Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable and Responsible Banking
• Embedding Good Practices
• Enriching & Empowering Communities

Environmental Achievements

• GHG emission intensity per employee has been reduced by 43% since 2016
• Total GHG emissions was 13,688 tCO2e (RHB Centre and RHB Complex in Klang Valley, Malaysia)
• RHB Complex’s water heater system was replaced with a solar heating system, reducing heating power consumption by about 70%
• Reduced water consumption per occupancy by approximately 11% for the second consecutive year.
• Consumed about 1,000 reams (about 500,000 sheets) of paper less than the previous year

Social Achievements

• Improved Customer Net Promoter Score by 9 points to +9 for RHB Group (Malaysia)
• 4,425 branch staff received special soft skills training to engage with people with disabilities or special needs
• Improved Employee Engagement Score to 90%, higher than the Malaysian financial industry average (89%)
• 1,200+ students from underprivileged backgrounds benefitted from RHB X-Cel Academic Excellence Programme since 2018
• 10 students received the RHB X-Cel Star Scholarship in 2019, with plans to increase to 15 per annum
• Engaged over 22,000 students through Money Ma$ter financial literacy programme since 2018
• Benefitted more than 100,000 people through community initiatives

Governance Achievements

• Platinum Award for Best Governed & Most Transparent Company by the Pinnacle Group International’s Global Good Governance Award
• Achieved the target of having 30% female representation on the Board of Directors (later reduced to 27% due to a new appointment)
• Established a Group Integrity and Governance Division to oversee integrity, ethics and corruption matters

Climate Goals & Targets

Environmental Challenges

• Stronger calls to action to increase efforts in achieving the UN SDGs
• Scaled efforts within ASEAN for sustainable finance and responsible investment driven by regulators in the ASEAN market
• Greater attention on data privacy and cybersecurity
• Growing concern over climate change
• Empowering of financial freedom in Malaysia through the launch of the National Strategy for Financial Literacy 2019-2023

Mitigation Strategies

• Strengthened Sustainability Framework
• Robust digital infrastructure, stringent controls and governance policies to protect customers’ data privacy
• Continuous enhancement of cybersecurity capabilities
• Integration of ESG matters into the Group’s core business and operations
• Commitment to extend RM5 billion by 2025 to support green activities

Supply Chain Management

Responsible Procurement

• Transparent and open tender selection process
• Objective supplier performance evaluation
• Compliance checks on appointed suppliers
• Procurement Code of Integrity and No Gift Policy/Corruption

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, Bursa Malaysia Sustainability Reporting Guide 2nd Edition, United Nations Sustainable Development Goals

Certifications: ISO/IEC 27001

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 12
• SDG 13

RHB's initiatives contribute to these goals through various programs and practices related to education, gender equality, economic growth, innovation, responsible consumption and production, and climate action.

Sustainable Products & Innovation

• RHB MyHome App and website
• SME e-solutions
• RHB Rewards Motion Code credit card

Awards & Recognition

• Platinum Award for Best Governed & Most Transparent Company
• FTSE4Good Index Series constituent
• MSCI ESG Rating AA (Leader)

Environmental Metrics

ESG Focus Areas

• Sustainable and Responsible Banking
• Embedding Good Practices
• Enriching and Empowering Communities

Environmental Achievements

• Recorded 38% lower GHG emissions intensity per employee in 2020 compared to 2016 for West Malaysia
• Reduced energy consumption by 8,560 MWh through various energy-saving initiatives since 2017
• Reduced water consumption by approximately 19% in 2020 compared to 2019
• Launched Asia Pacific’s first eco-friendly recycled plastic debit card, issuing over 20,500 cards

Social Achievements

• Launched #JomSapot to help SMEs promote their products on online platforms for free, benefiting more than 5,600 outlets
• Provided RM2.11 billion in total loan and financing facilities through relief funds for 3,395 SMEs in 2020
• Invested RM19.8 million in learning and development for employees
• Scored 92% in Employee Engagement Index
• Launched RHB Wellness Hotline and Remote Therapy
• RHB X-Cel Academic Excellence Programme benefited 1,700+ students since 2018
• Increased RHB X-Cel Star Scholars by 11 students

Governance Achievements

• Established the Group Integrity & Governance division to drive good governance practices, including overseeing anti-bribery and corruption matters
• Strengthened Anti-Bribery and Corruption (“ABC”) Policy, Whistleblowing Policy and Gifts and Hospitality Guidelines
• Achieved +11 Net Promoter Score for customer satisfaction

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on customers, employees, and communities
• Low life insurance penetration rate in Malaysia
• Lack of retirement planning among Malaysians
• Comparability of ESG data and absence of a global regulator and unified framework for ESG scoring

Mitigation Strategies

• Provided financial assistance to individuals and businesses through moratoriums and payment assistance programs
• Launched RHB Perlindungan Tenang Campaign to provide affordable life protection
• Focused on encouraging Malaysians to save for retirement through the Private Retirement Scheme
• Incorporated ESG assessment as a standard credit analysis process when purchasing bonds or sukuk
• Developed a proprietary ESG scoring system for FBM KLCI stocks

Supply Chain Management

Supplier Audits: 93% of suppliers in Malaysia are local businesses

Responsible Procurement

• Rigorous supplier selection process
• Compliance checks (AML/CFT, PEP checks)
• Procurement Code of Integrity
• No Gift Policy/Corruption

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Green financing opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option, Bursa Malaysia Sustainability Reporting Guide 2nd Edition, United Nations Sustainable Development Goals, TCFD, Greenhouse Gas Protocol

Certifications: ISO/IEC27001:2013, ISO/IEC 20000:2011

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 17

RHB's initiatives contribute to these goals through various programs and strategies related to education, gender equality, decent work, economic growth, responsible consumption, climate action, and partnerships.

Sustainable Products & Innovation

• Asia Pacific’s first eco-friendly recycled plastic debit card
• RHB MyHome App for mortgage applications
• RHB Financing (SME) Mobile App

Awards & Recognition

• FTSE4Good Index Series constituent
• MSCI ESG Rating AA (Leader)
• S&P Global ESG Score 43/100
• Putra Brand Awards 2020 Gold
• Asian Banking & Finance Retail Banking Award 2020
• International Business Award 2020
• Syarikat Jaminan Pembiayaan Perniagaan Berhad Top Performance Award 2020
• Alpha Southeast Asia Awards 2020
• Retail Banker International Asia Trailblazer Summit and Awards 2020
• The Asset Triple A Sustainable Investing Awards 2020
• Asiamoney Best Bank Awards 2020
• Financial Services Industry Excellence Award 2019
• ASEAN Corporate Governance Award 2019
• The Pinnacle Group International’s Global Good Governance Award 2020
• HR Asia Best Companies to Work For In Asia 2020
• HR Excellence Awards 2020
• Global Banking & Finance Awards 2020
• Loyalty & Engagement Awards 2020
• Excellence in Provision of Literacy & Education by Pinnacle Global – Gold Award

Environmental Metrics

ESG Focus Areas

• Sustainable and Responsible Banking
• Embedding Good Practices
• Enriching and Empowering Communities

Environmental Achievements

• Reduced GHG emissions intensity per employee by 41% compared to the 2016 baseline in Malaysia.
• Delivered 28.2 million e-statements to reduce paper consumption.
• Rolled out Waste Recycling Management program at Head Office, collecting 1,147 kg of recyclables and waste.

Social Achievements

• Achieved an Employee Engagement Score of 90%.
• Invested RM24.6 million in employee upskilling and reskilling, with 606,623 training hours.
• Launched RHB’s first Women in Leadership League program.
• RHB X-Cel Academic Excellence programme benefited more than 1,500 students.
• Money Ma$ter Programme reached out to 1,075 students.

Governance Achievements

• Maintained 30% women's representation on RHB Bank Berhad’s Board of Directors.
• Organised anti-bribery and corruption training for 4,700+ employees.
• Established the Group’s inaugural Organisational Anti-Corruption Plan.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Economic slowdown due to the pandemic.
• Managing climate-related risks.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Provided financial assistance to customers and SMEs.
• Implemented the Group Climate Action Programme.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group Procurement Guideline
• e-procurement system
• Support for local suppliers (93% in Malaysia)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Green financing, sustainable products

Reporting Standards

Frameworks Used: GRI Standards: Core Option, Bursa Malaysia Sustainability Reporting Guide 2nd Edition, UN SDGs, TCFD

Certifications: ISO/IEC 27001 (Information Security Management Systems), ISO/IEC 20000 (Information Technology Service Management)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 12
• SDG 13

Report details how initiatives contribute to these goals.

Sustainable Products & Innovation

• Recycled debit cards
• ESG funds
• Sustainability Financing Programme

Awards & Recognition

• Various awards mentioned throughout the report

Environmental Metrics

ESG Focus Areas

• Sustainable and Responsible Finance
• Embedding Good Practices
• Enriching and Empowering Communities
• Pathway to a Climate-Resilient Future

Environmental Achievements

• Reduced GHG emissions by 42% compared to the 2016 baseline (Malaysia operations only); Total carbon emissions (Malaysian operations only): 25,271 tCO2e
• Invested RM7,772.65 million in eligible green activities since 2019

Social Achievements

• Mobilised more than RM12 billion in sustainable financial services
• Granted RM494.8 million through the Sustainability Financing Programme
• Procured RM689.8 million in products/services from local suppliers
• Invested RM13.1 million in employee training and development
• Almost 6,500 secondary school students benefitted from the RHB X-Cel academic excellence programme
• RM3.9 million invested in community initiatives which impacted more than 90,000 people

Governance Achievements

• Established a Board Sustainability Committee in August 2022
• Introduced a Group Organisational Anti-Corruption Plan (OACP) to reaffirm zero-tolerance towards bribery and corruption
• Implemented a RACI framework across various Board committees to strengthen decision-making authority over ESG and climate-related risks and opportunities

Climate Goals & Targets

Environmental Challenges

• Credit risk exacerbated by economic headwinds (commodity price instability, strong US dollar, rising inflation, tightening monetary policies)
• Market volatility due to the Russia-Ukraine war and global inflation
• Liquidity risk from interest rate hikes shifting depositor preferences
• Operational risk, including cybersecurity threats and data breaches
• Sustainability risks, including climate-related risks and social risks (forced labor)
• Interest rate risk impacting profit margins
• Reputational risk
• Corruption risk
• Regulatory non-compliance risk
• Shariah non-compliance risk

Mitigation Strategies

• Implemented credit controls, early warning tools, stress testing, and ESG integration into credit risk management
• Maintained sound market risk governance, proactive risk management, and close monitoring of monetary policy
• Conducted stress tests, set risk limits, and implemented contingency plans for liquidity risk
• Improved internal controls, training, and technology to mitigate operational risks
• Incorporated sustainability risks into credit assessment, developed an ESG Risk Assessment tool, and launched the Group Climate Action Programme
• Regularly monitored interest rate risk and performed stress testing
• Emphasized good corporate governance and a culture of integrity
• Launched the OACP and established whistleblowing channels
• Enhanced compliance ecosystem and training to mitigate regulatory non-compliance risk
• Regularly conducted independent assessments of Shariah internal control and risk management systems

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritising local suppliers, offering development programmes for SME vendors

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Integrated Reporting Framework, GRI Standards, Bursa Malaysia’s Sustainability Reporting Guide, UN SDGs, TCFD Recommendations, GHG Protocol

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ESG-friendly products across business segments, Sustainable Financing Programme, RHB Live FX @ Reflex, RHB Investment Lab, goWave app

Awards & Recognition

• Numerous awards across various business segments and functions, including Putra Brand Awards, Asian Banker Awards, Alpha Southeast Asia Awards, Retail Banker International Awards, The Digital Banker Awards, Global Banking and Finance Awards, 12th Annual Treasury & FX Awards, Alpha Southeast Asia Fund Management Awards, FSMOne Recommended Unit Trust Awards, The Edge Malaysia ESG Awards, The Asset Benchmark Awards, Citywire Asia Awards, Singapore Police Anti-Scam Centre Award, Human Resource Excellence Awards, Loyalty & Engagement Awards, Employee Experience Awards, PR Awards, International Finance Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Financial Inclusion
• Customer Experience
• Digital Transformation
• Social Impact

Environmental Achievements

• Launched Malaysia’s first Shariah-compliant sustainable technology fund, the RHB i-Sustainable Future Technology Fund.
• Disbursed more than RM300 million in loans for green vehicles.
• Achieved a cumulative mobilisation of over RM23.8 billion in sustainable financial services, surpassing our RM20 billion target three years ahead of schedule. (Revised target to RM50 billion by 2026)

Social Achievements

• Launched RHB Rahmah Personal Accident Insurance, offering affordable protection to the B40 segment.
• Empowered SMEs with RM450 million in working capital through supplier and vendor financing.
• Championed social and environmental commitment through 43 projects in seven Southeast Asian countries through the RHB Touch Hearts initiative.
• Launched Boost Bank, a digital bank joint venture, to support greater financial inclusion.

Governance Achievements

• Continued its transformative journey under the Group’s TWP24 corporate strategy, focusing on three core objectives: Be Everyone’s Primary Bank, Prioritise Customer Experience, and Drive Quality Growth.
• Strengthened cybersecurity measures, including a 12-hour cooling-off period for new online enrolments and a transition to in-app verification.

Climate Goals & Targets

Environmental Challenges

• Volatile financial markets impacting investment appetite in the Wealth space.
• De-tariffication of Fire and Motor insurance weighing on underwriting profit.
• Fluctuating economic landscape and evolving regulatory requirements.

Mitigation Strategies

• Prudent management processes and adapted product offerings to meet changing customer needs.
• Focus on enhancing business growth in key segments, digital transformation, customer experience, and catalysing sustainability.
• Intensified integration of sustainable practices into business and operations.
• Enhanced customer experience, leveraging digital transformation and embedding strategic oversights.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed