Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion
• Governance
• Community Empowerment
• Financial Inclusion

Environmental Achievements

• Became the first bank in Malaysia to purchase Malaysia Renewable Energy Certificates (mRECs) equivalent to 70% of our Malaysian operations’ Scope 2 emissions
• Commenced the Climate Resiliency Project to quantify Scope 3 financed emissions

Social Achievements

• Improved the lives of 502,759 households across ASEAN through financial services and community programmes
• Launched the Maybank Group Mental Health Policy
• Launched Sama-Sama Lokal platform, processing over RM18.6 million worth of orders

Governance Achievements

• Introduced the Maybank Group Sustainability Framework
• Institutionalised the Board Sustainability Committee and the EXCO Sustainability Committee
• Introduced the Maybank Group ESG Risk Management Framework

Climate Goals & Targets

Environmental Challenges

• Internal challenges: equipping employees with ESG skills, ensuring access to resources, establishing robust structures
• Customer challenges: not all customers are ready for ESG conversations

Mitigation Strategies

• Capacity building for employees, developing partnerships with customers, providing strategic advisory support

Supply Chain Management

Responsible Procurement

• ESG criteria for suppliers by 2030
• 40% of suppliers from SMEs or minority groups by 2025

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Green financing, energy efficiency, sustainable investments, renewable energy usage

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD, UN SDGs

Third-party Assurance: SIRIM QAS International Sdn. Bhd. and PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

Initiatives contribute to various SDGs through community development, financial inclusion, green finance, and responsible governance.

Sustainable Products & Innovation

• Green loans, green bonds, sustainable bonds, sukuk, sustainability-linked loans, green mortgages, green renovation loans, solar panel financing, hybrid vehicle financing, electric vehicle financing

Awards & Recognition

• PwC Malaysia’s Building Trust Awards 2021
• Fund Launch of the Year (Malaysia) 2021 by Asia Asset Management

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Issues (particularly foreign labor)
• Governance

Environmental Achievements

• PETRONAS capped group emissions for Malaysian operations at 49.5m tonnes of CO2e.
• Tenaga committed to reduce emission intensity by 25% and cut coal capacity by 50% by 2035.
• Bursa Malaysia committed to achieving carbon neutrality by 2022 and net-zero emissions by 2050.

Social Achievements

• Top Glove resolved US CBP forced labor allegations and resumed exports to the US.
• Sime Darby Plantation reimbursed foreign workers for recruitment fees and improved recruitment procedures.
• Many companies increased female representation in workforce and management.

Governance Achievements

• Bursa Malaysia implemented Enhanced Sustainability Reporting Requirements (ESRR).
• Securities Commission launched Sustainable and Responsible Investment-linked (SRI-linked) Sukuk Framework.
• Bank Negara Malaysia launched Malaysia Financial Sector Blueprint 2022-2026 focusing on sustainability.

Climate Goals & Targets

Environmental Challenges

• Continued negative foreign labor-related newsflow.
• US Department of State downgraded Malaysia to Tier 3 in its annual Trafficking in Persons (TIP) Report.
• Data security issues for some financial institutions.

Mitigation Strategies

• Government and corporate efforts to improve foreign labor regulations and oversight.
• Companies implementing sweeping changes in governance and operations to address forced labor allegations.
• Financial institutions strengthening risk management processes and improving disclosures.

Supply Chain Management

Responsible Procurement

• Vendor code of conduct (MR DIY)
• Supplier sustainability requirements (various companies)

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity (Heineken)
• Natural disasters (plantations)

Transition Risks

• Regulatory changes (various sectors)
• Market shifts (energy sector)

Opportunities

• Renewable energy investments (various companies)
• Development of energy-efficient products (various companies)

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• Bio-friendly products (Petronas Chemicals)
• Recycled PET pellets (Dialog)

Awards & Recognition

• Asset ESG Corporate Awards (Public Bank)
• Bloomberg Gender Equality Index (Top Glove)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment

Environmental Achievements

• Significant reduction of 49% in Scope 1 and Scope 2 GHG emissions, with a total absolute amount of 62,761 tCO2e for FY2023.

Social Achievements

• Launched the Maybank Group Emissions Calculator, to increase carbon footprint awareness and collaborate with clients in accelerating their journey towards net zero emissions
• Developed the Client Engagement Guidebook for our client-facing employees to have more meaningful dialogues with clients

Governance Achievements

• Incorporated sustainability key performance indicators (KPIs) in the remunerations of senior management since 2022.
• Established the Maybank Group ESG Risk Management Framework and the Maybank Group Climate Risk Policy

Climate Goals & Targets

Environmental Challenges

• Transition risks (Changes in Government or Regulatory Policies, Technological Advancements, Changes In Market Demand or Sentiment, Carbon Tax)
• Physical risks (Acute Physical Risk, Chronic Physical Risk)
• Liability risks

Mitigation Strategies

• Integrated ESG risk management strategies into the Group’s enterprise risk management practices
• Developed the Maybank Group Climate Risk Policy
• Integrated Risk Acceptance Criteria in financing, investment and underwriting decisions
• Conducted ESG exposure measurement, aggregation and reporting
• Performed stress testing and scenario analysis
• Established ESG risk screening and assessment
• Developed physical risk adaptation plan following a complete risk assessment exercise
• Implementing MAHB Group Climate Risk Policy requirements – climate risk assessment and management

Supply Chain Management

Responsible Procurement

• Advocating sustainable practices to suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Storms
• Fires
• Heatwaves
• Rising sea levels
• Reduced water availability
• Loss of biodiversity
• Changes in land and soil productivity

Transition Risks

• Changes in Government or Regulatory Policies
• Technological Advancements
• Changes In Market Demand or Sentiment
• Carbon Tax

Opportunities

• Transition Finance
• Carbon Credit Producing Projects
• Renewable Energy
• Food Security and Sustainable Farming
• Electric Vehicles

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, ISSB S1 General Requirements for Disclosure of Sustainability-related Financial Information, ISSB S2 Climate-related Disclosures, TCFD, Bank Negara Malaysia’s (BNM) Climate Risk Management and Stress Testing guidelines, SASB Sector Specific Disclosures, Greenhouse Gas (GHG) Protocol, PCAF, Bursa Malaysia Main Market Listing Requirements, Malaysian Code on Corporate Governance

Third-party Assurance: SIRIM QAS International Sdn Bhd

Sustainable Products & Innovation

• Maybank Group Emissions Calculator
• Client Engagement Guidebook
• Maybank Group Sustainable Product Framework
• Maybank Group Transition Finance Framework
• myimpact Ikhwan Mastercard Platinum Credit Card-i
• Solar Energy Shortfall Insurance (SESI)