AmBank maintains “AA” rating for MSCI ESG ratings
KUCHING: AMMB Holdings Bhd (AmBank Group) has maintained the “AA” rating from MSCI ESG Ratings which it initially attained in 2020.
This ESG rating of ‘AA’ places AmBank Group among the top 32 per cent of 190 banks rated globally based on the MSCI ACWI Index constituents, of which only four per cent have been accorded the highest rating of AAA.
The rating was based on an assessment of AmBank Group’s practices covering six broad areas namely financing environmental impact, access to finance, human capital development, privacy and data security, consumer financial protection, corporate governance and corporate behaviour.
The rating was driven primarily from AmBank Group corporate governance practices which falls into the highest scoring range for all the companies assessed relative to global peers, indicating that AmBank Group’s practices are well aligned with shareholder interests.
The rating also highlights that AmBank Group ranks ahead of its global top five peers in its customer financial protection due to its adoption of best practices in inter alia employee training on customer financial protection.
AmBank Group chief executive officer, Datuk Sulaiman Mohd Tahir said that this globally recognised rating by MSCI ESG Ratings which AmBank Group has maintained since 2020 is testament of the group’s consistency and tenacity in following through its ESG agenda which has redefined its business and operational approach hinged firmly on sustainable and responsible banking principles.
He added, “Sustainability is a central component of our strategic vision of ‘Growing Trust, Connecting People’ and a core consideration in all that we do as a trusted partner on the financial frontier.
“With adherence to ESG standards as a key strategic focus, AmBank Group consciously embarks on inculcating responsible and inclusive practices as part of our fiduciary duties, in the delivery of sustainable financial products and services,” he said.
“This includes AmBank Group’s partnership with renewal energy companies to supply solar panels to AmBank Group’s customers.”
To ensure AmBank Group’s portfolio are aligned, AmBank Group has expanded its exclusion list for new loans and financing in relation to coal whereby with the exception of the national energy/power company, AmBank Group will no longer provide new or additional loans and financing to businesses where coal or coal-related activities constitute at least 20 per cent of the business’ total revenue or cost of production.
AmBank Group has also enhanced its ESG Risk Assessment to include climate change considerations.
As part of AmBank Group’s long-term strategy to achieve Net Zero Carbon, AmBank Group continues to embrace green and renewable energy. AmBank Group is the first financial institution in Malaysia to install solar photovoltaic panels on its building in April 2021 as part of its carbon offset initiative.
AmBank Group is also the first financial institution to be awarded the Energy Management Gold Standard Certification in May 2022.
In July 2022, AmBank Group signed-up to become a rask force on climaterelated financial disclosures supporter as its commitment to increase its transparency on its climate-related risks and opportunities.