Maybank Boosts ESG Research for ASEAN Decarbonisation

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by KnowESG,

Maybank

KnowESG_Maybank facilitates ASEAN-s decarbonisation goals
Image courtesy of Maybank

Maybank, a leading financial institution, has taken a significant step towards sustainability with its M25+ strategy, in which Sustainability serves as a strategic pillar.

The Maybank Group recently unveiled its groundbreaking Enhanced Environment, Social and Governance (ESG) Research during the Invest Malaysia KL event's Special Series in Kuala Lumpur, focusing on the launch of the National Energy Transition Roadmap (NETR), Part 1: Flagship Catalyst Projects and Initiatives.

The primary objective of Maybank's Enhanced ESG Research is to provide actionable insights to foster energy transition and decarbonisation solutions for clients within the Group. Moreover, this initiative aims to support the government's National Energy Transition Roadmap (NETR) and Low Carbon Aspirations 2050, aligning the bank's efforts with the country's sustainable development objectives.

Maybank has long been recognised as a pioneer in ESG research for equities, particularly in assessing companies and their progress in renewable energy within the ASEAN region.

As one of the first banks in the area to establish a dedicated ESG research team, publish exclusive ESG research, and develop its proprietary ESG rating and scoring system, Maybank's commitment to sustainability stands out.

As of June 30, 2023, all companies under its research coverage have undergone ESG tearsheet analysis for ESG issues, with 60% receiving ESG ratings and scores based on Maybank's methodology.

Looking ahead, Maybank aims to leverage its first-mover advantage by expanding and optimising its regional ESG research thematic and stock coverage. The Enhanced ESG Research initiative plans to integrate ESG analysis with financial analysis to gauge the impact of material ESG factors on a company's risks, opportunities, revenue, costs, and enterprise value. "Impact Analysis" will be conducted to assess the sustainability targets' adequacy, alignment with industry standards, and game-changing actions.

To achieve the goals of this new research initiative, Maybank has pledged RM1.6 million over two years for professional certification and upskilling, further enhancing its analysts' capabilities in ESG research.

Dato' Khairussaleh Ramli, Maybank Group President & CEO, expressed the bank's strategic positioning to become a go-to partner for clients in their net-zero transition journey, contributing to a sustainable future for Malaysia and the ASEAN region.

Dato' Khairussaleh Ramli further emphasised the significance of Enhanced ESG Research in enabling investors to assess companies' ESG initiatives and transition opportunities and risks more effectively, thereby boosting confidence in investing in ASEAN as a safe harbor in uncertain times.

Michael Oh-Lau, CEO of Maybank Investment Banking Group, shared his long-term vision, acknowledging sustainability as ASEAN's next alpha opportunity. As ESG scrutiny intensifies, Maybank's equities and sustainability research teams are poised to seize more opportunities to add value and maintain their position as best-in-class.

Coinciding with the NETR launch, Maybank also released a thematic report titled "ASEAN Mobility: Poised For EV Acceleration," providing a comprehensive guide for policymakers, investors, and businesses to facilitate the rapid adoption of electric vehicles (EVs) within the region.

The report highlights the immense potential for EV growth in ASEAN, with EV sales accounting for only 2.1% of total vehicle sales, compared to higher percentages in China (29%), Europe (21%), and the global average (14%) as of the end of 2022.

Maybank's mobility transition report affirms the irreversible nature of this shift, given that EVs are significantly more energy-efficient and have lower lifecycle emissions compared to traditional vehicles. The transition towards EVs also presents economic gains for Malaysia, an established auto manufacturing hub, as it opens up opportunities for the EV parts ecosystem.

Maybank's Enhanced ESG Research exemplifies a marquee thought leadership initiative dedicated to driving the transition towards a net-zero future across the ASEAN region, in line with the Group's broader sustainability goals.

The bank has already made commendable progress in achieving its targets, including mobilising sustainable finance amounting to RM38.8 billion as of the end of 1Q 2023 (out of its RM80 billion target by 2025).

Moreover, Maybank has positively impacted the lives of 969,091 people across ASEAN (targeting 2 million by 2025) and reduced 41% of its Scope 1 and 2 emissions against its 2019 baseline.

Notably, the Group has also responded to the growing demand for EV financing, having mobilised RM480 million for EV financing in the current year, representing a 54% increase from the previous year.

This surge in demand is attributed to Maybank's introduction of the first integrated automobile financing for EV and hybrid cars in March 2023, offering comprehensive solutions encompassing financing, insurance, takaful coverage, and EV charging privileges.

In collaboration with its insurance and takaful unit, Etiqa, Maybank has launched Tesla Ensure, an additional coverage offering, providing reimbursements of up to RM12,000 for EV home charger replacement or repair and Special Relief Allowance in case of loss and theft.

Maybank's Enhanced ESG Research and comprehensive efforts towards sustainability demonstrate the bank's commitment to driving positive change and positioning itself as a crucial player in fostering a sustainable future for Malaysia and the ASEAN region.

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Source: Maybank

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