Public Bank revealed that it has plans to develop a sustainability roadmap in the near future, which is set to focus on multiple core business segments. These include domestic consumer banking, small and medium-sized enterprises (SMEs) lending, wealth management, transactional services, capital market operations, and international operations.

“(We are) focusing on synergistic growth (and we plan to) explore the development of more green and sustainable banking solutions,” the bank shared at a conference, adding that it is committed to the Task Force on Climate-Related Financial Disclosures (TCFD). Briefly, the TCFD is a framework developed in 2015 that organisations can tap into when providing climate-related disclosures and information to their stakeholders.

To date, Public Bank has already established several key commitments with regard to sustainability, including achieving carbon neutrality in greenhouse gas emission by 2030 and net zero greenhouse gas emission by 2050. Additionally, it aims to mobilise RM40 billion in ESG (environmental, social, and governance) financing by 2025, of which RM25 billion will be allocated for energy efficient vehicles. By the end of June 2022, about RM20 billion has been approved for energy efficient vehicles financing, while more than RM1 billion was mobilised for affordable home financing.

Furthermore, Public Bank also identified 72 ESG-friendly sectors and 12 social agenda loan purposes in the first half of 2022 (1H22). This is in a bid to encourage its branches to promote ESG lending. The bank also upgraded an internal credit system based on Bank Negara Malaysia’s (BNM) Climate Change and Principle-based Taxonomy, allowing the bank to better classify new loans that contribute to climate change mitigation and adaptation.

Other notable efforts include launching green financing facilities to provide preferential rates for loans with environmental-friendly objectives, as well as offering BNM’s Low Carbon Transition Facility to encourage the adoption of sustainable and low carbon practices among SMEs. Internally, Public Bank also launched sustainable financing for its staff members, offering lower interest rates for the financing of electric vehicles (EV), hybrid vehicles, and solar panels.

(Source: The Edge Markets)

• TAGS:
• Bank Negara Malaysia
• BNM
• Climate Change and Principle-based Taxonomy
• ESG Financing
• Green Financing
• Low Carbon Transition Facility
• Public Bank
• Sustainable Financing
• Task Force on Climate-Related Financial Disclosures (TCFD)