Malaysia’s Hong Leong Bank (HLB) has introduced its inaugural Sustainable Finance Framework (SFF), aiming to mobilise US$4.5 billion (RM20 billion) over the next five years for Green Projects.
The SFF will channel funds into priority areas including renewable energy, energy efficiency, green building, affordable housing, clean transportation, logistics, and waste management, aligning with HLB’s broader sustainability objectives.
Group Managing Director and CEO Kevin Lam said, “Sustainability acts as a catalyst for growth, driving positive transformation for our customers and broadening our reach. Integrating ESG considerations into our core strategies, we aim to balance responsibility with business needs.”
HLB has set a target of US$911 million (RM4 billion) in renewable energy financing by 2025 and has approved over US$797 million (RM3.5 billion) in financing to date.
The HLB SFF aligns with key industry standards, including the Loan Market Association’s Green, Social, and Sustainability-linked Loan Principles; the International Capital Market Association’s Green, Social, and Sustainability Bond Principles; and Malaysia’s Principles-Based Sustainable and Responsible Investment Taxonomy.
Chow Sheng Wai, chief sustainability officer of HLB said, “The HLB SFF is more than just a framework for the Bank; it’s a roadmap for a greener future for our next generation. Apart from adhering to rigorous standards and aligning with global best practices, we also sought independent assessment from a Second Party Opinion Provider, RAM Sustainability, achieving a Gold rating.”
