CIMB Group Holdings Bhd, a prominent player in Malaysia's banking industry, has unveiled its ambitious climate goals for 2030. This landmark initiative is set to transform the bank's approach to sustainability, focusing on reducing emissions and promoting environmentally friendly practices across various high-emission sectors.
CIMB's 2030 climate goals are part of a broader strategy to achieve net zero emissions by 2050. The bank is the first in Malaysia to target high-emission sectors, demonstrating its leadership in the fight against climate change. "We are committed to supporting the transition to a net zero economy," said Datuk Abdul Rahman Ahmad, Group CEO of CIMB. "Our 2030 climate goals are a crucial step in this journey."
Decarbonisation and Renewable Energy
A key component of CIMB's strategy is its focus on decarbonisation. The bank aims to reduce the emissions intensity of its entire portfolio, particularly in sectors like palm oil and power. By 2030, CIMB plans to cut the emissions intensity of its palm oil portfolio by 16%, equivalent to a 2% average annual reduction. This will be achieved through promoting certified sustainable palm oil production and adopting better agricultural practices.
In the power sector, CIMB is leveraging advancements in renewable energy technologies to support the transition to cleaner energy sources. "We will continue to actively support and enable clients to embrace renewable energy solutions," said Abdul Rahman. This commitment is expected to drive significant reductions in greenhouse gas emissions and foster sustainable growth.
Sustainable Finance and Green Banking
CIMB's climate goals are underpinned by its robust sustainable finance framework. Over the past three years, the bank has achieved RM86.2 billion in sustainable finance under its Green, Social, Sustainable Impact Products and Services (GSSIPS) Framework. This progress brings CIMB closer to its revised target of RM100 billion by 2024, tripling the initial goal set in 2021.
The bank's Forward23+ strategic plan has also played a pivotal role in its sustainability journey. Despite external uncertainties, CIMB has consistently achieved its Forward23+ targets, reinforcing its commitment to sustainable growth. "Our ongoing sustainability agenda and leadership are crucial as we strive to unlock new possibilities and opportunities for the future," said Datuk Mohd Nasir Ahmad, Chairman of CIMB Group.
Leading the Way in Corporate Sustainability
CIMB's efforts have not gone unnoticed. The bank has been recognized in the top quartile within the global banking industry in the S&P Global Corporate Sustainability Assessment for two consecutive years. Additionally, CIMB ranked seventh worldwide in the 2023 Financial System Benchmark among 400 international financial institutions.
These accolades highlight CIMB's leadership in corporate sustainability and its dedication to environmental responsibility. As the bank continues to implement its 2030 climate goals, it sets a precedent for other financial institutions in Malaysia and beyond to follow suit.
