SUSTAINABILITY
REPORT
OVERVIEW | ||
About Public Bank Group's Sustainability Report 2023 | 154 | |
Sustainability Framework | 155 | |
Key Sustainability Milestones | 156 | |
2023 Highlights | 157 | |
APPROACH TO SUSTAINABILITY | ||
Progress towards Sustainability Commitments | 160 | |
Sustainability Governance | 163 | |
Stakeholder Engagement | 164 | |
Materiality Assessment | 169 | |
DELIVERING SUSTAINABLE IMPACT | ||
Theme 1: Protecting the Environment | 170 | |
Theme 2: Proficient Employees | 184 | |
Theme 3: Prosperous Customers and Communities | 195 | |
Theme 4: Principled Conduct | 213 | |
DISCLOSURES ALIGNED WITH TCFD | ||
Governance | 225 | |
Strategy | 227 | |
Managing the Resultant Risks Manifesting from Climate Change | 231 | |
Metrics and Targets | 238 | |
APPENDICES | ||
Performance Data | 239 | |
Bursa Malaysia ESG Reporting Platform Performance Data Table | 257 | |
GRI Content Index | 261 | |
Limited Assurance Report | 273 | |
SUSTAINABILITY REPORT
OVERVIEW
ABOUT
PUBLIC BANK GROUP'S
SUSTAINABILITY REPORT 2023
The Public Bank Group's Sustainability Report ("the Report") communicates the Group's approach to embracing and embedding sustainability into its strategic directions and operations. This Report highlights the Group's sustainability performance across all three dimensions, namely Environmental, Social and Governance ("ESG"), as well as initiatives in response to the matters that are most material to the Group and its key stakeholders.
This Sustainability Report covers the reporting period from 1 January 2023 to 31 December 2023, unless stated otherwise. The reporting scope covers information pertaining to the Public Bank Group's main business operations and activities across entities in Asia, including:
- Public Bank Berhad ("Public Bank") - Banking;
- Public Islamic Bank Berhad ("Public Islamic Bank") - Islamic Banking;
- Public Investment Bank Berhad ("Public Investment Bank") - Investment Banking;
- Public Mutual Berhad ("Public Mutual") - Sale and Management of Unit Trust Funds and Private Retirement Schemes;
- Public Financial Holdings Limited (Hong Kong) ("PFHL") - Banking and Finance;
- Cambodian Public Bank Plc ("Campu Bank") - Banking; and
- Public Bank Vietnam Limited ("Public Bank Vietnam") - Banking.
This Report is approved by the Board of Directors of Public Bank, and is prepared in line with:
Bursa Malaysia's Main | Securities Commissions' | Global Reporting Initiative | Task Force on | |||||
Market Listing | Malaysian Code on | ("GRI") Standard | Climate-Related Financial | |||||
Requirements and | Corporate Governance | Disclosures ("TCFD") | ||||||
Sustainability Reporting | recommendations | |||||||
Guide (3rd Edition) | ||||||||
STATEMENT OF ASSURANCE
In strengthening the credibility of this Sustainability Report, selected sustainability indicators in the Report has been subjected to an independent assurance by KPMG PLT ("KPMG") in accordance with International Standard on Assurance Engagements ("ISAE") 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information and has been approved by the Board of Directors of Public Bank. The Subject Matter, Scope and Conclusion can be found in KPMG's Limited Assurance Report set out on page 273.
POINT OF CONTACT
Should there be any comments, submit your feedback and enquiries to: sustainability@publicbank.com.my.
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Public Bank Berhad | 2023 Integrated Annual Report
SUSTAINABILITY FRAMEWORK
The Public Bank Group's Sustainability Framework comprises four strategic themes - Protecting the Environment, Proficient Employees, Prosperous Customers and Communities, and Principled Conduct - which guide the Group's approach towards creating positive impact through 17 material matters. Through a strategic review of the framework during the year, the Group set a forward-looking strategy and roadmap with tangible targets to better align with the Group's business direction. The Sustainability Framework focuses on contributing towards 12 of the United Nations Sustainable Development Goals ("UN SDGs").
Corporate Mission
To sustain the position of being the most efficient, profitable and respected premier financial institution in Malaysia
Sustainability Purpose | ||||||
Embracing Sustainability | ||||||
Sustainability Themes and Material Matters | ||||||
Protecting | Proficient | Prosperous Customers | Principled | |||
the Environment | Employees | and Communities | Conduct | |||
Climate Change Resilience | Diversity and Inclusion | Responsible Lending | Data Privacy and | |||
Practices | Cybersecurity | |||||
Carbon Emissions | Employee Engagement and | Financial Inclusion and | Governance and Business | |||
Development | ||||||
Resource Management | Accessibility | Ethics | ||||
Sustainable Finance | Human and Labour Rights | Customer Satisfaction | Transparency and Trust | |||
Sustainable Supply Chain | Community Empowerment | Risk Management | ||||
Digital Transformation |
Sustainability Strategies
Environmental | Social | Governance |
• Contributing towards a low | • Customer centric technology | • Upholding risk and compliance |
carbon economy | • Financial Inclusion | management |
- Empowering employee and commitments
Aligned UN SDGs
b Sustainai il ty o Rep rt
Bank For The People
155
SUSTAINABILITY REPORT
OVERVIEW
KEY SUSTAINABILITY
MILESTONES
Pre-2020 | 2020 | 2021 | 2022 | 2023 |
Admitted as a constituent of FTSE4Good Bursa Malaysia Index (since 2015)
Established the
Sustainability
Management
Committee
Published the first Sustainability Statement (since 2016)
Completed Menara Public Bank 2 in 2017, the Group's first green certified building
Established the ESG Exclusion List
Public Islamic Bank launched preferential rates for financing of energy efficient vehicles and solar panels
Developed the
Public Bank Group
Anti-Bribery and
Anti-Corruption
Policy
Committed to achieving Carbon Neutral by 2030 (Scope 1 and Scope 2) and Net Zero Carbon by 2050
Set up the Sustainability Management Task Force
Developed the Public Bank Group Climate-Related Risk Management Policy, and Policy on Risk Acceptance Criteria on Environmental, Social and Governance ("ESG RAC Policy")
Established Sectoral RAC for Palm Oil sector
Formed the Board
Sustainability
Management
Committee
Established Sectoral RAC for Construction and Infrastructure sector
Committed to No Deforestation, No New Peat and No Exploitation ("NDPE")
Developed the
Diversity, Equality
and Inclusion Policy
Established the
Sustainability
Framework
Developed the
Public Bank Group
Climate-Related
Strategy Policy
Developed General RAC for Non SMEs and Sectoral RAC for Real Estate sector
Developed the
Sustainable Finance
Framework, and
Sustainable
Products and
Services Guideline
Established the
Public Bank Group
ESG Statement
Signed up as Partnership for Carbon Accounting Financials signatory
Inaugural Scope 3 financed emissions disclosures
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Public Bank Berhad | 2023 Integrated Annual Report
2023 HIGHLIGHTS
b Sustainai il ty o Rep rt
Theme 1:
Protecting the Environment
Theme 2:
Proficient
Employees
Theme 3:
Prosperous
Customers and
Communities
Theme 4:
Principled Conduct
2,684 tCO2e | |
reduction | Mobilised |
achieved for | RM53.91 |
Scope 1, Scope | billion |
2 and Scope 3 | of sustainable |
carbon | finance |
emissions | since 2020 |
Over | Achieved more |
RM52 million | than |
spent on | one million |
total training | |
training and | |
hours | |
development | |
Approved and | |
Over | accepted more |
than RM7 billion | |
RM1.2 million | |
of affordable | |
spent on the | |
homes | |
community | |
financing | |
since 2020 | |
RM2.35 billion | Zero incidents of |
of income tax paid | corruption |
in 2023 | |
Developed
Climate-Related
Strategy
Policy
48.8% female representation in senior management
Net Promoter
Score
improved to
+61
100% of
Malaysian banking entities conducted
corruption- related risk assessment
Developed
Sustainable
Finance
Framework, and
Sustainable
Products and
Services Guideline
Zero incidents of
human rights
violation
Improved over
one million individuals' lives since 2021
Over 32,000
enrolments in
cyber
awareness
education
initiatives for
employees
Awards and Recognitions
Constituent in FTSE4Good | ||
Bursa Malaysia Index (since | "AA rating" | Gold Award |
2015), FTSE4Good ASEAN5 | ||
Index, FTSE4Good Emerging | since 2015 | since 2019 |
Index and FTSE4Good | ||
All World index |
AA
Bank For The People
157
Ensuring
Sustainable Tomorrow
for All
At Public Bank, our commitment to sustainability is unwavering. We actively champion projects that benefit our customers and have a positive impact on the environment and society. We take pride in supporting initiatives that reduce carbon footprint, promote clean energy, and encourage responsible business practices, reflecting our belief in a more eco-friendly and sustainable future.
SUSTAINABILITY REPORT
APPROACH TO SUSTAINABILITY
PROGRESS TOWARDS
SUSTAINABILITY COMMITMENTS
The Public Bank Group has set sustainability commitments to drive progress in its sustainability journey. This includes achieving Net Zero Carbon by 2050 and mobilising RM100 billion of sustainable finance by 2030. The sustainability commitments are underpinned by four overarching targets for each of the strategic sustainability themes.
Protecting | Sub-targets | Progress in 2023 | |||
the Environment | |||||
Overarching Target: | • Achieve Carbon Neutral position | • Scope 1 and Scope 2: | |||
(Scope 1 and Scope 2) by 2030 | - 2023 Total carbon emissions: 64,063 tCO2e | ||||
Net Zero Carbon by 2050 | |||||
- 2023 Emission intensity: 3.2 tCO2e/full-time | |||||
Material Matters: | employee ("FTE") | ||||
• Scope 1, Scope 2 and Scope 3: | |||||
- 2023 Total carbon emissions: 87,223 tCO2e | |||||
Climate Change Resilience | - 2023 Emission intensity: 4.4 tCO2e/FTE | ||||
Carbon Emissions | • Achieve a minimum of 25% of | • Menara Public Bank 2 is certified Leadership | |||
Resource Management | building gross floor area ("GFA") | in Energy and Environmental Design ("LEED") | |||
operating under green building | Gold, equivalent to 24% of Malaysia's main | ||||
Sustainable Finance | criteria by 2030 | buildings GFA | |||
• Achieve a minimum 30% reduction | • Reduced 2% of total energy consumption | ||||
Sustainable Supply Chain | |||||
in energy consumed from baseline | from 2022 | ||||
by 2030 | • Inaugural purchase of green electricity | ||||
UN SDGs Supported: | totalling 650MWh | ||||
• Achieve a minimum 30% reduction | • Total water consumption: 479,193 m3 | ||||
in water consumption from baseline | • Water intensity: 24.2 m3/FTE | ||||
by 2030 | |||||
• Mobilise RM100 billion of | • Mobilised RM53.91 billion of sustainable | ||||
sustainable finance by 2030 | finance since 2020, which includes key | ||||
financing portfolio such as: | |||||
* The sustainable finance target was | - RM38.36 billion of energy efficienct vehicle | ||||
revised from RM48 billion by 2025 | financing | ||||
- RM7.56 billion of affordable homes | |||||
financing | |||||
- RM5.22 billion of corporate loans | |||||
- RM1.98 billion under Green Financing | |||||
Facilities | |||||
• Set portfolio emissions reduction | • Formalised commitment as PCAF signatory | ||||
targets aligned with the Paris | • Established Scope 3 financed emissions | ||||
Agreement and 1.5°C global | inventory for five asset classes | ||||
warming trajectory |
- 100% of suppliers and vendors to acknowledge the Public Bank Group Vendor Code of Conduct by 2025
- Enhanced the Public Bank Group Vendor Code of Conduct and to be communicated to all suppliers and vendors in 2024
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Public Bank Berhad | 2023 Integrated Annual Report
Proficient Employees
Overarching Target:
Develop and invest in talent
to build a future ready
workforce
Material Matters:
Diversity and Inclusion
Employee Engagement
and Development
Human and Labour Rights
b Sustainai il ty o Rep rt
Sub-targets | Progress in 2023 |
• Maintain a minimum of 45.0% | • Achieved 48.8% female representation at |
female representation at Senior | Senior Management level |
Management level | |
• Achieve a minimum of two hours | • On average, employees have completed 1.7 |
ESG related training per year for all | hours of ESG related training |
employees from 2024 | |
• Establish a Sustainability Centre of | • Key resources and subject matter experts |
Excellence ("COE") to support | are being identified to establish the COE |
internal and client transition by | |
2024 |
UN SDGs Supported:
Prosperous Customers | Sub-targets | Progress in 2023 |
and Communities | ||
Overarching Target: | • Improve lives of 1.5 million | • Over one million individuals' lives improved |
Improve financial accessibility | individuals through inclusive finance | since 2021 |
and well-being of society | by 2025 starting from 2021 | |
Material Matters: | • Achieve a minimum of 50,000 | • More than RM1.2 million spent on the |
volunteer hours by 2025 and | community | |
Responsible Lending | ||
RM10 million spent on communities | • Developing employee volunteer strategy and | |
Practices | ||
by 2030 | approach | |
Financial Inclusion and | ||
Accessibility | ||
Customer Satisfaction |
Community Empowerment
Digital Transformation
UN SDGs Supported:
Bank For The People
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Public Bank Bhd published this content on 17 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 April 2024 10:03:28 UTC.