When it comes to green financing initiatives and strategies, banks appear to be going all out.
RHB banking group officer-in-charge of group sustainability Angus Salim says the lender’s sustainability agenda is anchored by three key pillars: sustainable finance, climate action and financial inclusion, ensuring long-term resilience and economic growth.
“Through innovative green and social-finance products and solutions such as Malaysia’s first Sustainable Cross Currency Repurchase Agreement and the Green Product Bundling Scheme and Environmental, Social, and Governance or ESG deposits, we are expanding access to financing that supports both small and large businesses in adopting sustainable and low-carbon practices,” he says.
He reckons beyond financing, the bank is also taking steps in climate action and decarbonisation, with a commitment to achieving carbon-neutral operations by 2030 and net-zero emissions by 2050.
“Our strategy focuses on reducing financed emissions in five high-impact sectors within our business, driving growth in green financial services and supporting companies committed to carbon neutrality and integrating sustainable and low-carbon practices into our own operations,” adds Angus.
Sieh: CIMB is activelyengaging its clients to supporttheir business transitiontowards one that supports alow-carbon economy.
CIMB Group Holdings Bhd group chief sustainability officer Luanne Sieh says the lender is actively engaging its clients to support their business transition towards one that supports a low-carbon economy.
It does this via various initiatives such as setting Paris-aligned net-zero targets where it aims to be carbon neutral by 2050 including financed emissions.
Sieh says the bank also has innovative finance initiatives to support client transitions such as when it served as joint lead arranger, joint lead manager and bookrunner for Johor Plantations Group’s RM1.3bil sustainability-linked sukuk.
According to Sieh, the landmark issuance marked the first sukuk from the plantation sector under the Securities Commission’s sustainable and responsible investment sukuk framework.
Malayan Banking Bhd (Maybank) group chief sustainability officer Shahril Azuar Jimin says over the years, the bank has built a strong suite of local and regional ESG products, initiatives and services aligned with its mission of “Humanising Financial Services”.
Saw: OCBC’s SME Energyassessment tool aims tohelp SMEs gain easy accessto green building certificationand green finance.
Among its notable ESG initiatives locally and regionally is the publication of the Maybank Group Net Zero White Paper – Banking On A Better Tomorrow: Our Commitment To Net Zero, which provides an overview of Maybank’s approach to setting net-zero targets for select hard-to-abate sectors while addressing the unique regional challenges in driving both climate action and economic sustainability in Asean.
Others include its Maybank myimpact SME, which is a regional initiative specifically designed to support the development of small and medium enterprises by providing solutions based on ethical and sustainable banking values and the Maybank Sustainability Practitioner Certification Programme, which is designed to provide credibility for sustainability practitioners.
Hong Leong Bank Bhd (HLB) chief sustainability officer Chow Sheng Wai says its ESG initiatives are designed to drive decarbonisation and promote a green supply chain across Asean.
Chow says HLB has committed to three net-zero targets in which by 2026, it aims to achieve 15% to 25% reduction of greenhouse gas emissions; by 2030, it aims to achieve net zero on its operational emissions for Scope 1 and 2, and ultimately by 2050, HLB wants to achieve net-zero emissions across Scopes 1, 2 and 3.
Tay: Part of Public Bank’scommunity efforts include acollaboration with yayasanHijau Malaysia to plant 1,000tree saplings.
“The bank is achieving this through energy-efficiency measures, including LED retrofitting, solar panel installations, and the launch of its Enterprise Green Data Centre. A key advisory initiative that HLB offers its clients is the Sustainability Roundtable series, which fosters collaboration among industry experts, government agencies, and key decision makers.”
OCBC Bank (M) Bhd head of strategy and transformation Saw Poh Hoon says some of OCBC’s main ESG initiatives here and regionally include its first-in-market SME Energy Assessment or SMEEA tool which aims to help SMEs gain easy access to green building certification and green finance.
“Through this, we support clients in understanding the impact of their energy use and applicable green building,” Saw says.
She points out that OCBC Malaysia also structured its first Aluminium Stewardship Iniatiative Sustainability-Linked Trade Facility, providing RM120mil to KJM Aluminium Can Sdn Bhd, a subsidiary of Can-One Bhd. The facility was designed to incentivise sustainable sourcing practices within the aluminium industry.
Shahril: Maybank has builta strong suite of local andregional ESG products, initiativesand services alignedwith its mission of‘Humanising FinancialServices’.
Public Bank Bhd managing director and chief executive officer Tan Sri Tay Ah Lek says, as part of its commitment, the lender has published its Decarbonisation Plan which outlines its approach to achieving carbon neutrality by 2030 and net zero by 2050.
In addition, the group has signed a memorandum of understanding to initiate the installation of solar panels at 135 branches in Malaysia, further accelerating its efforts to achieve carbon neutrality.
Beyond internal operations, its community efforts include a collaboration with Yayasan Hijau Malaysia to plant 1,000 tree saplings, as well as the Run for Change 2024 events in Kuala Lumpur and Penang, Tay adds.
AmBank Group chief sustainability officer Amanah Aboobucker says the group announced its net zero aspiration in 2023 and has developed a Net-Zero Transition Plan this year to chart a pathway to achieve this aspiration for select hard to abate sectors with near term 2030 targets.
She says the lender’s net-zero transition plan entails engaging customers in the built environment, energy and agriculture sectors to understand, their own transition plans, identify opportunities and promote sustainable, transition and green financing.
