20/05/2026

ESG WEDNESDAY | MAY 20, 2026

12

RHB achieves MSCI AAA ESG rating o Upgrade reflects investor confidence in group’s ability to deliver sustainable growth

KUALA LUMPUR: RHB Banking Group has been upgraded from AA to AAA in the MCSI ESG Rating, the highest possible rating, placing the group among the top-tier of global financial institutions in its management of ESG risks and opportunities. The upgrade reflects growing confidence among global investors in RHB’s ability to deliver sustainable growth, anchored by disciplined execution in scaling sustainable finance, reducing financed emissions across priority sectors, and strengthening governance and risk management practices across the group. As at FY2025, RHB has cumulatively mobilised approximately RM60 billion in sustainable financial services, with a target of RM90 billion by 2027. The group has also achieved a 13.2% reduction in financed emissions across five priority, high-emission sectors against its 2022 baseline, alongside a 49% reduction in operational greenhouse gas emissions against its 2016 baseline. Group managing director/Group CEO Datuk Mohd Rashid Mohamad said: “This upgrade to MCSI AAA affirms the progress we have made in embedding sustainability into how we operate as a bank. KUANTAN: Tradewinds Corporation Bhd’s hospitality arm, Mutiara Taman Negara, is in the early stages of developing a waste management plan aligned with the United Nations Sustainable Development Goals (UNSDG). Resort manager Lex Lam said while no formal zero-waste measures are in place yet, the resort is exploring ways to reduce single use plastics, food waste, and other operational waste, with phased implementation planned. “Our master plan prioritises the use of durable and sustainable construction materials. Rather than relying on timber based structures, the development will utilise composite and other practical materials designed for longevity and lower environmental impact. “This approach helps reduce the need for timber sourcing while also minimising issues such as termite infestation, which would otherwise require chemical treatments that may affect the surrounding ecosystem. “Our sustainability journey also includes participation in the Global Sustainable Tourism Council (GSTC) certification process, demonstrating our commitment to responsible tourism practices. “Achieving GSTC recognition will strengthen our brand credibility with international travellers while meeting the growing demand for eco-conscious destinations. “We have already completed Phase 1 of the GSTC training programmes with our core team and will continue progressing through the certification process alongside the property’s renovation plans,” he said. Lam said Mutiara Taman Negara’s plan is to incorporate GSTC-aligned criteria into the resort’s lodge master plan renovation, which will help improve sustainability practices and credibility for environmentally conscious travellers. Ű BY JOHN GILBERT sunbiz@thesundaily.com

benchmark by global investors, covering more than 17,000 issuers worldwide. The ratings assess companies on their resilience to financially relevant ESG risks and opportunities relative to industry peers, with AAA representing the highest rating and indicating leadership in ESG risk management. RHB’s sustainability leadership credentials are further underpinned by its continued inclusion in the FTSE4Good Bursa Malaysia Index, recognition by S&P Global’s Corporate Sustainability Assessment, and strong positioning among Malaysia’s top-ranked ESG performers. As the group advances under PROGRESS27, RHB will continue to scale sustainable and transition finance, deepen its sustainability capabilities, strengthen ESG risk integration, expand solutions that support customers across different stages of their sustainability journeys, and deliver measurable outcomes that support inclusive and low-carbon growth across the region. SC launches RIFAR Challenge to tackle river flood risks KUALA LUMPUR: The Securities Commission Malaysia (SC) launched the River Flooding Adaptation & Resilience (RIFAR) Challenge to empower youth to contribute ideas and actions that strengthen the resilience of Malaysia’s rivers. This initiative is a collaboration with strategic partners in university engagement, real-world implementation of flood mitigation measures and technical expertise in river resilience and sustainability. The partners are ICAEW Malaysia, Lembaga Urus Air Selangor (LUAS), Landasan Lumayan Sdn Bhd (LLSB) – master developer of Selangor Maritime Gateway (SMG) project and Jeffrey Sachs Center on Sustainable Development (JSC). This nationwide competition invites university students to help address the escalating threat of river flooding through two distinct categories, namely, The Sprint, an awareness track focused on creative communication, to drive public consciousness and community action about Malaysia’s river health. Secondly, The Marathon, an interdisciplinary innovation track where teams develop a flood mitigation intervention for Taman Sri Muda. Solutions combine engineering concepts with capital market financing plans and measurable climate co-benefits, such as renewable energy. RIFAR forms part of the SC’s Transition, Resilience & Adaptation in Capital Markets initiative. It aligns with SC’s broader objectives to strengthen the role of capital markets in mobilising finance for the climate transition, adaptation, and resilience. RIFAR is the SC’s second climate adaptation and resilience challenge, building on the significant success of the inaugural Coastal Flooding Adaptation & Resilience (COFAR) Challenge held in 2025. This initiative involved 220 students from 29 universities to develop adaptation solutions for Carey Island, Selangor. SC chairman Datuk Mohammad Faiz Azmi said that rivers are at the heart of Malaysia’s climate adaptation challenge. “Rivers are the circulatory system of this nation, supplying 80% of the raw water supply and running through our most economically vital corridors. “Following he success of COFAR, we are confident that Malaysia’s university students can contribute to the integrated solutions needed for our river basins,” he said.

operations by 2030 and net zero emissions by 2050, while delivering measurable reductions in both financed and operational emissions. These efforts are supported by a structured and disciplined approach to sustainable and transition financing activities, including the implementation of RHB’s Sustainable and Transition Finance Framework, which enhances governance, transparency and consistency in financing activities. Alongside these efforts, the Group continues to advance financial inclusion across its key markets, having empowered more than 1.5 million individuals and businesses, and remains on track to reach 2.5 million by 2027. The group has also strengthened its human capital and governance practices, including achieving close to 40% women representation in senior leadership, enhancing sustainability capabilities across its workforce, and advancing responsible supply chain standards across its operations. MSCI ESG Ratings are a widely used

“At RHB, sustainability is integrated into how we allocate capital, manage risk and support our customers through transition. “This recognition reinforces our focus on delivering credible and measurable outcomes, supporting our customers and communities through their transition journeys, while creating long-term value for our stakeholders. “Anchored on our PROGRESS27 strategy, we remain committed to advancing sustainable, responsible and inclusive growth across the region.” Beyond financing, this recognition also highlights RHB’s strengthening of climate risk governance and oversight frameworks, operational resilience and responsible business practices. The group has established robust climate risk management frameworks, including board-level oversight, scenario analysis and stress testing to support informed decision-making. In parallel, RHB continues to advance its net zero ambitions, targeting carbon neutral

Mutiara Taman Negara begins UNSDG-aligned waste strategy

Lam says the resort is exploring ways to reduce single-use plastics.

programmes to sustainably boost local incomes, Lam said the natives here prefer flexible working arrangements rather than full-time employment. “Therefore, our engagement with them is indirect. For example, some work as boatmen for Lata Berkoh through the local guide boat association, and others were engaged by subcontractors during recent gabion works to transport goods, providing income opportunities while respecting their lifestyle.“ When asked about reforestation, Lam said such activities are not applicable to hotel guests within the national park. “However, we partner with the local boat association to maintain rivers and pathways after the monsoon season, clearing logs and branches along the route to Lata Berkoh and other rivers to ensure safe access for boats and guests while supporting local livelihoods,” he said.

“We have some solar solutions and energy-efficient systems in public areas and use LED lighting throughout the resort. Over the next two years, we aim to gradually increase the share of renewable energy. “Additional steps under consideration include using inverter air-conditioners to save electricity, monitoring energy use through meter readings, and distributing water from the main tank using gravity to reduce pump energy,” he said. Lam said the resort also works closely with the Wildlife Department to reduce guest impact by providing clear guidelines and briefings for responsible wildlife observation, having staff observe the surroundings during routine patrols for any unusual signs, and encouraging guests to report wildlife sightings without disturbing the animals. When asked about Mutiara Taman Negara’s plans to expand Orang Asli guide

Banking & Finance

Education News/Health & Wellness TUES

ESG

Property

WED

MON

THUR