PETALING JAYA: Malayan Banking Bhd (Maybank) has received an AA rating by MSCI ESG Ratings for the second consecutive year, placing Maybank among the top 36% of 189 diversified banks rated globally based on the MSCI ACWI Index (All Country World Index).
The rating was based on an assessment of Maybank’s sustainability policies and practices covering seven broad areas namely financing environmental impact, consumer financial protection, human capital development, access to finance, privacy & data security, corporate governance and corporate behaviour.
The ratings report stated among others, that the AA score comes on the back of Maybank’s strong consumer protection practices, including having a complaint hotline and loan modification options for customers with financial difficulties. The report added that the group’s customer complaint mechanism's effectiveness ranks one of the best among industry peers.
Additionally, it highlighted that Maybank’s loan book exposure to environmentally intensive industries was low relative to peers with just around 4.9% of Maybank’s loans being exposed to highly environmental-intensive industries (agriculture, metals & mining and utilities) as of May 2021. It noted the bank’s commitment to deny financing for blacklisted activities not aligned with its values, as well as new coal activities, while transitioning to a renewable energy mix with existing borrowers over the medium to long term, as well as commitment to mobilise RM50 billion in sustainable financing by 2025.
Group president & CEO Datuk Khairussaleh Ramli said Maybank has been making good progress on its four M25 Sustainability commitments, having already achieved its FY2022 target of reducing 40% of its Scope 1 and 2 emissions against its 2019 baseline.
Maybank’s three other M25 sustainability commitments are to mobilise RM50 billion in sustainable finance by 2025, improve the lives of 1 million households across Asean by 2025, and achieve 1 million hours per annum on sustainability and deliver 1,000 significant SDG-related outcomes by 2025.
In the area of sustainable finance, the group has set a target of RM9 billion for FY22 with some RM3 billion already achieved as of Q1’22 including a RM300 million sustainability-linked bond for Hap Seng Management Sdn Bhd.
Meanwhile, RHB Banking Group was also recognised with four awards for its efforts in integrating ESG considerations across its business and decision-making process through its community engagement/corporate social responsibility initiatives, corporate governance practices, as well as in promoting sustainable and inclusive growth.
The group was awarded “World’s Best Bank for Corporate Responsibility” and “Asia’s Best Bank for Corporate Responsibility” at the Euromoney Awards for Excellence 2022 ceremony. The group was also recognised at the inaugural 7th Global Good Governance (3G) Awards 2022 ceremony , where it received the “3G Excellence in Corporate Governance Award 2022”. It was also named winner of the “3G Sustainable Banking Award 2022”.