Climate Change Data

Hong Leong Bank Berhad

Climate Impact & Sustainability Data (2019, 2020, 2021-07 to 2022-06, 2023-07 to 2024-06)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:77,985.6 tCO2e/year
Scope 1 Emissions:4,434.4 tCO2e/year
Scope 2 Emissions:73,377.5 tCO2e/year
Scope 3 Emissions:173.7 tCO2e/year
Total Energy Consumption:125,930.3 MWh/year
Water Consumption:510,997.8 m3/year

ESG Focus Areas

  • Climate Change
  • Sustainable Finance
  • Technology
  • Governance
  • Nurturing Growth
  • Talent Attraction, Growth and Retention
  • Customer Experience

Environmental Achievements

  • Approximately 25% reduction in paper used, 276,900 less sheets in the printing and production of CIMB Annual Report 2019.
  • Reduced single-use plastics at Menara CIMB food outlets.
  • Collected 427.5kg of e-waste for recycling.
  • Collected over 770 used plastic bottles for recycling.
  • Implemented energy reduction initiatives resulting in reduced energy consumption.

Social Achievements

  • Launched CIMB SHINE, a platform for start-ups, entrepreneurs, and SMEs.
  • Delivered seven seminars to over 50,000 SMEs.
  • Launched Empowering Women Series.
  • Implemented various workplace wellness initiatives.
  • Launched ‘It’s a Tuesday Thing’ employee engagement programme.

Governance Achievements

  • Rolled-out CIMB Group Sustainable Financing Policy across corporate banking in Malaysia.
  • Developed sector guides on environmental and social risks for four priority sectors.
  • Linked KPIs of selected senior management, including the Group CEO, with sustainability performance.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions
Medium-term Goals:
  • Become one of the top three most sustainable banking groups in ASEAN by 2023.
  • Achieve 75th percentile of global banks in DJSI ranking by 2023.
Short-term Goals:
  • Achieve at least 30% female representation on the Board by 2020.

Environmental Challenges

  • Climate change and its impact on the financial sector.
  • Supply chain disruptions due to non-compliance with environmental laws or human rights violations.
  • Increasing stakeholder expectations on ESG performance.
Mitigation Strategies
  • Implemented Enhanced Sustainability Due Diligence (ESDD) on more than 44 clients.
  • Developed a Sustainable Financing Policy and sector guides.
  • Developed a Positive Impact Products and Services (PIPS) Framework.
  • Engaged with stakeholders to understand their expectations and concerns.

Supply Chain Management

Supplier Audits: 819 suppliers registered in GEPS in 2019 (25% increase from 2018)

Responsible Procurement
  • CIMB Group Sustainable Procurement Guidelines
  • Vendor Code of Conduct (VCOC)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UNEP FI Principles for Responsible Banking (PRB)

Certifications: ISO 14001:2015

Third-party Assurance: KPMG

UN Sustainable Development Goals

  • Goal 3
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 16

CSR initiatives and sustainable finance initiatives aligned with these goals.

Sustainable Products & Innovation

  • CIMB SDG Bond
  • Sustainability-Linked Loans (SLLs)
  • CIMB SME Renewable Energy Financing
  • EcoSave Savings Account-i

Awards & Recognition

  • Improved significantly on Dow Jones Sustainability Index and WWF Sustainable Banking Assessment

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:410.2 MWh/year (Malaysia), 65.7 MWh/year (Turkey)
Water Consumption:9.4 m3/year (Malaysia), 0.22 m3/year (Turkey)
Waste Generated:4.8 million kg/year (KUL), 4.6 million kg/year (SAW)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Airport Capacity
  • Airport Safety and Security
  • Digitalisation
  • Total Airport Experience
  • Economic Performance
  • Climate Change
  • Energy Efficiency
  • Emissions
  • Waste and Effluent Management
  • Water Management
  • Diversity
  • Employee Engagement and Development
  • Integrity and Anti-corruption
  • Contributions to Local Community
  • Human Rights
  • Regulatory Compliance
  • Procurement Practices
  • Market Presence
  • Transportation and Connectivity
  • Cybersecurity

Environmental Achievements

  • Installation of solar PV systems on rooftops of five airports (BKI, KUA, LGK, MKZ, PEN), generating over 12,000 MWh of energy per year and reducing CO2 emissions by 8,700 tonnes annually.
  • KUL's return to top 10 global airports in ACI's ASQ ranking.
  • SAW became Turkey's first Barrier-Free Airport and LEED Gold® building.

Social Achievements

  • Reskilled and reassigned 88 Aviation Security personnel to Airport Fire and Rescue Service.
  • Introduced online training modules.
  • Zero retrenchments and salary cuts.
  • Distributed comfort kits to frontliners and stranded passengers.
  • Donated essential items and food to underprivileged families.
  • Improved KUL's ASQ score to 4.98 out of 5.00.

Governance Achievements

  • Established a Sustainability Committee.
  • Updated Sustainability Policy to reflect ESG matters and UN SDGs.
  • Received Gold Sustainability Rating from RAM Sustainability.
  • Adopted ISO 37001: Anti-Bribery Management Systems.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon-neutral growth and a carbon-free future.
  • Rank among the Top 5 airports in the world.
Medium-term Goals:
  • Growth and transformation (2023-2025) as outlined in Future F.I.T.
Short-term Goals:
  • Survival and recovery from the pandemic (2021-2022) as outlined in Future F.I.T.

Environmental Challenges

  • COVID-19 pandemic significantly impacted the aviation industry, resulting in a loss-making year.
  • Supply chain disruptions.
  • Reduced passenger movements.
  • Maintaining public confidence in airport safety.
Mitigation Strategies
  • Implemented crisis management measures.
  • Introduced relief packages for airport retailers (rental deferrals, rebates).
  • Launched e-commerce platform shopMYairports.
  • Implemented new safety measures and SOPs (physical distancing, sanitization, contactless processes).
  • Leveraged technology (Airports 4.0 initiatives) for contactless experience.
  • Group-wide cost containment measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Procurement Procedures, Policies and Guidelines (3Ps).
  • Commitment to Malaysian Government’s Integrity Pact.
  • 98% of suppliers are local.

Climate-Related Risks & Opportunities

Physical Risks
  • Inclement weather affecting aircraft operations.
Transition Risks
  • Regulatory changes related to emissions.
Opportunities
  • Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001:2018, ISO 14001:2015, ISO 9001:2015, ISO 37001:2016, LEED Gold® (SAW)

Third-party Assurance: SIRIM QAS International Sdn Bhd

UN Sustainable Development Goals

  • SDG 1
  • SDG 2
  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 10
  • SDG 11
  • SDG 12
  • SDG 13
  • SDG 16
  • SDG 17

Malaysia Airports' initiatives are aligned with various UN SDGs, as detailed in the report.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Gold Sustainability Rating (RAM Sustainability)
  • Company of the Year award for Education & Community Initiatives (Sustainability & CSR Malaysia Awards 2020)
  • Silver award for ‘Customer-centric Culture’ (International Customer Experience Awards 2020)
  • Various awards for Sama-Sama Hotels
  • MSOSH Awards for various airports and Corporate Office

Reporting Period: 2021-07 to 2022-06

Environmental Metrics

Total Carbon Emissions:26,770 tCO2eq/year
Scope 1 Emissions:290 tCO2eq/year
Scope 2 Emissions:25,855 tCO2eq/year
Scope 3 Emissions:750 tCO2eq/year

ESG Focus Areas

  • Climate change
  • Community programs
  • Fair labor practices
  • Data privacy
  • Financial inclusion
  • Good governance
  • Sustainable products and services

Environmental Achievements

  • Reduced combined GHG emission by 21.4% over the past four financial years
  • Issued maiden Green Additional Tier 1 Capital Securities amounting to RM900 million
  • HLB planted approximately 50,000 mangrove trees over three years
  • Reduced paper consumption by 34.6% and water consumption by 19.03% at HLB
  • Reduced electricity consumption by 3% at HLCB and 5.8% at HLAH
  • Reduced paper consumption by 8% at HLCB

Social Achievements

  • Extended support to individuals and businesses affected by floods
  • Participated in Perlindungan Tenang Voucher programme
  • Introduced HLA Stackable Microinsurance
  • Launched HLB Employee CSR Programme
  • Transformed Sekinchan into Malaysia’s first ‘Cashless Kampung’
  • Launched HLB Earth Hero initiative
  • Organised e-waste collection campaign (350kg collected)
  • Supported local communities from Sukau village
  • Provided financial assistance (RM21,000) to flood-affected employees at HLCB

Governance Achievements

  • Updated procurement policy to embed ESG considerations
  • Updated internal policies to include ESG considerations and sustainability best practices
  • Implemented ESG Framework into Investment Policy at HLAM and HLISAM
  • Launched Hong Leong Global ESG Fund
  • Established Sustainability Committee at HLA
  • Enhanced BCB ESG Policy & Assessment Framework at HLB
  • Developed Green Bond Framework at HLB
  • Implemented Sustainability Framework at HLCB

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero (Scope 1, 2 and 3) by 2050 (HLB)
Medium-term Goals:
  • Achieve Net Zero for operational (Scope 1 and 2) emissions by 2030 (HLB)
  • Launch Hong Leong Global Shariah ESG Fund (HLCB)
Short-term Goals:
  • Reduce GHG emissions by 15% to 25% by 2026 (HLB)
  • Roll out cashless ecosystem project to 100 schools (HLB)

Environmental Challenges

  • Prolonged pandemic effects
  • Unprecedented floods
  • Supply chain disruptions
  • Inflationary pressures
  • Financial market volatility
  • Russia-Ukraine war
  • Lower portfolio yields in a rising interest rate environment
  • Lower traded volume on Bursa Malaysia
Mitigation Strategies
  • Extended support to affected customers
  • Prudent cost control
  • Disciplined management of asset quality
  • Strategic investment in digital solutions
  • Reorganised teams to sharpen focus on wealth management
  • Strengthened Islamic banking coverage through digitalisation
  • Accelerated product innovation leveraging technology and data
  • Investing in digital capabilities to grow customer base
  • Prudent balance sheet management
  • Launched Green AT1 Bond

Supply Chain Management

Supplier Audits: 39 vendors assessed for ESG under the Vendor Sustainability Self-Assessment (HLB)

Responsible Procurement
  • Enhanced Procurement Policy with ESG parameters

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Green financing opportunities

Reporting Standards

Frameworks Used: GRI Standards, BNM’s TCFD Application Guide, Bursa Malaysia’s Sustainability Reporting Guide, BNM’s Climate Change and Principle-based Taxonomy

UN Sustainable Development Goals

  • Goal 4
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 16
  • Goal 17

Initiatives contribute to these goals through various programs and policies

Sustainable Products & Innovation

  • Green AT1 Bond (HLB)
  • Solar Plus loan/financing (HLISB)
  • Hong Leong Global ESG Fund (HLAM)

Awards & Recognition

  • The Asian Banker CEO Leadership Achievement for Malaysia Award 2022
  • Best Managed Bank and Financial Holding group in Malaysia (The Asian Banker)
  • Domestic Life Insurer of the Year (HLA)
  • Best Life Insurance Company (HLA)
  • Best Takaful Operator for Malaysia (HLMT)
  • Excellence in Takaful Insurance Services (HLMT)
  • 20 individual Refinitiv Lipper Fund Awards (HLAM)

Reporting Period: 2023-07 to 2024-06

Environmental Metrics

Scope 1 Emissions:103 tCO2e/year
Scope 2 Emissions:25,220 tCO2e/year
Scope 3 Emissions:13,388 tCO2e/year
Total Energy Consumption:35,121.02 MWh/year
Water Consumption:228.0 megaliters/year
Waste Generated:18.8 tons/year

ESG Focus Areas

  • Environmental Management
  • Socially Responsible Business
  • Community Investment
  • Digital at the Core
  • Workforce Readiness

Environmental Achievements

  • 29% decrease in operational (Scope 1 and 2) emissions in Malaysia from FY2019
  • 5% decrease in energy consumption in Malaysia from FY2023
  • 19.1 tonnes of waste diverted from disposal

Social Achievements

  • 3,091 volunteer hours contributed by 1,214 employees under the HLB Employee CSR Programme
  • 73 workshops under our HLB DuitSmart programme, delivering essential financial knowledge and money management skills to close to 8,000 students
  • 26 new schools transitioned to cashless operations

Governance Achievements

  • Zero confirmed incidents of corruption were recorded
  • Zero substantiated complaints concerning breaches of customer privacy or losses of customer data
  • Zero work-related fatalities

Climate Goals & Targets

Long-term Goals:
  • Net Zero for Scope 1, 2 and 3 GHG emissions by 2050
Medium-term Goals:
  • Net Zero for Scope 1 and 2 GHG emissions by 2030
Short-term Goals:
  • 15% to 25% reduction to Scope 1 and 2 GHG emissions by 2026

Environmental Challenges

  • Climate-related physical risks (e.g., floods)
  • Transition risks (e.g., regulatory changes, market shifts)
  • Data limitations in calculating financed emissions
Mitigation Strategies
  • Implementing various Energy Efficiency & Conservation (EE&C) measures
  • Enhanced ESG Due Diligence (EDD) screening approach
  • Improved emissions data collection process
  • Undertaking scenario analysis
  • Climate risk stress testing

Supply Chain Management

Supplier Audits: 99 Tier 1 vendors assessed

Responsible Procurement
  • Procurement Policy with ESG elements
  • Vendor Sustainability Self-Assessment

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
  • Technological changes
Opportunities
  • Green financing
  • Renewable energy
  • Electric vehicles

Reporting Standards

Frameworks Used: Bursa Malaysia’s Main Market Listing Requirements, Bursa Malaysia’s Sustainability Reporting Guide, GRI Universal Standards 2021, TCFD, UN SDGs, PCAF

Third-party Assurance: SIRIM QAS International Sdn Bhd, PwC Limited

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15
  • Goal 16
  • Goal 17

HLB initiatives and programmes aligned with UN SDGs

Sustainable Products & Innovation

  • Green financing solutions
  • HLB Connect App
  • HLB Wallet

Awards & Recognition

  • Global Good Governance Awards 2023
  • Sustainability & CSR Malaysia Awards 2023
  • The Edge Malaysia ESG Awards 2023
  • National Energy Awards 2023