KUALA LUMPUR: RHB Banking Group plans to raise its allocation for sustainable financial services to RM50 billion by 2026.
Its group managing director and group chief executive officer Mohd Rashid Mohamad said the bank financed a total of RM23.8 billion sustainable projects for the financial year ended Dec 31, 2023 (FY23), surpassing its original goal of RM20 billion by 2026.
"Of this, RM11.3 billion was directed towards green activities, including renewable energy projects and energy efficiency solutions, contributing towards our goal of achieving net zero by 2050," he said.
Mohd Rashid said the allocation increase is due to heightened commitment from customers.
"We also see a lot of opportunity with the government coming up with the National Energy Transition Roadmap (NETR) program. From the regulatory perspective, we are confident we can achieve the target," he added.
Today, RHB unveiled an elaborate strategy to achieve net zero emissions by 2050, aligning with ASEAN's fair and conscientious transition to a low-carbon economy.
In continuation of its 5-Year Sustainability Strategy and Roadmap (2022-2026), RHB has introduced a new initiative called Pillar 2, 'Committed to Achieving Net Zero by 2050', which broadens the bank's existing climate-centric efforts.
The bank has set up a three-part strategy aimed at turning the commitment into tangible steps.
These include lowering financed emissions in five key sectors, promoting expansion in green financial services, supporting businesses dedicated to carbon neutrality, and integrating sustainable and low-carbon practices into its own operations.
"Our net zero pathway is a commitment to the communities we serve, the environment, and the future, ensuring progress happens for everyone.
"However, we recognise that our journey to achieving net zero cannot be carried out in silo. We will continue to engage with our clients, business partners, employees, and the broader community to embark on our net zero journey together.
"We will collaborate with governmental bodies, regulatory authorities and other stakeholders in order to create a scalable impact, while at the same time, be guided on the progress and development of government policies, directives and incentives towards achieving our net zero 2050 commitment," Mohd Rashid said.