PETALING JAYA: Malayan Banking Bhd (Maybank) has formulated its own sustainable product framework (SPF) to enable greater development of green, social and sustainable products.
Malaysia’s largest banking group by asset stated the framework will support its target to mobilise RM50bil in sustainable finance by 2025 and be implemented across the group’s Islamic and conventional products effective this month.
The framework will help Maybank’s business teams have clarity in developing green, social and sustainable products by looking at the intended use of the proceeds and solutions offered, and whether it meets Maybank’s sustainable standards throughout its life-cycle.
“We want to drive sustainable financing through our regional operations in a more meaningful and impactful manner.
“This has led us to draw clear definitions of green, social and transition activities to guide our risk, business and sales teams on eligible sustainable financing and solutions.,
“We hope that by giving our teams the right tools and clarity on perimeters of sustainable financing, this can expedite the growth of timely environmental, social and governance (ESG) financing solutions over the near term as well as enhance our efficiency in turnaround time for processing of these solutions,” its group president and CEO, Datuk Khairussaleh Ramli said.
Maybank had mobilised about RM24bil in sustainable finance as at June 30, 2022.
Over 80% of the RM10.3bil mobilised in the first half of 2022 alone was for corporate finance targeting property, infrastructure and renewable energy sectors in Malaysia and Singapore.
Maybank’s SPF is applicable to all financial products and services that integrate ESG 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.
Meanwhile, Maybank has also exceeded its 2022 targets for two of its other sustainability commitments as of the first half of 2022.
Under its second commitment of improving the lives of one million households across Asean by 2025, Maybank achieved 215,945 households as of the first half of 2022, against the full year target of 150,000 households through various community flagship programmes and efforts to drive financial inclusion among the lower income group.