Malaysia’s largest bank Malayan Banking Berhad (Maybank) has deepened its commitment to net zero with expanded white paper by addressing automotive and commercial real estate sectors.
The bank said in a statement on Monday that it has released an updated version of its net zero white paper.
The latest version, unveiled in February 2025, expands the bank’s decarbonization roadmap to include the two additional key sectors, outlining its science-based interim targets and decarbonization strategies.
The update builds on the white paper’s initial focus on the power and palm oil sectors, as well as its November 2024 expansion into steel and aluminium, further solidifying Maybank’s leadership in aligning its operations with the Net Zero Banking Alliance (NZBA) goals and supporting its clients in their transition journey.
Khairussaleh Ramli, President and Group Chief Executive Officer of Maybank, said that the expansion of decarbonization strategies in automotive and commercial real estate, remains the most challenging yet crucial aspects of the bank’s net zero journey.
“The white paper now addresses six hard-to-abate sectors, providing a holistic approach to decarbonization,
“This expansion reinforces our long-term commitment to reducing emissions in critical industries, driving meaningful climate actions across high-emitting sectors, vital for achieving our net zero goals,” he added.
It is noted that in December 2023, Maybank sets its baseline financed emissions intensity for the automotive portfolio at 138 gCO2/vkm, which is 15 percent below the International Energy Agency’s net zero emissions passenger cars pathway of 162 gCO2/vkm.
This demonstrates the significant strides the bank and its clients have taken toward reducing emissions.
This is also attributed by the fact that passenger cars in Maybank’s portfolio are, on average, newer and equipped with more efficient engines compared to the global average.
“As the first commercial bank outside Europe to set a retail automotive decarbonization target, we are leading the charge in reducing emissions from passenger vehicle financing and promoting the adoption of electric vehicles (EVs),
“Aligning with the IEA NZE passenger cars pathway’s glidepath requires reducing emissions to 94 gCO2/vkm by 2030 – a target that underscores the need for significant effort, collaboration and commitment,” said Khairussaleh.
According to him, achieving this ambitious goal will rely on key enablers, such as supportive policies and shifts in consumer preferences.
“Policymakers and automotive industry leaders must continue to work hand-in-hand to scale solutions and accelerate the transition to low-carbon mobility,
“Equally important is the growing consumer enthusiasm and preference for EVs, which will be instrumental in driving this transition,” he added.
As for the commercial real estate portfolio, Maybank’s baseline financed emissions intensity as of December 2023 was 80.5 kgCO2e/m2.
This aligns with the December 2023 benchmark of 81 kgCO2e/m2 set by the sector’s reference pathway – regionalized hybrid net zero aligned Carbon Risk Real Estate Monitor and International Energy Agency’s announced pledges scenario.
“A reduction of emission intensity to 56kgCO2/m2 by 2030 as recommended by the reference pathway is feasible, influenced by supportive policies promoting energy-efficient buildings, decarbonization strategies of power generation companies within our footprint, alongside the commitment of our real estate clients are pivotal in driving progress toward our decarbonization goals in this sector,
“We remain dedicated to collaborating with diverse stakeholders to tackle challenges and accelerate the transition in this space.” said Khairussaleh.
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