Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Investment
• Youth Development
• Employee Wellbeing
• Digitalization
• Cost Management
• Compliance
• Customer Experience

Social Achievements

• Extended over RM7.6 million to various community-, education- and sports-related causes through CIMB Foundation and Group-wide initiatives.
• Launched the CIMB ASEAN Scholarship, fully sponsoring 20 ASEAN students annually for their undergraduate studies.
• Launched CIMB’s financial literacy program, Be$mart.
• Improved Sustainability Engagement Index to 86% from 84% in 2014.

Governance Achievements

• Strengthened compliance culture via initiatives such as increasing staff awareness, revising the Code of Ethics and Code of Conduct, implementing the Demerit Framework, and incorporating Risk & Compliance KPIs for all employees.
• Established a Group Customer Experience Management (GCXM) Department to improve customer experience.

Climate Goals & Targets

Environmental Challenges

• Elevated provisions from the Commercial Banking segment in Thailand and Singapore.
• Challenging macroeconomic environment and fast-evolving operating landscape.
• Higher than expected provisions in Thailand and Singapore.
• Deteriorating asset quality in Singapore.
• Weaknesses within the commodity and agriculture industries in Thailand.
• Economic headwinds from the oil and gas industry in Singapore.
• Increased provisions in isolated commodities and agri-related industries in Thailand.
• Slow capital markets and lower interest from foreign funds in emerging markets.
• Volatility in commodity prices and currencies.
• Regulatory developments within operating geographies (Basel III, Basel IV, FRS9).

Mitigation Strategies

• Continued focus on cost management.
• Various cost and productivity projects across all countries and divisions.
• Group Procurement Function set up.
• Capital and Risk-Weighted Assets Optimisation (RWA) program.
• Culture program focused on 'A Better CIMB' initiative.
• Strategic Workforce Planning.
• Enhanced performance management system.
• Stress tests and portfolio tools assessment.
• Risk Appetite Statement discussed at the Board level.
• Process improvements and risk measures to improve provision levels.
• Various cost management initiatives and greater financial discipline.
• Branch productivity initiatives (recalibration of sales channels, branch rationalisation).
• Greater hiring discipline and manpower management.
• Refined risk models and scorecards, risk-based pricing for key products.
• Consolidated credit and collections operations, credit academy for training.

Supply Chain Management

Responsible Procurement

• Group Procurement Function established

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia requirements

Certifications: ISO 9001:2008 (GIAD)

Awards & Recognition

• Best Retail Bank in Malaysia (The Asian Banker)
• Mobile Banking Initiative of the Year – Malaysia (ABF Retail Banking Awards)
• Digital Banking Initiative of the Year – Malaysia (ABF Retail Banking Awards)
• Best Corporate and Institutional Bank in Malaysia (The Asset Triple A Country Awards)
• Best Liability Management (Onshore) in Thailand (The Asset Triple A Country Awards)
• Most Innovative Investment Bank from Asia-Pacific (The Banker’s Investment Banking Awards)
• Best for Overall FX Services (Asiamoney FX Poll)
• Best Bank in Malaysia (FinanceAsia Country Awards)
• Best Domestic Private Bank in Malaysia (FinanceAsia 20th Anniversary Platinum Awards)
• Best Trade Finance Bank for Malaysia (The Asset Asian Awards)
• Best SME Trade Finance Solutions for Malaysia (The Asset Asian Awards)
• Best JomPAY Bank (Malaysian e-Payments Excellence Awards)
• JomPAY Innovation Award (Malaysian e-Payments Excellence Awards)
• Best Cash Management Bank in Malaysia (Global Finance)
• Malaysia Domestic Cash Management Bank of the Year (Asian Banking and Finance)
• Most Innovative Investment Bank from Asia-Pacific (The Banker)
• Best Islamic Investment Bank Award in APAC (The Asset Triple A)
• Best Investment Bank in Malaysia (FinanceAsia, Alpha Southeast Asia, Global Finance)
• Best Trade Finance Bank, Malaysia (The Asset Triple A)
• Best Cash Management Bank, Indonesia (The Asset Triple A)
• Islamic Bank of the Year for Global, Asia and Malaysia (The Banker)
• Sukuk House of the Year for the Asia Pacific, Malaysia and Indonesia (The Asset)
• Best Islamic Trustee/Custodian (Islamic Finance News)
• Best Bank in Malaysia (FinanceAsia Country Awards)
• ASEAN Excellence Award (Malaysia) (ASEAN Business Awards Malaysia)
• Platinum Award for Best Annual Report in Bahasa Malaysia (National Annual Corporate Report Awards)
• Gold Award for Best Inclusiveness and Diversity Reporting (National Annual Corporate Report Awards)
• Excellence Award for ESG Practices (MSWG)
• Achievement Award for contribution to local bond market in ASEAN (Alpha Southeast Asia)
• Silver Award for Best Innovative Idea or Concept (2016 PMAA DRAGONS OF MALAYSIA)
• Silver Award in the Banking, Investment and Insurance category (Putra Brand Awards)
• Silver Overall Excellence Award for Most Outstanding Annual Report of the Year (NACRA)
• Top ASEAN Local Currencies Bonds underwriter and top Global Sukuk underwriter (Bloomberg)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Technology
• Governance
• Nurturing Growth
• Talent Attraction, Growth and Retention
• Corporate Culture
• Financial Literacy, Inclusion and Well-Being
• Sustainability Education and Participation
• Sustainable Supply Chain
• Health, Safety and Well-Being
• Diversity and Inclusion
• Corporate Citizenship and Volunteerism
• Customer Experience

Environmental Achievements

• Reduced paper used by approximately 25% in the printing and production of CIMB Annual Report 2019.
• Total carbon footprint for the 3 books of CIMB Annual Report 2019 is 7.495 kgCO2e.
• Implemented energy reduction initiatives in CIMB offices (Malaysia), Menara UAB (Malaysia), Menara SBB (Malaysia), Menara CIMB (Malaysia), and CIMB Niaga.
• Launched green initiatives in CIMB’s regional offices (Reduce & Recycle Campaign, Shred 2 Share Project).

Social Achievements

• Launched CIMB SHINE, a platform for start-ups, SMEs to equip them with knowledge in finance, the Fourth Industrial Revolution, and e-commerce.
• Expanded internal definition of Corporate Social Responsibility (CSR) to include a wider network of stakeholders.
• Standardized and improved regional CSR strategy, implementation processes, project admission criteria and overall governance.
• Launched ‘It’s a Tuesday Thing’ (IATT) programme to foster better collaboration among employees.
• Improved Occupational Safety and Health performance.
• Implemented health, safety and well-being guidelines, assessments, and programmes.
• Enriched enabling policies and programmes to motivate performance.

Governance Achievements

• Rolled-out CIMB Group Sustainable Financing Policy (GSFP) across corporate banking business in Malaysia.
• Developed specific Sector Guides detailing expectations of clients in Palm Oil, Construction & Real Estate, Oil & Gas, and Forestry sectors.
• Conducted Enhanced Sustainability Due Diligence (ESDD) on more than 44 clients.
• Extended sustainability efforts to vendors by rolling out a self-disclosure submission.
• Improved diversity at the workplace (Diversity of Skills, Diversity of Abilities, Gender Diversity).

Climate Goals & Targets

Environmental Challenges

• Global climate emergency impacting business.
• Systemic challenges and global trends.
• Raising E&S consciousness.
• Managing carbon footprint and exposure to carbon-intensive sectors.
• Managing supply chain risks.
• Ensuring fair and equitable treatment of customers.
• Maintaining data security and privacy.

Mitigation Strategies

• Implemented CIMB Group Sustainable Financing Policy (GSFP).
• Developed sector-specific guides on environmental and social risks.
• Conducted enhanced sustainability due diligence on clients.
• Extended sustainability enculturation efforts to vendors.
• Managed carbon footprint by monitoring and reducing emissions and waste.
• Developed a Positive Impact Products and Services (PIPS) Framework.
• Strengthened commitment to customers through improved service delivery and technology adoption.
• Implemented privacy and data security policies.

Supply Chain Management

Supplier Audits: 819 suppliers registered in GEPS in 2019 (25% increase from 2018)

Responsible Procurement

• CIMB Group Sustainable Procurement Guidelines
• Vendor Code of Conduct (VCOC)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UNEP FI Principles for Responsible Banking (PRB)

Certifications: ISO14001:2015

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 15
• Goal 16

All sustainability efforts, programmes and initiatives are structured and designed to meet specific targets of these SDGs.

Sustainable Products & Innovation

• CIMB SDG Bond
• CIMB SME Renewable Energy Financing
• Sustainability-Linked Loans (SLLs)
• EcoSave Savings Account-i

Awards & Recognition

• Global Finance’s Best Digital Consumer Bank (CIMB Bank Philippines)
• Asian Banker’s Best Digital Bank (CIMB Bank Philippines)
• International Finance’s Fastest Growing Digital Bank Award (CIMB Bank Philippines)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity and Inclusion
• Sustainable Finance
• Financial Literacy, Inclusion and Well-being
• Health, Safety and Well-being
• Talent Attraction, Growth and Retention
• Sustainable Supply Chain
• Governance
• Customer Experience
• Technology

Environmental Achievements

• 8.8% Reduction in Scope 1 and 2 GHG Emissions Intensity vs 2019
• RM644.9 million in renewable energy financing
• 45% reduction in paper used in the printing and production of CIMB Annual Report 2020 compared to 2019

Social Achievements

• Launched the Green, Social, Sustainable Impact Products and Services Framework
• Developed the Green, Social, Sustainable Impact Products and Services (GSSIPS) Framework
• Partnered with MATRADE and IMPACTO to reach out to more than 200 export-ready SMEs to orientate them on various sustainability risks
• Invested RM117.4 million in community projects over a three-year period

Governance Achievements

• Developed transparent performance indicators to measure and demonstrate progress
• Rolled out sustainability policies across key markets
• Committed to exit from coal financing by 2040
• 11 out of 13 (85%) material issues were supported by policy commitments
• 9% improvement in Governance score on DJSI

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on people, customers, vendors and local communities
• Supply chain disruptions
• Compromised productivity and performance due to employee well-being concerns
• Transition risks in moving towards a low-carbon economy
• Physical risks associated with extreme weather events

Mitigation Strategies

• Operationalising short and mid-term recovery plans and planning for longer-term transformation to improve resilience
• Introduced Forward23+, recalibration of Forward23 strategies and targets
• Embedding clear Sustainability KPIs across business units and key enablers
• Developing robust mechanisms to mitigate risks such as rising inequalities, deterioration of biodiversity, and impacts of climate change
• Announced CIMB’s Coal Sector Guide and commitment to phase out coal from portfolio by 2040
• Developing Green, Social, Sustainable Impact Products and Services (GSSIPS) Framework
• Providing financial relief to individuals and industrial sectors affected by the pandemic
• Implementing robust business continuity procedures

Supply Chain Management

Supplier Audits: 2,239 registered suppliers

Responsible Procurement

• Vendor Code of Conduct
• Group Electronic Procurement System (GEPS)
• Sustainability due diligence
• No Purchase Order, No Pay process
• Anti-bribery statement in GEPS

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Extreme weather events

Transition Risks

• Regulatory changes
• Carbon pricing
• Shifting away from fossil fuels
• Stranded assets

Opportunities

• Growth in renewable energy sector
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core Option, UNEP FI Principles for Responsible Banking (PRB), TCFD

Certifications: ISO 14001:2015

Third-party Assurance: KPMG PLT

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 8
• Goal 10
• Goal 13

Various initiatives aligned with these goals are described throughout the report.

Sustainable Products & Innovation

• EcoSave-i Savings Account
• Green Home Financing
• Electric and Hybrid Car Financing
• Sustainability-Linked Loans
• SME Renewable Energy Financing
• GreenBizReady
• ESG investment funds

Awards & Recognition

• 23 international awards for CIMB Bank Philippines

Environmental Metrics

ESG Focus Areas

• Sustainable and responsible finance
• Climate change
• Governance and ethics
• Diversity and inclusion
• Cybersecurity and data privacy
• Customer experience
• Financial inclusion and literacy
• Biodiversity and ecosystem integrity
• Risk management and business resilience
• Talent attraction, growth and retention
• Digitalisation and innovation
• Corporate citizenship
• Human rights

Environmental Achievements

• 26% Reduction in Scope 1 and Scope 2 GHG Emissions (vs 2019 baseline)
• Published 2030 Paris-aligned targets for our Power and Palm Oil Portfolios. First bank globally to announce Paris-aligned targets for Palm Oil, and first in Malaysia for Power
• Mobilised over RM86.2 billion in Green, Social, Sustainable Impact Products and Services since 2021. Tripled our sustainable finance target to RM100 billion by 2024
• Introduced Malaysia’s first comprehensive Sustainability-Linked Financing proposition for SMEs

Social Achievements

• Achieved top-quartile placement in the Organizational Health Index (OHI) regionally, and recognised as one of Asia’s best employers
• Invested RM32.9 million and over 203,000 volunteer hours in local communities
• Launched Malaysia’s first comprehensive Sustainability-Linked Financing proposition for SMEs
• Introduced a suite of Electric Vehicle (EV) financing solutions

Governance Achievements

• 33% Female Representation on Board of Directors
• 88th percentile in the S&P Global Corporate Sustainability Assessment
• Strengthened risk management, compliance, monitoring and reporting controls and mechanisms

Climate Goals & Targets

Environmental Challenges

• NIM compression from sustained deposit price competition
• Global macroeconomic uncertainties (interest rates, inflation, geopolitical tensions)
• Cybersecurity and fraud risks
• Heightened competition from digital banks and non-bank financial services

Mitigation Strategies

• Strengthened CASA franchise to offset NIM compression
• Implemented various security measures and intensified efforts around operational resiliency
• Strategic initiatives to improve asset quality
• Focused investments in high-value digital capabilities and propositions

Supply Chain Management

Responsible Procurement

• Inculcation of sustainable procurement practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Value Reporting Foundation

Third-party Assurance: PwC, KPMG

UN Sustainable Development Goals

• 7
• 13

CIMB's value creation framework illustrates the alignment of critical business dimensions with seven selected sustainable development goals (SDGs), foundational to our sustainability agenda.

Sustainable Products & Innovation

• Sustainability-Linked Financing (SLF) for SMEs
• Electric Vehicle (EV) financing solutions
• Sustainable Living Home Solutions
• Green Renovation-i Financing

Awards & Recognition

• Platinum winner for the “Excellence Awards - Companies with More Than RM10 Billion in Market Capitalisation” at the National Annual Corporate Report Awards (NACRA) 2023
• Ranked 12/150 among Financial Institutions, and Top for Palm Oil for the strength and implementation of our commitments on our Deforestation and Human Rights Policies by Forest 500
• Ranked seventh worldwide in the 2023 Financial System Benchmark