Kuala lumpur: RHB Banking Group launched its Sustainable and Transition Finance Framework (STFF) to support customers at every stage of their sustainability transformation.

According to BERNAMA News Agency, the bank said the STFF is aligned with global best practices, including the International Capital Market Association (ICMA) principles and the ASEAN Taxonomy for Sustainable Finance, and validated by an independent Second-Party Opinion (SPO), Sustainalytics.

RHB Banking Group managing director and group chief executive officer Datuk Mohd Rashid Mohamad stated that the framework serves as a strategic roadmap to accelerate the shift towards a low carbon economy. By providing clear criteria for sustainable financing and investment, the bank aims to bridge the gap for hard-to-abate sectors, ensuring they have the necessary resources to transition. This framework is designed to help mitigate long-term climate risks while empowering clients to innovate, ensuring that the transition to a sustainable future is both inclusive and economically viable.

RHB highlighted that many companies, particularly those in high emission, hard-to-abate, and resource-intensive sectors, find the transition pathway towards a low carbon economy and net zero complex due to fragmented financing options. Therefore, the STFF helps address this by offering a clear, consistent, and accessible framework for corporates, government-linked companies (GLCs), and small and medium enterprises (SMEs) to mobilise capital for eligible sustainable and transition activities.

Mohd Rashid emphasized that the framework makes the sustainability pathway more achievable for its customers. He reiterated that RHB's role extends beyond providing sustainable and transition financing, positioning the bank as a purposeful partner in supporting clients towards net-zero carbon emissions.