KUALA LUMPUR: Malayan Banking Bhd
(Maybank) has formulated its own Sustainable Product Framework (SPF) – the first ever by a Malaysian bank – to enable greater development of green, social and sustainable products.
In a statement today, Maybank said the framework, which will support its commitment of ‘Mobilising RM50 billion in Sustainable Finance by 2025’, will be implemented across the group’s Islamic and conventional products effective Sept 1, 2022.
Maybank chairman Tan Sri Zamzamzairani Mohd Isa said the bank has taken a leadership position by introducing such a framework into its business to allow for products and solutions to be designed based on the readiness and needs of its large customer base covering retail, non-retail and large corporates.
He noted that many of its customers are at different stages of the sustainability journey.
“We want to support them through this long-term journey and for that, we not only need to be clear ourselves on what is defined as sustainable finance, but also know how to work with our customers to offer them dedicated sustainable, sustainably-linked or transitionary solutions based on their needs,” he said.
Maybank said the framework covers products offered under corporate lending, debt and equity capital markets, trade financing, retail financing, insurance, asset and wealth management, derivatives, and deposits.
The main aim of the framework is to help the bank’s business teams have clarity in developing green, social and sustainable products by looking at the intended use of the proceeds from the product or solution offered, and whether it meets the group’s sustainable standards throughout its life-cycle.
The SPF is applicable to all financial products and services that integrate environmental, social, and corporate governance criteria into business or investment decisions to bring about sustainable development outcomes or contribute positively to the achievement of the Paris Agreement goals and United Nations-Sustainable Development Goals.
The implementation of SPF comes on the heels of Maybank almost reaching the half-way mark of its RM50 billion sustainable financing target by 2025.
The bank has mobilised more than RM13.6 billion in sustainable finance in the financial year ended Dec 31, 2021 (FY2021) and RM10.3 billion in the first half ended June 30, 2022 (1H 2022), which exceeded its FY2022 target of RM9 billion in sustainable finance.
Over 80 per cent of the 1H 2022 sustainable financing mobilised was from Malaysia and Singapore, with the bulk of corporate financing targeted at the property, infrastructure and renewable energy sectors.
“Given our significant momentum in mobilising sustainable finance solutions over the last one-and-a-half years coupled with the rollout of the SPF, we will further evaluate our ability to do more sustainable financing in the immediate future,” said Zamzamzairani, who is also Maybank’s Board Sustainability Committee chairman. – Bernama