Are banks ready to account for climate-related issues?

The report finds that while Indonesian banks show high compliance with national sustainability reporting mandates (POJK 51/2017) and are increasing their green portfolios, they lack the capacity and frameworks to implement detailed climate-related financial disclosures. Benchmarking against TCFD reveals significant gaps in governance, strategy, risk management, and metrics, with no surveyed bank fully aligned. Climate-related impacts are not yet integrated into formal financial statements or risk assessments like the ICAAP, though there is a growing trend toward adopting green taxonomies.

• Indonesian banks demonstrate high compliance with the OJK's POJK 51/2017 sustainability reporting requirements, but these disclosures remain high-level and lack detailed climate-related data.
• None of the surveyed financial institutions have fully adopted the four pillars of the TCFD recommendations, with only 23% in the initial development stage of TCFD-aligned disclosure.
• Banks are not yet integrating climate-related risks into their formal financial statements or regulatory risk assessments, such as the Internal Capital Adequacy Assessment Process (ICAAP).
• While 85% of sampled banks have set targets for the portion of their green portfolios, they lack clear metrics and performance evaluations for managing climate-related risks and emission reductions.
• Private sector contributions to Indonesia's 2030 climate targets are suboptimal, accounting for only 9% (USD 21.3 billion from 2015-2019) of the total USD 285 billion investment need.
• There is a notable difference in green finance allocation between bank types, with private banks allocating a higher portion of green finance compared to state-owned enterprise (SOE) banks.

APA

Climate Policy Initiative (2022). Are banks ready to account for climate-related issues? https://www.climatepolicyinitiative.org/wp-content/uploads/2022/12/Green-Banking-Survey-2022_FINAL.pdf

Chicago

Climate Policy Initiative. Are banks ready to account for climate-related issues? 2022. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/12/Green-Banking-Survey-2022_FINAL.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Are banks ready to account for climate-related issues? |date=December 2022 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/12/Green-Banking-Survey-2022_FINAL.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2022are, author = {{Climate Policy Initiative}}, title = {{Are banks ready to account for climate-related issues?}}, institution = {Climate Policy Initiative}, year = {2022}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/12/Green-Banking-Survey-2022_FINAL.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }