CIMB sets 2030 decarbonisation targets for high-emission sectors

PETALING JAYA: CIMB Group Holdings Bhd is the first Malaysian bank to meet 2030 decarbonisation targets for high-emitting sectors as part of its broader 2050 net zero emissions commitments, which include thermal coal, cement, palm oil and power,

The Group today announced its 2030 climate targets for its oil and gas and real estate portfolios in Kuala Lumpur.

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

CIMB Malaysia and CIMB Bank Bhd Chief Executive Officer Gurdip Singh Sidhu said: “We are pleased to announce that CIMB’s 2030 decarbonisation targets have been achieved, marking an important milestone towards our long-term goal of net zero emissions 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 pave 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 clients in their transition to more sustainable business practices.”

Gurdip, who also oversees the group’s overall sustainability efforts, added that CIMB’s sector-specific decarbonisation plans are carefully tailored to closely align with the policies and directives of each country’s individual government, demonstrating the company’s commitment to achieving national targets across the regions in which it operates.

CIMB said it is committed to helping its oil and gas clients decarbonise and transition to renewable and low-carbon alternatives in their portfolios. To this end, CIMB aims to facilitate the transition by reducing the carbon intensity of loans financed across its oil and gas portfolio by 16% by 2030. This target includes Scope 1, 2 and 3 emissions from clean upstream exploration and production companies, as well as integrated oil and gas players.

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

At the same time, starting from 1 January 2025, the group will cease new financing, particularly for new upstream oil fields approved for development after 2021. However, recognising the critical role of natural gas as a transition fuel needed by ASEAN, CIMB will continue to support natural gas initiatives, which is particularly important to reduce coal dependence in the energy sector and ensure energy security through self-sufficiency in the short term.

The Group has set a target to reduce the operational emissions intensity of its commercial real estate portfolio by 34% by 2030. This interim target, which includes the Scope 1 and 2 emissions of its real estate clients, is in line with the energy efficiency improvements suggested by the Carbon Risk Real Estate Monitor but adopts a pace of grid decarbonisation consistent with the IEA Announced Commitments scenario pathway.

To achieve this goal, CIMB will actively seek funding for the development, modernization and

maintaining more energy efficient buildings, including energy transformations in buildings through on-site renewable energy installations such as rooftop solar panels and energy storage. In 2021, CIMB was the first emerging market bank in the world to announce its commitment to phase out coal by 2040, in line with the goals of the Paris Agreement, and most recently the first bank in the world to announce a net zero emissions pathway for its palm oil portfolio.