RHB Bank honoured at ESGBusiness Awards for sustainable financing initiatives
It has approved a total of approximately RM1,388 million in SME ESG financing as of September 2023.
Financial services company RHB Banking Group clinched the Renewable Energy Adoption Award - Malaysia category win at the coveted ESGBusiness Awards for its commitment and dedication to sustainable financing for small and medium enterprises (SMEs).
As part of its aspiration to mobilise RM20 billion in sustainable financial services by 2026, the company launched SME Sustainable Financing schemes to address their specific needs, offering financial solutions across four pillars: green energy, green buildings, green products, and green processes.
It also plays a pivotal role in empowering and enabling businesses in their efforts to transition towards low-carbon practices and adopt sustainable business operations. The company has rolled out environmental, social, and governance (ESG) capability-building programmes to increase ESG awareness and understanding amongst frontliners so that they are able to better support customers’ needs. Additionally, its in-house training incorporates an introduction to sustainability module to ensure that all employees possess this knowledge.
These efforts are crucial to ensuring that frontliners are equipped with a robust understanding of evolving ESG trends and regulations and kept well abreast of SMEs’ needs in regard to embracing sustainable practices.
Meanwhile, RHB has also organised ESG roadshows with industry experts to instil awareness and ensure that market players are well educated. The roadshows cover topics such as the basics of ESG, and how SMEs can kickstart their transition towards sustainable business practices, including selecting business advisory services and sustainable platforms for them to start. The roadshows also highlight RHB’s sustainable finance offerings for SMEs.
To date, the company has organised eight ESG roadshows with trade associations and ESG experts nationwide. Over 300 SMEs opined that such roadshows elevated their knowledge of ESG and provided an avenue for them to deepen their understanding in this area.
“In a nutshell, the Bank is on track to mobilise RM20 billion by 2026 as part of its Sustainability Strategy and Roadmap, and is looking to revise this commitment upwards to maximise value creation for its customers. We are optimistic and committed to supporting businesses in their ESG transition journey," said Mohd Rashid Mohamad, Group Managing Director of RHB Banking Group.
As part of its effort to support business transitions, RHB has also leveraged the Bank Negara Malaysia Low Carbon Transition Facility, which supports the adoption of renewable energy facilities in SMEs. As of September 2023, RHB had mobilised almost RM188 million in sustainable financing via this facility within six months since the launch of the initiative.
In terms of the Group’s overall Sustainable Financial Services, as of September 2023, RHB Bank has approved approximately RM1,388 million of SME ESG financing, where renewable energy financing amounted to RM161 million, covering approximately 12% of its total SME ESG financing.
ESGBusiness Awards honours businesses that demonstrate outstanding commitment and achievement in ESG practices, as well as those leading the way in building a sustainable future.
The ESGBusiness Awards is presented by ESGBusiness. To view the full list of winners, click here. If you want to join the 2024 awards programme and be acclaimed for your company's outstanding commitment and achievement in environmental, social, and governance (ESG) practices, please contact Julie Anne Nuñez at [email protected].
