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        #KEJARMIMPI
ASPIRATION BECOMES INSPIRATION
        FOR INDONESIA

  It all began with a sincere heart,
  progressing step by step, crafting
  ideas and creation to answer the call
  of the soul.

  Turning aspirations into inspiration,
  creating innovation and positive
  changes with CIMB Niaga. Together,
  let’s pursue our dreams for Indonesia.




  Disclaimer and Limitation of Liability

  This Sustainability Report contains operational, financial
  statements, projections and plans, strategy implementation,
  and CIMB Niaga’s policies and objectives, which are classified as
  forward-looking statements in the implementation of the law
  and applicable regulations, except for historical matters. These
  statements have the prospect of risk uncertainty and may result
  in actual developments being materially different from those
  reported. These prospective statements are made based on
  various assumptions regarding current conditions and predicted
  conditions future in the business environment in which the Bank
  conducts business activities. CIMB Niaga does not guarantee that
  documents whose validity has been confirmed will bring certain
  results as expected.
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                                                                                 2023 Sustainability Report
                                                                                  PT Bank CIMB Niaga Tbk      3




Table of Contents
CIMB Niaga at a Glance                     4               Pillar 4
                                                           GOVERNANCE AND RISK
Sustainability Performance Highlights      12
                                                 Sustainability Governance                            92
Message from the President Director        16
                                                 Sustainability Risk Approach Framework               96
Our Support to the Sustainability          24
Development Goals (SDGs)                         Environmental and Social Risk Approach               97

Our Report                                 35    Risk Approach and Strategy towards                  100
                                                 Climate Change
Independent Party Verification             121
                                                 Developing Sustainability Policy and                 101
Appendix, Reference, and Index             149
                                                 Strategy
          Pillar 1
                                                 Sustainability Governance Approach                  104
          SUSTAINABLE ACTION
                                                 Based on International Financial Reporting
We Together with Employees                 51    Standards (IFRS) and Task Force for
                                                 Climate-related Financial Disclosures
We and Green Office                        57
                                                 (TCFD)
We Together With Business Partners         64
                                                 Ethical Business                                    106

          Pillar 2                                         Pillar 5
          SUSTAINABLE BUSINESS                             ADVOCACY AND
                                                           STAKEHOLDERS
Responsible Banking                        66
                                                           ENGAGEMENT
Sustainable Finance                        72
                                                 Stakeholder Engagement                               110
Customer Satisfaction Level and            78
                                                 Building a Culture of Sustainability and             113
Complaint Resolution
                                                 Sustainable Finance
          Pillar 3
                                                 External Initiatives and Association                 116
          CORPORATE SOCIAL                       Memberships
          RESPONSIBILITY (CSR)
                                                 Sustainable Finance Advocacy for                     117
Pilar 1: Education                         81
                                                 Stakeholders
Pilar 2: Health and Community Well Being   85
                                                 Sustainability Activities                            118
Pilar 3: Economic Empowerment              86
                                                 Response to Feedback                                120
Pilar 4: Climate and Environment           90
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      2023 Sustainability Report
4     PT Bank CIMB Niaga Tbk




    CIMB Niaga at a Glance
    [POJK51-C.2; C.3][GRI 2-1; 2-3; 2-6]



                                                            Legal Entity and Share Ownership
                      Company Name                          Limited Liability Company
                      PT Bank CIMB Niaga Tbk                Listed on the Indonesian Stock Exchange (IDX) on 29
                                                            November 1989, with stock and bond code BNGA
                                                            Share Ownership

                                                                              CIMB Group Sdn. Bhd: 91.48%
                      Date and Year of Establishment
                                                                              PT Commerce Kapital: 1.02%
                      26 September 1955                                       Other Public Shareholders: 7.50%




                                                            Subsidiaries
                      Line of Business
                                                            PT CIMB Niaga Auto Finance (CNAF)
                      Banking Services
                                                            PT CIMB Niaga Sekuritas (CNS)



                      Website                                               Head Office Address

                      www.cimbniaga.co.id                                   Graha CIMB Niaga
                                                                            Jl. Jend Sudirman Kav. 58
                                                                            Jakarta 12190, Indonesia
                                                                            Telp: (+62-21) 250 5252, 250 5353
                      E-mail Address
                                                                            Fax: | Fax: (+62-21) 250 5205
                      Corporate Secretary:
                      corporate.secretary@cimbniaga.co.id
                      Sustainability:
                      sustainability@cimbniaga.co.id
                      Investor Relations:
                      investor.relations@cimbniaga.co.id
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                                                                                                              2023 Sustainability Report
                                                                                                               PT Bank CIMB Niaga Tbk      5




Financing Portfolio Based on Business Segment                                                                 (Rp Trillion)

[GRI FS6][FN-CB-000.B]




 25.0                                           23.1                                             21.1
                                 71.8                                          67.2                                               60.1

                         33.7%                                      34.2%                                               33.1%
          11.7%                                        11.7%                                            11.6%
                   2023                                         2022                                               2021
       15.5%                                         16.1%                                            17.5%
                  213,3                                        196.6                                             181.5
                         39.1%                                      38.0%                                             37.8%

33.1                                          31.6                                             31.8
                                 83.4                                          74.7                                               68.5


                    Corporate           Commercial           Emerging Business Banking (EBB)             Consumer




                                        Non-Performing Loan (NPL) Rate [FN-CB-240a.2]




                         2023                                2022                                       2021


                    1.9%                                2.8%                                          3.5%




             Significant Changes                       [POJK51-C.6][GRI 2-6]



             This Sustainability Report informed a significant change during 2023, i.e. the appointment of 1
             (one) Independent Commissioner, however, there are no changes towards the Board of Directors
             composition nor material topics.
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    2023 Sustainability Report
6   PT Bank CIMB Niaga Tbk




    CIMB Niaga Vision, Mission, and Values                                            [POJK51-C.1] [SUSBA 1.1.1.1]




           VISION                                MISSION
           To be the Leading                     To provide universal banking services in Indonesia as
           ASEAN Company                         a high-performing, institutionalized and integrated
                                                 company located in ASEAN and key markets beyond,
                                                 and to champion the acceleration of ASEAN integration
                                                 and the region’s links to the rest of the world




                                                      Core Values [POJK51-C.1]




                                   E P I C C

     ENABLING TALENT                 PASSION                 INTEGRITY &          COLLABORATION                      CUSTOMER
      Our commitment                 We pursue             ACCOUNTABILITY        We commit to team                   CENTRICITY
       is to empower                excellence in         Our commitment is        over individual                Our determination
     and develop every             all we do and          to act in an ethical    success, as CIMB               is to put customers
    employee and strive          deliver beyond the         and trustworthy       Niaga’s success is             first and always do
    to be the best place              ordinary.             manner and be        my success as well                  right by them.
     for the best talent.                                  accountable of all     as our collective
                                                              our actions.            success.
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                                                                                                          2023 Sustainability Report
                                                                                                           PT Bank CIMB Niaga Tbk      7




Sustainability Strategy                             [POJK51-A.1]




#SekarangUntukMasaDepan            (#NowForTheFuture)         is    sustainability as an essential element, integrating
the spirit and commitment of Bank to continuously                   environmental, social-economic, and Governance (ESG)
improve sustainable operational performance. As a part              risk mitigation aspects. In alignment with the integrated
of the CIMB Group, CIMB Niaga embraced the Group’s                  ESG framework, CIMB Niaga aims to deliver positive
‘Forward23+’ sustainability. This strategy incorporates             impacts for stakeholders.




Sustainability Pillars
              BANK
              Sustainable Action
              How we embed sustainability principles in all our                            CUSTOMER
              business operations and processes to reduce our                              Sustainable Business
              negative impact, such as carbon footprint                                    How we responsibly generate
              and generate positive impact through our                                     profits, creating net positive impact
              business                                                                     through the products and services
                                                                                           we provide, and by assisting and
                                                                                           encouraging our customers and
                                                                                           clients on their own sustainability
                                                                                           journeys
ADVOCACY AND
STAKEHOLDERS
ENGAGEMENT
How we champion,
engage, build
                                                           CIMB Niaga aligns
capability and                                              its sustainability
capacity, raise                                             initiatives within
awareness, and                                               five key pillars
drive participation for                                     that seamlessly
                                                             integrated into
sustainability, both
                                                             Bank’s business
internal and external                                            strategy.


                                                                                                   SOCIETY
                                                                                                   Corporate Social
                                                                                                   Responsibility
GOVERNANCE AND RISK                                                                                How we use a portion of
How we govern and report                                                                           our profits to enhance
sustainability risks, including                                                                    and contribute towards
setting targets and tolerance levels,                                                              sustainable long-term
and how we organize and mobilize                                                                   positive impacts in the
ourselves for the best results                                                                     communities around us
Page 8
    2023 Sustainability Report
8   PT Bank CIMB Niaga Tbk




    CIMB Niaga Sustainability Journey

     » Collaborating with CIMB Group in executing the “Net Zero Strategy & Climate Risk Management Project” to
       support the achievement of net zero emission (NZE) organization by 2050
     » Published the Manufacturing Sector Guidance
     » Building the sustainability governance in relation to climate risk, one of which through the establishment of the
       Integrated & Climate Risk Unit
     » Developing climate scenario analysis (CSA) models and methodology, and joined the climate risk stress test
       (CRST) pilot project as requested by the Financial Services Authority (OJK)
     » Implementation of Internal Carbon Pricing (ICP)
     » Participating in the acquisition of carbon units during the inauguration of the Indonesian Carbon Exchange (IDX
       Carbon)
     » Utilization of renewable energy through the purchase of Renewable Energy Certificate (REC)
     » Launching of the 2024 - 2028 Sustainable Finance Action Plan (RAKB)




     » Development of Human Rights Policy
     » Implementation of No Deforestation, No Peat, and No Exploitation (NDPE)
       commitments, starting with ‘new to bank’ clients in January 2023 and ‘existing to
       bank’ clients by December 2023
     » Commitment to GHG emission reduction interim targets for sectors with high
       sustainability risks, such as coal and cement




     » Commitment to achieve net zero GHG emissions for Scopes 1 and
       2 in operations by 2030, and commitment to achieve net zero
       GHG emissions or reach NZE for the entire organization by 2050
       (Scopes 1, 2, and 3)
     » Launch of the Sustainability-Linked Loan/Financing (SLL/F) and
       Sustainable Finance (SF) programs




     » Sustainability Due Diligence (SDD) implementation
     » Development of the Sector Guidance




     » Formation of the Good Corporate Governance
       (GCG) & Sustainability Unit
     » Formulation of Sustainability and Sustainable
       Finance Policy
     » CIMB Niaga becomes member of the Indonesia
       Sustainable Finance Initiative (IKBI)




     Launching of the 2019 - 2023
     Sustainable Finance Action Plan
     (RAKB)
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                                                                                                2023 Sustainability Report
                                                                                                 PT Bank CIMB Niaga Tbk      9




Sustainability Awards & Ratings




     Awards                                                                ESG Ratings
                                            nsparency &
     -               B-Universe Awards Tra
                                             duction 2023 |
                     Corporate Emission Re
                     Bumi Global Carbon Fo
                                             undation x Investor
                                            erse
                                                                           23.8 (Medium Risk)
                     Magazine from B-Univ
                                              ards 2023: The
         -            Wholesale Banking Aw
                                               ject Finance
                      Indonesia Domestic Pro
                      Bank of the Year and
                                            Indonesia Domestic
                                                iative of the Year |
                                                                           CIS-2 (Neutral to Low)
                       Sustainable Finance Init
                                                 ce
                         Asian Banking & Finan
                                                   any’s participation
             -           Appreciation for comp
                                                   Indonesia Carbon
                         in the initial trading of
                         Exchange 26 Septemb
                                                   er 2023
                                                                            57
                                                 s 2023: Banking for
             -            Retail Banking Award
                                                     Year – Indonesia
                          Women Initiative of the
                                                  ct | Asian Banking &
                          for Giro Kartini produ
                          Finance
                                                ity Awards 2023:
                 -        Corporate Sustainabil
                                                  pion | Katadata
                          Green Economy Cham
                                                  rate bank 2023:
                 -        Indonesia’s best corpo
                                                ey
                           CIMB Niaga | Asiamon
                                                parancy Award 2023
                     -     ESG Disclosure Trans
                                                  Rating | Bumi Global
                           with “BB” Management
                                                 n Investortrust
                           Karbon Foundation da



                                                         arding awards
                                 * Additional details reg
                                                          Annual Report.
                                   can be found in 2023
Page 10
     2023 Sustainability Report
10   PT Bank CIMB Niaga Tbk




     Markets Served and Emission Footprint in 2023                                                                    [POJK51-C.3; C.4][GRI 2-6; FS13]




                Total Offices                                E-channel network throughout Indonesia


                  412                                2,982                      907                              4
         Branch Networks                                ATM                Cash Recycle                 Multi Denom
                                                                           Machine (CRM)               Machine (MDM)
         Note: Detailed explanations regarding the widespread e-channel network across Indonesia, the ‘Sectors and Markets
               Served,’ as well as the Bank’s products and services can be found in the 2023 Annual Report.




                                                                                                                       East Kalimantan
                                           Aceh
                                                                                                                North Kalimantan
                                                                Riau

                                                                                                    Central Kalimantan

                                                                                          West Kalimantan


                                                                              Riau
                                                                              Islands




 North Sumatera
                                                                                        Bangka Belitung
                                                                                        Islands

     West Sumatera


                                   Jambi
                                                                                                       South Kalimantan
                                                                                            DKI Jakarta
                                  South Sumatera
                                                                                                               Central Java
                                           Lampung



                                                   Banten

                                                                       West Java

                                                                                   DI Yogyakarta                                       Bali
                                                                                                          East Java

                                                                                                                                      West Nusa
                                                                                                                                       Tenggara




           3,198.78                                30,536.20                                1,256.41
              tonnes CO2e                              tonnes CO2e                            tonnes CO2e

              SUMATERA                                      JAVA                            KALIMANTAN
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                                                                                   2023 Sustainability Report
                                                                                    PT Bank CIMB Niaga Tbk      11




                                         Year 2023


   36,488.45                                                    18%
      tonnes CO2e                          Percentage reduction in the total Scope
                                           1 and 2 GHG emissions footprint in 2023
    Total GHG emissions                              compared to 2022
      (Scope 1 and 2)
                                                Contribution via renewable energy
                                                         certificate (REC)
                                               (6,484) tonnes of CO2e or renewable
                                                  energy equivalent to 26,830 GJ
                North Sulawesi




                                                                          Papua



                                                     Central Papua




                             Maluku

       Southeast Sulawesi


            South Sulawesi




                  East Nusa Tenggara


                                                                 11 ATMs 1 CRM
                                                                             a,
                                                                     in Mimika, Kuala Kencan
                                                                           Central Papua
  569.12                         927.95                             Support on affordable
  tonnes CO2e                    tonnes CO2e                     access for the small-size or
                                                                 economically disadvantaged
    BALI &                     SULAWESI -                        segments of the population
NUSA TENGGARA                MALUKU - PAPUA
Page 12
       2023 Sustainability Report
12     PT Bank CIMB Niaga Tbk




     Sustainability Performance Highlights

                     Sustainable Action

     Environmental Performance [POJK51-B.2.B; B.2.B.1; B.2.B.2; B.2.B.3]


                     Energy for Electricity                              GHG Emission (Scope 1 +                             GHG Emission (Scope
                     and Fuel                                            Scope 2)                                            3) business travel and
                     (GJ)                                                (tonnes CO2e)                                       activities not included in
                                                                                                                             Scope 1 or Scope 2
                                                                                                                             (tonnes CO2e)

             2023              165,079.70                        2023          30,004.34***                          2023              1,476.46
              2022                  161,906.78                    2022              36,506.57                         2022               1,017.35

              2021                  199,545.36                    2021              39,091.03                         2021                634.98




                     GHG Emission (Scope 3)                              Water                                               Waste Reduction**
                     - investment (financing                             (m3)
                     portfolio)
                     (tonnes CO2e)*


             2023                        -                       2023               122,622                          2023                   17
              2022                  3,178,428.65                  2022                111,053                         2022                  N/A

              2021                  3,269,285.14                  2021               245,720                          2021                  N/A




     Economic Performance [POJK51-B.1.A.5]                                                                  Social Performance [POJK51-B.3]


                     Local Business                                      Business partners fulfill                           Internal Customer
                     Partners                                            the Sustainability Due                              Satisfaction Survey
                                                                         Diligence (SDD) criteria                            (Target >3)




             2023                      620                       2023                100%                            2023                 3.27
              2022                      529                       2022                100%                            2022                  3.19

              2021                      416                       2021                100%                            2021                  3.11


     Notes:
     *Calculations were performed on nine sectors identified as high-emission intensity GHGs by the Net Zero Banking Alliance (NZBA) using The
     Partnership for Carbon Accounting Financials (PCAF) method. The 2021 calculation adopted the 2019 edition of the PCAF method while the 2022
     calculation using 2022 edition
     ** Reduction of waste is stated as the potential equivalent of GHG emissions that can be avoided through the Zero Waste to Landfill initiative. The
     calculation method leverages Graha CIMB Niaga’s waste data, starting from 2022
     ***Scope 1 and 2 GHG emissions with climate change mitigation efforts through Renewable Energy Certificate.
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                                                                                                                    PT Bank CIMB Niaga Tbk      13




                Sustainable Business

Economic Performance [POJK51-B.1; B.1.A.1; B.1.A.2; B.1.A.3; B.1.A.4] [FN-CB-240a.1]


                                        Operating                                           Total Products
                                        Income                                              and Services
                                        (Rp billions)


                                       18,866                                               195       194
                              18,785
                                                 17,568                         175




                              2023 2022 2021                                   2023 2022 2021




                                        Net Profit                                          Total Assets
                                        (Rp billions)                                       (Rp billions)



                                                                              334,369
                                                                                        306,754 310,787
                              6,551

                                       5,097
                                                 4,099




                              2023 2022 2021                                   2023 2022 2021




             KKUB Financing                         Micro, Small, and                             Total Environmentally Friendly
             (Rp billions)                          Medium Enterprises                            Products [Products that meet and/or
                                                    (MSME) Financing                              supporting the Sustainable Business
                                                    (Rp billions)                                 Activity Category (KKUB) criteria]
   55,451                               22,753
            51,444                                21,383                                          9
                     45,069                                20,595                       8                   8




   2023 2022 2021                       2023 2022 2021                                2023 2022 2021
Page 14
      2023 Sustainability Report
14    PT Bank CIMB Niaga Tbk




                    Corporate Social Responsibility


                                                                               2023               2022     2021

     Social Performance [POJK51-B.3]
     Realization of CSR Funds (Rp millions)                                    24,946             24,246   32,365

     Environmental Performance – Biodiversity [POJK51-B.2.B.4]
     Number of Bamboo (Accumulated)                                            49,400             49,400   30,400




                    Governance and Risk

                      Percentage of Complaints                            Total anti-fraud
                      (Whistleblowing) investigated                       training participants
                      (closed) from the total number
                      of complaints received


              2023                 56%                             2023                 5,071
              2022                 32%                             2022                 2,595

               2021                27%                             2021                 3,220




                    Advocacy and Stakeholders Engagement


                                                                               2023               2022     2021



     Customer Complaints Resolved                                               99%                99%      98%

     Customer Loyalty Level - Net Promoter Score (NPS)                          50%                50%      28%

     Sustainable Finance Training for Board of Directors (Senior               100%               100%      100%
     Executive) and Board of Commissioners
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                                                                                                                     2023 Sustainability Report
                                                                                                                      PT Bank CIMB Niaga Tbk      15




#SekarangUntukMasaDepan                                                                   [POJK51-B.2] [GRI 305-5]




             16%                                          18%                                              18%
             Contribution                                 Reduction in Green House                         Contribution through
             through renewable                            Gas (GHG) emission                               Renewable Energy Certificate
             energy to total                              intensity compared to                            (REC) to GHG emission Scope
             energy use                                   2022 [POJK51-B.2] [GRI 305-5]                    1 and 2 footprint




                 3%                                                              ± 120.000
                 Percentage reduction in GHG emissions                           tonnes CO2e
                 (Scope 3) - investments (financing                              Average potential GHG emissions that can be
                 portfolio) in 2022 compared to 2021                             avoided through digital banking transactions




26%                                            29%                                                          89%
Percentage of Sustainable Business             Oil palm plantation financing portofolio that                Clients that have
Activity Category (KKUB) from total            already has or is in the process of ISPO and/or              completed their
Bank financing                                 RSPO certification                                           sustainability Action Plan




                                 30 people
                     Training participants with

1,266                disabilities in 2023
                                                                                                      >7,600
                                                           >87,000 students
Recipients of
                     >50,800 hours                                                                    tonnes CO2e
the CIMB Niaga
scholarship          Total hours of employee
                                                           >900 schools                               Potential for carbon absorption
program in           participating in the Employee         AMDB and TDB financial literacy            from bamboo planting from
2006 – 2023          Volunteer Program                     activities from 2011-2023                  2012 until 2023




83%                                                    Palm Oil, Power, Coal,
                                                       Cement
Percentage of
whistleblowing system                                  Current sectors targeted for intervention to
                                                                                                                      7
reports investigated out of the total number           reduce GHG emissions towards a net zero                        Total sector
of valid complaints to be investigated                 GHG emissions                                                  guidances published




               100%                                                    CIMB Niaga, together CIMB Group, has been actively
                                                                       participating in the Collective Commitment to Climate Action
               Sustainable finance training attended by the
                                                                       (CCCA) program since 2019, which has been succeeded by the
               Board of Commissioners and the Board of
                                                                       Net-Zero Banking Alliance (NZBA) since 2021.
               Directors
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      2023 Sustainability Report
16    PT Bank CIMB Niaga Tbk




                                   Message from the
                                   President Director
                                   [POJK51-D.1] [GRI 2-22] [SUSBA 1.1.1.3]




                                   Dear Respected
                                   Stakeholders,
                                   The 28th Conference of Parties (COP) of the United
                                   Nations Framework on Climate Change (UNFCCC)
                                   in Dubai, United Arab Emirates, in November 2023,
                                   pledged a total financing commitment of US$83.76
                                   billion (equivalent to Rp1.3 quadrillion), with 74%
                                   of it being allocated for climate financing. This
                                   commitment recognized the significance and urgency
                                   among global leaders to take concrete actions in
                                   combating the escalating threats of climate change
                                   to our livelihoods.


                                   The Indonesian government has responded to
                                   the outcomes of COP 28 through introduction of
                                   three sustainable finance agendas, namely the
                                   establishment of Energy Transition Mechanisms
                                   (ETM), the Asean Taxonomy for Sustainable Finance
                                   (ATSF) version 2, and the Indonesia Just Energy
                                   Transition Partnership (JETP). Furthermore, the
                                   Indonesian government aims to achieve net-zero
                                   greenhouse gas (GHG) or net zero emissions (NZE) by
                                   2060 and has established the Forest and Other Land
                                   Uses (FOLU) Net Sink 2030 as a national program,
                                   projected to contribute up to 60% of Indonesia’s total

     Sustainability is a journey   target reduction in greenhouse gas (GHG) emissions
                                   through domestic efforts.
     of learning collectively,
                                   The ambitious targets for reducing GHG emissions
     pursuing dreams,              require support from all stakeholders, including

     and strengthening             the banking industry, which plays a crucial role
                                   in minimizing the negative impacts of climate
     investment performance        change. The goals of the Paris Agreement and
                                   achieving NZE can be realized through targeted
     #SekarangUntukMasaDepan       and measured financing in sectors with high GHG
                                   emission intensity, while rigorously considering the
                                   negative environmental and social implications. The
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                                                                                                 2023 Sustainability Report
                                                                                                  PT Bank CIMB Niaga Tbk      17




Indonesian government emphasizes the importance             organizational unit within Bank. This commitment is
of the private sector’s role in contributing to these       manifested in various targets, such as achieving net zero
commitments. In alignment with the CIMB Group’s             GHG emissions in Scope 1 and 2 operations by 2030 and
annual event, The Cooler Earth Sustainability Summit        attaining overall net zero GHG emissions (Scope 1, 2, and
2023, CIMB Niaga actively participates as a catalyst in     3) or NZE by 2050, which includes phase-out of thermal
tackling climate change.                                    coal financing by 2040. Consequently, the sustainability
                                                            and sustainable finance strategies and initiatives
Policy to Address Challenges                                implemented by Bank are geared towards achieving
Sustainability and Sustainable Finance Values               these   long-term    and    sustainable     commitments.
CIMB Niaga embraced sustainability values that will be      Overcoming the challenges on the journey to fulfill
continuously applied through our commitment to the          these commitments requires collaboration with all
society. These values evolve alongside the challenges       relevant stakeholders.
and opportunities arised from changes in environmental,
social, and governance (ESG) aspects. Rapid changes         Sustainable Finance Implementation
further drive us to strengthen our performance to           Achievements and Recognition
continuously achieve sustainable finance. Guided by         In 2023, CIMB Niaga has achieved several milestonneses,
our core values—Enabling Talent, Passion, Integrity &       including a 24% reduction in Scope 1 and 2 GHG emissions,
Accountability, Collaboration, and Customer Centricity      as compared to the 2019 GHG baseline, while also
(EPICC)—CIMB Niaga is committed to implementing             actively supported climate change mitigation efforts,
sustainability values and the principles of sustainable     such as the utilization of renewable energy through
finance. These values and principles are realized           the purchase of Renewable Energy Certificates (REC),
through various policies to respond and adapt to various    the purchase of carbon units in the Indonesia Carbon
challenges and opportunities.                               Exchange (IDXCarbon), and solar panel installation.
                                                            Additionally, the sustainable palm oil financing portfolio
Response   towards     Sustainability   and   Sustainable   witnessed a remarkable 17% growth, surpassing the set
Finance                                                     target of 5%.
The impacts of climate change directly or indirectly
affect the sustainability of all aspects in our lives.      Starting from 2023, all waste generated from one
As a financial institution with a central role, we have     of the Bank’s head office buildings, i.e., Graha Niaga in
responded to this challenge alongside CIMB Group by         Jakarta, has been successfully recycled, achieving zero
actively participating in the Collective Commitment         waste to landfill. Moving forward, Bank will gradually
to Climate Action (CCCA) program since 2019, later          adopt the zero waste to landfill approach in other
succeeded by the Net-Zero Banking Alliance (NZBA)           Bank’s buildings. Additionally, CIMB Niaga documented
in 2021. CIMB Group’s commitment serves as a role           an average sustainability training duration of 5.3 hours
model for CIMB Niaga to make a positive contribution in     per employee (263% higher than the target average of
addressing climate change. Tangible results from these      2 hours per employee) and an average CSR hours by
efforts have positioned CIMB Group and CIMB Niaga as        employees of 5.1 hours per employee (170% higher than
pioneers among emerging banks in ASEAN committed            the target average of 3 hours per employee).
to achieving NZE by 2050.
                                                            Through the CSR pillar of Health and Community
Commitments, Achievements, and Challenges in the            Well-being, CIMB Niaga collaborated with the United
Implementation    of   Sustainability   and   Sustainable   Nations Children’s Fund (UNICEF) to implement an early
Finance                                                     detection and management program for malnutrition to
The success of CIMB Niaga in implementing sustainable       prevent stunting in East Nusa Tenggara (NTT).
finance is inseparable from the commitment of every
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       2023 Sustainability Report
18     PT Bank CIMB Niaga Tbk




     For    the      various        achievements   in   sustainability   environmental laws and regulations, as well as ethical
     performance mentioned above, CIMB Niaga has received                business practices. In alignment with Sustainable
     sound recognitions from multiple institutions, including            Finance Policy, CIMB Niaga prioritizes financing to sectors
     the Katadata Corporate Sustainability Award 2023 in the             that positively contributes towards EESG performance.
     Green Economy Champion category, the Asian Banking                  Additionally, in collaboration with CIMB Group, Bank has
     & Finance Retail Banking Awards 2023: Banking for                   established targets and strategies for decarbonization
     Women Initiative of the Year – Indonesia for the Kartini            and a just transition for several sectors with high GHG
     Savings product, Overall Winner in the Annual Report                emission intensity.
     Award (ARA) 2022, and several other awards.


     Challenges that Still Need to be Addressed                               The GHG emission reduction targets in the palm
     The awards and recognitions obtained does not                            oil and power sectors are established through the
     satisfy CIMB Niaga; instead, it motivates the Bank to                    Net Zero Strategy & Climate Risk Management
     strive even further, including in the implementation of                  project conducted by CIMB Niaga in collaboration
     sustainable finance as well as transformation towards                    with CIMB Group. The determination of these
     NZE organization. Bank aims to reduce GHG emissions                      targets aligns with the Science-Based Target
     while maintaining smooth operations and excellent                        Initiative (SBTi) and the International Energy
     customer service. Furthermore, the Bank also positively                  Agency Net Zero Emission (IEA NZE) 2050.
     contributed to the emergence of a low-carbon economic
     ecosystem, identifying and mitigating climate risks in
     Bank’s financing portfolio, and more.                               Sustainable    Finance   Opportunities    and    Business
                                                                         Prospects
     Strategy for Target Achievement                                     Opportunities and business prospects that support EESG
     Sustainable Finance Risk Management                                 performance are growing, although a prudent approach
     Regarding climate risk governance, in 2023, the Bank,               must still be taken. As of 2023, CIMB Niaga’s sustainable
     via Risk Management Directorate, have established the               finance portfolio reached Rp55.45 trillion or nearly 26%
     Integrated & Climate Risk Unit. This unit is responsible            of Bank’s total financing portfolio. The management
     for the development & implementation of climate risk                of CIMB Niaga’s sustainable financial portfolio aligns
     management framework, as well as the integration of                 with the Green Social Sustainability Impact Product
     climate risk aspects into the overall Enterprise Wide               Services (GSSIPS) framework established by CIMB
     Risk Management Framework. The Integrated & Climate                 Group. Furthermore, the results of debtor identification
     Risk Unit also ensures the climate scenario analysis                process according to the Indonesian Green Taxonomy
     methodologies development is in line with the policies              (THI) showed that 18% of Bank’s top 450 debtors
     of the Financial Services Authority (OJK) regarding                 are identified as green or yellow based on the loan
     climate risk stress tests (CRST) for the banking industry.          outstanding.


     Risk management in sustainable finance requires the                 Aside from support towards sectors that positively
     integration of various aspects, including environmental,            contributes to the environment and society, CIMB
     economic, social, and governance (EESG) factors. This               Niaga is gradually transitioning its financing to sectors
     includes financing portfolio that supports community                with high GHG emissions intensity yet moving towards
     well-being and empowerment, in compliance with                      a low-carbon economic ecosystem. The Bank is also
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                                                                                                 PT Bank CIMB Niaga Tbk      19




expanding the implementation of Sustainability Due         usaha   di   sektor-sektor    yang   mendukung         Tujuan
Diligence (SDD) in the Commercial Banking segment, by      Pembangunan Berkelanjutan (TPB) akan menjadi usaha
adding two sectors: forestry & natural rubber and oil &    baru yang mewarnai era perubahan. Prospek usaha ini
gas. Bank also launched Manufacture Sector Guidance        terus membaik, walaupun masih memerlukan banyak
that complements the six existing Sector Guidances, i.e.   pembelajaran,    waktu,      komitmen,   dan     pemimpin-
Coal, Forestry & Natural Rubber, Palm Oil, Construction    pemimpin baru dengan sustainability mindset.
& Infrastructure Services, Oil & Gas, and Mining &
Quarrying. These Sector Guidance serve as the basis        External Situation
for debtors to develop decarbonization plans while also    The IDXCarbon launched in September 2023 represents
serve as Bank’s consideration in making sustainable        an opportunity to support sustainability within EESG
finance decisions.                                         context. This opportunity potentially influence the
                                                           sustainability perspectives and strategies of businesses
CIMB Niaga also continues to advocate and engage           in Indonesia. We are hopeful that the conducive external
stakeholders by emphasizing leader’s crucial role in       environment will support us towards achieving our
driving sustainability as well as sustainable finance.     dreams in realizing SDG targets, the Paris Agreement,
One of our initiatives involves the publication of our     and a low-carbon economy, especially in Indonesia’s
interview for Leaders in Sustainability 2023, together     decarbonization commitment towards 2060 NZE.
with 18 business leaders in Asia and published by Green
Network Asia (GNA).                                        Appreciation
                                                           We convey our appreciation and gratitude to all
Ke depan, keberlanjutan bukan lagi sekedar melakukan       stakeholders who have walk with us in the journey of
inisiatif, namun perubahan nyata pada semua sektor         ‘pursuing dreams.’ This support and trust serve as our
usaha dan bahkan dalam kehidupan kita. Peluang             inspiration to work now, for the future. Let us raise our
                                                           voices louder: #SekarangUntukMasaDepan, together, we
                                                           head towards a sustainable Indonesia.




                                                           #SekarangUntukMasaDepan


                                                           Jakarta, 5 March 2024
Commitment is essential,
especially from
regulators and investors,
to drive sustainability                                    LANI DARMAWAN
                                                           President Director
efforts in the future.
Page 20
       2023 Sustainability Report
20     PT Bank CIMB Niaga Tbk




     Board of Commissioners
     * Appointed as Senior Independent Commissioner of the Bank through
        CIMB Niaga Board of Commissioners Circular Decree No. 014/DEKOM/
        KP/VI/2019 as of 28 June 2019.
     ** Appointed at the AGMS on 10 April 2023 and effective 25 January 2024.




                                                                                                   Didi Syafruddin
                                                                                                   Yahya
                                                                                                   President Commissioner




                            Glenn Muhammad Surya                          Jeffrey Kairupan*        Sri Widowati
                            Yusuf                                         Independent              Independent
                            Vice President                                Commissioner             Commissioner
                            Commissioner (Independent)




                            Farina J.                                     Dato’ Abdul Rahman       Vera Handajani
                            Situmorang**                                  Ahmad                    Commissioner
                            Independent                                   Commissioner
                            Commissioner




     Sharia Supervisory Board




                            Prof. Dr. M. Quraish                          Prof. Dr. Fathurrahman   Dr. Yulizar D.
                            Shihab, MA                                    Djamil, MA               Sanrego, M.Ec.
                            Chairman                                      Member                   Member
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                                                    2023 Sustainability Report
                                                     PT Bank CIMB Niaga Tbk      21




Board of Directors



                                                Lani Darmawan
                                                President Director




      Lee Kai Kwong           John Simon        Fransiska Oei
      Director                Director          Director




      Pandji P. Djajanegara   Tjioe Mei Tjuen   Henky Sulistyo
      Director                Director          Director




      Joni Raini              Rusly Johannes    Noviady Wahyudi
      Director                Director          Director
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22   PT Bank CIMB Niaga Tbk
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2023 Sustainability Report
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      2023 Sustainability Report
24    PT Bank CIMB Niaga Tbk




     Our Support to the Sustainable
     Development Goals (SDGs)                                                                                                                               [SUSBA 1.1.1.4;1.6.2.7]




     Pillar                                                          No                 SDG Indicator                                                         Achievements
                                                                     8.2    Achieve higher levels of economic            » Bank continues the HyWork way of working.
                                                                            productivity through diversification,        » Bank has obtained ISO 27001:2013 certification for its Information Security
                                                                            technological upgrading and innovation         Management System covering IT Security and Data Center Services, which includes
                                                                                                                           the IT Security Sub-Directorate and Data Center Operation Management Group.

                                                                     8.4    Improve global resource efficiency           » The Bank utilizes renewable energy through the purchase of Renewable Energy
                                                                            in   consumption     and     production        Certificates (RECs), contributing to a reduction of -6,484 tonnes of CO2e or an
                                                                            progressively and endeavour to decouple        equivalent of 26,830 GJ in NRE
                                                                            economic growth from environmental
                                                                            degradation

                                                                     8.5    Achieve full and productive employment       » Bank own a Human Rights Policy outlining the Bank continously safeguarding the
                                                                            and decent work for all women and              fundamental employment rights and upholds the principle of equality with no
                                                                            men, including for young people and            discrimination of ethnicity, religion, race, gender, gender identity, social status, or any
                                                                            vulnerable groups, and equal pay for           other factors that potentially violates Human Rights.
                                                                            work of equal value                          » Moreover, the Bank’s recruitment processes are conducted objectively, adhering to
                                                                                                                           internal standards, and prioritizes the principle of equality.
      PILAR 1: TINDAKAN BERKELANJUTAN PILLAR 1: SUSTAINABLE ACTION




                                                                                                                         » As of December 2023, the workforce composition of Bank is 51% female and 49%
                                                                                                                           male.

                                                                     8.7    Take immediate and effective measures        » Bank has a Human Rights Policy that outlines its commitments to refrain from
                                                                            to eradicate forced labour, end modern         engaging in forced labor, modern slavery, migrant workers, human trafficking, and
                                                                            slavery and human trafficking and              child labor or underage workers (below the age of 18 years which endangering
                                                                            secure the prohibition and elimination of      safety and.or below the age of 15 years). This policy applies to Banks, customers and
                                                                            the worst forms of child labour, including     partners who work with the Bank.
                                                                            recruitment and use of child soldiers        » The Bank including criteria related to human rights into vendor selection criteria
                                                                                                                           process, such as the criteria for the availability of human rights policies, human rights
                                                                                                                           due diligence, grievance mechanisms, encouraging diversity, equality and inclusion
                                                                                                                         » Human rights related aspects have also been integrated in the SDD process to
                                                                                                                           debtors/prospective debtors.

                                                                     8.8    Protect labor rights and promote safe        Bank is committed to providing fair treatment to all its employees, following the
                                                                            and secure working environments for all      Employee Code of Ethics & Code of Conduct Policy and referring to the third principle
                                                                            workers, including migrant workers, in       regarding the freedom of association and effective recognition of the right to collective
                                                                            particular women migrants, and those in      bargaining, including the formation of labor unions and the negotiation of collective
                                                                            precarious employment                        labor agreements as stated in the United Nations Global Compact (UNGC).

                                                                     10.3   Ensure equal opportunity and reduce          Same as the achievements outlined on target 8.5
                                                                            inequalities of outcome, including by
                                                                            eliminating discriminatory laws, policies
                                                                            and practices and promoting appropriate
                                                                            legislation, policies and action in this
                                                                            regard

                                                                     10.4   Adopt policies, especially fiscal, wage      Bank regulates the provision of allowance, life insurance, and health care in accordance
                                                                            and social protection policies, and          with applicable regulations. Bank portion recorded at 6.24% while employee is at 3%.
                                                                            progressively achieve greater equality

                                                                     12.2   Achieve the sustainable management           » Bank has committed to net zero GHG emissions for Scope 1 and 2 in operations by
                                                                            and efficient use of natural resources         2030.
                                                                                                                         » Bank installed solar panels at one of the CIMB Niaga offices
                                                                                                                         » Bank purchased Renewable Energy Certificates (RECs) amounting to 7,453 MWh.
                                                                                                                         » Bank acquired 7,000 carbon units through the Indonesia Carbon Exchange.

                                                                     13.1   Strengthen resilience and adaptive           » Graha CIMB Niaga certified as a ‘Platinum’ green building by the Building and
                                                                            capacity to climate-related hazards and        Construction Authority (BCA) of Singapore
                                                                            natural disaster                             » Bank’s positive contribution on bamboo conservation is accumulated at more than 49
                                                                                                                           thousand since 2012
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Pillar                            No                  SDG Indicator                                                        Achievements
                                  8.3    Promote development-oriented policies         Bank has disbursed Rp22.8 trillion in financing to the MSME segment as per 31 December
                                         that support productive activities,           2023
                                         decent job creation, entrepreneurship,
                                         creativity and innovation, and encourage
                                         the formalization and growth of micro-,
                                         small- and medium- sized enterprises,
                                         including through access to financial
                                         services

                                  8.10   Strengthen the capacity of domestic           Bank has expanded and eased banking access for all Indonesians through its digital
                                         finansial institutions to encourage and       banking innovation
                                         expand access to banking, insurance and
                                         financial services for all

                                  9.3    Increase the access of small-scale            Same as the achievements outlined on target 8.3
                                         industrial and other enterprises, in
                                         particular in developing countries, to
                                         financial services, including affordable
                                         credit, and their integration into value
                                         chains and markets

                                  9.4    Upgrade infrastructure and retrofit           As per 31 December 2023, Bank provided Rp6.19 trillion in KKUB financing for the
                                         industries to make them sustainable,          construction and infrastructure
                                         with increased resource-use efficiency
                                         and greater adoption of clean and
                                         environmentally sound technologies and
                                         industrial processes, with all countries
                                         taking action in accordance with their
                                         respective capabilities
 PILLAR 2: SUSTAINABLE BUSINESS




                                  10.2   Empower and promote the social,               Bank provides banking services to all individuals without discrimination on ethnicity,
                                         economic and political inclusion of all,      religion, race, social status, gender, or any other potentially discriminatory factors that
                                         irrespective of age, sex, disability, race,   may violate human rights.
                                         ethnicity, origin, religion or economic or
                                         other status

                                  13.2   Integrate climate change measures into        » Bank has established a Sustainability and Sustainable Finance Policy aligned with the
                                         national policies, strategies and planning      national climate change strategy.
                                                                                       » Bank has formed the Integrated & Climate Risk Unit.
                                                                                       » Bank has developed climate scenario analysis (CSA) methodology and participated in
                                                                                         a pilot project for climate risk stress tests (CRST) requested by the Financial Services
                                                                                         Authority (OJK).
                                                                                       » Bank, along with CIMB Group, has implemented the Net Zero Strategy & Climate Risk
                                                                                         Management project, resulting in a strategy and interim targets for 2030 targeting
                                                                                         four sectors:
                                                                                           a. Coal Sector: Reducing the financing portfolio for thermal coal mining to 50% of
                                                                                              the 2021 baseline.
                                                                                           b. Cement Sector: Reducing the customer’s physical emission intensity in the
                                                                                              cement sector by 36%, from 0.72 to 0.46 tonnes of CO2e per tonnes of cement
                                                                                              produced (compared to the 2021 baseline).
                                                                                           c. Palm Oil Sector: To achieve 16% reduction of emission intensity in palm oil
                                                                                              portfolio (from 2022 baseline), by engaging with clients to shift production
                                                                                              towards sustainable palm oil
                                                                                           d. Power Sector: To achieve 38% reduction of emission intensity in power portfolio
                                                                                              from 2022 baseline), focusing on low carbon and renewable alternatives to
                                                                                              accelerate decarbonization plans of our clients

                                  15.2   Promote     the    implementation     of      Bank has implemented a commitment to No Deforestation, No Peat, and No Exploitation
                                         sustainable management of all types           (NDPE) in financing the palm oil and forestry sectors. This NDPE commitment has been
                                         of forests, halt deforestation, restore       requested to all debtors since December 2023.
                                         degraded forests and substantially
                                         increase afforestation and reforestation
                                         globally

                                  15.a   Mobilize and significantly increase           In accordance with the Green Social Sustainability Impact Products & Services (GSSIPS)
                                         finansial resources from all sources          framework, Bank together with CIMB Group are committed to disbursing RM100 billion
                                         to conserve and sustainably use               or the equivalent to Rp208 trillion in sustainable financing by 2024. In 2023, CIMB Niaga
                                         biodiversity and ecosystem                    has contributed Rp6.9 trillion to support this achievement
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           2023 Sustainability Report
26         PT Bank CIMB Niaga Tbk




     Pillar                                   No                  SDG Indicator                                                        Achievements
                                              10.2   Empower and promote the social,               Community Link #JadiBerkelanjutan program supports community social and economic
     SOCIAL RESPONSIBILITY




                                                     economic and political inclusion of all,      activities, including empowerment programs for women and persons with disabilities,
      PILLAR 3: CORPORATE




                                                     irrespective of age, sex, disability, race,   particularly in Eastern Indonesia
                                                     ethnicity, origin, religion or economic or
                                                     other status

                                              13.3   Improve education, awareness-raising          Aligned with the bamboo conservation program, Bank is also engaged in capacity building
                                                     and human and institutional capacity on       activities for farmer groups, focusing on bamboo product processing, entrepreneurship,
                                                     climate change mitigation, adaptation,        and financial literacy.
                                                     impact reduction and early warning

                                              13.2   Integrate climate change measures into        Same as the achievements on Pillar 2 target 13.2
                                                     national policies, strategies and planning

                                              15.5   Take urgent and significant action            Bank has implemented a No Deforestation, No Peat, and No Exploitation (NDPE)
                                                     to reduce the degradation of natural          commitment to finance the oil palm and forestry sectors, as well as a commitment to
                                                     habitats, halt the loss of biodiversity and   phase-out thermal coal financing by 2040. In addition, Bank also has an Exclusion List
                                                     protect and prevent the extinction of         where Bank prohibits financing to debtors who are directly or indirectly involved in the
                                                     threatened species                            destruction of cultural heritage, national and/or international protected areas, including
                                                                                                   peat conservation and wetland areas on Ramsar sites

                                              15.7   Take urgent action to end poaching and        Bank Exclusion List outlining prohibited business activities, which includes financing for
              PILLAR 4: GOVERNANCE AND RISK




                                                     trafficking of protected species of flora     illegal activities.
                                                     and fauna and address both demand and
                                                     supply of illegal wildlife products

                                              16.2   End abuse, exploitation, trafficking and      Bank is committed, as outlined in its Human Rights Policy, to refraining from involvement
                                                     all forms of violence against and torture     in practices such as forced labor, bonded labor/debt labor, child labor, underage labor,
                                                     of children                                   migrant labor, human trafficking, and modern slavery.

                                              16.4   Significantly reduce illicit financial and    Bank has established an Exclusion List outlining prohibited business activities, which
                                                     arms flows, strengthen the recovery and       includes financing for weaponry, ammunition, and terrorism. It is aligned with the Anti-
                                                     return of stolen assets and combat all        Money Laundering (AML), Counter-Terrorism Financing (CTF) and Counter-Proliferation
                                                     forms of organized crime                      Financing of Weapon of Mass Destruction (CPFWMD) Program

                                              16.5   Substantially reduce corruption and           » One of the items under Bank’s Exclusion List is the prohibition of financing activities
                                                     bribery in all their forms                      related to any bribery and corruption activities.
                                                                                                   » Bank is certified ISO 37001:2016 regarding Anti Bribery Management System,
                                                                                                     embedded in Sub-directorate of Strategic Procurement and Admin Property
                                                                                                     Management
                                                                                                   » The Bank’s Board of Commissioner and Board of Directors also signed the Declaration
                                                                                                     of the Integrity Pact, Code of Ethics & Anti-Corruption Commitment periodically,
                                                                                                     starting in 2020. In 2023, the signing took place on 22 May 2023 and published on
                                                                                                     the CIMB Niaga website

                                              12.6   Encourage companies, especially large         Bank implemented a Sustainable Finance Policy and Procedures governing the
                                                     and transnational companies, to adopt         Sustainability Due Diligence mechanism. This mechanism encourages customers to
     PILLAR 5: STAKEHOLDER ENGAGEMENT AND




                                                     sustainable practices and to integrate        adopt best sustainability practices in their business operations.
                                                     sustainability information into their
                                                     reporting cycle

                                              12.8   Ensure that people everywhere have the        Bank owns a dedicated website addressing sustainability topics, accessible to the public.
                                                     relevant information and awareness for        Additionally, Bank actively engages in various sustainability initiatives and activities,
                    ADVOCACY




                                                     sustainable development and lifestyles        such as The Cooler Earth’s Sustainability Summit. This initiative aims to raise awareness
                                                     in harmony with nature                        of sustainability issues, catalyze customers and stakeholders to take action, and build
                                                                                                   real momentum in sustainability.

                                              13.3   Improve education, awareness-raising          Bank periodically conducts sustainability training for internal employees, customers,
                                                     and human and institutional capacity on       and vendors. For instance, through initiatives like The Cooler Earth Sustainability
                                                     climate change mitigation, adaptation,        Summit 2023.
                                                     impact reduction and early warning

                                              16.6   Develop effective, accountable and            Bank consistently upholds the values of accountability and transparency in its business
                                                     transparent institutions at all levels        activities, aligning with the Corporate Policy Manual.
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Sustainable Development Goals (SDGs) Related Sustainability
Governance Based on Global Investors for Sustainable
Development (GISD) Alliance                             [GRI 201-2]




  Governance

      1. Bank acknowledges that efforts to mitigate the impact of SDGs-related risks will be successful when integrated
         into a well-established governance structure.
      2. Bank has a sustainability governance body in place to support the achievement of SDGs. The structure of the
         sustainability governance body aligns with Pillar 4. The achievement and implementation of the SDGs refers to
         Presidential Regulation of the Republic of Indonesia No. 111 of 2022 concerning Implementation of the Achievement
         of Sustainable Development Goals.
      3. Bank currently has a Sustainability Unit and an Integrated & Climate Risk Unit responsible for implementing the
         sustainability framework, including supporting SDGs.
      4. This is how to address SDG-related issues and ensure that initiatives and actions toward achieving the Sustainable
         Development Goals are comprehensively executed.




   Strategy

    1. Bank has various policies supporting the achievement of the SDGs, including but not limited to Sustainability Policy,
       Sustainable Finance Policy, and Human Rights Policy.
    2. Bank owns the Green Social Sustainability Impact Products & Services (GSSIPS) framework to ensure financing
       aligns with positive contributions to SDGs.
    3. Bank has developed a model and methodology for climate scenario analysis (CSA) and participated in a pilot project
       for climate risk stress tests (CRST) requested by the Financial Services Authority (OJK). This aims to support the
       achievement of Indonesia’s net zero GHG emissions target by 2060, Forest and Other Land Uses (FOLU) Net Sink
       2030, and Enhanced Nationally Determined Contribution (ENDC) Indonesia.
    4. Bank has implemented and operates a Sustainability Due Diligence (SDD) mechanism covering both credit and non-
       credit activities.
    5. Sustainability Due Diligence is conducted, considering various environmental and social aspects, including SDG
       achievements.
    6. Bank also has a strategy to identify SDG-related opportunities and challenges.




 Risk Management                                                               Matrix and Target
   1. Incorporate SDG-related risks as a consideration in assessing
                                                                                 1. Identify debtor’s portofolio/group that
      financial and non-financial risks.
                                                                                    have a positive impact and contribute
   2. Strive to enhance borrowers’ awareness of achievement and
                                                                                    to achieving the SDGs.
      assess and incorporate SDG aspects into Sustainability Due
                                                                                 2. Sustainability Due Diligence (SDD)
      Diligence (SDD).
                                                                                    conducted     on    Bank’s    financing
   3. Improve sustainability risk literacy and awareness of
                                                                                    portfolio.
      Sustainable Development Goals internally for Bank,
      customers, and suppliers.
   4. Identify potential risks associated with the Sustainable
      Development Goals.
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      2023 Sustainability Report
28    PT Bank CIMB Niaga Tbk




                                             Sustainable
                    Matrix                Development Goals                      Contribution                          Reference
                                                (SDGs)
     GHG emissions associated with                            Bank calculates GHG emissions from Bank financing       GISD (new)
     the Company and the projects                             as of 31 December 2022 in nine sectors identified to
     it finances, using the specified                         have high GHG emission intensity according to the
     methodology                                              Net Zero Banking Alliance (NZBA). The calculation
                                                              results reveal a total of 3.18 million tonnes CO2e in
                                                              Bank's financing portfolio.

     Percentage    of    investment                           Bank holds a sustainable investment portfolio,          GISD (new)
     portfolio that is in line with                           consisting of Green Bonds and Green Sukuk
     the definition of Sustainable             Diverse        issued by State-Owned Enterprises (SOEs) or
     Development Investing (SDI)                              the Government of the Republic of Indonesia,
                                                              amounting to Rp580.99 billion in 2023.

     Total   outstanding     loans,                           In 2022, Bank has disbursed Rp22.8 trillion on          HIPSO – FI-
     value of outstanding loans                               MSME financing for 7,000 debtors, with financing        01/02
     (segmented based on financing                            composition of micro business of 4%, small
     for MSMEs)                                               enterprises of 29%, and medium enterprises of
                                                              67%.

     Total amount and value of                                As of 31 December 2023, there were 31,577 Student       Sustainability
     free checking accounts for                               Savings (SimPel) accounts with a total value of         Report
     customers who previously did                             Rp4.43 billion.
     not have a bank account

     New and existing Business                                Bank has less than 0.3% of its total financing          Sustainability
     activities (financing, investment,                       channeled to thermal coal mining and oil and            Report
     insurance) related to thermal             Diverse        gas exploration companies. Furthermore, no
     coal mining and oil and gas                              new financing for thermal coal mine expansion
     exploration companies.                                   activities.

     Total amount and value from                              Environmental-Based Business Activity (KUBL)            GISD (new)
     green and sustainability-related                         financing as per 31 December 2023 reached Rp33.5
     financing                                                trillion distributed to 1,486 debtors.

     Portfolio   impact   analysis                            Almost 30% of Bank’s total financing carries high       UNEP FI
     conducted to inform business                             level of sustainability risk potential.
     strategy, ensuring that the
                                               Diverse
     process and outputs of the
     analysis adhere to applicable
     guidelines.

     Existence and implementation                             Bank has regulated Sustainability Due Diligence         UNEP FI
     of impact analysis systems                               (SDD) mechanism for debtors and business
                                               Diverse
     and client/investee company                              relations with sustainability action plans refer to
     engagement                                               international best practices.

     Total     checking      account                          In 2023, Bank had 34.849 individual checking            IRIS+
     transactions and active users                            account customers MSME valued at Rp3.25 trillion.


     Total incentives provided for                            In 2023, Bank provided student savings accounts         IRIS+
     opening savings accounts                  Diverse        with a total donation value of Rp195.4 million for
                                                              account openings.
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                                                Sustainable
                Matrix                       Development Goals                    Contribution                          Reference
                                                   (SDGs)
 Total amount and value of                                       As of 31 December 2023, the Sustainability-Linked    Sustainability
 ESG-related financing, where                                    Loan/Financing (SLL/F) program was granted           Report
 the conditions are affected by                                  to 5 debtors valued at Rp1.03 trillion, and the
 sustainability performance                                      Sustainable Finance program provided Rp2.74
                                                                 trillion in financing to 5 debtors.

 Total accounts held by Total                                    There are 51 female debtors in Bank's MSME           GISD (new)
 accounts held by women in                                       financing.
 countries with large gender
 disparities regarding financial
 inclusion




Bank’s Approach to Climate Risk
[GRI 201-2] [FN-CB-550a.2] [ACGS C.1.2; C.4.7; (B).C.1.1]



CIMB Niaga is committed to continually supporting                     In 2024, Bank plans to expand CRST coverage to a
government initiatives to address climate change. In                  minimum of 50% of the total credit portfolio, aligning
2023, Bank began participating in a pilot project for                 with OJK CRST guidelines. Additionally, Bank is developing
climate scenario analysis (CSA) or climate risk stress                a methodology to assess the impact of physical climate
testing (CRST) to assess the impact of transition and                 risks over the next year, focusing on acute physical
physical risks based on scenarios defined by the                      risks such as floods for the retail portfolio (mortgages)
government through the Financial Services Authority                   and other acute physical risks such as fire/drought for
(OJK). The guidelines followed for CRST are the Climate               specific sectors within the non-retail portfolio.
Risk Stress Testing Guidance for Banks 2023 Volume
1.0 and its future revisions, adopting the three climate              Through understanding and learning from climate
scenarios from the Networks for Greening the Financial                risks at the portfolio level, Bank can identify financing
System (NGFS). These NGFS scenarios include Net Zero                  opportunities or initiatives, including:
2050, Delayed Transition, and Current Policies.                       1.   Financing   opportunities    through       sustainability-
                                                                           themed products and/or programs (such as financing
Bank has initiated the CRST process gradually, starting                    nature-based climate solutions) for customers or
with the assessment of transition risks in non-retail                      related sectors, contributing positively to climate
portfolios. Sectors identified as carbon-intensive, such                   mitigation and/or adaptation efforts.
as agriculture, oil and gas, metals and mining, power                 2. Encouraging strategies and targets to achieve net
generation, manufacturing, transportation, and real                        zero emissions (NZE) by 2050.
estate, are subject to this phased evaluation.                        3. Encouraging stakeholders to participate in a just
                                                                           transition journey toward a low-carbon economy,
In 2023, Bank conducted a pilot CRST focusing on the                       achieving the Sustainable Development Goals (SDGs),
non-retail portfolio, particularly the corporate and                       and Indonesia’s Enhanced Nationally Determined
commercial banking segments, which constitute 37%                          Contribution (ENDC).
of Bank’s total credit portfolio (Bank only). Through this            4. Developing added value with sustainability aspects
pilot CRST, Bank identified that the sectors most affected                 to provide long-term and sustainable benefits for
by climate scenarios are oil and gas, as well as metals                    investors, shareholders, and other stakeholders.
and mining.
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          2023 Sustainability Report
30        PT Bank CIMB Niaga Tbk




     Bank acknowledges the need for initiatives or programs to mitigate climate change risks at the operational level. This
     is carried out through:
     1.     Installation of solar panels (currently installed in one of CIMB Niaga’s offices) with the expectation of increasing the
            proportion of renewable energy in Bank’s energy mix.
     2. Purchase of Renewable Energy Certificates (REC).
     3. Acquisition of carbon units, potentially facilitating carbon offset mechanisms.
     4. Various other energy efficiency initiatives, such as the use of LED lights and upgrading air conditioning systems.
     5. Bamboo planting, part of Bank’s CSR program, aimed to support carbon capture and storage.




     Short Communication: CIMB Niaga and CIMB
     Group Toward a Net Zero Emission (NZE)
     Organization by 2050



                                                                              Identify risk and
                                       Measure GHG
                                                                              opportunity on
                                       emissions
                                                                              emission source
                                       Scope 1, 2,
                                       and 3

                                                                                                                Develop 2030
                                                                                                                interim target
                                                                 Roadmap Toward a                               as well as 2050
                                                                                                                target
                                                                 Net Zero Emission
                      Communicate Bank’s
                      periodical progress towards
                                                                 (NZE) Organization
                      the achievement of net                          by 2050
                      zero GHG emission target
                      to key internal and external                                          Strategy setting for
                      stakeholder                                                           climate transition risk
                                                                                            mitigation through
                                                                                            energy saving and Bank’s
                                                                                            green portfolio exposure
                                                                                            growth
                                              Monitor Bank’s emission
                                              usage and climate risk
                                              exposure in bank’s
                                              financing portfolio
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                                                                                                                             PT Bank CIMB Niaga Tbk      31




CIMB Group has been a member of the Net Zero Banking                         steps to prepare climate targets in line with the Paris
Alliance (NZBA) since 2021 and has set a target for net                      Agreement, aiming to slow down global warming to
zero GHG emissions (Scope 1, 2, and 3) or a net zero                         below 2 °C or, ideally, 1.5 °C compared to pre-industrial
emission (NZE) organization by 2050. CIMB Niaga, as                          levels. To ensure a clear roadmap toward NZE, Bank
part of CIMB Group, also aligns with this commitment.                        has undertaken the Net Zero Strategy & Climate Risk
Consequently, Bank has formulated several strategic                          Management project.




                                                » Optimization of physical office facilities
          Optimizing
                                                » Reduction of operational office area
       Business Location



                                                » Investing in energy efficiency initiatives and campaigns for lifestyle changes
                                                » Developing a data recording system for Bank’s operational GHG emissions
         Avoiding and                           » Upgrading Air Conditioners (AC) in various locations for energy savings
                                                » Transitioning to LED lighting in operational offices
       Reducing Energy
        Consumption

                                               » Transitioning to renewable energy sources through the purchase of verified
                                                 renewable energy certificates
                                               » Pilot project for the installation of solar panels*
                Green                          » Internal Carbon Pricing (ICP) initiative **
                Energy



                                             Purchasing high-quality carbon units (certified) sourced locally to offset
                                             unavoidable emissions for instance through Indonesia Carbon Exchange or IDX
                Carbon                       Carbon
                Offsets


                                             » Conducting regular emission measurements and monitoring from the financing
                                               portfolio
                                             » Establishing green financing targets and strategies for sectors such as palm oil,
                 Green                         power, thermal coal mining, and cement
                 Sector                      » Coordinating with other business units regarding green financing strategies and
                                               potential
                Strategy

        Note:
        *Currently, solar panels have been installed at the Bintaro branch office and are awaiting operational permits.
        **Internal Carbon Pricing (ICP) is one of the initiative to achieve net zero Scope 1 & 2 GHG emissions in operations by 2030 by assigning a
        monetary value to the GHG Scope 2 emissions generated by Bank. Since 2021, Bank has commenced efforts to establish and implement
        the ICP framework.
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       2023 Sustainability Report
32     PT Bank CIMB Niaga Tbk




     CIMB Niaga, in collaboration with CIMB Group, has               sectors in Bank’s portfolio by 2050. The determination of
     established emission reduction targets for 2030 across          these targets reflects Bank’s commitment to mitigating
     four key sectors: palm oil, power, thermal coal mining,         climate risks in its portfolio. Furthermore, Bank is
     and cement, as part of the ‘Net Zero Strategy & Climate         actively exploring the establishment of targets for the
     Risk Management’ project. Through this initiative, CIMB         housing and oil & gas sectors, with plans to announce
     Niaga contributes to CIMB Group’s global achievement            these targets in 2024. In executing the NZE strategy,
     as the first bank to set emission reduction targets for         Bank supports a just transition and collaborates
     the palm oil sector by 2030. These interim targets align        with customers to navigate the challenges toward
     with the broader aim of achieving NZE across all material       decarbonization.




                                                                                                Grounded in a science-
     Key Design Principle the Establishment of Interim Targets Toward NZE 2050                     based approach


                                                                                               Bank has ensured that all
                                                                                              target settings for selected
                 In line with NZE 2050                   Enabling decisive
                                                                                              sectors have been based on
                    climate ambition                         actions
                                                                                            scientific reference scenarios
                                                                                             that are widely accepted and
           The 2030 targets are consistent           The 2030 targets serve as                  credible. Bank recognizes
             with the decarbonization path          a reference for Bank to take                that climate science is an
            towards NZE by 2050, which is             immediate actions. In the             evolving field. Therefore, Bank
          essential to keep global warming        future, Bank will establish long-           chooses to take action now
              well below 1.5°C since pre-          term interim targets to ensure             based on the best available
          industrial times and preserve the         sustainable growth towards                knowledge and will conduct
             Earth for future generations.             achieving NZE by 2050.                 periodic reviews in line with
                                                                                               advancements in scientific
                                                                                                understanding, reporting
                                                                                             methodologies, and relevant
                                                                                                  laws and regulations.

              Achieving a just transition
                                                      Achieving net zero GHG
                  as an imperative
                                                     emissions in partnership
                                                       with our customers
                                                                                                     Focusing on
              Bank acknowledges that                                                                   impact
                                                   Bank believes that future net
           environmental sustainability
                                                    zero GHG emissions should
           must be aligned with inclusive                                                       Bank focuses on setting
                                                 align with economic growth and
             development and growth,                                                           initial targets on the most
                                                   yield positive socio-economic
          balanced with food and energy                                                      material sectors where it can
                                                outcomes. Bank positions itself as
            resilience, and affordability.                                                    create a positive impact on
                                                a partner for customers, assisting
           Bank has incorporated these                                                      decarbonization by prioritizing
                                                 in their decarbonization journey,
         considerations into its targets and                                                sustainable economic practices
                                                    and not turning away from
          reference scenarios, taking into                                                 and technology. Further, Bank will
                                                  customers in industries facing
          account the regional (and local)                                                   continue to prioritizes sectors
                                                challenges in the decarbonization
                       context.                                                                based on its exposure and
                                                              process.
                                                                                                   financed emissions.
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                                                                                           2023 Sustainability Report
                                                                                            PT Bank CIMB Niaga Tbk      33




                              Our Climate Action Commitment

          CIMB Niaga together with CIMB Group has stepped in another important milestones in
      sustainability journey by setting 2030 targets towards Net Zero by 2050 for several sectors,
                                               as follows:




    Coal Sector                 Cement Sector                   Palm Oil Sector            Power Sector
Reducing the financing        Reducing the physical            Reducing emissions        Reducing emissions
 portfolio for thermal        intensity of financing          intensity of our palm        intensity by 38%
    coal mining to            clients in the cement            oil portfolio by 16%           (from 2022
 50% from the 2021          sector by 36% from 0.72           (from 2022 baseline)          baseline), with a
       baseline.              to 0.46 tonnes CO2e/               by engaging with       focus on low-carbon
                            tonnes cement produced           customers to shift their        and renewable
                               from 2021 baseline.             production towards         alternative energy
                                                              sustainable palm oil.     sources to accelerate
                                                                                               customer’s
                                                                                            decarbonization
                                                                                                 plans.
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       2023 Sustainability Report
34     PT Bank CIMB Niaga Tbk




     2030 Emission Reduction Targets

                                                                                        Sector


                                                 Palm Oil                     Power               Thermal Coal Mining             Cement


      Target Metric                 Tonnes CO2e/tonnes CPO            KgCO2e/MWh                 % of portfolio exposure   Tonnes CO2e/tonnes
                                                                                                                           cement


      Supply       Chain            » Planting                        » Power generation         » Thermal coal mining     » Cement
      Included in Target            » Milling                                                                                manufacturing
      Setting


      Customer      GHG             » Scope 1 (including emissions    Scope 1 for power          Not available             Scope 1 and
      Emission    Scopes              from land-use change and        generation customers                                 2 for cement
      Included in Target              carbon sequestration) and                                                            manufacturing
      Setting                         Scope 2 for plantations,                                                             customers
                                      factories, and integrated
                                      customers
                                    » Scope 3 upstream activities
                                      (including the procurement
                                      of fresh fruit bunches)
                                      carried out by integrated
                                      customers


      Asset         Classes         » Business loans/financing
      Included    in    the         » Investments held for sale or maturity including corporate bonds/sukuk and equities
      Target Setting                » Facilitation of capital raising activities for customers, including bond/sukuk issuances and initial public
                                      offerings (part of the portfolio of Bank’s subsidiary, PT CIMB Niaga Sekuritas)


      Scenario References           Adjusted       SBTi   FLAG        Adjusted IEA       NZE     IEA NZE 2050 (regional)   SBTi Carbon Intensity
                                    Commodity Pathway for Palm        2050 (regional)                                      Pathway for cement
                                    Oil (regional)                                                                         (global)


      Baseline                      1.81 (as of 2022)                 439 (as of 2022)           100% (as of 2021)         0.72 (as of 2021)


      2030 Target                   1                                 272                        50%                       0.46


      Change Targets                16% reduction                     38% reduction              50% reduction             36% reduction


      NZE Plan                      Align with reference scenario     Align with reference       Eliminating exposure to   Align with reference
                                    in 2030                           scenario in 2030           thermal coal mining by    scenario in 2030
                                                                                                 2040

     Further information on the interim target settings toward NZE 2050 can be found in the official report of CIMB Group, accessible
     through the following link.
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                                                                                                                                                                                        PT Bank CIMB Niaga Tbk        35




  Summary of 2030 Interim Targets Towards NZE 2050


                               Kelapa sawit                                                                                            Power
                              2,5                                                                                                      600

                                                                                                                                       500
                              2,0
                                                                                                                                                        439 kgCO2e/MWh




                                                                                                                Emissions Intensity
                                              1,81 tCO2e/tCPO
Intensitas Emisi




                                                                                                                                       400




                                                                                                                  (kgCO2e/MWh)
  (tCO2e/tCPO)




                               1,5
                                                                  1,52 tCO2e/tCPO
                                                                                                                                       300
                                                                                                                                                                              272 kgCO2e/MWh
                               1,0
                                                                                                                                       200

                              0,5                                                                                                      100

                                0                                                                                                         0
                                     2022        2025      2030       2035     2040     2045     2050                                          2022        2025      2030       2035      2040      2045       2050

                            CIMB’s Baseline                                                                                           CIMB’s Baseline
                            Reference Scenario – Adjusted SBTi FLAG Commodity Pathway for Palm Oil (Regional)                         Reference Scenario – Adjusted IEA NZE 2050 (Regional)
                            CIMB’s 2030 Target                                                                                        CIMB’s 2030 Target




                               Thermal Coal Mining                                                                                     Cement
                             120                                                                                                        0.8
                                                                                                                                                        0.72 tCO2e/t cement
                                                                                                                                        0.7
                             100
CIMB’s Portfolio Exposure




                                              100%
                                                                                                                                        0.6
                                                                                                                Emissions Intensity
                                                                                                                 (tCO2e/t cement)




                              80
                                                                                                                                        0.5
                                                                                                                                                                              0.46 tCO2e/t cement
                              60                                                                                                        0.4
                                                                  50%
                              40                                                                                                        0.3

                                                                                                                                        0.2
                              20
                                                                                                                                         0.1
                                0                                                      0%                                                 0
                                     2022        2025      2030       2035     2040     2045     2050                                          2022        2025      2030       2035      2040      2045       2050

                            CIMB’s Baseline                                                                                           CIMB’s Baseline
                            CIMB Target Pathway                                                                                       Reference Scenario – SBTi Carbon Intensity Pathway for Cement (Global)
                            CIMB’s 2030 Target                                                                                        CIMB’s 2030 Target
                            2040 Target per IEA NZE 2050 (Regional)




  Our Report                                                          [GRI 2-2; 2-3; 2-4; 2-5;201-4] [SUSBA 1.6.2.9] [FN-CB-550a.1] [ACGS-C.1.3; (B)C.1.2]



  Every year, PT Bank CIMB Niaga Tbk (‘CIMB Niaga’ or                                                           is derived from the audited Consolidated Financial
  ‘Bank’) publishes a sustainability report disclosing                                                          Statements by an independent Public Accounting Firm.
  its                       environmental,              social,       and     governance           (ESG)        Employee and electricity usage data are sourced from
  performance                                  information.             The         previous      year’s        various units and branch offices across Indonesia. Bank
  Sustainability Report was released on 10 March 2023.                                                          restated its scope 2 greenhouse gas (GHG) emissions
                                                                                                                data for 2022 and 2021 period, in order to update the
  The information and data presented in this report reflect                                                     calculation method using emission factors according
  the company’s performance for the period 1 January                                                            to the power generation grid in each region. Bank did
  until 31 December 2023, taken from data or information                                                        not receive financial assistance from the government
  at the CIMB Niaga Head Office and operational activities                                                      during the reporting period.
  throughout Indonesia. Financial performance data
Page 36
       2023 Sustainability Report
36     PT Bank CIMB Niaga Tbk




     The Sustainability Report has undergone verification by an independent entity, KAP Siddharta Widjaja & Rekan (KPMG
     Indonesia), in accordance with International Standard on Assurance Engagements (ISAE) 3000 standards, including
     the adoption of Professional Standard for Accountant (SPA) 3410. The appointment of the independent entity received
     approval from the Board of Directors and ensured to be free from any conflicts of interest


     Bank discloses its information in compliance with Financial Services Authority Regulation (POJK) No. 51/POJK.03/2017
     regarding the Implementation of Sustainable Finance and the Preparation of Sustainability Reports. This Sustainability
     Report is also prepared in reference to several frameworks and standards such as the Global Reporting Initiative
     (GRI),GRI-G4 Financial Services Sector Supplement, Task Force on Climate-related Financial Disclosures (TCFD),
     Sustainability Accounting Standard Board (SASB) for the Financial Services Sector, Sustainable Banking Assessment
     (SUSBA)by the World Wide Fund (WWF), Sustainable Development Goals (SDGs), Global Investors for Sustainable
     Development (GISD) Alliance, and ASEAN Corporate Governance Scorecard (ACGS). Additionally, there is no information
     regarding the Global Systemically Important Bank(G-SIB) methodology as Bank is not currently part of this list.




     Priority Material Topics                                         [GRI 3-1; 3-2]



     There is no changes in material
     topics for 2023 compared to the
     previous      reporting        period.   The
     determination of material topics                                                          HIGH
     involving a survey on stakeholders,                         1. Technology
     both internal and external, such as                            a. Data security, privacy and governance
                                                                    b. Digitalization and Innovation
     employees, customers, and Bank
                                                                 2. Governance
     partners conducted in 2022. Bank                               a. Corporate governance, ethics and compliance
     also received feedback and input                               b. Risk management and business resilience
     from investors and rating agencies.                         3. Sustainable Finance Products and Services
                                                                 4. Climate Change
     The      process        of      determining
     material topics was conducted
     by identifying and assessing the
     impact of business through a
                                                                                                         MEDIUM
     review of sustainable financial                             5.   Financial Literacy and Inclusion
                                                                 6.   Customer Experience
     principles.
                                                                 7.   Human Rights
                                                                 8.   Diversity and Inclusion
     Materiality topics prioritization was
     jointly conducted with CIMB Group,
     involving stakeholders and experts.                                 LOW
     This    engagement             encompasses
                                                                 9. Corporate Citizenship and Volunteering
     the     identification          of   topics,
                                                                 10. Employment and Talent Development
     discussions,       topic       assessments,                 11. Welfare, Health and Safety
     and prioritization.                                         12. Biodiversity and Ecosystem Integrity
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                                                                                                                     PT Bank CIMB Niaga Tbk      37




Management Approach to Material Topics
[GRI 3-3] [SUSBA 1.6.2.7] [ACGS-C.1.1; C.1.2; C.2.1]




 1. Technology

   Important Information:
   • Data Security, Privacy and Governance [GRI 418-1]                     • Digitalization and Innovation
     - Policy for fair design and sale of financial products and             - Indirect economic impact [GRI 203-1; 203-2]
       services [GRI FS15]
     - Customer privacy [GRI 418-1]


   Material Topic and its Importance for Company Sustainability:
   Technology plays a critical role in quantifying and reporting digital trust and experience scores


   Impact:
   The banking sector is highly vulnerable to cyberattacks and threats, which can result in losses for both customers and Bank.
   Taking this into consideration, Bank continues to strive for the enhancement and strengthening of operational systems.
   Technology will have an impact on the financial and operational performance of Bank, including its reputation.


   Policies:                                                               Performance Targets:
   • Information Technology                   • IT Continuity Policy       Zero complaints regarding customer data privacy
     (IT) Strategy and                        • End User Computing
     Organization Policy                        Policy
   • IT Systems Development                   • Digital Banking Policy
     Policy                                   • Use of IT Service
   • IT Operations Policy                       Providers Policy
   • IT Communications                        • IT Processes, Risks, and
     Network Policy                             Compliance Policy
   • Information Security
     Policy


   Achievement Strategies:                                                 Achievements:
   • Information and technology training and workshops                     • Enhanced Cyber Security capabilities and capacities to be
   • Utilizing technology efficiently, timely, and cost-effectively          more proactive in strengthening IT security, anticipating
     to produce qualified, reliable, and safe banking products               virus and malware threats, and mitigating digital risks
     and services                                                            by updating the incident management platform and
                                                                             automating application security testing
                                                                           • Development of a Custody & Fund Admin System
                                                                             application that adopts more efficient technologies and
                                                                             new solutions to meet business needs
                                                                           • Integration of the OCTO Digital Credit Card/OCTO Digital
                                                                             Syariah Card into the OCTO Mobile application, allowing
                                                                             customers to use it without the need for a physical card.


   Evaluation Method:                                                      Responsible Directorate:
   Strengthening IT security capabilities and capacities to                Operations and Information Technology Directorate
   proactively anticipate virus and malware threats as well as
   mitigate digital risks
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     2023 Sustainability Report
38   PT Bank CIMB Niaga Tbk




     2. Governance

     Important Information:
     • Corporate Governance, Ethics and Compliance                     • Risk Management and Business Resilience
       - Anticorruption [GRI 205]                                        - Scope and frequency of audits to review the
       - Anti-competitive behavior [GRI 206]                               implementation of social and environmental policies,
       - Marketing and Labeling [GRI 417]                                  as well as risk assessment procedures [GRI FS9][SUSBA
                                                                           1.4.1.8]


     Material Topic and its Importance for Company Sustainability:
     Governance is the basis for all Bank performance, including the implementation of ESG aspects.


     Impact:
     Good governance is one of the key factors for the sustainability of a company. Through good governance, a relationship can be
     established between the management of the organization and stakeholders (customers, shareholders/investors, regulators,
     suppliers, employees, local communities, and labor unions) which affected by the operational activities of Bank through rights
     and obligations in line with the vision and mission that considers ESG issues.


     Policies:                                                         Performance Targets:
     • Governance Policy No. M.12                                      • Instilling a culture of sustainability and incorporating
     • Anti-Bribery and Corruption Policy No. M.11                       sustainability principles into business processes
     • Anti-Money Laundering (AML), Counter-Terrorism Financing        • Award in the ASEAN Corporate Governance Scorecard
       (CTF) and Counter-Proliferation Financing of Weapon of            (ACGS)
       Mass Destruction (CPFWMD) Policy No. C.02                       • Award in the Annual Report Award (ARA)
     • Human Rights Policy No. M.13
     • Anti-Bribery Management System Policy No. M. 14
     • Anti-Fraud Policy No. E.07


     Achievement Strategies:                                           Achievements:
     • Establishment of a Sustainability Unit                          • General Champion of the Annual Report Award (ARA)
     • Adjustment of various charters and policies                       2022
     • Evaluation of governance implementation based on ASEAN          • Implemented an Anti-Bribery Management System
       Corporate Governance Scorecard (ACGS) criteria and                (SMAP) in accordance with SNI ISO 37001
       General Guidelines for Indonesian Corporate Governance          • Issued the Human Rights Policy to strengthen Bank’s
       (PUG-KI)                                                          commitment toward human rights principles
     • Certification of governance procedures in accordance            • Made improvements to the Partner Code of Ethics that
       with international standards, such as The International           now also serves as a Partner Integrity Pact
       Organization for Standardization (ISO)                          • Embedded new Company values and culture via 3
     • Attest the Code of Ethics and Code of Conduct periodically        approaches: EPICC Communication, EPICC Cascading, and
                                                                         EPICC Hardwiring
                                                                       • CIMB Niaga is considered a very excellent company in
                                                                         terms of systems, GCG infrastructure and implementation,
                                                                       • risk management, and compliance
                                                                       • Implementation of compliance reviews utilizing the
                                                                         Aligned Assurance method, in which the Compliance
                                                                         Unit liases with Internal Audit Unit regarding compliance
                                                                         reviews


     Evaluation Method:                                                Responsible Directorate:
     Evaluation of corporate governance implementation based on        Compliance, Corporate Affairs, and Legal Directorate and
     regulatory parameters, ACGS, PUGKI, and best practices            Business Unit, specifically the Good Corporate Governance
                                                                       (GCG) & Sustainability Unit together with the Anti Fraud
                                                                       Management Unit
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                                                                                                                             PT Bank CIMB Niaga Tbk      39




3. Sustainable Finance
   Products and Services
Important Information:
• Economic Performance [GRI 201-1; 201-2; 201-3; 201-4]                      • Approach for the Inclusion of ESG Factors in Credit Analysis
• Product Portfolio and Loan Quality [SUSBA 1.1.1.10]                        • ESG Risk Assessment and Mitigation at Portfolio Level
• Policies Related to Social and Environmental Components and their          • Disclosure of ESG Exposures and Risk Targets
  Implementation in the Company’s Business [GRI FS1]
• Percentage of the Company’s Business Portfolio According to
  Banking Sector for Constrained Individuals [GRI FS6]

Material Topic and its Importance for Company Sustainability:
Sustainable finance plays an important role in providing the financing framework for Bank, supporting the achievement of the SDGs, including
climate change actions and mitigation strategies for climate change and the establishment of a low-carbon economic ecosystem.

Impact:
Financing activities entail sustainability risks. Debtors receiving financing from Bank may potentially face issues related to deforestation, water,
marine, land-use change, community, labor, and human rights. All of these are important sustainability issues. As a responsible Bank, we
collaborate with debtors to minimize the negative impacts of financing activities. Additionally, sustainable finance products/programs will support
a just transition, a low-carbon economy, the achievement of the Paris Agreement, the Sustainable Development Goals, and inclusively engaging
customers, shareholders/investors, regulators, and local communities.

Policies:                                                                    Performance Targets:
• Sustainability Policy No. M.08 and Sustainability Procedure No.            • Issuance of sector guidance documents, including but not limited
  M.08.P.01                                                                     to land-based sectors, high GHG emission sectors, and Agriculture,
• Sustainable Finance Policy No. M.10 and Sustainable Finance                   Forestry, Other Land Use, and Land-Use Change (AFOLULUC)
  Procedure No. M.10.P.01                                                       sectors.
• High Sustainability Risk Sector List                                       • Enhancing sustainable financing portfolios in alignment with the
• Sector Guidance                                                               Indonesian Green Taxonomy (THI) and Bank’s target of achieving
                                                                                net zero GHG emissions by 2050.
                                                                             • Commencing the study of the Indonesian Sustainable Finance
                                                                                Taxonomy (previously known as the Indonesian Sustainable
                                                                                Taxonomy).
                                                                             • Align sustainable finance with Indonesia’s ‘FOLU Net Sink 2030’
                                                                                target (GHG emission rate of -140 million tonnes CO2e by 2030)
                                                                                and promote initiatives that prevent biodiversity loss
                                                                             • Increase in sustainable financing portfolio in the palm oil sector

Achievement Strategies:                                                      Achievements:
• Bank conducts all aspects of due diligence related to a debtor/            • Rp55.45 trillion in total financing portfolio in the sustainable
  prospective debtor’s sustainability, including through Sustainability         business activity category (KKUB)
  Due Diligence (SDD), Enhanced Sustainability Due Diligence (ESDD),         • Rp5.4 million financed to MSMEs through channeling, where
  and Sector Guidance                                                           Rp2.22 million or 41% of funds were disbursed to women debtors
• Bank provides an Action Plan to debtor/prospective debtor who do              (36% out of total MSME channeling debtors)
  not meet Bank’s minimum sustainability requirements                        • Almost Rp9.5 trillion financed for sustainable palm oil (customers
• Bank continuously encourages customers/prospective customers to               pursuing or have ISPO/RSPO certification)
  adopt and implement sector-specific best practices for sustainability      • Issuance of Manufacturing Sector Guidance
• Identify and classify Bank’s portfolio based on its sustainability         • Updating the Construction and Infrastructure Sector Guidance
  risks, categories of sustainable business activities, and categories of    • Integrate aspects of Human Rights and NDPE commitments on
  products and services with environmental, social, and sustainable             SDD and ESDD
  impacts (Green Social Sustainable Impact Products and Services),
  and the Indonesia Green Taxonomy
• Integrate and mainstream the implementation of No Deforestation,
  No Peat, No Exploitation (NDPE) through Sector Guidance

Evaluation Method:                                                           Responsible Directorate:
Conducting regular internal audits and Control Effectiveness Testing         Compliance, Corporate Affairs, and Legal Directorate and Business
(CET) on sustainable finance implementation, including SDD and ESDD          Unit, specifically the Sustainability Unit
in relevant units.
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     2023 Sustainability Report
40   PT Bank CIMB Niaga Tbk




     4. Climate Change

     Important Information:
     • Energy Use                                                      • Water Management
     • Paper Savings                                                   • Waste Management


     Material Topic and its Importance for Company Sustainability:
     Climate change is an important topic as it has the potential to affect ESG aspects and banking performance. Climate change
     may also affect physical risks, placing customers’ assets and ability to meet their obligations at risk.


     Impact:
     Climate change can affect financial stability. The physical impacts of climate change may result in asset damage, operational
     disruptions, and negative effects on customers and stakeholders. Additionally, companies that fail to respond appropriately to
     policy, technology, and market changes aimed at addressing climate change may face regulatory, reputational, and market risks.
     Bank’s support for climate change mitigation and adaptation actions will contribute to a just transition, a low-carbon economy,
     achieving the Paris Agreement, the Sustainable Development Goals, and inclusively engaging customers, shareholders/
     investors, regulators, and local communities.


     Policies:                                                         Performance Targets:
     • Sustainability Policy No. M.08 and Sustainability Procedure     • Net zero GHG emissions for Scopes 1 and 2 emissions in
       No. M.08.P.01                                                     CIMB Niaga’s operations by 2030
     • Smart Spending Policy No. E.01.I.01                             • Net zero GHG emissions overall (including Scopes 1, 2, and
     • Green Office Policy                                               3) or become a net zero emission (NZE) organization by
     • Carbon Emissions Inventory and Methodology Procedure              2050
       No. M.08.P.02                                                   • Setting 2030 targets for several sectors, as follows:
                                                                         a. Coal Sector. Reducing the financing portfolio for thermal
                                                                            coal mining to 50% from the 2021 baseline.
                                                                         b. Cement Sector. Reducing the physical intensity of
                                                                            financing clients in the cement sector by 36% from 0.72
                                                                            to 0.46 tonnes CO2e/tonnes cement produced (2021
                                                                            baseline).
                                                                         c. Palm Oil Sector. Reducing emissions intensity of our palm
                                                                            oil portfolio by 16% (from 2022 baseline). This is done
                                                                            by engaging with customers to shift their production
                                                                            towards sustainable palm oil.
                                                                         d. Power Sector. Reducing emissions intensity by 38%
                                                                            (from 2022 baseline), with a focus on low-carbon and
                                                                            renewable alternative energy sources to accelerate
                                                                            customer’s decarbonization plans.


     Achievement Strategies:                                           Achievements:
     • Monitoring and evaluating activities and/or portfolios that     • Installing solar panels at a branch office.
       may generate/be related to Scope 1, 2, and 3 GHG emissions.     • Acquisition of carbon units from the Indonesia Carbon
     • Implementing various energy initiatives.                          Exchange (IDXCarbon) and Renewable Energy Certificates
     • Undertaking the Net Zero Strategy & Climate Risk                  from PLN
       Management project.                                             • 8.79 GJ/Rp Rp billion in energy intensity
     • Developing models and methodologies for climate scenario        • The intensity of Scope 1 and 2 GHG emissions including
       analysis (CSA) and participating in a climate risk stress         climate change mitigation efforts is 1.60 tonnes of CO2
       testing (CRST) pilot project as requested by the Financial        equivalent/Rp billions or a decrease of 17% compared to
       Services Authority (OJK).                                         2022
     • Initiating a study on Carbon-Offset schemes, internal carbon    • 6.53 m3/Rp billion in water use intensity
       pricing (ICP), and exploring various instruments with the       • Paper usage intensity is 1.88 kg/Rp billion or down 2%
       potential to mitigate risks arising from GHG emissions in         compared to 2022
       Bank’s operations.


     Evaluation Method:                                                Responsible Directorate
     GHG emissions reporting with initiatives to reduce GHG            Strategy, Finance & Strategic Procurement, and Admin
     emissions in accordance with predetermined sustainability         Property Management (SPAPM) Directorates, specifically
     performance targets                                               the SPAPM Unit and supported by all other working units
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5. Financial Literacy and Inclusion

Important Information:
• Sustainable Finance Competency Development.                        • Small Business Promotion and Community Development
• Initiatives to Improve Financial Literacy [GRI FS16]                 [FN-CB-240.a.1;FN-CB-240.a.2]
                                                                     • Financial Literacy Equality [FN-CB-240.a.3;FN-CB-240.a.4]


Material Topic and its Importance for Company Sustainability:
Financial literacy and inclusion are crucial topics as banks play a vital role in enhancing financial understanding within society.


Impact:
Inclusivity in providing high financial access to all segments of society in a country can drive economic growth, ensure financial
system stability, support poverty alleviation initiatives, and contribute to reducing economic disparities among communities.
It is not only essential to enhance financial inclusion for the public but also crucial to improve financial literacy. Insufficient
understanding of financial products among society may increase the risks associated with financial products.


Policies:                                                            Performance Targets:
• Corporate Social Responsibility Policy No. M.09 and                • Enhancing financial literacy understanding
  Corporate Social Responsibility Policy Procedure No.               • Conducting Financial Education and Literacy activities
  M.09.P.01                                                            for secondary school students in the Ayo Menabung dan
                                                                       Berbagi (AMDB) program and elementary school students
                                                                       in the Tour de Bank (TDB) program, and providing Student
                                                                       Savings (SimPel) to elementary to high school students
                                                                       (SD-SMP-SMA/K).
                                                                     • Organizing financial education and literacy for various
                                                                       groups, such as CIMB Niaga scholarship recipients,
                                                                       educators, MSME, women, and vulnerable groups.


Achievement Strategies:                                              Achievements:
• CIMB Niaga actively participates in financial education            • In the 2023 AMDB program, 4,737 secondary school
  and literacy activities, including opening savings accounts          students (SMP-SMA/K) participated, showing a 37%
  through the Ayo Menabung dan Berbagi (AMDB) and Tour                 increase in financial literacy understanding according to
  de Bank (TDB) programs.                                              the analysis.
                                                                     • The 2023 TDB program had 2,909 participants from
                                                                       primary schools (SD), demonstrating a 28% improvement
                                                                       in financial literacy understanding according to the
                                                                       analysis.
                                                                     • Through the 2023 AMDB and TDB programs, 1,954
                                                                       students received student savings accounts.
                                                                     • Financial Literacy Webinar for Teachers reaching 148
                                                                       educators from schools participating in the 2023 AMDB
                                                                       and TDB programs.
                                                                     • 223 female and vulnerable MSME players in Eastern
                                                                       Indonesia received Entrepreneurship/Business financial
                                                                       literacy training.
                                                                     • 87 university students received scholarships from CIMB
                                                                       Niaga under the Be Smart program.
                                                                     • Financial literacy training was conducted for 30 people
                                                                       with disabilities.


Evaluation Method:                                                   Responsible Directorate
• Conducting pre and post-tests for various programs,                Compliance, Corporate Affairs, and Legal Directorate,
  especially those related to financial education and literacy.      specifically the Community Development Unit.
• Periodically reviewing the content of financial education
  and literacy materials.
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     6. Customer Experience

     Important Information:
     • Sustainable Products and Services.                               • Assessment of Health and Safety Impact of Various
     • Product and Service Safety.                                        Categories of Products and Services [416-1].
     • Data Security and Customer Privacy [418-1].                      • Consumer Health and Safety.
     • Policies for Fair Design and Sale of Financial Products and      • Customer Information Protection [418-1].
       Services [GRI FS15].                                             • Financial value of products and services designed to
                                                                          support social well-being [GRI FS7].


     Material Topic and its Importance for Company Sustainability:
     • Customer experience is a crucial aspect to consider to ensure that customers feel secure in their transactions, fostering
       positive experiences that contribute to customer loyalty.
     • Bank establishes KPIs for products and services, measuring customer loyalty using the Net Promoter Score (NPS).
     • Customer satisfaction is Bank’s primary commitment, manifested through the internalization of EPICC corporate values,
       where Customer Centricity is a mandatory value embraced by all employees in their daily activities.


     Impact:
     One of the keys to the sustainability of a bank is the trust and support of its customers. Bank continues its efforts to provide
     the best experience for its customers. A positive customer experience not only encourages customer retention but also enables
     Bank to attract new customers.


     Policies::                                                         Performance Targets:
     • Customer Protection Policy (Syariah) E.04.A.08                   • Enhancing customer satisfaction survey outcomes.
     • Customer Protection Policy (Conventional) E.04.A.10              • Reducing the number of complaints received by Bank.
                                                                        • Improving customer experience by measuring NPS.


     Achievement Strategies:                                            Achievements:
     • Conducting periodic customer satisfaction surveys.               • Maintaining customer loyalty levels by achieving an NPS
     • Providing various service channels, such as branch offices,        measurement of 50% in 2022 and 2023.
       Digital Lounge, 24/7 Contact Center, website, Live Chat,         • Achieving a 99% customer complaint resolution rate
       WhatsApp CIMB Niaga, and social media accounts such as             and reducing customer complaints related to financial
       Facebook, Twitter, and Instagram.                                  transactions with an achievement ratio of 0.61 bps.
     • Improving the performance of the Customer Care and
       Customer Experience units by enhancing the quality of
       customer complaint resolutions.
     • Establishing KPIs for products and services by measuring
       NPS.
     • Conducting periodic education on transaction security
       through service channels.
     • Monitoring the implementation of consumer protection
       policies regularly.


     Evaluation Method:                                                 Responsible Directorate
     Conducting customer satisfaction surveys.                          Consumer Banking Directorate, specifically the Customer
                                                                        Experience & Protection Unit
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7. Human Rights

Important Information:
• Equal Employment Opportunity                                   • Human rights training for security personnel [410-1]
• Leave Entitlement [410-3]                                      • Diversity, Equality, and Inclusion


Material Topic and its Importance for Company Sustainability:
Human Rights is a crucial topic that requires attention as Bank acknowledges all human rights principles, and matters related
to human rights are inseparable and inalienable.


Impact:
Businesses involved in human rights violations face financial, legal, reputational risks, and damage to relationships with
stakeholders. As a responsible business, Bank has an obligation to uphold human rights laws and regulations and strives
to implement international human rights principles and frameworks throughout its operational aspects, supply chains, and
business relationships. This includes promoting fair labor practices and treating all communities with respect.


Policies:                                                        Performance Targets:
• Human Rights Policy No. M.13                                   • Implementation of human rights aspects in the SDD
• CIMB Niaga Collective Labor Agreement (CLA)                      process for Bank’s financing and business relations,
• Recruitment and Selection Policy No. A.02.01                     including in the Sector Guidances.
                                                                 • Socialization of human rights principles.


Achievement Strategies:                                          Achievements:
• Implementing sustainability and human rights principles,       • No reports of human rights violations within Bank’s
  taking into account good corporate governance,                   operational environment through WBS.
  precautionary principle in banking, compliance, and risk       • Employing vulnerable employees as a manifestation of
  management.                                                      equal employment opportunities.
• Conducting SDD reviews using the Exclusion List that covers    • No complaints/reports indicating unfair recruitment
  human rights aspects.                                            processes.
• Providing a complaint channel (whistleblowing) or
  grievance mechanism through a whistleblowing system
  (WBS) managed by an independent and professional third
  party.


Evaluation Method:                                               Responsible Directorate
Bank periodically conducts a human rights risk assessment        • Human Resources Directorate
of its business activities and operational activities and        • Compliance, Corporate Affairs, and Legal Directorate,
establishes necessary mitigation measures. In case of human        specifically the Sustainability Unit
rights violations, Bank will transparently provide information
on the progress and resolution of the cases to stakeholders
through various communication channels, including the
sustainability report.
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     8. Diversity and Inclusion

     Important Information:
     • Governance body and employee diversity [405-1]
     • Basic Salary and Remuneration Ratio of Women to Men [405-2]


     Material Topic and its Importance for Company Sustainability:
     Employee diversity and inclusion are crucial considerations for Bank, as every employee deserves equal opportunities without
     discrimination based on ethnicity, religion, race, social status, gender, or any other potentially discriminatory factors that may
     violate human rights.


     Impact:
     Diversity within a company can provide different perspectives, leading to more innovative ideas and solutions. An inclusive
     work culture also attracts diverse talents and contributes to better employee engagement. Through diversity and inclusion a
     company can enhance its image and make better-informed decisions.


     Policies:                                                           Performance Targets:
     • Employee Code of Ethics and Code of Conduct Policy No.            Creating a positive and inclusive workplace rooted in EPICC
       A.07.01                                                           values is essential to achieve a healthier organizational
     • Human Rights Policy No. M.13                                      culture.


     Achievement Strategies:                                             Achievements:
     • Establishing strategic objectives that prioritize diversity and   • Employing vulnerable employees as a manifestation of
       inclusion (D&I) principles integrated into the overall growth       equal employment opportunities.
       strategy of Bank through policy issuance.                         • Building awareness within the Company by broadcasting
     • Education to enhance awareness of D&I for all employees.            12 thematic campaign series related to diversity and
     • Monitoring and reporting on the implementation of D&I               inclusion principles through internal communication
       principles through a data-driven approach, such as the D&I          channels.
       dashboard and reporting.                                          • Providing over 1,100 internal training materials related to
     • Ensuring that leaders are consciously and responsibly               D&I.
       supporting the creation of an inclusive cultural environment.     • Implementing the Flexible Benefit Program, allowing
     • Supporting employees in gaining equal opportunities for             employees to customize benefit benefits according to
       development and well-being through enrichment and                   their individual needs.
       empowerment programs.                                             • Continuing the management of 9 Sport, Hobby & Interest
     • Providing supportive infrastructure to ensure that D&I              and Enlightenment (SHINE) employee clubs with over
       performance targets proceed according to plan.                      1,100 active participants.


     Evaluation Method:                                                  Responsible Directorate
     The Company conducts evaluations of each initiative’s               • Human Resources Directorate
     implementation to assess its effectiveness in internalizing         • Consumer Banking Directorate, specifically the Marketing,
     D&I principles through question-and-answer sessions or                Brand & Customer Experience Sub-Directorate
     interviews.                                                         • Compliance, Corporate Affairs, and Legal Directorate,
                                                                           specifically the Sustainability Unit
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9. Corporate Citizenship and Volunteering

Important Information:
• Equal Employment Opportunity
• Governance body and employee diversity [405-1]
• Volunteering


Material Topic and its Importance for Company Sustainability:
Bank ensures that every prospective employee is given a fair opportunity and can positively contribute to the environment and
society.


Impact:
The long-term success of an organization depends on a strong socio-economic foundation. To achieve long-term development
and prosperity, all segments of society must progress and benefit from economic growth. Bank is committed to leveraging
resources to create a positive social impact.


Policies:                                                        Performance Targets:
• Recruitment and Selection Policy No. A.02.01                   Implementing an Employee Volunteer Program, with an
• Human Rights Policy No. M.13                                   average of 3 hours per employee.


Achievement Strategies:                                          Achievements:
• Conducting socialization sessions for the Employee             The Employee Volunteer Program has achieved an average
  Volunteer Program                                              of 5.1 hours per employee.
• Innovating the conversion of various initiatives/programs
  into volunteer hours


Evaluation Method:                                               Responsible Directorate
Recording the Employee Volunteer Program through Y.O.D.A.        All directorates, under the coordination of the Human
                                                                 Resources Directorate and Compliance, Corporate Affairs,
                                                                 and Legal Directorate, specifically the Community
                                                                 Development Unit
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     10. Workforce and Talent Development

     Important Information:                                             • Skill development and transition program for pre-
     • Employee Training and Skill Development                            retirement [404-2]
     • Average Employee Training Hours [404-1]                          • Regular review of performance and career development
                                                                          [404-3]


     Material Topic and its Importance for Company Sustainability:
     Workforce and talent development is an integral part of enhancing the competencies and capacities of Bank’s employees to
     ensure continuous innovation and optimal performance.


     Impact:
     Employees are a crucial asset for Bank. Therefore, effective management and enhancement of employee quality, including
     training and skill development, are essential. Improving employee skills can lead to increased productivity, ultimately impacting
     Bank’s overall performance.


     Policies:                                                          Performance Targets:
     • Employee Learning Policy A.04.02                                 Providing effective and high-quality employee capability
     •   Promotion Policy A.04.04                                       development programs is a key focus centered around three
     •   Talent Management Policy A.04.06                               main principles: experience, exposure, and training. These
     •   Employee Transfer (Mutation) Policy A.04.07                    programs are tailored to Bank’s needs, reflected in various
     •   BOD and BOC Learning and Development Program Policy            aspects such as the number of training types, training hours,
         A.04.08                                                        participant numbers, and more.


     Achievement Strategies:                                            Achievements:
     • Focusing on three main principles in human resources             • Increased the average training hours per employee from
       development:                                                       19 hours to 22 hours or approximately 177.48 hours.
       o Experience: Developing competencies through expanded           • Achieved a total of 350,329 training participants,
          tasks and responsibilities, job rotations through               surpassing the target of 226,712 participants.
          structured and integrated talent development programs         • Engaged 409 employees in the OPeRA Innovation event,
          to support the enhancement of employee competencies             generating 372 innovative ideas.
          to meet the expected success profile.                         • Availability of VR devices in 325 branch locations across
       o Exposure: Development through various programs such              95 cities in Indonesia and established 6 VR Learning
          as coaching and mentoring, networking opportunities,            Centers (VR Corners) with 21 training modules. The VR
          assignments in various strategic cross-country or cross-        initiative received recognition in the Internal Process
          functional projects, and assignments in subsidiaries or         Innovation category at the IDX Channel Innovation Award
          CIMB Group in various countries.                                in 2023.
       o Education: Integrated programs designed to develop             • Offered 1,767 learning modules on LOG, covering various
          individual, managerial, and leadership competencies as          areas such as mandatory certification programs, basic
          well as specific functional and technical competencies          core competencies, basic sales fundamentals, basic
          needed to support key business objectives.                      service fundamentals, Sharia, Digital, Data, and SPPUR.
     • Providing flexible learning media through the utilization        • Achieved targeted evaluation results, with participant
       of VR (Virtual Reality) and LoG (Learning on the Go)               reaction evaluation at 4.69 (exceeding the target of
       technologies as e-learning to enhance effectiveness and            4.25) and participant knowledge evaluation at 88.22
       efficiency.                                                        (surpassing the target of 80).


     Evaluation Method:                                                 Responsible Directorate
     Conducting a review process on participants’ reactions and         Human Resources Directorate, specifically the Learning &
     knowledge following each training program implementation.          Development Unit
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11. Welfare, Health, and Safety

Important Information:
• Occupational Health and Safety Management System [403-1]       • Employee health and safety training [403-5]
• Occupational health services [403-3]                           • Employee health quality improvement [403-6]
• Employee participation, consultation, and communication        • Employees covered by the occupational health and safety
  on health and safety [403-4]                                     management system [403-8]
                                                                 • Safe and Adequate Working Environment


Material Topic and its Importance for Company Sustainability:
Employee Well-being, Health, and Safety are crucial aspects that Bank prioritizes to provide a conducive and safe working
environment, ensuring positive impacts on both employees and the community.


Impact:
Poorly managed well-being, health, and safety can pose risks to Bank’s reputation. Through effective management of well-
being, health, and safety, a healthy and safe working environment can be created, reducing the likelihood of work-related
accidents/illnesses that may lead to demotivation and decreased work productivity.


Policies:                                                        Performance Targets:
· Work Security and Safety Risk Management Policy A.11.01        • Achieving zero accidents in Bank’s operational activities.
                                                                 • Ensuring the physical and mental health of employees to
                                                                   support work productivity.


Achievement Strategies:                                          Achievements:
• Implementing the Hybrid Working (HyWork) initiative as a       • No workplace accidents occurred during the year 2023.
  collaborative working approach for employees, whether          • All employees have completed training on the use of fire
  working in the office or from home, and providing HySpace        extinguisher through the Virtual Reality (VR) Module Fire
  facilities such as co-working spaces.                            Drill, accessible using VR Headsets available in VR Corners
• Providing lactation room and health insurance benefits for       and branch offices throughout Indonesia.
  every employee.
• Offering HyFit facilities as a space for improving physical,
  spiritual, and mental health.


Evaluation Method:                                               Responsible Directorate
The Company conducts evaluations for each initiative             Human Resources Directorate; Strategy, Finance & Strategic
implemented to assess its effectiveness.                         Procurement, and Admin Property Management (SPAPM)
                                                                 Directorates, specifically the SPAPM Unit
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     12. Biodiversity and Ecosystem Integrity

     Important Information:
     • Operational locations owned, leased, managed, or adjacent       • Significant impacts of activities, products, and services on
       to, protected areas and areas with high biodiversity value        biodiversity [304-2].
       outside protected areas [304-1]                                 • Biodiversity Conservation Efforts.


     Material Topic and its Importance for Company Sustainability:
     Bank ensures that its operational activities and business relationships, including financing for customers, do not negatively
     impact biodiversity and ecosystem integrity.


     Impact:
     Business activities heavily rely on nature. Biodiversity degradation poses a high risk to the sustainability of debtor-owned
     companies, indirectly affecting Bank through the potential increase in default risk.


     Policies:                                                         Performance Targets:
     • Sustainability Policy                                           • SDD and/or ESDD implementation on business
     • Sustainable Finance Policy                                        relationships
     • Bank’s commitment to No Deforestation, No Peat, No              • SDD and/or ESDD implementation on financing portfolios
       Exploitation (NDPE)
     • Exclusion List


     Achievement Strategies:                                           Achievements:
     • Implementation of SDD and/or ESDD mechanisms                    • 100% of debtors in the corporate banking segment have
     • Through Sector Guidance, Bank encourages customers and            conducted SDD and/or ESDD
       business relations to adopt sustainability best practices,      • 100% of business relations have conducted SDD
       particularly applying the NDPE principles in the palm oil and   • Majority of Bank’s debtors in the palm oil and forestry
       forestry sector.                                                  sectors have committed to NDPE


     Evaluation Method:                                                Responsible Directorate
     Conducting periodic internal audits and Control Effectiveness     Compliance, Corporate Affairs, and Legal Directorate,
     Testing (CET) on the implementation of sustainability and         specifically the Good Corporate Governance & Sustainability
     sustainable finance, including SDD and ESDD, in the relevant      Unit.
     units.
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01
     Pillar
     Sustainable
     Action
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       1 : 28.07                       8.3%              1.13:1 1.18:1
        Compensation ratio         Growth in median        Males               Females
         of median income           compensation
         employees to the             employees
          highest income                 [GRI 2-21]




                                                           Ratio of lowest wage

                                      11.9%              employees compensation
                                                            against its Regional
                                    Highest income            Minimum Wage
                                                                   [POJK51-F.20]
                                      employees
                                    compensation
             1 : 0.7                    growth

           Ratio of highest
           paid employees
                                                            0.90 : 1
           against median
            compensation
                                       3.07              The lowest compensation
             employees            Human Capital Return      ratio for males and
               growth                on Investment        females employees [GRI
                                        (HC ROI)                      405-2]
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We Together with
Employees
Employment and
Employee Equality
[POJK51-F.21] [SUSBA 1.4.2.4] [ACGS C.6.1; (B)C 1.6]



CIMB Niaga recognizes that workforce management is a
key element of business strategy implementation. This is
exemplified by Bank’s work culture of Enabling Talent, Passion, Integrity & Accountability, Collaboration, Customer
Centricity (EPICC). The EPICC culture aligns with Bank’s commitment to create a working environment that prioritizes,
respects, and upholds Human Rights. The results of the 2023 Organizational Health Index (OHI) survey indicate that
Bank has risen to the top 10% of companies with a score of 91, marking a 6-point increase compared to the previous
year.


Bank also provides all (100%) employees with opportunities for career development, assessed through performance
evaluations based on Key Performance Indicators (KPIs). One notable KPI is the achievement of sustainability
performance.


Apart from employees, all Bank’s Board of Directors members own sustainability-related Key Performance Indicators
(KPIs) which contribute of 5% from total KPI. Achievement of this sustainability performance will tie up to the
remuneration bonus awarded to each Board of Directors members.



                                                         Corporate Values and Culture




                                       E P I C C

   ENABLING TALENT                        PASSION                 INTEGRITY &            COLLABORATION             CUSTOMER
    Our commitment                      We pursue               ACCOUNTABILITY          We commit to team          CENTRICITY
     is to empower                     excellence in           Our commitment is          over individual      Our determination
   and develop every                  all we do and            to act in an ethical      success, as CIMB     is to put customers
  employee and strive               deliver beyond the           and trustworthy         Niaga’s success is   first and always do
  to be the best place                   ordinary.               manner and be          my success as well        right by them.
   for the best talent.                                         accountable of all       as our collective
                                                                   our actions.              success.
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                    Employment Policies
                    1. Sustainability Policy No. M.08
                    2. Human Rights Policy No. M.13
                    3. Diversity Policy on the Composition of Members of the Board of Commissioners and Board
                         of Directors No. M. 07
                    4. Code of Ethics and Code of Conduct Policy No. A.07.0
                    5. Recruitment and Selection Policy No. A.02.01
                    6. Employee Learning Policy A.04.02
                    7. Talent Management Policy A.04.06
                    8. Board of Directors and Board of Commissioners Learning and Development Policy A.04.08
                    9. Workplace Security and Safety Risk Management Policy A.11.01




     Respecting Human Rights in Employment Aspects [POJK51-F.18; F.19] [GRI 2-30; 401-3; 404-3; 410-1]


                                     Description                                                 Achievements in 2022

      Freedom of                    Bank has four labor unions as employee       All (100%) CIMB Niaga employees are included in the CLA.
      assembly and                  representatives, and together with Bank’s
      association                   management, periodically reviews and         The latest CLA has been disseminated to all employees
                                    updates the Collective Labor Agreement       through various channels, including attestation and
                                    (CLA)                                        internal Bank communications.


      Working hours                 Based on labor laws and regulations, as      Working hours are performed in accordance with labor
                                    well as Article 17 of the CIMB Niaga CLA,    laws and regulations as well as the CLA.
                                    employees work eight hours a day or 40
                                    hours a week, excluding work breaks


      Equal employment              Bank provides equal work opportunities       » Total employees consist of 49% male and 51% female
      opportunity                   for all employees. The employee                employees.
                                    recruitment process is carried out           » 35% female representatives on the Board of
                                    transparently and without discriminating       Commissioners and Board of Directors (senior
                                    against ethnicity, religion, race, inter-      executive).
                                    group, social status, gender, or any other   » 35% female representatives in senior management.
                                    factors that have the potential to violate   » No complaints or reports regarding an unfair
                                    human rights. This is also stated in the       recruitment process were received.
                                    Recruitment and Selection Policy No. A.      » CIMB Niaga employs 7 people with disabilities.
                                    02.01                                        » 1,202 employees, or 11% of the total workforce, received
                                                                                   promotions (including career advancements and/or
                                                                                   increment and/or compensation) comprising an equal
                                                                                   split of 50% male and 50% female employees.
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                                Description                                                  Achievements in 2022

    Child labor (Below        Bank does not engage or participate in         There were no cases of child work, minors, forced labor,
    the age of 18 years       the employment of child labor, minors,         modern slavery, migrants, human trafficking, and child
    which endangering         or forced labor, nor it is involved directly   labor (below the age of 18 years which endangering safety
    safety and/or below       or indirectly with business partners who       and/or below the age of 15 years) practices within the
    the age of 15 years),     engage in these practices                      operations of CIMB Niaga and its business partners.
    and forced labor


    Leave Entitlements        Bank employees are entitled to take            Bank provides maternity leave and paternity leave
                              religious leave, unpaid leave, menstrual       entitlements to all employees according to applicable
                              leave, maternity leave, and miscarriage        regulation. In 2023, Bank recorded 358 female employees
                              leave. Male employees receive three days       took maternity leave* and 272 male employee took
                              of paternity leave if their legal wife has     paternity leave. A total of 333 female and 262 male
                              a miscarriage, while female employees          employees returned to work after maternity and paternity
                              receive three months                           leave.


    Human rights              CIMB Niaga, in collaboration with third        100% of security personnel attended human rights aspects
    training for security     parties, periodically provides human           training, involving vendors/third parties and contracted
    personnel                 rights training to security personnel.         security personnel which also accompanied by CIMB Niaga
                                                                             representative.

*    Including misscarriage




Diversity, Equality, and Inclusion
Bank respects diverse, equal, and inclusive workforce.
Bank upholds the principles of equal employment
opportunity, fair treatment, inclusiveness, dignity, and
respect, as outlined in the Code of Ethics & Code of
Conduct Policy and Human Rights Policy. Bank ensures
that every employee has the opportunity for growth,
is rewarded based on merit, and has equal access to
career opportunities


As a tangible commitment to create a positive working
environment that embraces diversity and mutually
respects differences, which also aligned with the EPICC
values, the Bank conducted a focused group discussions
(FGD) to discuss Diversity and Inclusion in CIMB Niaga.
This FGD serve as a platform to share perspectives,
experiences, and ideas towards the urgency of fostering
an inclusive and diverse workplace.
Page 54
     2023 Sustainability Report
54   PT Bank CIMB Niaga Tbk




                                                                   Ensuring Employee
          EPICC Internalization                                    Welfare            [GRI 201-3; 401-2; 404-2] [ACGS C.6.1]
          Achievements
          a. Conducted 9 Town Hall sessions at the
                                                                   Bank provides various benefits to safeguarding and
               Head Office and Regional Offices to provide
                                                                   enhancing the well-being of its employees. One of
               employees with the opportunity to engage
                                                                   the comprehensive benefits offered includes a long-
               directly with the Board of Management
                                                                   term savings plan for retirement starting at the age
               (BMC) and Senior Leaders.
                                                                   of 55. Bank includes employees in the Employment
          b. Expanded communication channels in
                                                                   Social Security Program (BPJS Ketenagakerjaan),
               EPICC internalization process through 11
                                                                   which       encompasses     work      accident      insurance,
               episodes of EPICC Podcasts with BMC and
                                                                   pension plan and death claim. The premium
               11 episodes of HyTalk.
                                                                   contributions for the BPJS Ketenagakerjaan program
          c. Continued the implementation enabling
                                                                   contributed by CIMB Niaga amounted to 6.24%,
               talent intervention to develop internal
                                                                   while employee contribution is 3%.
               talent to higher levels via our flagship
               programs such as The Complete Manager,
                                                                   Bank allocates pension funds, engaging independent
               The Signature Program, Digital Leadership
                                                                   actuaries for all permanent employees as the
               Program, adding more than 165 LOG online
                                                                   participants. The pension and other long-term
               training materials, and launching 2 new
                                                                   benefits disbursed in 2023 amounted to Rp698.09
               Virtual Reality (VR) Corners in Surabaya
                                                                   billion.
               and Bintaro (a total to 6 VR Corners).
          d. Continued the implementation of ASIK and
                                                                   Prior to retirement period, employees join the
               NGOPI EPICC Collaboration (104 sessions)
                                                                   retirement training covering psychological, health,
               and conducted EPICC Connect (20 sessions
                                                                   and financial aspects. Until the end of 2023, a total
               involving the participation of 15 Key Focal
                                                                   of 28 employees participated in this retirement
               Points and 284 EPICC Ambassadors).
                                                                   training.
          e. Executed             various   Employee    Wellness
               Programs, such as the opening of the
               Gelora CIMB Niaga Sports Center in Griya
               Niaga Bintaro, ensuring the continuity of
               the SHINE Employee Club as a platform
               for employees’ extracurricular activities,
               organizing          the   CIMB   Niaga   Olympic,
               and regularly hosting events like CIMB
               Niaga’s 68th Anniversary and Year-End
               Celebration.
          f.   Recognized employees who consistently
               embedded EPICC values in their daily
               activities through the EPICC Star category
               in OPeRa 2023.
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Bank also believes that employee well-being impacting both Bank and the community in several aspects, for instance
towards career development, financial stability, teamwork, and community engagement. In 2023, Bank introduced
innovations related to employee well-being, supported by five key elements:




       Physical, Spiritual and
                                                                                       Community Wellbeing
           Mental Wellbeing




   Career Wellbeing                                                                             Financial Wellbeing




                                                   Team Wellbeing




Physical, Spiritual & Mental Wellbeing: SHINE (Sports,
Hobby, Interest, and Enlightenment), a community            Financial Wellbeing: Flexible options for employee
established to provide employees with opportunities         benefit programs (lifestyle benefits) and scholarships
to engage in sports (such as basketball, football,          for employees’ children.
badminton, and more) and spiritual activities to
accommodate various religious practices. Additionally,      Team Wellbeing: Employees may build meaningful
for mental health, Bank offers Ruang Cerita (Sharing        relationships and mutual trust through workplace
Space), i.e. sessions with psychologists, and individual    activities   such   as     company     outings,       potlucks,
consultations for selected participants through virtual     brainstorming sessions, etc.
programs.
                                                            Career Wellbeing: Providing resources, motivation,
Community Wellbeing: Bank fulfills its corporate social     and opportunities for employees to achieve their
responsibility (CSR) commitment as part of building         career goals for the present and future (such as Opera
harmonious and mutually beneficial relationships with       Innovation Awards, Kejar Mimpi Employee Warrior, CIMB
the environment, communities, society, and all other        Niaga Has Talent, etc.).
stakeholders. The CSR program is formulated based on
4 (four) main pillars: Education, Health and Community      The impact of the Employee Wellbeing innovations
Well Being, Economic Empowerment, and Climate and           measured by the Organizational Health Index (OHI).
Environment. The selection of these pillars aims to align   This reflected in the OHI 2023 survey results, showing
the CSR programs with the Bank’s sustainable finance        improvement from the previous year and successfully
vision and mission as well as business strategy.            placing CIMB Niaga in the top 10% (top decile) compared
                                                            to other financial institutions in Asia.
Page 56
       2023 Sustainability Report
56     PT Bank CIMB Niaga Tbk




     HyWork Initiative
     Bank continuously implements and conducts studies                    and engagement while focusing on customer service,
     about     HyWork,         i.e.   Happy   Working,   method   for     organizational and employee needs, operational risk,
     employees, whether they are in the office or work from               and data security.
     home. This initiative aims to provide the best experience
     to employees through a flexible yet effective working                The HyWork initiative has received several awards
     style based on the nature of their job (Flex and Non-                and recognitions, including HR Asia’s Best Companies
     Flex). This implementation also aims to promote                      to Work for in Asia 2023 – Indonesia Region and HR
     workplace wellness, increasing productivity, flexibility,            Excellence Awards 2023 in the Wellbeing Management
                                                                          category.




           The Internal Customer Satisfaction Survey (ICSS) is an annual internal survey designed
           to measure the level of collaboration as well as quality of cooperation among working
            units that frequently interacting. In 2023, CIMB Niaga achieved an ICSS score of 3.27
                reflecting an improvement of almost 3% compared to the ICSS score in 2022.




     Employee Health and Safety                                         [POJK51-F.21] [GRI 403-1; 403-2; 403-3; 403-4; 403-5; 403-6; 403-7; 403-8;

     403-9; 403-10]



     Occupational health and safety (OHS) is our top priority.
     Bank is committed to reducing or eliminating potential
     workplace risks impacting employee well-being to
     ensure a decent and safe working environment. Bank
     also consistently strives for a target of zero accidents.
     No job roles pose a high health risk, and no workplace
     accidents were reported in 2023.




                        Initiatives in managing work
                        accidents risk include:
                        » Conducting annual Occupational Health and Safety (OHS) training, facilitated
                             by building managers;
                        » Conducting annual training and information sharing on evacuation multi-
                             stories buildings;
                        » Basic training on the use of fire extinguisher;
                        » Victim rescue training participated by building security personnel.
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                                                                                                                                                                                                                           PT Bank CIMB Niaga Tbk      57




Bank provides health facilities for both permanent and contract employees, including medical check-ups, general
health insurance, as well as coverage under the national health insurance program (BPJS Kesehatan). For permanent
employees, Bank also offers general health insurance, eyewear and dental care facilities. Other facilities supporting
employee well-being include a health clinic, lactation rooms at the head offices, prayer facilities, designated employee
parking, accessible restrooms, and other amenities.




We and Green Office
Greenhouse Gas (GHG) Emissions Footprint                                                                                                                                                                      [POJK51-F.7; F.12]



Bank is committed to achieve net zero GHG emissions for Scope 1 and 2 in its operations by 2030 and net zero GHG
emissions to an overall net zero (Scopes 1, 2, and 3, including emission from financing portfolio) or a net zero emission
organization by 2050.




                              Indonesia Carbon Exchange
                              The Indonesian Carbon Exchange (IDXCarbon)
                              was officially launched in September 2023. Bank
                              purchased carbon units to achieve GHG emissions
                              reduction targets and fulfill its NZE commitment
                              by 2050. Bank is recognized as the first buyer in
                              the inaugural carbon trading, and acquired 7,000
                              carbon units or 7,000 tonnes CO2e, which will
                              positively contributes to the NZE achievement
                              strategy.




  h
                                                                                                                                                                       Renewable Energy Certificate (REC)
                                                                                                                                                                       Bank has a climate commitment as well as striving towards
                                                  TIGR Registry Certificate of Retireme
                                                                                        nt                                                                             the achievement of its net-zero GHG emissions target,
                                                                                     hereby certifies that     the following Renewable Energy Certificates
                                             and administrator of the TIGR Registry,
      APX, Inc., in its capacity as operator
      (“RECs”) have been retired in the TIGR
                                                Registry on behalf of:

                                                               PT Bank CIMB Niaga, Tbk                                                                                 particularly in Scope 2 GHG emissions. One of the strategies
                                                               Total RECs Retired: 7453
      Retirement Reason Details: Meet
                                            Carbon Neutrality Goals                                                                                                    to meet this target is by taking climate mitigation actions
      Retirement Date: 15-Feb-24
                                                                                                                                                     Quantity

                                                                                                                                                                       through the utilization of renewable energy sources by
                                                                            Project Type                       TIGRs Serial Numbers
            Sub-Account Name                     Project Name
                                                                          Hydroelectric Water -         TIGR-2348-ID-JB-01-2023-23134-25018             7453
                                                   PLTA Cirata                                                        to 32470
          PT Bank CIMB Niaga, Tbk                                          Dam/Impoundment



       Retiring   TIGRs Account Holder: PT PLN (Persero)
                                                                                    platform purpose built to meet RE100
                                                                                                                         best practices guidelines and CDP standards
                                                                                                                                                                       purchasing REC. In 2023, Bank purchased REC equivalent to
                                           Renewables (TIGR) Registry is an online                                           more than 15 years of experience in
       The Tradable Instrument for Global                                         developed and managed by APX, leveraging


                                                                                                                                                                       7,453 MWh, or reducing approximately 6,484 tonnes CO2e
                                             of renewable energy. The Registry is
       for procuring and reporting purchases
                                                     www.apx.com
       environmental markets. For more information:




                                                                                                                                                                       equivalent to 26,830 GJ of renewable energy.
Page 58
       2023 Sustainability Report
58     PT Bank CIMB Niaga Tbk




     Greenhouse Gases (GHG) and Energy                                                                                                   [POJK51-F.6; F.11] [GRI 302-1; 302-2; 302-3; 302-4; 305-1;

     305-2; 305-3; 305-4; 305-5; 305-7] [ACGS C.1.4; C.1.5]




     Achievement of Greenhouse Gas (GHG) Emission Reduction Targets for Scope 1 & 2 in 2023


                                                    2019                                                                                             2023


                                     Target                                                                                         22%

                          Realization                                                                                                                             24%


     Total Scope 1 and 2 GHG Emissions Equivalent to Other Gases


                                          tonnes CO2e                                                        tonnes CH4e                                tonnes N2Oe


                                                            39,091                                                                                                     148
                                   36,488 36,507                                                                          1,396
                                                                                                         1,303   1,304                                138      138




                                    2023         2022 2021                                              2023     2022 2021                           2023    2022 2021

         Note:
         Based on Intergovernmental Panel on Climate Change (IPCC) Assessment Report 5th Assessment Report




     Other Indirect Greenhouse Gas Emissions                                                                             Alliance (NZBA). These sectors include a) agriculture,

     (Scope 3)                                                                                                           b) coal, c) utilities and power generation d) oil & gas, e)

     CIMB Niaga calculated other indirect greenhouse gas                                                                 iron & steel, f) cement, g) aluminum, h) transportation &

     emissions (Scope 3), consisting of business travel,                                                                 motor vehicles, i) real estate & residential houses.

     activities related to fuel and energy (excluding Scope
     1 or Scope 2), as well as investment, including Bank’s
                                                                                                                         GHG Emissions Intensity (Scope 3) in the financing
     financing portfolio.                                                                                                portfolio (tonnes CO2e/Rp billions)

     The calculation of other indirect GHG emissions (Scope
     3), specifically from the financing activities undertaken                                                                24.37                 30.40                    36.84
     by Bank, follows the methods and standards set by The
     Partnership for Carbon Accounting Financials (PCAF).                                                                         2022                   2021                    2020
     This calculation encompasses nine sectors with high
     carbon intensity, as referenced by the Net-Zero Banking
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                                                                                                                            PT Bank CIMB Niaga Tbk          59




GHG Emission Amount and Intensity [POJK51-F.11] [GRI 305-1; 305-2; 305-3; 305-4; 305-5]

  No                     Description                                  Unit                     2023                2022                 2021

 1.       Scope 1 GHG Emissions

 1.1.     Transportation – Diesel                                                                    111.84            109.64                 78.85

 1.2.     Transportation – Gasoline                                                               1.451.77              1,117.14          4,052.52
                                                                  tonnes CO2e
 1.3.     Genset – Diesel                                                                           85.35                78.29                67.08

 1.4.     Genset – Gasoline                                                                        132.06               132.74                112.38

 2.       Scope 2 GHG Emissions

 2.1.     PLN Electricity                                         tonnes CO2e                   34,707.44          35,068.76              34,780.21

 3.       Scope 3 GHG Emissions

 3.1.     Business    Travel      (Land      and     Air                                          1,476.46             1,017.35              634.98
          Transportation)

 3.2.     Bumi CIMB Niaga Gunung Geulis Learning                  tonnes CO2e                       459.12              219.95               178.28
          Center

 3.3.     Investment – Financing portfolio                                                                -      3,178,428.65        3,269,285.14

 4.       Climate Change Mitigation Initiatives

 4.1.     Renewable Energy Certificate (REC)                      tonnes CO2e                   (6,484.11)                     -                        -

 5.       Total GHG Emissions

 5.1.     Scope 1                                                                                  1,781.01            1,437.81            4,310.83

 5.2.     Scope 2                                                 tonnes CO2e                   34,707.44          35,068.76              34,780.21

 5.3.     Scope 1 + Scope 2                                                                    36,488.45           36,506.57             39,091.03

 6.       Total GHG Emissions with Climate Change Mitigation Initiatives

 6.1.     (Scope 1 + Scope 2) - REC                              tonnes CO2 e                  30,004.34                       -                        -

 7.       Operating Income

 7.1.     Operating Income                                         Rp billions                  18,785.00           18,866.00            17,568.00

 8.       GHG Emissions Intensity

 8.1.     Scope 1 + 2                                                                                 1.94                 1.93                 2.23
                                                           tonnes CO2e/Rp billions
 8.2.     (Scope 1 + Scope 2) - REC                                                                   1.60                     -                        -

Note:
The GHG emissions data is collected from almost all CIMB Niaga offices in Indonesia.
The electricity emission factor uses a modified version of the method developed by the Ministry of Energy and Mineral Resources (2019) based on
the location-based method. The emission conversion factor for fuel oil uses a combination of various methods, including those from the Ministry of
Environment (2012), IPCC 5th Assessment Report, and IPCC Guidelines for National Greenhouse Gas Inventories (2006). The conversion factor values
for mobile sources are 27.2 x 10-4 for solar and 24.5 x 10-4 for gasoline, while for stationary sources are 26.9 x 10-4 for solar and 24.1 x 10-4 for
gasoline. The Scope 3 GHG Emissions calculation uses the Emission Factors for Greenhouse Gas Inventories (Environmental Protection Agency, 2023)
for business travel emissions and the The Partnership for Carbon Accounting Financials (PCAF, 2022) standard method. Figures in parentheses `( )’
indicate a decrease.
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       2023 Sustainability Report
60     PT Bank CIMB Niaga Tbk




     Comparison of GHG Emissions with the Previous Year [POJK51-F.11] [GRI 305-1; 305-2; 305-3; 305-4; 305-5]

       No                                  Comparison                                2023 vs 2022           2022 vs 2021         2021 vs 2020
      1.       Business as usual (BAU) scenario

      1.1.     Total GHG emissions (Scope 1 and 2) stated in

               a.   tonnes CO2e                                                                   (18.12)       (2,584.46)            3,280.04

               b. %                                                                               (0.05)                (6,61)              9,16

      1.2.     GHG Emission Intensity is stated in

               a.   tonnes CO2e/Rp billions                                                         0.01               (0.29)               0.04

               b. %                                                                                 0.38               (13.04)              1.64

      2.       Climate change mitigation initiatives scenario

      2.1.     Total GHG emissions (Scope 1 and 2) stated in

               a.   tonnes CO2e                                                             (6,502.23)          (2,584.46)            3,280.04

               b. %                                                                               (17.81)               (6.61)              9.16

      2.2.     GHG Emission Intensity (Scope 1 and 2) – REC stated
               in

               a.   tonnes CO2e/Rp billions                                                       (0.34)               (0.29)               0.04

               b. %                                                                               (17.46)              (13.04)              1.64
     Notes:
     Numbers in brackets ‘( )’ indicate a decrease.




     GHG Emissions from Financing Portfolio

                         Description                             Unit                   2022                  2021                  2020
      Attributed GHG Emissions                           million tonnes CO2e               3.18                 3.27                 3.67

      Based on Sector*

      Agriculture                                                                           30                    8                    14

      Coal                                                                                   2                    9                    23

      Utilities and power generation                                                        21                    11                    8

      Oil and Gas                                                                            7                    2                   0**

      Iron and Steel                                              %                          6                  0**                     1

      Cement                                                                                23                   62                    47

      Aluminum                                                                                1                    -                  0**

      Transportation                                                                         5                    4                     5

      Real estate                                                                            5                    3                     2

      Based on Asset Classes

      Business Loans & Unlisted Equity                                                      90                   95                   96

                                                                                                                                        -
      Listed Equity & Corporate Bonds                                                        3                     -

                                                                  %
      Commercial Real Estate                                                                  1                    -                    -

      Mortgage                                                                               3                    3                     2

      Motor Vehicle Loans                                                                    3                    2                     2

     *Based on the Net-Zero Banking Alliance (NZBA) sectors leveraging PCAF method. ** Indicated <0.5%
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Energy by Source, Total Use, and Intensity of Energy Used [POJK51-F.6] [GRI 302-1; 302-2; 302-3; 302-4]

  No                                Uraian                                  Satuan               2023                 2022                  2021
   1.     Banking Support Activities

   1.1.   PLN Electricity                                                                        141,135.70          142.574,77           141,595.92

  1.2.    Diesel Genset                                                         GJ                 1,142.97            1.048,34               898.22

  1.3.    Gasoline Genset                                                                         1,808.33              1.817,73             1,538.84

   2.     Transportation Support Activities

  2.1.    Diesel                                                                                  1,479.80             1,450.70              1,043.33
                                                                                GJ
  2.2.    Gasoline                                                                               19,512.90            15,015.24           54,469.05

   3.     Total Energy Use

  3.1.    Energy Use*                                                           GJ             165,079.70           161,906.78           199,545.36

   4      Operating Income

   4.1    Operating Income                                                Rp millions            18,785.00           18,866.00             17,568.00

   5      Energy Use Intensity

   5.1    Energy Use Intensity                                               GJ/Rp                     8.79                8.58                   11.36
                                                                            millions

Note:
Energy consumption calculation covers all offices. The electricity and fuel oil energy sources are calculated based on payment invoices managed by
the SPAPM Unit; The conversion factor for electricity energy from KWh to GJ is 36 x 10-4; The conversion factor for fuel energy from L to GJ is 33 x 10-3
for gasoline and 36 x 10-3 for diesel; The method used in the conversion follows the Ministry of Environment (2012).
*Including 16% renewable energy (RE).




Energy Comparison with the Previous Year [POJK51-F.6] [GRI 302-1; 302-2; 302-3]

  No                                    Comprison                                      2023 vs 2022           2022 vs 2021           2021 vs 2020
    1     Total of Energy Used expressed in

          a.    GJ                                                                               3,172.92          (37,638.58)               42,746.62

          b.    %                                                                                     1.96               (18.86)                   27.26

   2      Energy Use Intensity expressed in

          a.    GJ/Rp billions                                                                        0.21                (2.78)                     1.77

          b.    %                                                                                    2.40               (24.44)                    18.50
Notes:
Numbers written in brackets ‘( )’ indicate decrease.
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     Waste Management                                      [POJK51-F.13; F.14; F15] [GRI 306-1; 306-3; 306-4]



     Bank generates waste from operational activities, which                         Niaga Head Office, comprising 78% organic waste
     includes solid electronic waste (e-waste), effluent,                            and 22% inorganic waste. Bank identified that 3% of
     and paper. However, there is yet to be any significant                          the total waste generated consists of paper. When
     environmental impact. In managing e-waste and                                   compared to the waste disposed of in the landfill, the
     effluent, Bank collaborates with third parties, while                           waste sorting initiative at Graha CIMB Niaga Head Office
     some branch offices sort and send the solid waste to                            has the potential to avoid more than 17 tonnes of CO2e
     waste banks. Graha CIMB Niaga Head Office has also                              GHG emissions. If extrapolation is carried out over the
     implemented waste segregation initiatives integrated                            entire operation of the Bank, the avoidance potential will
     with the ‘Zero Waste to Landfill’ concept, ensuring no                          reach more than 194 tonnes CO2e. The Bank’s operational
     waste is disposed to the landfills. In 2023, a total of                         activities do not generate hazardous and toxic waste
     30.53 tonnes of waste was generated by Graha CIMB                               (B3) or cause any significant spills.




     Water Management and Usage                                                         [POJK51-F.8] [GRI 303-1; 303-5]



     Bank manages its water usage responsibility. The
                                                                                                  GHG Emissions from Water Use
     water is sourced from public water supply (PAM) as a
                                                                                                        (tonnes of CO2e)
     shared resource for operational activities, including
     cleaning, sanitation, and ablution. Water used for
     ablution is repurposed for various purposes, such                                  21.70                   19.66             43.49
     as to flush the toilet and maintain plants around
     the buildling. Additionally, water usage is regulated
                                                                                             2023                  2022                  2021
     through a drainage system in compliant with the
     building management’s wastewater management
     system.



        Water Management            PAM Water Consumption                           Operating Income                      Water Use Intensity
                                            (m3)                                      (Rp billions)                        (m3 / Rp billions)

                                                          245,720
                                                                                    18,785   18,866                                       13.99
                                                                                                      17,568




                                      122,622
                                                111,053                                                                    6.53   5.89




                                      2023      2022 2021                           2023     2022 2021                    2023    2022 2021
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                                                                                     Paper Saving
                                                                                     [POJK51-F.5]



                                                                                      Bank leverages digital technology through digital
                                                                                      banking and databases to minimize paper usage.
                                                                                      In 2023, over 2.7           million e-statements issued,
                                                                                      signifying the conversion around 13 tonnes of paper
                                                                                      into a paperless format. Through the reduction of
                                                                                      paper usage, Bank calculates the potential avoided
                                                                                      GHG emissions, approximately 9.8 tonnes of CO2
                                                                                      equivalent.




Several Reduction Initiatives include:
» Transfer of documentation archives and report submission from hardcopy to digital format
» Reusing used paper for photocopying draft letters or internal memos using both sides of the paper
» Optimizing multi-functional printers for scanning and facsimiles, thereby reducing document printing
» Optimizing the use of e-channels and mobile banking for customers
» Replacing bank statements into e-statements
» Formless transactions to replace transaction form/slips with validation sites
» Bank ensures that paper use is derived from responsible sources




Paper Use Intensity

                  Description                                 Unit                    2023                      2022                  2021

                                                            Reams                       14,160                   14,467                13,433
 Volume of Paper Used
                                                               Kg                     35,400                    36,168               33,608

 Paper Procument Costs                                    Rp millions                 486.85                    410.83                419.22

 Operating Income                                         Rp billions                  18,785                   18,866                 17,568

 Paper Use Intensity                                    Kg/Rp billions                    1.88                     1.92                   1.91

Note:
Paper use calculation includes activities in the head office. The volume of one ream of paper is equivalent to 2.5 kg.
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       2023 Sustainability Report
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     We Together with Business Partners
     [GRI 2-6; 308-1; 308-2; 414-1; 414-2] [SUSBA 1.2.1.10; 1.2.1.11] [ACGS C.4.2; C.4.3]



     Bank engages local partners and vendors with
     registered identity and residency in Indonesia
     within its supply chain. The policy of partnering
     with local vendors is outlined in Procurement of
     Goods and Services Policy No. 03.01.P.01. In 2023,
     94% of local partners and vendors were engaged
     for service and procurement needs.


     Bank conducts an evaluation through Sustainability
     Due Diligence (SDD) on partners and vendors in
     the procurement process. The evaluation includes
     environmental management aspects and social
     aspects such as workplace safety, adherence
     to human rights and responsibilities aligned
     with the United Nations Guiding Principle (UNGP), and                                  sustainability aspects into the vendor selection criteria,
     community empowerment. Bank also formulated                                            ensuring that all new suppliers (100%) are assessed
     the Vendor Code of Conduct, regulating responsible                                     with environmental and social criteria. Sustainability
     business behavior, human rights, and environmental                                     aspects under considerations include commitments to
     management for partners and vendors. This policy has                                   net zero GHG emissions, disclosure of Scope 1 and 2
     been communicated to all (100%) partners and vendors.                                  GHG emissions, any planning or ownership of resource
                                                                                            efficiency initiatives, the availability of human rights
     The procurement process falls under the responsibility                                 policies, human rights due diligence, whistleblowing or
     of the Strategic Procurement & Admin Property                                          grievance mechanisms, to promote diversity, equality,
     Management (SPAPM) Unit, with support from the                                         and inclusion. The assessment of these sustainability
     Legal, Finance, Operational Risk Management, and other                                 aspects carries a weight of 6% in the overall evaluation
     relevant units. Since July 2023, Bank has integrated                                   process.




                                    50                                                                                          119
        New vendors have been evaluated                                                                                   Vendors have
        using the SDD, with the result that                                                                            participated in the
       no new vendors have environmental                                                                                 socialization of
                 or social issues                                                                                    sustainability practices
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02
     Pillar
     Sustainable
     Business
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     Responsible Banking                                          [POJK51-F.17; F.27; F-28] [GRI 2-27; 416-1; 416-2; 417-1; 417-2; 417-3; FS15]




     CIMB Niaga is committed to provide equality towards its products and/or services in accordance with the Standard
     Guidelines for Summary of Information of Products and Services in the Financial Services Sector published by the
     Financial Services Authority (OJK). Bank also adheres to New Products and Activities Policy No. B.04 to ensure that all
     (100%) products and activities underwent a post-implementation review (PIR) phase, in alignment with the applicable
     laws and regulations, including consumer protection regulations. This review process is conducted by the responsible
     work unit to assess product safety for customers within 12 months prior to product launching. Bank ensures that
     information conveyed to customers is reliable, including details regarding product features, costs, benefits, and
     inherent risks. Additionally, throughout 2023, there have been no incidents of non-compliance with regulations related
     to product and service’s information and labelling, as well as marketing communication.




     Customer Data Security and Privacy Protection                                                                     [POJK51-F.29] [GRI 206-1;

     418-1] [FN-CB-230a.1; FN-CB-230a.2; FN-CB-510.a.1]




     The      rapid       advancement
     of       technology              poses
     an     escalating          risk       of
     cyberattacks         and        threats
     through       online       channels,
     particularly        for        financial
     institutions.      As     the       Bank
     recognizing        this    risk,     the
     Bank consistently strives to
     enhance control over data
     security and management,
     reinforcing                    systems,
     including      aspects         of    risk
     control related to privacy and
     data quality.


     Bank’s commitment and efforts to safeguard customer data are evident through comprehensive control implementation
     – from data and information security governance to monitoring processes within the digital infrastructure, transactions,
     and customer data through the Cyber Security Operation Unit and the Data Protection Office under the Directorate of
     Operations and Information Technology. Beyond these measures, Bank proactively educates employees, customers,
     and partners to raise awareness about data security. According to the complaint reports received during 2023, no
     financial products or services were recalled/removed from the market. Furthermore, there have been no complaints
     or violations related to business competition, or data loss due to data theft (cybercrime). However, there were two
     complaints regarding customer security and privacy.
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Sustainable Finance Product/Service/Program Innovation
and Development                       [POJK51-F.26] [GRI FS7; FS14] [SUSBA 1.5.1.2]




Each year, Bank engages in the development and innovation of sustainable financial products/programs in alignment
with the Bank’s sustainable finance framework, known as Green, Social, Sustainable Impact Products and Services
(GSSIPS).




                            Process Improvement                          Climate Solution                   Energy

                            - Circular Economy                       -     Green Building                   -   Renewable & Clean
                            - Resource Efficiency                    -     Carbon Capture & Storage             Energy, and Energy
                            - Green Manufacturing                    -     Climate Adaptation                   Efficiency
                            - Pollution Control & Prevention         -     Sustainable Forest Management    -   Energy Storage
                                                                     -     Environmental Conservation &
                                                                           Restoration


   GREEN




                            Connectivity                                 Sustainable Sectors                Sustainable Finance

                            - Transportation & Connectivity          -     Sustainable Supply Chains        -   Sustainability-Linked
                            - Grid Interconection                    -     R&D in Sustainable Development       Financing/Bonds
SUSTAINABLE                 - Digital Technology,                    -     Sustainable Agriculture & Food   -   Transition Financing/
                            - E-Commerce, Internet &                       Innovations                          Bonds
                              Communications                         -     Blue Economy




   SOCIAL
                            Access to Basic Needs                        Responsible Business               Inclusion & Wellbeing

                            - Affordable Housing                     -     Small & Medium Sized             -   Financial Inclusion
                            - Free/Subsidized Educational,                 Enterprises (SMEs)               -   Microfinancing
                              Technical and Vocational Services      -     Sharing Economy
                            - Free/Subsidised Educational            -     Social Economy
                              Service
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     OCTO Card Digital Credit Card & Cardless Withdrawal/Deposit Feature on OCTO Mobile
     Integrated in the OCTO Mobile application, customer            is also actively promoting cardless cash deposit and
     may leverage the OCTO Card Digital Credit Card/Digital         withdrawal features via OCTO Mobile. This feature is in
     Octo Card Syariah Card feature without using a physical        line with the Central Bank Indonesia’s vision to facilitate
     card. Customers may enjoy the convenience of digital           easier financial transactions, without using an ATM/debit
     transactions – from payment transactions using the             card. In 2023, more than 4.5 million cardless deposit
     QRIS Scan feature, e-Commerce shopping, checking               and cash withdrawal transactions carried out by loyal
     the bank statements, to convert transactions into              OCTO Mobile users.
     fixed installments of 3, 6, 12 and 24 months. The Bank




     Convenience in Opening a Foreign Currency Account & Foreign Currency Transactions
     with CIMB Niaga Debit Card
     One of the main features in 2023 is the foreign currency (forex) account opening for existing users. Opening foreign
     account is doable in independent and paperless steps, only from the OCTO Mobile application. Users may leverage
     the foreign exchange account as their source of funds for debit card transactions. For instance, user may open a
     Singapore Dollar account then simply use their debit card in Singapore – withdrawing their account balance while
     avoiding the currency exchange fees & rate.




     Giro Kartini
     The Bank has launched ‘Giro Kartini’ account for
     Emerging Business Banking (EBB) customers, to
     support the national Sustainable Development
     Goals (SDGs) agenda, i.e. SDG 5 (gender equality
     and women’s empowerment). This gender-
     responsive program share the advantages
     for female entrepreneurs in managing their
     savings in more effective ways, to further
     support their business development. Giro
     Kartini is also an environmentally friendly and
     paperless product, fitted with e-statement
     features. Giro Kartini also offers a range of
     interesting features such as account number
     selection, competitive account fees and rates, and transaction fee refunds pursuant to the ongoing program. This
     account eligible for both individual female customers and non-individual customers led by women. Furthermore,
     the Bank make donation for each Giro Kartini account opening to support traditional weaving training for women
     with disabilities in Sulawesi. As of 2023, Bank recorded a portfolio of Rp86.30 billion of Giro Kartini, spreading across
     various regions in Indonesia.
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Sustainability-Linked Loan/Financing (SLL/F)                                       One House One Tree
and Sustainable Finance (SF) Programs                                              Bank shares an opportunity for
Bank continues its innovation in the SLL/F and SF programs by                      every     CIMB        Niaga      mortgage
offering incentives for customers who achieved pre-agreed                          customer to contribute for mother
sustainability performance targets. The SF program is aimed                        earth’s   sustainability      through          a
to finance Bank’s customers engaged in business activities                         tree planting initiative. In 2023,
aligned with KKUB. Bank successfully recorded SLL/F syndication                    this    program       recorded     positive
transactions totaling Rp1.03 trillion for debtor in the cement and                 contribution     of     4,400     bamboo
palm oil plantation sectors who aim to achieve sustainability                      plants (Bambusa sp.), 1,000 coffee
performance targets of GHG emissions reduction. Furthermore,                       plants (Coffea sp.), and 550 nutmeg
Bank has provided green financing to five customers through the                    plants (Myristica fragrans).
SF program, totaling Rp2.74 trillion.




                                                             Green Mortgage
                                                             Green Mortgage is a mortgage (KPR) facility for green-
                                                             certified residences, for instance by Green Building
                                                             Council Indonesia (GBCI) and/or Excellence in Design
                                                             for Greater Efficiencies (EDGE). By the end of 2023,
                                                             financing for green certified residences recorded
                                                             transaction value of greater than Rp273 billion.




Green Auto or                                  Solar Panel Financing
Environmentally-Friendly                       x Housing Loan (KPR)
Vehicle Financing                              Bank provides solar panels
Green Auto Loan is a financing                 financing using credit cards
facility   accustomed   to   electric-         and EDC in registered green
battery motorized vehicles as well             merchants.     These        green
as hybrid vehicles provided by our             merchants     are     the   solar
subsidiary    CIMB   Niaga   Finance           panel and non-solar panel
(CNAF). In 2023, CNAF recorded a               merchants. By the end of
total of 1,130 electric and hybrid             2023, Bank facilitated more
vehicles financing, with transactions          than Rp6 billion transactions
value exceeding Rp359 billion.                 for customers via green merchant partners.
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     Strengthening Digital Banking to Enhance Consumer and
     Emerging Business Banking (EBB) Segment Services
     CIMB Niaga offers several digital banking services, including OCTO Mobile, OCTO Clicks, BizChannel@CIMB, and other
     e-channel services. Throughout 2023, one of our initiatives including the enhancement of OCTO Card digital credit card
     features within the OCTO Mobile app. Bank recorded nearly 470 million transactions in digital platform and branchless
     banking. Referring to the digital banking transaction volume in 2023, there is a potential GHG emissions avoidance of
     approximately 120 thousand tonnes CO2e. Additionally, to enhance the transactions and customer loyalty within the EBB
     segment, OCTO Clicks introduced merchant report as well as mass transfer feature to support EBB customers’ daily
     transactions.




     Total Digital Platform Transactions (millions transactions)




                                                      2023                    2022                    2021



         OCTO Mobile                                   217.00                 175.60                   112.31




         OCTO Clicks                                    51.05                   47.44                  20.87




         OCTO Pay                                       16.64                   19.30                  22.60




         BizChannel@CIMB                               90.97                   96.57                   64.35




         ATM, MDM, and CRM                             94.03                   99.84                  104.87
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Financial
Inclusion through
Micro, Small,
and Medium
Enterprises
(MSME) Financing
[POJK51-F.23] [GRI 203-2] [ACGS C.4.1]




CIMB Niaga supports MSME sector business growth                   a. Collaboration with BPR
by offering three financing products: working capital                BPR directed the Bank’s funds to its fixed-income
financing, investment financing, and supply chain                    SME customers. From funding perspective, Bank
financing. MSME financing is channeled through two                   provides digital cash management services to
segments, namely:                                                    support BPR activities. In 2023, Bank recorded
1.   Emerging       Business       Banking   (EBB):   Financing      139 debtors with total financing of Rp5.4
     conducted through direct approach on small and                  billion. Approximately 36% of the 139 debtors
     medium-sized enterprises (SMEs) across Indonesia.               (or equivalent to Rp2.2 billion) are women
2. Micro Linkage is a program providing indirect                     entrepreneurs.
     financing     through       linkage   schemes,   including   b. Collaboration    with   Palm    Oil’s    Cooperatives
     executing, channeling, and joint financing. In 2023,            (KUD) which leverages the Nucleus-Plasma (Inti
     the Micro Linkage executing program focused on                  Plasma) Scheme
     collaborations with Rural Development Bank (BPR)                Commercial Banking collaborates with KUD that
     and Cooperatives (KUD) that leveraging palm oil                 are fostered by large and experienced palm oil
     plantation’s core-plasma scheme. Currently the Bank             companies. These cooperatives play a central role
     has around 170 linkage partners across Indonesia,               as the ‘nucleus (inti)’ of the scheme, i.e. utilizing
     with majority of the partners utilizing the executing           funds from Bank to support smallholders in
     scheme. The program’s schemes explained as                      developing their plantations.
     follows:




                                                 As of 31 December 2023, CIMB Niaga recorded a total
                                                 of Rp22.8 trillion in MSME financing or almost 11% of
                                                          the Bank’s total financing portfolio.
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     Sustainable Finance

                                           Sustainable Finance Products/Programs
                                                                     (Rp billions)




                                       1,033.40                                             359.57
                                       Sustainability-Linked                                Green Auto or
                                       Loan/Financing (SLL/F)                               Environmentally
                                       Program                                              Friendly Vehicles
                                                                                            Financing


                                                                                            2,745.50
                                            273.10                                          Sustainable Finance
                                            Green Mortgage                                  (SF) Program




             *Financing by subsidiary, PT CIMB Niaga Auto Finance (CNAF)




     Sustainable Finance Implementation                                                      [GRI FS9] [SUSBA 1.3.1.3]



     Bank actively participating to execute OJK programs,                     Indonesia Green Taxonomy
     including the support towards Sustainable Finance                        In 2022, OJK issued the Indonesian Green Taxonomy
     Roadmap Phase II (2021-2025). Bank integrating                           (THI) to assist financial institutions in classifying
     sustainable finance to all its financing segments.                       green activities within their financial products and
                                                                              services portfolio, as well as to monitor the periodic
     Bank own Sector Guidance which refer to the                              implementation        of        credit/financing/investment
     Sustainable Finance Policy. Bank conducts Sustainability                 disbursement to the green sector and prevent potential
     Due Diligence (SDD) and Enhanced Sustainability                          misleading green activities reporting (greenwashing). In
     Due Diligence (ESDD) for its debtors. The Internal                       2023, THI reporting was conducted in quarterly basis.
     Audit Unit conducts a coverage audit annually using a                    The identification results for December 2023 indicate
     comprehensive risk-based assessment methodology                          that 18% of the top 450 debtors fall into the green or
     as well as an internal control framework that refers                     yellow category, equivalent to Rp31.78 trillion based on
     to the international standards of the Committee of the                   the outstanding balances.
     Sponsoring Organization of the Treadway Commission
     (COSO) – Internal Control Integrated Framework.
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KKUB or Environmental and Social Sector Financing                                                                                [GRI FS11]




                              Description                                       Unit             2023              2022                2021

 Total Products that Meet the KKUB Criteria

 a.    Sustainability -Linked Loan/Financing Program (SLL/F)                                     1,033,450          686,024                          -

 b.    Sustainable Finance Program (SF)                                                         2.745,466         2,282,269              332,331
                                                                            Rp millions
 c.    Green Auto or Environmentally Friendly Vehicles Financing                                   359,571           83,458              28,053

 d.    Green Mortgage                                                                             273,095            141,549              85,316

 Total Productive KKUB Assets

 a     Total KKUB Financing                                                 Rp millions        55,451,296         51,444,423         45,068,614

 b.    Total KKUB Non Financing – Green Sukuk Investment**                  Rp millions             32,987                   -                       -

                                                                           US$ millions                    -                 -                 75

 c.    Total KKUB Non Financing – Green Bond Investment **                  Rp millions           548,007             32,990                         -

 Percentage of KKUB Financing to Total Loans                                     %                       26               26                   25


*Financing by subsidiary, PT CIMB Niaga Auto Finance (CNAF);
** The Government of Indonesia issued the Green Sukuk/Bond globally to fund climate change mitigation and adaptation projects.
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     Composition and Quality of KKUB Loans [GRI FS8]

                                                                                         Non-MSME           MSME              Total        NPL
      No                       Sustainable Business Activities Category (KKUB)
                                                                                        (Rp trillions)   (Rp trillions)   (Rp trillions)   (%)*


      1.                   Renewable Energy                                                          -                -                -   0.00%



      2.                   Energy Efficiency                                                     0.46                 -            0.46    0.00%



      3.                   Pollution Prevention and Control                                          -                -                -   0,00%


                           Management of Natural Resources and Sustainable
      4.                                                                                         5.80             0.72             6.52    0.01%
                           Land Use


      5.                   Conservation of Land and Water Biodiversity                               -                -                -   0.00%



      6.                   Environmentally Friendly Transportation                               2.83                 -            2.83    0.00%


      7.                   Sustainable Water and Waste Water Management                           0.19                -             0.19   0.00%


      8.                   Climate Change Adaptation                                                 -                -                -   0.00%

                           Products that Help Conserve Resources and
      9.                                                                                         6.35              0.13            6.48    0.00%
                           Contribute to Less Pollution

                           Environmentally Friendly Buildings that Meet
                           National, Regional, or International Recognized
      10.                                                                                         1.06                -             1.06   0.08%
                           Standards/Certification


                           Other Environmentally Friendly Business and/or
      11.                                                                                       15.96                 -           15.96    0.02%
                           Other Activities


      12.                  MSME Activities                                                           -           21.95            21.95    5.64%


      Total                                                                                     32.65            22.80            55.45    2.24%

     *The NPL percentage (gross) is calculated based on the total portfolio of each KKUB.



     Products/Programs that Support Sustainable Finance

      No           Product/Program Name                 Unit              Total
                                                                                                      In 2023, the Bank support
           1.   iB Mapan Savings with Waqf                               203.48
                                                                                                     inclusive financing towards
       2.       Credit card financing via Green                                                      the low-income individuals
                Merchant
                                                     Rp billions
                                                                                                        (PBR) according to the
                 a. Solar panel financing                                   0.63
                                                                                                    definition of Central Bank of
                 b. Non-solar panel financing                               5.99                    Indonesia (BI) for affordable
       3.       Giro Kartini                                               86.30                          housing, affordable
       4.       One House One Tree                    Account              9,546                          personal loan, and
                                                                                                     affordable auto amounting
                                                                                                           to Rp1.61 trillion.
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Challenges, Developments, and
Impacts of Sustainable Finance
Implementation                    [POJK51-E.5]



One of the challenges in implementing sustainable finance
in 2023 was the limited knowledge and human resources
competency. Therefore, the Bank is actively collaborating with
various stakeholders to provide more education on sustainable
finance, Indonesian Green Taxonomy (THI), transition financing,
and many more. Bank also encourages its customers to engage
in environmentally friendly business practices to enhance their
efficiency, productivity, and sustainability. In addition, the Bank
also starting to assess its climate risks through methodologies
of Climate Scenario Analysis (CSA) and/or Climate Risk Stress Test (CRST). Going forward, the integration of the
International Financial Reporting Standards Climate-related Disclosure Framework (S2) issued by The International
Sustainability Standards Board (ISSB) and biodiversity aspects based on The Taskforce on Nature-related Financial
Disclosures (TNFD) are also rising as sustainability hot topics.




Financing High Sustainability Risk Sectors                                              [SUSBA 1.1.1.2; 1.6.2.6] [FN-CB-410a.2; FN-

CB-550a.2]




Throughout the financing disbursement process, Bank            potential customers in the corporate banking segment
consistently identifies potential negative impacts of          and several commercial banking segment are required
each existing or potential customer’s business activities      to conduct the SDD, while those with high ESG risks are
on the environment and society. Therefore, Bank conduct        required to carry out the ESDD process.
mapping on sectors that pose ESG high risks. Customers/


                                                                      Bank also own Sector Guidances outlining
                                                                      the mandatory minimum ESG performance
                                                                      requirements,      prohibited         activities,        and
                                                                      encouraged aspects for sustainable practices.
                                                                      The sector guidance covers the Agriculture,
                                                                      Forestry, Other Land Use and Land Use Change
                                                                      (AFOLULUC) sectors, which include palm oil,
                                                                      coal, oil and gas, forestry and natural rubber,
                                                                      construction services and infrastructure, mining
                                                                      and quarrying, as well as manufacturing. The
                                                                      Sector Guidance summary are accessible in the
                                                                      Bank’s website.
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        KKUB Financing for Land-based Sectors
        Bank finance land-based sectors such as AFOLULUC. As identified in the Bank’s financing portfolio, there are
        8 clients who obtained sustainability certifications, totaling Rp2,612 billion in financing.




                                                                                                       Total Financing
                 Sector                            Certification                   Total Clients
                                                                                                        (Rp trillions)



                                  Best Aquaculture Practice                               1                 260.56
                                  Aquaculture Stewardship Council
                                  Good Agriculture Practice Good Fish Hatchery
                                  Methods (CPIB) and Good Fish Farming
             Fishery              Methods (CBIB)




                                  Timber Legality Verification System (SVLK)             5                 2,315.78



            Forestry
                                  FSC COC & SVLK                                         2                   35.64
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KKUB Financing for Oil Palm Plantations                                        Financing based on ISPO, RSPO, and ISCC Certifications
                                                                               (as per 2023)
[POJK51-F.3] [GRI FS8] [SUSBA 1.2.1.4; 1.2.1.5; 1.5.1.3][ACGS C.1.4; C.1.5]

Bank encourages borrowers in palm oil plantations                                                               Total           Amount Financed
                                                                                     Certification
sector       to    adopt       sustainability          principles        and                                   Clients            (Rp trillions)
commitments, such as to obtain certifications of
                                                                                RSPO* and ISPO**                  15                        6.7
Indonesia Sustainable Palm Oil (ISPO), Roundtable
                                                                                RSPO*                              4                      0.03
on Sustainable Palm Oil (RSPO), and/or International
Sustainability and Carbon Certification (ISCC). In                              ISPO**                            27                       1.84

addition, Bank apply the No Deforestation, No Peat, No                          In the ISPO process**              5                      0.45
Exploitation (NDPE), Free, Prior and Informed Consent
                                                                                In the RSPO process*               4                      0.45
(FPIC), and High Conservation Value (HCV) and/or High
Carbon Stock (HCS), as well as various sustainability                           ISCC***                            5                      5.58

commitments. KKUB’s financing target for oil palm                              RSPO = Roundtable Sustainable Palm Oil; ISPO = Indonesia Sustainable
                                                                               Palm Oil; ISCC = International Sustainability and Carbon Certification; *As
plantations during 2023 has exceeded the initial                               per national interpretation of the RSPO Principles and Criteria (2018), oil
                                                                               palm plantations that have obtained an RSPO certificate have complied with
target, i.e. 17% (from target 5%).
                                                                               the No Peat principle within the principles of No Deforestation, No Peat,
                                                                               and No Exploitation; **ISPO is an oil palm plantation sustainability standard
                                                                               in Indonesia according to applicable laws and regulations; ***ISCC is one
                                                                               of the leading certification systems for sustainability and greenhouse gas
                                                                               emissions. In July 2011, ISCC recognized by the European Commission as
                                                                               one of the first certification schemes capable of demonstrating compliance
                                                                               with the EU’s Renewable Energy Directive (RED) requirements.

Sustainability Commitments of Oil Palm Clients

                                 Total                 Financing
     Commitment
                                Debtors               (Rp trillions)

 NDPE                               29                           13.31

 FPIC                               46                           8.58

 HCV and/or HCS                      19                          6.73

NDPE = No Deforestation, No Peat, No Exploitation, FPIC = Free, Prior
and Informed Consent; HCV = High Conservation Value; HCS = High
Carbon Stock




Thermal Coal Financing Phase-Out
Commitment by 2040 [SUSBA 1.2.1.3]
Bank is gradually reducing its financing for the coal sector and is having plan to entirely phasing out thermal coal
financing by 2040. In alignment with this effort, Bank has set an interim target of 50% reduction in thermal coal mining
financing from the 2021 baseline by 2030. This step is part of Bank’s commitment to support a just transition towards
low-carbon economy; cleaner and more environmentally friendly energy, in line with CIMB Group’s commitment
as a signatory of the United Nations Principles for Responsible Banking (UN PRB) and Collective Commitment on
Climate Action (CCCA). Furthermore, Bank is no longer financing the expansion of thermal coal mines as well as the
construction of coal-fired power plants (CFPP). Borrowers in the coal sector are also not allowed to use the Mountain
Top Removal (MTR) mining method.
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     Customer Satisfaction Level and
     Complaint Resolution                                             [POJK51-F.16; F.30] [GRI 2-25]




     Bank provides access to customers, the public, and other stakeholders to submit their reports should there are
     complaints regarding Bank’s products and services. Every complaint received will be a joint-responsibility among the
     relevant units.




                                                       Complaint Channels



                                    Direct visits to
                                    branch offices
                                                                                     Contact Center service:
                                                                                     14041 or +62 21 2997 8888 (overseas)


                              E-mail:
                 14041@cimbniaga.co.id                                                                 Website:
                                                             Complaint
                                                             Channels                                  www.cimbniaga.co.id




                               Preferred Assistance:
                                                                                    Business Banking Contact Center:
       1500 800 (only for CIMB Preferred customers)
                                                                                    14042 or +62 21 8065 5111 (overseas)

                                                       Whistleblowing System




     Throughout 2023, Bank did not receive any complaints regarding
     regulatory non-compliance. Bank also did not receive significant                             Net Promoter Score (NPS)
     complaints related to customers, including environmental concerns.
     For detailed information on the types of complaints and the resolution
     rates, please refer to the 2023 Annual Report.                                          2023            2022            2021


     Bank consistently strives to enhance customer experience by                            50%             50%          28%
     conducting an annual customer satisfaction survey. The survey
     focuses on product aspects, service channels, and service quality.                    Customer Complaint Resolution Rate



                                                                                             2023            2022            2021


                                                                                            99%             99%          98%
Page 79
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                      PT Bank CIMB Niaga Tbk      79




03
     Pillar
     Corporate Social
     Responsibility (CSR)
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     Corporate Social Responsibility
     (CSR) Pillar                             [POJK51-F.4; F.25] [GRI 413-1] [ACGS C.4.4]




                        CIMB Niaga has four Corporate Social Responsibility (CSR) pillars in
                      implementing CSR activities. These pillars reflect Bank’s commitment to
                              advance the Sustainable Development Goals (SDGs).



             CSR Pillar 1
                                                                                                              CSR Pillar 2:
             Education
             CSR focuses on increasing
                                                                                                              Community
             quality of access through                                                                        Health and Well
             financial literacy activities,                                                                   Being
             scholarship programs, and                                                                        CSR supports programs
             assistance for educational                                                                       to enhance community
             support facilities.                                                                              health and well-being.
                                                                   Four pillars of
                                                                  Corporate Social
                                                                   Responsibility
             CSR Pillar 4:
                                                                       (CSR)
             Climate and                                                                                      CSR Pillar 3:
             Environment                                                                                      Economic
             CSR supports environmental                                                                       Empowerment
             conservation programs
                                                                                                              CSR supports programs
             that provide added value to
                                                                                                              that increase community
             stakeholders.
                                                                                                              empowerment with the
                                                                                                              aim of improving the
                                                                                                              economy




                  Realization of CSR Fund (Rp millions) [POJK51-F.4]                  2023          2022      2021


                            Education                                                   8,440        8,077     8,329

                            Health & Community Well Being                               1,956       5,042     14,593

                            Economic Empowerment                                            8,131    5,187     3,743

                            Climate & Environment                                       6,169       4,028      1,482

                            Others                                                          250       1,912    4,218

                            Total                                                     24,946        24,246    32,365
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Employee Volunteer
Program (EVP)                                   [ACGS C.1.4; C.1.5]




Bank conducts an Employee Volunteer Program that
aligns with the four pillars of CSR. The program mandates
every permanent employee to engage in CSR activities
for a minimum of 3 hours per year, which is counted as
a Key Performance Indicator (KPI). As of 31 December
2023, Bank accumulated 50,884 voluntary working hours
by employees, averaging 5.1 hours per employee (170%
higher than the average target of 3 hours per employee).
Several Employee Volunteer Program activities include waste management, donations, teaching, and blood donation.


In 2023, the Bank conducted the A Better Climate anD Environment (ABCDE) Challenge, a program that invites
employees to participate in preserving the surrounding environment by collecting inorganic waste. The collected waste
was then delivered to waste banks, waste collectors, and environmental non-governmental organizations (NGOs)
nearest to the employees’ residences. At the end of the program, a total of 2,227 kg of waste was gathered, consisting
of paper waste (1,462 kg), plastic (416 kg), and used cooking oil (349 kg). This effort signifies Bank’s commitment in
implementing sustainability practices internally, aiming to minimize household waste towards final landfill.




          Pillar 1: Education                                         [SUSBA 1.6.2.10]




Scholarship Program
Bank is committed to realizing Indonesian next
generation’s dreams to access quality education                                  CIMB Scholarship Program in 2023
through a scholarship program. This initiative aims to
enhance the overall quality of education in Indonesia,                              50                         18
and to shape a successful youth generation.                                         University                 Universities in
                                                                                    Students                   Indonesia
Additionally,   Bank    provides     self-development
opportunities   to   scholarship   recipients     through
                                                                                    CIMB ASEAN Scholarship 2023
financial literacy activities, volunteering, sharing
inspirations, social media campaigns, and voluntary
activities focusing on health and the environment in                                             1
Kupang, East Nusa Tenggara (NTT) in November 2023.                                               Scholarship recipients
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     Savings and Investment Program                                             [GRI FS16] [FN-CB-240a.3; 240a.4]



     Every year, Bank conducts financial education and                   Inclusion (SNKI), which aims for a 90% increase in
     literacy programs through initiatives such as Ayo                   financial inclusion by 2024. Additionally, Bank aligns with
     Menabung dan Berbagi (AMDB), Tour de Bank (TDB),                    the Financial Services Authority (OJK) regulations, such
     and Be Smart Program in several locations in Indonesia,             as POJK No. 3 of 2023 concerning Improving Literacy and
     including the Bank’s operational areas. These programs              Financial Inclusion in the Financial Services Sector for
     signify Bank’s support for achieving the government’s               Consumers and the Community, as well as participating
     targets, as outlined in Presidential Regulation No. 114             in the Financial Inclusion Month (BIK) program and the
     of 2020 concerning the National Strategy for Financial              One Account One Student Program (KEJAR).



     Ayo Menabung dan Berbagi (AMDB)
     Bank recognizes that financial intelligence is one of the crucial asset for the
     younger generation to attain better economic livelihoods. This awareness is
     manifested in the commitment to organizing the AMDB Program, which has
     been running for 13 years, by consistently aligning the program according
     to government and regulatory guidelines. The program is designed for
     students in Junior High School (SMP), Senior High School (SMA), and
     Vocational High School (SMK), providing insights into banking and financial planning. In 2023, the AMDB program
     focused on introducing the benefits of saving, the financial services industry, and digital banking.




                            Number of                      Number of
                            Schools                        Students
                                                                                                         Participant
                                                                 7,250
                           80
                                    85
                                                         6,374
                                                                                                         Level of
                                                                                                         Understanding
                                                 4,737
                  47

                                                                                      37%
                                                                                      Result of the 2023 pre
                                                                                      and post-tests showed an
                2023     2022 2021               2023    2022 2021
                                                                                      increase in participants’
                                                                                      level of understanding of
                                Accumulation until 2023:                              the AMDB Program
                       582                         69,050
           Number of Schools                 Number of Students
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                                                                         Number of                       Number of
                                                                         Schools                         Students

                                                                                                       3,878

                                                                         66      66
                                                                                                                3,178
                                                                                               2,909


                                                                  37




                                                                 2023   2022 2021              2023    2022 2021

                                                                              Accumulation until 2023:

Tour de Bank (TDB)                                                      335                       18,223
TDB is a financial literacy initiative aimed                   Number of Schools           Number of Students
at introducing various banking tools and
functions to elementary school students. In
2023, leveraging technological advancements,                 Participant        28%
TDB activities were conducted both offline                     Level of         There was an increase in
and online. Educational content was delivered               Understanding       the level of understanding
through informative videos covering the world                                   of TDB 2023 Program
of banking and the benefits of saving.                                          participants in the post-
                                                                                test results compared to
                                                                                the pre-test.




Smart Ways to Achieve
Financial Freedom
(Financial Literacy for
Teachers)
Bank initiated a financial literacy webinar themed
“Smart Ways to Achieve Financial Freedom.”
The webinar was attended by 148 educators
representing schools involved in the AMDB and
TDB Programs. The webinar covered financial
management      methods     and       the   analysis   of
participants’ financial well-being.



Savings for Students
Through the AMDB and TDB Programs, Bank actively promotes special savings products for student in various regions
of Indonesia. This initiative is a testament to Bank’s support for the KEJAR Program (One Account One Student) initiated
by OJK. In 2023, there were 1,954 new savings accounts with donation of Rp195.4 million.
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                                                                                                  Beneficiaries
     Be Smart Program
     Be Smart program is designed to empower
     the millennial generation with knowledge                                2023                      2022                      2021
     about financial management, various types of
     investments and their risks, as well as digital
                                                                     Number of Students        Number of Students        Number of Students
     banking technology. This program is offered
     to CIMB Niaga scholarship recipients as a way
                                                                             87                         111                      63
                                                                     Total Training Sessions   Total Training Sessions   Total Training Sessions
     to enhance their personal development.
                                                                         2 times                   2 times                   2 times



                      Participant
                                                 42%                           29%
                        Level of
                     Understanding
                                                 for advance          &        for basic
                                                 28%
                                                 materials                     materials
                                                 There was an increase in the level of understanding of
                                                 Be Smart 2023 program participants in the post-test
                                                 results compared to the pre-test.




     Provision of Education Facilities
     Bank provides support for the provision of educational facilities, in form of 15 printers, and the provision of teaching
     staff from Bank employees at the Mini Banking Laboratory of the Vocational Program at the University of Indonesia
     (UI) and the Bourse Game Laboratory at the Master of Management Program at UI. Bank also runs the Sejuta Buku
     Program, distributing knowledge and educational books to 192 students in Cirebon, West Java and Palembang, South
     Sumatera. Additionally, Bank contributes educational facility support donations to schools participating in the AMDB
     and TDB Programs.



                                                                                                     Beneficiaries

     The Complete Intern Kampus Merdeka
     Bank     actively       participates   in   supporting   the             In 2023, Bank provided this opportunity to 177
     government’s          Kampus     Merdeka     program.    This            students from public and private universities
     program is designed to provide opportunities for                         across Indonesia, divided into 2 batches. These
     students to develop skills based on their talents                        students were involved in 54 cross-directorate
     and interests through direct working experience. In                      projects. Cumulatively as of 2023, Bank has
     addition to gaining work experience, students also                       provided opportunities to 420 students divided into
     participate in character-building, volunteering, and                     5 batches.
     team-building programs.
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                      Pillar 2: Health and Community
                      Well-Being                    [GRI 203-1] [SUSBA 1.6.2.10]




Peduli Gizi Anak
#CegahStunting
Bank, in collaboration with the United Nations
Children’s Fund (UNICEF), has initiated an early
detection and intervention program for tackling
malnutrition to prevent stunting, which was
officially launched on 20 November 2023, with
a cooperation period extending from 2023 to
2026. Bank also encourages active participation
from the community to make donations through
the CIMB Niaga Cares account. The funds
raised through the donation drive are aimed at
benefitting 1,000 malnourished children across
22 regencies/cities in East Nusa Tenggara (NTT).




                                                   FIRST
                                                   enhancing the capabilities of caregivers, integrated health post cadres,
                                                   and Early Childhood Education (PAUD) teachers for early detection of
                                                   undernutrition & malnutrition.



                                                   SECOND
                                                   Mid-Upper Arm Circumference (MUAC) tapes are provided to measure the
                                                   MUAC of toddlers for early detection at home, PAUD, and Integrated Health
                                                   Post (Posyandu).

       The early
    detection and
     intervention                                  THIRD
      program to                                   strengthening the capacity of health services for the treatment of
  prevent stunting                                 malnourished children according to nutritional medication protocols.
  involves five key
       activities
                                                   FOURTH
                                                   conducting parenting classes for caregivers/parents of PAUD children
                                                   related to prevention, early detection, and referral for children at risk of
                                                   wasting (malnutrition).




                                                   FIFTH
                                                   supporting the provision of nutritious local supplementary food for PAUD
                                                   children.
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                  Pillar 3: Economic Empowerment                                                                    [SUSBA 1.6.2.10]

                  [ACGS C.4.4]



     The CSR activities of Bank have yielded positive impacts on economic growth. This is evidenced by the growth of
     various products initiated by the beneficiaries. These products are introduced to the community through events
     organized by Bank.




     Community Link Program
     Bank     continues            to   provide   the
     best services for the Indonesian
     community through the Community
     Link         Program,                prioritizing
     environmental, economic, and social
     (EES) aspects. Bank actively engages
     the participation of customers and/
     or the community to contribute in
     addressing environmental, economic,
     and social issues in Indonesia. The
     Community Link Program is divided
     into three categories: #JadiPeduli,
     #JadiNyata, and #JadiBerkelanjutan.




              Community Link #JadiPeduli Program
              The Community Link #JadiPeduli program involves Bank employees actively participating in organizing
              social activities aligned with the four pillars of CIMB Niaga’s CSR. As of 2023, 52 branch offices and work
              units participated in the #JadiPeduli Program. The activities conducted encompass financial literacy,
              tree planting action, beach cleanup action, school renovation, and efforts to prevent and mitigate
              stunting, with a total of 3,818 beneficiaries.
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                                                         gram
           Community Link #JadiNyata Pro                                         k management’s aspiration to
                Com  mun  ity Link  #Ja  diNy ata program represents Ban
           The
                                                                                 ent to collaborate in addressing
                                             ge active community involvem
           have a program that encoura
                                                                                      3, Bank once again conducted
                                                 al (EES) issues in Indonesia. In 202
           environmental, economic, and soci
                                                                                         for the best ideas, namely:
                   diNy ata prog ram , atte nde d by  405 participants with 3 winners
           the #Ja




Amanda Prita (DitReveille)                   Irfan Nur Ikhsan (Tanigo)                   Betsy Yolanda (Nutrils)
South Tangerang, Banten                      Majelengka, West Java                       Kubu Raya, West Kalimantan


Focusing on the                              The conceptual idea is                      The conceptual idea revolves
reconstruction/processing of                 Zero Waste Agriculture for                  around the utilization of paper
plastic waste into furniture                 Talas Beneng, with a focus                  waste and activated charcoal
by involving communities in                  on utilizing every part of                  as nutrient hydrogel cellulose
every step of the business                   the Talas Beneng plant to                   through processing paper
process.                                     create economically valuable                and activated charcoal waste
                                             products while empowering                   into gel fertilizer or growing
                                             farming communities.                        media. This innovative
                                                                                         approach can last until
                                                                                         harvest time and has high
                                                                                         water retention capabilities,
                                                                                         proving highly beneficial for
                                                                                         agricultural land.
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       In 2023, Bank provided mentoring and development support to the three winners of the Community Link
       #JadiNyata Program in 2022, resulting in the following progress:



                                           Ananda Dzikman AZ (Conutcos) – Gowa, South Sulawesi
                                           Ananda Dzikmah successfully transformed coconut into various processed
                                           products, including serundeng, packaged coconut water beverages, coconut flour,
                                           and more, under the brand name Conutcos. Conutcos products are available on
                                           e-commerce platforms and social media such as Instagram. Through Bank’s
                                           support, there has been an increase in production capacity and the empowerment
                                           of the local community, specifically to woman.




                                             Khomsin (Arthup) – Blitar, East Java
                                             Khomsin empowers people with mental illness in Bacem Village by processing
                                             their artistic works such as drawings/paintings into artistic T-shirts under the
                                             brand Arthup. Additionally, Arthup will expand the processed art into tote bags
                                             and other products while increasing brand awareness through art exhibitions,
                                             offline promotions, and utilizing utilization social media. Currently, Arthup’s
                                             products are available on e-commerce platforms.




                                                  Gabriel Sebastian (Ecoplast) – Majalengka, West Java
                                                  Gabriel Sebastian utilizes straws as a substitute for single-use plastic or
                                                  Styrofoam under the brand Ecoplast. Through this innovation, Ecoplast
                                                  empowers the local community, especially women and rice farmers.
                                                  Currently, Ecoplast products are available on e-commerce platforms and
                                                  social media.




                   Community Link #JadiBerkelanjutan Program
                   Bank continued to provide a series of financial literacy training for MSMEs in eastern
                   Indonesia, targeting women entrepreneurs and people with disabilities. The training focused
                   on entrepreneurship training, digital access, social media marketing, as well as provisions
                   of interest-free working capital loans to 50 selected MSMEs in each batch to support their
                   business development.
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           In 2023, Bank conducted the second batch of financial literacy training with a total of
           223 MSME participants (a total of 423 MSME participants accumulated since 2022). The
           participants consist of 187 female and 36 male by which 14 of them are people with
           disabilities.




                      487                                                     Manado, Makassar, Maros,
                      Registered                                              Sungguminasa, Takalar,
                      MSMEs
                                                                              Balikpapan, and Kupang.


                       223
                       Selected       84%              16%                         6%
                                                                                   People with disabilities
                       participants   Women              Men




Empowerment for
People with Disabilities
Bank employs 7 people with disabilities as
outsourcing employees stationed in the Contact
Center unit.




People with Disability
Training
Bank collaborates with Alunjiva Indonesia to
implement the Entrepreneurship Training and Partnership Program for 30 people with disabilities. The goal of the
program is to empower participants to become culinary entrepreneurs.




Empowerment Training for Bamboo Farmers
Bank collaborates with the KEHATI Foundation to provide capacity building for farmers, farmer groups, and local
communities in Central Lombok, West Nusa Tenggara (NTB), and Flores, East Nusa Tenggara (NTT), with a total of 172
participants. The training sessions include processed bamboo shoot production, basic weaving, advanced weaving,
cooperative institutional training, bamboo product manufacturing, eco-tourism cooking class training, as well as
briquette and bamboo tea production.
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                                Pillar 4: Climate And Environment
                                [POJK51-F.10] [SUSBA 1.6.2.10]




     Bamboo Conservation
     Over the past 12 years, Bank has been actively engaged
     in bamboo conservation programs in collaboration
     with    the     Biodiversity       Foundation        (KEHATI)   and
     various partners. Together, we have planted a
     total of 49,400 bamboo saplings, including Black
     Bamboo (Gigantochloa atroviolacea), Tabah Bamboo
     (Gigantochloa nigrociliata Buse-Kurz), and Betung
     Bamboo (Dendrocalamus asper) in regions such as
     Lombok – West Nusa Tenggara, Tabanan and Gianyar
     – Bali, Flores – East Nusa Tenggara, and Magelang –
     Central Java. However, in 2023, the bamboo planting
     activities were postponed due to the impact of El Niño
     which cause a delay in rainy season.


     Bank also conducts periodic analyses of the potential carbon absorption of the planted bamboo. Estimation in 2023
     shows that the bamboo has potential absorption exceeded 1,700 tonnes CO2e, with accumulated absorption from
     2019 reaching 7,600 tonnes CO2e.




        Carbon Absorption                              Increases           Supports Nature           Restores The
              (CO2)                                   Groundwater           Conservation             Environment
                                                        Content




     Inorganic Waste Management

     Bank implements waste management initiatives by adhering to the principles of reduce, reuse, and recycle (3R) in
     collaboration with third parties. This approach is integrated into various Bank programs and activities, including the
     ABCDE Challenge, Paper Upcycling, the Experiential Learning Workshop, the Zero Waste to Landfill initiative at CIMB
     Niaga Olympic, and the Conserving the Earth with Waste Sorting event during the Year-End Celebration. In 2023, an
     estimated 4.6 tonnes of waste were collected for processing by third-party entities.
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04
     Pillar
     Governance
     and Risk
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     Sustainability Governance                                                                           [POJK51-E.1] [GRI 2-9] [SUSBA 1.4.1.7] [ACGS (B).C.1.4]




     CIMB Niaga plays a crucial role in supporting efforts                          measurable strategies and targets, Bank has initiated the
     for climate change mitigation and adaptation. Bank                             Net Zero Strategy & Climate Risk Management project.
     have seamlessly integrated climate risk aspects into its                       Moreover, Bank is in the process of constructing a model
     operations through Bank’s sustainability governance.                           and methodology for climate scenario analysis (CSA)
     Following the guidance of the Taskforce for Climate-                           and actively participates in the pilot project for climate
     related Financial Disclosure (TCFD) framework, Bank                            risk stress testing (CRST) mandated by the Financial
     aims to achieve overall net zero GHG emissions (Scope                          Services Authority (OJK). This climate risk framework
     1, 2, and 3) by 2050. To ensure a well-defined roadmap                         and approach are adopted and implemented through
     towards       organizational         net-zero      emissions        with       the Sustainability and Integrated & Climate Risk Units.




     Sustainability Governance Body at CIMB Niaga                                                                                  [POJK51-E.1] [SUSBA 1.4.1.7]




                                                                                                 Board of Commissioners



                                                                 Integrated                                                                           Risk
     Risk Oversight           Audit
                                             Nomination and
                                                                 Corporate                          President Director
                                              Remuneration                                                                                         Management
       Committee            Committee          Committee
                                                                Governance
                                                                Committee                                                                           Committee


                                                                                     Director Responsible          Director Responsible
                                                                                       for Sustainability            for Climate Risk




                                                                 Head of Good Corporate Governance                             Head of Asset Liability
                                                                      (GCG) dan Sustainability                                   Management Risk




         Good Corporate                                                   Sustainability Head                             Integrated & Climate Risk Head
                                       Community
        Governance (GCG)
                                    Development Head
           Specialist
                                                                    • Sustainability Business Practice                   • Integrated Risk Specialist
                                                                      Specialist                                         • Climate Risk Specialist
                                         Community                  • Sustainability Strategy and
                                        Development                   Reporting Specialist
                                          Specialist                • Sustainability Communication &
                                                                      Outreach Specialist




     BUSINESS UNIT/ENABLER UNIT               BUSINESS UNIT/ENABLER UNIT              BUSINESS UNIT/ENABLER UNIT                  BUSINESS UNIT/ENABLER UNIT




             Oversight                           Person in Charge                 Implementation                       Good Corporate Governance (GCG)
                                                                                                                       and Sustainability Sub-Directorate

             Supports/Coordinates                Board of Directors               Sustainability Unit                  Integrated & Climate Risk Unit
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The Board of Commissioners serves as the highest                                                 Director of Compliance, Corporate Affairs & Legal
governance body, followed by the Board of Directors                                              serves as the Director in charge of Sustainability, and
chaired by the President Director. The Board of Directors                                        the Director of Risk Management serves as the Director
is in charge of and jointly responsible for implementing                                         in charge of Climate Risk. The overall coordination of
sustainability principles, sustainable finance, climate                                          sustainability performance is overseen by the Board
action, and mitigation, with direct supervision of the                                           of Commissioners through the Audit Committee in
Board of Commissioners, aided by the Audit Committee                                             accordance with the Audit Committee Charter. [GRI 2-11;
and the Risk Monitoring Committee. Specifically, the                                             2-14] [SUSBA 1.4.1.7] [ACGS C.1.6; (B)C.1.5]




Duties and Responsibilities of the Highest Governance Body
for Sustainability and Sustainable Finance
[GRI 2-12; 2-13; 2-14; 2-19] [SUSBA 1.1.2.2; 1.4.1.1; 1.4.1.2; 1.4.1.3; 1.4.1.6; 1.4.1.7] [ACGS (B).C.1.5]



Bank has integrated tasks and responsibilities that support sustainability principles, sustainable finance, and the
Sustainable Finance Action Plan (RAKB) into the Charter of the Board of Commissioners, Board of Directors, Audit
Committee, and the Nomination and Remuneration Committee. A comprehensive explanation regarding the tasks and
responsibilities of the Audit Committee and the Nomination and Remuneration Committee related to sustainability
implementation can be found in Appendix Pillar 4.


Duties and Responsibilities of the Sustainability Governance



                                               1. Ensure the alignment of environmental, social, and governance (ESG) aspects in the
   Board of                                       business strategies development and business activities by the Board of Directors as a
   Commissioners                                  means of implementing sustainable banking business
                                               2. Approve RAKB and monitoring its implementation



                                               1. Ensure the alignment of sustainability strategy with Bank’s overall strategy
                                               2. Approve Policies and Procedures regarding sustainability and sustainable finance
                                               3. Review and approve RAKB and ensure its implementation upon approval from the Board
   Board of Directors
                                                  of Commissioners
                                               4. Conduct periodic reviews to evaluate sustainability and sustainable finance performance




                                               1. Lead and ensure the development of RAKB is in line with the vision and mission
   Director of                                 2. Coordinate, evaluate, and periodically follow up the implementation of RAKB
   Compliance,                                 3. Ensure the implementation of frameworks, policies, methodologies, and procedures to
   Corporate Affairs,
                                                  mitigate sustainability risks (environmental, social, and human rights risks)
   and Legal as
                                               4. Ensure the implementation of sustainability activities/initiatives aligns with Bank’s
   Director in Charge
   of Sustainability                              strategy
                                               5. Review and provide input on sustainability reports



                                               1. Lead the Bank’s climate risk management strategy and ensure adequate supervision by
   Director of Risk                               the Board of Directors and Board of Commissioners
   Management as
                                               2. Develop knowledge & understanding of climate risks and effectively integrate these
   Director in Charge
                                                  risks into Bank’s internal controls to safeguard Bank’s resilience against climate change
   of Climate Risk
                                                  impacts in accordance with regulatory requirements and best practices
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                                    1. Propose and ensure the sustainable finance vision and mission are regularly reviewed
                                       and aligned with Bank’s vision and mission
                                    2. Develop the Sustainability Policy, Sustainable Finance Policy, and Human Rights Policy
                                    3. Develop RAKB and submit it to regulators
                                    4. Supervise the RAKB implementation, including the development of sustainable finance
     Sustainability Unit               products/ services, capacity building, and Bank’s internal adjustments
     [GRI 2-13] [SUSBA 1.4.2.1]     5. Map business segments with climate change-related risks and assign the financing
                                       categories into high, medium, or low risk
                                    6. Implement and oversee the implementation of sustainability initiatives within the Bank’s
                                       internal environment, including corporate social responsibility (CSR)
                                    7. Raise the awareness of sustainable finance practices and culture
                                    8. Ensure that stakeholders are well-informed on sustainable finance implementation


                                    1. Develop and implement climate risk management framework
                                    2. Integrate climate risk into the overall Enterprise-Wide Risk Management Framework
                                    3. Develop methodologies for climate scenario analysis (CSA) and/or climate risk stress
     Integrated &
                                       tests (CRST) to assess the impact of climate risks on Bank and its interrelation with other
     Climate Risk Unit
                                       risks (such as credit risk, market risk, operational risk), as well as Bank’s capital and
                                       liquidity conditions



                                    1. Plan and coordinate the implementation of CSR programs
                                    2. Ensure the execution of CSR programs aligns with the Sustainable Finance Vision and
                                       Mission, as well as key focus determined by the management
     Community                      3. Manage the Bank’s CSR budget
     Development Unit               4. Foster a CSR-oriented behavior and culture within CIMB Niaga by collaborating on CSR
                                       program implementation with the working units or actively engaging employees in
                                       organizing CSR activities across all working units
                                    5. Take part in the responsibility of managing Bank’s reputation risks




           The Bank’s capital requirements are periodically planned, discussed, and monitored
              by the Board of Directors and the Board of Commissioners, supported by data
                     analysis. Management has prepared a foundation for establishing
             capital structure policies based on several factors, including economic forecasts,
          business growth potential, risk appetite, stress test results, and capital ratio targets.
               Through these efforts, CIMB Niaga will be able to survive the economic cycle,
          capitalize on growth and strategic opportunities, maximize shareholder returns, and
            conduct business within the risk appetite corridor while complying with applicable
           regulations. Detailed description and disclosure of information regarding Corporate
           Governance; nomination and remuneration criteria for Board of Directors (BoD) and
           Board of Commissioners (BoC); authorities of the General Meeting of Shareholders
          (GMS); duties and responsibilities of Board of Directors and Board of Commissioners;
           as well as Audit Committee and Nomination and Remuneration Committee Charter
          are presented in 2023 Annual Report, which is prepared separately from this Report
                 but is complementary. [GRI 2-9; 2-10; 2-15; 2-17; 2-18; 2-19;2.20] [SUSBA 1.4.1.5; 1.4.1.6; 1.4.1.7] [ACGS C.3.1]
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                      VISION for                                                                                 MISSION for
                      Sustainable Finance:                                                                       Sustainable Finance:
                      [POJK51-C.1] [SUSBA 1.1.1.1]                                                               [POJK51-C.1]



      To be the leading ASEAN company                                                                         Conduct sustainable business
        that embraces the harmony of                                                                       activities that results in continuous
     economic, social, and environmental                                                                           and integrated growth
                   aspects




Management Review of Sustainability Performance
[GRI 2-12; 2-13] [SUSBA 1.4.1.1; 1.4.1.2; 1.4.1.3; 1.4.1.6; 1.4.1.7; 1.4.2.1; 1.6.1.2] [ACGS C.1.6; (B).C.1.5]



The Director of Compliance, Corporate Affairs, and Legal                                           Board of Commissioners. The Board of Commissioners,
is responsible for the implementation and evaluation of                                            through the Audit Committee, continue to review of
the Sustainable Finance Action Plan (RAKB). This includes                                          RAKB results presented by the Board of Directors.
receiving and reviewing reports on the Sustainable                                                 Meanwhile, the Board of Commissioners, through the
Business Activity Category (KKUB) portfolio, reports                                               Risk Monitoring Committee, review the identification
based on the Green Social Sustainability Impact Products                                           of high sustainability risks sectors, sustainable finance
& Services (GSSIPS) framework, and risk management                                                 risks, human rights risks, and climate change aspects
reports based on business sectors within the Indonesian                                            (physical and transition risks). With the assistance of this
Green Taxonomy (THI). In 2023, Bank starting to studying                                           evaluation process, the Board of Directors and the Board
and providing feedback on the concept of the Indonesian                                            of Commissioners ensure that the implementation of
Sustainable Finance Taxonomy (TKBI), (previously                                                   sustainability strategies, the performance growth of the
referred to as the Indonesian Sustainable Taxonomy or                                              Sustainable Business Activity Category (KKUB) portfolio,
TBI), an evolution from the THI.                                                                   and financial risk mitigation are carried out purposefully.
                                                                                                   Furthermore, Bank has formulated a five-year RAKB
Bank’s sustainability performance report is presented                                              (2024-2028) and reviewed the 2023 RAKB realization.
regularly, at least twice a year, to the Board of Directors,                                       The review indicates that there are no significant
the Audit Committee, and the Board of Commissioners.                                               issues related to RAKB implementation that need to be
The report includes monitoring the achievement of                                                  specifically reported to the Board of Commissioners.
current-year sustainability targets, the realization of                                            The sustainability performance report, RAKB, and its
strategies and RAKB, sustainable finance risks, and                                                realization receive approval from the Board of Directors
various sustainability initiatives implemented by Bank.                                            and the Board of Commissioners before being submitted
Additionally, periodic reporting on sustainability risk                                            to OJK.
identification results in Bank’s financing portfolio and
various sustainability recommendations to debtors is                                               The review conducted by the Board of Directors and the
provided to the Risk Management Committee and the                                                  Board of Commissioners is part of their responsibility to
Risk Monitoring Committee. In addition, Risk Hotspots &                                            ensure that the sustainability strategy implementation,
Emerging Risks, including transition risks due to climate                                          KKUB portfolio growth, portfolio based on the Green
change, are also reported to the Risk Management                                                   Social Sustainability Impact Products & Services
Committee.                                                                                         (GSSIPS) framework, and financial risk management
                                                                                                   have been performed optimally. The review of RAKB
Regular reviews of RAKB implementation are conducted,                                              implementation highlighted that Bank achievements are
and the results are presented to the Board of Directors and                                        in line with the annual plan.
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     Sustainability Risk
     Approach Framework                                                      [POJK51-E.3]




      1                                                       Sustainability Policy



      2                            3                      Integration of Sustainability Aspects in Bank’s Policy


           Sustainable            Company Charter                   Operational Risk                    Risk and Credit Management
          Finance Policy          • Company Policy Manual           • Whistleblowing Policy             Commercial Credit Policy
                                  • Board of Commissioners          • Anti-fraud Policy
                                  • Board of Directors              • Anti-Bribery and Corruption
                                  • Audit Committee                   Policy
                                  • Nomination and                  • Anti-Bribery Management
                                    Remuneration                      System Policy
                                    Committee                       • Anti-Money Laundering, Counter-
                                                                      Terrorism Financing, and
                                                                      Prevention of Proliferation of
                                                                      Weapons of Mass Destruction
                                                                      Policy (AML, CTF, and PPPWMD)
                                                                    • Risk and Credit Management
                                                                    • Commercial Credit Policy




            Exclusion             Strategic Procurement             Human Resources                     Finance
               List               & Admin Property                  Company Code of Ethics and Code     Smart Spending Policy
                                  Management                        of Conduct
                                  • Goods and Services
                                    Procurement Policy and
                                    Procedure
                                  • Inventory Procedures
                                    and Carbon Emission
                                    Methodology

      High Sustainability         Corporate Social
       Risk Sector List           Responsibility (CSR)
                                  Corporate Social
                                  Responsibility Policy



                                   4                                      Sustainability Scope


                                  Business Relations                                                    Non-Individual Financing
        Sector Guidance
                                  • Bank subsidiaries                                                   • Corporate banking segment
                                  • Corporate Social Responsibility (CSR) partner or non-individual     • Commercial banking segment
                                    beneficiary
                                  • Suppliers, vendors, merchants and outsourcing partners
          Human Right             • Business partners
            Policy                • Members of the Board of Commissioners, Sharia Supervisory
                                    Board, Board of Directors and Independent members of Bank’s
                                    Board of Commissioners Committee
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ENVIRONMENTAL AND SOCIAL RISK
APPROACH                    [SUSBA 1.1.1.5; 1.1.1.6; 1.1.1.10; 1.2.1.4; 1.2.1.6; 1.2.1.8; 1.2.1.10; 1.2.1.12]




   Bank acknowledges and recognizes the importance of various environmental, social,
   and economic risks that negatively impact various aspects, including but not limited
     to climate change, environmental degradation, biodiversity loss, deforestation,
     water, sea, air, human rights, local communities/indigenous peoples, and labor.
     Moreover, the activities of debtors through Bank’s financing portfolio may also
    have impacts on these various aspects. Bank consistently mitigates risks through
   Sustainability Due Diligence (SDD) and promotes sustainable best practices through
      Sector Guidance. This aims to ensure that Bank and its borrowers consistently
                  contribute positively to the environment and society.




Key Environmental and Social Considerations for Risk
Assessment         [POJK51-F.9; F.23] [GRI 201-2; 304-1; 304-2; 304-4] [SUSBA 1.2.1.1; 1.2.1.6; 1.2.1.7; 1.2.1.11; 1.2.2.2; 1.2.2.3; 1.5.1.1; 1.6.1.1; 1.6.1.3]


                                                                          Bank acknowledges the significance of sustainability
                                                                          risks related to deforestation, water, marine issues, land
                                                                          use, community social aspects, employment, and human
                                                                          rights. Therefore, Bank’s risk assessments on sustainable
                                                                          finance implementation are regularly discussed and
                                                                          evaluated within the Sustainability Due Diligence (SDD)
                                                                          and Enhanced Sustainability Due Diligence (ESDD),
                                                                          which includes Sector Guidance. This involves utilizing
                                                                          comprehensive data and information to identify and
                                                                          address potential sustainability risks.




                                                                             A comprehensive description and disclosure of
                                                                             information regarding environmental and social
                                                                             risks can be found in Appendix Pillar 4 and on
                                                                             Bank’s website.
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                                             Bank’s Strategy to Address Environmental Risks

                                                            Environmental Risks




          Climate Change          Deforestation   Biodiversity      Inland and         Energy            Water          Waste and
            (physical and                            Loss             Marine            Use             Scarcity        Pollution
          transitional risk)                                       Environment




            1. Bank has a long-term commitment to become a Net Zero Emission organization by 2050.
            2. Bank has a Sustainability High Risk Sector List by identifying sectors with potential to be affected by climate
               change, including the Agriculture, Forestry, Other Land Use and Land Use Change (AFOLULUC). The document
               was prepared based on the scientific method and refers to several international literatures, including the
               Intergovernmental Panel on Climate Change (IPCC), the United Nations Framework Convention on Climate
               Change (UNFCC), and the Science Based Target Initiative (SBTi).
            3. Bank has implemented No Deforestation, No Peat, and No Exploitation (NDPE) policy, particularly in AFOLULUC
               sectors. This NDPE commitment is attained by imposing the High Conservation Value (HCV) method for land
               clearing; prohibiting the use of the burning method (zero burning policy), and prohibiting damage to cultural
               heritage, national and/or international protected areas, including peat conservation and the wetland area at the
               Ramsar site.
            4. Through Bank’s ‘Exclusion List,’ Bank has committed to not finance the expansion of thermal coal mines and
                coal-fired power plants (CFPP), including opening mines utilizing the Mountain Top Removal (MTR) technique.
            5. Bank has started a study on establishing baseline for climate financing based on the GHG sector:
                a. The results of the interim study demonstrate that coal and industries are the primary sectors requiring joint
                    efforts to reduce greenhouse gas emissions.
                b. Based on the results of the study, Bank has set interim targets for 2030, including:
                    • reducing the thermal coal sector financing portfolio to 50% from the 2021 baseline.
                    • reducing the emissions intensity of cement production to 0.46 tonnes of CO2e/tonnes of cement produced
                       when compared to the 2021 baseline (0.72 tonnes of CO2e/tonnes of cement produced).
                    • reducing emissions intensity in palm oil production to 1.52 tonnes of CO2e/tonnes of palm oil when
                       compared to the 2022 baseline (1.81 tonnes of CO2e/tonnes of palm oil)
                    • reducing emissions intensity in electricity production to 272 kg CO2e/MWh compared to the 2022 baseline
                       (439 CO2e/MWh)
                c. In the future, in addition to conducting Sustainability Due Diligence (SDD), Bank will also include GHG
                    emission factors generated by the financed sector as part of its consideration of sustainability factors.
            6. Through the Sector Guidance, Bank consistently encourages and advocates for its borrowers, especially
                in sectors that are prone to environmental or social issues, to adopt sustainable best practices within their
                respective industries. This includes, but is not limited to, implementing principles from organizations such as the
                Marine Stewardship Council, Alliance for Water Stewardship, and others.
            7. Bank has several policies regarding energy and greenhouse gas emissions. These policies include:
                a. Green Office policy that promotes responsible energy consumption in Bank’s operations.
                b. GHG Emissions Inventory Procedure covering Scopes 1 and 2.
                c. Technical Guidelines for Calculating Scope 3 GHG Emissions.
            8. Bank has begun identifying Scope 3 greenhouse gas emission sources used in various studies.
            9. Bank has begun the ‘Carbon-Offset Scheme’ study and acquired ‘carbon units’ from Indonesia Carbon Exchange
                (IDXCarbon) as well as ‘Renewable Energy Certificate’ from State Electricity Company (PLN) to mitigate risks
                associated with GHG emissions caused by Bank’s operations.
            10. Bank ensures that no operational activities directly disturb or affect biodiversity, including rare flora and fauna
                protected by the International Union for Conservation of Nature and Natural Resources (IUCN).
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                                        Bank’s strategy to address Social & Human Risks

                                                         Social & Human Risks




                        Institutional        Human Rights and            Health and            Negative Impacts
                          Integrity            Labor Issues                Safety              on Communities




   1.   Bank has already adopted a Human Rights Policy and has integrated these social risk aspects into the Sustainability Due
        Diligence.
   2.   Bank has adopted the best sustainability practices from the NDPE commitment, specifically No Deforestation, and has
        incorporated them into the SDD when conducting a sustainability study. Additionally, banks require clients in particular
        sectors to practice Free Prior Informed Consent (FPIC) in their social approach.
   3.   Through Bank’s ‘Exclusion List,’ Bank is committed to prohibiting financing for debtors directly or indirectly involved in
        activities related to human rights violations and labor laws. It also prohibits financing activities that have a negative
        impact on UNESCO World Heritage Sites, such as damaging sites, resources, habitats, or landscapes with global or
        national significance, or those important to local communities/indigenous peoples as identified by their involvement.
        This includes but is not limited to cultural heritage sites, national and/or international protected areas, including peatland
        conservation areas and wetland areas under Ramsar sites.
   4.   Through the Sector Guidance, Bank requires clients to have policies/commitments related to human rights, including but
        not limited to grievance mechanisms and Occupational Health and Safety (OHS) policies, and respect for human rights
        principles aligned with the pillars of the United Nations Guiding Principles (UNGP) on Business and Human Rights.
   5.   Through the Sustainability Pillars, specifically the Corporate Social Responsibility (CSR) Pillar, Bank endeavors to always
        make a positive contribution to the surrounding community through its four CSR pillars.




The environmental and social risks                                                                    The environmental and social
that clients and their operations                                                                     risks arising from financial
are exposed to, such as the nature                                                                    activities. This include specific
of its activities, geographical                                                                       project-related      risks      and
location, supply chain, and raw                                                                       related     landscape      impacts,
material production impacts,
                                                           Sustainability                             and assessment of the client’s
among others. A key aspect of                              Due Diligence                              sustainability      commitments,
consideration includes climate-                           Process Views                               policies,    performance,     track
related physical and transition                           Risks from Two                              record, reputation.
risks and mitigation.                                      Perspectives:
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      Risk Approach and Strategy towards
      Climate Change                                 [GRI 201-2] [SUSBA 1.1.1.5; 1.1.2.1; 1.2.1.8; 1.2.2.2; 1.6.1.2; 1.6.2.8]




      In its effort to address climate change risks, Bank is                 In 2023, CIMB Niaga analyzed the various disasters that
      developing its business strategy by considering core                   occurred in Indonesia, including earthquakes, volcanic
      elements based of the Taskforce for Climate-related                    eruptions, extreme weather events, floods, landslides,
      Financial Disclosure (TCFD). Additionally, Bank is studying            droughts, tidal waves, and abrasion. While the financial
      the International Financial Reporting Standards Climate-               impact of these disasters was not significant and did
      related Disclosure (IFRS S2) framework published by                    not disrupt Bank’s business processes, the overall
      The International Sustainability Standards Board (ISSB)                losses incurred were substantial. In the long term, the
      and biodiversity aspects based on The Taskforce on                     influence of extreme weather events could lead to
      Nature-related Financial Disclosures (TNFD). Bank has                  even more significant losses if not properly addressed.
      also develop a ‘High Sustainability Risk Sector List,’                 Therefore, Bank continues to focus on financial literacy
      identifying sectors vulnerable to the impacts of climate               education, including climate actions, and allocating a
      change, including AFOLULUC. These documents are                        dedicated budget to finance climate change adaptation
      crafted in reference to various international literature,              and mitigation activities through the Sustainability-
      such as the IPCC, the UNFCCC, and the SBTi.                            linked Loan/Financing (SLL/F) and Sustainable Finance
                                                                             (SF) programs.
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Climate Change Issues                                      [SUSBA 1.6.1.2]



The impact of climate change risks can potentially affect the financial position and performance of the Bank, including
customers’ material cash flow through the microeconomic and macroeconomic transmission channels. Consequently,
Bank places significant emphasis on addressing climate change issues and implementing action steps and mitigation
measures.


Further information regarding the definition and climate risks aspects, please refer to Bank’s website.


                                 Financial contagion (market losses, credit tightening) feeding back to the economy




        DRIVERS                         ECONOMY                                                                            FINANCIAL SYSTEM
                                                                           DIRECT TRANSMISSION CHANNELS

                                  Business
   Physical Risks                 disruption
   - Extreme                                                                     Lower asset values
     weather                      Capital scrapping,                             (e.g., property)                          Financial market
     changes                                                                                                               losses
                                  depreciation, and
   - Gradual climate
                                  abandoned assets
     change                                                                      Lower household wealth
                                                                                                                           Credit market
                                  The need of                                                                              losses
   Transition Risk                investment and                                 Lower corporate
   - Climate policy               new development                                profitability
   - Technology                                                                                                            Operational Risk
   - Consumer                                                                    Increased litigation
                                  Increase in
     preferences
                                  commodity and
                                  energy prices
                                                                          INDIRECT TRANSIMITION CHANNELS




                                  Wider economic deterioration (lower demand, productivity, and output) impacting
                                                                financial conditions




Developing                                   Sustainability                                                          Policy             and
Strategy                  [GRI 2-23; 2-24; FS1] [SUSBA 1.2.1.12; 1.2.1.13; 1.2.1.14; 1.2.2.1; 1.2.2.2; 1.2.2.4; 1.3.2.6]




Aligned with the vision and mission of sustainable finance, Bank is committed to support the Sustainable Development
Goals (SDGs) by developing policies and procedures harmonious with the five pillars of sustainability. These pillars
serve as the foundation for formulating Bank’s sustainability roadmap towards achieving overall net zero GHG
emissions (Scope 1, 2, and 3) or net zero emissions (NZE) organization by 2050. This roadmap establishes a framework,
strategy, and implementation methods to ensure effective management of environmental, social, and governance
(ESG) risks. These risks include both credit and non-credit aspects, including but not limited to financing and business
relationships.
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      Sustainability Policy No. M.08 and                                    relationships. Bank is committed to always respond
                                                                            promptly to human rights violations in operational
      Sustainability Procedure No. M.08.P.01
                                                                            activities. Bank provides a whistleblowing system (WBS)
      Sustainability        policy       and   procedure       concerning
                                                                            managed by a third party that is both independent and
      non-financial activities, including business relations:
                                                                            professional. In case when any human rights violation
      a) Bank Subsidiaries; b) Partner or beneficiary of
                                                                            occurs, Bank will transparently inform stakeholders
      Corporate        Social        Responsibility   (CSR)    programs;
                                                                            about the case’s progression and resolution through
      c) Suppliers, vendors, merchants, and outsourcing
                                                                            various channels, including Bank’s Sustainability Report.
      partners; d) Business Partners; e) Members of the
                                                                            Currently, in alignment with United Nations Guiding
      Board of Commissioners, Sharia Supervisory Board,
                                                                            Principles (UNGP) on Business and Human Rights, Bank
      Board of Directors, and Independent Party members
                                                                            plan to commence studying Human Rights Due Diligence
      of the Board of Commissioners Committees; and f)
                                                                            (HRDD).
      Nonindividual financing customers . Sustainability Policy
      and Procedure, specifically the ‘Exclusion List,’ have been
      100% implemented in Bank business operations.                         Manufacturing Sector Guidance
                                                                            Bank requires manufacturing companies to meet
                                                                            minimum sustainability criteria, which include having
      Sustainable Finance Policy No. M.10
                                                                            an Environmental Impact Document and prioritizing
      and Sustainable Finance Procedure No.
                                                                            Occupational Health and Safety (OHS) principles. Debtors
      M.10.P.01                                                             are also urged to consistently prioritize Human Rights
      Sustainable Finance Policy serves as the foundation
                                                                            principles. Bank continually encourages debtors to
      for Sustainable Business (Pillar 2). Bank compliments
                                                                            adopt best sustainability practices in the manufacturing
      this policy with two documents, the ‘Sustainability
                                                                            sector, including but not limited to committing to carbon
      High Risk Sector List’ and ‘Sector Guidance’. Sustainable
                                                                            emission reduction plans in line with the Enhanced
      Finance Procedure serves as a guide for performing
                                                                            Nationally Determined Contribution (ENDC).
      ‘Sustainability         Due        Diligence’     and    ‘Enhanced
      Sustainability Due Diligence’, by which Bank identify,
      quantify, monitor, and control environmental, social, and
      governance (ESG) risks. Both Sustainable Finance Policy
      and Procedure are updated at least every two years, in
      line with Bank’s Manual Framework Policy.


      Human Rights Policy No. M.13
      This policy reflects Bank’s commitment
      in recognizing all human rights principles
      and other issues related to these rights
      are inseparable and inalienable. In addition
      to these principles, Bank supports and
      strives     to    prioritize      and    uphold    the
      principles outlined in the United Nations
      Global Compact (UNGC), the International
      Labor Organization (ILO), and applicable
      human rights laws and regulations. Bank
      has an SDD mechanism to identify and
      investigate social and human rights risks
      associated with its customers and business
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Sustainability Due Diligence Mechanism                                                                                                          [GRI 2-16; FS2; FS3; FS10; FS12] [SUSBA 1.2.1.1;

1.2.1.2; 1.2.1.10; 1.2.1.12; 1.2.1.13; 1.2.2.3; 1.3.1.1; 1.3.1.2; 1.3.1.4; 1.3.1.5; 1.3.2.1;1.3.2.2; 1.3.2.3; 1.3.2.4; 1.3.2.5; 1.6.1.1; 1.6.2.4; 1.6.2.5; 1.6.2.8]


SDD has been fully implemented (100%) in the corporate banking segment since 2020. Starting from 2023, Bank is
gradually expanding its scope to various sectors within the commercial banking segment.



Sustainability Due Diligence Mechanism




      SDD is conducted                         The outcome of the                         Bank will regularly                          All financing                      If the sustainability
       by addressing a                           SDD will generate                             monitor and                         decisions are made                      recommendations
     series of questions                            sustainability                        evaluate all issued                      by the Credit Officer                   and/or Action Plan
       that cover ESG                        recommendations, and                            Action Plans in                         within authority                    are not approved by
      aspects, including                    potentially accompanied                        conjunction with                         limit, considering                  the relevant Business
     Human Rights (for                       by a time-bound Action                        the annual credit                          both credit and                   Unit, escalation to the
    example, grievance                            Plan. The agreed                       reviews. The process                     sustainability aspects.                Board of Directors is
        mechanisms),                            Action Plan will be                           is conducted                          The results of the                 necessary, and decisions
       examination of                            incorporated into                           periodically or                        financing reviews                   will be made through
     the Exclusion List,                       the loan agreement                         incidentally based                       will be presented to                 a voting process with
     High Sustainability                      documents and must                         on debtor conditions.                     the Credit Approval                  focus on deliberation
       Risk Sector List,                       be adhered to by the                          In case of non-                       Officer within Bank’s                     and consensus
        Sustainability                      debtor/potential debtor.                       compliance with                            authority limit.                         principles.
    Watchlist, and Sector                    The recommendations,                           the Action Plan,
          Guidance.                               action plans, and                           Bank will take
                                                financing decisions                      mitigation according
                                                will be reported to                        to the applicable
                                              the Risk Management                           procedures and
                                            Committee and the Risk                             regulations.
                                             Monitoring Committee.




SDD Results Summary and Categories of Sustainability Risks in the AFOLULUC Sector*

                                                                                                AFOLULUC                                          Outside the AFOLULUC sector
                    Recommendation                                                                                         Sustainability Risk
                                                                                Low                Medium                   High                   Low                Medium            High
 Recommended                                                                     1%                   50%                     0%                   10%                 28%               0%

 Recommended with Action Plan                                                    0%                    9%                     0%                    0%                 2%                0%

 Not Recommended                                                                 0%                    0%                     0%                    0%                 0%                0%

*Findings based on the number of proposals assessed through SDD and/or ESDD.



Some examples of sustainability Action Plans include,
but are not limited to, obtaining the ISPO and/or RSPO
certifications for palm oil debtors, improving the rating                                                         Further information regarding the Sector
in the Public Disclosure Program for Environmental                                                                   Guidance and Exclusion List can be
Compliance (PROPER), aligning with the emission                                                                      accessed via our website. [SUSBA 1.2.1.7]
reduction           targets          of     the       Paris        Agreement,               and
supporting Indonesia’s ENDC.
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      Sustainability Risk Management                                                [POJK51-E.3] [SUSBA 1.4.1.4; 1.4.1.8]



      Bank adopts a proactive and forward-looking Enterprise-                 activities, culture, and decision-making processes. At the
      Wide Risk Management (EWRM) framework to manage                         daily operational level, the concept of the three lines of
      risks and achieve optimal performance levels. Within                    defense is applied, encompassing environmental and
      the EWRM context, risk management aligns risk appetite                  social risks involving the entire Board of Directors, senior
      with business strategy. The implementation of good                      management, and employees. Moreover, to ensure the
      governance allows for an adequate four-eyes principle                   implementation of Sustainable Financial Policies and
      and transparency in all risk management processes.                      Procedures, Bank conducts internal audits and control
      Risk management is an integral part of operational                      effectiveness testing (CET) periodically on relevant units.




                                    Comprehensive information regarding risk management can be
                                                found in the 2023 Annual Report.




      Sustainability Governance Approach Based on
      International Financial Reporting Standards
      (IFRS) and Task Force for Climate-related
      Financial Disclosures (TCFD)
                                                                                                                     IFRS S1    IFRS S2   TCFD

      Governance             1. Bank has Sustainability Unit overseen by the Director in Charge of                          +     +        +
                                Sustainability.

                             2. Bank has an Integrated & Climate Risk Unit supervised by Risk Management                    -     +        +
                                Director.

                             3. Bank executes RAKB                                                                          +      -       +
                             4. Bank has Sustainability Policy, Sustainable Finance Policy, and Human Rights                +      -       +
                                Policy.

                             5. Bank implements SDD.                                                                        +      -       +
                             6. Periodic reviews of sustainability and climate change-related opportunities                 +      -       +
                                and risks are presented to relevant parties within the Sustainability
                                Governance Body.

      Strategy               1. Bank implements the SDD mechanism.                                                          +     +        +
                             2. Bank has a strategy to identify opportunities and challenges arising from                   -     +        +
                                climate change through studies on internal carbon pricing (ICP).

                             3. Bank is currently applying to the Green Climate Fund to become a National                   -     +        +
                                Accredited Entity for the Green Climate Fund (GCF) in Indonesia.
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                                                                                                                  IFRS S1    IFRS S2         TCFD

Risk       1. Incorporating sustainability and climate change risks as considerations in                               +          +             +
              assessing both financial and non-financial risks.
Management
                       2. Incorporating sustainability and climate change aspects into SDD.                            +          +             +
                       3. Identifying potential climate change risks in oil plantations through case                   -          +             +
                          studies.

                       4. Enhancing literacy on sustainability and climate change risks.                               +          +             +
                       5. Develop financing risk profile scenarios on climate change impacts.                          +          +             +
                       6. Monitoring and evaluating sustainability and climate risks.                                  +          +             +
Matrix and             1. Identifying portfolios/groups of debtors that have sustainability and climate                +          +             +
                          change impacts.
Target
                       2. Conducting SDD on Bank’s portfolio.                                                          +          +             +
                       3. Sustainability commitments.                                                                  +          +             +
                       4. Climate financing commitments such as:                                                       -          +             +
                          a. Achieving net zero GHG emissions by 2050 and setting sectoral targets
                             by 2030.
                          b. Phasing out thermal coal financing by 2040.

                       5. Increasing sustainable financing to RM100 billion or equivalent to IDR 208                   -          +             +
                          trillion by 2024.

Description: symbol ‘+’ = applicable; ‘-’ = not applicable.




Scope 1 & 2 GHG Emissions (Absolute) [ACGS C.1.4; C.1.5]

                                       2030       2029        2028   2027   2026   2025      2024           2023                      2022

 Reduction target                      100%       90%         85%    75%    65%     50%       35%           22%                        13%
 compared to 2019
 baseline study

 Achievement                           In progress                                                    Achieved 24%*         8% or target not yet
                                                                                                      of the target         reached

*Scope 1 and 2 GHG emissions with climate change mitigation initiatives through Renewable Energy Certificate.




Adaptation Action

                                                        2024                         2023                       2022                   2021

 Target      of     debtor           Corporate and Commercial Banking         Corporate and           Corporate and            Corporate Banking
 evaluation using SDD with                                                    Commercial              Commercial
 adjustments to climate                                                       Banking                 Banking
 change aspects

 Achievement                         Full implementation in the corporate     Full implementation in the corporate             Start
                                     banking segment and gradual              banking    segment    and    gradual             implementation
                                     implementation in the commercial         implementation in the commercial
                                     banking     segment        (including    banking segment
                                     expanding the sector scope).
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      Ethical Business
      Bank has Code of Ethics and Code of Conduct Policy No. A.07.01, as a guidance for all CIMB Niaga employees to interact
      professionally and perform their duties with high integrity. The Code of Ethics and Code of Conduct CIMB Niaga can
      be found in the 2023 Annual Report.



      Anti-Fraud                         [GRI 205-1; 205-2; 205-3] [FN-CB-510.a.1]



      The Bank has an anti-fraud policy which is part of the                           detection, investigation and monitoring. The Bank also
      Bank’s internal control system in building a culture of                          submits an Anti-Fraud Strategy Implementation Report
      compliance and creating risk awareness of potential                              to the OJK every semester through the APOLO system
      fraud risks and the consequences that may arise.                                 as regulated in the POJK mentioned above. In order to
      In      accordance          with     Financial      Services      Authority      build an anti-fraud culture or work culture with integrity,
      Regulation          (POJK)        No.039/POJK.03/2019,            regarding      the Bank is consistently committed to implementing
      the       Implementation            of    Anti-Fraud      Strategies       for   the principle of zero tolerance for fraudulent acts and
      Commercial Banks, the Bank has formed a special                                  perpetrators (zero tolerance to fraud) where every
      Anti-Fraud Management (AFM) unit to carry out the                                perpetrator of fraud at CIMB Niaga will be dealt with
      implementation of anti-fraud strategies in banks wide                            firmly, without exception, including criminal prosecution.
      which includes 4 pillars, namely fraud prevention,




             Bank upholds its anti-fraud commitment through various initiatives:
             » Developing Anti-fraud policies based on POJK No. 039/POJK.03/2019 concerning Anti-Fraud Strategies for
                 Commercial Banks.
             » Signing of the Integrity Pact Declaration, Code of Ethics and Code of Conduct, as well as Anti-Bribery and
                 Corruption Commitment by all members of the Board of Directors, Sharia Supervisory Board and Board of
                 Commissioners on 22 May 2023, and published on the CIMB Niaga website.
             » Attestation of Integrity Pact, Code of Ethics and Code of Conduct, as well as Anti-Bribery and Corruption
                 Commitment by all employees via the YODA platform.
             » ‘Tonnes from The Top’ commitment, reflecting the firm stance of CIMB Niaga’s leadership to take strict action
                 against any form of fraud, demonstrating Zero Tolerance to Fraud.
             » Anti-fraud awareness campaigns for through a ‘speak up’ culture, mandatory training, sharing sessions,
                 e-Learning, and internal communications such as email blasts, internal bulletins, and posters.
             » Anti-fraud awareness campaigns for customers through social media (Facebook, Twitter, Instagram),
                 WhatsApp, SMS, electronic letters, account/billing statements, and display screens on e-channels (ATM, CDM,
                 CRM, Octo Mobile, Clicks), as well as IVR Call Center.




      Based on the results of the Anti-Fraud Management (AFM) Unit's evaluation of fraud and corruption prevention,
      throughout 2023 there were eight fraud cases with losses exceeding Rp100 million per case committed by permanent
      employees. One case of fraud was reported to have ended up in the legal realm.
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                             Anti-fraud Awareness Training for Employees [GRI 205-2; 205-3]




         Anti-Fraud Awareness Training through                                            Information Security Awareness
                  Mandatory Training                                                                 Training




       5,071              2,595           3,220                                   1,871                4,363                       -


        2023              2022             2021                                    2023                 2022                    2021




                                                                   Anti-Bribery and Corruption
                                                                   Policy           [GRI 205-1; 205-2] [ACGS C.4.5]


                                                                  Bank’s Anti-Bribery and Corruption Policy No. M.11 firmly
                                                                  asserts that bribery and corruption are forms of fraud.
                                                                  This policy applies to all employees, including the Board
                                                                  of Commissioners, the Sharia Supervisory Board, and
                                                                  members of Independent Committees. Bank conducts an
                                                                  assessment of bribery and corruption risks to anticipate
                                                                  and mitigate the potential impact of such risks proactively.
                                                                  The effectiveness of existing controls in reducing bribery
                                                                  and corruption risks is also evaluated. Each operational
unit, assisted by the Risk Control Unit (RCU) or Designated Compliance and Risk Officer (DCORO), undertakes the risk
assessment process. This involves identifying risks, evaluating mitigating controls, and reviewing the bribery and
corruption risk levels within their respective units annually.



Grievance Mechanism                              [POJK51-F.24] [GRI 2-26] [ACGS (B).C.1.7]



Bank establish and implement whistleblowing system
                                                                            Media for Submitting Violation Reports:
(WBS) in accordance with POJK No. 39/POJK.03/2019
                                                                            Communication channels managed by PT
concerning the Implementation of Anti-Fraud Strategies
                                                                            Deloitte Advis Indonesia:
for Commercial Banks and the Whistleblowing Policy
No. E.08. The WBS management is conducted in                                        https://idn.deloitte-halo.com/ayolapor/
collaboration with a PT Deloitte Advis Indonesia as                                 ayolapor@tipoffs.info
an independent and professional entity. This aims to                                14031
provide protection and maintain the confidentiality of                              +62 822 1135 6363
the whistleblower, allowing all internal and external                               +62 21 2856 5231
                                                                                    Ayo Lapor PO BOX 3331 JKP 10033
parties to reports freely without fear or worry that their
identity will be known.
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      Total Whisteblowing Reports Received and Handled                                                                      [FN-CB-510a.2]




                     Whistleblowing System Performance                                2023               2022               2021

       Reports that are not submitted for investigation (preclosed)                          82                 88                  85

       Reports that have been investigated (closed)                                          146                52                  36

       Reports that are still open                                                           35                 24                  12

       Reports received                                                                      263                164                133

       Percentage of WB reports that have been completely investigated                    83%                 88%                82%
       from total complaints that are valid for investigation (as of the end
       of December)




      The scope of the Whistleblowing Policy covers reports                    address where they can be directly reached. If the
      regarding fraud, money laundering, and code of ethics/                   whistleblower refuses to provide a contact number or
      human resources. Every complaint report received will                    e-mail address, PT Deloitte Advis Indonesia will send
      be reviewed and analyzed by the Whistleblowing Officer                   the whistleblower a request for additional information.
      in line with the basic principle of the whistleblowing                   Whistleblowers who provide their identity will receive
      handling process. If the preliminary information in the                  updates, whether the report is deemed invalid and pre-
      received report is deemed invalid, then the report status                closed, under investigation, or already investigated and
      will be closed. However, if the report is deemed sufficient              proven to be guilty or not proven to be guilty.
      and valid to be further investigated, then the report will
      be forwarded to the investigating officer.
                                                                               In 2023, the whistleblowing service received 263
      If the report provided is irrelevant or out of the                       reports, an increase of 60% compared to 2022.
      Whistleblowing System scope, the Whistleblowing                          Comprehensive information regarding the complaint
      Officer will forward it to the relevant party or unit for                handling mechanism, whistleblowing system, as well
      follow-up action. If additional information is deemed                    as anti-money laundering, prevention of terrorism
      necessary, the Whistleblowing Officer will contact the                   financing, and prevention of proliferation of weapons of
      whistleblower in a confidential manner to request the                    mass destruction (AML, CFT, and PPM), can be found in
      whistleblower’s identity and a contact number/e-mail                     the 2023 Annual Report.
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05
     Pillar
     Advocacy and
     Stakeholder
     Engagement
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      Stakeholder Engagement
      [POJK51-E.4] [ACGS-C.2.1.; C.2.2]



      Stakeholders are defined as internal
      and      external       parties      with     an
      interest in and influence over the
      sustainability of CIMB Niaga and vice
      versa. Bank engages its stakeholders
      by exchanging views and gathering
      feedback          to           enhance      ESG
      performance, ultimately impacting
      economic           performance.             Bank
      identifies stakeholders based on their
      proximity and power, allowing for
      mutual influence and collaboration .




      Identification of Stakeholder
      Needs and Approach                                      [POJK51-E.4] [GRI 2-29] [SUSBA 1.1.1.7; 1.1.1.8; 1.1.1.9] [ACGS (B) C.1.3]



      Approach Taken to Engage Stakeholders in Sustainable Finance Implementation




                              Customers



                    Topic                  Engagement Method and/or Channels                 Frequency of Approach                         Company Response


       1. Banking financial               Call center services, branch offices,            Any time                             1. Enhancing data security and
          transaction security            phone banking, websites, and social                                                      banking transactions
       2. Product and service             media (Facebook, Instagram, and                                                       2. Receiving customer grievances/
          socialization and               Twitter)                                                                                 complaints
          information                                                                                                           3. Identifying customer
       3. Banking facilities and          Customer satisfaction surveys and                Annually by Bank                        satisfaction and required
          ease of access                  internal surveys                                                                         improvement aspects
       4. Settlement of                                                                                                         4. Banking finance education on
          customer complaints                                                                                                      banking products
                                          External assessment of customer                  Annually by each surveyor
          in accordance with the
                                          satisfaction
          Service Level Agreement
          (SLA)
                                          Information from website and                     As needed
                                          frontliners
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                   Shareholders/Investors



                    Topic                        Engagement Method and/or Channels            Frequency of Approach        Company Response


1. Financial and non-financial performance       » Performance reports                       Quarterly                     1. Presenting the
   update, including sustainability issues and   » Analyst meetings                                                           Company’s
   performance                                                                                                                performance
2. Important activities/events, for example      Public expose                               At least once a year          2. Reporting
   CSR activities                                                                                                             year-end
3. Use of company profits                                                                                                     performance
                                                 Reports to the Indonesian Stock             As per IDX regulation
4. Determination of salary or honorarium,                                                                                  3. Implementing
                                                 Exchange (IDX)
   bonuses, and other allowances for                                                                                          GMS decisions
   the Board of Commissioners, Board of
   Directors, and Sharia Supervisory Board       General Meeting of Shareholders             At least once a year
5. Appointment of public accounting firms        (GMS)




                   Regulator



         Topic                 Engagement Method and/or Channels               Frequency of Approach                 Company Response


1. Compliance             Submission of Bank’s Business Plan (RBB) and its    Twice a year                    1. Company’s plans
   with laws and          realization to Central Bank of Indonesia (BI) and                                      and achievements in
   regulations            the Indonesia Financial Services Authority (OJK)                                       accordance with the laws
2. The precautionary                                                                                             and regulations
   principle in           Submission of Bank’s Sustainable Finance Action     Once a year                     2. Reporting the degree of
   banking operations     Plan (RAKB) to OJK                                                                     compliance toward sharia
   and services                                                                                                  principles
   (conventional and
                          Reporting sharia compliance to the National
   sharia)
                          Sharia Board
3. Sustainable Finance
                                                                              As per OJK regulations
                          Other reports in accordance with applicable
                          provisions to regulators




                   Suppliers



                 Topic                   Engagement Method and/or Channels          Frequency of Approach              Company Response


1. Mutually beneficial relationships Policy dissemination and sustainability- At least once a year                   Expanding    cooperation
   with suppliers                     related capacity building                                                      with partners in Bank’s
2. Fair and transparent procurement                                                                                  procurement of goods
   process for goods and services                                                                                    and services
3. Sustainable supply chain practices
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                             Employees



                        Topic                Engagement Method and/or Channels              Frequency of Approach          Company Response

      1. Employee Health and Safety          Internal media (HR Info, e-Manual,        1. Whenever there is            1. OHS implementation
         (OHS)                               Digital Portrait Magazine)                   information that needs       2. Socialization of
      2. Employee Rights                                                                  to be conveyed to               employment policies
                                             Town Hall
      3. Equity, diversity, and career                                                    employees                       and strategies
         development opportunities                                                     2. Whenever policy              3. Application of human
      4. Recruitment process                                                              changes occur                   rights in employment
      5. Company performance updates                                                                                      relations
                                             Employee Engagement Survey (EES)          Twice a year
      6. A valuable and enjoyable working                                                                              4. Identifying employee
         experience                                                                                                       satisfactions and
      7. The value and culture of Bank       Internal Customer Satisfaction (ICS)      Annually                           expectations




                             Local Communities



                     Topic              Engagement Method and/or Channels            Frequency of Approach                Company Response

      1.		 Organizing community         Discussion with beneficiaries             1. Conducted during the         1. Providing solutions to
           empowerment activities                                                    initiation, implementation,     issues that arise
      2.		 Measuring the impact                                                      and supervision of a         2. Conducting field visits
                                        Meetings with the Government,
           of activities on the                                                      program                         to community program
                                        Foundations, or consultants as
           beneficiaries                                                          2. Ad hoc, whenever an             beneficiaries
                                        community development partners
      3.		 Community, including local                                                urgency arises that needs to
           communities, indigenous                                                   be communicated
           people
                                        Feedback on the sustainability report     Annualy                            Refinement of sustainability
                                        issued by Bank                                                               reports according to feedback
                                                                                                                     received




                             Labor Unions



                                                          Engagement
                              Topic                      Method and/or     Frequency of Approach                    Company Response
                                                           Channels

      1. Company employee management policies       Meetings and           1. Any time as needed      1. Accommodating and identifying
      2. Employee-related issues that have been     discussions            2. In 2023, 9                 proposals and inputs from Labor
         conveyed to Labor Unions as employee                                 meetings were              Unions
         representatives                                                      held with Labor         2. Communicating in the event of an
      3. Organizing Company industrial relations                              Unions to discuss          industrial relations dispute
      4. Discussion of the Collective Labor                                   good working            3. Conducting formal and informal
         Agreement (CLA)                                                      relationships              approaches, as well as designing a
      5. Input from Labor Union management on                                                            good cooperation concept between
         management issues involving the rights and                                                      management and Labor Unions, to
         obligations of employees and the Company                                                        foster harmonious industrial relations
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Building a Culture of Sustainability and
Sustainable Finance                                                [POJK51-F.1]




Sustainability Leadership Program                                                 [GRI 2-17, FS4]




The CIMB Sustainability Academy is
designed to assist both Bank and its
customers in transitioning towards a
sustainable future. This academy aims to
facilitate sustainability-related learning
tailored to each employee’s level. In
2023, the CIMB Sustainability Academy
collaborated     with      the    University    of
Cambridge Institute for Sustainability
Leadership (CISL) to organize the CIMB-
CISL Sustainability Leadership Program.


The program, held from January to May
2023, aimed to facilitate learning and
support our efforts and ambitions to be
a leading organization in sustainability
implementation.         The      program       was
tailored to address the specific needs of CIMB Group and targeted members of the Board of Commissioners, Board of
Directors, and senior staff across CIMB Group, including CIMB Niaga. A total of 149 participants from CIMB Niaga took
part in this initiative.




Sharia Sustainability Initiatives
The Syariah Business Unit (SBU) consistently raises                    community. SBU also conducts donation programs
awareness regarding sustainability implementation.                     where employees contribute to support communities in
Employees are actively engaged in various activities and               need.
training sessions, including the adoption of a sustainable
lifestyle and work ethic. This initiative aims to enhance              Furthermore, SBU consistently enhances employees’
employee      awareness          regarding     the   Sustainable       knowledge of sustainability through the Sustainability
Development        Goals      (SDGs),    with    SBU    actively       News Program, delivered via email to every CIMB Niaga
participating in the Employee Volunteer Program. This                  Syariah employee. Each week, various sustainability
program exemplifies CIMB Niaga Syariah’s commitment                    topics are covered, accompanied by quizzes to assess
to creating a positive impact on the surrounding                       awareness and understanding of the presented content.
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                     Sustainable Lifestyle & Work Ethic                                         Webinar Events


            • Conduct 3 Employee Volunteer                                        • Carbon Emission
              Program & Awareness Campaign                                        • Achieving Sustainability
              Collaborate with third party                                          through Social Impact
            • Held sustainability week donation
              program for internal staffs
            • Launched weekly sustainable newsletter for internal
              awareness
            • Sustainability Initiative Webinar about Carbon                           Employee Awareness Program
              Emission & Achieving Sustainability through Social
              Impact
                                                                                  •   Nine Volume of Sustainability News
            • The targeted average of Employee Volunteer
                                                                                  •   Quiz and Reward Program
              Program hours for each employee is 3 hours and
                                                                                  •   Initiate Ideas on Sustainability
              achievement recorded at 4.5 hours
                                                                                  •   Employee Volunteer Program
            • The targeted average hours of sustainability training
                                                                                  •   Sustainability Dashboard
              for each employee is 3 hours. Achievement recorded
                                                                                  •   Sharia Sustainability Week
              at 3.5 hours




                      Dr. Syed Marwan Mujahid bin Syed Azman
                                   Asisten Profesor di
                        Universitas Islam Internasional Malaysia &
                         Institut Perbankan dan Keuangan Islam




      The Sustainability Webinar is one of the sustainability           implementation,      considering    environmental,   social,
      knowledge development activities organized by Bank.               and governance (ESG) aspects in decision-making and
      Through this webinar, CIMB Niaga Syariah employees                measuring the sustainability initiatives undertaken.
      learn about Bank’s role and challenges in sustainability




                            In building a culture of sustainability, the Bank has carried out various
                            initiatives, including integrating sustainability principles into the Charter of the
                            Board of Commissioners and Directors, the Code of Ethics & Code of Conduct,
                            and the Bank’s internal policies. CIMB Niaga also socializes responsibilities
                            via email and employee activities related to sustainability aspects, as well
                            as implementing the Sustainability and Sustainable Finance Policy by
                            implementing SDD in the Bank’s business activities.
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Employee Professional Development                                           [POJK51-E.2; F.22] [GRI 404-1; FS4] [SUSBA 1.4.2.2;

1.4.2.3]


CIMB Niaga is committed to enhancing
the competence and capabilities of its
employees           through         comprehensive
training      initiatives.   In    2023,   alongside
the collaboration with CISL, CIMB Niaga
conducted progressive leadership training
through the CIMB Signature Leadership
Program and Compact Digital Leadership
Program in partnership with renowned
global institutions. To strengthen credit
processes,        sales,     and     service,   Bank
developed the Credit Academy, Sales and
Wealth Academy, as well as the Service
Leadership.


Innovative learning is also pursued through
Virtual Reality Learning. As of 2023, Bank
has developed 21 Virtual Reality (VR) learning modules and sub-modules. These materials have been actively utilized
by over 20,000 participants across 6 VR Corners, 3 VR Hubs, and 325 VR devices strategically positioned in 95 cities
across Indonesia.




Bank actively conducted competence development for the Board of Commissioners and Board of Directors members,
employees, and officials and/or working units responsible for implementing sustainable finance, through offline,
online, and e-learning training, including:

1.   Cambridge Institute for Sustainability Leadership        11. Sustainability Reporting: IFRS S1 & S2 Update
     (CISL)                                                   12. Sustainability Training for Junior & Middle Level
2. Certified Sustainability Reporting Specialist (CSRS)          Employee
3. Diversity, Equality, and Inclusion (D&I) Series 2023       13. The Cooler Earth Sustainability Summit 2023
4. Diversity Equality Inclusion at the work by Momenta        14. Sustainable Finance Training by OJK
5. Diversity Inclusion at the workplace                       15. The Role of Governance, Risk, and Compliance (GRC)
6. Environmental and Social Risk Analysis (ESRA) by              in Supporting Financial Sector Performance
     UNEP FI                                                  16. Webinar : Banking on Sustainability: What Can You
7. From Policy to Field: Sustainability Due Diligence            Do?
8. Inclusive Leadership                                       17. Webinar: Innovation in Emission Sequestration, Now
9. ESG Socialization by PwC                                      for the Future
10. Sustainability Insights Series - Building a Sustainable
     Future – Trends, Developments, and Strategies for
     Green Building Projects
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                                                                                                       1,036,209

                                          2,416,522                                     TOTAL TRAINING
                                                                                        HOURS*
                                                                                                       1,380,313



           TOTAL EMPLOYEES PARTICIPATING IN TRAININGS                                                AVERAGE TRAINING HOURS PER EMPLOYEE


                                  13,616                                                                       177.48
             6,711                                                    6,905                          154.40                           199.90



      *Including employees who have resigned and those who have participated in multiple learning modules




      External Initiatives and Association
      Memberships                                             [POJK51-C.5] [GRI 2-28]




      In 2023, Bank actively participated in and became active member of 14 organizations, with total membership fee
      of Rp1,189 million. Additional information regarding Bank’s roles and involvement in associations is provided in the
      Appendix of Pillar 5 Advocacy and Stakeholder Engagement.




      CIMB Niaga Collaboration with The Employers’ Association of Indonesia (APINDO)
      CIMB Niaga’s Corporate Banking celebrated its inaugural collaboration with the Indonesian Employers’ Association
      (APINDO) during the APINDO Monthly Member’s Gathering in October 2023, where CIMB Niaga introduced the theme of
      “Transitioning Strategy towards Sustainable Business & Economic Outlook.” Mika Martumpal (Economist CIMB Niaga),
      Rizkiasari Yudawinata (Sustainable Finance Lead at WWF Indonesia & Focal Point, Indonesia Sustainable Finance
      Initiative Secretariat), and Lina (Head of Good Corporate Governance & Sustainability CIMB Niaga), shared valuable
      insights on sustainability policies and issues. The event also delved into discussions on the Q4 2023 & 2024 Economic
      Outlook, global targets related to greenhouse gas emissions and climate change, and introduction of Sustainability
      Linked Loans and/or Sustainable Finance.
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Sustainable Finance Advocacy for
Stakeholders                                [GRI FS5] [SUSBA 1.5.1.4]




CIMB Niaga’s Contribution as Organizer and Participant in Sustainable Finance Events

                             Event                                                               Organizer

 The Cooler Earth Sustainability Summit 2023                            CIMB Niaga


 CIMB Niaga’s role in supporting Energy Efficiency and                  Directorate of Energy Conservation, Ministry of Energy and
 Renewable Energy project financing                                     Mineral Resources, Republic of Indonesia


 Transitioning Strategy Towards Sustainable Business &                  The Employers’ Association of Indonesia (APINDO) & CIMB
 Economy Outlook                                                        Niaga


 Kejar Mimpi Actionation 2023 Media Gathering                           CIMB Niaga


 Capitalizing Sustainability Megatrend Opportunities                    National Bank Association (PERBANAS)


 Taxonomy Criteria for Supply Chain Activities Supporting the           Financial Service Authority (OJK)
 Energy Transition

 Indonesian Sustainable Taxonomy (TBI) Public Consultation              Financial Service Authority (OJK)




CIMB Niaga’s Role as Speaker in Sustainable Finance Events

                             Event                                                               Organizer

 Sustainable Finance Sharing Session                                    A national bank


 Sustainability Finance and ESG Initiative Sharing Session              PT Penjaminan Infrastruktur Indonesia (Persero)


 Sharing Session on CIMB Niaga’s Sustainability Practices               A national bank


 Sharing Session on the Industry’s Success Story of                     Financial Service Authority (OJK)
 Implementing a Net Zero Emission Strategy


 Climate Risk Disclosure & Sustainability Initiatives                   A regional development bank


 Financing in Renewable Energy Sector – Opportunity and Risk            Indonesian Banking Development Institute (LPPI) – SESPIBANK
 Management                                                             Program
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      Sustainability Activities
      The Cooler Earth Sustainability Summit 2023


                                                                       Bank hosted The Cooler Earth (TCE) Sustainability
                                                                       Summit 2023 under the theme “Sustainability in
                                                                       Action: Opportunities for a Better Tomorrow in
                                                                       Indonesia,” attracting over 3,900 combined virtual
                                                                       and onsite participants. The event aimed to bring
                                                                       together experts, stakeholders, and the wider
                                                                       community for discussions and exchanges to create
                                                                       a better future. The Deputy Minister of Finance of
                                                                       Indonesia was present as a guest speaker, and the
                                                                       summit was concluded by the Coordinating Minister
                                                                            for Maritime Affairs and Investment of the
                                                                            Republic of Indonesia. TCE Sustainability Summit
                                                                            2023 adopted a hybrid format, coinciding in
                                                                            Malaysia, Indonesia, Singapore, Thailand, and
                                                                           Cambodia from 11 to 21 September 2023. This
                                                                           event demonstrates Bank’s support for the
                                                                           government’s targets in addressing climate
                                                                           change and reducing Greenhouse Gas (GHG)
                                                                           emissions.


                                                                           As part of this year’s initiatives, Bank partnered
                                                                           with Liberty Society to enlighten the public on
                                                                      waste conversion into value-added products. This
                                                                      was achieved through experiential learning activities
                                                                      centered around the theme “Embracing Nature and
                                                                      Sustainable Innovations.” The educational program
                                                                      involved training on waste sorting and transforming
                                                                     organic waste,such as coffee grounds, fruit peels,
                                                                     and used cooking oil, into natural soap. Through
                                                                     this initiative, Bank has made a positive impact on
                                                                     participants, empowering them through the knowledge
                                                                     to transform waste into higher-quality products.
                 The program successfully recycled 2.55 kg of organic waste. At the end of this program, Bank provided
                 participants with tokens of appreciation, including recycled paper notebooks derived from Bank’s activities.
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     Kejar Mimpi Cerita Kita
    Launched in early 2023, the YouTube travel vlog series “Kejar
    Mimpi Cerita Kita” undertakes a meaningful mission to raise
    public awareness of CIMB Niaga’s dedication to sustainability,
    starting with small yet impactful actions. Each episode of
    the “Cerita Kita” series highlights different commitments by
    CIMB Niaga towards the realization of the Sustainable Development Goals (SDGs),
    with a particular focus on the empowerment towards education, the economy, and
    community welfare throughout Indonesia.




                                                                         Sustainability
                                                                         Media Gathering




Kejar Mimpi Actionation
                                                                         The launch of the Sustainability Media
                                                                         Gathering program aims to spotlight
In 2023, for the second time, the Kejar Mimpi Actionation Festival,
                                                                         CIMB Niaga’s endeavors in shaping
initiated by the Kejar Mimpi social movement from CIMB Niaga,
                                                                         sustainable actions for a brighter
returned to Pos Bloc, Jakarta. Themed “Festival Penuh Aksi untuk
                                                                         future. In this program, CIMB Niaga
Kejar Mimpi” (Action-Packed Festival for Pursuing Dreams), this
                                                                         is committed to providing a unique
annual event serves as CIMB Niaga’s tangible support to inspire
                                                                         experience for media partners through
communities to take the bold innovative steps in pursuing their
                                                                         a fashion show featuring local MSMEs
dreams and making positive contributions to Indonesia.
                                                                         affiliated with CIMB Niaga, known for
                                                                         their high environmental awareness.
Throughout the day, Kejar Mimpi Actionation provided a diverse
                                                                         The event welcomed 50 local media
array of captivating activities. These included talk shows and
                                                                         representatives and influencers with
workshops exploring interesting themes, a display of local products
                                                                         a focus on sustainability.
from sustainability-focused MSMEs, exclusive promotions, and a
musical performance by Indonesia’s top bands, RAN and UCUPOP.
In contrast to the previous year, this year’s Kejar Mimpi Actionation
seamlessly integrated with the CIMB Niaga Career Fair, offering
the community a chance to consult and explore various career
prospects within CIMB Niaga.
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      Response to Feedback               [POJK51-G.2; G3]




                                   We extend our sincere appreciation to stakeholders
                                   who shared their feedback through the Feedback
                                   Form on the 2022 Sustainability Report. The insights
                                   and suggestions we received primarily centered on
                                   enhancing information related to our endeavors in
                                   reducing Greenhouse Gas (GHG) emissions and financing
                                   in the Sustainable Business Activity Category (KKUB). In
                                   response to this valuable feedback, Bank has enhanced
                                   details on financing sectors with high ESG risks and
                                   reaffirmed its commitment to reaching net-zero GHG
                                   emissions targets.




                                     We welcome your feedback and suggestions,
                                          which can be conveyed through:

                                                 Sustainability Work Unit
                                       E-mail: sustainability@cimbniaga.co.id
                                   Feedback Form: https://investor.cimbniaga.co.id/
                                              sr_feedback_form.html
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Appendix,
References & Index
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      Appendix
      Organization Scale [POJK51-C.3]

                      Categories                        Units                   2023                       2022                          2021
       Total Employees                                  People                        11,116                  10,936                       11,194

       Net Profit                                    Rp millions                6,551,401                  5,096,771                4,098,604

       Operating Income                              Rp millions               18,785,520                  18,865,721                17,567,517

       Total Loans                                   Rp millions              213,369,870              196,611,014                 181,613,420

       Total Third-Party Funds                       Rp millions              235,861,670             227,188,557                  241,348,510

       Total Capitalization

       Equity                                        Rp millions               49,337,371              45,276,263                  43,388,358

       Payables/Liabilities                          Rp millions              285,031,862             261,478,036                 267,398,602

       Total Assets                                  Rp millions              334,369,233            306,754,299                  310,786,960



       Branch Networks                                  Office                          412                       417                        427

       Number of Products and Services             Product/Service                      175                      195                            194




                      Pillar 1: Sustainable Action


      Employees Based on Employment Status [POJK51-C.3] [GRI 2-7; 2-8]

                                                   2023                                  2022                                   2021
                    Status
                                          Male               Female            Male              Female                 Male              Female

        Permanent Employees                4,811                 5,181          4,700              5,119                4,735               5,231

        Contract Employees                  660                  464             679               438                   742                 486

                                           5,471              5,645             5,379             5,557                 5,477               5,717
        Total
                                                    11,116                              10,936                                  11,194
      Notes: Bank does not have any employees categorized as casual workers
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Employees by Region [GRI 2-7]

                                                      2023                           2022                          2021
               Region
                                           Male                 Female      Male              Female    Male                Female

 Jakarta Region                            3,516                 3,056      3,542               3,186   3,544                 3,241

 Sumatera Region                             473                    563       455                540      482                   566

 West Java Region                           363                     515       272                329      293                   362

 Central Java and DIY Region                325                     510       323                500      354                   536

 East Java, Bali, and Nusa
                                            544                     732      550                 733      569                    741
 Tenggara

 East Indonesia Region                      250                     269       237                269      235                    271

                                           5,471                 5,645      5,379              5,557     5,477                 5,717
 Total
                                                      11,116                         10,936                        11,194
Notes: Bank does not have any employees categorized as casual workers



Management by Gender and Position Level [GRI 2-7; 405-1]

                                              2023                                 2022                           2021
          Position Level
                                    Male                  Female          Male              Female      Male                Female

 Senior Management                  166                        89          156                  82         145                     68

 Middle Management                  896                    634             878                 628        828                     575

 Junior Management                3,524                  3,982            3,416               3,835      3,438                 3,828

 Non-Management                     885                    940             929                1,012      1,066                  1,246

                                   5,471                 5,645            5,379               5,557      5,477                  5,717
 Total
                                             11,116                                 10,936                           11,194



Employees by Working Unit

                                              2023                                 2022                           2021
          Working Unit
                                    Male                  Female          Male              Female      Male                Female

  Business Unit                     3,645                      4,546      3,663               4,581     3,707                 4,738

  Business Enabler                   1,826                     1,099       1,716                976     1,769                   980

                                     5,471                     5,645      5,379               5,557     5,476                 5,718
  Total
                                              11,116                               10,936                         11,194
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      Employees by Age Group [GRI 2-7]

                                               2023                              2022                            2021
                   Age
                                    Male                 Female       Male                Female      Male                    Female

      < 25 years                     230                     295        218                    342     257                      470

      > 25–30 years                 1,096                   1,424     1,095                   1,407    1,169                    1,510

      > 30–35 years                 1,249                   1,263      1,214                  1,222   1,240                    1,238

      > 35–40 years                  1,101                 1,070       1,155                  1,080   1,202                    1,077

      > 40 years                    1,795                  1,593      1,697                   1,506   1,609                    1,422

      Total                                    11,116                            10,936                          11,194



      Employees Based on Education Level [GRI 2-7]

                                               2023                              2022                            2021
            Education Level
                                    Male                 Female       Male                Female      Male                    Female

       Up to High
                                      185                        75    236                      87     302                       129
       School

       Diploma 1                         3                       24       11                     15      13                       19

       Diploma 2                           1                     0           1                   0           1                     2

       Diploma 3                      512                    689        515                    708     507                       776

       Diploma 4                         21                      27       2                     25        3                       10

       Bachelor’s degree            4,315                  4,496       4,172               4,406      4,194                    4,480

       Master’s degree               429                     332       436                     314     450                      300

       Doctoral degree                   5                       2        6                      2        7                         1

       Total                                   11,116                            10,936                          11,194



      Management and Employees by Citizenship of 2023 [GRI 2-7; 405-1]

                 Position Level                  Indonesian                  Non-Indonesian                      Total

       Board of Commissioners                               6                             1                               7

       Board of Directors                                   9                             1                             10

       Senior Management                                 254                              1                         255

       Middle Management                                1,529                             1                       1,530

       Junior Management                                7,506                             0                       7,506

       Non-Management                                   1,825                             0                       1,825

       Total                                            11,129                            4                       11,133
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Employees Based on Nationality

                   Nationality                                 2023                               2022                     2021

 Asian                                                              11,116                        10,936                    11,194

 American Indian or Alaska Native                                       0                              0                          0

 Black or African American                                              0                              0                          0

 Native Hawaiian or Other Pacific Islander                              0                              0                          0

 White                                                                  0                              0                          0

 Hispanic or Latino                                                     0                              0                          0

 Total                                                              11,116                        10,936                    11,194



New Employees Placement Location by Region [GRI 401-1]

                                                   2023                                  2022                       2021
              Region
                                       Male                Female            Male                Female      Male                Female

 Jakarta Region                              325              257              598                   470       296                    194

 Sumatera Region                             129               90                   91                85        40                     34

 West Java Region                            302              234               46                    31        28                     21

 Central Java and DIY Region                  44               55               33                    29            19                28

 East Java, Bali, and Nusa
                                              70               76               85                    76        32                     41
 Tenggara

 East Indonesia Region                        61                51              58                    53            17                 27

                                             931              763               911                  744       432                    345
 Total
                                                   1,694                                  1,655                            777



New Employees by Age Group [GRI 401-1]

                                                   2023                                  2022                            2021
         Age Group/Year
                                       Male                Female            Male                 Female     Male                Female

 < 31 years                              504                  501              533                   476       270                    248

 31–40 years                             386                  225              334                   242        153                    84

 41–50 years                                 39                36               43                    25             9                 12

 > 50 years                                   2                 1                    1                   1           -                    1

                                             931              763               911                  744       432                    345
 Total
                                                   1,694                                 1,655                              777
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      Employee Turnover by Region [GRI 401-1]

                                                          2023                                      2022                                 2021
                     Region
                                             Male                  Female               Male                Female               Male             Female

       Jabodetabek Region                      492                        381              610                   541              471               468

       Sumatera Region                             110                     70                 116                109               85                101

       West Java Region                            56                      52                 72                     60            46                59

       Central Java and DIY Region                 49                      48                 56                     58            58                72

       East Java, Bali,         and   Nusa
                                                    76                     79                 97                     85            85               108
       Tenggara Region

       East Indonesia Region                       46                       51                56                     53            37                56

                                               829                        681            1,007                  906               782               864
       Total
                                                         1,510                                         1,913                               1,646


      Number and Reason for Employees Leaving [GRI 401-1]

                                                          2023                                      2022                                 2021
                    Reasons
                                             Male                   Female              Male                Female               Male             Female
       Normal Retirement                        83                         71              64                    50                51                48
       Early Retirement for Health
                                                   17                      21              20                    33                14                40
       Reasons
       Resigned                               455                         437            656                   608                524               566
       Passed Away                                  6                      4                  6                      1             25                 11
       Others                                 268                         148             261                   214               168               199
                                              829                         681           1,007                  906                782               864
       Total
                                                        1,510                                          1,913                              1,646


      Employees Leaving by Age Group [GRI 401-1]

                                                         2023                                       2022                                 2021
                       Age
                                             Male                  Female               Male                Female               Male             Female
       < 25 years                             23                      46                 64                    86                 45                124
       > 25–30 years                          219                    209                329                    356               254               335
       > 30–35 years                         234                     166                289                    225               186                160
       > 35–40 years                         168                     125                159                    117                131               99
       > 40 years                            185                     135                166                    122               166                146
                                             829                     681                1,007                  906               782               864
       Total
                                                          1,510                                     1.913                                1,646


      New Employees Based on Entry Path [GRI 401-1]

                                             2023                                          2022                                         2021
               Entry Path
                                      Male   Female               Total          Male     Female             Total        Male          Female       Total
      Total through
      Staff Development               118     170                 288            110          102              212        44             92              136
      Programs (PPS)
      Total Marketers &
                                      337     292                 629            359          324              683        105            112             217
      Frontliners
      Others                          476     301                 777            442          318              760        283            141          424
      Total                           931     763                1,694           911          744            1,655        432            345          777
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Employee Turnover Rate [GRI 401-1]

                      Employee Turnover                                          2023                 2022                       2021
Employees Joining                                                                 1,694                1,655                         777
Employees Leaving                                                                 1,510                 1,913                      1,646
Total Employees at the End of the Year                                            11,116              10,936                       11,194
Voluntary Employee Attrition Ratio or Employee Voluntary
                                                                                  8.2%                 11.6%                       9.4%
Turnover



Employee Performance Appraisal - Number of Employees Receiving Promotions [GRI 404-3]

                                                2023                               2022                                   2021
   Assessment Results
                                    Male                 Female          Male              Female             Male                Female
 Promotion                          605                    597           727                883               582                   811
 Total                                          1,202                              1,610                                 1,393
 Percentage                                     11%                                15%                                    12%



Scope 3 GHG Emissions in Financing Portfolio Based on Sector - 2022

                                                   Scope 1 +2                                   Scope 3 (for Oil & Gas sector)
         Sector                Emissions                Intensity    Data Quality    Emissions               Intensity           Data Quality
                            (thousands tCO2e)      (tCO2e/IDR bio)      Score     (thousands tCO2e)      (tCO2e/IDR bio)            Score
Agriculture                      954.57                    33.59         3.99                     -                   -                     -
Cement                           734.83                   302.86         2.55                     -                   -                     -
Coal                              76.60                    32.84         2.40                     -                   -                     -
Iron & Steel                     180.28                    40.90          4.17                    -                   -                     -
Aluminum                           16.72                   32.45         5.00                     -                   -                     -
Oil and Gas                       34.30                     21.25        2.59              189.03                117.10               2.94
Utilities and Power
                                 670.87                   132.88         2.24                     -                   -                     -
Generation
Real Estate                      158.02                      2.64         4.27                    -                   -                     -
Transportation                    163.21                     9.07        3.07                     -                   -                     -



Scope 3 GHG Emissions in Financing Portfolio Based on Asset Class - 2022

                                                   Scope 1 +2                                   Scope 3 (for Oil & Gas sector)
  PCAF Asset Classes           Emissions                Intensity    Data Quality    Emissions               Intensity           Data Quality
                            (thousands tCO2e)      (tCO2e/IDR bio)      Score     (thousands tCO2e)      (tCO2e/IDR bio)            Score
Listed     Equity      &
                                  102.33                   117.34         2.51              13.52               173.67                1.00
Corporate Bonds
Business Loans        and
                                2,676.61                    36.81        3.95               175.51              114.24                3.04
Unlisted Equity
Commercial Real Estate            30.87                     16.80         4.01                    -                   -                     -
Mortgages                          90.71                     2.39        4.00                     -                   -                     -
Motor Vehicle Loans               88.87                     9.65         2.59                     -                   -                     -
Total                          2,989.40                     24.37        3.85              189.03                117.10               2.94
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                      Pillar 2: Sustainable Business

      Lending Based on Economic Sector (Rp millions) [GRI FS6] [SUSBA 1.6.2.1] [FN-CB-410a.1]

                                                                                                                               Growth (%)
                            Sectors                               2023             2022                    2021
                                                                                                                        2023-2022       2022-2021

       Housing                                              38,889,564         38,308,224              36,091,662          1.52                6.14

       Industry                                              38,365,381        37,941,652              32,359,596           1.12              17.25

       Trading, Restaurants, Hotels, and
                                                            32,836,895          30,872,171             29,824,918         6.36                 3.51
       Administration

       Business Services                                    24,252,082           17,186,361            15,853,506          41.11               8.41

       Consumption                                          34,076,602         30,400,259              22,907,903         12.09               32.71

       Agriculture                                           11,980,044          11,185,251            12,950,314           7.11         (13.63)

       Others                                               32,969,302          30,717,096             31,625,521          7.33           (2.87)

       Total                                                213,369,870        196,611,014             181,613,420        8.52                8.26



      Lending Based on Geographical Location (Rp millions) [GRI FS6]

                    Region                           2023                 %               2022               %             2021                  %

       Jakarta                                     153,322,585           73         140,799,448              72          134,227,223             74

       Sumatera                                     14,588,662             7             13,062,339           7           11,590,203              6

       East Java                                    13,556,931            6          12,439,098               6           8,993,574               5

       Central Java                                  7,237,093            3              8,236,355            4           9,016,245               5

       West Java                                     10,417,192           5               9,423,219           5            8,699,111              5

       East Indonesia                                6,794,087            3                6,731,731          3           4,631,506               3

       Others                                        7,453,320            3               5,918,824           3           4,455,558               2

       Total                                       213,369,870           100             196,611,014        100          181,613,420            100



      Gross NPL Ratio per Segment (%)[ [FN-CB-240a.2]

                                     Description                                 2023                         2022                     2021

       Consumer Banking                                                            1.7                         2.0                      2.1

       Emerging Business Banking (EBB)                                            4.6                          5.2                      4.1

       Commercial Banking                                                          4.1                            7.7                  7.2

       Corporate Banking                                                          0.5                          0.7                     2.6

       Total                                                                      2.0                          2.8                     3.5
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Comparison of Production and Performance Targets, Portfolios, Financing or Investment Targets, Income, and
Profit and Loss in 2023 [POJK51-F.2]

                      Description                                   2023 Target                       2023 Realization

Operational and Financial Projections

Net Interest Margin (NIM)                                            4.4%-4.8%                              4.4%

Fee Income Ratio (FIR)                                              25.0%-29.0%                             28.9%

Cost to Income Ratio (CIR)                                          43.0%-46.0%                             44.8%

ROA                                                                  1.6%-1.9%                              2.6%

ROE (Tier 1)                                                        12.0%-14.0%                             15.0%

Credit Growth                                                        6.0%-8.0%                              8.5%

Asset Quality (NPL)                                                  2.7%-3.3%                              1.96%

LLC                                                                230.0%-250.0%                           292.1%

LDR                                                                85.0%-89.0%                              89.3%

Growth in Customer Deposits                                          4.0%-7.0%                              3.8%

CASA Ratio                                                          63.0%-68.0%                             63.9%

CAR                                                                 21.0%-23.0%                             24.0%



Number of Customer in Current Accounts, Savings, and Deposit Accounts (Individuals and MSMEs) 2021-2023
[FN-CB-000.A]


                                                2023                            2022                             2021
        Description
                                Individual             MSME        Individual          MSME         Individual            MSME

 Current Account                      28,412            6,437          27,131           6,308          27,223               5,556

 Savings                        3,667,644                3,011      3,151,004           2,919       3,085,137                11,751

 Deposit                               77,151             394         70,815              378           74,117                509



Total Value of Current Accounts, Savings, and Deposit Accounts (Individuals and MSMEs) 2021-2023
(Rp millions) [FN-CB-000.A]

                                                2023                            2022                             2021
        Description
                                Individual             MSME        Individual          MSME         Individual            MSME

 Current Account                     1,675,613         1,572,208      1,934,443         1,141,359      1,861,470            919,099

 Savings                            73,359,072          775,661      67,707,136        858,580       66,881,527             956,395

 Deposit                            44,132,380          872,412       37,113,109        944,413       36,746,161             730,261
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      Comparison of Realized Economic Performance

       Description                                                   Unit               2023                     2022                    2021

       Total Assets                                                                   334,369,233             306,754,299             310,786,960

       Productive Assets                                                             298,596,808             266,840,098              259,297,573

       Bank Financing                                                                 213,369,870               196,611,014            181,613,420
                                                                     Rp
       Third-party Funds                                                              235,861,670              227,188,557             241,348,510
                                                                     millions
       Operating Income                                                                18,785,520               18,865,721               17,567,517

       Operating Expenses                                                               8,604,706                8,722,538              8,324,007

       Net Profit                                                                        6,551,401               5,096,771              4,098,604

       Performance Ratios

       Minimum Capital Adequacy Ratio
                                                                             %               24.02                    22.19                  22.68
       (MCAR)

       Non-productive Problematic Earning Assets and
       Non-productive Assets to Total Earning Assets and                     %                  1.17                    1.68                    1.90
       Non-productive Assets

       Non-Performing Earning Assets to Total Earning
                                                                             %                  1.14                     1.62                   1.90
       Assets

       Allowance for Impairment for Financial Assets
                                                                             %                  4.14                     5.11                   5.20
       Against Earning Assets

       NPL Gross                                                             %                 1.96                     2.80                    3.46

       NPL Nett                                                              %                  0.71                    0.75                     1.17

       Return on Assets (ROA)                                                %                 2.59                      2.16                   1.82

       Return on Equity (ROE)                                                %                15.02                   12.59                   10.44

       Net Interest Margin (NIM)                                             %                 4.40                     4.69                    4.86

       Efficiency Ratio (BOPO)                                               %                 71.47                    74.10                 78.97

       Loan to Deposit Ratio (LDR)                                           %               89.30                   85.63                    74.35

       Liquidity Coverage Ratio (LCR)
                                                                             %
       a. Individual LCR                                                                    252.67                   231.41                 268.34
       b. Consolidated LCR                                                                  249.58                  230.92                  263.99

      Note: The explanation regarding the economic performance achievement for the implementation of sustainable finance can be found in the Sustainable
      Business Activities Category (KKUB) Financing section in this report
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Economic Value Distribution to Stakeholders (Rp millions) [GRI 201-1]

                                                                                 Reporting Period
                      Description
                                                              2023                      2022                       2021

Direct Economic Value Received

Interest and sharia income                                        22,306,000                 19,114,194                18,862,951

Other operating income                                              3,154,830                2,413,405                  2,266,284

Total economic value received                                     25,460,830                21,527,599                  21,129,235

Economic Value Distributed

Interest and sharia expenses                                        8,953,617               5,638,056                    5,774,091

Other operating expenses
                                                                    9,003,351               8,150,448                   7,995,492
(employment and general & administrative expenses)

Payments to shareholders
                                                                    2,871,842               2,345,686                    1,098,577
(dividend payments)

Payments to the government
                                                                    1,805,871                1,482,561                  1,092,494
(taxes, levies, and others)

Total Economic Value Distributed                                   22,634,681                17,616,751               15,960,654

Economic Value Withheld

Economic Value Retained                                             2,826,149               3,910,848                    5,168,581



Handling of Finance-Related Customer Complaints in 2023

                                                      Completed                     In Progress                     Total
      Type of Financial Transaction
                                              Total                %            Total                %            Complaints

 Bancassurance                                         -          0.00%                 -           0.00%                      -

 Deposit                                              8       100.00%                   -           0.00%                     8

 Direct Debit                                        93       100.00%                   -           0.00%                    93

 Electronic Banking                             29,119        99.95%                15              0.05%               29,134

 ATM/Debit Card/ATM Machine                    12,924         99.59%                53               0.41%              12,977

 Credit Card                                    7,825             93.10%          580               6.90%               8,405

 Remittance                                            -          0.00%                 -           0.00%                      -

 Unsecured Credit                                    137      99.28%                    1            0.72%                 138

 Motor Vehicle Financing                               1      100.00%                   -           0.00%                      1

 Working Capital Financing                             -          0.00%                 -           0.00%                      -

 Home/Apartment Ownership
                                                     38           97.44%                1           2.56%                    39
 Financing

 Other Fundraising                               1,148        100.00%                   -           0.00%                 1,148

 Other Fund                                           2       100.00%                   -           0.00%                     2

 Mutual Fund                                         212      100.00%                   -           0.00%                   212

 Savings                                         942              93.73%            63               6.27%               1,005

 Wealth Management                                   39       100.00%                   -           0.00%                    39

 Trade Finance/Letter of Credit                        -          0.00%                 -           0.00%                      -

 Total                                        52,488          98.66%               713               1.34%             53,201
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                      Pillar 4: Governance and Risk

      Duties and Responsibilities Related to Sustainability of Audit Committee and Nomination and Remuneration
      Committee

       No       Charter Name                                          Description of Duties and Responsibilities

                                     Audit Committee assists Board of Commissioners in reviewing and clarifying financial information, the
                                     selection, appointment, and supervision of the independent auditors, evaluating the effectiveness of
               Audit
        1.                           the internal audit function and internal control mechanism. The Audit Committee also supervises CIMB
               Committee
                                     Niaga’s compliance with prevailing laws and regulations as well as the implementation of sustainability
                                     in the Bank

                                     In the nomination function:
                                     Responsible to provide recommendations for prospective members who meet the requirements as
                                     members of the Board of Commissioners, Sharia Supervisory Board and Board of Directors to the Board
                                     of Commissioners, to be submitted for the General Meeting of the Shareholders’ approval. Consideration
                                     made by the committee in providing recommendations include identifying candidates for their awareness
                                     of the sustainability principles and considering the result of candidate’s Sustainability Due Diligence (if
               Nomination and        any).
        2.     Remuneration          In the remuneration function:
               Committee             Responsible to compile all the structure, policies, and amount of remuneration for the Board of
                                     Commissioners, Sharia Supervisory Board, and Board of Directors to be submitted to the GMS, as well
                                     as providing evaluation results and recommendations to the Board of Commissioners regarding the
                                     remuneration policy for Executive Officers and employees, as well as the Committee of the Board of
                                     Commissioners. One of the considered factors in running the remuneration function is the performance
                                     target of the Bank or Board of Commissioners, Board of Directors, and Committee of the Board of
                                     Commissioners individual performance, including sustainability related performance.



      Number of Fraud Training Participants by Bank Operational Region [GRI 2-24; 205-2]

                                              2023                                   2022                                  2021
             Region                                       Business                               Business                              Business
                               Management     Employees               Management     Employees              Management     Employees
                                                           Partners                              Partners                              Partners

       Jakarta Region                0           1,455          0           0          1,526           0           0         1,093          13

       Sumatera
                                     0            664           0           0             42           0           0            119          1
       Region

       West Java
                                     0            365           0           0                -         0           0              65         3
       Region

       Central Java and
                                     0            635           0           0             53           0           0              86         3
       DIY Region

       East Java Region              0            849           0           0            261           0           0              47         1

       East Indonesia
                                     0            363           0           0             42           0           0              60         1
       Region

       Training in
       modules held                  0           2,611          0           0            671           0           0          1,750         0
       by HR

       Total                                  6,942                                  2,595                                 3,242

      Note: Management includes the Board of Commissioners and Board of Directors
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Fraud Case Settlement [GRI 205-3] [FN-CB-510.a.1]

                                                                                                   Number of Cases
                      Internal Fraud Case
                                                                              2023                         2022                      2021

 Completed                                                                         7                         3                         3

 In Internal Settlement Process at the Bank                                        0                         0                         2

 Not Yet Resolved                                                                  0                         0                         0

 Followed Up Through Legal Process                                                 1                         1                         0

 Total Fraud                                                                       8                         4                         5

Information in the table shows cases with nominal irregularities >Rp 100 million




               Pillar 5: Advocacy and Stakeholder Engagement

Total Training Participants by Position Level and Gender* [GRI 404-1]

                                              2023                                       2022                                 2021
       Description
                                   Male               Female               Male                 Female            Male                Female

 Senior Management                    3,648               2,216                3,100               1,759             2,286                  1,207

 Middle Management                   21,200              16,609              21,058               16,350           12,567                   9,350

 Junior Management                  111,490            135,989              102,739              131,540           62,863               68,486

 Non Management                     30,202              28,800                26,127             35,565              17,222             20,306

 Total                             166,540              183,614             153,024              185,214           94,938               99,349

*Including employees who have resigned and who participated in the learning modules




Number of Training Hours by Position Level in 2023* [GRI 404-1]

             Position Level                      Total Training Hours                  Number of Individuals      Average Hours of Training

 Senior Management                                          21,973                                272                            80.78

 Middle Management                                         114,071                               1,680                           67.90

 Junior Management                                       1,965,312                               9,374                          209.66

 Non-Management                                            315,165                              2,290                            137.63

* Including employees who have resigned
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      Number of Training Hours by Type of Training* [GRI 404-1]

                            Type of Training                              2023                  2022               2021

       Managerial, Leadership & Soft Skills                                       124,867          97,823.94          69,801.75

       Development Program & TCB                                                 1,452,312       1,062,232.00        378,302.00

       Risk, Corporate Assurance & Compliance                                    233,062          176,542.00          138,201.00

       3D (Include IT Upskill & Reskills)                                          53,691         185,595.00          122,738.50

       Sales                                                                       84,531          101,799.38         94,044.90

       Service                                                                    102,201         102,380.00          107,662.30

       Treasury, Finance & Tax                                                      5,769              5,206.02           8,548.50

       Credit                                                                     26,996           36,452.00          19,649.50

       Operations & IT                                                            65,246          249,805.99              68,142.50

       Syariah                                                                     44,521          60,322.90          24,876.56

       Transaction Banking                                                          2,369              1,685.90            1,320.00

       Culture                                                                     15,422              57,783.15      25,665.55

       Purnabakti                                                                     896              1,544.00            2,316.00

       Sustainability Finance                                                      51,288              11,223.50      28,754.50

       Team Building                                                               18,352          19,978.00                920.00

       Others                                                                               -                  -            867.00

       Total                                                                    2,416,522        2,170,373.78       1,091,809.56

      *Including employees who have resigned and who participated in the learning modules




      Number of Participants by Type of Training* [GRI 404-1]

                            Type of Training                              2023                  2022               2021

       Managerial, Leadership & Soft Skills                                        37,878               35,409              18,248

       Development Program & TCB                                                     2,531                1,456                600

       Risk, Corporate Assurance & Compliance                                     98,855                 51,752             45,749

       3D (Include IT Upskill & Reskills)                                          25,347                70,375             21,402

       Sales                                                                       22,492                25,081             20,937

       Service                                                                     35,138               39,350               26,771

       Treasury, Finance & Tax                                                       1,031                 1,391              2,411

       Credit                                                                        3,214                7,082               3,195

       Operations & IT                                                             24,747               53,969              26,664

       Syariah                                                                     13,403                10,896               5,154

       Transaction Banking                                                            332                   495                169

       Culture                                                                    52,853                  27,131             8,388

       Purnabakti                                                                      28                    55                102

       Sustainability Finance                                                      23,129                 4,254              13,708

       Team Building                                                                 9,176                9,542                460

       Others                                                                               -                  -               329

       Total                                                                      350,154              338,238             194,287

      *Includes employees who have resigned and who participated in the learning modules
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Employee Competency Development Costs (Rp millions)

                      Type of Development                                2023                   2022                        2021

 Education Implementation                                                       83,806                   71,713                     77,878

 Domestic External Seminars & Courses                                            2,004                  2,000                         2,001

 Overseas Internal Seminars & Courses                                             1,008                       -                                -

 Corporate Culture                                                                3,951                 3,483                         4,336

 Training Center                                                                 12,654                 12,651                       19,919

 Operational Training                                                            75,451                62,583                       42,455

 Total                                                                          178,875                152,430                     146,589




External Initiatives and Membership Associations [GRI 2-28; FS10] [SUSBA 1.1.2.1; 1.1.2.2]

 No                     Organization Name                        Scope                         Position/Involvement

  1      ACI Financial Markets Association (ACI FMA)         International       Member

         Indonesian Public Listed Companies Association
  2                                                          National            Member
         (AEI)

  3      Indonesian Payment System Association (ASPI)        National            Member

         Banking Compliance Director Communications                              Director of Compliance, Corporate Affairs and Legal
  4                                                          National
         Forum (FKDKP)                                                           as Chairman

                                                                                 Director of Compliance, Corporate Affairs and Legal
  5      Indonesian Corporate Secretary Association (ICSA)   National
                                                                                 as Member

         Indonesia Foreign Exchange Market Committee
  6                                                          National            Treasury & Capital Market Director as Management
         (I-FEMC)

  7      Indonesia Sustainable Finance Initiative (IKBI)     National            Member

         Alternative Agencies for Dispute Resolution                             Director of Compliance, Corporate Affairs and Legal
  8                                                          National
         (LAPS-SJK)                                                              as Head of Supervisory Board

                                                                                 Bank as member and several Directors as
  9      National Private Bank Association (PERBANAS)        National
                                                                                 Management

 10      Indonesian Bankers Association (IBI)                National            Member

         Indonesian Chamber of Commerce and Industry
  11                                                         National            Member
         (KADIN)

         Banking Operations Directors Communication                              Operational & Technology Director as General
  12                                                         National
         Forum (FKDOP)                                                           Treasurer

  13     Indonesian Employers Association (APINDO)           National            Member

  14     Indonesian Credit Card Association (AKKI)           National            Member
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      POJK No. 51/POJK.03/2017 (SEOJK No. 16/
      SEOJK.04/2021), GRI Standards Content Index,
      Sustainability Accounting Standard Board (SASB),
      dan Sustainable Banking Assessment (SUSBA)

      POJK No. 51/POJK.03/2017 (SEOJK No. 16/SEOJK.04/2021)

         No. Index        Index Name                                                                                                    Page Number

      Sustainability Strategy

             A.1          Elaboration on Sustainability Strategy                                                                             7

      Summary of Sustainability Aspect

             B.1          Economic Aspects                                                                                                  12

            B.2           Environmental Aspects                                                                                            12, 15

            B.3           Social Aspects                                                                                                    14

      Company Profile

             C.1          Vision, Mission, and Values of Sustainability                                                                    6, 95

            C.2           Company's Address                                                                                                4, 12

            C.3           Enterprise Scale                                                                                               4, 10, 122

            C.4           Products, Services, and Business Activities                                                                       10

            C.5           Membership in Association                                                                                         116

            C.6           Significant Changes in Issuers and Public Companies                                                                5

      The Board of Directors' Explanation

             D.1          The Board of Directors' Explanation                                                                              16-19

       Sustainability Governance

             E.1          Responsible for Implementing Sustainable Finance                                                                 92-94

            E.2           Competency Development Related to Sustainable Finance                                                           115-116

            E.3           Risk Assessment of the Implementation of Sustainable Finance                                                    96, 104

            E.4           Relations with Stakeholders                                                                                     110-112

            E.5           Problems with the Implementation of Sustainable Finance                                                           75

      Sustainability Performance

             F.1          Sustainable Culture Development Activities                                                                        113

      Economic Performance

                          Comparison of targets to performance of production, portfolio, financing targets, or investments, revenue
            F.2                                                                                                                             129
                          as well as profit and loss

                          Comparison of target to performance of portfolio, financing target, or investments in financial instruments
            F.3                                                                                                                             77
                          or projects in line with the implementation of Sustainable Finance

      Environmental Performance

                          General Aspect

            F.4           Environmental Costs That Incur                                                                                    80

                          Material Aspect

            F.5           Use of Environmentally Friendly Materials                                                                         63
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   No. Index     Index Name                                                                              Page Number

                 Energy Aspect

      F.6        Amount and Intensity of Energy Used                                                          58-61

      F.7        Efforts and Achievements of Energy Efficiency and Use of Renewable Energy                      57

                 Water Aspect

      F.8        Water usage                                                                                    62

                 Aspects of Biodiversity

      F.9        Impacts from Operational Areas Near or in Areas of Biodiversity                              97-99

     F.10        Biodiversity Conservation Efforts                                                              90

                 Emission Aspect

      F.11       Total and Intensity of Emissions Generated by Type                                           58-61

      F.12       Efforts and Achievements of Emission Reduction Made                                            57

                 Waste and Effluent Aspects

      F.13       Amount of Waste and Effluent Generated by Type                                                 62

      F.14       Waste and Effluent Management Mechanism                                                        62

     F.15        Occurring Spills (if any)                                                                      62

                 Complaint Aspects related to the Environment

     F.16        Number and Material of Environmental Complaints Received and Resolved                          78

Social Performance

      F.17       Commitment to Provide Services on Equal Products and/or Services to Consumers                  66

                 Employment Aspect

     F.18        Equal Employment Opportunity                                                                 52-53

     F.19        Child Labor and Forced Labor                                                                 52-53

     F.20        Regional Minimum Wage                                                                          50

     F.21        Decent and Safe Work Environment                                                             51-57

     F.22        Employee Capability Training and Development                                                 115-116

                 Community Aspect

     F.23        Impact of Operations on Surrounding Communities                                            71, 97-99

     F.24        Community Complaints                                                                          107

     F.25        Corporate Social Responsibility (CSR)                                                        80-90

Responsibility for Sustainable Product/Service Development

     F.26        Innovation and Development of Sustainable Financial Products/Services                        67-70

     F.27        Products/Services That Have Been Evaluated for Safety for Customers                            66

     F.28        Product/Service Impact                                                                       66-71

     F.29        Number of Product Recalls                                                                      66

     F.30        Customer Satisfaction Survey on Sustainable Financial Products and/or Services                 78

Others

         G.1     Written Verification from Independent Party (if any)                                        148-152

      G.2        Feedback Sheet                                                                                120

      G.3        Responses to Feedback on the Previous Year's Sustainability Report                            150
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      GRI Standard Content Index

                                       PT CIMB Niaga Tbk has reported the information cited in this GRI content index for the period January 1 to December
      Statement of use
                                       31, 2023 with reference to the GRI Standards.

      GRI 1 used                       GRI 1: Foundation 2021

                                                                                                                             Omission

         GRI Standard                               Disclosure                              Page                                                 No. GRI
                                                                                                        Requirement(s)
                                                                                                                         Reason   Explanation    Sector
                                                                                                           omitted
                                                                                                                                                Standard

      GRI 1: Foundation 2021

      General Disclosures

                              2-1    Organizational details                                   4

                                     Entities     included   in   the   organization’s
                              2-2                                                            35
                                     sustainability reporting

                                     Reporting period, frequency and contact
                              2-3                                                           4, 35
                                     point

                              2-4    Restatements of information                             35

                              2-5    External assurance                                  35, 148-152

                                     Activities, value chain and other business           4-5, 10-11,
                              2-6
                                     relationships                                           64

                              2-7    Employees                                             122-124

                              2-8    Workers who are not employees                           122

                              2-9    Governance structure and composition                  92-94

                                     Nomination and selection of the highest
                              2-10                                                           94
                                     governance body

                              2-11   Chair of the highest governance body                    93

                                     Role of the highest governance body in
                              2-12                                                         93-95
                                     overseeing the management of impacts

                                     Delegation of responsibility for managing
      GRI 2: General          2-13                                                         93-95
                                     impacts
      Disclosures 2021
                                     Role of the highest governance body in
                              2-14                                                         93-94
                                     sustainability reporting

                              2-15   Conflicts of interest                                   94

                              2-16   Communication of critical concerns                      103

                                     Collective     knowledge      of   the   highest
                              2-17                                                         94, 113
                                     governance body

                                     Evaluation of the performance of the
                              2-18                                                           94
                                     highest governance body

                              2-19   Remuneration policies                                 93-94

                              2-20   Process to determine remuneration                       94

                              2-21   Annual total compensation ratio                         50

                                     Statement on sustainable development
                              2-22                                                          16-19
                                     strategy

                              2-23   Policy commitments                                    101-102

                              2-24   Embedding policy commitments                        101-102; 132

                              2-25   Processes to remediate negative impacts                 78

                                     Mechanisms for seeking advice and raising
                              2-26                                                           107
                                     concerns
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                                                                                                                     Omission

    GRI Standard                             Disclosure                             Page                                                    No. GRI
                                                                                                Requirement(s)
                                                                                                                 Reason   Explanation       Sector
                                                                                                   omitted
                                                                                                                                           Standard

                      2-27    Compliance with laws and regulations                   66

GRI 2: General        2-28    Membership associations                              116, 135

Disclosures 2021      2-29    Approach to stakeholder engagement                   110-112

                      2-30    Collective bargaining agreements                     52-53

                      3-1     Process to determine material topics                   36
GRI 3: Material
                      3-2     List of material topics                                36
Topic 2021
                      3-3     Management of material topics                         37-48

                              Direct   economic      value     generated   and
                      201-1                                                          131
                              distributed

GRI 201:                      Financial implications and other risks and           28-34,
                      201-2
Economic                      opportunities due to climate change                  97-101

Performance 2016              Defined benefit plan obligations and other
                      201-3                                                        54-55
                              retirement plans

                      201-4   Financial assistance from government                   35

GRI 203: Indirect             Infrastructure investments and services
                      203-1                                                          85
Economic Impacts              supported

2016                  203-2   Significant indirect economic impacts                   71

                              Operations assessed for risks related to
                      205-1                                                        106-107
                              corruption

GRI 205:                      Communication and training about anti-
                      205-2                                                      106-107, 132
Anticorruption 2016           corruption policies and procedures

                              Confirmed incidents of corruption and
                      205-3                                                      106-107, 133
                              actions taken

GRI 206: Anti-
                              Legal actions for anti-competitive behaviour,
competitive           206-1                                                          66
                              anti-trust, and monopoly practices
Behaviour 2016

                      302-1   Energy consumption within the organization             61

                              Energy         consumption        outside    the
GRI 302: Energy       302-2                                                          61
                              organization
2016
                      302-3   Energy intensity                                       61

                      302-4   Reduction of energy consumption                        61

GRI 303: Water and    303-1   Interactions with water as a shared resource           62

Effluents 2018        303-5   Water consumption                                      62

                              Operational sites owned, leased, managed
                      304-1   by, or adjacent to, protected areas or not, but      97-99
                              that are high in biodiversity value

GRI 304:                      Significant impacts of activities, products
                      304-2                                                        97-99
Biodiversity 2016             and services on biodiversity

                              IUCN     Red    List   species    and   national
                      304-4   conservation list species with affected by           97-99
                              operations
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                                                                                                                         Omission

         GRI Standard                              Disclosure                             Page                                               No. GRI
                                                                                                    Requirement(s)
                                                                                                                     Reason   Explanation    Sector
                                                                                                       omitted
                                                                                                                                            Standard

                              305-1    Direct (Scope 1) GHG emissions                    58-60

                              305-2    Energy indirect (Scope 2) GHG emissions           58-60

                              305-3    Other indirect (Scope 3) GHG emissions            58-60
      GRI 305: Emissions
                              305-4    GHG emissions intensity                           58-60
      2016
                              305-5    Reduction of GHG emissions                       15, 58-60

                                       Nitrogen oxides (NOx), sulfur oxides (SOx),
                              305-7                                                      58-60
                                       and other significant air emissions

                                       Waste generation and significant waste-
                              306-1                                                        62
                                       related impacts
      GRI 306: Waste
      2020                    306-3    Waste generated                                     62

                              306-4    Waste diverted from disposal                        62

      GRI 308: Supplier       308-1    New suppliers using environmental criteria          64

      Environmental                    Negative environmental impacts in the
                              308-2                                                        64
      Assessment 2016                  supply chain and actions taken

                              401-1    New employee hires and employee turnover         125-127

                                       Benefits provided to full-time employees
      GRI 401:
                              401-2    that are not provided to temporary or part        54-55
      Employment 2016
                                       time employees

                              401-3    Parental leave                                    52-53

                                       Occupational health and safety management
                              403-1                                                      56-57
                                       system

                                       Hazard identification, risk assessment, and
                              403-2                                                      56-58
                                       incident investigation

                              403-3    Occupational health services                      56-59

                                       Worker    participation,   consultation,   and
                              403-4    communication on occupational health and          56-60
                                       safety
      GRI 403:
      Occupational                     Worker training on occupational health and
                              403-5                                                      56-61
      Health and Safety                safety

      2018                    403-6    Promotion of worker health                        56-62

                                       Prevention and mitigation of occupational
                              403-7    health and safety impacts linked by business      56-63
                                       relationships

                                       Workers covered by an occupational health
                              403-8                                                      56-64
                                       and safety management system

                              403-9    Work-related injuries                             56-65

                              403-10   Work-related ill health                           56-66
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                                                                                                                   Omission

    GRI Standard                          Disclosure                               Page                                                   No. GRI
                                                                                              Requirement(s)
                                                                                                               Reason   Explanation       Sector
                                                                                                 omitted
                                                                                                                                         Standard

                     404-1   Average hours of training per year per 115-116, 133-
                             employee                                               134

                     404-2   Programs for upgrading employee skills and
GRI 404: Training                                                                  54-55
                             transition assistance programs
and Education 2016
                     404-3   Percentage of employees receiving regular
                             performance       and    career      development    52-53, 127
                             reviews

                             Diversity    of    governance        bodies   and
GRI 405: Diversity   405-1                                                        123-124
                             employees
and Equal
                             Ratio of basic salary and remuneration of
Opportunity 2016     405-2                                                          50
                             women to men

GRI 410: Security            Human rights policy or procedure training
                     410-1                                                         52-53
Practices 201                for security officers

                             Operations        with       local    community
GRI 413: Local
                     413-1   engagement,       impact     assessments,     and    80-90
Communities 2016
                             development programs

GRI 414: Supplier    414-1   Social criteria for new supplier screening             64

Social Assessment            Negative social impacts in the supply chain
                     414-2                                                          64
2016                         and actions taken

                             Assessment of the health and safety
                     416-1                                                          66
GRI 416: Customer            impacts of product and service

Health and Safety            Incidents of non-compliance concerning the
2016                 416-2   health and safety impacts of products and              66
                             services

                             Requirements for product and service
                     417-1                                                          66
                             information and labeling

                             Incidents of non-compliance concerning
GRI 417: Marketing
                     417-2   product     and    service     information    and      66
and Labeling 2016
                             labeling

                             Incidents of non-compliance concerning
                     417-3                                                          66
                             marketing communications

GRI 418: Customer            Customer complaints related to customer
                     418-1                                                          66
Privacy 2016                 privacy and loss of customer data
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      GRI G4 Financial Service Sector Supplement

             GRI G4
                                                                                                                                                        Page
        Financial Service                                                          Disclosure
                                                                                                                                                      Number
       Sector Supplement

               FS1             Policies with specific environmental and social components applied to business lines                                   101-102

              FS2              Procedures for assessing and screening environmental and social risks in business lines                                  103

                               Processes for monitoring clients’ implementation of and compliance with environmental and social
              FS3                                                                                                                                       103
                               requirements included in agreements or transactions

                               Process(es) for improving staff competency to implement the environmental and social policies and procedures
              FS4                                                                                                                                    113, 115-116
                               as applied to business lines

              FS5              Interactions with clients/ investees/business partners regarding environmental and social risks and opportunities         117

              FS6              Percentage of the portfolio for business lines by specific region, size (e.g. micro/sme/large) and by sector            5, 128

                               Monetary value of products and services designed to deliver a specific social benefit for each business line
              FS7                                                                                                                                        68
                               broken down by purpose

                               Monetary value of products and services designed to deliver a specific environmental benefit for each business
              FS8                                                                                                                                      74, 77
                               line broken down by purpose

                               Coverage and frequency of audits to assess implementation of environmental and social policies and risk
              FS9                                                                                                                                        72
                               assessment procedures

                               Percentage and number of companies held in the institution’s portfolio with which the reporting organization
              FS10                                                                                                                                    103, 135
                               has interacted on environmental or social issues

              FS11             Percentage of assets subject to positive and negative environmental or social screening                                   73

                               Voting policy(ies) applied to environmental or social issues for shares over which the reporting organization
              FS12                                                                                                                                       103
                               holds the right to vote shares or advises on voting

              FS13             Access points in low-populated or economically disadvantaged areas by type                                               10-11

              FS14             Initiatives to improve access to financial services for disadvantaged people                                              68

              FS15             Policies for the fair design and sale of financial products and services                                                  66

              FS16             Initiatives to enhance financial literacy by type of beneficiary                                                        82-84




      Sustainability Accounting Standard Board (SASB) – Financial Sector

            Code                                                                 Disclosure                                                        Page Number

      FN-CB-000.A           (1) Number and (2) value of checking and savings accounts by segment: (a) personal and (b) small business                  129

      FN-CB-000.B           (1) Number and (2) value of loans by segment: (a) personal and (b) small business                                           5

      Data Security

                            (1) Number of data breaches, (2) percentage involving personally identifiable information (PII), (3) number of
      FN-CB-230.a.1                                                                                                                                    66
                            account holders affected

      FN-CB-230.a.2         Description of approach to identifying and addressing data security risks                                                  66

      Financial Inclusion & Capacity Building

                            (1) Number and (2) amount of past due and nonaccrual loans qualified to programs designed to promote small
      FN-CB-240.a.1                                                                                                                                     13
                            business and community development

                            (1) Number and (2) amount of past due and nonaccrual loans qualified to programs designed to promote small
      FN-CB-240.a.2                                                                                                                                     5
                            business and community development

      FN-CB-240.a.3         Number of no-cost retail checking accounts provided to previously unbanked or underbanked customers                       82-84

      FN-CB-240.a.4         Number of participants in financial literacy initiatives for unbanked, underbanked, or underserved customers              82-84
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           Code                                                            Disclosure                                                        Page Number

Incorporation of Environmental, Social, and Governance Factors in Credit Analysis

FN-CB-410.a.1          Commercial and industrial credit exposure, by industry                                                                      128

FN-CB-410.a.2          Description of approach to incorporation of environmental, social, and governance (ESG) factors in credit analysis         75-77

Business Ethics

                       Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-
FN-CB-510.a.1          trust, anti-competitive behavior, market manipulation, malpractice, or other related financial industry laws or        66, 106, 133
                       regulations

FN-CB-510.a.2          Description of whistleblower policies and procedures                                                                        108

Systemic Risk Management

FN-CB-550.a.1          Global Systemically Important Bank (G-SIB) score, by category                                                               35

                       Description of approach to incorporation of environmental, social, and governance (ESG) factors in credit analysis
FN-CB-550.a.2                                                                                                                                 29-34, 75-77
                       into capital adequacy planning, long-term corporate strategy, and other business activities




Sustainable Banking Assessment (SUSBA)

                                                                 Disclosure                                                                  Page Number

1) Purpose - Sustainability Strategy and Stakeholder Engagement

1.1.1.1      Is there a clear reference to sustainability in the bank's strategy and long-term vision?                                            6, 95

1.1.1.2      Does the bank clearly recognise that its ESG footprint extends to its business activities and portfolio?                             75-77

1.1.1.3      Does the leadership statement make reference to the integration of ESG factors in the bank’s business strategy?                      16-19

1.1.1.4      Is there a clear reference to sustainable development goals (SDGs) in the bank's strategy or vision?                                24-29

1.1.1.5      Does the bank explicitly acknowledge the societal and economic risks associated with climate change?                                97-101

1.1.1.6      Does the bank explicitly acknowledge the societal and economic risks associated with environmental degradation?                     97-99

1.1.1.7      Does the bank disclose the types of stakeholders it engages with on ESG issues?                                                     110-112

             Does the bank engage with civil society and/or non-governmental organisations to understand the ESG impacts of its
1.1.1.8                                                                                                                                          110-112
             business activities?

1.1.1.9      Does the bank disclose the frequency and mode of communication with stakeholders?                                                   110-112

1.1.1.10     Has the bank identified responsible financing/lending and/or other key E&S issues as material                                       97-99

2) Purpose - Participation in Sustainable Finance Initiatives

             Does the bank participate in relevant commitment-based sustainable finance initiatives such as RSPO, PRB, EP, SBTi, or
1.1.2.1                                                                                                                                       100-101, 135
             SBEFP?

1.1.2.2      Does the bank engage with regulators and policy makers on ESG integration and/or sustainable finance topics?                      93-94, 135

3) Policies - Public Statements on Specific ESG Issues

             Does the bank have exclusionary principles covering activities the bank will not support, taking into account ESG
1.2.1.1                                                                                                                                        97-99, 103
             considerations?

             Does the bank require clients highly exposed to climate-related risks to develop a mitigation plan and ultimately align their
1.2.1.2                                                                                                                                            103
             activities to the objectives of the Paris Agreement?

1.2.1.3      Does the bank prohibit the financing of new coal-fired power plant projects?                                                          77

1.2.1.4      Does the bank acknowledge biodiversity loss and/or deforestation risks in its clients' activities?                                 77, 97-99

             Does the bank require clients in sectors highly exposed to deforestation (e.g. soft commodities, infrastructure, extractives
1.2.1.5                                                                                                                                            77
             industry) to adopt "no deforestation" commitments?

1.2.1.6      Does the bank recognise negative impacts on the marine environment as risks in client's activities?                                 97-99

             Does the bank have a commitment not to provide financial products and services to projects or companies located in, or
1.2.1.7                                                                                                                                        97-99, 103
             having negative impacts on, UNESCO World Heritage Sites?
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        2023 Sustainability Report
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                                                                      Disclosure                                                                 Page Number

      1.2.1.8    Does the bank recognize water risks (flooding, scarcity, and pollution) as risks in its clients' activities?                       97-101

      1.2.1.10   Does the bank recognize human rights risks, including those related to local communities, in its clients’ activities?           64, 97-99, 103

                 Does the bank require clients to commit to respecting human rights, in line with the UN Guiding Principles on Business
      1.2.1.11                                                                                                                                     64, 97-99
                 and Human Rights?

      1.2.1.12   Does the bank recognize labour rights violations as a risk across all sectors?                                                     97-104

      1.2.1.13   Does the bank require clients to adhere to international labour standards as outlined by the ILO Fundamental Conventions?          101-104

                 Are the bank’s E&S requirements applicable to financial products and services beyond lending (i.e. capital markets,
      1.2.1.14                                                                                                                                      101-104
                 advisory)?

      4) Policies - Public Statement on Specific Sectors

                 Does the bank have sector policies or sector-specific requirements for environmentally or socially sensitive industries, e.g.
      1.2.2.1                                                                                                                                       101-104
                 agri commodities, energy, oil & gas, mining, seafood, infrastructure?

      1.2.2.2    Does the bank disclose its requirements/policies for environmentally or socially sensitive sectors?                                97-104

                 Do the bank's E&S policies include minimum requirements or recommendations based on internationally recognized
      1.2.2.3                                                                                                                                     97-99, 103
                 standards for best E&S practices (e.g. IFC Performance Standards, RSPO, FSC, etc.)?

      1.2.2.4    Does the bank periodically review its E&S policies or stated that last date of review was within the past 2 years?                 101-104

      5) Processes - Assessing ESG Risks in Client & Transaction Approvals

                 Does the bank use standardized frameworks for E&S due diligence (e.g. tools, checklists, questionnaires, external data
      1.3.1.1                                                                                                                                         103
                 providers) when reviewing clients or transactions subject to its policies?

      1.3.1.2    Does the bank assess its clients’ capacity, commitment, and track record as part of its E&S due diligence process?                   103

      1.3.1.3    As part of the approval process, does the bank classify its clients and transactions based on E&S risk assessment?                  72-74

      1.3.1.4    Is there an escalation mechanism for more complex or controversial cases?                                                            103

      1.3.1.5    Do the E&S risk assessment outcomes influence transaction and client acceptance decisions?                                           103

      6) Processes - Client Monitoring and Engagement

                 Does the bank seek the inclusion of clauses (e.g. covenants, representations & warranties) related to E&S issues in the loan
      1.3.2.1                                                                                                                                         103
                 documentation for bilateral and syndicated credit facilities?

                 Does the bank require clients that are not fully compliant with its E&S policies to develop and implement time-bound
      1.3.2.2                                                                                                                                         103
                 action plans?

      1.3.2.3    Does the bank monitor its client’s compliance with the agreed E&S action plan?                                                       103

      1.3.2.4    Does the bank perform periodic review or state how frequent it reviews its clients' profiles on E&S?                                 103

                 Does the bank disclose the process to address non-compliance of existing clients with the bank's policies or with pre-
      1.3.2.5                                                                                                                                         103
                 agreed E&S action plans?

                 Does the bank periodically review its internal E&S procedures or stated that the last date of review was within the past 2
      1.3.2.6                                                                                                                                       101-104
                 years?

      7) People - Responsibilities for ESG

      1.4.1.1    Is senior management responsible for the implementation of the bank’s ESG strategy?                                                93-95

                 Do senior management's responsibilities include management of climate change risks and opportunities relevant to the
      1.4.1.2                                                                                                                                       93-95
                 bank's activities?

                 Does the bank describe the roles and responsibilities of the various departments, committees or teams involved in
      1.4.1.3                                                                                                                                       93-95
                 developing and implementing its E&S policies?

      1.4.1.4    Has the bank put in place an internal control system with three lines of defence to manage E&S issues?                               104
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                                                                Disclosure                                                                   Page Number

           Do the terms of reference of the Nominating committee include sustainability-related criteria for the appointment of new
1.4.1.5                                                                                                                                            94
           Board members?

           Do the terms of reference of the Remuneration committee include sustainability-related criteria for the assessment of
1.4.1.6                                                                                                                                          93-95
           performance and remuneration levels for senior management?

           Do the terms of reference of the Audit committee require sustainability-related matters to be included in internal control
1.4.1.7                                                                                                                                          93-95
           and audit processes?

1.4.1.8    Does the bank implement periodic audits to assess implementation of E&S policies and procedures?                                        104

8) People - Staff E&S Training and Performance Evaluation

1.4.2.1    Does the bank have a dedicated ESG team to implement E&S policies and procedures?                                                     94-95

1.4.2.2    Does the bank train its staff on E&S policies and implementation processes?                                                           115-116

1.4.2.3    Does the bank provide specific training for its senior management, covering sustainability issues?                                    115-116

1.4.2.4    Are sustainability-related criteria part of the staff appraisal process and/or integrated into KPIs for its staff?                      51

9) Products - ESG Integration in Products and Services

           Does the bank proactively identify clients in environmentally or socially sensitive sectors to support them in reducing
1.5.1.1                                                                                                                                          97-99
           negative or enhancing positive impacts?

           Does the bank offer specific financial products and services (e.g. green bonds, sustainability-linked loans, impact financing)
1.5.1.2                                                                                                                                          67-69
           that support the mitigation of E&S issues, e.g. climate change, water scarcity and pollution, deforestation?

           Does the bank allocate specific pools of capital or set targets to increase the share of its financing that supports activities
1.5.1.3                                                                                                                                            77
           with a positive environmental or social impact?

           Does the bank hold client outreach events to raise awareness and share on good E&S practices (e.g. through joint
1.5.1.4                                                                                                                                            117
           workshops)?

10) Products - ESG Integration in Products and Services

           Does the bank periodically review its portfolio exposure to E&S risks (e.g. deforestation, water scarcity, or human rights
1.6.1.1                                                                                                                                        97-99, 103
           violations)?

           Does the bank periodically review its portfolio exposure to climate-related physical and/or transition risks, using scenario
1.6.1.2                                                                                                                                       95, 100-101
           analysis, and disclose the results and methodology used?

1.6.1.3    Does the bank have a strategy to manage and mitigate climate-related risks across its portfolio (e.g. energy sector)?                 97-99

11) Portfolio - Disclosure of ESG Risk Exposure and Targets

1.6.2.1    Does the bank disclose its credit exposure by industry sector?                                                                          128

           Does the bank disclose statistics on the implementation of its E&S policies (e.g. number of transactions assessed, escalated,
1.6.2.4                                                                                                                                            103
           approved, declined, approved with conditions)?

           Does the bank disclose the percentage of its soft commodities clients that have time-bound plans to achieve full
1.6.2.5                                                                                                                                            103
           certification of their operations against credible, multi-stakeholder sustainability standards?

1.6.2.6    Does the bank disclose the percentage of clients or total credit exposure covered by its E&S policies on sensitive sectors?            75-77

1.6.2.7    Does the bank have targets in place to reduce the negative E&S impacts associated with its business activities?                   24-29, 37-48

1.6.2.8    Does the bank set or commit to set science-based targets to align its portfolio with the objectives of the Paris Agreement?        100-101, 103

1.6.2.9    Does the bank conduct external assurance of its ESG-related disclosures?                                                                35

           Does the bank disclose the positive and negative impacts associated with its business activities [based on widely-accepted
1.6.2.10                                                                                                                                         81-90
           impact reporting frameworks?]
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      Asean Corporate Governance Scorecard (ACGS)


      Sustainability and Resilience

       Indicator                                                            Disclosure                                                                 Page

                      Sustainability-related disclosure should be consistent, comparable and reliable, and include retrospective and forward-
           C.1        looking material information that a reasonable investor would consider important in making an investment or voting
                      decision

      Material Sustainability-related information should be specified

                      Does the company identify/report ESG topics that are material to the
          C.1.1                                                                                                                                        37-48
                      organization’s strategy?

          C.1.2       Does the company identify climate change as an issue?                                                                            37-48

                      Does the company adopt an internationally recognized reporting framework or standard for sustainability (i.e. GRI,
          C.1.3                                                                                                                                          36
                      Integrated Reporting, SASB, IFRS Sustainability Disclosure Standards)?

      If a company publicly sets a sustainability-related goal or target, the disclosure framework should provide that reliable metrics are regularly disclosed
      in an easily accessible form

                                                                                                                                                  58-61,77, 81,
          C.1.4       Does the company disclose quantitative sustainability target?
                                                                                                                                                        105

                                                                                                                                                  58-61,77, 81,
          C.1.5       Does the company disclose sustainability-related performance progress in relation to its previously set targets?
                                                                                                                                                        105

                      Does the company confirm that its Sustainability Report / Reporting is reviewed and /or approved by the Board or
          C.1.6                                                                                                                                        93, 95
                      Board Committee?

                      Corporate governance frameworks should allow for dialogue between a company, its shareholders and stakeholders
           C.2
                      to exchange views on sustainability matters

                      Does the company engage internal stakeholders to exchange views and gather feedback on sustainability matters that           37-48, 110-
          C.2.1
                      are material to the business of the company?                                                                                      112

                      Does the company engage external stakeholders to exchange views and gather feedback on sustainability matters that
          C.2.2                                                                                                                                        110-112
                      are material to the business of the company?

      C.3 The corporate governance framework should ensure that boards adequately consider material sustainability risks and
          opportunities when fulfilling their key functions in reviewing, monitoring and guiding governance practices, disclosure, strategy,
          risk management and internal control systems, including with respect to climate-related physical and transition risks

      Boards should assess whether the company’s capital structure is compatible with its strategic goals and its associated risk appetite to
      ensure it is resilient to different scenarios

                      Does the company disclose that the board reviews on an annual basis that the company’s capital and debt structure is
          C.3.1                                                                                                                                   94
                      compatible with its strategic goals and its associated risk appetite?

      C.4 The corporate governance framework should recognise the rights of stakeholders established by law or through mutual agreements and
          encourage active co- operation between corporations and stakeholders in creating wealth, jobs, and the sustainability of financially sound
          enterprises.

      Does the company disclose a policy and practices that address :

          C.4.1       The existence and scope of the company's efforts to address customers' welfare?                                                    71

          C.4.2       Supplier/contractor selection procedures?                                                                                          64
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 Indicator                                                        Disclosure                                                              Page

             The company's efforts to ensure that its value chain is environmentally friendly or is consistent with promoting
     C.4.3                                                                                                                                  64
             sustainable development?

     C.4.4   The company's efforts to interact with the communities in which they operate?                                                80-90

     C.4.5   The company's anti-corruption programmes and procedures?                                                                       107

             Does the company have a separate report/section that discusses its efforts on environment/economy and social
     C.4.7                                                                                                                                29-34
             issues?

C.6 Mechanisms for employee participation should be permitted to develop

     C.6.1   Does the company explicitly disclose the policies and practices on health, safety and welfare for its employees?             51-55

Level 2 Bonus
(B) C        Sustainability and Ressilence

(B) C .1.1   Does the company disclose how it manages climate-related risks and opportunities?                                            29-34

(B) C .1.2   Does the company disclose that its Sustainability Report / Sustainability Reporting is externally assured?                     35

             Does the company disclose the engagement channel with stakeholder groups and how the company responds to
(B) C .1.3                                                                                                                                110-112
             stakeholders’ ESG concerns?

             Does the company have a unit / division / committee who is specifically responsible to manage the sustainability
(B) C .1.4                                                                                                                                  92
             matters?

             Does the company disclose board of directors/commissioners' oversight of sustainability-related risks and
(B) C .1.5                                                                                                                                93-95
             opportunities?

             Does the company disclose the linkage between executive directors and senior management remuneration and
(B) C .1.6                                                                                                                                51-53
             sustainability performance for the previous year?

(B) C .1.7   Is the company’s Whistle Blowing System managed by independent parties / institutions?                                         107
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      Independent Party Verification   [POJK51-G.1] [GRI 2-5]
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 PT Bank CIMB Niaga Tbk      149
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            A Minimalist, Efficient, and
            Environmental Friendly
            Report Design Approach


            We try to present a report that not only considers effective communication to
            readers, but also considers various things, such as the choice of typeface and
            design style. Environmentally friendly typeface can optimize pages usage when
            conveying information, but also provide aesthetically look and ease of reading.
            In addition, through a simple design and concise information will reduce number
            of pages. Therefore, reducing the carbon footprint.




                         Simple
                         Not using complicated
                         terminology



                         Congested
                         Full of information



                         Short
                         Not wordy



                         Straightforward
                         Firm, unambiguous



                         Clear
                         Easy to understand
Page 155
                                                                                      2023 Sustainability Report
                                                                                       PT Bank CIMB Niaga Tbk      155




Minimize Environmental
Impact on This Report
Issuance


We have made great efforts to reduce the environmental impact caused
by the various publication processes of this Report. However , you can also
help us reduce our environmental impact. Did you know that every second
a forest of the size of football field is cut down? Thus, we encouraged your
participation to prevent and reduce it. Play your part by downloading the
digital version of this Report.




                       Physical form of this Report is printed using recycled paper
                       obtained through the supply chain sustainable and has been
                       certified Forest Stewardship Council.
Page 156
2023 Sustainability Report




PT Bank CIMB Niaga Tbk

Corporate Secretary
Graha CIMB Niaga
Jl. Jend. Sudirman Kav. 58
Jakarta 12190, Indonesia
Tel.         : (62-21) 250 5252, 250 5353
Fax.         : (62-21) 250 5205
Email        : corporate.secretary@cimbniaga.co.id
Facebook : CIMB Indonesia
Twitter   : @CIMBNiaga
Instagram : cimb_niaga
YouTube : CIMB Niaga
LinkedIn  : CIMB Niaga

www.cimbniaga.co.id

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Names mentioned 39 people and organisations named in the text · linked when the evidence is strong

linked org Bank CIMB Niaga Tbk p.3 ×363
linked org PT Commerce Kapital p.4
linked org PT CIMB Niaga Auto Finance p.4 ×5
linked person LANI DARMAWAN p.19 ×2
linked person Didi Syafruddin Yahya p.20
linked person Vera Handajani p.20
linked person Lee Kai Kwong p.21
linked person John Simon p.21
linked person Fransiska Oei p.21
linked person Pandji P. Djajanegara p.21
linked person Tjioe Mei Tjuen p.21
linked person Henky Sulistyo p.21
linked person Joni Raini p.21
linked person Rusly Johannes p.21
linked person Noviady Wahyudi p.21
linked org Bank CIMB Niaga Tbk Bank p.30
possible person Jeffrey Kairupan p.20
possible person Abdul Rahman p.20
unresolved org BNGA Share Ownership CIMB Group Sdn. Bhd p.4
unresolved org PT CIMB Niaga Sekuritas p.4 ×2
unresolved org Financial Services Authority p.8 ×9
unresolved person Prof. Dr. M. Quraish p.20
unresolved person Prof. Dr. Fathurrahman p.20
unresolved person Dr. Yulizar D. Shihab p.20
unresolved person Sanrego p.20
unresolved org Bank Exclusion List p.26
unresolved org Government of the Republic of Indonesia p.28
unresolved org Siddharta Widjaja & Rekan p.36
unresolved org Siddharta Widjaja p.36
unresolved org Bank CIMB Niaga Tbk | 55 Bank p.55
unresolved org Bank CIMB Niaga Tbk | 57 Bank p.57
unresolved org PT PLN (Persero) p.57
unresolved org Ministry of Energy and Mineral Resources p.59
unresolved org Ministry of Environment p.59 ×2
unresolved org Bank Indonesia p.68
unresolved org Bank Indonesia’s p.68
unresolved org PT Deloitte Advis Indonesia p.107 ×2
unresolved org Ministry of Energy p.117
unresolved org PT Penjaminan Infrastruktur Indonesia (Persero) p.117

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