Maybank launched the Transition Finance Framework (TFF) and has 4 commitments to the climate change agenda.

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Why this is useful for you: If you are a business owner, Maybank might be able to help you transition to a more sustainable company. It is inevitable that more regulations will be imposed on businesses for their ESG. So, Maybank’s Transition Finance Framework will be able to help you.

Maybank launched its Transition Finance Framework (TFF) at COP28, and it has marketed itself as the first Malaysian bank that has done this. Here’s what you should know about it, and its 4 commitments.

Here is what Maybank thinks about transition financing.

It will give loans to help businesses and individuals reduce carbon emissions and develop climate-friendly solutions. They will eventually switch to a more sustainable working environment that doesn’t put them out of business in the short term. Many businesses are struggling to do this so Maybank is here to help them ease into it.

Sustainable solutions and funds offered by Maybank

Maybank is offering these solutions to help retail and non-retail customers:

• Solar panel financing scheme
• Green Home financing scheme
• Preferential rates for loans on EVs
• Help companies issue green bonds

Commitment 1: RM80 billion in financing for sustainability purposes by 2025

Maybank will lend, invest, help companies raise funds, and provide advisory services for sustainability purposes. So far, they have provided RM34.4 billion from 2021 to 2022. They will probably have no problem reaching this goal with 3 years left.

Commitment 2: Finance and improve the lives of 2 million households by 2025

Financial literacy is the name of the game here. Maybank will try to improve ASEAN household’s financial knowledge. It has reported that it has improved 871 million households from 2021 to 2022.

Commitment 3: Achieve the company’s net neutral position by 2030

Maybank is aiming for itself to be carbon-neutral by 2030. It announced that it has reduced 40% of its 2019 emissions in 2022. A bigger goal would be to get all its customers to carbon neutral also by 2050.

Commitment 4: 1 million sustainability hours annually for Maybank employees

To be honest, I am not too sure about this. I gather that Maybank employees will spend 1 million hours every year on ‘sustainability’ activities? Not too sure. But hey, they did mention employee volunteerism program. I guess that’s what they are doing.