Hong Leong Bank Launches Inaugural Sustainable Finance Framework
Hong Leong Bank Launches Inaugural Sustainable Finance Framework, Committing RM20 Billion to Green Projects
Kuala Lumpur, 29 OCTOBER 2024: In conjunction with World Sustainability Day observed on the last Wednesday of October, which falls on October 30 this year, Hong Leong Bank ("HLB" or the “Bank”) has unveiled its inaugural Sustainable Finance Framework ("SFF"), marking a significant milestone in the Bank's sustainability journey. The SFF aims to mobilise RM20 billion over the next five years to support Green Projects, further solidifying HLB's commitment to environmentally sustainable financing.
The framework will provide financing to support the transition towards a sustainable future, aligning with the Bank's broader sustainability objectives. It enables the financing of Green Projects related to renewable energy, energy efficiency, green building, affordable housing, clean transportation and logistics, and waste management.
"We see sustainability as a catalyst for growth, driving positive transformation for our customers and expanding our reach to new audiences. By integrating ESG considerations into our core strategies, processes, and solutions, we strive to find common ground between our responsibilities and business needs,” said Kevin Lam, Group Managing Director and CEO of HLB.
“As sustainability considerations increasingly influence global business operations, we recognise our fiduciary responsibility in supporting our customers’ transition to more sustainable models. This SFF will sharpen our focus on financing projects that support the adoption of renewable energy, energy efficiency, green buildings, circular economy, sustainable transportation and logistics, and other emerging areas within environmental sustainability, ultimately contributing to Malaysia's and the region's decarbonization goals.”
Since 2022, HLB has built a robust and impactful loan portfolio dedicated to sustainable finance. The Bank has pledged to achieve RM4 billion in renewable energy financing by 2025, and has approved over RM3.5 billion in financing to date. In addition, the Bank has also successfully financed a total of RM14.6 billion of green and affordable mortgages and RM1.2 billion of green auto loans, demonstrating HLB’s commitment to exceeding our annual targets and driving positive environmental and social impact.
Built on a foundation of best practices, HLB SFF ensures responsible and transparent sustainable finance. It adheres to key principles and standards, including:
- The Loan Market Association (LMA) Green, Social and Sustainability-linked Loan Principles
- The International Capital Market Association's (ICMA) Green, Social and Sustainability Bond Principles
- The ASEAN Taxonomy for Sustainable Finance (Version 3)
- The Securities Commission Malaysia's Principles-Based Sustainable and Responsible Investment (SRI) Taxonomy
Chow Sheng Wai, Chief Sustainability Officer of HLB, stated that the framework is a pivotal step in integrating sustainability into the Bank's core business strategy, demonstrating HLB's commitment to managing ESG risks and proactively creating value and positive impact through sustainable finance.
“The HLB SFF is more than just a framework for the Bank; it's a roadmap for a greener future for our next generation. Apart from adhering to rigorous standards and aligning with global best practices, we also sought independent assessment from a Second Party Opinion Provider, RAM Sustainability, achieving a Gold rating. This framework provides our stakeholders with confidence that we are financing a sustainable future responsibly. We're excited to collaborate with our customers on this journey to a sustainable Malaysia.”
HLB has recently been recognized for its strong commitment to Environmental, Social, and Governance (ESG) principles. The bank received the Overall Excellence award at the Minority Shareholders Watch Group (MSWG) National Corporate Governance and Sustainability Awards, demonstrating its dedication to responsible and sustainable business practices. Furthermore, HLB was a double gold award recipient in the financial services sector at The Edge Malaysia ESG Awards 2022 and 2023, further solidifying its position as a leader in ESG within the industry.
The HLB SFF and Second Party Opinion report are available at:
https://www.hlb.com.my/en/personal-banking/about-us/investor-relations/sustainability-report.html