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Hong Leong Bank uses ESG for business customers' credit assessment

KUALA LUMPUR: Hong Leong Bank Bhd (HLB) has introduced Environmental, Social and Governance (ESG) framework for credit evaluation of its SME and corporate customers.

HLB said the framework not only underlines HLB's commitments towards building a vibrant and sustainable ecosystem in the communities we operate in, but also promotes adoption of sustainable business strategies and practices among its customers.

"HLB worked closely with the Jeffrey Sachs Center on Sustainable Development at Sunway University to develop and roll-out a robust training module for its relationship and credit risk managers.

"It is aligned with the bank's ESG framework incorporating Bank Negara Malaysia's direction in the greening of business activities as well as transition towards a low carbon and climate resilient economy," it said today.

HLB group managing director and chief executive officer Domenic Fuda said as a bank with over 110 years of rooted history in Malaysia, it had always embraced its value of being here for the long term, long before the concept of sustainability was introduced in business practices.

"By integrating ESG factors to guide us in sustainable lending and financing, we hope to create direct and positive impact to our environment and socio-economy as well as identify emerging opportunities and manage emerging risks more effectively," he added.

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