Scope 3 financed emissions baseline established by Maybank

KUALA LUMPUR – Malayan Banking Berhad (Maybank) announced the establishment of its Scope 3 financed emissions baseline as well as outlined transition strategy which it says will shape its future business portfolio.

In a recent statement, it said that with the establishment of both the Scope 3 financed emissions baseline and transition strategy, Maybank will be the first bank in the country to do so.

The Edge reported that Maybank stated that doing so would bring the bank closer to its goal of achieving a net-zero carbon position by the year 2050, as it begins to map out its financed emissions reduction targets against its timelines.

It explained that these financed emissions consist of indirect emissions that are related to underwriting, investments, loans, and other financial services.

“Financed emissions are a necessary input for climate scenario analysis, which is essential for managing climate-related transition risks and opportunities,” the statement added.

According to the Maybank group president and CEO, Datuk Khairussaleh Ramli, establishing the Scope 3 baseline financed emissions is a crucial part to achieving a net-zero carbon position. This includes analysis on some of the main drivers contributing to emissions, the design of a plan to reduce these emissions against a timeline, as well as the implementation of the plan.

“This process has enabled us to classify our emissions based on geography, asset classes, and sectors; allowing us to concentrate our efforts on engaging customers who can have the largest long-term impact on decreasing our financed emissions.

“The next step is to engage and collaborate with our customers and important stakeholders, including regulators and government agencies, to carry out our transition strategy,” he stated.

In order to establish the financed emissions baseline, Maybank had adopted the “Global GHG Accounting and Reporting Standard for the Financial Industry by Partnership for Carbon Accounting Financials” which focuses on the calculation of emissions for six different asset classes. These are the Project Finance, Listed Equities & Corporate Bonds, Business Loans & Unlisted Equities, Commercial Real Estate, Mortgages, and Motor Vehicle Loans.

The statement explained that the first three asset classes account for approximately 80% of Maybank’s financed emissions.

Meanwhile, sectors such as energy, oil and gas, agriculture, utilities, and construction were classified as the top five which contributed the most to Maybank’s financed emissions with over 97% of them originating from its home markets of Malaysia, Singapore, and Indonesia.

The statement added that over the medium term, Maybank’s transition strategy will concentrate on the top five sectors mentioned above.

“The objective will be to help customers decarbonize, expedite the rollout of distinctive investments in sustainable financing, and lead the industry in developing capabilities and solutions,” Khairussaleh said.

The statement added that Maybank has committed to reaching a carbon neutral position for Scopes 1 and 2 financed emissions by the year 2030 and reaching a position with net-zero carbon equivalent by 2050.

It reported that as of June 30 this year, the bank has already reduced 41.1% of its Scopes 1 and 2 financed emissions, relative to its 2019 baseline, through the introduction of the Malaysia Renewable Energy Certificates and the implementation of numerous energy saving programmes.

These programmes include the installation of LED lighting throughout its operations, the modernisation of air conditioning units, and the installation of solar panels in chosen locations in its home markets.

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