KUALA LUMPUR – RHB Banking Group plans to grant RM1 billion through its newly-launched Sustainability Financing Programme, a green financing product bundling programme catering to the needs of both small and medium enterprise (SME) and retail customers, by 2025.
The group said the four pillars of the SFP are Green Energy, Green Buildings, Green Process and Green Products, which aim at promoting sustainable development and supporting the nation’s transition to a low-carbon economy through green financing solutions that integrate environmental, social and governance (ESG) criteria.
It said the SFP adopts a more holistic approach to green financing, addressing the needs of both businesses and individuals through various financing solutions.
“The Green Energy financing solution promotes the adoption of renewable energy through the financing of solar panels for business and residential premises, while Green Building promotes the adoption of environmental considerations and eco-friendly features in the design, construction, operation and maintenance of buildings.
“Green Process, on the other hand, is aimed at reducing environmental impacts through the enhancement in processes, equipment and machinery towards supporting customers’ decarbonisation, while Green Products promotes the purchase of eco-friendly products such as hybrid, plug-in hybrid, and electric vehicles,” it said in a statement on September 28.
Through the SFP bundling solutions, customers benefit from preferential rates and longer loan or financing tenure as well as relevant tax incentives provided under the Green Investment Tax Allowance and Green Income Tax Exemption on their chosen facilities.
Managing director and chief executive officer Datuk Khairussaleh Ramli said financial institutions play a vital role in delivering the country’s Intended Nationally Determined Contribution (INDC) which embodies efforts to reduce the country’s greenhouse gas emissions intensity of GDP by 45% by 2030 relative to its emission intensity of GDP in 2005.
“Guided by our Sustainability Framework, the group continues to engage and nurture our customers towards adopting sustainable practices in their business and operations, and create awareness among consumers on the importance of choosing eco-friendly products or sustainable financing solutions for a healthier living environment,” he added.
As at May 31, 2021, the group’s green financing commitment stood at RM3.25 billion, of which about 20% is in renewable energy projects.
As part of the wider effort to align with the RHB Sustainability Framework, the group will not be pursuing opportunities or provide financing for any new thermal coal mine projects and coal fired power plant projects with effect from January 2022.
More information on the RHB Sustainability Financing Programme is available at www.rhbgroup.com/greenfinancing/index.html.