The Star: Banks Need To Do More In Net-Zero Efforts

Oliver Wyman partners Anirudh Singh and Timothy Colyer spoke to The Star about the ASEAN and Malaysia banking sector’s decarbonization efforts.

Head of Malaysia Anirudh Singh that the sector should go beyond the “broad” 2050 net-zero commitment and develop details around interim and ultimate decarbonization targets, and how they plan to achieve them. This should be prioritized for higher emission sectors like oil and gas, power, palm oil, steel, and auto.

“Instead of just a few leading banks, such commitments and decarbonization targets should be developed by all the banks and financial institutions. Disciplined action by the broader Malaysian economy to take action on their decarbonization commitments will be critical,” Anirudh said.

In terms of the domestic banking sector’s decarbonization efforts compared with its peers in ASEAN, Oliver Wyman Asia Pacific climate and sustainability lead Timothy Colyer said Malaysian banks have been amongst the first in the region to make commitments to net-zero.

Colyer said there was a first mover advantage available for banks as the industry is transitioning. However, he noted that at present, there was a shortage of bankable transition assets. Banks that can build their capabilities to advise and finance the transition would be banking on the winners and stand themselves to be the winners in the industrial transformation of the next decades, he noted.

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