RAM Sustainability assigns Gold Sustainable Finance Rating to Hong Leong Bank Berhad’s Sustainable Finance Framework

Published on 30 Oct 2024.

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RAM Sustainability has completed the external review of Hong Leong Bank Berhad’s (HLBB or the Bank) Sustainable Finance Framework (the Framework) and accorded it a Gold Sustainable Finance Rating.

We have also concluded that the Framework’s level of disclosure is Aligned with the International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines as well as the Loan Market Association’s Green Loan Principles and Social Loan Principles (collectively, the Standards).

HLBB is a Malaysian-based regional financial services institution under the Hong Leong Financial Group that provides commercial banking and related services. The Bank established the Framework (also applicable to Hong Leong Islamic Bank Berhad (HLISB)) to guide the development of green and sustainable finance products and provide the basis for the evaluation and monitoring of eligible businesses or economic activities.

According to HLBB, the proceeds will be used predominantly for financing in the form of loans to eligible projects and businesses whose primary business activities are eligible projects. HLISB will finance shariah-compliant businesses and projects to fulfil Value-Based Intermediation principles in line with shariah requirements. HLBB’s Business and Corporate Banking Environmental, Social and Governance (ESG) Policy & Assessment Framework guides the due diligence process and ensures eligible projects sufficiently address potential ESG risks that may arise in the Bank’s financing activities.

Under the Framework, the Bank may finance or refinance a broad range of eligible projects which are viewed to contribute to positive environmental and social impacts and are aligned to the Bank’s sustainability strategies. The strongest positive impact is likely to stem from the Bank’s green financing for solar and hydro power, green buildings and green vehicles as well as social financing for affordable properties (see Table 1).

 

Analytical contact
Amirah Jamil
(603) 3385 2551
amirah@ram.com.my

Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my

 

This external review or second opinion is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for an investor, nor does it involve any audit by RAM Sustainability. 

About RAM Sustainability

RAM Sustainability Sdn Bhd (RAM Sustainability) is a provider of sustainability services and ESG analytics. Incorporated on 31 May 2000, RAM Sustainability is a wholly owned subsidiary of RAM Holdings Berhad (RAM Group). RAM Sustainability is the first ASEAN-based provider of ESG ratings and second opinions and has the distinction of being the first Registered Observer of ICMA’s Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and Sustainability-Linked Bond Principles in ASEAN. It was a member of ICMA’s Advisory Council to the GBP and SBP Executive Committee for three consecutive terms. On 12 August 2020, RAM Sustainability became an Approved Verifier for the certification of climate bonds under the Climate Bonds Standard & Certification Scheme after having been awarded the status by the Climate Bonds Standards Board. For further details, go to https://www.ram.com.my/sustainability.

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