KUALA LUMPUR: Maybank has become the first bank in Malaysia to establish a Range 3 financed exhausts baseline, identifiying a transition strategy which will shape its future company portfolio.
This particular brings the bank a step closer to its focus on of a net zero carbon position simply by 2050 as it starts to chart out the financed emissions decrease targets against timelines, the bank said in a statement today.
“For banks, borrowed emissions are roundabout emissions related to loans, underwriting, investments and any other financial services. Financed emissions are an essential input for climate scenario analysis, which is crucial in controlling climate-related transition risks and opportunities.
“In undertaking this particular exercise to establish its financed emissions baseline, Maybank adopted the Global Greenhouse Gas (GHG) Accounting and Reporting Standard for the Financial Industry by Partnership for Carbon Human resources Financials, ” this said.
The financial institution said this technique focuses on calculating the particular emissions for 6 asset classes — listed equities plus corporate bonds; business loans and unlisted equities; project finance; industrial real estate; mortgages plus motor vehicle loans.
According to Maybank, outlined equities and business bonds, business loans plus unlisted equities plus project finance constitute close to 80 percent of the group’s financed emissions.
It said the top five sectors contributing to the majority of Maybank’s financed emissions are power, gas and oil, agriculture, utilities and construction, while 97 per cent of Maybank’s financed emissions come from its home markets in Malaysia, Singapore and Indonesia.
“By calculating and analysing the financed emissions data, Maybank can now progress toward performing quantitative situation analysis to design paths in reducing its financed emissions in line with its risk appetite and targets while engaging customers to back up them to achieve their particular desired outcomes and commitments, ” it said.
Maybank group president plus chief executive officer, Datuk Khairussaleh Ramli said the important thing to achieving the net zero co2 position include creating the bank’s Range 3 baseline financed emissions, analysing the primary drivers of the exhausts, designing a plan to reduce these emissions against a timeline and lastly, implementing the plan.
“This exercise has allowed us to divided our emissions simply by geographies, asset classes and sectors, which then allows us to focus our efforts on participating with the customers that can have the greatest effect on reducing our borrowed emissions over the extensive.
“Our next step is to engage plus collaborate with our clients and key stakeholders including
government bodies and ministries in order to implement our transition strategy, ” he said. – Bernama