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Maybank’s 2019 Sustainability Report says: “Under the ESG Policy, we have committed to not finance activities that could have a significant adverse impact on the environment and surrounding communities.”
Then why is Maybank still funding climate-wrecking coal projects and companies?
Maybank, it’s time to stop funding coal.
Fast Facts about Maybank's Support for Coal
Malaysia’s three big banks, Maybank, CIMB, and RHB, lent US $4.9 billion through bonds and loans to coal during 2010-2019.
Maybank is responsible for US $1.8 billion coal financing, despite the enormous risks coal causes the planet and our climate. In 2014, Maybank was involved in a syndication loan to Adaro Energy, one of Indonesia’s biggest coal producers.
By funding more coal plants, Maybank is making the climate crisis worse.
Maybank is funding Adaro’s dirty business
Adaro Energy is a coal mining company in Indonesia with a dirty reputation. Its coal business generated approximately 92% of Adaro Energy’s revenues in 2019.
In 2017, Adaro Energy stated that it would diversify its business away from coal in the long term. However, this hasn’t been happening. 92% of Adaro Energy’s revenue is still from coal mining, 6% is from mining services. It’s also involved in Adaro Power, which is involved in the controversial Batang coal power plant in Indonesia.
Adaro’s dodgy operations have also been in the news lately. Adaro Energy’s mine in the Tabalong area is one of the biggest mines in South Kalimantan. Walhi, the Indonesian environmental organisation, stated that the largest watershed area with the most flood points is in Balangan and Tabalong area, with 9 of the flood points in Tabalong is near Adaro’s mine area. The flood has caused economic losses that reached approximately US$ 94.22 billion
In 2015, Maybank developed a Responsible Lending Guideline to manage environmental, social and governance (ESG) risk. If Maybank is serious with its commitment, Maybank will decline to participate in Adaro Energy’s debt refinancing.
Photo Credit: Putra / Greenpeace
Maybank is fueling climate disasters and floods.
In January 2021, South Kalimantan floods, which killed at least 21 people and forced more than 110,000 others to flee their home, has been linked with massive mining activities near the watershed area made these floods worse.
Among these mining activities are the 31,380-hectare mining area controlled by Adaro Energy - one of the energy companies that receive financing from Maybank.
Maybank is failing its ESG commitments.
In 2020, Maybank signed a loan agreement to fund the Jawa 9 and 10 coal plant in Indonesia despite concerns about climate. Yet to meet the Paris Agreement’s goals, global greenhouse gas emissions must fall by more than 7.6% per year over the next decade. Coal is the most significant contributor to global warming.
Maybank is bankrolling the contentious Jawa 9 and 10 coal plant.
Reports have highlighted the horrendous air pollution and associated respiratory and skin diseases affecting the local population. In 2019, 49,000 residents suffered acute respiratory infections in the area. If built, Jawa 9 and 10 would cause the premature deaths of 4,700 people over the course of its lifetime.
Photo Credit: Market Forces / Melvinas Priananda
Maybank is ignoring climate risk flagged by Malaysia’s Central Bank.
The head of Malaysia’s central bank Bank Negara Malaysia, Governor Nor Shamsiah, said climate change “threatens our socio-economic prosperity here in Southeast Asia. It poses risks to the fiscal position of governments, the viability of businesses and the living standards of individuals.”
Extreme Weather Events affecting Malaysians
Global warming makes cyclones, floods, and other extreme weather events worse. Malaysians have experienced this — from the 2014 floods in Kelantan and Terengganu which displaced 200,000 people, followed by massive floods in Penang and Kedah in 2017, and droughts in 2016.
Over 100 Financial Institutions Getting Out of Coal
Dozens of banks in recent years have restricted coal plant funding. This includes DBS Bank, UOB and OCBC in Singapore, Mizuho Financial Group and Japan Bank for International Cooperation (JBIC) in Japan, HSBC UK and many more.
Recently, CIMB announced its new policy to no longer fund coal power projects and thermal coal mines. Maybank is being left behind.
is supported by The Hotter Earth Coalition.
The Hotter Earth coalition is a group of organisations pushing for an equitable transition to clean energy.
Learn more about the Hotter Earth campaign at HotterEarth.com