As per Bank Negara Malaysia’s Climate Risk Management and Scenario Analysis policy document, the Greenhouse Gas Protocol (“GHG Protocol”) separate emissions into 3 scopes:

• Scope 1 Direct emissions from owned or controlled sources
• Scope 2 Indirect emissions from purchased electricity consumed by the reporting entity
• Scope 3 Indirect emissions from assets not owned or activities not controlled by the reporting entity along its value chain (upstream and downstream)

As a financial service group, majority of MBSB’s emissions stem from Scope 3, particularly in the financed emissions category. Recognising the impact of financed emissions which underlies our commitment to achieve net zero by 2050, MBSB have developed a financed emissions measurement methodology aligned with the Partnership for Carbon Accounting Financials (“PCAF”) standards. MBSB have been a proud PCAF signatory since 2022.

In line with the prevailing business strategies, MBSB’s financed emissions monitoring are primarily focused on financing portfolio from the following sectors:

Agriculture

Energy

Industries

Aerospace

Healthcare