SME Bank is aligning with the Government’s goal of achieving Net Zero GHG emissions by 2050, launching its seven-year Sustainability Roadmap 2.0 to address climate-related risks and advance its sustainability objectives.
The new roadmap follows the successful completion of the initial three-year Sustainability Roadmap 1.0 (2021–2023), which saw over RM5.89 billion in sustainable financing approved, making up about 95% of the Bank’s total approvals in 2022 and 2023.
This progress underscores SME Bank’s commitment to sustainability in line with national and global standards.
Datuk Dr. Mohammad Hardee Ibrahim, Acting Group President and CEO, remarked, “As the first development financial institution (DFI) in Malaysia to implement a seven-year sustainability roadmap, SME Bank is intensifying its ESG practices to achieve Net Zero emissions by 2050. Roadmap 2.0 is a testament to our strong sustainability focus, building on the accomplishments of Roadmap 1.0.”
Moving forward, SME Bank is targeting RM10 billion in sustainable financing and RM1 billion in green financing by 2030, buoyed by the RM100 million Dana Kelestarian fund announced in Malaysia’s National Budget 2025.
Zakiah Mat Esa, Chief Sustainability Officer of SME Bank, explained that Roadmap 2.0 is structured in three phases: regulatory alignment, integration of sustainability practices, and optimization of sustainability initiatives to achieve carbon-neutral operations by 2030.
The roadmap encompasses seven targets across three sustainability pillars and aligns with Bank Negara Malaysia’s Climate Risk Management and Scenario Analysis Policy Document. SME Bank also developed a Sustainability Sukuk Framework in line with international standards, issuing Malaysia’s first DFI Sustainability Sukuk in 2021.
The bank has since issued further tranches of RM500 million in 2022 and RM1 billion in 2023, earning seven accolades, including Best ASEAN Green SRI Sukuk by Alpha Southeast Asia and SRI & ESG Deal of the Year from Islamic Finance News.
In response to rising demand for sustainable financing, SME Bank offers green financing options supported by BNM’s Low Carbon Transition Facility and High Tech & Green Facility. SME Bank has also initiated the Skim Insentif Kelestarian (SIK) to support SMEs in ESG adoption, training over 1,508 SMEs through its subsidiary, CEDAR.
