KUALA LUMPUR: Bank Islam Malaysia Bhd has achieved RM4.8 billion in green financing as at September this year, surpassing its initial target of RM4 billion.
The bank said the milestone highlights its role in advancing Malaysia's green economy.
Building on the success, Bank Islam has set an ambitious target to grow its sustainable finance portfolio to RM28 billion by the end of 2025.
"Our commitment to green finance goes beyond mere regulatory compliance - it is about creating positive change that will shape Malaysia's economy for generations.
"By focusing on sustainable financing solutions, we are not just supporting industries essential to Malaysia's future, such as renewable energy and manufacturing, but also ensuring that we protect the environment for future generations," said group chief executive officer Datuk Mohd Muazzam Mohamed.
Bank Islam recently became the first bank in Malaysia to certify 86 certified green finance advisors through a comprehensive training program developed in collaboration with the Asian Banking School.
A key element of Bank Islam's sustainability strategy is the Ihsan Sustainability Investment Account (ISIA) launched in 2023.
ISIA represents a transformative approach to investing in a diversified portfolio of non-retail assets that contribute to the United Nations Sustainable Development Goals (SDGs) and align with Bank Negara Malaysia's climate change and principle-based taxonomy.
Another focus of Bank Islam's green finance efforts is its support for Malaysia's transition to clean energy.
"The bank plays a central role in facilitating renewable energy projects such as solar and hydropower, directly contributing to the National Energy Transition Roadmap, which aims for net-zero emissions by 2050," it said.
Bank Islam's approach also includes a robust risk-assessment process, which ensures that every financing decision is aligned with shariah-environmental, social and governance principles.
The bank thoroughly evaluates customer profiles, management practices and sustainability certifications before approving financing, it said.