Sustainability

Our sustainability journey began in 2021 with a focus on ESG (Environmental, Social, and Governance) initiation and streamlining our business focus, financing policies, and guidelines.

Activities and achievement:

• Established a RM3 billion Sustainability Sukuk Programme, which received AAA ratings from MARC, a testament to our commitment to financial excellence and sustainability.
• Our inaugural RM500 million Sustainability Sukuk issuance which was oversubscribed by 3.56 times (bid-to-cover) at a very competitive pricing and witnessed overwhelming international investor participation, highlighting the growing importance of sustainable financing.
• Established the Bank’s Sustainability Sukuk Framework (SSF), aligned with the International Capital Market Association (ICMA) and the ASEAN Capital Markets Forum (ACMF) and Sustainable and Responsible Investment (SRI) Framework issued by Securities Commission.
• Achieved the gold rating for our SSF from an independent external reviewer, Malaysian Rating Corporation Berhad (MARC), the highest rating by MARC.

At SME Bank, we believe the age-old adage that education begins at home, hence, it imperative that the SME Bank family truly embraces the sustainable mindset and lifestyle. In materialising this, various programmes, courses, trainings, and campaigns are conducted to equip our staff with the necessary tools and knowledge in our quest to embrace sustainable practices including:

• Development of in-house ESG/Sustainability bite-sized learning series which provides our employees with a better understanding of ESG principles and sustainability practices.
• Programmes and engagement activities such as monthly quizzes, trainings, webinars, campaigns, and contests related to sustainability.
• Our very own sustainability tagline, "Think Sustainably, Act Responsibly," was borne out of a competition which was organised among employees. This tagline encapsulates our vision of fostering a sustainable mindset throughout the bank. It serves as a constant reminder that every action we take has an impact and that we should make responsible choices that align with sustainable principles.
• Conduct special programmes and activities in celebration of special days i.e International Women's Day, Earth Hour, Global Recycling Day, World Sustainability Day, World Kindness Day etc. These initiatives help raise awareness and encourage our employees to actively participate in promoting sustainability.
• Engage in meaningful Corporate Social Responsibility (CSR) activities that aligns with environmental conservation, one of them being mangrove planting at Balik Pulau Forest Reserve, Penang. This CSR initiatives are not only carried out Bank wide but also encouraged at divisional and even individual levels. Employees can then provide report to fulfil their annual CSR hour requirements. These activities not only support government initiatives but also showcase our commitment to environmental sustainability.

We believe in empowering our staff to become the champions of sustainability within and beyond our organisation. By fostering an ESG culture and engaging in meaningful sustainability initiatives, we are committed to driving positive change and making a difference in our shared journey towards a more sustainable future.

The SME Bank Sustainable Development Goal (SDG) Framework, serves as our guiding framework for sustainability. This comprehensive framework aligns our vision, mission, goals, strategy, and governance with the UN SDGs.

The SME Bank Sustainable Development Goal (SDG) Framework, serves as our guiding framework for sustainability. This comprehensive framework aligns our vision, mission, goals, strategy, and governance with the UN SDGs.

Phase 3 focuses on promoting ESG adoption among MSMEs. We aim to support them in adopting low-carbon business models and sustainability practices.

• Provide guidance reviewing and enhancing client’s business models through our Sustainability Accelerator Program conducted by Centre for Entrepreneur Development and Research (CEDAR), Find out more on cedar.my
• Support social enterprises through our social enterprise development programs. These programs provide capacity building modules and financing facilities to help social enterprises achieve positive impacts and remain sustainable.Find out more on cedar.my

SME Bank also participates in BNM's iTEKAD programme, which supports low-income microentrepreneurs and aligns with the Sustainable Development Goal of eradicating poverty. Our iTEKAD Ishraf and Penjana Komuniti program, in collaboration with CEDAR, empowers microentrepreneurs, single mothers, and Asnaf entrepreneurs. We provide guidance, coaching, and seed capital to improve their businesses.