CIMB sets 2030 climate targets, first Malaysian bank to focus on high-emission sectors

KUALA LUMPUR: CIMB Group Holdings Bhd has set climate targets for its oil, gas and property portfolios, becoming the first Malaysian bank to set 2030 decarbonisation targets for high-emissions sectors.

This is part of wider net zero emissions commitments by 2050 that also cover thermal coal, cement, palm oil and energy.

The banking group also updated its previously published white paper detailing its decarbonisation plans, detailing sector-specific pathways and immediate strategies for all six sectors, which together account for 60% of the group’s financial portfolio emissions from 2023.

“We are pleased to announce the completion of CIMB’s 2030 decarbonisation targets, an important milestone towards our long-term goal of Net Zero by 2050. These interim targets demonstrate our responsibility 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 across our portfolio and promote sustainable financial practices, CIMB remains committed to supporting and empowering our customers in transitioning towards more sustainable business practices,” said CIMB Malaysia and CIMB Bank Bhd CEO Gurdip Singh Sidhu in a statement.

CIMB is committed to supporting its oil and gas clients in decarbonising and transitioning to renewable and low-emission energy sources across their portfolios.

To this 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 includes Scope 1, 2 and 3 emissions from pure-play upstream exploration and production companies, as well as from integrated oil and gas players.

The decarbonisation target was set based on the International Energy Agency’s 2050 net-zero emissions scenario (IEA NZE), enriched with insights from the Sustainable Development Scenario (IEA SDS), to formulate a net-zero emissions scenario appropriate for the ASEAN context.

From 1 January 2025, CIMB will also cease new financing, especially for new oil fields approved for development after 2021.

However, recognizing natural gas as a key transition fuel for ASEAN, CIMB will continue to support natural gas initiatives. This is key to reducing coal dependence in the energy sector and ensuring short-term energy security through self-sufficiency.

CIMB has set a target to reduce the operational emissions intensity of its commercial property portfolio by 34% by 2030.

Below is a summary of CIMB’s 2030 climate targets:

Luanne Sieh, CIMB Group Chief Sustainability Officer, said: “While this is a significant milestone in our Net Zero journey, it is just the beginning. We are now actively implementing strategic measures across existing business and risk processes, a comprehensive effort that we anticipate will span the next two to three years and will require broad coordination across the bank. Collaboration is key and we are working closely with our clients to drive meaningful change and decarbonise the real economy while safeguarding a just transition.”