KUALA LUMPUR, Jan 15 (Bernama) -- RHB Banking Group launched its Sustainable and Transition Finance Framework (STFF) to support customers at every stage of their sustainability transformation.
The bank said the STFF is aligned with global best practices, including the International Capital Market Association (ICMA) principles and the ASEAN Taxonomy for Sustainable Finance, and validated by an independent Second-Party Opinion (SPO), Sustainalytics.
RHB Banking Group managing director and group chief executive officer Datuk Mohd Rashid Mohamad said the framework serves as a strategic roadmap to accelerate the shift towards low carbon economy.
“By providing clear criteria for sustainable financing and investment, we are bridging the gap for hard-to-abate sectors ensuring they have the necessary resources to transition.
“This framework will not only help us to mitigate long-term climate risks but also empowers our clients to innovate, ensuring that the transition to a sustainable future is both inclusive and economically viable," he said in a statement.
RHB said that for many companies, particularly those in high emission, hard-to-abate and resource intensive sectors, the transition pathway towards a low carbon economy and net zero can be complex due to fragmented financing options.
Therefore, the bank said the STFF helps address this by offering a clear, consistent and accessible framework for corporates, government-linked companies (GLCs) and small and medium enterprises (SMEs) to mobilise capital for eligible sustainable and transition activities.
Mohd Rashid said the framework makes the sustainability pathway more achievable for its customers.
“Our role is not only to provide sustainable and transition financing, but also to be a purposeful partner in supporting them towards net-zero carbon emissions,” he said.
-- BERNAMA
