808 9.2 87 2,640 30.3 and Customer Data Leaks
Pension/terminate 1,738 120,638 58.0 1,377 80,870 58.7 Marketing and Product Knowledge Training
By Gender Number of training topics Title 49 NR NR
Female 20,623 2,664,804 124.4 20,338 2,360,482 116.1 Number of participants People 18,152 NR NR
Male 18,894 2,674,432 136.6 18,736 2,270,256 121.2 Marketing Communication Incidents
Total 39,517 5,339,236 130.2 39,074 4,630,738 118.5 Number of incidents of non-compliance Case 0 0 0
with regulations and/or voluntary codes
concerning product and service infor-
Description Unit 2023 2022 2021 mation and labeling by their types and
Average Turnover consequences
Turnover Rate % 5.31% 4.82% 5.28% Product and Service Evaluation
Employee Engagement Survey Percentage of products that have been % 100 100 100
Employee Engagement Survey Index % 89.65 88.05 86.30 evaluated for their safety
Diversity and Equal Opportunity Products that have been recalled or Product Livin’ web 0 0
Percentage of Board of Commissioners and Directors by Gender discontinued
• Male % 78% 82% 83% Data and Information Security
Data Security Incidents
• Female % 22% 18% 7%
Number of Data Security Breach Case 0 0 0
Presentase Pegawai Berdasarkan Jabatan
Incidents
SEVP/EVP/SVP
Percentage of incidents related to % 0 0 0
• Male % 78% 79% 80%
customer data
• Female % 22% 21% 20%
Number of affected accounts Account 0 0 0
VP/AVP
Data Security and Privacy Training
• Male % 64% 66% 34%
- Number of training topics Title 197 NR NR
• Female % 35% 34% 66%
- Number of participants People 87,793 NR NR
Manager
Data Privacy Training
• Male % 51% 51% 49%
- Number of training topics Title 21 NR NR
• Female % 87% 49% 51%
- Number of participants People 85 NR NR
Staff
Recapitulation of Customer Complaints
• Male % 41% 42% 58%
Total customer complaints Unit 1,082,317 725,559 731,991
• Female % 59% 58% 42%
Complaints being resolved within the Unit - - -
Percentage of Employees by Gender reporting year*)
• Male % 48% 48% 48% Resolved complaints Unit 1,082,317 725,559 731,991
• Female % 52% 52% 52% Number of transactions Transaction 15,146,907,333 12,038,675,803 9,675,999,534
Percentage of Employees by Age Group Complaint Index (Complaint ratio Without unit 0.000071 0.000060 0.000076
• (< 30 years) % 26% 27% 30% compared to transactions)
• (30-50 years) % 67% 66% 63% Resolution Rate % 100% 100% 100%
• (>50 years) % 7% 7% 7%
306 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 307
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Description Unit 2023 2022 2021
Kepuasan Nasabah
Overall NPS Score 60 60 72
NPS by Industry Score 54 54 68
Overall CSAT Score 86 86 88
CSAT by Industry Score 85 85 88
Overall CES Score 90 90 -
CES by Industry Score 88 88 -
Overall SES Score 92 92 95
SES by Industry Score 90 90 93
Access and Inclusive Financial Services
Performance of Mandiri Agents
- Individual Mandiri Agent Individual 130,100 156,049 150,377
- Legal Entity Mandiri Agents Institution 92.82 88.65 86.80
- Transaction volume Million 86.83 69.27 72.59
transactions
Financial Literacy and Inclusion Activities
- Total participants people 13,132 - -
Banking Access
Number of Offices
- Branch Offices Unit 139 138 137
- Overseas Offices Unit 7 7 7
- Sub-Branch Offices*) Unit 2,104 2,225 2,465
- Cash Offices Unit - - -
Other Types of Offices
- Payment Point Unit 36 42 -
- Mobile Cash Unit 77 77 -
- Micro Mobile Cash Unit 21 22 -
- ATM Unit 12,906 13,027 13,087
Social and Environmental Responsibility Costs
TJSL Program (Non-Funding SME Pro- rupiah 150,000,000 137,629,784,178 132,372,729,008
gram)
MandiriSahabatku rupiah 1,400,000,000 500,000,000 1,091,400,000
Mandiri Young Entrepreneur rupiah 17,500,000,000 8,938,957,915 6,567,669,300
BUMN House rupiah 2,000,000,000 2,665,108,455 3,656,945,089
Healthy Homecoming with BUMN***) rupiah 4,700,000,000 3,926,244,839 -
GOVERNANCE ASPECT
Code of Conduct and Ethical Standards Training
Description Unit 2023
Number of training topics Title 76
Number of participants People 12,730
308 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Laporan Keberlanjutan 2023 PT Bank Mandiri (Persero) Tbk 309
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IFRS-S1 INDEX
Disclosure Page Disclosure Page
Governance Risk Management
a) Board’s oversight of sustainability-related Responsibilities for sustainability-related risks and 129 a) Process to assess sustainability-related risks Risk management process 277
risks and opportunities opportunities, skill
Existing and emerging regulatory requirements 277
Process and frequency of information 129
Process for assessing size and scope of risk 277
Influence on business planning and goals 129
b) Process to manage sustainability-related 277
How the board assesses progress against goals 129 risks
b) Management’s role in assessing and Responsibilities for sustainability-related risks 263 c) Integration of risk process into overall risk 277
managing sustainability-related risks and management
opportunities
Metrics And Targets
Description of organization structure 263
a) Metrics used to applicable IFRS 82
Process of communication 263 Sustainability Disclosure Standard
Process for monitoring 263 b) Describe targets used 82
Strategy
a) Strategy for managing sustainability- Sustainability-related risks and opportunities 82
related risks and opportunities
Effects on the business model and value chain 82
Effects on strategy and decision-making 82
Effects on financial position, financial performance and cash 82
flows
The resilience of the strategy and business model 82
b) Sustainability-related risks and Sustainability-related risks and opportunities that could 82
opportunities reasonably be expected to affect the prospects and time
horizons
c) Business model and value chain Current and anticipated effects of sustainability related risks 82
and opportunities on the business model and value chain and
where it concentrated
d) Strategy and decision-making Respond to sustainability-related risks and opportunities, 82
progress, and trade-offs
e) Financial position, financial the effects of sustainability-related risks and opportunities on 82
performance and cash flows the financial position, financial performance and cash flows
and anticipated effects
f) Resilience Qualitative and, if applicable, quantitative assessment of the 280
resilience of strategy and
business model in relation to its sustainability-related risks
310 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 311
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IFRS-S2 INDEX
sasb CONTENT INDEX Commercial Banks
Disclosure Page
Governance Disclosure Page
Board’s oversight of climate related risks Data Security
Process and frequency of information 129 FN-CB-230a.1. (1) Number of data breaches, (2) percentage involving 139
Influence on business planning and goals 129 personally identifiable information (PII), (3) number of account
holders affected
How the board assesses progress against goals 129
FN-CB-230a.2. Description of approach to identifying and addressing data 135
b) Management’s role in assessing and
security risks
managing climate-related risks
Financial Inclusion & Capacity Building
Responsibilities for climate-related risks 263
FN-CB-240a.1. (1) Number and (2) amount of loans outstanding qualified to 112
Description of organization structure 263
programs designed to promote small business and community
Process of communication 263
development
Process for monitoring 263
FN-CB-240a.2. (1) Number and (2) amount of past due and nonaccrual loans 112
Strategy qualified to programs designed to promote small business and
a) Near, medium and long-term climate- community development
related risks FN-CB-240a.3. Number of no-cost retail checking accounts provided to 223
Description of time horizons 84 previously unbanked or underbanked customers
Specific risks that could be material for each time horizon 84 FN-CB-240a.4. Number of participants in financial literacy initiatives for 219 - 220
unbanked, underbanked, or underserved customers
Process to determine material risks 84
Incorporation of Environmental, Social, and Governance Factors in Credit Analysis
b) Impact on business, strategy and planning
FN-CB-410a.2. Description of approach to incorporation of environmental, 127
Impact on business and strategy 86 social and governance (ESG) factors in credit analysis
Impact on financial planning, timing and prioritization 86 Financed Emissions
How risks are integrated into current decision-making and 86 FN-CB-410b.1. Absolute gross financed emissions, disaggregated by (1) Scope 164 - 165
strategy formulation 1, (2) Scope 2 and (3) Scope 3
Describe climate-related strategies 86 FN-CB-410b.2. Gross exposure for each industry by asset class 164
c) Resilience of strategy using 2-degree or 85 FN-CB-410b.3. Percentage of gross exposure included in the financed 164
lower scenarios emissions calculation
Risk Management FN-CB-410b.4. Description of the methodology used to calculate financed 164
emissions
a) Process to assess climate-related risks
Business Ethics
Risk management process 86
FN-CB-510a.1. Total amount of monetary losses as a result of legal Tidak dilaporkan
Existing and emerging regulatory requirements 86
proceedings associated with fraud, insider trading, anti-trust,
Process for assessing size and scope of risk 86 anti-competitive behaviour, market manipulation, malpractice,
b) Process to manage climate-related risks 277 or other related financial industry laws or
regulations
c) Integration of risk process into overall risk 277
management FN-CB-510a.2. Description of whistleblower policies and procedures 286
Metrics And Targets Systemic Risk Management
a) Metrics used to assess climate-related risks 82 FN-CB-550a.1. Global Systemically Important Bank (G-SIB) score, by category 266
FN-CB-550a.2. Description of approach to incorporation of results of 127
b) Scope 1 and Scope 2 emissions 82
mandatory and voluntary stress tests into capital adequacy
c) Describe targets used 82 planning, long-term corporate strategy, and other business
activities
312 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 313
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Sustainability Report its Boundary Performance Data following POJK-51/2017 GRI Standards
GRI Content Index Gri Standard/ Disclosure Location
OMISSION Sector
Other Source Requirement(S) Reason Explanation Standard
PT Bank Mandiri Tbk has reported information cited in the GRI content index for Omitted Ref. No.
Statement of Use the period 1 January - 31 December 2023 in accordance with the GRI Standards. 2-11 246
Chair of the highest
governance body
GRI 1 used GRI 1: Foundation 2021 2-12 246
Role of the highest
governance body in
overseeing the management
of impacts
OMISSION Sector
Gri Standard/ Disclosure Location
Other Source Requirement(S) Reason Explanation Standard 2-13 80
Ref. No. Delegation of responsibility
Omitted for managing impacts
General disclosures
GRI 2: 2-1 19 2-14 246, 264
General Disclosures 2021 Organizational details Role of the highest
governance body in
sustainability reporting
2-2 23
Entities included in the
organization’s sustainability 2-15 259
reporting Conflicts of interest
2-3 298 2-16 264
Reporting period, frequency Communication of critical
and contact point concerns
2-4 298 2-17 268
Restatements of information Collective knowledge of the
highest governance body
2-5 337
External assurance 2-18 260
Evaluation of the
performance of the highest
2-6 19 governance body
Activities, value chain and
other business relationships
2-19 253
Remuneration policies
2-7 307
Employees
2-20 253 - 258
Process to determine
2-8 307 remuneration
Workers who are not
employees
2-21 258
Annual total compensation
2-9 244 ratio
Governance structure and
composition
2-22 82 - 83
Statement on sustainable
2-10 253 development strategy
Nomination and selection of
the highest
2-23 119
Policy commitments
314 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 315
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OMISSION Sector OMISSION Sector
Gri Standard/ Disclosure Location Gri Standard/ Disclosure Location
Other Source Requirement(S) Reason Explanation Standard Other Source Requirement(S) Reason Explanation Standard
Omitted Ref. No. Omitted Ref. No.
2-24 119 Market presence
Embedding policy
GRI 3: 3-3 300
commitments
Material Topics 2021 Management of material
topics
2-25 126
Processes to remediate
GRI 202: Market Presence 202-1 185
negative impacts
2016 minimum regional
Ratios of standard entry level
2-26 290 wage by gender compared
Mechanisms for seeking to local minimum wage
advice and raising concerns
Indirect economic impacts
2-27 309
GRI 3: 3-3 300
Compliance with laws and
Material Topics 2021 Management of material
regulations
topics
2-28 24
GRI 203: 203-1 231 - 236
Membership associations
Indirect Economic Infrastructure investments
Impacts 2016 and services supported
2-29 293
Approach to stakeholder
203-2 231 - 236
engagement
Significant indirect economic
impacts
2-30 189
Collective bargaining
Procurement practices
agreements
GRI 3: 3-3 288, 300
Material Topics 2021 Management of material
Material topics
topics
GRI 3: 3-1 299
Material Topics 2021 Process to determine
GRI 204: 204-1 304
material topics
Procurement Practices lokal Proportion of spending
2016 on local suppliers
3-2 300
Daftar topik material
Anti-corruption
List of material topics
GRI 3: 3-3 286 - 289,
Material Topics 2021 Management of material 300
Economic performance
topics
GRI 3: 3-3 300
Material Topics 2021 Management of material
205-2 289
topics
GRI 205: Communication and training
Anti-corruption 2016 about anti-corruption
GRI 201: 201-1 304 policies and procedures
Economic Performance Direct economic value
2016 generated and distributed
205-3 285
Confirmed incidents of
201-2 96 corruption and actions taken
Financial implications and
other risks and opportunities
Energy
due to climate change
GRI 3: 3-3 165 - 167, 300
Material Topics 2021 Management of material
topics
316 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 317
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OMISSION Sector OMISSION Sector
Gri Standard/ Disclosure Location Gri Standard/ Disclosure Location
Other Source Requirement(S) Reason Explanation Standard Other Source Requirement(S) Reason Explanation Standard
Omitted Ref. No. Omitted Ref. No.
GRI 302: 302-1 167 GRI 306: 306-1 167
Energy 2016 Energy consumption within Waste 2020 Waste generation and
the organization significant waste-related
impacts
302-3 167
Energy intensity 306-2 167
Management of significant
waste-related impacts
302-4 306
Reduction of energy
consumption 306-3 168
Waste generated
Water and effluents
Employment
GRI 3: 3-3 168, 300
Material Topics 2021 Management of material GRI 3: 3-3 172, 300
topics Material Topics 2021 Management of material
topics
GRI 303: 303-1 168
Water and Effluents 2018 Interactions with water as a GRI 401: 401-1 174, 184
shared resource Employment 2016 New employee hires and
employee turnover
303-2 168
Management of water 401-2 185
discharge-related impacts Benefits provided to full-
time employees that are not
303-3 169
provided to temporary or
Water withdrawal
part-time employees
303-4 168
Water discharge
401-3 186
Emissions Parental leave
GRI 3: 3-3 165 - 167, 300
Material Topics 2021 Management of material Training and education
topics
GRI 3: 3-3 176 - 182, 300
Material Topics 2021 Management of material
GRI 305: 305-1 163 topics
Emisi 2016 Emissions 2016 langsung
Direct (Scope 1) GHG
GRI 404: 404-1 181
emissions
Training and Education Average hours of training per
2016 year per employee
305-2 163
Energy indirect (Scope 2)
404-2 176 - 182
GHG emissions
Programs for upgrading
employee skills and
305-3 164 transition assistance
Other indirect (Scope 3) GHG programs
emissions
404-3 183
305-4 163 Percentage of employees
GHG emissions intensity receiving regular
performance and career
Waste development reviews
GRI 3: 3-3 167, 300
Material Topics 2021 Management of material
topics
318 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 319
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Gri Standard/ Disclosure Location
OMISSION Sector List of Disclosures following
Other Source Requirement(S) Reason Explanation Standard
Omitted Ref. No. POJK – 51/2017
Diversity and equal opportunity
GRI 3: 3-3 190, 300
Material Topics 2021 Management of material
topics No Index Index Name Page
Sustainability Strategy
GRI 405: 405-1 190, 252
Diversity and Equal Diversity of governance A.1 Sustainability Strategy Statement 82 - 83
Opportunity 2016 bodies and employees
Sustainability Performance Highlights
405-2 186 B.1 Economic Performance Highlights 26
Ratio of basic salary and
remuneration of women to B.2 Environmental Performance Highlights 30
men
B.3 Social Performance Highlights 28
Non-discrimination Company Profile
GRI 3: 3-3 190, 300 C.1 Vision, Mission, and Sustainability Values 16
Material Topics 2021 Management of material
topics C.2 Company Address 19
C.3 Scale of organization 20
GRI 406: 406-1 190
Non-discrimination 2016 Incidents of discrimination C.4 Products, services, and business activities undertaken 19
and corrective actions taken
C.5 Membership in the association 24
Marketing and labeling C.6 Significant change in Theorganization 298
GRI 3: 3-3 152, 300 Report of the Board of Directors
Material Topics 2021 Management of material
topics D.1 Explanation of the Board of Directors 11
Sustainability Governance
417-2 309
GRI 417: Incidents of non-compliance E.1 Person in charge of sustainable finance implementation 80, 266
Marketing and Labeling concerning product and
2016 service information and E.2 Competency development related to sustainable finance 99
labeling
E.3 Risk assessment on the sustainable finance implementation 274
417-3 309 E.4 Relations with stakeholders 293
Incidents of non-compliance
E.5 Issues against the sustainable finance implementation 97
concerning marketing
communications Sustainability Performance
F.1 Activities to build a culture of sustainability 98
Customer privacy
GRI 3: 3-3 135 - 151, 300 Economic Performance
Material Topics 2021 Management of material
F.2 Comparison of production targets and performance, portfolios, financing targets, or Investments, 302
topics
income and profit and loss
GRI 418: 418-1 309 F.3 Comparison of portfolio targets and performance, financing targets, or investments in financial Instru- 303
Customer Privacy 2016 Substantiated complaints ments or projects that comply with sustainability
concerning breaches of
customer privacy and losses
of customer data
320 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 321
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No Index Index Name Page No Index Index Name Page
Environmental Performance F.28 Product/service impact 197 - 198
General F.29 Number of products recalled 153
F.4 Environmental Cost 166 F.30 Customer satisfaction survey on sustainable financial products and/or services 161
Material Aspect Etc
F.5 Use of Environmentally Friendly Materials 94 G.1 Independent party written verification, if any 334
Energy Aspect G.2 Feedback sheet 332
F.6 Amount and intensity of used energy 167 G.3 Responses to previous year’s report feedback 332
F.7 Attempts and achievement of energy efficiency and use of renewable energy 165 - 166 G.4 List of disclosures following POJK 51/2017 321
Water Aspect
F.8 Water usage 171
Emission Aspect
F.11 Amount and intensity of resulting emissions by type 163
F.12 Emission reduction efforts and achievements conducted 165 - 166
F.13 Amount of waste and effluent generated by type 168
F.14 Waste and effluent management mechanism 167 - 168
F.15 Occurring Spills (if any) 169
Environmental Complaint Aspect
F.16 Number and material of environmental complaints received and resolved 169
Social Performance
F.17 Commitment of Financial Services Institutions, Issuers, or Public Companies to provide equal services 152
for products and/or services to customers.
Employment Aspect
F.18 Equal opportunity to work 170
F.19 Child laborand forced labor 174
F.20 Regional minimum wage 185
F.21 Decent and safe work environment 182
F.22 Training and capacity building for employees 100
Community Aspect
F.23 Impact of operations on the surrounding communities 197
F.24 Public complaints 169
F.25 Environmental social responsibility (TJSL) activities 231 - 236
F.26 Innovation and development of sustainable finance products/services 94, 200
F.27 Products/services evaluated for Thesafety of customers 153
322 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 323
Page 40
About the
Sustainability Report
About the Material Topic and Sustainability GRI Content Index List of Disclosures SDG’s link in Feedback Sheet
Sustainability Report its Boundary Performance Data following POJK-51/2017 GRI Standards
SDG’s link in GRI Standards SDG’s
Business
Theme
GRI Standard
Relevance
Disclosure Title Disclosure Page
Well-being GRI 401: 401-2 Benefits provided to full-time employees 185
Employment that are not provided to temporary or
Business GRI Standard (2016) part-time employees
SDG’s Disclosure Title Disclosure Page
Theme Relevance
Training and GRI 404: Training 404-1 Average hours of training per year per 181
Income, salary, and GRI 202: Market 202-1 Ratios of standard entry-level wage by 185
Education and Education employee
benefits Presence (2016) gender compared to local minimum
(2016)
wage
1. NO POVERTY 404-2 Programs for upgrading employee skills 176-182
Economic GRI 203: Indirect 203-2 Significant indirect economic impacts 231 - 236
4. QUALITY and transition assistance programs
End poverty in all its Development in Economic Impacts
EDUCATION
forms everywhere areas of high poverty (2016)
Ensure inclusive
Operations that have GRI 413: Local 413-2 Operations with significant actual and 231 - 236 and equitable
an impact on the Communities potential negative impacts on local quality education
community (2016) communities and promote
lifelong learning
Economic GRI 201: Economic 201-1 Direct Economic Value Generated and 304 opportunities for all
Performance Performance Distributed
(2016)
Equal opportunity GRI 2: General 2-9 Governance structure and composition 244
2. ZERO HUNGER Economic GRI 203: Indirect 203-2 Significant indirect economic impacts 231 - 236 Disclosure (2021) 2-10 Nomination and selection of the highest 253
HUNGER Development in Economic Impacts governance body
End hunger, achieve areas of high poverty (2016)
food security Gender equality GRI 405: Diversity 202-1 Ratios of standard entry-level wage by 185
and improved and Equal gender compared to local minimum
5. GENDER
nutrition, and Opportunity wage
EQUALITY
promote sustainable (2016)
Achieve gender
agriculture GRI 203: Indirect 203-1 Infrastructure investments and services 231 - 236
equality and
Economic Impacts supported
empower all women
Economic GRI 203: Indirect 203-2 Significant indirect economic impacts 231 - 236 (2016)
and girls
development in Economic Impacts
areas of the highest (2016) GRI 401: 401-1 New employee hires and employee 174, 184
poverty Employment turnover
3. GOOD HEALTH Air Quality GRI 305: Emission 305-1 Direct (Scope 1) GHG emissions 163 (2016)
AND WELL-BEING (2016) 401-2 Benefits provided to full-time employees 185
305-2 Energy indirect (Scope 2) GHG emissions 163
Ensure healthy lives that are not provided to temporary or
305-3 Other indirect (Scope 3) GHG emissions 164
and promote well- part-time employees
being for all at all ages 401-3 Parental leave 186
GRI 404: Education
and Training
(2016)
GRI 404: Education 404-3 Percentage of employees receiving 183
and Training regular performance and career
(2016) development reviews
GRI 405: Diversity 405-1 Diversity of governance bodies and 190, 252
and Equal employees
Opportunity 405-2 Ratio of basic salary and remuneration of 186
(2016) women to men
324 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 325
Page 41
About the
Sustainability Report
About the Material Topic and Sustainability GRI Content Index List of Disclosures Tautan SDG’s dalam Feedback Sheet
Sustainability Report its Boundary Performance Data following POJK-51/2017 Standar GRI
Business GRI Standard Business GRI Standard
SDG’s Disclosure Title Disclosure Page SDG’s Disclosure Title Disclosure Page
Theme Relevance Theme Relevance
Anti-discrimination GRI 406: Non- 406-1 Incidents of discrimination and 190 GRI 302: Energy 302-1 Energy consumption within the 167
Discrimination corrective actions taken (2016) organization
(2016)
302-3 Energy consumption outside of the 167
organization
302-4 Reduction of energy consumption 306
6. CLEAN WATER
GRI 401: 401-1 New employee hires and employee 174, 184
AND SANITATION
Employment turnover
Ensure availability
(2016) 401-2 Benefits provided to full-time employees 185
and sustainable
management of water that are not provided to temporary or
and sanitation for all part-time employees
Energy Efficiency GRI 302: Energy 302-1 Energy consumption within the 167 401-3 Parental leave 186
(2016) organization Training and GRI 404: Training 404-1 Average hours of training per year per 181
Education and Education employee
(2016)
302-3 Energy intensity 167
404-2 Programs for upgrading employee skills 176 - 182
302-4 Reduction of energy consumption 306 and transition assistance programs
7. AFFORDABLE AND
CLEAN ENERGY
Ensure access to 404-3 Percentage of employees receiving 183
affordable, reliable, regular performance and career
sustainable, and development reviews
modern energy for all GRI 405: Diversity 405-1 Diversity of governance bodies and 190, 252
and Equal employees
Work opportunity GRI 102: General 2-7 Employees 307 Opportunity 405-2 Ratio of basic salary and remuneration of 186
Disclosure (2021) (2016) women to men.
Economic GRI 201: Economic 201-1 Direct economic value generated and 304
GRI 406: Non- 406-1 Incidents of discrimination and 190
improvement Performance distributed
discrimination corrective actions taken
(2016)
8. DECENT WORK (2016)
AND ECONOMIC Income, wages, and GRI 202: Market 202-1 Ratios of standard entry-level wage by 185
GROWTH benefits Presence (2016) gender compared to local minimum
Promote sustained, wage
inclusive, and
sustainable
economic growth,
full and productive
employment, and
decent work for all
GRI 203: Indirect 203-2 Significant indirect economic impacts 231 - 236
Economic Impacts
(2016)
GRI 204: 204-1 Proportion of spending on local 304
Procurement suppliers
Practices (2016)
326 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 327
Page 42
About the
Sustainability Report
About the Material Topic and Sustainability GRI Content Index List of Disclosures Tautan SDG’s dalam Feedback Sheet
Sustainability Report its Boundary Performance Data following POJK-51/2017 Standar GRI
Business GRI Standard Business GRI Standard
SDG’s Disclosure Title Disclosure Page SDG’s Disclosure Title Disclosure Page
Theme Relevance Theme Relevance
Economic GRI 201: Economic 201-1 Direct economic value generated and 304 Infrastructure GRI 203: Indirect 203-1 Indirect economic impact 231 - 236
Development in Performance distributed Investments Economic Impacts
areas of high poverty (2016)
GRI 203: Indirect 203-1 Indirect economic impact 231 - 236
Economic Impacts 11. SUSTAINABLE
9. INDUSTRY, CITIES AND
INNOVATION AND COMMUNITIES
INFRASTRUCTURE GRI 2: General 2-7 Employee 307 Make cities and
Build resilient Disclosure (2021) human settlements
infrastructure, inclusive, safe,
promote inclusive resilient, and
and sustainable sustainable
industrialization, and
foster innovation
Air Quality GRI 302: Energy 302-1 Energy consumption within the 167
(2016) organization
12. RESPONSIBLE
Economic GRI 401: 401-1 New employee hires and employee 174, 184 302-3 Energy intensity 167
CONSUMPTION AND
Development in Employment turnover 302-4 Reduction of energy consumption 306
PRODUCTION
areas of high poverty (2016)
Ensure sustainable
consumption and
production patterns GRI 305: Emission 305-1 Direct (Scope 1) GHG emissions 163
10. MENGURANGI
(2016)
KETIMPANGAN
Mengurangi 305-2 Energy indirect (Scope 2) GHG emissions 163
ketimpangan didalam
dan antar negara 305-3 Other indirect (Scope 3) GHG emissions 164
Economic Impact GRI 201: Economic 201-1 Direct economic value generated and 304
GRI 404: Training 404-1 Average hours of training per year per 181 Performance distributed
and Education employee (2016)
(2016) 13. CLIMATE ACTION GRI 302: Energy 302-1 Energy consumption within the 167
Take urgent action (2016) organization
404-3 Percentage of employees receiving 183 to combat climate
regular performance and career change and its
302-3 Energy intensity 167
development reviews impacts
302-4 Reduction of energy consumption 306
GRI 405: Diversity 405-2 Ratio of basic salary and remuneration of 186
and Equal women to men.
Opportunity
328 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 329
Page 43
About the
Sustainability Report
About the Material Topic and Sustainability GRI Content Index List of Disclosures Tautan SDG’s dalam Feedback Sheet
Sustainability Report its Boundary Performance Data following POJK-51/2017 Standar GRI
Business GRI Standard Business GRI Standard
SDG’s Disclosure Title Disclosure Page SDG’s Disclosure Title Disclosure Page
Theme Relevance Theme Relevance
Air Quality GRI 305: Emissions 305-1 Direct (Scope 1) GHG emissions 163 GRI 102: General 2-23 Policy commitments 119
(2016) 305-2 Energy indirect (Scope 2) GHG emissions 163 Disclosure
(2021)
305-3 Other indirect (Scope 3) GHG emissions 164
2-26 Mechanisms for seeking advice and 290
305-4 GHG emissions intensity 163
14. LIVE BELOW 16. PEACE, JUSTICE raising concerns
WATER AND STRONG
2-9 Governance structure and composition 244
Conserve and INSTITUTIONS
2-11 Chair of the highest governance body 246
sustainably use the Promote peaceful and
oceans, seas, and inclusive communities 2-10 Nomination and selection of the highest 253
marine resources for sustainable governance body
for sustainable development, provide 2-15 Conflicts of interest 259
development access to justice for all, 2-17 Collective knowledge of the highest 268
and build effective, governance body
GRI 305: Emissions 305-1 Direct (Scope 1) GHG emissions 163 accountable, and
2-12 Role of the highest governance body in 246
(2016) inclusive institutions
overseeing the management of impacts
at all levels
2-20 Process to determine remuneration 253 - 258
Anti-corruption GRI 205: Anti- 205-2 Communication and training about anti- 289
305-2 Energy indirect (Scope 2) GHG emissions 163
15. MENJAGA corruption (2016) corruption policies and procedures
305-3 Other indirect (Scope 3) GHG emissions 164
EKOSISTEM DARAT
305-4 GHG emissions intensity 163
LIFE ON LAND 205-3 Confirmed incidents of corruption and 285
Melindungi, 305-5 Reduction of GHG emissions 162
actions taken
memulihkan GRI 408: Child 408-1 Operations and suppliers at significant 275
dan mendukung Labor risk for incidents of child labor
penggunaan yang (2016)
berkelanjutan
GRI 417: Marketing 417-2 Incidents of noncompliance concerning 309
terhadap ekosistem
and Labeling product and service information and
daratan, mengelola
(2016) labeling
hutan secara
berkelanjutan, 417-3 Incidents of non-compliance concerning 309
memerangi marketing communications
desertifikasi GRI 418: Customer 418-1 Substantiated complaints concerning 309
(penggurunan), Privacy (2016) breaches of customer privacy and losses
dan menghambat of customer data
dan membalikkan
degradasi tanah dan
menghambat
hilangnya
keanekaragaman
hayati
330 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 331
Page 44
About the
Sustainability Report
About the Material Topic and Sustainability GRI Content Index List of Disclosures Tautan SDG’s dalam Feedback Sheet
Sustainability Report its Boundary Performance Data following POJK-51/2017 Standar GRI
Feedback Sheet
Bank Mandiri received no feedback on the 2022 Sustainability Report. Bank is always open to feedback and input for the
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332 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 333
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About the
Sustainability Report
About the Material Topic and Sustainability GRI Content Index List of Disclosures Tautan SDG’s dalam Feedback Sheet
Sustainability Report its Boundary Performance Data following POJK-51/2017 Standar GRI
334 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 335
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Names mentioned 53 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Corporation
p.2
unresolved
org
Bank Mandiri ESG
p.2
unresolved
org
Financial Services Authority
p.2 ×11
unresolved
org
Minister of State-Owned Enterprises Regulation
p.3
unresolved
person
Female
· Commissioner
p.3
unresolved
org
Ministry of SOE Regulation No. PER-
p.4 ×3
unresolved
org
Ministry of SOE
p.4 ×2
unresolved
org
Bank Mandiri Policy Architecture. The Bank
p.6
unresolved
org
Bank Mandiri’s Sustainable Portfolio
p.8
unresolved
org
Bank Mandiri Financial Conglomerate
p.8
unresolved
org
Mandiri Investment
· Commissioner
p.11 ×4
unresolved
person
BOC Retreat
· Commissioner
p.11
unresolved
person
Refreshment Program
· Commissioner
p.11
unresolved
—
Andrinof A.
· Vice President
p.11
unresolved
—
GRC Masterclass: IPO &
· BLMI
p.11 ×2
unresolved
org
Kementerian BUMN
p.12 ×2
unresolved
person
Forum
· Commissioner
p.12 ×2
unresolved
person
Attack
· Commissioner
p.12 ×2
unresolved
org
Refreshment Sertifikasi Manajemen Risiko
· President Director
p.13 ×4
unresolved
—
Toni Eko Boy
· Director of Treasury &
p.13
unresolved
person
Timothy
· Direktur
p.13
unresolved
org
Bank Mandiri. KMNR
p.14
unresolved
org
Bank Indonesia
p.15
unresolved
org
Bank Mandiri Annual
p.15
unresolved
org
Ministry of Energy
p.16
unresolved
org
Bank Mandiri Commitment
p.17
unresolved
org
Bank Mandiri’s BCM
p.17 ×3
unresolved
org
Bank Mandiri’s Business Continuity Management
p.18
unresolved
org
PT Deloitte Advis Indonesia
p.22
unresolved
org
Bank WBS-LTC
p.22
unresolved
org
Bank Mandiri’s Responsibilities
p.23 ×2
unresolved
org
Bank Mandiri’s Responsibilities Groups
p.24
unresolved
org
Bank Mandiri REPORTING REFERENCES AND EXTERNAL INITIATIVES
p.26
unresolved
org
Bank Mandiri Sustainability
p.26
unresolved
org
PT Decar Verite Asia
p.26
unresolved
org
Bank Mandiri. Water
p.27
unresolved
org
Bank Mandiri. Customer
p.27
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