CIMB Group Holdings Bhd group chief sustainability officer Luanne Sieh (left) and CIMB Malaysia and CIMB Bank Bhd chief executive officer Gurdip Singh Sidhu (right).
KUALA LUMPUR: CIMB Group
Holdings Bhd has set climate targets for its oil, gas, and real estate portfolios, becoming the first Malaysian bank to establish 2030 decarbonisation goals for high-emission sectors.
This is part of its broader 2050 Net Zero commitments, which also cover thermal coal mining, cement, palm oil, and power.
The banking group has also updated its previously published whitepaper detailing its decarbonisation plans, meticulously delineating sector-specific pathways and immediate strategies for all six sectors, which collectively account for 60% of the group’s financing portfolio emissions as of 2023.
“We are pleased to announce the completion of CIMB’s 2030 decarbonisation targets, marking a significant milestone toward realising our long-term Net Zero target by 2050. These interim targets demonstrate our accountability and reinforce our commitment to facilitating a just transition across Asean.
“By breaking down our long-term goal into actionable and measurable milestones, we are paving the way for tangible progress. While we implement proactive measures to address climate risks in our portfolio and promote sustainable finance practices, CIMB remains committed to support and empower our clients in transitioning to more sustainable business practices,” CIMB Malaysia and CIMB Bank Bhd chief executive officer Gurdip Singh Sidhu said in a statement.
CIMB is committed to assisting its oil and gas clients as they decarbonise and shift towards renewable and low-carbon alternatives in their portfolios.
To that end, CIMB aims to facilitate the transition by reducing the Financed Emissions Lending Intensity (FELI) of its oil and gas portfolio by 16% by 2030. This target encompasses Scope 1, 2 and 3 emissions originating from pure-play upstream exploration and production companies as well as integrated oil and gas players.
The decarbonisation target is set based on the International Energy Agency Net Zero Emissions by 2050 Scenario (IEA NZE), enhanced with insights from the International Energy Agency Sustainable Development Scenario (IEA SDS), to formulate a Net Zero scenario appropriate for the Asean context.
Beginning Jan 1, 2025, CIMB will also cease new financing specifically for new upstream oil fields approved for development post-2021.
However, recognising natural gas as a crucial transition fuel for Asean, CIMB will continue to support natural gas initiatives. This is vital for reducing coal dependence in the power sector and ensuring short-term energy security through self-sufficiency.
CIMB has set a target to reduce the operational emissions intensity of its commercial real estate portfolio by 34% by 2030.
A summary of CIMB’s 2030 climate targets are as below:
CIMB Group chief sustainability officer Luanne Sieh said: “While this is a significant milestone in our Net Zero journey, it is just the beginning. We are now actively implementing strategic measures into existing business and risk processes, a comprehensive effort that we anticipate will span over the next two to three years, requiring extensive coordination across the bank. Collaboration is key, and we are working closely with our clients to drive impactful change and real economy decarbonisation while safeguarding a just transition.”
