KUALA LUMPUR: Rather than focusing solely on traditional indicators like credit risk and profitability, Bank Pembangunan Malaysia Bhd (BPMB) evaluates companies and their projects based on their potential for social and environmental development impact.

BPMB has developed a framework called “Measuring Impact on National Development” or MIND, designed to support Malaysia’s broader goals of economic growth, social equity, and environmental stewardship.

Joel Khaw, BPMB’s head of MIND and Sustainability, explained that the frame- work allows them to evaluate projects within a broader context.

“It’s like using the right side of the brain, offering a holistic perspective. This approach evaluates activities not only in terms of creditworthiness but also their social and environmental impact,” he said at the recent Future Cities Summit.

As sustainability continues to evolve in the market, BPMB regularly updates and refines the MIND framework to address both positive impacts and potential negative effects, he added.

Yin Biing Wen, BPMB’s head of coverage, said many companies are often surprised by the range of regulations they must comply with to meet green standards under the bank’s framework.

“Many companies are taken aback by the regulations they must follow to be considered green. However, these small steps, often overlooked, collectively lead to a significant impact.

“For example, something as simple as cleaning lorry tyres before they leave a construction site or ensuring construction workers are properly insured are details we assess under MIND,” Yin said.

In addition to assessing companies, BPMB also aims to shift the mindset of its clients and the broader community to help create sustainable future cities.

Yin stressed the importance of education, noting that no matter how much investment is made in a city’s infrastructure, it will be ineffective if the community does not know how to care for it and continues harmful habits.

“Sustainability is not about perfection but making the right decisions,” he said.

Khaw also emphasised that BPMB consistently encourages clients to use the MIND scoring system to assess their own activities.

“When clients continue using MIND, the data and results allow us to further refine our framework, enabling us to benchmark projects and drive continuous improvement.

“We offer advice to our clients and strive to accommodate their requests, helping them transition into a green and sustainable business model,” he said.

https://www.thestar.com.my/news/nation/2024/10/28/using-mind-to-ensure-sustainability-and-larger-impacts