CIMB Group Holdings Berhad ("CIMB" or "the Group") has achieved a significant milestone by becoming the first Malaysian bank to finalise its 2030 decarbonisation targets for high-emitting sectors, positioning itself firmly on the path towards achieving Net Zero emissions by 2050. The announcement underscores CIMB's proactive stance in addressing climate change through sector-specific strategies aimed at reducing carbon intensity across key portfolios.
The Group's comprehensive decarbonisation strategy focuses initially on its oil and gas and real estate portfolios, sectors recognised for their significant environmental impact. CIMB aims to reduce the emissions intensity of its oil and gas financing by 16% and its commercial real estate portfolio by 34% by the year 2030. These targets are part of CIMB's broader commitment to align its operations with the goals of the International Energy Agency's Net Zero Emissions by 2050 Scenario, adapted to the ASEAN context.
Gurdip Singh Sidhu, CEO of CIMB Malaysia and CIMB Bank Berhad, emphasised the strategic importance of these targets in driving tangible progress towards sustainability. "By setting clear and measurable interim goals, CIMB demonstrates its accountability and dedication to facilitating a just transition across ASEAN," he stated. He highlighted CIMB's role in supporting clients' transitions to sustainable practices while enhancing climate resilience in the region.
The bank's decarbonisation plans are meticulously crafted to align with national policies and regulatory frameworks in the countries where CIMB operates. This approach not only reinforces CIMB's commitment to sustainability but also strengthens partnerships with stakeholders to achieve shared environmental objectives.
CIMB's commitment extends beyond emissions reduction. Starting January 2025, the Group will halt new financing for upstream oil fields approved post-2021, aligning with global energy transition imperatives. While CIMB acknowledges the pivotal role of natural gas in the region's energy security, it remains committed to supporting initiatives that reduce dependence on coal, particularly within the power sector.
Luanne Sieh, Group Chief Sustainability Officer, underscored the holistic nature of CIMB's sustainability efforts. "This milestone marks the beginning of a comprehensive integration of sustainability into our core business processes," she affirmed. CIMB is actively embedding sustainable finance solutions through its Green, Social, Sustainable Impact Products and Services (GSSIPS) framework, aimed at driving real economy decarbonisation and ensuring a just transition for all stakeholders.
In addition to achieving its 2030 climate targets, CIMB has tripled its sustainable finance target to RM100 billion by 2024, recording over RM80 billion as of December 2023. This trajectory reaffirms CIMB's leadership in sustainable finance within the banking sector, bolstered by its recent election into the Net Zero Banking Alliance (NZBA) Steering Group.