CIMB sets new target of mobilising RM100 billion in sustainable finance by 2024, accelerating its aspiration to be an ASEAN sustainability leader
11 September 2023
Outperforming targets over the past two years, the Group has more than tripled its sustainable finance target since announcing its initial commitment in 2021
Kuala Lumpur: CIMB Group Holdings Berhad (“CIMB” or “the Group”) today strengthened its sustainability commitment by raising its sustainable finance target to RM100 billion by 2024 under the Group’s Green, Social, Sustainable Impact Products and Services (“GSSIPS”) Framework. The increased target was announced during the opening of CIMB’s flagship The Cooler Earth Sustainability Summit (“The Cooler Earth” or “the Summit”) 2023, centred around the theme ‘Sustainability in Action: Opportunities for a Better Tomorrow’.
The new RM100 billion commitment was made as CIMB has already achieved its increased RM60 billion target announced in 2022 ahead of plan. To date, the Group has mobilised close to RM70 billion in sustainable finance since 2021. The target complements a series of enhanced sustainability commitments announced by the Group in 2021, which include its aim of achieving Net Zero greenhouse gas (“GHG”) emissions, including scope 3 financed emissions, by 2050.
The sustainable finance commitment is guided by CIMB’s GSSIPS Framework, which serves an internal taxonomy for the Group to deliver impactful sustainable finance. In line with the framework, CIMB’s commitment includes, among others, green, social and sustainable, as well as sustainability-linked, retail, corporate and commercial financing, trade financing, debt and equity capital markets, wealth management and Treasury solutions.
The opening day of The Cooler Earth 2023 featured a ministerial address by YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade & Industry, Malaysia, a keynote delivered by Pulitzer Prize-winning author Jared Diamond, Professor of Geography and of Environmental Health Sciences at UCLA, and a call to action by Sir Robert Swan, one of the world’s most prominent explorers.
The Summit also included a uniquely assembled Government Linked Investment Company (“GLIC”) CEOs’ panel session, which featured Datuk Seri Amir Hamzah Azizan, Chief Executive Officer of Employees Provident Fund, Dato’ Amirul Feisal Wan Zahir, Managing Director of Khazanah Nasional Berhad and Ahmad Zulqarnain Onn, President & Group Chief Executive of Permodalan Nasional Berhad. During their panel on “Unlocking Insights: A Personal Perspective from GLIC Leaders", these distinguished leaders discussed their ESG portfolio aspirations, the transition towards a low-carbon economy, and their personal reflection on sustainability leadership.
Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group said, “We are pleased to announce our higher sustainable finance target of RM100 billion by 2024, more than triple our initial commitment announced in 2021. This is a significant increase, driven by the accelerating adoption of environmentally and socially responsible practices among our clients. This trend is encouraging, and further reinforces our conviction that the transition towards greener and more resilient economies presents significant new opportunities for financial institutions such as banks to grow our business."
“Our aim with this year’s The Cooler Earth is to ensure businesses are well-positioned to capitalise on emerging opportunities and anticipate future developments related to sustainable business, positioning themselves at the forefront of their industries. In line with our aspiration to be an ASEAN sustainability leader, we take pride in our role as a facilitator and shaper of sustainable practices and remain fully committed to catalyse positive economic, environmental and social impacts by providing a wide range of ESG-aligned solutions,” he added.
During the Summit, CIMB also announced that it has entered into a Memorandum of Collaboration ("MoC") with Bursa Malaysia to leverage its Bursa Carbon Exchange (“BCX”) which provides a streamlined platform for trading high-quality carbon credits through standardised contracts. This strategic partnership will feature collaborative capacity-building initiatives aimed at deepening the understanding of voluntary carbon markets and improving CIMB’s clients' accessibility to carbon credits.
The partnership will also explore the potential to enable CIMB to effectively conduct carbon credit transactional services on behalf of its clients via the BCX platform. This includes the seamless execution of diverse transactional services such as the trading of carbon credits and the retirement of these credits.
Meanwhile, CIMB has been proactively charting its emission reduction plans towards Net Zero, including setting interim climate targets and formulating transition strategies for clients in high carbon emitting sectors. In addition, it has been expanding its sustainable finance solutions, most recently by enhancing its GreenBizReady proposition with an allocation of RM3 billion for Sustainability-Linked Financing (“SLF”) for small and medium enterprises (“SMEs”), in addition to the RM3 billion earlier committed for large corporates. The SLF offering aims to incentivise and empower SMEs to decarbonise, with financing rebates of up to 0.50% per annum when they achieve GHG emission reduction targets.
Now in its 5th year, The Cooler Earth is being held from 11 to 21 September 2023 in a hybrid format across the region, to engage with ASEAN audience in line with the Group's regional presence. This year’s Summit aims to highlight the multitude of opportunities for businesses in the transition towards a low carbon and more equitable economy. Through a curated series of keynotes, mini-lectures, panel discussions, masterclasses and experiential sessions, The Cooler Earth 2023 will cover a diverse range of topics relevant to businesses today, including climate-related accounting standards, sustainable supply chains and opportunities in the green economy.
Other notable speakers in this year’s Summit include industry leaders such as: Sue Lloyd, Vice-Chair of the International Sustainability Standards Board (“ISSB”); Tomohiro Ishikawa, Chief Regulatory Engagement Officer, Mitsubishi UFJ Financial Group; Deborah Ho, Regional Head of the Southeast Asia and Country Head of BlackRock Singapore; and Philippe Joubert, Founder and CEO of Earth on Board.
CIMB Group Holdings Berhad today raised its sustainable finance target to RM100 billion by 2024 under the Group’s Green, Social, Sustainable Impact Products and Services Framework at the opening of CIMB’s flagship The Cooler Earth Sustainability Summit 2023 (“the Summit”). Themed ‘Sustainability in Action: Opportunities for a Better Tomorrow’, this year’s Summit aims to highlight the multitude of opportunities for businesses in the transition towards a low carbon and more equitable economy. (2nd from left) YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade & Industry, Malaysia delivered the ministerial address, pictured here with (L-R) Dato’ Mohamed Ross Mohd Din, Chairman, CIMB Islamic Bank Berhad; Datuk Mohd Nasir Ahmad, Chairman, CIMB Group and Dato' Abdul Rahman Ahmad, Group Chief Executive Officer, CIMB Group.
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