RHB Banking Group has plans to increase its sustainable finance target to RM50 billion by 2026, more than doubling its previous target of RM20 billion, according to The Sun.
Announcing the new target at the RHB Sustainability Media Day, Group Managing Director and CEO Mohd Rashid Mohamad highlighted the wide-ranging potential for sustainable financing, including international projects.
He emphasised that the financial sector plays a crucial role in directing investments toward eco-friendly and low-carbon initiatives.
As of the end of FY2023, RHB had already achieved RM23.8 billion in sustainable financial services, exceeding its original goal for 2026.
This includes RM11.3 billion invested in green projects such as renewable energy and energy efficiency enhancements.
RHB’s approach targets five key sectors: energy supply, palm oil, oil & gas, property & construction, and transportation.
These areas represent almost 60% of the group’s financial exposure and account for over 80% of its financed emissions.
The bank is committed to reducing emissions in these sectors by 20% by 2030 and aims for a 96% reduction by 2050.
Furthermore, RHB plans to dedicate 40% of its portfolio to Green Financial Services, supporting businesses committed to achieving carbon neutrality.
The group engages clients based on their Environmental, Social, and Governance (ESG) maturity and decarbonisation needs.
In its pursuit of carbon neutrality, RHB has made significant progress, achieving a 43% reduction in operational greenhouse gas emissions from its 2016 baseline.
The bank aims to reach a 45% reduction by 2026 and complete carbon neutrality by 2030 through both internal measures and carbon offset initiatives.
Supporting small and medium enterprises (SMEs) remains a cornerstone of RHB’s strategy.
In FY2023, the bank collaborated with Tenaga Nasional Berhad (TNB) to promote sustainable practices among SMEs, impacting over 800 businesses through ESG-focused roadshows.
Additionally, RHB’s SME Green Financing Solutions and the Low Carbon Transition Facility (LCTF) mobilised RM258.8 million in 2023.
Recognising the necessity of collective efforts, RHB will continue to work with clients, partners, employees, and the community at large.
The bank will also collaborate with government bodies and regulatory authorities to meet its Net Zero 2050 goals.
Featured image credit: Edited from Freepik
