KUALA LUMPUR: Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) has set a target to achieve RM10 billion in sustainable financing and RM1 billion in green financing by 2030 through its Sustainability Roadmap 2.0.
In support of the government's aspiration to achieve net-zero greenhouse gas (GHG) emissions by 2050, this launch represents a seven-year plan to address climate-related risks, aligning with the company's strategic sustainability goals.
SME Bank's acting group president and chief executive officer Datuk Dr. Mohammad Hardee Ibrahim, said that SME Bank is the first development financial institution (DFI) in Malaysia to introduce a seven-year Sustainability Roadmap 2.0.
"This plan highlights SME Bank's focus on implementing deeper environmental, social, and governance (ESG) practices across key business aspects of micro, small, and medium enterprises (MSMEs). "
"It is in line with the government's aspiration to achieve net-zero GHG emissions by 2050," he said at the launch ceremony of the roadmap here today.
Mohammad Hardee added that the roadmap will be supported by the company's innovative financing proposals for the RM100 million sustainability fund allocated to SME Bank, as announced in the 2025 Budget.
Meanwhile, Deputy Minister of Entrepreneur Development and Cooperatives, Datuk R. Ramanan, said SME Bank's launch of the Sustainability Roadmap 2.0 targets carbon-neutral operations by 2030.
"This is a step forward in strengthening Malaysia's role as a nation committed to the net-zero carbon agenda by 2050.
"This effort also reinforces our position among Asean countries as a leader in sustainable and green financing," he said.
He added that the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) fully supports proactive efforts such as this launch.
"Such initiatives not only contribute to economic sustainability but also empower MSME entrepreneurs towards higher competitiveness on a global level.
"I hope that with this launch, more financial institutions and entrepreneurs will join in making sustainability the foundation for future success," he said.
The plan focuses on three phases over the next seven years - regulatory alignment, operational integration of sustainable practices, and optimisation for maximum impact while anchored on three pillars of responsible banking, responsible business practics and creating social impact.