Maybank to drive ASEAN’s decarbonisation journey via enhanced ESG research capabilities

27 July 2023

7-min read

Group to invest RM1.6 million over two years to drive ESG ideation and provide actionable insights to support clients’ energy transition


Under Maybank’s M25+ strategy, with Sustainability as a strategic pillar, the Maybank Group launched its Enhanced Environment, Social and Governance (ESG) Research at the Invest Malaysia KL, Special Series | Launch of the National Energy Transition Roadmap, Part 1: Flagship Catalyst Projects and Initiatives event today in Kuala Lumpur.


The Maybank Enhanced ESG Research aims to provide actionable ESG insights for ideating energy transition and decarbonisation solutions for clients across the Group and support the ambitions of the government’s National Energy Transition Roadmap (NETR) and Low Carbon Aspirations 2050.


As a pioneer of ESG research for equities, Maybank has been recognised by the industry for its depth of analysis of companies and renewable energy progress in ASEAN. It is one of the first banks in the region to establish an ESG research team, publish dedicated ESG research, and establish its own proprietary ESG rating and scoring. As of 30 June 2023, 100% of all the companies under its research coverage have ESG tearsheet analysis of E, S and G issues, and 60% have been rated and scored for ESG according to Maybank’s methodology.


Maybank will continue to build upon this first mover advantage to expand and optimise its regional ESG research thematic and stock coverage. Under the Enhanced ESG Research initiative, ESG analysis will be elevated and integrated into financial analysis to evaluate the impact of material ESG factors on a company’s risks and opportunities including its revenue, costs and enterprise value. It will also include “Impact Analysis” on the adequacy of sustainability targets, alignment with industry standards, and game-changing actions.


In achieving the goals of this new research initiative, Maybank is committing RM1.6 mil over two years, for professional certification and upskilling, to elevate the capabilities of its analysts for ESG research.


Maybank to drive ASEAN’s decarbonisation journey via enhanced ESG research capabilities

Dato' Khairussaleh Ramli, Group President & CEO Maybank and Dr Hasnita bt Dato' Hashim, Chairman of Maybank Investment Bank (centre), launches the Maybank Enhanced ESG Research at Invest Malaysia, Special Series event in Kuala Lumpur. Witnessed by YB Tuan Nik Nazmi Bin Nik Ahmad, Minister of Natural Resources, Environment and Climate Change of Malaysia, Tan Sri Dato’ Sri Zamzamzairani, Chairman of Maybank, Dato' Muzaffar Hisham, Group CEO, Global Banking Maybank, Michael Oh-Lau, CEO, Maybank Investment Banking Group and Dato Fad'l Mohamed, CEO, Maybank Investment Bank.


Dato’ Khairussaleh Ramli, Maybank Group President & CEO said, “The NETR will expedite demand for clean energy sources and financing for new infrastructure, technologies, and decarbonising energy-intensive industries. Given our extensive on-the-ground research, we are strategically placed to become the go-to partner in our clients’ net zero transition journey. Our aspiration is to become a key player in the carbon ecosystem and contribute to a sustainable future for Malaysia and ASEAN.”


He added, “With more granular analysis under our Enhanced ESG Research, investors will be better equipped to evaluate the adequacy of ESG initiatives of companies and the transition opportunities and risks. This should raise confidence in investing in ASEAN, which we consider to be a safe harbour in uncertain times.”


Michael Oh-Lau, CEO of Maybank Investment Banking Group said, “Our long-term view is that sustainability is ASEAN’s next alpha opportunity. As the level of ESG scrutiny intensifies, it will create more opportunities for our equities and sustainability research teams to add value. Our investment in delivering ESG insights has already bore fruit with higher rankings given by institutional clients. We are committed to becoming best-in-class and staying ahead of the learning curve.”


In conjunction with the launch of the NETR, Maybank released a thematic report on mobility transition - “ASEAN Mobility: Poised For EV Acceleration” - a reference guide for policymakers, investors and businesses to lay the foundation for rapid adoption of EVs.


According to Bloomberg, the potential for growth of EVs is immense with EV (Electric Vehicle) sales as a percentage of total vehicle sales only at 2.1% in ASEAN vis-à-vis 29% in China, 21% in Europe, and the global average of 14%, as at end 2022. Maybank also notes in its mobility transition report that the transition is irreversible because EVs are 4-4.5 times more energy efficient and have 17-20% less lifecycle emissions. In terms of economic gains for Malaysia, as an established auto manufacturing hub, the transition could shift its Internal Combustion Engine (ICE) manufacturing towards EV parts ecosystem.


Maybank’s Enhanced ESG Research is a marquee thought leadership initiative to drive the transition towards net zero across ASEAN, and supports the Group’s broader sustainability goals. Already on track in meeting them, as at end of 1Q 2023, Maybank has cumulatively mobilised sustainable finance of RM38.8 billion, out of its target of RM80 billion by 2025; cumulatively improved the lives of 969,091 people across ASEAN (target 2 million by 2025); and reduced 41% of its Scope 1 and 2 emissions against its 2019 baseline.


Of the total sustainable finance mobilised by the Group, it includes RM480 million for EV financing year to date, a 54% increase from RM310 million in 2022. The surge in demand is due to Maybank’s launch of the first integrated automobile financing for EV and hybrid cars in March 2023 that offers holistic solutions of financing, insurance, takaful coverage and EV charging privileges.


On 21 July 2023, Maybank announced that Tesla buyers opting for this integrated automobile financing would enjoy among others, preferential rates and flexible repayment options, with up to 90% margin of financing.


Maybank’s insurance and takaful unit, Etiqa also launched Tesla Ensure to provide additional coverage such as reimbursements of up to RM12,000 to replace or repair EV home chargers, and Special Relief Allowance due to loss and theft.