Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Banking
• Conscious Self-Conduct
• Positive Societal Impact

Environmental Achievements

• Reduced carbon footprint by 11% in FY2020
• Reduced fuel consumption by 17% by rationalising vehicle fleet from 37 to 30 vehicles and investing in hybrid cars
• Replaced conventional lights with LED lighting system in 17 branches (aiming for all branches by FY2021)
• Upgraded RAMSus Environment Rating from Bronze to Silver

Social Achievements

• Invested RM1.8 million in community outreach programmes, including AmKasih E-Wallet CSR Programme
• Contributed RM576,320 to COVID-19 relief efforts (MERCY Malaysia and food for healthcare workers)
• Improved employee retention rate to >96%
• Provided employees with an average of 66 training hours each
• Invested RM24.7 million in employee training and development programmes

Governance Achievements

• Improved MSCI ESG rating from BBB to A
• Upgraded RAMSus Sustainability Rating from Silver to Gold
• Established AmBank Group’s 10-Year Responsible Financing Strategic Plan
• Established ESG Risk Framework and integrated ESG risks into credit assessment
• Zero cyber incidents within AmBank Group

Climate Goals & Targets

Environmental Challenges

• Weakening GDP growth and residential property market affecting repayment capacity of SMEs and retail customers
• Market changes and fluctuations in interest rates, profit rates, foreign exchange rates and equity prices
• Limited ability to liquidate assets
• Potential losses and disruptions due to inadequate or failed internal processes, people and systems or external events
• Vulnerabilities in IT security and inadequate internal controls exposing the Group to cyber-attacks
• Social and environmental externalities impacting the Group’s long-term value chain

Mitigation Strategies

• Actively monitor portfolios and engage with customers
• Semi-annually review Group Risk Appetite Framework
• Conduct dynamic stress simulation
• Enhance monitoring and early warning tools
• Adhere to a comprehensive Market Risk and Liquidity Risk Management Framework
• Automate market risk monitoring and assessment tools
• Comply with a comprehensive Market Risk and Liquidity Risk Management Framework
• Perform liquidity stress tests
• Establish system enhancements
• Adopt an operational risk framework
• Implement a governance structure with a Three-line of Defence approach
• Devise a full suite of operational risk management tools
• Conduct comprehensive business continuity planning
• Actively deploy the latest patches and updates
• Implement Next-Generation Anti-Virus and Endpoint Detection & Response
• Conduct red teaming assessments
• Conduct a sustainability materiality assessment
• Establish a sustainability governance structure
• Implement AmBank Group’s Sustainability Framework

Supply Chain Management

Supplier Audits: 100% of new suppliers and contract renewals screened through AmBank Group’s ESG criteria in FY2020

Responsible Procurement

• Supplier Code of Conduct (SCOC)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRF), Global Reporting Initiative (GRI) Standards

Certifications: ISO 45001

Third-party Assurance: SIRIM QAS International Sdn Bhd

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 17

Initiatives contribute to these goals through responsible banking, conscious self-conduct, and positive societal impact

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• MSCI ESG rating improved from BBB to A
• RAMSus Sustainability Rating upgraded from Silver to Gold
• FTSE4Good Index Series constituent

Environmental Metrics

ESG Focus Areas

• Responsible Banking
• Conscious Self-Conduct
• Positive Societal Impact

Environmental Achievements

• 12.5% reduction in total carbon emissions
• 43.0% reduction in petrol consumption
• 10.4% drop in kWh energy consumption
• 38,221 kWh of energy generated by solar panels

Social Achievements

• Improved Employee Engagement Score despite workplace challenges amid COVID-19
• Invested over RM14.2 million in employee training and development programmes
• Achieved a High Performer Retention Rate of 97.0%
• Ranked 1st in Customer Satisfaction (CSAT) score and Net Promoter Score (NPS) amongst AmBank Group customers
• Increased the number of Customer Compliments received by 45% YoY
• RM2.7 million in total Zakat contribution
• 33,670 community members reached

Governance Achievements

• Introduced Environmental and Social Risk Grade (ESRG) as part of our credit evaluation process
• Established robust policies and guidelines that address key sustainability matters
• MSCI ESG Rating: AA
• Received recognition from the Minority Shareholders Watch Group (MSWG) ASEAN Corporate Governance Awards, including the Excellence Award for Overall CG & Performance; Excellence Award for CG Disclosure; and Industry Excellence Award (financial services category)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting the global and domestic economies
• Settlement with the Ministry of Finance related to historical transactions
• Economic contraction, weak property market, high unemployment, inflation
• Cybersecurity breaches and data loss
• Emerging technologies, increasing competition and evolving customer demands
• Lack of customer engagement or understanding
• Non-adherence to legislation
• Gaps in skills and knowledge within the workforce
• Unsustainable environmental and social practices
• Inefficient or failed internal processes
• Inadequate cybersecurity and internal controls

Mitigation Strategies

• Transitioned to a new working model with stringent measures
• Enhanced digital infrastructure
• Provided approximately RM15.2 billion in repayment assistance
• Completed a Private Placement exercise that raised RM825 million
• Strengthened governance structures, improved due diligence, enhanced systems and processes
• Invest in digital platforms and solutions
• Implement our Compliance Culture Programme
• Provide training programmes that equip employees with future-ready capabilities
• Implement AmBank Group’s Sustainability Framework
• Adopt an operational risk framework
• Implement Next-Generation Anti-Virus and Endpoint Detection & Response (EDR)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Prioritise local suppliers and contractors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: IIRF, GRI Standards, MCCG 2017, BNM Policy Documents and Guidelines, MMLR of Bursa Securities

Certifications: Null

Third-party Assurance: SIRIM QAS International Sdn Bhd

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 7
• 8
• 9
• 13

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Asset Triple A Digital Awards 2020
• Malaysian e-Payments Excellence Awards
• Global Banking and Finance Review Awards
• Alpha Southeast Asia Awards
• Red Hat APAC Innovation Awards 2020
• Minority Shareholders Watch Group (MSWG) ASEAN Corporate Governance Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Financial Inclusion
• Community Empowerment
• Responsible Consumption
• Responsible Procurement
• Employee Well-being
• Data Security
• Anti-Money Laundering & Anti-Corruption

Environmental Achievements

• Reduced total carbon emissions by 11%
• Reduced Scope 1 emissions by 29%
• Reduced Scope 2 emissions by 10.7%
• Reduced paper consumption by 31%
• Transitioned to green and renewable energy, offsetting more than 1,786 metric tonnes of carbon emission
• Achieved Energy Management Gold Standard Certification for Menara AmBank

Social Achievements

• Ranked 1st in Net Promoter Score (NPS) and Customer Satisfaction (CSAT) amongst AmBank Group customers
• 235% increase in total customer compliments received
• Invested over RM17.7 million in employee training and development programmes
• Achieved a High Performer Retention Rate of 95.5%
• Channelled approximately RM1.4 million into social impact projects that benefited over 500,000 people
• Provided financial and non-financial aid to vulnerable groups affected by floods and the pandemic

Governance Achievements

• Zero environmental non-compliances recorded
• Zero major regulatory fines or penalties
• 42.12% increase in compliance-related training completed by employees

Climate Goals & Targets

Environmental Challenges

• Climate change risks impacting business operations and customer repayment capabilities
• ESG risks impacting business continuity and growth
• Cyberattacks and data breaches
• Managing credit risk in underserved markets
• Unethical practices and regulatory breaches by suppliers
• Absence of effective community development programmes
• Maintaining a skilled and resilient talent pool

Mitigation Strategies

• Developed an Exclusion List for new loans and financing related to coal and other high-risk activities
• Enhanced ESG Risk Assessments (ESGRA) for loans and financing to include climate change considerations
• Implemented measures and protocols to keep employees safe during the pandemic
• Strengthened cybersecurity measures through SOC 2.0, periodic Cyber Drills, and risk control metrics
• Implemented AmBank Group’s Responsible Sourcing and Green Procurement for Supplier’s Onboarding Programme
• Developed impactful CSR programmes focusing on community needs
• Invested in employee training and development programmes

Supply Chain Management

Supplier Audits: 88% of suppliers passing AmBank’s pre-qualification ESG questionnaires

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing and Green Procurement Programme
• e-Procurement system
• Supplier Improvement Plan

Climate-Related Risks & Opportunities

Physical Risks

• Adverse climate impacts

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Growth opportunities in the green sector

Reporting Standards

Frameworks Used: GRI Standards, Bursa Securities Sustainability Reporting Guide, ACCA Malaysia Sustainability Reporting Guidelines

Certifications: ISO 45001

Third-party Assurance: SIRIM QAS International Sdn. Bhd.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Initiatives contributing to sustainable economic growth, environmental protection, social inclusion, and good governance

Sustainable Products & Innovation

• Green financing products
• ESG-linked funds

Awards & Recognition

• Energy Management Gold Standard Certification
• Various awards for Islamic banking, customer service, and digital initiatives

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Lowered Scope 1 and Scope 2 carbon emissions by 11% to 12,612 metric tonnes; on track to achieving a 24% reduction by FY2023 against the FY2019 baseline.
• Offset more than 1,786 metric tonnes of carbon emissions through carbon-reduction strategies and the use of solar panels.
• Menara AmBank awarded Energy Management Gold Standard Certification, the first financial institution in Malaysia to receive this.

Social Achievements

• AmBank’s Employee Engagement Index (EEI) scored 78% in FY2022 (77% in FY2021).
• Employee engagement ratio doubled from 17% in 2019 to 35% in 2021.
• Provided targeted relief packages and working capital facilities for SME customers impacted by the pandemic, with RM1.8 billion disbursed to 2,281 SME applications.
• AmBank Road to Capital Market initiative helped aspiring SMEs scale their business, concluding 46 deals since 2019, delivering RM421 million in loans and generating RM56 million in revenue.
• AmBank BizRACE programme engaged over 12,000 SME leaders since its inception, with more than RM18 million worth of grants approved in the third season.

Governance Achievements

• Developed eight sector-specific checklists to prioritize ESG risk ratings for sectors susceptible to ESG risks.
• Assigned ESG Risk Grades (ESG-RG) for select non-individual customers based on BNM’s Climate Change and Principle-based Taxonomy (CCPT) and Value-Based Intermediation (VBI) Sectoral Guides.
• Pledged to refrain from any new coal financing transactions and ceased accepting customers who derive more than 25% of their revenue from coal-fired power plants or where coal or coal-related activities contribute 20% or more to the customer’s total revenue or where coal-related products make up 20% or more of the customer’s raw materials.

Climate Goals & Targets

Environmental Challenges

• Continued geopolitical risks, supply disruptions, financial market volatilities from the tightening of monetary policies globally, and a potential global slowdown.

Mitigation Strategies

• Strengthening buffers and ensuring financial stability while supporting and driving sustainable growth.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: Energy Management Gold Standard Certification (Menara AmBank)

Awards & Recognition

• Highly Acclaimed, Best Digital CX – Account Opening and Customer Onboarding (Digital Banker’s Digital CX Awards 2021)
• Best Digital Account Opening/Customer onboarding initiative/ Application 2021 (The Asian Banker Malaysia Awards 2021)

Environmental Metrics

ESG Focus Areas

• Responsible Banking
• Conscious Self-Conduct
• Positive Societal Impact

Environmental Achievements

• Achieved 93% reduction in carbon emissions after carbon offset compared to 2019 levels.
• First financial institution in Malaysia to receive the Energy Management Gold Standard (EMGS) Certification.
• 100% of energy consumption from operations in Sarawak was from hydroelectricity, reducing 503.45 mtCO2e.

Social Achievements

• Employee Engagement Index of 86%, a near 10% increase from FY2022.
• Disbursed over RM2.6 billion in loans/financing under affordable home and auto financing schemes.
• AmBank was honoured with the “Overall Financial Institution with the Most Volunteers (Banking)” award at the FINCO Annual Awards Ceremony 2022.

Governance Achievements

• 100% of Board members and employees received training on anti-corruption policies and procedures.
• Zero incidents of corruption.
• Maintained “AA” Rating For MSCI ESG

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on operations and stakeholder interests.
• Navigating sustainability for SMEs.
• Managing ESG risks across business and operations.

Mitigation Strategies

• Enhanced ESG risk assessment including climate change risk assessment.
• Expanded exclusion list for coal-fired plants and coal-dependent businesses.
• Partnership with Pantas Software Sdn Bhd on the Greening Value Chain (GVC) Programme to support SMEs.

Supply Chain Management

Supplier Audits: 100% of new suppliers screened for ESG compliance.

Responsible Procurement

• Supplier Code of Conduct
• e-Procurement system
• ESG awareness and guidance for suppliers

Climate-Related Risks & Opportunities

Opportunities

• Sustainable financing opportunities

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia Sustainability Reporting Guide, The ACCA Malaysia Sustainability Reporting Guidelines for Malaysian Companies, International Integrated Reporting Framework (IIRF), TCFD

Certifications: Energy Management Gold Standard (EMGS)

Third-party Assurance: SIRIM QAS International Sdn. Bhd.

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 10
• Goal 13
• Goal 17

AmBank Group's initiatives contribute to these goals through responsible banking, community empowerment, financial inclusion, and climate action.

Sustainable Products & Innovation

• Green financing products
• Sustainable and responsible investments (SRI)/ESG-linked funds

Awards & Recognition

• The Edge ESG Awards 2022
• Asian Private Banker Awards 2022
• FINCO Volunteer Awards 2022

Environmental Metrics

ESG Focus Areas

• Responsible Banking
• Conscious Self-Conduct
• Positive Societal Impact

Environmental Achievements

• 36% GHG emissions reduction against 2019 baseline with carbon reduction initiatives for enterprise operations
• Disbursed a total of RM3,022 million in green loans and financing

Social Achievements

• 6,284 employees completed training on Sustainability 101
• Invested RM901,584 with 116 Corporate Social Responsibility (CSR) and sustainability programmes
• Supported The Lost Food Project (TLFP), saved 324,835 meals (284,211 kg of CO2 emissions)
• Introduced an Employee Resource Group (ERG) named Ladies at Work
• RM17.6 million invested in employee training and development

Governance Achievements

• 33% of our Board members are women
• Scored a score of 7.6/10 and 5/5 for governance-related disclosures in MSCI and FTSE4Good respectively
• Early Adopter of Capital Markets Malaysia’s Simplified ESG Disclosure Guide (SEDG)

Climate Goals & Targets

Environmental Challenges

• Climate change led to extreme floods, severely impacting communities and the economy
• Socio-economic disparities continue to affect the well-being of many Malaysians
• Malaysia’s economy heavily reliant on hard-to-abate sectors like oil and gas
• Growing need for green skills in the job market

Mitigation Strategies

• Disbursed a total of RM3,022 million in green loans and financing to address Malaysia’s urgent sustainable development needs
• Developing a decarbonisation pathway exercise in FY2025
• Developing a differentiated approach tailored to sectors that pose higher climate-related risks as part of our forthcoming Net Zero Roadmap transition plan
• Offering complimentary capacity building and tools for suppliers, including software for managing and reporting greenhouse gas (GHG) emissions, in addition to access to favourable financing options like the Low Carbon Transition Facility (LCTF) by Bank Negara Malaysia (BNM)
• Recruiting new talent with green skills and investing in the development of our existing workforce
• Implementing a diverse range of programmes, including AmBank Group Sustainability 101

Supply Chain Management

Supplier Audits: 115/year or 100% coverage

Responsible Procurement

• Supplier Code of Conduct (SCOC)
• Anti-Bribery & Corrupt Practices Policy
• No Gift Policy

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather
• flooding

Transition Risks

• regulatory changes
• market shifts

Opportunities

• development of energy-efficient products
• growth opportunities in emerging green industries and transition activities of the economy

Reporting Standards

Frameworks Used: GRI Standards 2021, Bursa Malaysia’s Main Market Listing Requirements (MMLR) on Sustainability Reporting, TCFD recommendations and Joint Committee on Climate Change (JC3) TCFD Application Guide for Malaysian Financial Institutions

Certifications: ISO 14001, ISO 45001, EMGS, 5-Star National Building Energy Intensity (BEI) Label

Third-party Assurance: SIRIM QAS International Sdn. Bhd.

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 13

Our initiatives contribute to these goals through responsible financing, community development, and environmental stewardship.

Sustainable Products & Innovation

• Sustainability-Linked Financing (SLF)
• Green Financing

Awards & Recognition

• Asiamoney Award, Best Bank for ESG in Malaysia 2023
• 2022 National Council Occupational Safety & Health (NCOSH) Excellence Award

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Group Procurement Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework