KUALA LUMPUR (May 30): To achieve its net zero emissions goal by 2050, Malayan Banking Bhd (KL:MAYBANK) has identified interim decarbonisation targets for the bank’s palm oil and power portfolios.

The whitepaper, entitled “Banking on a better tomorrow: Our commitment to net zero”, serves as the bank’s primary instrument to publicly communicate its commitments to sustainable growth, Maybank president and chief executive officer Datuk Khairussaleh Ramli said in a statement on Thursday.

Maybank aims to reduce financed emissions intensity for its palm oil portfolio from a June 2023 baseline of 1.47 tonnes of carbon dioxide equivalent per tonne of crude palm oil (tCO2e/tCPO) produced to 1.40 tCO2e/tCPO by 2030.

“This (the 2023 baseline) is well below the reference scenario of 2.04 tCO2e/tCPO. This significant achievement is guided by an integrated reference scenario that combines the Science Based Targets Initiative (SBTi) Flag pathway, tailored for palm oil, with the Network for Greening the Financial System (NGFS) REMIND, which accounts for methane emissions from palm oil milling,” the statement read.

As for the power sector, Maybank has targeted to reduce its financing power emissions intensity from a June 2023 baseline of 442 kg carbon dioxide equivalent per megawatt-hour (kgCO2e/MWh) to 272 kgCO2e/MWh by 2030, based on the regionalised International Energy Agency Net Zero Emissions by 2050 Scenario (IEA NZE 2050) reference pathway.

Its power emissions intensity baseline of 442 kgCO2e/MWh is already below the regional benchmark of 573 kgCO2e/MWh, which represents the average level of carbon emissions from power generation in the region.

Meanwhile, the bank said it will continue to enforce its coal policy, whereby no financing will be extended to new greenfield coal-fired power plants and borrowers who derive a material amount of annual revenue from thermal coal.

Khairussaleh said Maybank is well positioned to offer financing for its clientele and the broader palm oil and power ecosystem to support the energy transition in the region.

“By setting ambitious yet achievable targets and implementing a combination of regulatory measures, incentives, and technological innovations, we firmly believe that both sectors can play a crucial role in achieving net zero emissions by 2050,” he added.

At the noon break, shares in Maybank stood one sen or 0.1% higher at RM9.91, valuing Malaysia’s largest bank by assets at RM119.58 billion.