ESG FRAMEWORK ASSESMENT IN GREEN FINANCE:A CASE STUDY OF CITI INDONESIA’S DISBURSEMENT CHALLENGES

Currently ESG (Environmental, Social, and Governace) and green finance concept are becoming popular in banking industry. Banking used to focus on how to generate net income margin from being an intermediary party between lending and funding needs. Nowadays, there is a growing trend in banking...

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Bibliographic Details
Main Author: Suryana, Dadang
Format: Theses
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/83726
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Institution: Institut Teknologi Bandung
Language: Indonesia
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Summary:Currently ESG (Environmental, Social, and Governace) and green finance concept are becoming popular in banking industry. Banking used to focus on how to generate net income margin from being an intermediary party between lending and funding needs. Nowadays, there is a growing trend in banking industry to move beyond purely financial considerations to incorporate environmental, social, and governance considerations into the decision-making process. Green finance disbursement at Citi Indonesia is still classified as low compared to conventional financing though they have had ESG framework in place which should have been effective in promoting sustainable investments. This research aims to investigate the challenges faced by Citi Indonesia in integrating its ESG framework into its green finance disbursement programs, and to recommend solutions that can be implemented to overcome these challenges. The research objectives are to identify the internal and external factors that contribute to the low disbursement of green finance at Citi Indonesia, explore and analyze customers' perceptions and decision-making processes towards green finance products, develop feasible recommendations for Citi Indonesia to increase the disbursement of green finance, and examine the role of the Otoritas Jasa Keuangan (Indonesia Financial Services Authority) in promoting green finance. The study will use interview to collect primary data and literature review for secondary data. The findings will be analyzed using fishbone diagram for the root cause analysis, combined with 5-Whys analysis, and PESTEL framework for external analysis. The study is expected to contribute to the market deepening of green finance in the Indonesia banking sector, and provide recommendations for Citi Indonesia to increase the disbursement of green finance.