Page 38 - Exim iar24_Ebook

EXIM BANK MALAYSIA
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SUSTAINABILITY
JOURNEY

In 2024, EXIM Bank recorded further progress in reducing greenhouse gas (GHG) emissions, aligned with our long-term
commitment to environmental sustainability. Using 2019 as the baseline year, Scope 1 emissions—comprising direct
emissions from sources owned or controlled by the Bank—declined significantly from 56.30 tCO�e in 2019 to 12.62 tCO�e
in 2024, representing a 77.6% reduction. This notable improvement was driven by enhanced fleet management, reduced
reliance on diesel generators, and the adoption of more sustainable operational practices.
Similarly, Scope 2 emissions—indirect emissions associated with the consumption of purchased electricity—fell from
1,759.00 tCO�e in 2019 to 1,655.18 tCO�e in 2024, marking a 5.9% decrease. This reduction reflects the positive outcomes
of the Bank’s continued efforts to improve energy efficiency across its facilities.
The year 2024 marks a key milestone in tracking EXIM Bank’s decarbonisation journey, as the Bank prepares to accelerate
its emission reduction targets. In 2025, the Bank aims to achieve a further 20% reduction in Scope 1 and Scope 2 emissions
relative to the 2019 baseline. Additionally, EXIM Bank will begin establishing Scope 3 emissions tracking to broaden the
scope of its climate accountability. These initiatives are integral to the Bank’s overarching objective of achieving carbon
neutrality by 2030 and contributing meaningfully to a low-carbon future.
f. Climate Risk Management
Climate-related risks are integrated into the Bank’s risk management framework in accordance with the Policy Document
on Climate Risk Management and Scenario Analysis. Key initiatives include:
a. Climate risk appetite – a climate-risk appetite for financing portfolio classified C5 (a) and C3 is established and
approved by the BOD.
b Credit risk integration – climate risk factors are embedded in credit assessments of the credit applications prior to
approval by the relevant approving authority, particularly for CCPT classification and its mitigation actions.
c Scenario Analysis and Climate Risk Stress Testing (CRST) – the Bank is progressively implementing climate scenario
analysis and CRST to assess portfolio vulnerabilities under different climate pathways.

5. Sustainable Impact

Sustainability is a responsibility of all employees of EXIM Bank. As part of the commitment, we have implemented governance
framework to integrate sustainability into our operations. Guided by clear policies and guidelines, this framework ensures that
ESG considerations are embedded in our business practices, thus supporting the creation of a greener and more responsible
financial ecosystem.
a. Sustainable Financing: Driving Environmental Impact for Exports

In September 2024, during the EXIM Sustainability Forum, the Bank launched an initiative designed to support and
accelerate environmental sustainability by Malaysian entrepreneurs in the export sector. This initiative will mobilise up to
RM1.5 billion by 2027 in sustainable financing to foster environmental stewardship by funding impactful green projects.
The initiative includes various support measures, such as advisory services for carbon footprint management and
incentives for green financing applications. Additionally, the third focus area of this sustainable financing is supporting
the greening of oil palm exports, which is one of the country’s major exports through the application of biochar.