GEFI & UNDP release Guide to Help Malaysian Banks Support SMEs on Sustainability

On Wednesday 29th June 2022 United Nations Environment Programme Finance Initiative (UNEP FI), in partnership with Global Ethical Finance Initiative (GEFI), published a Guide for Malaysian Banks supporting SMEs in the Sustainable Recovery from Covid.

The Guide, launched at the inaugural Ethical Finance ASEAN 2022 summit, aims to assist Malaysian banks in helping Small to Medium-sized Enterprises (SMEs) to embed sustainability / ESG practices as business-as-usual and suggests practical steps and examples.

The findings presented in the Guide, as well as the development of a new Framework for banks, are based on the findings of a desk-based review and interviews with 13 Malaysian and international banks that took place earlier this year.

SMEs play a vital role in the Malaysian economy and, as has been the case across the globe, the research found that Malaysian SMEs have been negatively impacted by the COVID-19 (covid) pandemic. As Governments commit to ‘building back better’ the recovery from covid provides an opportunity to align spending and initiatives towards creating a more sustainable future and taking action to combat pressing issues such as climate change.

The Guide found that SMEs in Malaysia are at an early stage of embedding sustainability as, for many, the focus has been on survival during the covid pandemic. While many corporates have made headway on sustainability initiatives, especially around net zero commitments, there is a risk that SMEs are left behind.

Banks are uniquely positioned to support SMEs in taking action on sustainability, both through finance related activities (such as developing sustainability products) and broader activities (such as capacity building). The research found that during the covid pandemic, Malaysian banks primarily supported SMEs through the disbursement of Government funding and ensuring continuity of business through digitalisation. There has been some wider activity to date but, as we recover from the covid pandemic, momentum is building amongst Malaysian banks to further support SMEs on their sustainability journey and further develop areas such as product development, capacity building, offering a one-stop-shop for sustainability initiatives and accelerator programmes.

The Guide provides a Framework for action that Malaysian banks can take in supporting SMEs in the sustainable recovery from the covid pandemic in three key areas:

  • Bank Wide Approach;
  • Supporting SMEs; and
  • Product Development.

The Framework - which is intended to supplement existing sustainability tools, frameworks and initiatives rather than replace them - identifies 19 key suggestions for bank wide approach, supporting SMEs and provides a step-by-step guide for product development. Each of these areas is supported by several practical steps augmented with of work already being undertaken by Malaysian and international banks.

Banks can play a significant role in supporting SMEs on their sustainability journey and the Guide highlights the appetite amongst Malaysian banks to further assist SMEs in progressing their sustainability journey. Further support could be through assisting SMEs in measuring greenhouse gas (GHG) emissions, educating internal staff, capacity building for SMEs, further development of sustainability products and a greater consideration of the social and governance aspects of sustainability.

The Guide concludes that responsibility for assisting SMEs on sustainability should not lie with banks alone and support is also required from Government and other industry players to incentivise action.

Click Here to visit the UNEP FI page to access the Guide.


Agenda Announced: Ethical Finance ASEAN 2022

The Global Ethical Finance Initiative (GEFI) and the Asian Institute of Chartered Bankers are delighted to announce the launch of the agenda for our inaugural Ethical Finance ASEAN 2022 summit.

Taking place virtually on Wednesday 29 June 2022, the summit begins at 10am MYT (GMT+8), with a full replay taking place later at 10am BST (GMT+1). The summit starts with an overview of sustainable finance in the ASEAN region, before exploring the topic further in sessions centred around three core thematics: climate, nature and social. The summit then explores practical pathways to action with a session on the SDGs and concludes with an interview between prominent corporate and financial sustainability leaders. Click here to view the agenda.

Speakers include:

  • Komi Rajdev, Head of Business Development ASEAN, Moody’s ESG Solutions
  • Suraya Sani, Senior Supervisor, Financial Conglomerates Supervision Department, Bank Negara Malaysia
  • Shahril Azuar Bin Jimin, Chief Sustainability Officer, MayBank
  • Raja Amir Shah Raja Azwa, CEO, HSBC Amanah
  • Yuki Yasui, Regional Director, GFANZ APAC Network
  • Rafe Haneef, CEO, Group Transaction Banking and Group Chief Sustainability Office
  • Rizal Il-Ehzan Bin Fadil Azim, CEO, Alliance Islamic Bank Berhad

Sign up now at https://www.eventbrite.co.uk/e/ethical-finance-asean-2022-tickets-299068761717?aff=agenda


EVENT ANNOUNCED | Ethical Finance ASEAN 2022

Following the success of our South East Asia regional showcase at Ethical Finance Global 2021, the Global Ethical Finance Initiative (GEFI) is delighted to co-host the inaugural Ethical Finance ASEAN 2022 with the Asian Institute of Chartered Bankers (AICB).

This virtual event, to be held on Wednesday 29 June 2022, will present a unique opportunity to hear from experts on sustainable and responsible finance in the ASEAN region and beyond. The summit is themed “ESG in a Volatile World – Profit, Purpose or Politics?”

As well as looking at macroeconomic issues impacting global markets, we will have specific sessions on topics including:

  • How the megatrends of 2022 are affecting ASEAN economies
  • Financing nature and biodiversity in ASEAN: sustainable palm oil and deforestion
  • The role of the SDGs as a coordinating framework, and progress on financing the 2030 goals
  • Core priorities on the S in ESG for ASEAN economies
  • Perspectives from local and international finance leaders

For more information, click here.