RHB Banking Group has launched its Sustainable & Transition Finance Framework (STFF), positioning it as one of the most comprehensive frameworks in Malaysia to support businesses at every stage of their sustainability transformation.
Developed in alignment with global best practices, including the International Capital Market Association (ICMA) principles and the ASEAN Taxonomy for Sustainable Finance, the framework has been independently validated by Sustainalytics through a Second-Party Opinion (SPO). The validation underscores the robustness of the framework’s eligibility criteria and RHB’s commitment to transparent and credible transition financing.
RHB Banking Group Managing Director and Group Chief Executive Officer Dato’ Mohd Rashid Mohamad said the STFF serves as a strategic roadmap to accelerate the shift towards a low-carbon economy, particularly for hard-to-abate sectors.
“By providing clear criteria for sustainable financing and investment, we are bridging the gap for hard-to-abate sectors, ensuring they have the necessary resources to transition,” he said, adding that the framework would help mitigate long-term climate risks while enabling clients to innovate in an inclusive and economically viable manner.
Malaysia’s sustainability ambitions are outlined in the National Energy Transition Roadmap (NETR) and the 13th Malaysia Plan (13MP), which together present between RM1.2 trillion and RM1.3 trillion in investment opportunities to support decarbonisation and the country’s net-zero aspirations. However, companies in high-emission and resource-intensive sectors often face challenges navigating fragmented financing options.
RHB said the STFF addresses this gap by offering a clear, consistent and accessible framework to help corporates, government-linked companies (GLCs) and small and medium enterprises (SMEs) mobilise capital for eligible sustainable and transition activities.
“Sustainability is a long-term commitment, and many businesses are navigating transition while managing real operational demands,” Dato’ Mohd Rashid said. “Through the STFF, we want to make the sustainability pathway more achievable for our customers and be a purposeful partner in supporting them towards Net Zero.”
The launch event featured a panel discussion themed “Decarbonisation: Are We Doing Enough to Achieve Net Zero?”, with representatives from RHB, Solarvest and the Malaysia Forest Fund (MFF). The event also saw the signing of a memorandum of understanding between RHB and MFF to advance nature-based and transition solutions.
The framework supports RHB’s sustainability agenda under its PROGRESS27 strategy, which includes a target to mobilise RM90 billion in Sustainable Financial Services (SFS) by 2027. As at December 2025, the Group had mobilised more than RM59 billion in cumulative SFS, representing nearly 66 per cent of its 2027 target.
“When our customers progress, our communities progress. And when our communities progress, our nation progresses,” Dato’ Mohd Rashid said. “The most sustainable decision is not waiting for certainty. It is choosing to begin.”