SUSTAINING LEADERSHIP IN GREEN FINANCING BIMB has continued to strengthen its position as a leader in sustainable financing. At the end of 2021, Green Financing accounted for RM2.2 billion, or 4%, of our total financing portfolio. This puts us well ahead of the Malaysian banking industry’s average of 1% to 2%. As we move forward under our LEAP25 strategy, we aim to double the Green Financing book to RM4 billion by 2025. Achieving this target will require us to broaden the range of financing areas beyond the Renewable Energy Green Building sector that we have focused on, towards the wider green economy, which finances not just renewable energy but sustainable agriculture, low-carbon power generation and low-emission manufacturing, electric and hybrid vehicles, sustainable public transportation and the necessary infrastructure. We also aim to expand Shariah-ESG financing to between 12% and 15% of our total financing, thus offering complete Islamic solutions across the Malaysian economy. We have also cemented our leading position in the fast-growing area of green sukuk. The potential for ESG-rated sukuk goes well beyond the market for green sukuk, with the emergence of new products such as blue sukuk and transition sukuk. As companies and governments, increasingly, embrace the sustainability agenda, demand for transition sukuk that help fund their shift to a decarbonised economic model is expected to grow. With the ASEAN region continuing to dominate global issuance of ESG sukuk, the Group sees strong potential for further growth in this area. DRIVING INNOVATION IN SHARIAH-ESG INVESTING In line with both our commitment to ESG principles and our goal of growing our wealth management business, we have continued to launch new funds that offer new asset classes and investment strategies to attract new investors into our SESG funds. In March 2021, for example, we launched Malaysia’s first Waqf Featured Unit Trust, helping bring essential services to marginalised sections of society. We are also leveraging on digitalisation and our strategic partnership with Arabesque Asset Management to vastly expand the investible universe for our SEGS funds, which will provide a much wider range of options to investors with a strong ESG appetite. 123 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information INTEGRATED ANNUAL REPORT 202 1
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