Green financing, also known as sustainable financing, is no longer just a buzzword as lenders all over the world are stepping up efforts within the segment.
Within Asean, this emphasis on providing funds to create environmentally friendly outcomes has definitely been gaining traction, if numbers are anything to go by.
RHB Bank Bhd group officer-in-charge of sustainability Angus Salim says green finance is a core sustainable lever and key decarbonisation strategy for the banking group.
“Financial and impact materiality is embedded into our business decisions across banking services in Asean. We will be mobilising RM90bil in sustainable financial services by 2027, which is a significant increase from our RM50bil target by 2026, to support measured and low-carbon transition, and reinforce our net-zero commitment by 2050,” he says.
A key focus for 2025 is the establishment of the RHB Sustainable and Transition Finance Framework and Guidelines, which the lender plans to launch in the third quarter of the year.
“This framework will guide us in expanding green and transition financing solutions, helping our clients align their business growth with climate-resilient pathways.”
As of last December, RHB had mobilised over RM41bil in sustainable financing, surpassing its 2026 target of RM50bil.
Its portfolio consists of 51% green financing (renewable energy and energy efficiency projects, green buildings and sustainable transport), 21% social financing and 28% environmental, social and governance-linked investments and structured products.
CIMB Group Holdings Bhd group chief sustainability officer Luanne Sieh says, as a financial institution with a footprint across Asean, CIMB plays a pivotal role in green financing by channelling capital toward environmentally sustainable projects and businesses.
“With eight out of 10 Asean member states committed to net-zero targets, we recognise both the immense business opportunities for ourselves and our clients, in addition to our responsibility to support governments across our markets in financing and facilitating their transition.”
She says CIMB has more than tripled its initial target to mobilise RM30bil in green, social, sustainable impact products and services (GSSIPS) to RM100bil between 2021 and 2024.
Last year, it exceeded its own goal by mobilising RM117bil in sustainable finance by the end of the year.
It mobilised over RM31bil in GSSIPS, with RM17.8bil in sustainability-themed financing (green, social, sustainable and sustainability-linked instruments) and RM13.3bil in economic inclusion (financing for low-income consumers and micro and small enterprises).
Public Bank Bhd managing director and chief executive officer Tan Sri Tay Ah Lek says green financing is a key pillar of the Public Bank Group’s sustainability agenda, supporting businesses and individuals to transition towards a low-carbon economy.
“To that end, the group has set a target to mobilise RM100bil in sustainable financing by 2030. In supporting this goal, the group has mobilised RM3.8bil in green financing and RM4.1bil in sustainability-linked loans since 2020,” he says.
Tay says the Public Bank group plays a crucial role in shaping Asean’s green future by facilitating capital flow towards sustainable projects and businesses.
“Recognising the importance of sector-specific strategies, it has set sectoral targets for palm oil, cement and construction to support targeted decarbonisation efforts within our portfolio. This not only aligns with global climate goals, but also creates opportunities to finance our customer’s transition to low carbon operations, ensuring they can adopt greener practices without compromising growth and stability,” Tay adds.
OCBC Bank (M) Bhd head of strategy and transformation Saw Poh Hoon says OCBC supports clients across Asean and is present in key markets across the region, including Singapore, Malaysia, Indonesia, Hong Kong and China.
“As a key banking partner for clients with presence across Asean, we recognise our role as a key provider of sustainable financing solutions to support clients and their extensive supply chains across the region.
“For instance, OCBC is supportive of the Johor-Singapore Special Economic Zone agreement by Malaysia and Singapore where last year, we supported about 260 new mid-sized enterprises, mainly from the services, construction and manufacturing, and wholesale and retail trade sectors, in setting up operations in Malaysia,” she says.
OCBC’s main approaches to sustainable finance are engaging clients on their net-zero transition and contributing to building sustainable supply chains.
Malayan Banking Bhd group chief sustainability officer Shahril Azuar Jimin says the lender’s efforts to support a transition within the region is reflected in its commitment to mobilise RM80bil in sustainable finance by this year.
“We have successfully exceeded this target, a year in advance, achieving a cumulative total of RM115.17bil as of last year. The group mobilised more than RM10bil towards green financing in 2024 alone, spanning our corporate, investment and business banking as well as retail, insurance and global markets division,” he adds.
Hong Leong Bank Bhd (HLB) chief sustainability officer Chow Sheng Wai says the bank initially targeted RM500mil in renewable energy (RE) financing within five years, a goal that it has already surpassed.
“HLB has now set an ambitious target of RM4bil by this year, having already approved over RM3.5bil for bioenergy, solar, hydro plants and other RE projects vital for a greener regional supply chain.”
AmBank Group chief sustainability officer Amanah Aboobucker says the lender views the provision of green financing as an opportunity to drive growth and an imperative enabler in addressing climate change.
“We have embarked on this journey since 2020 when we developed our green financing guidelines for the energy, building, manufacturing, transport, water, waste management and palm oil sectors.”
She says the guildelines facilitated its strategy to promote green loans and financing to its customers, facilitating disbursement of over RM3bil last year.
