RAM Consultancy assigns silver rating to AmBank Group

CIMB Research said AMMB would start to realise cost savings of RM80mil per annum from its mutual separation scheme from FY19F onwards.

KUALA LUMPUR: RAM Consultancy Services Sdn Bhd (RAMC),  a provider of sustainability services and environment, social and governance (ESG) analytics, has assigned a Silver Sustainability Rating to AMMB Holdings Bhd (AmBank Group). 

It said on Friday the rating reflected the group’s moderate overall sustainability performance after taking into consideration its ESG and positive impact attributes. 

AmBank Group’s overall sustainability performance is primarily driven by its strong sustainability governance, as demonstrated by a dedicated Sustainability Working Group structure that oversees sustainability initiatives via a top-down approach. 

“The group is also viewed favourably in respect of its corporate governance performance against the Financial Services Act 2013, Islamic Financial Services Act 2013 and the main pillars of Malaysian Code on Corporate Governance. 

The rating is further supported by the group’s comprehensive policies and practices across all social themes, such as human resource, human rights, product & service responsibility and community. 

“Sustainable finance and banking is a megatrend that is fast shaping the dynamics of the global financial sector. Banks play a significant role in the financial eco-system vis-à-vis creating a positive impact, in line with the United Nations’ Sustainable Development Goals,” said Gladys Chua, RAMC’s head of sustainability services. 

She said AmBank Group has displayed strong awareness of the need for sustainable and responsible banking through its sustainable finance strategy on financial inclusion, responsible lending and investments. 

That said, there is room for stronger performance indicators in these areas. 

“The group’s rating is moderated by its environmental performance. AmBank Group is expected to improve its environmental management through the formalisation and implementation of a comprehensive organisation-wide policy, as well as setting targets for other environmental themes such as waste and material management,” she said.