RHB Banking Group Pledges RM5 Billion In Support Of Green Financing By 2025

Alex Cheong Pui Yin

13th November 2020 - 2 min read

(Image: The Borneo Post)

RHB Banking Group has pledged to invest RM5 billion in support of green financing by 2025, which is in line with the bank’s existing sustainability framework. This will be carried out through core business activities, including lending, capital markets advisory and fundraising, as well as investment activities.

According to the group managing director of RHB, Datuk Khairussaleh Ramli, the bank is striving to support Malaysia’s aspiration to transition to a low-carbon and climate-resilient economy. He also said that with the RM5 billion commitment, RHB hopes to play a bigger role in advocating the growth of the green economy within the country by encouraging its customers to adopt more sustainable business practices.

“Promoting the growth of the green economy involves channelling capital towards supporting sectors and economic activities that can make the biggest difference in the fight against climate change. This also requires us to nurture businesses, and stimulate innovation and development of environmentally friendly products and services,” said Khairussaleh.

(Image: Berita Harian)

Khairussaleh further elaborated that RHB has established a clear roadmap in promoting sustainable and responsible financing within the group. The roadmap ensures that the bank’s risk management processes comply with environmental, social, and governance (ESG) regulations and standards.

“On the other hand, we are also mindful of the stage of development of the country and the need to be practical in our adoption of ESG considerations. Our role within the community goes beyond simply advocating commitment to green financing, but also ensuring socio economic wellbeing of our communities,” explained Khairussaleh.

As of 30 September 2020, RHB had expanded its green financing portfolio to RM3 billion, with green projects including renewable energy, green buildings, sustainable water, and wastewater management. The figure followed an increase of 6.3% since 31 December 2019.

(Sources: The Sun Daily, The Star)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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