Bank Islam has achieved a milestone in its commitment to sustainable development, surpassing its initial target of RM4 billion in green financing by reaching RM4.8 billion as of September 2024. This accomplishment, achieved well ahead of its 2025 goal, underscores the bank’s pivotal role in driving Malaysia’s green economy and fostering environmental stewardship through Shariah-compliant financial solutions.

Building on this achievement, Bank Islam has set an ambitious goal to expand its sustainable finance portfolio to RM28 billion by the end of 2025. This forward-looking strategy reflects the bank’s dedication to accelerating Malaysia’s transition towards a greener and more inclusive economy while aligning with global sustainability standards.

At the heart of Bank Islam’s sustainability strategy lies the Ihsan Sustainability Investment Account (ISIA), launched in 2023. The ISIA represents an innovative approach to financing that supports a diversified portfolio of non-retail assets aligned with the United Nations Sustainable Development Goals (SDGs) and Bank Negara Malaysia’s Climate Change and Principle-Based Taxonomy (CCPT).

By actively supporting solar and hydropower projects, the bank also contributes significantly to Malaysia’s National Energy Transition Roadmap (NETR), which aims for net-zero emissions by 2050. Alongside renewable energy, the bank’s financing efforts extend to other critical sectors, including manufacturing and plantations, exemplifying its integrated approach to achieving sustainable growth while adhering to global best practices.

The bank’s green financing efforts extend beyond environmental sustainability, serving as a catalyst for inclusive economic development. Through targeted initiatives, Bank Islam supports micro, small, and medium-sized enterprises (MSMEs), agribusinesses, and underserved communities, fostering rural development, creating jobs, and enhancing livelihoods.

Its group CEO Dato’ Mohd Muazzam Mohamed said the bank’s commitment to green finance goes beyond regulatory compliance, aiming to create positive change that will shape Malaysia’s economy for generations.

““By focusing on sustainable financing solutions, we are not just supporting industries essential to Malaysia’s future, such as renewable energy and manufacturing, but also ensuring that we protect the environment for future generations,” he said. 

To further cement its leadership in sustainability, Bank Islam recently became the first bank in Malaysia to certify 86 Certified Green Finance Advisors (CGFAs) through a comprehensive programme in collaboration with the Asian Banking School (ABS).

• TAGS:
• Bank Islam
• CCPT
• Dato’ Mohd Muazzam Mohamed
• Green Financing
• National Energy Transition Roadmap
• NETR
• Sustainable Financing
• United Nations Sustainable Development Goals