Relationship Managers as Drivers of Climate Transition - A Journey : The New Role of Relationship Managers in Climate Transition
Traditionally, Relationship Managers (RMs) were mainly focused on: ✔ Business growth ✔ Financing needs ✔ Credit performance ✔ Relationship management But as climate-related risks increasingly affect businesses, the RM role is evolving.
Today, RMs are also becoming important transition partners for customers.
Why?
Because many climate-related risks are already affecting day-to-day business operations: ⚠️ Flood disruptions ⚠️ Rising energy costs ⚠️ Supply chain pressures ⚠️ Buyer sustainability requirements ⚠️ Operational inefficiencies
And often, Relationship Managers are the first people customers speak to about business challenges. This creates an opportunity for RMs to have deeper and more meaningful business conversations.
Instead of only discussing financing, RMs can also start asking: 🔹 “How exposed are your operations to floods or extreme weather?” 🔹 “Are rising energy costs affecting your margins?” 🔹 “Do your buyers require ESG or sustainability disclosures?” 🔹 “Are older machines increasing operational costs?” 🔹 “Have you explored energy-saving improvements?”
For example: A manufacturing SME struggling with rising electricity costs may initially approach the bank for working capital support. But through deeper engagement, the RM may identify opportunities for: 💲 Energy-efficient machinery upgrades 💲Solar financing 💲Operational efficiency improvements 💲Better resilience planning
Over time, these improvements may help the customer: ✔ Reduce operating costs ✔ Improve productivity ✔ Strengthen competitiveness ✔ Build long-term business resilience
Guided by Bank Negara Malaysia’s CCPT, the future RM role goes beyond financing transactions.
It increasingly involves helping customers navigate transition risks and identify practical pathways towards a more resilient and sustainable business model. In many ways, the future RM may become not just a banker, but a long-term transition partner.
Relationship Managers role calls for a crucial transition journey.
