Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Replaced all T8 fluorescent tubes and light bulbs in the Corporate Head Office with LED tubes and bulbs.
• Completed Menara Public Bank 2, a green building with LEED Gold and GBI certifications.
• Reduced Greenhouse Gas Emission (tCO2) from 19,598,365 in 2016 to 17,931,338 in 2017 (Scope: Menara Public Bank, Information Technology & Training Centre in Bangi, and Bangunan Public Bank).

Social Achievements

• 93% of customers rated frontline services as “Excellent” and “Good”.
• 94% of customers rated loan delivery services as “Exceeded Expectation” and “Within Expectation”.
• Achieved 100% compliance rate in meeting the Group’s 10-day internal turnaround time for complaint management.
• Granted new loans of RM18.80 billion for > 49,000 home purchasers, RM12.72 billion for > 170,000 motor vehicle buyers, and RM16.12 billion for > 40,000 SMEs.
• 45.8% of women in management and 48.8% of women in top management.
• 32 training hours per employee.

Governance Achievements

• Enhanced Compliance Policy with three main principles: Zero Tolerance Approach, Compliance is Everyone’s Responsibility, and Risk-based Approach.
• Implemented Banking Secrecy Framework to enhance processes for managing compliance with secrecy provisions.
• Introduced Cyber Resilience Framework to strengthen cyber security.

Climate Goals & Targets

Environmental Challenges

• Data security risks.
• Maintaining high customer satisfaction.
• Responsible lending practices.
• Ensuring financial inclusion and accessibility.
• Managing sustainability in the supply chain.
• Compliance with regulations.
• Anti-money laundering and counter-financing of terrorism.
• Anti-fraud measures.

Mitigation Strategies

• Group-wide governance framework for data security.
• Customer Service Charter, ISO 9001 certification, Queue Management System, and Complaint Tracking System.
• Prudent credit evaluation process, Credit Policy, Credit Scoring System, and support for customers experiencing financial hardship.
• Extensive delivery channels, support for home and vehicle ownership, SME financing, and special care counters.
• Visits to vendors and suppliers' offices, screening vendors' sustainability policies.
• Enhanced Compliance Policy, whistleblowing mechanism.
• Updated AML/CFT Policy, training programs, and compliance officer visits.
• Training programs to heighten staff awareness and knowledge on anti-fraud.

Supply Chain Management

Responsible Procurement

• Visits to vendors and suppliers' offices to assess business practices (EES matters).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia’s Sustainability Reporting Guide, Global Reporting Initiative

Certifications: ISO 9001

Awards & Recognition

• LEED Gold and GBI certifications for Menara Public Bank 2

Environmental Metrics

ESG Focus Areas

• Responsible Business
• Conduct and Compliance
• Developing Employees
• Corporate Citizenship
• Managing Environmental Impact

Environmental Achievements

• Solar system at Menara Public Bank 2 reduced 38.1 tCO2e carbon emission
• Increasing digitalisation of banking operations to reduce paper usage
• Continued replacement of light bulbs to LED bulbs across the Group’s premises

Social Achievements

• 36 training hours per employee
• Low employee attrition rate 5.4%
• Extending maternity leave up to 90 days, in addition to the existing 90 days of maternity leaves
• Granted new loans of RM19.91 billion for >50,000 home purchasers, RM15.68 billion for >209,000 motor vehicle buyers, and RM11.08 billion for >41,000 SMEs
• Awarded >180 students under Star Achiever Programme
• Donated RM70,000 under Festive Charity Programme

Governance Achievements

• No material instances of non-compliance

Climate Goals & Targets

Environmental Challenges

• Data security breaches
• Cyber threats
• Evolving digital security risks
• Increasing risks arising from the more complex and sophisticated financial crimes, such as money laundering, terrorist financing, corruption and bribery

Mitigation Strategies

• Adopting a zero-tolerance policy on data security breach
• Deploying well-trained workforce, robust information system security, secure data storage infrastructure and proper data disposal
• Establishing comprehensive policies, procedures and processes to safeguard information security
• Investing substantially in strengthening its security infrastructure
• Strengthening countermeasures and conducting regular assessments to ensure the resilience of cybersecurity
• Stringent physical data security measures
• Regular reminders to employees on safeguarding customer information
• Setting up a 24 x 7 Security Operation Centre to monitor potential cyber attacks
• Embracing security-by-design best practice
• Strengthening collaboration with regulators and international security vendors
• Instituting multi-layered security controls and processes in information system
• Engaging security consultants to conduct periodic security assessments
• Ongoing employee training on the latest digital security skills

Supply Chain Management

Supplier Audits: Site visits, surveys

Responsible Procurement

• Compliance with all applicable rules and regulations
• Due diligence on potential outsourcing arrangement
• Business continuity as an important criterion in supplier engagement
• Vendor due diligence conducted and reviewed once every two years

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide and Toolkits

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The Public Bank Group has identified nine SDGs which are the most relevant to its material sustainability matters.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• FTSE4Good Index Series constituent
• FTSE Bursa4Good, FTSE4Good ASEAN 5 and FTSE4Good Emerging Index constituent
• MSCI AA ESG Rating
• The Asset ESG Awards Gold
• Best MyDebit Bank in Malaysia
• The JomPAY Best Biller Bank
• Outstanding Contribution to MyDebit
• MyDebit Top Acquirer
• Best Tax Payer Award 2018
• Certificate of Merit from Hanoi People’s Committee

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Reduced greenhouse gas emissions by 35.4 tonnes of carbon dioxide equivalent (tCO2e) in 2021 at Menara Public Bank 2 through solar energy.
• Replaced faulty air-conditioner units with environmental-friendly R410A gas air-conditioners.

Social Achievements

• Approved about RM82 billion of domestic loans under the Repayment Assistance Programme, benefitting nearly 438,000 customers.
• Extended about RM3.4 billion of financing under the Government and Bank Negara Malaysia’s special financing schemes to more than 17,700 SME customers.
• Invested >RM40 million in employee training and development (70 training hours per employee).
• Invested RM817,250 in COVID-19 Corporate Vaccination programme to protect employees’ health.
• Donated RM3 million for the Academy of Medicine Malaysia and the Academy of Family Physicians Development Fund.

Governance Achievements

• No material instances of non-compliance reported.
• Continuous reinforcement of compliance culture amongst employees.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting public health and business environment.
• Weak economic sentiments.

Mitigation Strategies

• Approved about RM82 billion of COVID-19 repayment assistance for nearly 438,000 customers.
• Extended about RM3.4 billion of funding assistance to more than 17,700 SMEs.
• Ensured uninterrupted banking services through enhanced digital platforms and cybersecurity.
• Reinforced work mobility through improved infrastructure and digital tools.
• Protected employees’ health and safety through various measures including a Corporate Vaccination Programme.

Supply Chain Management

Supplier Audits: 53 ICT Vendor Due Diligence conducted

Responsible Procurement

• Vendor Code of Conduct
• Prioritising local businesses (86% of ICT suppliers were local companies).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide and Toolkits (2nd Edition), United Nations’ Sustainability Development Goals, Task Force on Climate-related Financial Disclosures

Certifications: ISO 9001:2015

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 16

The report details how various material sustainability matters contribute to these SDGs.

Sustainable Products & Innovation

• ESG-friendly financing products
• Energy-efficient vehicle financing
• Solar financing packages

Awards & Recognition

• FTSE4Good Bursa Malaysia Index constituent
• FTSE4Good ASEAN 5 Index constituent
• FTSE4Good Emerging Index constituent
• MSCI ESG Ratings AA rating
• Gold award in the Asset ESG Corporate Awards 2021
• Three awards from PayNet’s Malaysian e-Payments Excellence Awards 2021
• Public Investment Bank awarded as the Best ASEAN Sustainability SRI Sukuk – Corporate by The Asset

Environmental Metrics

ESG Focus Areas

• Protecting the Environment
• Proficient Employees
• Prosperous Customers and Communities
• Principled Conduct

Environmental Achievements

• Mobilising more than RM30 billion for Energy Efficient Vehicles (EEVs) financing, exceeding the initial target of RM25 billion three years ahead.
• Approved more than RM620 million under the Green Financing Facilities.
• Commenced the solar panel project at Bangunan Public Bank.
• Achieved 20% reduction in paper consumption for Campu Bank’s five main branches (2019).

Social Achievements

• RM50 million invested in employees' training and development.
• 72 training hours per employee.
• Low employee attrition rate of 8.2%
• Elevated the financial well-being of about 639,000 individuals since 2021.
• Extended Loan Moratorium to >8,000 customers affected by flood.

Governance Achievements

• Formation of the Board Sustainability Management Committee.
• No material instances of non-compliance.
• Zero incidents of corruption.

Climate Goals & Targets

Environmental Challenges

• Climate change and environmental concerns.
• Managing the operational risks and opportunities associated with actual or potential impacts of climate change.
• Reducing the Group’s direct and financed emissions.
• Managing the resultant risks manifesting from climate change.

Mitigation Strategies

• Formalized a qualitative Climate Risk Appetite Statement.
• Developed General Risk Acceptance Criteria and established Sectoral Risk Acceptance Criteria Checklist for palm oil, and construction and infrastructure sectors.
• Committed to No Deforestation, No New Peat and No Exploitation.
• Developed internal methodology to identify borrowers susceptible to physical risk.
• Developed internal methodology to collect and to link customers’ behavioural data to climate events as inputs to the liquidity stress scenarios.

Supply Chain Management

Supplier Audits: 28 (General Items) + 42 (ICT) in 2022

Responsible Procurement

• Vendor Code of Conduct
• ESG criteria screening
• Support for local businesses

Climate-Related Risks & Opportunities

Physical Risks

• Floods, storms, droughts, higher sea levels, rising temperatures

Transition Risks

• Policy & Regulation changes, Technology Development, Consumer Preference shifts, Reputation damage

Opportunities

• Expand the offering of sustainable financial products
• Reduce Scope 3 carbon emissions achieved through customer transition plans
• Reduce operational cost through energy and electricity savings
• Reduce Scope 1 and Scope 2 carbon emissions

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16

The report maps its material matters to the SDG targets.

Sustainable Products & Innovation

• Green financing facilities
• Low carbon transition facility
• EEV financing
• Solar panel financing
• Financing for sustainable and green-certified properties

Awards & Recognition

• Gold Award in The Asset ESG Corporate Awards 2022
• Best MyDebit Bank and Best MyDebit (Acquirer-Bank) in the Malaysian e-Payments Excellence Awards 2022

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 2,684 tCO2e reduction achieved for Scope 1, Scope 2 and Scope 3 carbon emissions
• Reduced 2% of total energy consumption from 2022
• Inaugural purchase of green electricity totaling 650 MWh
• Mobilized RM53.91 billion of sustainable finance since 2020

Social Achievements

• Achieved 48.8% female representation in senior management
• Over RM1.2 million spent on the community
• Achieved more than one million total training hours
• Improved over one million individuals’ lives since 2021
• Zero incidents of human rights violation

Governance Achievements

• Zero incidents of corruption
• 100% of Malaysian banking entities conducted corruption-related risk assessment
• Developed the Public Bank Group Sustainability Framework
• Developed the Sustainable Finance Framework, and Sustainable Products and Services Guideline
• Developed the Public Bank Group Climate-Related Strategy Policy

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (implied)
• Attracting and retaining talent amidst high demands for talent across the industry

Mitigation Strategies

• Developed alternative sourcing strategies (implied through sustainable supply chain focus)
• Campus engagement, internship program, PB TalentMax program, Return to Work program to attract and retain talent

Supply Chain Management

Supplier Audits: 458 vendor due diligence conducted; 90 ESG screenings performed

Responsible Procurement

• Public Bank Group Vendor Code of Conduct
• ESG requirements embedded into supplier screening process
• Encouraging electronic purchase orders

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Increased scrutiny from stakeholders

Opportunities

• Development of energy-efficient products
• Growth in sustainable finance

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations, Bursa Malaysia’s Main Market Listing Requirements and Sustainability Reporting Guide (3rd Edition), Securities Commissions’ Malaysian Code on Corporate Governance

Certifications: ISO 9001:2015 (QMSFL and QMSLD)

Third-party Assurance: KPMG PLT

UN Sustainable Development Goals

• 12 of the United Nations Sustainable Development Goals

The report mentions alignment with 12 UN SDGs but doesn't specify which ones.

Sustainable Products & Innovation

• Visa Signature credit cards made from sustainable materials

Awards & Recognition

• Constituent in FTSE4Good Bursa Malaysia Index, FTSE4Good ASEAN5 Index, FTSE4Good Emerging Index and FTSE4Good All World index
• AA rating since 2015
• Gold Award since 2019
• Platinum Award for ‘Leading Bank for Professional Development’ by Asian Institute of Chartered Bankers
• Leading Bank for Chartered Banker by Asian Institute of Chartered Bankers
• Top 3 Best Employer in the Banking sector
• Top 1% among Graduates Preferred Employer
• Fourth Most Preferred Employer in Investment Banking
• Sixth Most Preferred Employer in Islamic Banking
• Premium Employer Partner by the Chartered Financial Analyst Society Malaysia
• Special Recognition Award for Outstanding Contribution to Cross Border Payments in the Malaysian e-Payments Excellence Awards