KUALA LUMPUR: RHB Banking Group has committed RM5 billion in support of green financing by 2025, group managing director Datuk Khairussaleh Ramli said.
This is through the group's core business activities of lending, capital markets advisory and fundraising, and investment, in line with its Sustainability Framework.
The framework sets forth the group's approach towards embedding sustainable practices into the group's business and operations.
It is part of its sustainability vision of building a sustainable future, premised on three key pillars of "Sustainable and Responsible Banking, Embedding Good Practices and Enriching and Empowering Communities".
As at September 30 this year, the group grew its green financing portfolio to RM3.0 billion, up 6.3 per cent from December 31 last year, in support of green projects which include renewable energy, green buildings, sustainable water and wastewater management.
"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. Through our RM5 billion commitment for green financing by 2025 in the form of lending, capital markets advisory and fundraising, and investment activities, we hope to play a bigger role in supporting the growth of the green economy by encouraging our customers to adopt more sustainable business practices," said Khairussaleh in a statement today.
Towards this, RHB Investment Bank Bhd, the investment banking arm of RHB Group, was recently awarded the Green Deal of the Year at the Asian Banking & Finance Corporate & Investment Banking Awards 2020 for arranging a RM200 million Asean Green SRI Sukuk programme.
The maiden issuance under the programme was also awarded the Best Asean Green SRI Sukuk at The Asset Triple A Islamic Finance Awards 2020.
"We have put in place a clear roadmap in promoting sustainable and responsible financing, by ensuring that our risk management processes integrate Environmental, Social and Governance (ESG) considerations.
"On the other hand, we are also mindful of the stage of the development of the country and the need to be practical in our adoption of ESG considerations," he said.