SIMILAR to digital transformation, many companies are very keen to include sustainable practices in their operations, but may have been discouraged with the lack of know-hows and potential high costs.
After all, there is growing demand for businesses to drive sustainability as a strategic priority in protecting environmental and human health, while encouraging greater innovation in businesses.
This has prompted Hong Leong Bank (HLB) to engage industry stakeholders and companies that have started its sustainability transformation to share the benefits and challenges in sustainability practices through its inaugural virtual Sustainability Roundtable.
As rightly pointed out by HLB managing director (business & corporate banking) Yow Kuan Tuck, businesses are facing increasing pressures to respond to various sustainability threats and risks.
The shift towards sustainability is important to find new opportunities to protect their business’ future.
“At HLB, sustainability is a priority and we want to empower our clients to adopt and assimilate ESG (environment, social and governance) considerations as part and parcel of their business strategies and operations, help them innovate and turn sustainability risks into opportunities,” he pointed out.
“We recognise sustainability is a big change. As such, we will help our clients in this transformation – from the right financing from the bank, to knowledge of best practices from relevant authorities and leading companies in their industries.”
As sustainability is indeed a new experience for many businesses, HLB has adopted an inclusive approach through close working relationship as both a financial and business partner, which includes risk assessment and mitigation plans.
Subsequently, HLB hopes that businesses could see holistic opportunities in sustainability transformation which can contribute to long-term competitive advantages as well as the betterment of society and environment.
“Throughout the rest of the year, we will be organising more roundtable sessions together with relevant stakeholders from industries in manufacturing of rubber, chemicals, metals, forestry, agriculture, palm oil, and mining or quarrying,” noted Yow.
HLB has strengthened its own sustainability practices by launching its business & corporate banking ESG framework last September.
The framework serves as a foundation to help the bank incorporate ESG considerations in credit evaluation of its SME (small medium enterprises) and corporate customers, underlining efforts towards building a vibrant and sustainable ecosystem for businesses, communities and the environment.
The roundtable follows the framework’s plans to promote the adoption of sustainable business strategies and practices amongst customers.
Moreover, the bank has also started supporting green sectors, evident by its RM1 bil approval in financing for renewable energy and energy efficiency-related projects and investments since January 2019.
This includes an allocation for SMEs looking to venture into renewable energy with solar, biogas and small hydropower.
HLB kicked off its Sustainability Roundtable with “Plastics Manufacturing: Industry Outlook and Preparing for a Sustainable Future” featuring presentations from the Malaysian Plastic Manufacturer Association president Datuk Lim Kok Boon, Thong Guan Industries Bhd executive director Alvin Ang and WWF-Malaysia SEA Regional Coordinator Jazlyn Lee. – Feb 26, 2021
