Bank Goes Green: HLB's New Plan for Sustainable Loans

On October 29, 2024, Hong Leong Bank (HLB) kicked off its journey into greener finance with the launch of its Sustainable Finance Framework (SFF). This initiative aims to invest a whopping US$4. 5 billion (RM20 billion) over five years to support projects that promote sustainability. The bank has been backing green initiatives for a while, having already given out US$273 million in green auto loans and US$3. 3 billion in green and affordable mortgages. So, what exactly is this framework about? It's designed to fund projects in renewable energy, energy efficiency, green buildings, affordable housing, clean transportation, and waste management. HLB's CEO, Kevin Lam, sees sustainability as a growth driver, helping the bank reach new customers. The framework adheres to global standards like those from the Loan Market Association and the International Capital Market Association. HLB has set an ambitious goal to finance US$911 million worth of renewable energy projects by 2025 and has already approved over US$797 million. The bank has also received a gold rating from RAM Sustainability for its SFF. Chow Sheng Wai, HLB's chief sustainability officer, thinks of the SFF as a roadmap for a greener future. HLB has been recognized for its environmental, social, and governance (ESG) efforts, winning awards like the Overall Excellence award from the Minority Shareholders Watch Group and double gold awards from The Edge Malaysia ESG Awards in 2022 and 2023.