KUALA LUMPUR: RHB Banking Group’s green portfolio has increased to RM3.25bil year-to-date from RM3bil at end-2020, according to group managing director and group chief executive officer Datuk Khairussaleh Ramli.
He said the commitment grew through its core business activities via lending, capital markets advisory and investment activities, constituting around 20%, 30%, and 50% respectively of the banking group’s green portfolio.
“This is in line with our sustainability framework, which outlines approach towards embedding sustainable practices into business and operations,” he said at the virtual RHB environmental, social and governance (ESG) forum-envisioning a better future yesterday.
Khairussaleh said 2020 was a year where ESG issues, sustainable finance and investment were given a lot of focus and RHB Group is now starting to see ESG matters being further integrated into investment and corporate strategy as well as evaluation and decision-making process.
“ESG-centric funds are also growing steadily as investors begin to have good appreciation and understanding of the critical needs to ensure that we combat climate change and achieve the United Nations sustainable development goals,” he said.
He said Bursa Malaysia is taking the lead in driving the ESG progress since 2014 through the launch of FTSE4Good Bursa Malaysia (F4GBM) Index, whereby it has directly encouraged more active participations by listed companies, with the constituents increasing to 76 companies.
“The successful implementation of ESG initiative has also shown that business improve their competitive advantage through the enhancement in their corporate performance and governance to become more attractive to institutional investors which is crucial for public companies,” he said. — Bernama