- Provided US$273 million in green auto loans
- Financed US$3.3 billion of green and affordable mortgages
Hong Leong Bank (HLB) has launched its inaugural Sustainable Finance Framework (SFF) on October 29, 2024, coinciding with World Sustainability Day. The framework outlines the bank’s plan to mobilise US$4.5 billion (RM20 billion) over the next five years to support various Green Projects, marking a significant step in HLB’s sustainability journey.
The SFF is designed to finance projects that contribute to a sustainable future, aligning with HLB’s broader sustainability objectives. The framework will focus on funding initiatives in several key areas, namely renewable energy, energy efficiency, green building, affordable housing, clean transportation and logistics, and waste management.
Kevin Lam, group nanaging director and CEO of HLB (pic), emphasised the importance of sustainability in the bank’s strategy: “We see sustainability as a catalyst for growth, driving positive transformation for our customers and expanding our reach to new audiences. By integrating ESG considerations into our core strategies, processes, and solutions, we strive to find common ground between our responsibilities and business needs.”
HLB has thus far pledged to achieve US$911 million (RM4 billion) in renewable energy financing by 2025 and has approved over US$797 million (RM3.5 billion) in financing to date.
The HLB SFF adheres to several key principles and standards, including the Loan Market Association (LMA) Green, Social and Sustainability-linked Loan Principles, the International Capital Market Association’s (ICMA) Green, Social and Sustainability Bond Principles, as well as the Securities Commission Malaysia’s Principles-Based Sustainable and Responsible Investment (SRI) Taxonomy.
Chow Sheng Wai, chief sustainability officer of HLB, stated: “The HLB SFF is more than just a framework for the Bank; it’s a roadmap for a greener future for our next generation. Apart from adhering to rigorous standards and aligning with global best practices, we also sought independent assessment from a Second Party Opinion Provider, RAM Sustainability, achieving a Gold rating.”
HLB has recently received recognition for its ESG efforts, including the Overall Excellence award at the Minority Shareholders Watch Group (MSWG) National Corporate Governance and Sustainability Awards and double gold awards in the financial services sector at The Edge Malaysia ESG Awards in 2022 and 2023.