Accelerating climate transition planning for financial institutions, issuers and publicly listed companies in Indonesia

• Ms Geraldine Ang, Team Lead, Clean Energy Finance and Investment Mobilisation Programme, OECD
• Mr Henry Rialdi, Department Head of Integrated Surveillance and Financial Services Policy, OJK 
• H.E Jess Dutton, Ambassador of Canada to Indonesia

• Dr Arie Pratama, Institute of Indonesia Chartered Accountant - Member of Sustainability Standard Board  "Adoption Plan of IFRS Climate-related Disclosure Standard (S2) in Indonesia"
• Mr Joko Siswanto, Director of Sustainable Finance, OJK 

This discussion provided an overview of global developments in transition planning, including key frameworks such as the International Sustainability Standards Board (ISSB) standards, the Transition Plan Taskforce (TPT) Disclosure Framework, and the European Sustainability Reporting Standards (ESRS). This session also included a presentation of new insights from the 2024 OECD/OJK survey on current practices and challenges faced by financial institutions and publicly listed companies in Indonesia regarding transition planning and net-zero target setting. Additionally, relevant regional initiatives, such as the 2024 revision of the Association of Southeast Asian Nations (ASEAN) Transition Finance Guidance, were shared to offer valuable perspectives for assessing and demonstrating credible transitions, tailored to the unique contexts of ASEAN member states.

Moderator:

• Ms Yuki Yasarani, OJK and former staff on loan, Clean Energy Finance and Investment Mobilisation Programme, OECD

Presenters:

• Mr Eugene Wong, CEO, Sustainable Finance Institute Asia "Asean Transition Finance Guidance Version 2"
• Ms Valentina Bellesi, Policy Analyst, Clean Energy Finance and Investment Mobilisation Programme, OECD "Accelerating Climate Transition Planning in Indonesia"

This session explored the proposed key elements of the framework on corporate climate transition plans in Indonesia. The session also aimed to gather feedback on the framework from participants. The framework focuses on three key elements: (i) climate ambition; (ii) climate action; and (iii) accountability. Climate ambition highlights the importance of setting strategic priorities, establishing measurable targets, and choosing climate scenario and sectoral pathways to align with net-zero objectives. Climate action explores the integration of climate considerations into business operations, products and services, climate scenario analysis, financial planning, risk management, and stakeholders engagement, including human resources. Lastly, accountability emphasises comprehensive monitoring through reporting and disclosure, financial and climate metrics, and verification and assurance processes. It also underscores strong governance, including board and senior executive oversight, clearly defined roles and responsibilities, incentives and remuneration structures, and supporting a just transition to ensure equitable and sustainable outcomes.

Moderator:

• Mr Hakimul Bath, Local Representative for Indonesia, Clean Energy Finance and Investment Mobilisation Programme, OECD 

Presenter:

• Ms Yuki Yasarani, OJK and former staff on loan, Clean Energy Finance and Investment Mobilisation Programme, OECD "Framework on Climate Transition Plans for Financial Institutions and Publicly Listed Companies"

The climate transition planning process involves developing a structured approach to ensure that an organisation's strategies and operations are in alignment with net-zero objectives. It begins with setting a clear climate ambition, which encompasses strategic priorities, measurable targets, and sector-specific pathways. This is followed by implementing climate action, which involves the integration of climate considerations into business operations, products, scenario analysis, financial planning, and risk management. Engaging stakeholders and enhancing employee capacity are crucial in this phase.

Lastly, accountability is guaranteed by transparent reporting, robust metrics, verification, and strong governance, which includes oversight, defined roles, incentives, and a focus on just transition principles. The session aimed at fostering mutual learning and knowledge sharing on the process of developing climate transition planning from a corporate perspective. It also explored key steps to follow and real challenges companies may face throughout the process.

Moderator:

• Ms Valentina Bellesi, Policy Analyst, Clean Energy Finance and Investment Mobilisation Programme, OECD

Presenters:

• Ms Yuki Yasarani, Senior Analyst, OJK and former staff on loan, Clean Energy Finance and Investment Mobilisation Programme, OECD
• Mr Jacques Morris, Head, International Transition Plan Network (ITPN), E3G "Transition Plan Taskforce"
• Ms Fransiska Oei, Director of Compliance, Corporate Affairs & Legal, Bank CIMB Niaga "Transition Planning Process PT Bank CIMB Niaga Tbk"

Consistent, comparable and quantifiable metrics are essential for evaluating the credibility, integrity and ambition of transition plans and monitor progress towards net-zero targets. Robust metrics can increase transparency and accountability and help to avoid greenwashing risks. Speakers in this session shared good practices on the use of metrics to assess progress and credibility of transition plans as well as alignment with net-zero pathways. They also shared strengths and limitations of existing metrics as well as challenges related to sourcing and aggregating reliable data, especially in emerging markets and developing economies.

Moderator:

• Ms Yuki Yasarani, Senior Analyst, OJK and former staff on loan, Clean Energy Finance and Investment Mobilisation Programme, OECD

Presenters:

• Ms Flavia Bedlicks, Senior Manager, Transition Planning Policy, CDP "State of Play: Transition Plans"
• Ms Rizkiasari Yudawinata, Sustainable Finance Lead, WWF and Member of the Indonesian Sustainability Standard Board "Accelerating Climate Transition Planning: Metrics to Assess Progress on Transition Plans"
• Mr Rohit Seksaria, Head of Climate Transition, Bloomberg "Assessing Credibility of Transition Plans"

The credibility and integrity of corporate climate transition plans are reliant upon assurance and verification. Independent verification ensures that reported data, such as emissions, targets, and progress, is accurate and in accordance with specified requirements and frameworks. This process promotes stakeholder confidence by exhibiting an organisation's commitment to achieving its climate objectives and reducing the risk of greenwashing.

Moderator:

• Ms Valentina Bellesi, Policy Analyst, Clean Energy Finance and Investment Mobilisation Programme, OECD

Presenters:

• Mr Romain Poivet, Climate and Energy Engagement Lead, World Benchmarking Alliance (WBA)
• Ms Yuliana Sudjonno, Partner, PwC Indonesia "Supporting Sustainable Finance through Assurance"
• Mr Dudi Muhammad Kurniawan, Chair, Indonesian Institute of Certified Public Accountants "Accelerating Climate Transition Planning for Financial Institutions, Issuers and Publicly Listed Companies in Indonesia: The Roles of Public Accountant"

• Ms Geraldine Ang, Team Lead, Clean Energy Finance and Investment Mobilisation Programme, OECD
• Mr Joko Siswanto, Director of Sustainable Finance, OJK