KUALA LUMPUR: CIMB Group Holdings Bhd has been ranked fourth in terms of environmental, social and governance (ESG) performance out of 155 most influential banks globally.
CIMB attained this ranking in the inaugural 2022 Financial System Benchmark by the World Benchmarking Alliance (WBA) announced at COP27 in Egypt recently.
CIMB also placed seventh out of 400 financial institutions (FIs) globally including insurance companies, asset owners and asset managers. It is Malaysia’s second largest financial services provider by assets.
The benchmark encompasses FIs that are publicly listed, privately held and state-owned. The benchmark aims to measure how the world’s 400 most influential FIs are transforming the financial system for a more just and sustainable future.
The WBA is an international non-profit organisation that publishes benchmarks on how the world’s 2,000 most influential companies contribute to tackling the biggest sustainability challenges of our time.
CIMB was recognised as a top performer in the area of governance and strategy, and performed well in the areas of respecting planetary boundaries and adhering to societal conventions.
Some practices noted in the benchmark include CIMB’s 2050 Net Zero greenhouse gas emissions target and time-bound sustainable finance target by 2024, as well as publicly available policies and disclosures regarding human rights, emissions, portfolio exposures and client engagement.
CIMB Group CEO Abdul Rahman Ahmad said this recognition underscores the bank’s continued commitment and progress in driving the sustainability agenda across the Asean region.
“In line with our aspirations of becoming an Asean sustainability leader, we look forward to continue raising the bar in creating greater positive impacts in collaboration with our clients, customers and other stakeholders.”
CIMB recently doubled its sustainable finance target to RM60 billion by 2024 under the group’s green, social, sustainable impact products and services framework, as it was able to achieve its RM30 billion target two years ahead of schedule.
In addition, the group has established its baseline Scope 3 financed emissions in its Malaysia and Indonesia businesses, the two largest markets for the group.
With the baseline in place, CIMB has set its first round of emission reduction targets for two sectors – thermal coal mining and cement – becoming the first Malaysian bank and second Asean bank to publish such concrete targets in alignment with globally-recognised 1.5°C climate scenarios.