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Public Bank and Jati Tinggi Group executives sign memorandum of understanding. (Photo: Jati Tinggi Group)
Malaysia's financial sector is intensifying its efforts to reduce carbon emissions. Public Bank will invest 14.88 million ringgit (about 3.3 million USD) to install solar panels across all its branches and buildings.
Meanwhile, RHB Bank and SME Bank continue to roll out green financing programs to help businesses promote sustainability and reduce Scope 3 emissions.
Public Bank partners with Jati Tinggi to install solar panels
Public Bank has signed a memorandum of understanding with power infrastructure group Jati Tinggi to embark on a three-year solar panel installation project. The initiative will cover 135 branches and 333 buildings, supporting the bank's goal of achieving carbon neutrality by 2030.
Ranked as the third-largest bank in Malaysia by total assets, Public Bank mentioned in its sustainability report that it reduced its overall energy consumption by 2% in 2023, purchased 650,000 kWh of green electricity for the first time, and cut a total of 2,684 tons of carbon across Scope 1, 2, and 3.
The bank has also accumulated sustainable financing worth 53.91 billion ringgit (about 12 billion USD), with a target of increasing this to 100 billion ringgit (about 22 billion USD) by 2030.
The project also marks Jati Tinggi's successful foray into the renewable energy sector. Lim Yeong Seong, Managing Director of Jati Tinggi, expressed, " we are excited to gradually enhance sustainable practices within the banking sector and explore further opportunities in solar energy."
Following the announcement of the partnership, Jati Tinggi's stock price surged by over 17% on Dec. 18ke.
Financial sector keens to reduce Scope 3 emission
The primary source of carbon emissions in the financial sector comes from Scope 3, highlighting the importance of sustainable financing.
Other financial institutions such as RHB Bank and SME Bank have continued to launch financing and investment schemes. On Dec. 17, RHB Bank announced the launch of its Sustainable Trade Finance Program (STFP-i) to meet the funding needs of SMEs and other clients in renewable energy production and energy efficiency applications.
Prior to this, SME Bank announced its sustainable financing targets, aiming to reach 10 billion ringgit (about 2.2 billion USD) by the end of 2030. Additionally, the bank aims for RM 1 billion (about 223 million USD) in green financing to support businesses in achieving the national net-zero target by 2050.
Source: Business Times, Energy Asia, Public Bank, The Star, TechNode Global
