by BERNAMA / pic by BLOOMBERG

RHB Banking Group has committed RM5 billion in support of green financing by 2025, through its core business activities of lending, capital markets advisory and fundraising, and investment, in line with its Sustainability Framework.

As at Sept 30, 2020, the banking group has grown its green financing portfolio to RM3.0 billion, up 6.3 per cent from Dec 31, 2019, in support of green projects which include renewable energy, green buildings, sustainable water and wastewater management.

RHB Banking managing director Datuk Khairussaleh Ramli said 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,” he said in a statement.

Khairussaleh said the banking group has put in place a clear roadmap in promoting sustainable and responsible financing within the group, by ensuring that its risk management processes integrate Environmental, Social and Governance (ESG) considerations.

The RHB Sustainability Framework sets forth the group’s approach towards embedding sustainable practices into the group’s business and operations, which 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.