RHB Banking Group (“RHB” or “the Group”) has been upgraded from AA to AAA in the MSCI ESG Rating, the highest rating available, placing the bank among the leading global financial institutions for managing environmental, social and governance (ESG) risks and opportunities.
The upgrade reflects growing confidence among global investors in RHB’s ability to deliver sustainable growth through its progress in sustainable finance, reducing financed emissions in key sectors, and strengthening governance and risk management practices.
As of FY2025, RHB has cumulatively mobilised around RM60 billion in sustainable financial services and is targeting RM90 billion by 2027. The Group has also achieved a 13.2% reduction in financed emissions across five priority high-emission sectors compared with its 2022 baseline, as well as a 49% reduction in operational greenhouse gas emissions against its 2016 baseline.
RHB Group Managing Director and Group CEO Dato’ Mohd Rashid Mohamad said the upgrade reflects the Group’s progress in embedding sustainability into its operations.
He said sustainability is integrated into how the bank allocates capital, manages risk and supports customers through transition journeys, while creating long-term value for stakeholders.
Beyond financing, the recognition also highlights RHB’s stronger climate risk governance, operational resilience and responsible business practices. The Group has established climate risk management frameworks that include board-level oversight, scenario analysis and stress testing to support decision-making.
RHB continues to advance its net-zero goals, targeting carbon neutral operations by 2030 and net zero emissions by 2050, while continuing to lower both financed and operational emissions.
These efforts are supported by the Group’s Sustainable and Transition Finance Framework, which aims to improve governance, transparency and consistency in financing activities.
RHB also continues to promote financial inclusion across its key markets, having supported more than 1.5 million individuals and businesses, with a target of 2.5 million by 2027.
The Group has also strengthened its workforce and governance practices, including achieving close to 40% women representation in senior leadership, enhancing sustainability skills among employees, and improving responsible supply chain standards.
MSCI ESG Ratings are widely used by global investors and assess more than 17,000 issuers worldwide. The ratings measure how companies manage financially relevant ESG risks and opportunities relative to industry peers, with AAA representing the highest level of ESG leadership.
RHB’s sustainability credentials are also supported by its continued inclusion in the FTSE4Good Bursa Malaysia Index, recognition by S&P Global’s Corporate Sustainability Assessment, and its position among Malaysia’s leading ESG performers.
Under its PROGRESS27 strategy, RHB said it will continue expanding sustainable and transition finance, strengthening ESG risk integration, and delivering solutions that support inclusive and low-carbon growth across the region.
