Hong Leong Bank Bhd (HLB) has unveiled its first Sustainable Finance Framework (SFF), setting a bold agenda to mobilize RM20 billion over the next five years in support of environmentally conscious projects.
The newly launched framework aims to facilitate Malaysia’s transition to a greener economy by providing financing for initiatives in renewable energy, energy efficiency, sustainable building design, affordable housing, clean transportation, and waste management. The effort aligns with the bank’s broader environmental, social, and governance (ESG) goals.
Kevin Lam, HLB’s group managing director and chief executive officer, underscored the bank’s view of sustainability as both a strategic imperative and a driver of growth. “Sustainability is a catalyst for positive transformation, enabling us to support our customers while broadening our impact,” he said. “By embedding ESG principles into our core strategies and solutions, we aim to align business needs with societal responsibilities.”
Lam added that the SFF would focus on funding projects that accelerate renewable energy adoption, enhance energy efficiency, and promote sustainable transport and circular economy practices. These efforts, he said, would contribute meaningfully to Malaysia’s decarbonization targets.
The SFF adheres to rigorous global and regional standards, including the Loan Market Association’s (LMA) Green, Social, and Sustainability-linked Loan Principles, the International Capital Market Association’s (ICMA) Green and Sustainability Bond Principles, and the Asean Taxonomy for Sustainable Finance (Version 3). The framework is designed to ensure transparency and accountability in the bank’s sustainable financing efforts.
Chow Sheng Wai, HLB’s chief sustainability officer, emphasized the significance of the framework as a cornerstone of the bank’s ESG strategy. “This initiative represents a crucial step in embedding sustainability into our core business, reflecting our commitment to mitigating ESG risks while creating tangible value through sustainable finance,” Chow said.
By advancing projects across diverse sectors, HLB’s RM20 billion commitment signals a significant push towards fostering a resilient, low-carbon economy and advancing the nation’s broader sustainability goals.