CIMB on track to achieve RM100bil sustainability financing target
PETALING JAYA: CIMB Group Holdings Bhd is on track to achieve its RM100 billion sustainability financing target by end-2024.
As of December 2023, the bank’s sustainability finance reached RM86.2 billion, positioning it to achieve its RM100 billion target by end-2024 under its green, social, sustainable impact products and services framework.
The banking group has also announced its 2030 climate targets for its oil and gas (O&G) and real estate portfolios, marking it as the first Malaysian bank to set decarbonisation targets for high-emission sectors by 2030.
The targets are part of its broader commitment to achieve net-zero emissions by 2050, and includes the thermal coal mining, cement, palm oil and power sectors. The target was set to reduce the emissions intensity of its O&G and real estate portfolios by 16% and 34%, respectively, by 2030.
Starting Jan 1, 2025, CIMB will halt new financing for upstream oil fields approved for development post-2021, in line with the International Energy Agency’s (IEA) guidelines.
CIMB Bank and CIMB Malaysia CEO Gurdip Singh Sidhu said the interim targets demonstrate the bank’s accountability and reinforce its commitment to facilitating a just transition across Asean.
“While we implement proactive measures to address climate risks in our portfolio and promote sustainable finance practices, CIMB remains committed to support and empower our clients in transitioning to more sustainable business practices,” he said at the CIMB Sustainability Roundtable today.
On its aims to reduce the operational emissions intensity of its commercial real estate portfolio, CIMB is guided by the carbon risk real estate monitor and the IEA’s announced pledges scenario.
The bank also plans to fund energy-efficient buildings and on-site renewable energy installations, while also supporting power grid decarbonisation through its net-zero-aligned power sector target.
Besides, Gurdip said the group has also updated its decarbonisation whitepaper, detailing specific strategies for all six sectors (i.e. O&G, real estate, thermal coal mining, cement, palm oil and power sectors) which collectively accounts for 60% of its financing portfolio emissions as of last year.
CIMB Group chief sustainability officer Luanne Sieh said the bank is actively implementing strategic measures into its business and risk processes, which is expected to span the next two to three years.
“Collaboration is key, and we are working closely with our clients to drive impactful change and decarbonisation while ensuring a just transition,” she said.
In 2021, CIMB was the first bank amongst emerging markets globally to announce its commitment to exit coal by 2040, in line with the goals of the Paris Agreement and most recently, the first bank globally to announce a net-zero decarbonisation pathway for its palm oil portfolio.
CIMB was elected recently to the Net-zero Banking Alliance (NZBA) Steering Group, providing an emerging market perspective on the global transition to net-zero emissions by 2050.
Source: cimb-on-track-to-achieve-rm100bil-sustainability-financing-target – FMT
