With the escalating urgency surrounding climate change, Malaysia’s largest bank, Malayan Banking Berhad (Maybank), has significantly broadened its commitment to achieving net zero emissions. By incorporating the automotive and commercial real estate sectors into its decarbonization roadmap, Maybank is making a powerful statement and underlining its ambition to lead in the field of sustainable finance. The bank’s latest update, released in February 2025, builds on its previous efforts primarily focused on the power and palm oil sectors and later expanded to include steel and aluminum in November 2024. This decisive expansion highlights Maybank’s active alignment with the Net Zero Banking Alliance (NZBA) objectives and its support for clientele to transition towards more environmentally responsible practices.
Comprehensive Approach to Decarbonization
Khairussaleh Ramli, President and Group CEO of Maybank, emphasized the pivotal importance of tackling emissions in the automotive and commercial real estate sectors to achieve net zero emissions. He acknowledged that reducing emissions in these sectors poses a complex challenge yet remains indispensable on the journey toward sustainability. With the updated white paper now encompassing six high-emission industries, Maybank demonstrates unwavering dedication to substantial climate action. The bank is determined to drive significant emission reductions and foster impactful interventions within these crucial industries to realize their net zero goals.
Specifically, the updated roadmap sets ambitious targets for both sectors. The automotive portfolio had a baseline financed emissions intensity of 138 grams of CO2 per vehicle-kilometer (gCO2/vkm) as of December 2023. This figure is 15% below the International Energy Agency’s (IEA) net zero emissions pathway for passenger cars, showcasing notable progress. Maybank’s commitment to lowering emissions is reinforced by the fact that its clients’ passenger cars generally feature newer, more efficient engines compared to global averages. This advancement underscores the bank’s proactive stance and its clients’ shared vision of reduced emissions.
Targeted Goals for Automotive Sector
Maybank stands as the first commercial bank outside Europe to set specific targets for reducing emissions in retail automotive financing. The bank’s goal of reaching 94 gCO2/vkm by 2030 requires diligent efforts, considerable collaboration, and firm commitment from all stakeholders involved. Critical enablers for this target include supportive government policies and shifts in consumer preferences toward electric vehicles (EVs). By promoting EV adoption, Maybank aspires to make substantial strides in mitigating automotive sector emissions.
The bank’s push for EVs aligns with global trends reflecting a gradual but significant transition from internal combustion engines to electric-powered vehicles. This forward-moving approach entails securing essential partnerships with automakers, government bodies, and environmental agencies to foster an ecosystem conducive to the widespread use of EVs. Introducing incentives for consumers to switch to electric vehicles will be pivotal, reinforcing the economic and environmental benefits of reduced emissions. By actively supporting such policies, Maybank aims to catalyze a broader, systemic shift in the automotive landscape.
Real Estate Emission Reductions
For the commercial real estate sector, Maybank’s roadmap set its baseline financed emissions intensity at 80.5 kgCO2e/m2 in December 2023. This figure closely aligns with the benchmark of 81 kgCO2e/m2 established by regionalized hybrid net zero pathways and the IEA’s announced pledges scenario. The sector’s transition plan aims for a significant reduction to 56 kgCO2e/m2 by 2030. Achieving this goal requires multifaceted approaches, including policy incentives for energy-efficient buildings and comprehensive decarbonization strategies by power generation companies.
Khairussaleh highlighted Maybank’s commitment to collaborating closely with various stakeholders to address the challenges within the commercial real estate sector. The bank plans to work in tandem with real estate clients to promote the construction of green buildings and adopt energy-efficient technologies. Maybank’s approach includes leveraging emerging technologies such as smart building systems and renewable energy solutions, which not only reduce carbon footprints but also lower operational costs for property owners.
Fostering environmental responsibility within the real estate sector also involves stringent adherence to best practices for sustainability and energy conservation. Maybank intends to spearhead efforts to cultivate awareness and action among its clientele, encouraging property developers and owners to integrate sustainability into the core of their operations. Effective collaboration and continuous dialogue with government entities will be critical to ensuring supportive regulatory frameworks and incentives that drive the sector toward the 2030 emissions target.
Collaborative Efforts and Future Aspirations
Khairussaleh Ramli, President and Group CEO of Maybank, stressed the vital necessity of addressing emissions in the automotive and commercial real estate sectors to reach net zero emissions. He recognized that cutting emissions in these areas is a multifaceted challenge, but it’s crucial for sustainability. With its revised white paper now covering six high-emission industries, Maybank shows strong commitment to substantial climate action. The bank aims to drive significant emission cuts and impactful measures in these essential sectors to achieve their net zero objectives.
The updated roadmap sets ambitious goals for both sectors. As of December 2023, the automotive sector financed emissions intensity was 138 grams of CO2 per vehicle-kilometer (gCO2/vkm), 15% lower than the International Energy Agency’s (IEA) net zero emissions pathway for passenger cars, indicating significant progress. Maybank’s commitment to reducing emissions is evident, given that its clients’ passenger cars tend to have newer and more efficient engines than the global average. This progress highlights the bank’s proactive approach and its clients’ shared commitment to lowering emissions.
