CIMB Group announced that it has become the first Malaysian bank to set its 2030 decarbonisation targets for high-emitting sectors, advancing its commitment to net zero emissions by 2050.
The bank aims to reduce the emissions intensity of its oil and gas and real estate portfolios by 16% and 34%, respectively.
CIMB’s updated whitepaper outlines sector-specific pathways and immediate strategies for its key sectors, which constitute 60% of its financing portfolio emissions as of 2023.
The bank supports oil and gas clients in transitioning to renewable and low-carbon alternatives, targeting a 16% reduction in Financed Emissions Lending Intensity (FELI) for its oil and gas portfolio by 2030.
This target includes Scope 1, 2, and 3 emissions from both upstream exploration and production companies and integrated oil and gas players, based on scenarios from the International Energy Agency (IEA).
Starting in 2025, CIMB will cease new financing for upstream oil fields approved post-2021, aligning with the IEA’s Net Zero Emissions scenario, while continuing to support natural gas projects essential for ASEAN’s energy transition.
For its commercial real estate portfolio, CIMB aims to cut operational emissions intensity by 34% by 2030, based on the Carbon Risk Real Estate Monitor and the IEA Announced Pledges Scenario.
The bank plans to finance energy-efficient buildings and on-site renewable energy installations, supporting the broader decarbonisation of the power grid.
CIMB has also pledged to exit coal by 2040 and has set a Net Zero decarbonisation pathway for its palm oil portfolio.
The bank has committed to a sustainable finance target of RM100 billion by 2024, having already achieved over RM80 billion by December 2023.
Additionally, CIMB has joined the Net Zero Banking Alliance Steering Group, contributing to global strategies for achieving net zero emissions.
Luanne Sieh, Group Chief Sustainability Officer of CIMB Group said,
“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.”
Gurdip Singh Sidhu, Chief Executive Officer of CIMB Malaysia and CIMB Bank said,
“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.”
Featured image: (Left to right) Luanne Sieh, Group Chief Sustainability Officer of CIMB Group and Gurdip Singh Sidhu, Chief Executive Officer of CIMB Malaysia and CIMB Bank Berhad, presenting the whitepaper detailing its decarbonisation plans, sector-specific pathways and strategies for all six sectors.
