KUALA LUMPUR (Nov 11): RHB Banking Group has committed RM5 billion in support of green financing by 2025, through its core business activities of lending, capital markets advisory and fundraising, together with investment.

In a statement, RHB said the commitment is in line with its sustainability framework, which outlines its approach towards embedding sustainable practices into its business and operations.

As at Sept 30, the group had grown its green financing portfolio to RM3 billion, up 6.3% from Dec 31, 2019 in support of green projects which include renewable energy, green buildings, sustainable water and wastewater management.

"We are stepping up our efforts to support the country's aspiration to transition to a low-carbon and climate-resilient economy. Promoting the growth of the green economy involves channelling capital towards supporting sectors and economic activities that can make the biggest difference in the fight against climate change," said RHB group managing director Datuk Khairussaleh Ramli.

Khairussaleh added that the promotion of the green economy also entails nurturing businesses, and stimulating innovation and development of environmentally friendly products and services.

"We hope to play a bigger role in supporting the growth of the green economy by encouraging our customers to adopt more sustainable business practices through our RM5 billion commitment for green financing by 2025," added Khairussaleh.

"We have put in place a clear road map in promoting sustainable and responsible financing within the group, by ensuring that our risk management processes integrate environmental, social and governance (ESG) considerations.

"On the other hand, we are also mindful of the stage of the development of the country and the need to be practical in our adoption of ESG considerations. Our role within the community goes beyond simply advocating commitment to green financing, but also ensuring the socio-economic well-being of our communities," he added.

RHB also supports the United Nations Sustainable Development Goals (SDGs), including SDG13 (climate action) and believes that its sustainability framework will contribute towards the achievement of these goals as well as the group's sustainability vision and aspirations.

At lunch break, RHB Bank Bhd's share price fell four sen or 0.62% to RM4.82, giving it a market capitalisation of RM19.37 billion.