Bank Islam Malaysia Berhad has announced that it has surpassed its initial target of RM4 billion in green financing, achieving RM4.8 billion, well ahead of its 2025 goal and has set an ambitious target to grow its sustainable finance portfolio to RM28 billion by the end of 2025.
A key element of Bank Islam’s sustainability strategy is the Ihsan Sustainability Investment Account (ISIA), launched in 2023. ISIA represents a transformative approach to investing in a diversified portfolio of non-retail assets that contribute to the
United Nations (UN) Sustainable Development Goals (SDGs) and align with Bank Negara Malaysia’s (BNM) Climate Change and Principle-Based Taxonomy (CCPT).
Through ISIA, the Bank is unlocking investment opportunities in critical sectors such as renewable energy, clean transportation, green financing, clean water and sanitation, and sustainable cities. This initiative connects investors to high-impact green assets, fosters a nature-positive economy, and ensures inclusivity across the ecosystem.
Another focus of Bank Islam’s green finance efforts is its support for Malaysia’s transition to clean energy. The Bank plays a central role in facilitating renewable energy projects such as solar and hydropower, directly contributing to the National Energy Transition Roadmap (NETR), which aims for net-zero emissions by 2050. Bank Islam’s active involvement in financing renewable energy, alongside vital sectors like manufacturing and plantations, demonstrates its commitment to ensuring Malaysia’s sustainable growth while adhering to global regulatory standards and industry best practices.
In addition to environmental sustainability, Bank Islam’s green finance initiatives are a powerful driver of inclusive economic growth. The Bank fosters job creation, supporting micro, small, and medium-sized enterprises (MSMEs), agribusinesses, and
underserved communities. These efforts drive rural development, enhance livelihoods, and promote Malaysia’s more equitable and resilient economy.
At the core of Bank Islam’s approach is its robust risk-assessment process, which ensures that every financing decision is aligned with Shariah-Environmental, Social, and Governance (ESG) principles. The Bank thoroughly evaluates customer profiles, management practices, and sustainability certifications before approving financing. This rigorous process guarantees that the Bank’s investments mitigate environmental and social risks and contribute to long-term, responsible growth.
“Our commitment to green finance goes beyond mere regulatory compliance—it’s about creating positive change that will shape Malaysia’s economy for generations,” said Dato’ Mohd Muazzam Mohamed, Group CEO of Bank Islam. “By focusing on sustainable financing solutions, we are not just supporting industries essential to Malaysia’s future, such as renewable energy and manufacturing, but also ensuring that we protect the environment for future generations.”
Further reinforcing its commitment to sustainability, Bank Islam recently became the first bank in Malaysia to certify 86 Certified Green Finance Advisors (CGFAs) through a comprehensive training program.
