KUALA LUMPUR (March 3): Malayan Banking Bhd (KL:MAYBANK) has expanded its decarbonisation efforts by including the automotive and commercial real estate sectors to its transition strategy. 

This brings the total number of sectors with net zero targets by 2030 to six — power, palm oil, steel and aluminium, automotive and commercial real estate.

It also reflects the bank’s broader push to align with Net Zero Banking Alliance (NZBA) targets.

“The net zero White Paper now addresses six hard-to-abate sectors, providing a holistic approach to decarbonisation. This expansion reinforces our long-term commitment to reducing emissions in critical industries, driving meaningful climate actions across high-emitting sectors, vital for achieving our net zero goals,” Maybank group president and chief executive officer Datuk Khairussaleh Ramli said in a statement on Monday.

Maybank said it set its baseline financed emissions intensity for the automotive portfolio at 138g CO2/vkm (cardon dioxide per vehicle kilometres) in December 2023 — 15% lower than the International Energy Agency’s (IEA) Net Zero Emissions pathway for passenger cars. The bank attributed this to a newer, more efficient vehicle mix within its portfolio.

Maybank aims to reduce emissions to 94g CO2/vkm by 2030, claiming that it is the first commercial bank outside Europe to set a retail automotive decarbonisation target. 

Maybank said it is leading the charge in reducing emissions from passenger vehicle financing and promoting the adoption of electric vehicles (EVs).

Achieving this target, Khairussaleh said will require supportive policies, stronger collaboration across the industry, and continued consumer adoption of EVs.

"Equally important is the growing consumer enthusiasm and preference for EVs, which will be instrumental in driving this transition," he added. 

For its commercial real estate portfolio, Maybank said its financed emissions stood at 80.5kg CO2e/m2 as of December 2023, aligning with sector benchmarks like the Carbon Risk Real Estate Monitor and the IEA’s Announced Pledges Scenario. The bank aims to lower this to 56kg CO2/m2 by 2030.

Khairussaleh highlighted that achieving this reduction will depend on supportive policies promoting energy-efficient building, decarbonisation efforts within the power sector, and the commitment of its real estate clients to sustainable practices.

Shares of Maybank were down four sen or 0.37% to close at RM10.68 on Monday, with a market capitalisation of RM128.88 billion.