KUALA LUMPUR (July 31): Malayan Banking Bhd (Maybank) has enhanced its environment, social and governance (ESG) research under its M25+ strategy, with sustainability as the strategic pillar.

In a statement, Maybank said the enhanced ESG Research aims to provide actionable ESG insights for ideating energy transition and decarbonisation solutions for its clients and support the ambitions of the government’s National Energy Transition Roadmap (NETR) and Low Carbon Aspirations 2050.

"As a pioneer of ESG research for equities, Maybank has been recognised by the industry for its depth of analysis of companies and renewable energy progress in Asean. It is one of the first banks in the region to establish an ESG research team, publish dedicated ESG research, and establish its own proprietary ESG rating and scoring," the bank said.

“Maybank will continue to build upon this first mover advantage to expand and optimise its regional ESG research thematic and stock coverage. Under the enhanced ESG Research initiative, Maybank’s ESG analysis will be elevated and integrated into financial analysis to evaluate the impact of material ESG factors on a company’s risks and opportunities including its revenue, costs and enterprise value." it said.

It will also include "impact analysis" on the adequacy of sustainability targets, alignment with industry standards and game-changing actions.

“In achieving the goals of this new research initiative, Maybank is committing RM1.6 million over two years, for professional certification and upskilling, to elevate the capabilities of [Maybank] analysts for ESG research,” the bank said.

Maybank group president and chief executive officer Datuk Khairussaleh Ramli said Maybank is strategically placed to become the go-to partner in our clients’ net zero transition journey supporting by the group’s extensive on-the-ground research.

“Our aspiration is to become a key player in the carbon ecosystem and contribute to a sustainable future for Malaysia and Asean.

“With more granular analysis under our enhanced ESG Research, investors will be better equipped to evaluate the adequacy of ESG initiatives of companies and the transition opportunities and risks. This should raise confidence in investing in Asean, which we consider to be a safe harbour in uncertain times," he said.

As of June 30, 100% of the companies under Maybank’s research coverage have ESG tearsheet analysis of E, S and G issues, and 60% have been rated and scored for ESG according to Maybank’s methodology.

Meanwhile, Maybank Investment Banking Group CEO Michael Oh-Lau said as ESG scrutiny intensifies, it will create more opportunities for Maybank's equities and sustainability research teams to add value.

"Our investment in delivering ESG insights has already bore fruit with higher rankings given by institutional clients. We are ommitted to becoming best-in-class and staying ahead of the learning curve," Oh-Lau said.

In conjunction with the launch of the National Energy Transition Roadmap (NETR) last week, Maybank also released a thematic report on mobility transition called “Asean Mobility: Poised For Electrical Vehicles (EV) Acceleration” as a reference guide for policymakers, investors and businesses to lay the foundation for rapid adoption of EVs.

"As at end of the first quarter of 2023 (1Q2023), Maybank has cumulatively mobilised sustainable finance of RM38.8 billion, out of its target of RM80 billion by 2025, cumulatively improved the lives of 969,091 people across Asean (target two million by 2025), and reduced 41% of its Scope 1 and 2 emissions against its 2019 baseline," it said.

Of the total sustainable finance mobilised, Maybank included a RM480 million for EV financing year-to-date, a 54% increase from RM310 million in 2022. The surge in demand is due to Maybank’s launch of the first integrated automobile financing for EV and hybrid cars in March 2023 that offers holistic solutions of financing, insurance, takaful coverage and EV charging privileges.

On July 21, Maybank announced that Tesla buyers opting for the integrated automobile financing would enjoy preferential rates and flexible repayment options, with up to 90% margin of financing.

Maybank’s insurance and takaful unit Etiqa also launched Tesla Ensure to provide additional coverage such as reimbursements of up to RM12,000 to replace or repair EV home chargers, and a special relief allowance due to loss and theft.

Maybank shares closed three sen or 0.33% higher at RM9.02 on Monday (July 31), valuing the group at RM108.73 billion.