Bank Syariah has established itself as 2024’s foremost Islamic bank for environmental, social, and governance (ESG), setting new standards for sustainability through innovative issuance, strategy and training initiatives.
Bank Syariah made history in June 2024 with Indonesia’s first corporate ESG sukuk, raising Rp9 trillion ($542 million) in an issuance that was oversubscribed three times. This groundbreaking sukuk uniquely combined Islamic finance principles with sustainability objectives, directing funds towards impactful green and social projects aligned with international standards.
The bank has demonstrated remarkable growth in sustainable financing, reaching Rp66.4 trillion by Q4 2024 – constituting 23.88% of its total portfolio. This includes Rp52.4 trillion in social financing and Rp14.1 trillion in green financing, with impressive growth rates of 101% and 108%, respectively. Key focus areas included sustainable management of biological and land resources, and eco-efficient products.
In July 2024, Bank Syariah Indonesia established a dedicated ESG group to coordinate sustainability strategy, governance and reporting across the organisation. The bank has designed a comprehensive 2025-2030 roadmap that clearly outlines ESG targets and their implementation strategy.
The bank innovatively introduced green zakat programmes, further integrating Islamic charitable principles with environmental sustainability
Bank Syariah leads in climate risk assessment too, through its climate risk management and scenario analysis framework, which systematically evaluates climate-related impacts on financial performance and governance structures. The bank is also Indonesia’s first Islamic financial institution to track carbon emissions across all 1,130 outlets, with offsetting initiatives reducing 949.98 tonnes of CO₂ equivalent emissions in 2024.
Bank Syariah distributed Rp222 billion in corporate zakat in 2024 – the highest among Indonesian banks – funding numerous SDG-aligned social initiatives. The bank innovatively introduced green zakat programmes, further integrating Islamic charitable principles with environmental sustainability.
The bank’s management has cultivated a comprehensive green business culture, achieving 85% ESG awareness among its 15,233 employees through literacy programmes, knowledge sharing and educational seminars. The work has continued following the review period, with the launch in early 2025 its green business culture initiative, focused on resource conservation and sustainable operational practices.
Specialised ESG training curricula is incorporated at basic, intermediate and advanced levels for various managerial functions, ensuring sustainability principles are embedded throughout the organisation. For its leadership in the field, Bank Syariah takes Euromoney’s award as Indonesia’s best Islamic bank for ESG.
