Maybank to invest RM1.6mil in ESG research

KUALA LUMPUR: Maybank Group will be investing RM1.6 million over the next two years to ramp up its capabilities in environment, social and governance (ESG) research.

The initiative is expected to help pave the way for the emergence of energy transition and decarbonisation solutions in support of the government’s National Energy Transition Roadmap (NETR) and Low Carbon Aspiration 2050.

Maybank’s enhanced ESG research was launched at the Invest Malaysia KL forum here yesterday.

Its president and CEO Khairussaleh Ramli said the NETR would increase the demand for clean energy sources and financing for new infrastructure, technologies and decarbonising energy-intensive industries.

“Given our extensive on-the-ground research, we are strategically placed to become the go-to partner in our clients’ net zero transition journey,” he said.

“Our aspiration is to become a key player in the carbon ecosystem and contribute to a sustainable future for Malaysia and Asean,” he said.

Through the initiative, the impact of material ESG factors on a company’s risks and opportunities, including its revenue, costs and enterprise value would be included in financial analyses.

It will also include impact analysis on the adequacy of sustainability targets, alignment with industry standards and game-changing actions.

Khairussaleh said investors would be better equipped to evaluate the adequacy of ESG initiatives by companies, as well as transition opportunities and risks with more granular analysis.

This should raise investors’ confidence in investing in Asean, which Maybank considers to be a safe harbour in uncertain times, he added.

Maybank is one of the first financial institutions in the region to establish an ESG research team, publish dedicated ESG research, and establish its own proprietary ESG rating and scoring.