KUALA LUMPUR (Sept 22): CIMB Group Holdings Bhd has committed to a series of strengthened sustainability commitments, including the mobilisation of RM30 billion towards sustainable finance, as part of its continued ambition to be an ASEAN sustainability leader by 2024.
In a statement on Wednesday in conjunction with its Sustainability Investor Day, CIMB said it has set a higher sustainability finance target guided by the group’s Green, Social, Sustainable Impact Products and Services (GSSIPS) framework.
This sustainability finance target includes wholesale and commercial financing, bonds and intermediation, wealth products, and products that enable financial inclusion such as affordable home financing and other products that cater to the B40 group.
“CIMB has made good progress and is ahead of schedule in meeting its original target with over RM10 billion in offerings under its GSSIPS framework already achieved as of 2021,” it said.
The group also announced its commitments towards climate change, which include net-zero operational greenhouse gas (GHG) scope one and two emissions by 2030, and net-zero overall GHG emissions by 2050, together with a 'No deforestation, No Peat, No Exploitation' commitment.
The group further said it has committed to invest RM150 million over five years and 100,000 in employee volunteerism hours annually by 2024, to positively impact lives, communities and businesses across ASEAN.
CIMB group chief executive officer (CEO) Datuk Abdul Rahman Ahmad said the Covid-19 pandemic has been a global stress test that was worsened further by the increasing occurrences of extreme weather events driven by climate change.
"These have had a deep impact on lives and livelihoods, emphasising the urgency for all stakeholders in the public and private sector and civil society to accelerate sustainable action towards a just transition to a low carbon economy in a measurable and timely manner.
"CIMB is committed to playing its part to accelerate the sustainability agenda through the commitments announced, particularly the group’s target to mobilise RM30 billion in sustainable finance by 2024 and achieve net-zero emission by 2050," he said.
He also said sustainability is now "already core and integrated" into the group's business, and that the group actively engages clients and all stakeholders to promote financial services that are aligned with sustainability principles.
Meanwhile, to provide greater oversight and accountability in delivering on these commitments, CIMB said it has established a Group Sustainability and Governance Committee, chaired by CIMB senior independent director Teoh Su Yin.
CIMB aims to be in the top quartile of the Dow Jones Sustainability Index (DJSI) by 2024, in line with its Forward23+ Strategic Plan. “The DJSI tracks the performance of the world’s leading companies in terms of their sustainability practices, and to date CIMB has improved its position from the 19th percentile in 2018 to 65th in 2020,” it added.
CIMB shares closed two sen higher at RM4.80 on Wednesday, valuing the group at RM48.17 billion.