PT BANK CHINA CONSTRUCTION BANK INDONESIA TBK

SUSTAINABLE FINANCE ACTION PLAN

2026

In accordance with Financial Services Authority Regulation No. 51/POJK.03/2017 concerning the Implementation of Sustainable Finance, CCB Indonesia is committed to preserving the environment in its daily operations, including maintaining the cleanliness of the environment around its offices, providing credit to Environmentally Friendly Business Activities (KUBL) and parties that care about the environment (green companies), and CCB Indonesia has implemented a sustainable greening programme that began in 2014.

In addition, in recent years, CCB Indonesia has consistently developed technology-based products and services through electronic channel applications, as well as developments leading to digital banking. In the context of Sustainable Finance, the use of these technology-based products will save resources.

CCB Indonesia conducts its business activities responsibly, integrating environmental, social, and governance (ESG) aspects into a framework of sustainable finance, so that business growth is also expected to have a positive impact on the preservation of the planet and the welfare of society.

Financing priorities are directed towards environmentally conscious business activities, which means that these activities must take into account and strive to reduce negative impacts on the environment and encourage sustainable practices. Environmentally conscious business activities include investment in renewable energy, namely: financing for renewable energy projects such as solar, wind or hydroelectric power that help reduce greenhouse gas emissions and promote cleaner energy sources; and financing for sustainable transport to support sustainable transport projects, such as the development of public transport or sustainable infrastructure.

CCB Indonesia fully supports green financing for the renewable energy sector, which is transitioning from fossil fuels to reduce carbon emissions, in line with the Indonesian government's programme for “net-zero emissions”, which is targeted for completion by 2060. The Indonesian Sustainable Finance Taxonomy (TKBI) will serve as a guide to increase capital allocation and sustainable financing in support of Indonesia's net-zero emissions target.

Furthermore, CCB Indonesia also plays an active role in contributing to sustainable reforestation programmes in arid and drought-stricken areas, which have now entered their tenth year through corporate social responsibility (CSR).

Reforestation is crucial in addressing land degradation, reducing soil erosion, and enhancing environmental sustainability. This sustainable reforestation programme benefits both people and the environment, particularly in addressing barren, arid land prone to landslides in order to halt and rehabilitate land damage. This is included in Sustainable Development Goal (SDG) No. 15, which is to protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

Climate change and extreme weather events, which have recently affected the globe and caused various disasters, such as prolonged droughts, droughts, and landslides. Rising global temperatures, rising sea levels, and extreme weather are the tangible effects of increasing greenhouse gas emissions. CCB Indonesia has participated in providing assistance through a sustainable reforestation programme in Central Java, particularly in Wonogiri and Banyumas, to prevent erosion in arid areas and avoid the danger of landslides. The reforestation programme covers the entire process from pre-planting and planting seedlings to watering until the trees can grow independently with sufficiently strong roots. In addition, the Bank also carries out a reforestation programme by planting mangrove trees on the coast to prevent abrasion and absorb carbon dioxide (CO2).

In 2026, CCB Indonesia will continue to implement a number of initiatives to encourage the implementation of the Sustainable Finance Action Plan. CCB Indonesia will consistently support government policies by running programmes with economic activities that support Indonesia's Sustainable Development Goals, which cover economic, environmental and social aspects, within the framework of sustainable financing to support the achievement of net zero emissions (NZE) targets in Indonesia by 2060.--