KUALA LUMPUR (July 18): Malayan Banking Bhd (Maybank) has received an "AA" rating from MSCI ESG Ratings for the second consecutive year.

In a statement on Monday (July 18), Maybank said the leadership rating of "AA" places it among the top 36% of 189 diversified banks rated globally based on the MSCI ACWI Index (All Country World Index), of which only 4% achieved the highest rating of "AAA".

The rating, it said, was based on an assessment of Maybank’s sustainability policies and practices covering seven broad areas, including financing environmental impact, consumer financial protection, and human capital development.

Maybank group president and chief executive officer Datuk Khairussaleh Ramli said the bank's sustainability commitments are part of its journey to realise the ambition of becoming a regional environmental, social and governance (ESG) leader.

“We are accelerating all efforts through our M25 Plan to help drive positive change in the markets we operate,” he added.

Khairussaleh noted that Maybank had been making good progress on its four M25 sustainability commitments, having already achieved its target for the financial year ending Dec 31, 2022 (FY22) of reducing 40% of its Scope 1 and 2 emissions against its 2019 baseline.

The achievement followed the commencement of the Malaysia Renewable Energy Certificate (mREC) in January 2022 and roll-out of various energy efficiency programmes in 2022 in the bank's home markets, such as Malaysia and Singapore.

The group has committed to achieving a carbon neutral position for Scope 1 and 2 emissions by 2030, and net zero carbon equivalent position by 2050, according to him.

According to him, Maybank is identifying similar REC or renewable energy power purchase opportunities to cover its regional footprint to meet the remaining 60% reduction target from its 2019 baseline.

To drive sustainable behaviour and practices among Maybank employees in reducing indirect carbon emissions under Scope 3, the group has also implemented an internal carbon pricing tracking mechanism in 2021 for business travel, and has been reimbursing employees for electric vehicle-related expenses since the first quarter ended March 31, 2022 (1QFY22) to support the use of energy-saving vehicles, he added.

In the area of sustainable finance, Khairussaleh said Maybank had set a target of RM9 billion for FY22, with some RM3 billion already achieved as of the first quarter, including a RM300 million sustainability-linked bond for Hap Seng Management Sdn Bhd.

Under the commitment to improving the lives of one million households across ASEAN by 2025, Maybank has set a target of 150,000 households for the current financial year.

“As of 1QFY22, some 56% or 82,000 households had been positively impacted through financial solutions offered, such as low-cost housing mortgages, two-wheeler financing and microinsurance products for underserved groups,” the bank said.

The group had also recorded more than 449,000 sustainability hours clocked by Maybank employees as of 1QFY22.

A key effort rolled out from April 2022 has been the “Green Lab”, a staff engagement and activation programme encouraging employees to adopt Maybank’s sustainability agenda in their day-to-day operations and lives.