SME Bank Launches Ambitious Sustainability Roadmap 2.0, Targeting RM11 Billion in Green Financing

SME Bank Malaysia has launched its Sustainability Roadmap 2.0, targeting RM10 billion in sustainable financing and RM1 billion in green transition financing as part of a seven-year strategy aimed at achieving carbon neutrality by 2030. Acting Group President and CEO Datuk Dr Mohammad Hardee Ibrahim emphasized the importance of this initiative in reducing Scope 1 and Scope 2 emissions from fuel and electricity usage.

The roadmap builds on the success of the previous Sustainability Roadmap 1.0, which secured RM5.89 billion in sustainable financing and accounted for 95% of total approvals in 2022 and 2023.

SME Bank Supports Sustainability Initiatives

Deputy Entrepreneur Development and Cooperatives Minister Datuk Seri Ramanan Ramakrishnan highlighted that this roadmap aligns with Malaysia’s Madani Economy framework, promoting sustainable development across all economic sectors. The government supports the Net Zero Carbon agenda through initiatives like the Sustainability Incentive Scheme, launched with RM10 million to enhance the competitiveness of micro SMEs.

Zakiah Mat Esa, Chief Sustainability Officer of SME Bank, detailed a phased approach in the roadmap focusing on regulatory alignment, integrating sustainability practices, and optimizing initiatives for maximum impact by 2030. SME Bank’s commitment is further evidenced by its issuance of three sustainability sukuks, including a recent RM1 billion tranche in May 2023.

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