Its group managing director Datuk Khairussaleh Ramli said on Wednesday through the RM5bil commitment, “we hope to play a bigger role in supporting the growth of the green economy by encouraging our customers to adopt more sustainable business practices”.

As at Sept 30, the group has grown its green financing portfolio to RM3bil, up by 6.3% from Dec 31,2019 which include renewable energy, green buildings, sustainable water and wastewater management.

In a statement, it said the RHB Sustainability Framework involves embedding sustainable practices into the group’s business and operations.

This is part of its sustainability vision of building a sustainable future, premised on three key pillars of “Sustainable and Responsible Banking, Embedding Good Practices and Enriching and Empowering Communities”.

Khairussaleh said the banking group was stepping up its efforts to support the country’s aspiration to transition to a low-carbon and climate resilient economy.

“Promoting the growth of the green economy involves channelling capital towards supporting sectors and economic activities that can make the biggest difference in the fight against climate change.

“This also requires us to nurture businesses, and stimulate innovation and development of environmentally-friendly products and services, ” he said.

RHB Investment Bank Bhd, the investment banking arm of RHB Banking Group was recently awarded the Green Deal of the Year at the Asian Banking & Finance Corporate & Investment Banking Awards 2020 for arranging a RM200mil Asean Green SRI Sukuk programme.

The maiden issuance under the programme was awarded the Best Asean Green SRI Sukuk at The Asset Triple A Islamic Finance Awards 2020.

The programme adopts the Shariah principles of Wakalah Bi Al-Istithmar and Murabahah (via Tawarruq arrangement).

Proceeds from the issuance are used to fund sustainable and responsible investment projects, among other Shariah-compliant purposes. RHBIB was the sole principal adviser, sole lead arranger and sole lead manager for the programme.

Elaborating on its green financing, Khairussaleh said RHB Banking Group has put in place a clear roadmap in promoting sustainable and responsible financing within the group, by ensuring that its risk management processes integrate Environmental, Social and Governance (ESG) considerations.

“On the other hand, we are also mindful of the stage of the development of the country and the need to be practical in our adoption of ESG considerations.

“Our role within the community goes beyond simply advocating commitment to green financing, but also ensuring socio economic well-being of our communities, ” he added.