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Name of Executives | Incentive Type | KPIs |
---|---|---|
Chief Executive Officers
Country CEOs for Malaysia, Indonesia, Singapore, Thailand and Cambodia as follow:
Dato’ Abdul Rahman Ahmad Group CEO / CEO CIMB Bank
Lani Darmawan President Director & CEO, CIMB Niaga
Victor Lee Meng Teck CEO, CIMB Singapore
Paul Wong Chee Kin, President & CEO, CIMB Thai
Bun Yin CEO, CIMB Cambodia |
Monetary |
Emission reduction
KPI to reduce Scope 1 and Scope 2 emissions in 2022 compared against our 2019 baseline. |
Group Risk - Chief Risk Officer Vera Handajani |
Monetary | Emission reduction
Implementation of a flood risk assessment pilot on Malaysia’s mortgage book |
Business Unit Managers
Group Consumer Banking Group Wholesale Banking Group Commercial Banking |
Monetary | Emission reduction
Green financing mobilised for retail and non-retail clients. |
Alliance | Our Involvement | Is the organisation’s climate position aligned with the aim and ambition of the Paris Agreement? |
---|---|---|
International Chamber of Commerce (ICC) Sustainable Trade Financing Working Group |
We are an active member of the ICC Sustainable Trade Finance Working Group, an initiative that was set up in 2016 to develop best practice standards for sustainable trade. | Yes. The ICC Centenary Declaration recognises the escalating climate emergency and wholly endorses the findings of the Intergovernmental Panel on Climate Change (IPCC) Special Report on Global Warming of 1.5°C. Learn more here. |
Net Zero Banking Alliance (NZBA) |
We are the first ASEAN bank to join the NZBA, which forms part of the Glasgow Financial Alliance for Net Zero (GFANZ). Members of NZBA are committed to aligning their investments and lending with Net Zero emissions by 2050. The alliance works to reinforce, accelerate and support the implementation of decarbonisation strategies, providing an internationally coherent framework and guidelines, supported by peer learning. | Yes. Members of NZBA are committed to aligning their investments and lending with Net Zero emissions by 2050. Learn more here. |
United Nations Environment Programme Finance Initiative: Principles of Responsible Banking | We are one of the Founding Signatories of the Principles for Responsible Banking, committing to strategically align its business with the UN’s Sustainable Development Goals and the Paris Agreement on Climate Change. As a signatory of the Principles for Responsible Banking, CIMB joins a coalition of 142 banks worldwide, representing over 41% of global banking assets, committed to play a crucial role towards achieving a sustainable future. | Yes. As Founding Signatories of the Principles for Responsible Banking, committing to strategically align its business with the UN’s Sustainable Development Goals and the Paris Agreement on Climate Change. Learn more here. |
United Nations Global Compact (UNGC) | We are a participant of the United Nations Global Compact (UNGC) and a member of the Malaysia network. Launched in 2000, the UNGC is a leading voluntary initiative that encourages global businesses to adopt sustainable and socially responsible policies based on ten principles covering human rights, labour, the environment and anti-corruption. | Yes. UNGC’s ambition is to accelerate and scale the global collective impact of business by upholding the Ten Principles and delivering the SDGs through accountable companies and ecosystems that enable change. Learn more here. |
CEO Action Network (CAN) | We co-founded the CEO Action Network (CAN) with our partner, IMPACTO, in 2020 to create a closed-door peer-to-peer informal network of CEOs and board members committed to driving sustainable action in corporate Malaysia. With more than 70 members from over 20 critical sectors, CAN aspires to catalyse its members and the broader economy towards proactively shaping future-ready and ESG-integrated business models and ecosystems. | No. There is no mention of the organisation being aligned to the Paris Agreement. However CAN was formed to create a favourable ecosystem for businesses and sustainable development in Malaysia in support of the Malaysian government’s approach which emphasises a ‘Whole of Society’ approach to address the climate emergency. Learn more here. |
Joint Committee on Climate Change (JC3) | We play an active role in the Joint Committee on Climate Change (JC3), co-chaired by Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC). JC3 works to mobilise collective action in Malaysia’s financial sector to promote climate resilience both within the sector and in the wider economy. The inputs, insights, and recommendations arising from JC3 are used to shape sustainability policies and regulations set by BNM and the SC. Currently, CIMB co-chairs the JC3 Subcommittee on Governance and Disclosure. | Yes. BNM’s climate strategies both contribute to, and are informed by, Malaysia’s national strategies to meet national commitments made under the Paris Agreement 2015. BNM's approach to climate risk is supported by six tracks of BNM's key functions. Learn more here. |
Value Based Intermediation (VBI) | We are strong advocates of BNM’s Value-Based Intermediation (VBI), which aims to deliver the intended outcomes of Shariah through practices, conduct and offerings that generate positive and sustainable value for the economy, community, and environment, and are consistent with the commitment to benefitting shareholders’ sustainable returns and long-term interests. CIMB Islamic is currently part of the sub-working group for the VBI Financing and Investment Impact Assessment Framework (VBIAF) Sectoral Guide on Agriculture, Forestry and Fishing.
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Yes. BNM’s climate strategies both contribute to, and are informed by, Malaysia’s national strategies to meet national commitments made under the Paris Agreement 2015. BNM's approach to climate risk is supported by six tracks of BNM's key functions. Learn more here. |
Guiding Principle | Our Approach |
---|---|
Map against the International Standard Industrial Classification of All Economic Activities (ISIC) and define our boundary |
Before performing any measurement or estimation, we map the internal sector codes of our clients against the ISIC. We then identify which ISIC codes should be included in the boundary of our financed emissions. Generally, only clients operating in the upstream and mid-stream segments of their sectors are included, in line with current market practices and guidance, including the Science Based Targets initiative's (SBTi) Financial Sector Science-Based Targets Guidance. |
Focus efforts on the largest exposures |
For the non-retail segment, we focus on assessing the top 70% of our clients (based on principal balance) within each identified sector. This ensures that we allocate our resources where they matter most. For these clients, we use the highest data quality possible to derive their emissions. The remaining 30%, which are usually made up of small exposures, are estimated using financial data, where available. For the retail segment (i.e., mortgages and hire purchases), 100% of the book is estimated using a standardised approach for the highest data quality |
Strive to use data of the highest quality |
We strive to capture clients’ self-reported emissions, where possible. This ensures that the data we use is as accurate as possible. Where self-reported data is not available, we use proxies such as physical activity data (e.g., metric tonnes of steel produced) or revenue/ assets. These proxies are used to calculate estimated emissions using industry average emission factors. The average PCAF data quality score for each sector is disclosed alongside the emissions data for transparency. |
Leverage PCAF database of emission factors | We rely on emission factors provided in the PCAF web-based emission factors database , which is only accessible to PCAF members, to estimate the emissions of our clients in a given sector. If an emission factor is not available on PCAF, we identify an alternative factor from scientific research papers, government databases and other credible sources. |
Extrapolate to estimate emissions for remaining clients | In the absence of financial and physical activity data (especially for private companies and SMEs), we apply an internal extrapolation approach to estimate the emissions for the remaining clients, by applying the average financed emissions intensity of clients for which we have data within the same sector. |