CIMB Doubles its Sustainable Finance Target to RM60 Billion by 2024 in Line with Ambition to be an ASEAN Sustainability Leader
CIMB Group Holdings Berhad strengthened its sustainability commitment by doubling its sustainable finance target to RM60 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”) 2022-themed ‘Facilitating a Just Transition’. Now in its 4th year, The Cooler Earth 2022 is being held in a hybrid format from 20 to 24 September 2022 at Mandarin Oriental, Kuala Lumpur, as well as via virtual broadcast to reach an ASEAN audience in line with the Group’s regional footprint.
The increased commitment of RM60 billion was made as CIMB has already mobilised its earlier announced target of RM30 billion two years ahead of plan, guided by its GSSIPS Framework which serves as a guide and an internal taxonomy for the Group to deliver impactful sustainable finance.
In line with the framework, CIMB’s sustainable finance 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 sustainable finance target complements a series of enhanced sustainability commitments announced by the Group in 2021, which include its target of achieving Net Zero emissions, including scope 3 financed emissions by 2050.
The opening of The Cooler Earth 2022 was graced by a Royal Address by Duli Yang Maha Mulia Paduka Seri Sultan Perak Darul Ridzuan, Sultan Nazrin Muizzuddin Shah Ibni Almarhum Sultan Azlan Muhibbuddin Shah Al-Maghfur-Lah. This was followed by a ministerial panel on ‘Accelerating Climate Action & Justice’. The ministerial panel featured YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Finance, Malaysia, and H.E. Sri Mulyani Indrawati, Minister of Finance, Republic of Indonesia, and was moderated by H.E. Karima El Korri, United Nations Resident Coordinator in Malaysia, Brunei Darussalam and Singapore.
Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group, said:
“We are pleased to announce our increased sustainable finance target of RM60 billion by 2024, double the previous target introduced last year. Our strengthened commitment is a reflection of CIMB’s progress since embarking on our sustainability journey in 2018 and a testament to the accelerated adoption of sustainable finance with the support of our clients and customers across ASEAN.
"Over the past year, we successfully pioneered innovative market leading transactions such as a sustainability-linked derivative and a Sustainable Collateralised Commodity Murabahah and most recently introduced our latest offering, the Sustainable Term Investment Account-i. We plan to introduce more innovative sustainable finance products and services moving forward, which will also enable us to expand our reach as we continue to make positive economic, environmental and social impacts across the region.
“As a purpose-driven organisation and financial intermediary, CIMB is in a position to influence, drive and encourage the adoption of environmentally and socially responsible business practices and lifestyles. Through The Cooler Earth’s theme of ‘Facilitating a Just Transition’ this year, we hope to highlight how we can together ensure that the urgent shift towards a low-carbon economy is also fair and inclusive for all stakeholders, leaving no one behind.
"This theme is firmly in line with our new brand proposition of ‘Moving Forward with You'. We look forward to continue driving the sustainability agenda, catalysing environmentally and socially positive actions in our business ecosystem towards our aspiration of becoming an ASEAN sustainability leader."
The Cooler Earth aims to convene key stakeholders such as industry experts, corporate leaders, businesses, non-governmental organisations (NGOs), financiers and investors, policymakers and global citizens to deliberate on challenges, and accelerate the urgent actions required to shape a more sustainable future.
The theme of this year’s Summit reflects on the accelerating global action on climate following COP26 in Glasgow whilst ensuring that climate solutions and social development blueprints are inclusive, equitable and just for all stakeholders.
The Summit will include a wide range of keynote presentations, expert-led panel discussions and capacity-building masterclasses, as well as investor and business networking sessions, all aimed at highlighting the opportunities and risks in catalysing urgent action across the public and private sectors, as well as civil society.
It will also host experiential learning events across ASEAN which will allow participants to have hands-on experience through community and environmental projects and activities. In addition, CIMB Niaga will be hosting an Indonesia-focused side event on 21 September 2022 themed ‘Facilitating a Just Transition in Indonesia’, with opening remarks by H.E. Airlangga Hartarto, Coordinating Minister for Economic Affairs of the Republic of Indonesia.
Other notable speakers at this year’s The Cooler Earth include among others H.E. Amalia Adininggar Widyasanti, Deputy Minister for Economic Affairs at the Ministry of National Development Planning/Bappenas, Republic of Indonesia; Erinch Sahan, Business & Enterprise Lead, Doughnut Economics Action Lab; Anne Lasimbang, Executive Director of Partners of Community Organisations in Sabah (PACOS) Trust; and Paul Nicklen, acclaimed Canadian photographer, film-maker, author and marine biologist.
Over the past few years, CIMB has been an active proponent of the environmental, social and governance (ESG) agenda. CIMB was a drafting member of the UN United Nations Environment Programme Finance Initiative (UNEP FI) Principles for Responsible Banking, is a member of the Collective Commitment to Climate Action (CCCA) and Net-Zero Banking Alliance (NZBA), and was the first emerging market bank to commit to exiting from coal by 2040.