Greening Value Chain - Pantas Climate Solutions
Greening Value Chain (GVC)
The Greening Value Chain (GVC) Programme is an initiative launched by Bank Negara Malaysia (BNM), Pantas and relevant climate solution partners to incentivise and assist Malaysian SMEs in implementing impactful, long-term change to green their operations.
Through GVC, Pantas enables:
- Anchors (corporate buyers) to manage their supply chain emissions
- Suppliers to access free carbon management solutions and education
- Suppliers to benefit from low-cost financing
- Banks to provide sustainability-linked financing
Benefits of GVC as an
Get ahead of regulations
Comply with current and upcoming regulations mandating emissions disclosure and other environmental-related regulations.
Manage supply chain emissions
Easily measure, track and manage emissions arising from supply chain (Scope 3).
Educate your supply chain
Provide tools and education for suppliers to manage their emissions.
Gain competitive advantage
Obtain a competitive edge in procurement, protect export revenue streams and secure deals with large multinational buyers.
| 1 | ##### Calculate emissions | Subscribe to Pantas to measure, manage and disclose carbon emissions. |
| 2 | ##### Participate in GVC | Participate in GVC and provide suppliers with Pantas climate solutions, relevant training on climate change, carbon management and upcoming regulations. |
| 3 | ##### Manage supply chain emissions | Pantas climate solutions enable the anchor to monitor and manage supply chain emissions. Suppliers are also encouraged to comply through other various incentives such as larger and more frequent orders from the anchor (as a result of being a sustainable supplier). |
How it works as an anchor
Obtain low-cost financing
Access low-cost financing through Bank Negara Malaysia's RM2 billion Low Carbon Transition Facility (LCTF) and bank's sustainability-linked financing.
Streamline Your Carbon Reporting with the SEDG
Free carbon management & ESG platform to measure, manage and report ESG metrics, integrated with the SEDG for comprehensive ESG compliance.
Free education and technical assistance
Bank Negara Malaysia, Pantas and GVC programme partners will provide suppliers with free education and technical assistance on climate change, carbon accounting and carbon management.
Benefit from decarbonising
Earn more revenue from anchors due to larger and more frequent orders as a result of being a sustainable supplier.
| 1 | ##### Participate in GVC | Receive free training on climate change, carbon accounting and carbon management. |
| 2 | ##### Measure carbon emissions | Utilise Pantas simplified carbon accounting software to measure, manage and report carbon emissions. |
| 3 | ##### Set emission reduction targets | Work with Pantas, anchors, and banks to set relevant, credible and measurable emission reduction targets for sustainability-linked financing. |
| 4 | ##### Apply and obtain financing | Apply for low-cost financing through Bank Negara Malaysia's RM2 billion Low Carbon Transition Facility (LCTF) and bank's sustainability-linked financing. Through LCTF, SMEs can obtain up to RM10 million in financing, at a maximum financing rate of 5.0% p.a. inclusive of a guarantee fee (if any) with a tenure of up to 10 years. The use of proceeds from LCTF can be used for goods/services that improve energy efficiency and/or reduce carbon footprint. Examples include: EV (Electric Vehicle), RE (Renewable Energy) solutions, energy-efficient equipment/machinery, etc. Read more about Bank Negara Malaysia's LCTF |
| 5 | ##### Benefit from decarbonising | Reap the rewards from decarbonising. Enjoy better payment terms and more frequent purchases from your anchor. Additionally, benefit from lower interest rates from the bank's sustainability-linked financing where financing rates are adjusted downwards upon achieving the relevant climate KPIs. |
How it works as a supplier
Launch sustainability-linked financing
Provide sustainability-linked financing with relevant, credible and measurable KPIs / Sustainability Performance Targets (SPT).
Measure financed emissions
Collect the necessary data to measure financed emissions (Scope 3: Category 15) in adherence to Partnership for Carbon Accounting Financials (PCAF).
Monitor climate/sustainability KPIs
Ability to perform post lending climate monitoring on sustainable financing products.
Get ahead of regulations and manage climate risks
Comply with current and upcoming regulations mandating emissions disclosure and manage climate investment risks.
| 1 | ##### Participate in GVC | Bank participates in GVC as a banking partner of the programme. |
| 2 | ##### Provide financing | Banking partner will provide sustainability-linked financing to assist suppliers in greening their operations. |
| 3 | ##### Monitor portfolio through Pantas | As a banking partner of the GVC programme, the bank is able to perform post lending monitoring on clients that receive green-related financing products. For clients that have managed to achieve the climate KPIs tied to their sustainability-linked financing, the bank will reduce their interest rate as a result of achieving their targets (e.g. Reduce carbon emissions by 10%). |
How it works as a bank
GVC programme partners
- Greening value chain
- Banking partner
- Credit guarantee provider
- Verification partner
- Education partner
- Education partner
Frequently asked questions
What is the Greening Value Chain (GVC) Programme?
The GVC programme is an initiative by Bank Negara Malaysia together with Pantas Software and other partners, which was announced at the COP-27 conference in Egypt in conjunction with Finance Day on 9 November 2022.
The GVC programme aims to incentivise and assist Malaysian SMEs in implementing impactful, long-term change to green their operations. SMEs will benefit from technical advisories and software tools from services providers, competitive financing from Bank Negara Malaysia's Low Carbon Transition Facility (LCTF) and sustainability-linked financing from AmBank.
Why is the GVC Programme important?
Recently there have been an increasing number of regulations which requires companies to report their carbon emissions relating to its products and services. Here are some examples of international regulations being implemented:
What is Bank Negara Malaysia's RM2 billion Low Carbon Transition Facility (LCTF)?
Bank Negara Malaysia's Low Carbon Transition Facility is a fund established to support SMEs in adopting sustainable and low carbon practices. LCTF is open for SMEs in all sectors that are committed to transform their business operations towards low carbon operations.
Through LCTF, SMEs can obtain up to RM10 million in financing, at a maximum financing rate of 5.0% p.a. inclusive of a guarantee fee (if any) with a tenure of up to 10 years.
The use of proceeds from LCTF can be used for goods/services that improve energy efficiency and/or reduce carbon footprint. Examples include: EV (Electric Vehicle), RE (Renewable Energy) solutions, energy-efficient equipment/machinery, etc.
Read more about Bank Negara Malaysia's LCTF
How can I participate?
We would love for you to participate in the GVC programme!
Fill in this form or reach out to our team at gvc@pantas.com to indicate your interest to participate and join the waitlist.