OCBC Bank (Malaysia) Berhad (OCBC Bank) has inked an agreement with Malaysian Green Technology and Climate Change Corporation (MGTC) to incorporate its online carbon management platform Low Carbon Operating System (LCOS) into its transition financing plan for corporate and SME customers.
With the signing of the agreement, OCBC Bank becomes the first financial institution in the country to formulate specific plans to help businesses decarbonise their greenhouse gas (GHG) emissions using MGTC’s LCOS. The platform will guide them to improve efficiency, reduce wastage in their business activities and ultimately achieve long-term cost savings.
LCOS helps businesses measure their carbon footprint, so emissions are well managed. Using a report that LCOS generates, companies can take impactful action to mitigate the amount of carbon their operations produce.
Speaking at the signing ceremony, OCBC Bank CEO Mr Tan Chor Sen said that as a financial institution with over 90 years’ experience working with the communities around it, OCBC Bank looks forward to working with corporates and SMEs in the collective national quest to achieve net zero GHG emissions as early as 2050.
“We are pleased to be collectively working towards regional sustainability. The OCBC Group has set a sustainable financing target of S$50 billion by 2025. Today’s event marks yet another milestone in the journey to get there,” he said.
Agreement inked to incorporate MGTC’s Low Carbon Operating System (LCOS) into OCBC Malaysia’s transition financing plan for corporate and SME customers. (L-R): En Azaidi Lazim (Managing Director, Envision Digital Malaysia); Mr Jeffrey Teoh Nee Teik (Managing Director, Head of Corporate & Commercial Banking, OCBC Bank (Malaysia) Berhad); Ts Shamsul Bahar Mohd Nor (CEO, MGTC); Tan Chor Sen (CEO, OCBC Bank (Malaysia) Berhad); Mr Lee Shyong (Group Head, Public Sector, Sovereign Wealth & Pension Funds, Services and Partnership & Innovation, Global Corporate Banking, OCBC Ltd); Mr Selwyn Lim (Head, Enterprise Banking, OCBC Bank (Malaysia) Berhad)
OCBC Bank’s Managing Director and Head of Corporate & Commercial Banking Mr Jeffrey Teoh added that that the initiative is part of the Bank’s commitment to leading the sustainability transition journey in the region.
“We are progressively aligning our financing and investing activities with global sustainability standards and partnering with our customers to strengthen their businesses against climate risks. So, our tie up with MGTC is timely and aligned to our strategic thrust of building greater awareness of climate change among our customers and how it impacts their business. We also seek to positively influence their behaviour by engaging them to further adopt appropriate sustainable practices to meet the more stringent industry expectations for ESG over time and ultimately achieve the Green Code of practice,” he said.
CEO of MGTC, Ts Shamsul Bahar Bin Mohd Nor, emphasised that ESG developments are driven by the growth in the global supply chain, which also sees SMEs abiding by the procurement obligations set out by multinational companies.
“As the first step in crafting a meaningful ESG journey, these companies can use LCOS to understand and measure the environmental footprint and set realistic sustainability targets. The financial sector holds enormous power in funding and accelerating the global transition to a low-carbon economy. They can offer services or direct capital flows to projects with meaningful social and environmental impacts, motivating others to improve their sustainability performance. We hope this collaboration will help OCBC Bank’s customers achieve their financial goals and aspirations to contribute to a more sustainable world,” he said.