To Examine the Maturity of the Sustainability Framework in the Malaysian Banking Industry, a Case Study

Abstract

Since emergence of COVID 19 Pandemic and post the Global Financial Crisis 2007-2008 coupled with the recent decade trending recession in the world, the 21st century calls for a higher action to protect the environment. The fragile earth plagued by prolonged pollution, over development and of global warming require corporations to play a more crucial role in sustainability. Corporations and banks have since practiced CSR in the early days now move to ESG activities driven by investment requirements and pressures from various stakeholders. CSR and ESG reporting are supported through many sustainability frameworks. In the US, UK and EU both corporations and banks are ahead with the adoption of these sustainability practices and have positive results evidenced in financial performance and firm's market value over the years. Asia also follows suit in the adoption of sustainability practices following their western counterparts driven by investment decisions. The banking industry in Malaysia though actively involved in CSR, some already in ESG but differing sustainability frameworks do not create a consistency in reporting. The research seeks to understand better of the situation among top local banks while undercovering best practices from key international banks regarded as recognized banks with good sustainability practices. This case study approach also includes interviews with selected top industry leaders within the banking fraternity in Malaysia on sustainability values and of their organization drive towards achieving a more structured, transparent practice and consistency in information reporting. Keywords: CSR, ESG, Sustainability Frameworks, Banks, Malaysia