Sustainability - An Extension of our Corporate Purpose
The Bank’s Vision is to be The Preferred Bank of Business Owners. The business owner’s footprint in the economy and social fabric of the country is vast. In 2020, small and medium enterprises (“SMEs”) contributed 38.2% to Malaysia’s gross domestic product (“GDP”). They provide employment to almost half of the working population1. By serving the business owner’s personal and business needs, we will positively impact the wider community, i.e. their families, employees, and customers.
True to our mission of Building Alliances to Improve Lives, we aim to contribute to our stakeholders’ financial and social empowerment through meaningful collaborations and impactful business ecosystems.
Another way we improve lives is to do our part to help preserve the planet. Climate change has significantly affected our economy and community, and none is immune to its impact. We are committed to doing our part to improve our environment for the collective good.
To learn more about our sustainability strategy, click here.
1 Small and Medium Enterprises (SMEs) Performance in 2019 – Department of Statistics Malaysia
Our Sustainability Purpose
- We help business owners adopt economic, social and governance (ESG) practices in a way that creates value for the business, the community and the environment in which they operate.
- We aim to create a meaningful impact on sustainability in collaboration with our people, customers and community.
Our Sustainability Agenda centres on key priorities namely environmental, climate and social responsibility.
We commit to achieving the following topline goals by Financial Year (FY) 2025:
- Grow RM10 billion in new sustainable banking business
- Help customers adopt sustainable lifestyles and business practices
- Reduce the Bank’s greenhouse gas (GHG) emissions footprint
In FY2022, we achieved RM2.0 billion in new sustainable business and rolled out several green initiatives such as our solar panel financing campaign, the ASEAN Sustainability SRI Sukuk and Green Building Index certified mortgages:
- Solar panel financing campaign
This year, we launched our SME Solar Financing Program under Bank Negara Malaysia’s Low Carbon Transition Facility (LCTF).
- Green Building Index certified mortgages
We provide ESG-based mortgages for Green Building Index (GBI) certified projects. As of 30 September 2022, we have provided approximately RM175 mil in ESG based mortgages.
- ASEAN Sustainability SRI Sukuk
In August 2021, we partnered Agroto Business (M) Sdn Bhd’s (“Agroto”) for their first tranche of ASEAN Sustainability SRI Sukuk, the world’s first agriculture-based sustainability sukuk issuance. Through the sukuk issuance, we enabled Agroto to raise RM200 million to support its sustainable and integrated modern farming business. This partnership reflects the Bank’s commitment to provide sustainable financing opportunities and help customers adopt sustainable business practices.
We are focused on continuously developing sustainable and innovative products and services in order to meet our commitment of addressing climate change. Ultimately, we aim to support our customers in building unique and profitable ESG propositions while contributing back to the community and planet.