RHB Banking Group has significantly elevated its sustainable finance ambition, setting a new target of RM90 billion in Sustainable Financial Services (SFS) by 2027. This represents a substantial increase from its previous goal of RM50 billion by 2026, underscoring RHB’s dedication to achieving Net Zero by 2050 and supporting Malaysia’s transition to a low-carbon economy, with broader ambitions across ASEAN.
Dato’ Mohd Rashid Mohamad, Group Managing Director/Group Chief Executive Officer of RHB Banking Group, said: “Sustainability is no longer optional—it’s a business imperative. As a financial services group, we are committed to driving this transformation.
“Having already achieved approximately 85% of our RM50 billion target, we recognize the growing demand for capital that enables real transition. By raising our ambition to RM90 billion, we are intensifying our efforts to empower businesses, particularly SMEs, to adopt low-carbon practices.
“Transition financing is not just about funding; it’s about equipping businesses to innovate, adapt, and thrive in a rapidly evolving economy.”
He added, “The RM90 billion commitment is a cornerstone of our strategy to achieve Net Zero by 2050, with a strong focus on transition financing and green project investments.
“To realize this, RHB is focusing on three strategic pillars: Expanding Sustainable Financing Solutions, Strengthening Partnerships & Industry Collaboration, and Enhancing ESG Integration & Sustainable Advisory.
“By supporting high-impact sectors in their decarbonization efforts and funding sustainable innovations, we aim to drive meaningful progress toward a low-carbon economy while ensuring long-term resilience and growth.”
As part of its expanded sustainable financing initiatives, RHB is introducing innovative solutions to help businesses adopt greener practices. These include Malaysia’s first Low Carbon Transition Facility (LCTF) Portfolio Guarantee, which improves access to financing for green initiatives, and a RM1 billion Sustainable Trade Finance Programme/-i to support renewable energy and energy efficiency projects.
In 2024, RHB launched Malaysia’s first Sustainable Cross Currency Repurchase Transaction, reducing financing costs for green and social financing activities using Government and Government Guaranteed Securities.
This complements RHB’s existing suite of Sustainable Finance products for SMEs, such as the Green Product Bundling Scheme, which offers tailored financing across four categories: Green Energy, Green Buildings, Green Products, and Green Processes.
To date, nearly RM6.2 billion has been mobilised under this program, with new ESG-linked financing solutions continually being introduced to provide preferential rates based on sustainability performance.
RHB is also strengthening industry partnerships to engage more SMEs and enhance access to green financing. As of December 2024, the Group has engaged over 1,000 SMEs nationwide.
Since launching its Sustainability Strategy in 2022, RHB has mobilized over RM40 billion in sustainable finance, exceeding its initial RM50 billion target ahead of schedule.
This includes 60% in green financing, 21% in social financing, and the remainder in ESG-linked financing and investments. RHB’s leadership in sustainable finance highlights its commitment to driving positive change and building a sustainable future for generations to come.
Source: https://sme.asia/rhb-boosts-sustainable-finance-target-to-rm90-billion-by-2027-empowering-smes-in-green-transition/