As climate change reshapes financial landscapes, regulatory frameworks in Indonesia are evolving to ensure financial institutions address environmental risks. The Climate Risk Management and Scenario Analysis (CRMS) guidelines from the Financial Services Authority (OJK) mark an important step in embedding climate considerations into the financial system, encouraging banks to identify, assess, and disclose climate-related risks within their portfolios.
Recognising the importance of this transition, Tri Hita Consulting partnered with PT Bank MUFG Bank, Ltd. (MUFG) to deliver a dedicated training programme aimed at preparing the bank’s staff for CRMS implementation. The in-person training was held over two days at Hotel Fraser, Jakarta, and brought together professionals from diverse departments within the organisation. Attendees represented a wide range of functions, including Credit Risk, Risk Management, Credit Analysis, Accounting, IT Operations, Japanese Corporate Banking, Internal Audit, Compliance, and General Administration.
The training opened with foundational discussions on the science of climate change, the urgency of climate action, and the growing exposure of financial institutions to physical and transition risks. Participants were introduced to the strategic role banks can play in enabling low-carbon transitions.
Building on this awareness, the programme moved into more technical terrain by focusing on the measurement of greenhouse gas (GHG) emissions, specifically those financed by the bank’s loan portfolio. Participants were introduced to international standards such as the Partnership for Carbon Accounting Financials (PCAF), which form the basis of OJK’s emissions reporting expectations.
These simulations fostered not only technical learning but also a collaborative environment. Participants worked in groups to apply emission calculation methodologies to hypothetical loan portfolios and successfully completed the exercises. Their active engagement demonstrated a strong understanding of the logic behind GHG estimations and growing confidence in applying these calculations to their daily responsibilities. The interactive nature of the sessions further helped to demystify complex concepts and encouraged collaboration across departments.
To support long-term integration of CRMS requirements into institutional processes, Tri Hita Consulting advised the establishment of a cross-functional task force within MUFG. This team would act as a central coordination body, responsible for aligning climate risk reporting efforts, facilitating communication between departments, and ensuring the timely fulfillment of regulatory obligations. By building this internal infrastructure early, MUFG can position itself to respond effectively to future expectations, while also embedding climate risk awareness across its operational fabric.
As banks face increasing scrutiny on their climate-related disclosures, the experience of MUFG underscores the importance of early capacity building. Through tailored training, strategic advisory, and collaborative problem-solving, Tri Hita Consulting continues to support financial institutions in translating regulatory frameworks into actionable strategies.
