Maybank to have financed emissions baseline

Malayan Banking Bhd (Maybank) has become the first bank in Malaysia to establish a Scope 3 financed emissions baseline, identifiying a transition strategy that will shape its future business portfolio.

This brings the bank a step closer to its target of a net-zero carbon position by 2050 as it begins to chart out its financed emissions reduction targets against timelines, the bank said in a statement.

“For banks, financed emissions are indirect emissions related to loans, underwriting, investments and any other financial services.

“Financed emissions are a necessary input for climate scenario analysis, which is crucial in managing climate-related transition risks and opportunities.

“In undertaking this exercise to establish its financed emissions baseline, Maybank adopted the Global Greenhouse Gas Accounting and Reporting Standard for the Financial Industry by Partnership for Carbon Accounting Financials,” it said.

The bank said this methodology focuses on calculating the emissions for six asset classes – listed equities and corporate bonds; business loans and unlisted equities; project finance; commercial real estate; mortgages and motor vehicle loans.

According to Maybank, listed equities and corporate bonds, business loans and unlisted equities and project finance make up close to 80% of the group’s financed emissions.

It said the top five sectors contributing to most of Maybank’s financed emissions are power, oil and gas, agriculture, utilities and construction, while 97% of Maybank’s financed emissions come from its markets in Malaysia, Singapore and Indonesia. — Bernama