Research Article
Exploring Environmental and Social Risk Management of Indonesian Banks
@INPROCEEDINGS{10.4108/eai.10-8-2022.2320818, author={Aminudin Ma'ruf and Widhi Indira Laksmi and Yasmin Syahidah and Rahayu Puji Lestari and Alvia Rianita}, title={Exploring Environmental and Social Risk Management of Indonesian Banks}, proceedings={Proceedings of the 3rd International Conference of Business, Accounting, and Economics, ICBAE 2022, 10-11 August 2022, Purwokerto, Central Java, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2022}, month={8}, keywords={environment; social; risk management; banks; indonesia}, doi={10.4108/eai.10-8-2022.2320818} }- Aminudin Ma'ruf
Widhi Indira Laksmi
Yasmin Syahidah
Rahayu Puji Lestari
Alvia Rianita
Year: 2022
Exploring Environmental and Social Risk Management of Indonesian Banks
ICBAE
EAI
DOI: 10.4108/eai.10-8-2022.2320818
Abstract
Environmental and social problems are expected to be the next crisis after the pandemic. It is known that financial institutions carry a pivotal role in shaping the economic direction of a nation. With the rising social and environmental issues, this paper attempts to explore and analyse the environmental and social risk management of Indonesian banks. The data of this research were taken from in-depth interviews with seven Indonesian banks. This study employs a qualitative research method in assessing the management of environmental and social risk. The paper found that there are some initiatives among the banks in the implementation of social and environmental risk management programmes. The initiatives cover most of the social and environmental issues currently faced by the nation. However, there is no specific issue addressed by the banks to optimise the effect of the programmes. Moreover, there is a lack of a robust framework guiding the practices of the banks. Government and non-governmental organisation supports are essential in building a robust and sound policy assisting the implementation of the industries. Our results seek to reinforce the research and development facing environmental and social issues globally.
