Sustainability Culture

A. Enforcement of Human Rights

BCA is committed to respecting and upholding human rights. Human Rights Policies are implemented by BCA in collaboration with employees, vendors, customers, and the general public. BCA prohibits and will not tolerate any violation of human rights practices, including discrimination, sexual and non-sexual harassment in the workplace.

BCA also provides opportunities for people with physical disabilities (diverse abilities) and respects their rights. Currently, BCA has employed 26 outsourced workers with disabilities who work as Call Center Officers in the Digital Service Center.

BCA is committed to maintaining communication with employees through various means, one of which is Halo SDM (66900), which can be contacted by employees to obtain information about employment or industrial relations. This facility can be accessed via BCA's internal telephone network with a guarantee of confidentiality for callers' information.

The aspect of human rights is one of the fundamental issues that need to be considered in realizing sustainable business. In realizing the commitment as a responsible company for human rights.

In 2022 BCA conducted human rights due diligence on the employment aspect for BCA employees. And in 2023, BCA awarded a certificate of appreciation from the Ministry of Law and Human Rights of the Republic of Indonesia for business actors who have fulfilled the protection, respect and restoration of human rights according to the Business and Human Rights Risk Assessment (PRISMA) indicator standards.

B. Safe and Respectful Workplace

BCA is committed to fostering a healthy, safe, productive, and respectful work environment by rejecting all forms of discrimination, violence, sexual and non-sexual harassment, as well as other negative behaviors.

To support this commitment, BCA has established the Respectful Workplace Policy (RWP), aligned with both national and international human rights and labor standards. This policy complements BCA’s internal Human Rights Policy and applies to all activities involving BCA, whether directly or indirectly. The RWP covers all employees (permanent, contract, outsourced, interns, or trainees), interactions with customers, as well as third parties such as business partners, vendors, and suppliers. Implementation of this policy is the responsibility of all levels of BCA, in line with their respective roles and functions.

As part of strengthening its human rights culture and ensuring a respectful workplace, BCA requires all employees to complete mandatory online training. The training includes human rights awareness, BCA’s commitment to upholding human rights, prohibited behaviors such as discrimination and harassment, and the available reporting mechanisms through both designated work units and the Whistleblowing System.

BCA has developed a Climate strategy that serves as a key guideline in decarbonizing and increasing resilience to climate change, supporting the government's target to reduce GHG emissions by 31,89% by 2030 and achieve Net Zero Emission (NZE) by 2060. The discussion on sustainable finance, including the management of climate-related risks and ESG, is presented in the form of a quarterly report. BCA also identifies and analyzes the actual and potential impacts of climate-related risks and opportunities on its business, directing business strategy and financial planning with the ultimate goal of supporting the achievement of NZE through the implementation of the Climate Change Strategy Roadmap.

Implementation of Climate Risk Stress Test (CRST)

In 2023, the Indonesian government, through OJK, initiated the initial phase of Climate Risk Stress Testing (CRST) directed at the 11 banks in the Climate Related Financial Risk Task Force, including BCA, to assess and report the impact of climate risk on their loan/investment portfolio. BCA conducted this CRST using a simple approach, simulating physical and climate transition risks, identifying vulnerabilities and mitigation strategies for a short-term period. For physical risks, quantitative analysis was conducted on productive and consumer loans affected by drought, forest fires, and floods in 2023. Meanwhile, transition risk was measured for the period 2023-2025, covering the market risk of corporate bond holdings and its effect on corporate credit. Qualitative methods were used to assess transition and physical risks against operational risks, and for long-term risks (2030, 2040, 2050) using the NGFS scenario. The results show that BCA is still adequately capitalized above the CAR required by OJK, and the bank is committed to developing a framework in accordance with OJK's roadmap.

Climate Change

1. BCA's Response to Climate Change

BCA has developed a climate change strategy roadmap to identify the bank's risks and opportunities posed by climate change. BCA has taken the following steps:

• Develop a Climate Change Strategy roadmap;
• Continue to develop a GHG inventory using the GHG Protocol Standard;
• Improved the understanding of climate change sources and impacts on its operations and investments;
• Increase the Bank's resilience to emissions and climate risk by monitoring climate-related investment sectors;
• Prepare guidelines for customers and businesses to shift to a low-carbon and climate-resilient economy.

2. Agent of Change

The eco-friendly movement at the BCA office cannot be separated from the involvement of BCA employees. BCA has established Agent of Change (AOC) in representative offices/work units at the head office, regional offices, branch offices throughout Indonesia and also subsidiaries.

Agent of Change plays a role in implementing environmentally friendly culture and behavior in the office, such as saving electricity and water, sorting waste, developing e-learning green office & green lifestyle e-learning as a means of environmental awareness, and calling for an environmentally friendly movement through internal communication media and the company’s social media.

3.Green Office and Green Lifestyle

In support of environmental conservation and climate change mitigation, BCA has begun to manage energy consumption. BCA's Green office and Lifestyle initiatives include:

• setting a schedule to gradually turn off the elevator
• turning off lights during lunch hours for back office areas
• using inverter air conditioners and LED lights
• switching the use of 80gsm HVS paper to 75gsm
• reducing electrical energy consumption, by using LED lights, setting operational schedules for air conditioners, lights, elevators, computers, and other electronic devices;
• replacing air conditioners with more environmentally friendly ones;
• utilizing renewable energy by installing solar panels in the office building;
• implementing recyclable waste management through collaboration with waste banks in the vicinity of BCA buildings to encourage a circular economy in the surrounding area;
• use of high efficiency water cooled chillers at Wisma BCA Foresta;
• the use of portable tap water in some buildings to reduce the use of bottled water;
• providing Public Electric Vehicle Charging Stations (SPKLU) in several BCA buildings;
• reuse of domestic wastewater from the sewage treatment plant (STP) and rain harvest tanks in several BCA buildings to reduce water consumption;
• actively managing energy consumption such as electricity, water, refrigerant and fuel in BCA buildings through preventive and corrective maintenance.

4. Environment and Biodiversity Preservation

BCA contributes to supporting Indonesia’s flora and fauna conservation efforts, even though its business activities are not directly related to natural resources or biodiversity. This biodiversity conservation is very important in helping the environmental ecosystems and reducing emissions.

BCA's commitment and efforts to support environmental sustainability in daily banking activities will continue to be improved and carried out on an ongoing basis. None of BCA's activities directly utilize natural resources or damage the environment. Therefore, to date, no environmental complaints concerning BCA’s banking activities have been received.

Environmental Friendly Operations

BCA is continuously developing innovations to achieve environmentally friendly operations. Various efforts have been implemented to reduce negative impacts on the environment, including:

• Paper usage reduction program
• Energy efficiency program
• Reduction of air travel emissions by switching to virtual meetings
• Gradually implementing green procurement by integrating green procurement guidelines and GHG reduction aspects to create climate resilience
• Improving the quality of products and services provided to facilitate customer access through digital banking
• Implementing a digital workplace
• Supporting environmentally friendly operations through green building concepts
• Environment-based Bakti BCA program

Collective Labor Agreement (CLA) and Industrial Relations

The Collective Labor Agreement (CLA) is the result of negotiations between the Company's Management and the Labor Union which contains working conditions, rights and obligations regarding the Company and employees. The CLA is valid for a maximum of 2 years since it is signed by the Company and the Labor Union, therefore it is necessary to deliberate for CLA renewal every 2 years. The existence of the Labor Union proves that BCA management supports the freedom of association, the rights to assemble, and to express opinions. Labor Unions not only serve as the negotiation team for the CLA, but also as a worker’s representatives to convey their aspirations regarding industrial relations and other working conditions. BCA has seven labor unions. Based on the results of the verification of Labor Union membership, one of which has more than 10% members of the total employees, namely KOMNAS SP NIBA BCA.

Remuneration and Benefits

The remuneration received by BCA employees is determined based on position level and performance achievement, without discriminating against gender, ethnicity, race, religion, or class. BCA provides remuneration by always ensuring adequate wages by complying above minimum wage requirements that apply all over Indonesia. The remuneration comprises salaries, allowances, cash bonuses, and extra bonuses in the form of BCA shares, to increase employees’ sense of ownership of the company.

Gender Equality

BCA manages its manpower by upholding the principles of diversity and equal opportunity without discrimination against gender, ethnicity, religion, race, or class. It is supported by the non-discrimination policy stated in BCA Decree No. 214/SK/DIR/2021 on Human Rights Policy, BCA Code of Ethics, and CLA. BCA also continues to increase the role of women in leadership roles. The corporate governance structure represents diversity in terms of gender, education, experience, age, and expertise. BCA promotes gender equality and encourages the role of women in Senior Manager and Director positions to maintain inclusivity.

BCA periodically monitor the gender pay gap to ensure equal remuneration for men and women.

Annual Leaves

All employees has the right to annual leave while still receiving wages/salary and being eligible for other employment facilities and social protection. The period of annual leaves for employees is accordance with the provisions of the Collective Labor Agreement (PKB) based on the length of service at BCA with a length of 12 to 21 working days in one year.

Access to Health Facilities and Consultation

BCA recognizes the importance of health to employee productivity, and has made efforts to provide a safe and decent workplace. In addition to complying with public program to provide BPJS Health facilities, BCA also provides healthcare facilities beyond the public program, such as additional health insurance, counseling services with psychologists and health education. These facilities are managed by the Human Capital Management (HCM) Division. All employees and their families entitled to health benefits such as inpatient care, outpatient care, maternity benefits, eyeglasses, dental care, laboratory tests, periodic medical check-ups, and pap smears.

OHS Communication and Training

BCA's efforts to raise employees' awareness of OHS include facilitating all employees with OHS e-learning media, organizing online OHS dissemination and offline safety and health training for the Emergency Response Team and First Aid Officers to ensure all employees understand OHS procedures to be able to identify and address potential hazards independently. Every year, BCA actively promotes a healthy lifestyle, including mental health. The Bank also encourages employees to maintain a healthy lifestyle by joining various health programs managed by BAKORSENI. In 2024, we organized various health education activities for employees, including topics on lung health, eyes, back pain, cancer, stress management, socializing healthy eating guidelines and mental health in the workplace.

Fair Recruitment

BCA talent management covers all stages from recruitment to the end of an employee’s service terms. Talent acquisition is conducted through several programs, including the Business and Banking Education Program (PPBP), Informatics Engineering Education Program (PPTI), Management Trainee, and other recruitment programs (website: https://karir.bca.co.id/). This approach aims to shape employees from entry-level to leadership level in the company. Recruitment is based on position needs and the compatibility of candidates with BCA’s cultural values. During 2024, BCA recruited 805 men and 1,164 women through a fair, transparent, and non-discriminatory recruitment process.