KUALA LUMPUR: RHB Bank Bhd has increased its 2026 sustainable financial services target to RM50 billion from RM20 billion previously following strong achievements to date.

Group managing director and chief executive officer Mohd Rashid Mohamad said that the group has cumulatively mobilised RM23.8 billion in sustainable financial services by the end of the financial year of 2023 (FY2023), exceeding their initial target of RM20 billion by 2026.

"Of this, RM11.3 billion was directed towards green activities, including renewable energy projects and energy efficiency solutions, contributing towards our goal of achieving net zero by 2050,” he said in a statement today.

In developing its net zero commitment, RHB undertook a comprehensive financed emissions baselining exercise in FY2023, establishing a baseline of 9.26 tonnes of carbon dioxide equivalent (MTCO2e) for total financed emissions as at Dec 31, 2022.

"Recognising that some sectors contribute more significantly, RHB prioritises five high-impact sectors, namely energy supply, palm oil, oil and gas, property and construction, and transportation.

"These sectors represent nearly 60 per cent of the group’s financial exposure and over 80 per cent of financed emissions (7.63 MTCO 2e),” the group said, adding that RHB’s strategy to achieve net zero by 2050 focuses on reducing the financed emissions arising from these five high-impact sectors.

By 2030, RHB aims to achieve a 20 per cent reduction in these sectors. By 2050, RHB’s goal is to accomplish up to 96 per cent reduction in financed emissions across these sectors.

The statement also said that RHB has made significant progress towards carbon-neutral operations, achieving a 43 per cent reduction in operational greenhouse gas (GHG) emissions against a 2016 baseline, encompassing Scopes 1, 2, and 3 (Business Travel by Road and Air).

The group aims to achieve a 45 per cent reduction in operational GHG emissions by 2026 and achieve carbon-neutral operations by 2030 through internal initiatives and carbon offsets.

"We will continue to engage with our clients, business partners, employees, and the broader community to embark on our net zero journey together.

"We shall also collaborate with governmental bodies, regulatory authorities and other stakeholders to create a scalable impact, while at the same time, being guided on the progress and development of government policies, directives and incentives towards achieving our net zero 2050 commitment,” Mohd Rashid said. - Bernama