Alliance Bank Malaysia Bhd is joining hands with Sedania Innovator Bhd’s sustainable energy division, Sedania Technologies Sdn Bhd, to enable SMEs’ transition towards energy sustainability. The collaboration includes a fully funded programme that aims to decrease SMEs’ energy consumption and promote eco-friendly practices.
In a recent memorandum of understanding (MoU) signed between the entities, Sedania Technologies will cover the initial expenses for the initiative. It will also provide consultation to the eligible SME customers of both Alliance Bank and Alliance Islamic Bank regarding energy-efficient enhancements to their offices or buildings. The proposed upgrades, such as smart air-conditioning, controllers, and lighting solutions, are projected to reduce energy usage by a significant 25% to 40%.
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Under the Sedania Sustainable Energy for SMEs Plan 2023, SMEs will reimburse Sedania with only a fraction of the cost savings obtained from the energy efficiency upgrades. The payment plan will extend over five years, during which Sedania will also furnish complimentary maintenance, repair services, and energy monitoring systems. These provisions will aid SME clients in tracking their energy use and acquiring data required for sustainability reporting.
The Energy Performance Contract (EPC) further sweetens the deal. It offers SME customers of Alliance Bank and Alliance Islamic Bank a certified report on their energy efficiency levels, free of charge.
This initiative aligns with Alliance Bank’s Acceler8 2027 strategy plan. Raymond Chui Keng Leng, Alliance Bank group chief SME and commercial banking officer, views the partnership with Sedania as an opportunity to be a leader in Environmental, Social, and Governance (ESG) practices within the banking industry.
According to Daniel Ruppert, CEO of Sedania Innovator, SMEs are responsible for about 70% of all carbon emissions. Yet, they are often reluctant to adopt ESG practices due to cost. By creating this programme, Sedania eases the transition for SMEs, benefits the bank by expanding their services beyond traditional banking, and ultimately reduces carbon emissions for a greener future.
This news is based on a report by The Star.
