RHB Banking Group through RHB Investment Bank, brought together a diverse group of local and international investors at the ‘RHB ESG Forum – Envisioning A Better Future’, creating an engaging platform focusing on the topic of Environmental, Social, and Governance (“ESG”) investing.
The three-day event held from 22 June 2021 to 24 June 2021 promotes deeper engagement within the investment community by facilitating discussions on current and future issues and trends surrounding ESG investing in Malaysia. The virtual forum was attended by approximately 300 participants from a wide range of sectors, including Plantation, Gloves, Banking, REITs, Oil & Gas, Telecommunications, and Automotive.
In his opening speech, Dato’ Khairussaleh Ramli, Group Managing Director and Group CEO of RHB Banking Group, said that “2020 has been a year where ESG issues, sustainable finance, and investments were given a lot of focus. We are now starting to see Environmental, Social, and Governance matters being further integrated into investment strategies, as well as the evaluation and decision making process. ESG-centric funds are also growing steadily as investors begin to have a good appreciation and understanding of the critical need to ensure that we address climate change and achieve the United Nations Sustainable Development Goals.”
“ESG investing is now becoming mainstream as investors realise that businesses that consider the impact of their policies and practices on all stakeholders are being rewarded. Increasingly, evidence suggests that companies with strong ESG policies and practices are able to perform stronger than their peers in the long run, have the ability to cope better with economic downturns, and are more resilient in dealing with climate change issues,” he added.
RHB is committed to contribute and create positive impact through sustainable development, with key focus to accelerate green activities. Towards this, the Group has committed to extending RM5 billion by 2025 to support green activities and the transition to a low-carbon and climate resilient economy, through lending, capital markets advisory and investment.
Year to date (“YTD”), RHB’s green financing commitments have increased to around RM3.25 billion reinforcing its commitment to support green activities across lending, capital markets advisory and investment activities. RHB Asset Management had launched 3 ESG-themed funds (SRI-qualified funds) this year with combined SRI AUM of approximately RM760 million, and plans to launch up to two more funds this year.
“Moving forward with effect from 2022, as part of the wider effort to align with our Sustainability Framework, principles and core pillars, RHB will focus on opportunities for clean energy and green financing, and will not be pursuing opportunities or provide financing for any new coal fired power plants project or related activities. We look forward to increasing our engagement with our clients to advocate and nurture the integration of sustainable practices into their business operations.” Dato’ Khairussaleh added.
RHB has improved its S&P Global ESG Score to 43 in 2020 from 23 in the previous year. It has remained a constituent in the FTSE4Good Bursa Malaysia Index as of June 2021, and maintained an AA rating (Leader) for MSCI ESG Ratings.
The RHB ESG Forum – Envisioning A Better Future underlines RHB Banking Group’s commitment to ensuring the creation of a more sustainable future through promoting greater collaboration between local and international investing community and market players.
