Malaysia’s Maybank will no longer finance new coal activities: report

The bank was criticized by NGOs in Malaysia and Indonesia for funding coal plants.

Malaysia’s Malayan Banking Bhd (Maybank) will no longer finance new coal activities as part of a five-year strategy that will also see the bank committing $12b (50 billion ringgit) in sustainable financing, reports Reuters.

“There’s no new coal financing going forward for Maybank,” Group President and Chief Executive Abdul Farid Alias told reporters after its annual shareholders meeting.

Maybank’s announcement comes after criticisms from a coalition of non-governmental organisations (NGOs) in Malaysia and Indonesia for funding coal plants despite making environmental, social and governance (ESG) commitments.

The bank, Malaysia’s largest lender by assets, will work with existing borrowers to diversify and achieve a sustainable renewable energy mix over the medium- to long-term, Abdul Farid said.

The firm also committed to achieving net zero carbon emissions by 2050.

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