Malaysia's RHB sets sights on Net Zero by 2050

• Mobilised RM23.8b in sustainable financial services at end FY2023
• 3-pronged strategy with clear objectives to translate commitment into action
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The RHB Banking Group (RHB) has set a path towards a future that is climate-positive by revealing a comprehensive roadmap to achieve net-zero emissions by 2050. Leveraging its 5-Year Sustainability Strategy and Roadmap (2022-2026), RHB is strengthening its climate commitment by establishing a new Pillar 2, ‘Committed to Achieving Net Zero by 2050’. 

This pillar expands upon the Group’s existing climate focus, outlining focus areas: Reduction of Financed Emissions, driving growth in Green Financial Services and Supporting Companies Committed to Carbon Neutrality, and Integration of sustainable and low-carbon practices into its own operations.

The Net Zero commitment of the Group acknowledges that the financial sector plays a crucial role in directing investment towards low-carbon and sustainable activities and is in line with Malaysia's goal of achieving net-zero emissions by 2050. It has established a three-pronged strategy with clearly defined objectives to translate this commitment into action.

In Strategic Objective 1, RHB aims to reduced financed emissions in five high-impact sectors within its business. These high-impact sectors - energy supply, palm oil, oil & gas, property & construction, and transportation - represent nearly 60% of the Group's financial exposure and over 80% of financed emissions. By 2030, RHB aims to achieve a 20% reduction in these sectors, and up to 96% reduction in financed emissions across these sectors by 2050.

Strategic Objective 2 aims to drive growth in green financial services and supporting companies committed to carbon neutrality. It targets to achieve 40% of the group’s portfolio in Green Financial Services and supporting companies committed to carbon neutrality with a clear and established transition strategy by 2030, with that number rising to 90% by 2050.

Strategic Objective 3 aims to integrate sustainable and low-carbon practices into RHB’s own operations. It claims to have achieved a 43% reduction in operational GHG emissions against a 2016 baseline, encompassing Scopes 1, 2, and 3 (Business Travel by Road and Air). The Group aims to achieve a 45% reduction in operational GHG emissions by 2026 and achieve carbon neutral operations by 2030 through internal initiatives and carbon offsets.

“Demonstrating our commitment to sustainability, we have cumulatively mobilised RM23.8 billion in sustainable financial services by the end of FY2023, exceeding our initial target of RM20 billion by 2026. Of this, RM11.3 billion was directed towards green activities, including renewable energy projects and energy efficiency solutions, contributing towards our goal of achieving Net Zero by 2050. Considering our strong achievements to date, we have increased our target to RM50 billion by 2026,” said Mohd Rashid Mohamad, Group MD/Group CEO of RHB Banking Group.

The bank acknowledges its Net Zero pathway is a commitment to the communities it serves, the environment, and the future, ensuring progress happens for everyone.

However, it recognises that the journey to achieving Net Zero cannot be carried out in silo and assures it will continue to engage with clients, business partners, employees, and the broader community to embark on its Net Zero journey together.

“We shall also collaborate with governmental bodies, regulatory authorities  and other stakeholders in order to create a scalable impact, while at the same time, be guided on the progress and development of government policies, directives and incentives towards achieving our Net Zero 2050 Commitment,” Mohd Rashid added.