KUALA LUMPUR (June 26): RAM Consultancy Services Sdn Bhd (RAMC) has upgraded AMMB Holdings Bhd's (AmBank) sustainability rating to Gold, from Silver previously.

In a statement today, the agency said the upgrade is primarily supported by the upward revision of the AmBank's environment rating to Silver, from Bronze previously.

It said AmBank's rating upgrade is primarily driven by the significant improvement in its environmental performance following the establishment of its Group Environmental Policy, along with the formalisation of its supply-chain management and assessment that includes environmental and social considerations.

RAMC said it considers the establishment of the Group Environmental Policy as a structured approach to environmental management.

It said AmBank is expected to complete the revamp of its scope of measurement and reporting by financial year March 2020.

Meanwhile, RAMC has also reaffirmed AmBank Group's social, governance and positive impact ratings.

It said AmBank has comprehensive policies and robust management in human resources, human rights, customer product and service responsibility, and community.

RAMC said the sustainability rating is moderated by AmBank's modest level of positive impact contribution.

"While AmBank has increased its proportion of financing for affordable housing schemes, SMEs and green projects in Malaysia, its contribution of a positive impact is deemed relatively modest compared to its peers.

"Moreover, the gender diversity of AmBank's board also falls short of the 30% recommendation by the MCCG (Malaysian Code on Corporate Governance), with only two female directors out of seven," it said.