Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Investor Day (July 2024)
38 slides from Cimb Group Holdings Bhd's investor day presentation, Jul 3, 2024
Slide 1: Sustainability Investor Day 2024
Sustainability Investor Day 2024 The Cooler Earth Sustainability Series 3 July 2024 MOVING FORWARD WITH YOU Proprietary to CIMB
Slide 2: Agenda
Agenda Items Time Presenter Khairul Rifaie Progress Overview 5.00 p.m. Group Chief Financial Officer Material Matters • Climate Change Luanne Sieh Group Chief Sustainability Officer • Biodiversity 5.05 p.m. & • Human Rights Tania Davina Yoganathan Head of Sustainability Malaysia • Financial Inclusi
Slide 3: Progress Overview
Progress Overview By Khairul Rifaie, Group Chief Financial Officer [#] Proprietary to CIMB 3
Slide 4: Sustainability is an integral part of CIMB's corporate strategy
Sustainability is an integral part of CIMB’s corporate strategy VISION To be the leading focused ASEAN bank PURPOSE To build a high performing sustainable organisation to help advance customers and society Strategic Themes for 2024 1 Delivering Sustainable a) Rejuvenate NII & NIM b) NOII Growth c) C
Slide 5: F23+ financial and non-financial targets
F23+ financial and non-financial targets Indicators Forward23+ Ambition 2024 Guidance Top Quartile ROE 11.0-11.5% (11.5-12.5%) Cost to income 45% <46.9% CET 1 13.5% ≥13.5% (CIMB Group) Net Promoter Score Top Quartile (25%) Top Quartile (25%) S&P Global Corporate Top Quartile (25%) Top Quartile (25%)
Slide 6: Our sustainability journey
Our sustainability journey We have progressed from 19th to 88th percentile on the S&P Global Corporate Sustainability Assessment (CSA) over five years S&P Global CSA Percentile 2023 Enhancing Sustainability Impact • Increased sustainable finance target1; published interim climate targets for 4 secto
Slide 7: Moving beyond commitments, towards impact
Moving beyond commitments, towards impact In 2023, we maintained strong momentum on our progress against our headline targets Be a Sustainability Leader in ASEAN S&P Global Corporate Sustainability Assessment (for Dow Jones Sustainability Index) Top Quartile by 2024 Achieved 88th percentile Climate
Slide 8: Climate Change
Climate Change By Luanne Sieh, Group Chief Sustainability Officer [#] Proprietary to CIMB 8
Slide 9: CIMB is committed to carbon neutrality by 2030 and Net Zero GHG by 2050
CIMB is committed to carbon neutrality by 2030 (net zero GHG Scope 1 and 2 emissions in our operations) and overall Net Zero GHG by 2050 Scope 1 emissions Scope 2 emissions Scope 3 emissions Direct GHG emissions Indirect GHG emissions Indirect emissions that occur in the value chain of the company,
Slide 10: Path to operational net zero by 2030
Scope 1 & 2 Path to operational net zero by 2030 Projected Net GHG Emissions (Scope 1 & 2) Towards Unraveling the Right Decarbonisation Levers for Operational Net Zero Target Malaysia 110,000 110,000 100,000 100,000 90,000 90,000 Scope 2 (Market-based), tCO2e 80,000 80,000 70,000 70,000 covering Sco
Slide 11: Operational sustainability initiatives
Scope 1 & 2 Operational sustainability initiatives Piloting Net Zero Carbon building for CIMB IOI City Mall branch attains Subscribed to DHL Express’ Wisma CIMB GreenRE Silver certification GoGreen Plus service • To achieve our 2030 net zero target for scopes 1 • Less than a year after opening its d
Slide 12: We have now completed our 2030 climate target setting exercise
Scope 3 – Category 15 We have now completed our 2030 climate target setting exercise Scan me to 2021 2023 access First ASEAN bank to join the Net-Zero First bank globally to set target for palm oil CIMB’s Banking Alliance (NZBA) and first in Malaysia for power Whitepaper Version 2.0 First Malaysian
Slide 13: We have set 2030 climate targets for sectors covering 60% of financed emissions
Scope 3 – Category 15 We have set 2030 climate targets for sectors which cover 60% of our total financed emissions1 and 47% of our portfolio2 Utilities 22.8% 2.7% Deep Dive Real Estate 17.3% 37.5% Agriculture 12.4% • 43% from retail mortgages 4.1% • 57% from non-retail Transport 9.8% 7.1% 3.8% Deep
Slide 14: Principles that served as guardrails across the target-setting process
Scope Module 1: 3 – Zero Net Category Strategy15 Principles that served as guardrails for CIMB across the target-setting process • CIMB as a responsible financial intermediary has the power to be the catalyst for positive change and to proactively mitigate climate risk • CIMB’s Net Zero by 2050 targ
Slide 15: Six-step approach to determine CIMB's climate targets
Scope 3 – Category 15 Six-step approach to determine CIMB’s climate targets and steer the portfolio towards Net Zero Sector-level emissions baseline and projections Activities required for target setting 1 tCO /sector unit, 2022–2050 2 Current sector 1 Key methodological decisions portfolio Scope of
Slide 16: Summary of CIMB's 2030 Net Zero targets
Scope 3 – Category 15 Summary of CIMB’s 2030 Net Zero targets New addition to Whitepaper v2.0 Coal Cement Palm Oil Power Oil & Gas Real Estate 100% 100% 0.8 600 700 120 117 0.72 2.0 500 600 694 583 100 75% 0.6 0.64 1.5 1.81 1.52 400 500 80 77 0.46 439 400 50% 300 50% 63% 0.4 1.0 272 60 300 200 40 20
Slide 17: Extensive industry engagement was done to ensure our approach remains ambitious yet practical
Scope 3 – Category 15 Extensive industry engagement was done to ensure our approach remains ambitious yet practical for regional implementation “ There are three touchpoints determining whether we can move in the right direction: (1) government regulation; (2) the customers, “ Transitioning to Net Z
Slide 18: Oil & Gas: CIMB's climate target and transition plans
Scope 3 – Category 15 Oil & Gas: CIMB’s climate target and transition plans 16% financed emissions lending intensity reduction by 2030 Oil and Gas Sector Climate Target Industry Overview Financed Emissions Lending Intensity (tCO2e/MYR MM) • Responsible for ~49% of CO2 emissions globally, plus 14% CO
Slide 19: Real Estate: CIMB's climate target and transition plans
Scope 3 – Category 15 Real Estate: CIMB’s climate target and transition plans 34% physical emissions intensity reduction by 2030 Real Estate Sector Net Zero Target Industry Overview Physical emissions intensity (kgCO2e/m2) • Operational emissions from buildings account for ~18% of global emissions -
Slide 20: Our ongoing focus to operationalise our Net Zero targets
Scope 3 – Category 15 Our ongoing focus to operationalise our Net Zero targets Business Risk Client Data and Capability Planning Management Engagement Enablers Building Integrate Net Zero Develop client-level Progressively enhance Develop a central Identify capability gaps target considerations asse
Slide 21: Biodiversity
Biodiversity By Luanne Sieh, Group Chief Sustainability Officer [#] Proprietary to CIMB 21 21
Slide 22: Southeast Asia is home to megadiverse countries and biodiversity hotspots
Southeast Asia is home to megadiverse countries and biodiversity hotspots “ “ Climate and biodiversity are two sides of the same coin – it is vital that we look at them together. Christine Lagarde President of the European Central Bank Host to 3 megadiverse countries1 Home to 4 biodiversity hotspots
Slide 23: Our biodiversity commitment and progress
Our biodiversity commitment and progress 2022 2023 2024 Rolled out No Deforestation, No Peat, Developed Deforestation and Currently developing overarching and No Exploitation (NDPE) Biodiversity Risk Assessment Biodiversity Strategy and commitment1 Roadmap The Deforestation and Biodiversity Risk Ass
Slide 24: Preserving and rehabilitating biodiversity with our partners
Preserving and rehabilitating biodiversity with our partners Protecting Setiu Wetlands Preserving the unique ecosystem Empowering youths to protect Tun ecosystem with WWF of cloud forest with R.E.A.C.H. Sakaran Marine Park with Reef Check Malaysia CIMB Islamic contribution to WWF. Source: CIMB R.E.A
Slide 25: Human Rights
Human Rights By Luanne Sieh, Group Chief Sustainability Officer [#] Proprietary to CIMB 25 25
Slide 26: Our human rights commitment and progress
Our human rights commitment and progress Our Commitments Our Progress In alignment with United Within CIMB Nations Guiding Principles on Business and Human Rights • 542 employees regionally trained in human rights1 • Enhancing our human rights grievance mechanism to • Commitments and approach includ
Slide 27: Financial Inclusion
Financial Inclusion By Tania Davina Yoganathan, Head of Sustainability Malaysia [#] Proprietary to CIMB 27 27
Slide 28: Why do financial inclusion and health matter?
Why do financial inclusion and health matter? What is financial inclusion? What is financial health? “ The provision of suitable, affordable and quality financial services to all segments of society — contributes to a “ “ It is a state in which an individual or business can smoothly manage their cur
Slide 29: Our commitment towards financial inclusion and literacy
Our commitment towards financial inclusion and literacy Financial inclusion trends in Malaysia: Some of our current initiatives: Good access to banking accounts Be$MART financial literacy programme focuses on 96.8% of adults have an active banking account1 students from B40 families Insufficient sav
Slide 30: Advancing our commitments in Malaysia
Advancing our commitments in Malaysia Our objectives: Our 2024 initiatives: • Promote wealth accumulation and protection for vulnerable customers Innovate existing financial • Empowering our vulnerable customers to make informed financial decisions products to improve accessibility for vulnerable cu
Slide 31: Sustainable Finance
Sustainable Finance By Tania Davina Yoganathan, Head of Sustainability Malaysia [#] Proprietary to CIMB 31 31
Slide 32: Green, Social, Sustainable Impact Products and Services (GSSIPS) highlights
Green, Social, Sustainable Impact Products and Services (GSSIPS) highlights FY2023 and YTD 2024 achievements Product Highlights Key Deals First in Malaysia: Complete value proposition for Arranger, dealer, lead manager and bookrunner for Sustainability-linked Financing for SMEs Republic of Indonesia
Slide 33: FY2023 GSSIPS Progress
FY2023 Green, Social, Sustainable Impact Products and Services (GSSIPS) Progress Breakdown by Country 6% CIMB’s Sustainable Finance Progress (RM billion) 14% FY21-FY23: RM86.2 billion Malaysia Target: RM100 billion by 2024 Indonesia 14% Singapore Average YoY growth Thailand ~11% 32.4 66% 26.6 27.2 1
Slide 34: Concluding Thoughts
Concluding Thoughts By Ho Yuet Mee, Independent Director and [#] Group Sustainability and Governance Committee Chair Proprietary to CIMB 34
Slide 35: Board oversight of key issues
Board oversight of key issues Our purpose: To build a high-performing sustainable organisation to help advance customers and society Governance Risk • Market, regulatory and • Net Zero 2050 strategy policy developments and implementation • Strategies, roadmaps, • Climate change and and targets biodi
Slide 36: Concluding remarks
Concluding remarks “embedding Banks in 2030 should be at the forefront of financing the global transition to a low-carbon economy, “ sustainability into their core business models and operations, and actively driving positive environmental and social outcomes. Christiana Figueres Former Executive Se
Slide 37: Join our mailing list to stay up to date
Join our mailing list to stay up to date by emailing us at sustainabilityevents@cimb.com Proprietary to CIMB 37
Slide 38: Contact us at sustainability@cimb.com
Contact us at sustainability@cimb.com Proprietary to CIMB
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