KUALA LUMPUR (Sept 11): CIMB Group Holdings Bhd has raised its sustainable finance target to RM100 billion by 2024, marking a substantial increase from its earlier target of RM60 billion set in 2022, and an initial goal of RM30 billion set in 2021.
CIMB group chief executive officer Datuk Abdul Rahman Ahmad said the group is raising its target, given that it had surpassed its previous target, having mobilised close to RM70 billion in sustainable finance currently.
“With growing awareness and adoption of ESG (environmental, social and governance), we have seen an acceleration in sustainable finance across the markets we operate in, exceeding our expectations.
“Accordingly, I am pleased to announce today that we are further increasing our sustainable finance commitment to RM100 billion by 2024, more than triple our original target set two years ago,” Abdul Rahman said in his welcome remarks at the Cooler Earth Sustainability Summit 2023 here on Monday.
Abdul Rahman said the revised target is aimed to create positive impacts aligned with CIMB’s green, social, sustainable impact products and services (GSSIPS) framework.
Last year, CIMB mobilised RM27.8 billion in sustainable finance in GSSIPS, an increase of 4.6% year-on-year, according to the group's annual report 2022.
Note that over 50% of the RM27.8 billion was allocated to supporting underserved communities, which comprised RM10.7 billion for low-income individuals and RM3.6 billion for micro and small enterprises.
On a cumulative basis, CIMB has mobilised RM54.3 billion in sustainable finance since 2021.
“In driving this commitment forward, we will continue to introduce and promote innovative solutions to support our clients' goals and ambitions in the transition towards a greener and more sustainable future,” he said.
He said that CIMB will also continue to make good progress on its own transition road map, as the bank proactively charts its emission reduction plan towards achieving its net zero target by 2050, including Scope 3 financed emissions.
“Besides improving our Scopes 1 and 2 emission performance, we have completed our baselining exercise of our financed emissions arising from on-balance sheet financing for all segments in Malaysia and Indonesia, and set our interim climate targets for the coal and cement sectors."
Meanwhile, he said that the bank is currently working on setting climate targets for the remaining carbon-intensive sectors identified, and formulating transition strategies for clients in these sectors.