IIF: Climate Risk Management Becomes the Foundation of Business Sustainability

Jakarta (ANTARA) - PT Indonesia Infrastructure Finance (IIF) has stated that climate risk management will serve as the foundation for its business sustainability moving forward. “As an infrastructure financing institution, we are responsible for ensuring that every rupiah we disburse is not only financially viable but also resilient to climate risks. This step aligns with IIF’s vision as a catalyst for sustainable infrastructure development in Indonesia,” said IIF President Director Rizki Pribadi Hasan. Rizki Pribadi, speaking at the Climate Risk Forum and Workshop in Jakarta on Wednesday, mentioned that with support from Technical Assistance provided by the Climate Policy Initiative (CPI), IIF has integrated climate risk management into its governance, strategy, risk management, and business processes. “This implementation is realised through the Climate Risk Management Policy, which was developed jointly with CPI in 2025,” he said. The results of assessments are periodically summarised and reported to the Risk Management Committee and the Risk Monitoring Committee. After one year of implementation, IIF targets to have a comprehensive mapping of climate risk exposures across its entire portfolio, including estimates of potential actual loss impacts, in line with best practices for climate risk disclosure. According to IIF Chief Risk Officer Lestari Umardin, integrating climate risks is part of the investment decision-making process, not merely regulatory compliance. “With Climate Risk Assessment, we can identify, measure, and mitigate physical and transition risks from the outset. This protects our portfolio and ensures that the projects we finance are prepared for future climate scenarios,” Lestari stated. Qualitative disclosures cover governance principles and risk management. Quantitative disclosures include Scope 1, 2, and 3 emissions data. Some of these disclosures have been published in IIF’s 2025 Sustainability Report. To support this, IIF has built internal capabilities in developing methodologies for calculating Scope 1, 2, and 3 emissions, which have been verified by Carbon Trust, a global climate consultancy firm. This capability forms part of IIF’s Environmental, Social, and Governance (ESG) Advisory services to clients, helping them meet sustainability standards.