Public Bank to mobilise RM40bil in ESG financing by 2025, says its chief

By Sharen Kaur - Published in NST Property on August 26, 2022 

NSTP/File Photo

sharen@nst.com.my

Public Bank Bhd will mobilise RM40 billion in ESG (environmental, social, and governance) friendly financing by 2025, including increasing customer access to green building financing, says its managing director and chief executive officer (CEO), Tan Sri Dr. Tay Ah Lek.

This was in addition to a goal to achieve net zero emissions by 2050 and carbon neutrality by 2030, he said.

He said this in a statement released by Eco World Development Group Bhd (EcoWorld) following the signing of a memorandum of understanding (MOU) today to offer consumers buying EcoWorld houses a special sustainable financing package.

EcoWorld is giving green and sustainable development financing for properties developed by the company which has received green certifications from the Green Building Index, GreenRE, and other accreditation agencies.

According to Tay, the agreement is significant since it establishes a partnership between EcoWorld and the banking group to improve the environment.

"It also presents a good opportunity for Public Bank and EcoWorld to jointly promote the green building agenda and be part of the global climate solution for a sustainable planet," he said in the statement.

Tay said the property industry makes up a sizeable portion of the country's gross domestic product, but studies have shown that it also accounts for roughly 40 per cent of the world's carbon emissions, making it a key player in attempts to slow down global warming.

"This MOU signing is a step in the right direction as EcoWorld is addressing the sector's climate impact through the conceptualisation, design, and construction of many sustainable projects in the country, including in Klang Valley, Johor, and Penang," he said.

Since the beginning of 2016, Public Bank has provided funding for two projects by EcoWorld namely Eco Grandeur and Eco Business Park V (EBP V).

Eco Grandeur is EcoWorld's largest township and is located in the Klang Valley's developing Puncak Alam growth corridor, while Eco Business Park V is one of a series of green industrial parks being developed by the firm in the same corridor.

The two projects' combined land area is close to 2,300 acres.