{"id":34886,"date":"2025-09-29T13:27:55","date_gmt":"2025-09-29T06:27:55","guid":{"rendered":"https:\/\/thaipropertynews.com\/feeds\/?p=34886"},"modified":"2025-09-29T13:27:55","modified_gmt":"2025-09-29T06:27:55","slug":"asean-banks-make-progress-on-climate-action-but-gaps-remain-are-report-reveals","status":"publish","type":"post","link":"https:\/\/thaipropertynews.com\/feeds\/?p=34886","title":{"rendered":"ASEAN Banks Make Progress on Climate Action but Gaps Remain, ARE Report Reveals"},"content":{"rendered":"<table border=\"0\" cellspacing=\"10\" cellpadding=\"5\" align=\"right\">\n<tbody>\n<tr>\n<td><img decoding=\"async\" src=\"https:\/\/mma.prnasia.com\/media2\/2782907\/ARE_Logo.jpg?p=medium600\" border=\"0\" alt=\"\" title=\"logo\" hspace=\"0\" vspace=\"0\" width=\"118\" \/><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span class=\"legendSpanClass\"><span class=\"xn-location\">SINGAPORE<\/span><\/span>, <span class=\"legendSpanClass\"><span class=\"xn-chron\">Sept. 29, 2025<\/span><\/span> \/PRNewswire\/ &#8212;\u00a0<a href=\"https:\/\/asiareengage.com\/\" target=\"_blank\" rel=\"nofollow\">Asia Research &amp; Engagement (ARE)<\/a> today launched <a href=\"https:\/\/asiareengage.com\/bridging-the-gap-have-asean-banks-caught-up-on-climate-action\/\" target=\"_blank\" rel=\"nofollow\"><i><span>Bridging the Gap: Have ASEAN Banks Caught Up on Climate Action?<\/span><\/i><\/a>, a report assessing the climate strategies of major banks in <span class=\"xn-location\">Indonesia<\/span>, <span class=\"xn-location\">Malaysia<\/span>, <span class=\"xn-location\">Thailand<\/span>, and <span class=\"xn-location\">the Philippines<\/span>. The study finds that ASEAN banks are making measurable progress, with 11 of 14 setting long-term net-zero goals for financed emissions\u2014up from three in 2022\u2014but still trail banks in <span class=\"xn-location\">Japan<\/span>, <span class=\"xn-location\">Singapore<\/span>, and <span class=\"xn-location\">South Korea<\/span>, where decarbonisation targets are broader, deeper, and aligned with national net-zero goals for 2050.<\/p>\n<div class=\"PRN_ImbeddedAssetReference\">\n<\/div>\n<p><b>The Region&#8217;s Biggest Banks in Focus<\/b><br \/>The report covers 14 banks across four ASEAN markets:<\/p>\n<ul type=\"disc\">\n<li><b><span class=\"xn-location\">Indonesia<\/span>:<\/b> Bank <span class=\"xn-location\">Central Asia<\/span>, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Mandiri.<\/li>\n<li><b><span class=\"xn-location\">Malaysia<\/span>:<\/b> CIMB, Maybank, <span class=\"xn-person\">Hong Leong<\/span><\/li>\n<li><b><span class=\"xn-location\">Philippines<\/span>:<\/b> BDO, Bank of the Philippine Islands, Metrobank<\/li>\n<li><b><span class=\"xn-location\">Thailand<\/span>:<\/b> Bangkok Bank, KBank, Krungthai, Siam Commercial<\/li>\n<\/ul>\n<p><b>Policy Progress: Malaysia Leads, <span class=\"xn-location\">Thailand<\/span> and Indonesia Catching Up<\/b><br \/>Average policy performance rose to 38% in 2025 from 20% in 2022. More than half of banks have committed to stop new coal financing, and five have timelines to phase out existing coal exposures. Six lenders have policies addressing high-carbon industries, though only five have net-zero targets aligned to 2050.<\/p>\n<p><span class=\"xn-location\">Thailand&#8217;s<\/span> KBank is the only bank that has a disclosed policy on restricting gas-fired power financing.\u00a0Overall, Malaysian banks CIMB and Maybank lead the rankings, while <span class=\"xn-location\">Indonesia&#8217;s<\/span> BRI and <span class=\"xn-location\">Thailand&#8217;s<\/span> Siam Commercial Bank have shown strong improvement.<\/p>\n<p><b>Governance Strengthening: <span class=\"xn-location\">Thailand<\/span> and Malaysia Lead, Indonesia Shows Rapid Improvement<br \/><\/b>Governance practices improved significantly, with average performance rising to 54% from 39% in 2022. All banks disclose board sustainability responsibilities, and more than half have climate expertise at board level. <span class=\"xn-location\">Thailand&#8217;s<\/span>\u00a0KBank and Malaysian banks CIMB and Maybank are top performers, while <span class=\"xn-location\">Indonesia&#8217;s<\/span> BCA and HLB show the most improvement.<\/p>\n<p><b>Risk Management: <span class=\"xn-location\">Indonesia<\/span> and Malaysia Lead, Thailand Strengthens<\/b><br \/>For the first time, eight banks disclosed financed emissions in 2025, up from none in 2022, while 10 banks now report portfolio exposure to high-carbon sectors (up from four). <span class=\"xn-location\">Indonesia&#8217;s<\/span> BRI and Mandiri stand out as the most improved performers, with <span class=\"xn-location\">Thailand&#8217;s<\/span> KBank also showing notable progress. The adoption of client-level transition risk plans and PCAF methodologies reflects growing maturity across the region, though only three banks have yet integrated physical risk scenario analysis effectively.<\/p>\n<p><span><b>Opportunity: Green or Sustainable finance up an order of magnitude from a low base<\/b><br \/>Banks have found significant growth in green and sustainable finance opportunities. In 2025, nine banks disclosed targets, up from only five in 2022. For those banks with targets in both years, the level of financing is an order of magnitude higher, albeit from a low base.<\/span><\/p>\n<p>Commenting on the findings,\u00a0<b>Ben McCarron, Founder and Managing Director of ARE<\/b>, said, &#8220;ASEAN banks are making significant progress\u2014from stronger governance and net-zero commitments to new restrictions on coal financing\u2014but there&#8217;s more to do. Through our benchmarking series \u2013 from <i>Shifting Gears<\/i> (2024) and <i>Banking <span class=\"xn-location\">Asia&#8217;s<\/span> Future<\/i> (2022) \u2013 ARE acknowledges the institutions leading change, while pressing the region&#8217;s banks collectively to accelerate the transition to a low-carbon ASEAN.&#8221;<\/p>\n<p class=\"prntac\">-Ends-<\/p>\n<p><b>Note to editors:<\/b><\/p>\n<p><b>Selection Criteria and Methodology for ASEAN Banks Assessment<\/b><\/p>\n<p>The report covers 14 banks across four developing Asian economies:<\/p>\n<ul type=\"disc\">\n<li><b><span class=\"xn-location\">Thailand<\/span>:<\/b> 4 banks<\/li>\n<li><b><span class=\"xn-location\">Indonesia<\/span>:<\/b> 4 banks<\/li>\n<li><b><span class=\"xn-location\">Philippines<\/span>:<\/b> 3 banks<\/li>\n<li><b><span class=\"xn-location\">Malaysia<\/span>:<\/b> 3 banks<\/li>\n<li><b>Combined Assets &amp; Loans:<\/b>\u00a0USD1.6 trillion in total assets; <span class=\"xn-money\">USD1 trillion<\/span> in total loans.<\/li>\n<li>For each market, 3\u20134 of the largest banks were selected by market capitalisation.<\/li>\n<li>12 banks overlap with 2022&#8217;s <i>Banking <span class=\"xn-location\">Asia&#8217;s<\/span> Future<\/i> report.<\/li>\n<\/ul>\n<p>Visit\u00a0<a href=\"https:\/\/asiareengage.com\/report\/\" target=\"_blank\" rel=\"nofollow\">ARE<\/a>\u00a0to download our full series of reports on banking and climate action in <span class=\"xn-location\">Asia<\/span>.<\/p>\n<p><b>About Asia Research &amp; Engagement (ARE)<\/b>\u00a0<\/p>\n<p><span>ARE brings leading investors into dialogue with Asian-listed companies to address sustainable development challenges and help companies align with investor priorities. With decades of <span class=\"xn-location\">Asia<\/span> experience, our cross-cultural team understands the region&#8217;s unique needs. Our high-quality independent research, robust investor network, and engagement expertise, provide corporate leaders and financial decision makers with insights leading to concrete action.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p><!-- wp:html --><\/p>\n<table border=\"0\" cellspacing=\"10\" cellpadding=\"5\" align=\"right\">\n<tbody>\n<tr>\n<td><img decoding=\"async\" src=\"https:\/\/mma.prnasia.com\/media2\/2782907\/ARE_Logo.jpg?p=medium600\" border=\"0\" alt=\"\" title=\"logo\" hspace=\"0\" vspace=\"0\" width=\"118\" \/><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span class=\"legendSpanClass\"><span class=\"xn-location\">SINGAPORE<\/span><\/span>, <span class=\"legendSpanClass\"><span class=\"xn-chron\">Sept. 29, 2025<\/span><\/span> \/PRNewswire\/ &#8212;\u00a0<a href=\"https:\/\/asiareengage.com\/\" target=\"_blank\" rel=\"nofollow\">Asia Research &amp; Engagement (ARE)<\/a> today launched <a href=\"https:\/\/asiareengage.com\/bridging-the-gap-have-asean-banks-caught-up-on-climate-action\/\" target=\"_blank\" rel=\"nofollow\"><i><span>Bridging the Gap: Have ASEAN Banks Caught Up on Climate Action?<\/span><\/i><\/a>, a report assessing the climate strategies of major banks in <span class=\"xn-location\">Indonesia<\/span>, <span class=\"xn-location\">Malaysia<\/span>, <span class=\"xn-location\">Thailand<\/span>, and <span class=\"xn-location\">the Philippines<\/span>. The study finds that ASEAN banks are making measurable progress, with 11 of 14 setting long-term net-zero goals for financed emissions\u2014up from three in 2022\u2014but still trail banks in <span class=\"xn-location\">Japan<\/span>, <span class=\"xn-location\">Singapore<\/span>, and <span class=\"xn-location\">South Korea<\/span>, where decarbonisation targets are broader, deeper, and aligned with national net-zero goals for 2050.<\/p>\n<div class=\"PRN_ImbeddedAssetReference\">\n<\/div>\n<p><b>The Region&#8217;s Biggest Banks in Focus<\/b><br \/>The report covers 14 banks across four ASEAN markets:<\/p>\n<ul type=\"disc\">\n<li><b><span class=\"xn-location\">Indonesia<\/span>:<\/b> Bank <span class=\"xn-location\">Central Asia<\/span>, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Mandiri.<\/li>\n<li><b><span class=\"xn-location\">Malaysia<\/span>:<\/b> CIMB, Maybank, <span class=\"xn-person\">Hong Leong<\/span><\/li>\n<li><b><span class=\"xn-location\">Philippines<\/span>:<\/b> BDO, Bank of the Philippine Islands, Metrobank<\/li>\n<li><b><span class=\"xn-location\">Thailand<\/span>:<\/b> Bangkok Bank, KBank, Krungthai, Siam Commercial<\/li>\n<\/ul>\n<p><b>Policy Progress: Malaysia Leads, <span class=\"xn-location\">Thailand<\/span> and Indonesia Catching Up<\/b><br \/>Average policy performance rose to 38% in 2025 from 20% in 2022. More than half of banks have committed to stop new coal financing, and five have timelines to phase out existing coal exposures. Six lenders have policies addressing high-carbon industries, though only five have net-zero targets aligned to 2050.<\/p>\n<p><span class=\"xn-location\">Thailand&#8217;s<\/span> KBank is the only bank that has a disclosed policy on restricting gas-fired power financing.\u00a0Overall, Malaysian banks CIMB and Maybank lead the rankings, while <span class=\"xn-location\">Indonesia&#8217;s<\/span> BRI and <span class=\"xn-location\">Thailand&#8217;s<\/span> Siam Commercial Bank have shown strong improvement.<\/p>\n<p><b>Governance Strengthening: <span class=\"xn-location\">Thailand<\/span> and Malaysia Lead, Indonesia Shows Rapid Improvement<br \/><\/b>Governance practices improved significantly, with average performance rising to 54% from 39% in 2022. All banks disclose board sustainability responsibilities, and more than half have climate expertise at board level. <span class=\"xn-location\">Thailand&#8217;s<\/span>\u00a0KBank and Malaysian banks CIMB and Maybank are top performers, while <span class=\"xn-location\">Indonesia&#8217;s<\/span> BCA and HLB show the most improvement.<\/p>\n<p><b>Risk Management: <span class=\"xn-location\">Indonesia<\/span> and Malaysia Lead, Thailand Strengthens<\/b><br \/>For the first time, eight banks disclosed financed emissions in 2025, up from none in 2022, while 10 banks now report portfolio exposure to high-carbon sectors (up from four). <span class=\"xn-location\">Indonesia&#8217;s<\/span> BRI and Mandiri stand out as the most improved performers, with <span class=\"xn-location\">Thailand&#8217;s<\/span> KBank also showing notable progress. The adoption of client-level transition risk plans and PCAF methodologies reflects growing maturity across the region, though only three banks have yet integrated physical risk scenario analysis effectively.<\/p>\n<p><span><b>Opportunity: Green or Sustainable finance up an order of magnitude from a low base<\/b><br \/>Banks have found significant growth in green and sustainable finance opportunities. In 2025, nine banks disclosed targets, up from only five in 2022. For those banks with targets in both years, the level of financing is an order of magnitude higher, albeit from a low base.<\/span><\/p>\n<p>Commenting on the findings,\u00a0<b>Ben McCarron, Founder and Managing Director of ARE<\/b>, said, &#8220;ASEAN banks are making significant progress\u2014from stronger governance and net-zero commitments to new restrictions on coal financing\u2014but there&#8217;s more to do. Through our benchmarking series \u2013 from <i>Shifting Gears<\/i> (2024) and <i>Banking <span class=\"xn-location\">Asia&#8217;s<\/span> Future<\/i> (2022) \u2013 ARE acknowledges the institutions leading change, while pressing the region&#8217;s banks collectively to accelerate the transition to a low-carbon ASEAN.&#8221;<\/p>\n<p class=\"prntac\">-Ends-<\/p>\n<p><b>Note to editors:<\/b><\/p>\n<p><b>Selection Criteria and Methodology for ASEAN Banks Assessment<\/b><\/p>\n<p>The report covers 14 banks across four developing Asian economies:<\/p>\n<ul type=\"disc\">\n<li><b><span class=\"xn-location\">Thailand<\/span>:<\/b> 4 banks<\/li>\n<li><b><span class=\"xn-location\">Indonesia<\/span>:<\/b> 4 banks<\/li>\n<li><b><span class=\"xn-location\">Philippines<\/span>:<\/b> 3 banks<\/li>\n<li><b><span class=\"xn-location\">Malaysia<\/span>:<\/b> 3 banks<\/li>\n<li><b>Combined Assets &amp; Loans:<\/b>\u00a0USD1.6 trillion in total assets; <span class=\"xn-money\">USD1 trillion<\/span> in total loans.<\/li>\n<li>For each market, 3\u20134 of the largest banks were selected by market capitalisation.<\/li>\n<li>12 banks overlap with 2022&#8217;s <i>Banking <span class=\"xn-location\">Asia&#8217;s<\/span> Future<\/i> report.<\/li>\n<\/ul>\n<p>Visit\u00a0<a href=\"https:\/\/asiareengage.com\/report\/\" target=\"_blank\" rel=\"nofollow\">ARE<\/a>\u00a0to download our full series of reports on banking and climate action in <span class=\"xn-location\">Asia<\/span>.<\/p>\n<p><b>About Asia Research &amp; Engagement (ARE)<\/b>\u00a0<\/p>\n<p><span>ARE brings leading investors into dialogue with Asian-listed companies to address sustainable development challenges and help companies align with investor priorities. With decades of <span class=\"xn-location\">Asia<\/span> experience, our cross-cultural team understands the region&#8217;s unique needs. Our high-quality independent research, robust investor network, and engagement expertise, provide corporate leaders and financial decision makers with insights leading to concrete action.<\/span><\/p>\n<p><!-- \/wp:html --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[5,7],"tags":[],"class_list":["post-34886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cision-pr-newswire","category-cision-pr-newswire-en"],"_links":{"self":[{"href":"https:\/\/thaipropertynews.com\/feeds\/index.php?rest_route=\/wp\/v2\/posts\/34886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thaipropertynews.com\/feeds\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thaipropertynews.com\/feeds\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thaipropertynews.com\/feeds\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thaipropertynews.com\/feeds\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34886"}],"version-history":[{"count":0,"href":"https:\/\/thaipropertynews.com\/feeds\/index.php?rest_route=\/wp\/v2\/posts\/34886\/revisions"}],"wp:attachment":[{"href":"https:\/\/thaipropertynews.com\/feeds\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thaipropertynews.com\/feeds\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thaipropertynews.com\/feeds\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}