CIMB Group Holdings Bhd · MYX:CIMB
CIMB Group Holdings Bhd — ESG Presentation (September 2022)
33 slides from CIMB Group Holdings Bhd's sustainability presentation, Sep 22, 2022
Slide 1: Sustainability at CIMB
SUSTAINABILITY AT CIMB 22 September 2022 FORWARD Sustainability 1
Slide 2: Agenda
AGENDA 1 CIMB’s Sustainability Journey and Progress 2 Sustainable Finance Opportunities 3 Responsible Banking 4 Towards 2050 Net Zero 5 Perspectives from the Board 6 Q&A 2
Slide 3: CIMB's Sustainability Journey and Overview
1 CIMB’S SUSTAINABILITY JOURNEY AND OVERVIEW Gurdip Singh Sidhu [#] Group Chief Sustainability Officer 3 3
Slide 4: Sustainability Investor Day 2021 Recap
SUSTAINABILITY INVESTOR DAY 2021 Recap Shared our sustainability strategy and commitments: 1 Achieve net zero operational GHG emissions (Scope 1 & 2) by 2030 and Net Zero GHG by 2050 2 No financing of new coal and to exit coal by 2040 and No Deforestation, No Peat, No Exploitation (NDPE) 3 Mobilise
Slide 5: CIMB at a Glance
CIMB AT A GLANCE Our Purpose To build a high performing sustainable organisation to help advance customers and society One of ASEAN’s Leading Among the largest Asia- One of ASEAN’s Largest World Leader in Islamic Banking Groups based Investment Banks Retail Branch Networks Finance 5
Slide 6: Our Sustainability Journey
S&P Global Corporate OUR SUSTAINABILITY JOURNEY Sustainability Assessment 2018 Sustainability Strategy Formulation First round of stakeholder engagements to identify CIMB's material matters 19th Embedment of sustainability into core business strategy percentile 2019 Establishing Sustainability F
Slide 7: We Effect the Greatest Impact in the Work We Do with Our Clients
WE EFFECT THE GREATEST IMPACT IN THE WORK WE DO WITH OUR CLIENTS THE GROUP OUR CLIENTS SOCIETY Sustainable Sustainable Business Corporate Social How we govern and report sustainability Action Responsibility risks at CIMB, including setting targets and How we generate tolerance levels, and how we org
Slide 8: Summary of CIMB's Sustainability Commitments
SUMMARY OF CIMB’S SUSTAINABILITY COMMITMENTS Be a sustainability leader in ASEAN S&P Global Corporate Sustainability Assessment (for Dow Jones Sustainability Index) by 2024 Achieved 79th percentile in 2021 Climate Change Responsible Banking Social Impact Section 3 Section 4 No financing of new coal
Slide 9: Sustainable Finance Opportunities
2 SUSTAINABLE FINANCE OPPORTUNITIES Gurdip Singh Sidhu [#] Group Chief Sustainability Officer 9 9
Slide 10: Sustainable Finance at a Glance
SUSTAINABLE FINANCE AT A GLANCE Corporates SMEs Individuals Sovereigns / GLCs, Large corporates and Micro sized enterprises up to mid-sized Consumer banking clients and individuals MNCs companies Financing and supporting our clients as Guiding and empowering clients on their Access and inclusi
Slide 11: Sustainable Finance Highlights in Last 12 Months
SUSTAINABLE FINANCE HIGHLIGHTS IN LAST 12 MONTHS Corporates >RM1.5 billion Sovereigns / GLCs, Large corporates and Sustainability-linked MNCs financing accepted by clients to date, out of the RM7.5 January 2022 billion committed by 2026 October 2021 First Malaysian bank to Partnerships in 2022 RM2.4
Slide 12: Sustainable Finance Highlights in Last 12 Months
SUSTAINABLE FINANCE HIGHLIGHTS IN LAST 12 MONTHS SMEs Individuals Micro sized enterprises up to mid-sized companies Consumer banking clients and individuals First in ASEAN to offer a Sustainable Term Investment >91,000 new EcoSave-i accounts Account-i (TIA-i), a low-risk Shariah-compliant purpose- o
Slide 13: Enhanced Sustainable Financing Target
ENHANCED SUSTAINABLE FINANCING TARGET Current New RM30b Sustainable Finance MobilisingRM60 billion towards Target met as of June 2022 Sustainable Finance by 2024 Includes: Offering expanded to include Sustainable • Retail financing Treasury solutions, as we work towards • Corporate and Commercial fi
Slide 14: Responsible Banking
3 RESPONSIBLE BANKING Luanne Sieh [#] Head of Group Sustainability 14 14
Slide 15: Responsible Banking at a Glance
RESPONSIBLE BANKING AT A GLANCE • The Group Sustainable Financing Policy (GSFP) has been implemented across the region • GSFP is applicable to both financing and investment banking deals for CIMB’s clients • Require sustainability due diligence to be undertaken on non-SME clients prior to final appr
Slide 16: Progress and Highlights in Responsible Banking
PROGRESS AND HIGHLIGHTS IN RESPONSIBLE BANKING Published our Sustainable Finance Framework, NDPE implemented in Malaysia and incorporated into laying out CIMB's sector policies for high Malaysia's Palm Oil and Forestry sector guides since sustainability risk sectors. Expectations expanded to Jan 202
Slide 17: Implementing Key Policies in Respecting Human Rights and Promoting Diversity & Inclusion
IMPLEMENTING KEY POLICIES IN RESPECTING HUMAN RIGHTS AND PROMOTING DIVERSITY & INCLUSION Group Human Rights Policy Diversity & Inclusion • Lays out our commitments, principles and approaches to • Implementing Group Employee respecting Human Rights Diversity & Inclusion Policy across • Human Rights r
Slide 18: Portfolio Exposure to High Sustainability Risk Sectors
PORTFOLIO EXPOSURE TO HIGH SUSTAINABILITY RISK SECTORS Data at as June 2022 across the Group Palm: 3.08% Forestry: 0.63% Oil and Gas: 2.59% Trading Forestry Extraction Trading 3% 6% 15% 8% Dow nstream 56% Manufacturing 32% Pulp and Support Wood & Paper activities w ood 58% 36% Planting products 62%
Slide 19: Enhanced Sustainability Due Diligence Outcomes
ENHANCED SUSTAINABILITY DUE DILIGENCE OUTCOMES Case summary as at July 2022 Recommended with Not Recommended Recommended with Not Recommended Action Plan (32%) (1%) Action Plan (6%) (0%) Recommended Recommended (67%) (94%) Recommended Recommended with Recommended with Action Plan (5%) Action Plan (6
Slide 20: Towards 2050 Net Zero
4 TOWARDS 2050 NET ZERO Luanne Sieh [#] Head of Group Sustainability 20 20
Slide 21: Our GHG Emissions
OUR GHG EMISSIONS Our commitments: Scope 3 emissions are the bulk • Net zero Scope 1 and 2 by 2030 of our total emissions • Overall Net Zero (including Scope 3) by 2050 • Scope 1 is about 5% of Scope 1 and 2 combined • Scope 3 (financed) emissions for FIs estimated at 700 times of Scope 1, 2 & 3 (ot
Slide 22: Committed to Net Zero Carbon Emissions in Our Own Operations by 2030
WE ARE COMMITTED TO NET ZERO CARBON EMISSIONS IN OUR OWN OPERATIONS BY 2030 On Track Key levers 2022 Key Initiatives Estimated reduction emissions GHG reductions relative to baseline, ‘000 tonnes • Reduced >24,000 sqm of floor spaces from Long Term Business consolidation of head offices in Malaysia
Slide 23: Getting to Net Zero by 2050
GETTING TO NET ZERO BY 2050 Step SCOPE MEASURE SET TARGETS STRATEGISE IMPLEMENT EVALUATE COMMUNICATE Action Undertake Establish Select the Develop a Execute the Periodically Keep heatmapping financed reference board-level transition assess risk stakeholders & scoping to emissions pathways reviewed s
Slide 24: Financed Emissions of CIMB
FINANCED EMISSIONS OF CIMB A baselining of our financed emission was conducted in early 2022 covering the nine carbon intensive sectorsper the UNEP FI Guidelines for Climate Target Setting, i.e. agriculture; aluminium; cement; coal; commercial and residential real estate; iron and steel; oil and gas
Slide 25: Setting of Interim Sector-Specific Climate Targets
SETTING OF INTERIM SECTOR-SPECIFIC CLIMATE TARGETS Target Setting Sep 2022 Q1 - Q4 2023 Planned actions and milestones to meet Aluminum Agriculture Oil and gas targets will be Thermal published within 12 Coal Iron and steel Power Transport* months of target generation announcements, Cement including
Slide 26: CIMB's 2030 Climate Target for Thermal Coal Mining
CIMB’S 2030 CLIMATE TARGET FOR THERMAL COAL MINING Overall Thermal Coal Mining Exposure with 2030 & 2040 Phase- Exposure Target Out Targets • Halve thermal coal mining sector exposure by 2030 2,500 0.70% from 2021 (base year) 0.61% 0.57% 0.60% Scenario 2,000 0.46% • IEA Net Zero Emissions (NZE) 2050
Slide 27: CIMB's 2030 Climate Target for Cement
CIMB’S 2030 CLIMATE TARGET FOR CEMENT 0.80 Emission Intensity Target 0.72 2021 Global Benchmark: 0.60 • Reduction of cement sector’s emission intensity by 36% 0.70 to 0.46 tCO2e/t cement by 2030 from 2021 (tonne CO2e/tonne of cement produced) • Target set using Sectoral Decarbonisation Approach Emis
Slide 28: Climate Action
CLIMATE ACTION Levers Towards our Net Zero Financed Emissions Goal Reduce Footprint Increase Handprint Exclude financing of the most Finance transition, low carbon Finance carbon negative assets Transactions harmful activities and and carbon neutral activities and and projects Projects / technologie
Slide 29: Our Plans Moving Forward
OUR PLANS MOVING FORWARD 2019 - 2021 2022 Our Plan for End-2022 to 2024 No new thermal coal financing and phase Establish a dedicated Climate Risk • Continual build-out of CIMB’s financed emissions baseline out by 2040 function within Group Risk and targets for the remaining sectors Commit to Net Ze
Slide 30: Sustainability from the Board Perspective
5 SUSTAINABILITY FROM THE BOARD PERSPECTIVE Teoh Su Yin [#] Chairperson of the Group Sustainability and Governance Committee and Senior Independent Director of CIMB Group Holdings Berhad 30 30
Slide 31: How We Govern and Operationalise Sustainability at CIMB
HOW WE GOVERN AND OPERATIONALISE SUSTAINABILITY AT CIMB Group Board of Directors Group Group Group Transformation Nomination Board Risk Group Chief Executive Council (GTC) Sustainability Audit and and Officer and Committee Remuneration Compliance Governance Committee Committee Committee Group Chief
Slide 32: Conclusion
CONCLUSION 1 • Strong trajectory across our key targets • Revised upwards sustainable financing targets from RM30 bil to RM60 bil • Published sector policies and rolled out Human Rights and NDPE policies 2 • Early mover in ASEAN to set Paris-aligned sector pathways • Thermal coal and cement sector p
Slide 33: Thank You
THANK YOU [#] 33 33
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