This article first appeared in The Edge Malaysia Weekly on December 12, 2022 - December 18, 2022

Hong Leong Bank Bhd, which won gold in the financial services sector, has sustainability embedded in its corporate value — “Here for the long term” — says group managing director and CEO Domenic Fuda.

“Our sustainability journey so far has involved meaningful engagement with stakeholders to ensure that all our sustainability initiatives and policies are aligned with our business strategies and objectives, facilitating future growth rather than impeding it,” says Fuda.

“We have been transparent about what we have been doing and the progress we are making, so that stakeholders are kept informed of our journey through detailed disclosures in our website, annual sustainability reports, [and] analysts and other stakeholder engagements.”

Hong Leong’s long-term ESG strategies are aligned to its commitment to achieving carbon neutrality by 2050.

The company’s key initiatives include a wealth management services ESG framework; a sustainable procurement policy for vendors; an environmental policy on energy, water and waste management; and a developer end-financing framework.

The wealth management services ESG framework offers wealth management products that integrate ESG considerations into the process. The products leverage Sustainalytics and Morningstar ESG ratings.

“Ensuring buy-in from all internal and external stakeholders — employees, vendors, customers and the communities — within our ecosystem is something we strive for. To this end, we have introduced measurable goals with appropriate timelines, and then following through on the execution and collection of appropriate data to measure progress, ensuring course correction can happen in a timely manner, if needed,” says Fuda.

Additionally, the bank hopes to nurture a more environmentally responsible younger generation through its Earth Hero initiative.

Ultimately, financial institutions have a pivotal role to play in the transition to a sustainable future because it connects all parts of the economy. To help Hong Leong’s corporate, commercial and small and medium enterprise (SME) customers navigate their sustainability journey, the bank has introduced a Sustainability Roundtable Series (SRS).

The series brings together thought leaders from different industries, trade associations, regulators, government agencies and academicians to discuss pertinent sustainability topics with other customers, vendors and business partners.

Through these discussions, greater awareness and knowledge is gained by different segments of society, leading to actions that can be executed in their business operations.

Hong Leong hopes to sharpen its strategies and execution capabilities to transition to a low-carbon economy. This will be done by tapping new markets, adopting an inclusionary approach, continuously assisting its customers and enhancing climate-related disclosures.

Hong Leong has excluded financing of any greenfield coal-fired power plants from July 1, 2021, and will exclude new financing of all coal-fired power plants from July 1, 2026.

“We believe the journey towards sustainability must be collaborative and inclusive. With collective efforts and initiatives from all stakeholders, we can have greater participation and adoption of sustainability from individuals and businesses alike,” says Fuda.

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