CIMB Group Holdings Bhd · MYX:CIMB
CIMB Group Holdings Bhd — ESG Presentation (September 2023)
25 slides from CIMB Group Holdings Bhd's sustainability presentation, Sep 12, 2023
Slide 1: Sustainability at CIMB: ESG Corporate Day
SUSTAINABILITY AT CIMB ESG Corporate Day 12 September 2023 MOVING FORWARD WITH YOU Proprietary to CIMB Proprietary to CIMB
Slide 2: Our Sustainability Journey and Progress
OUR SUSTAINABILITY JOURNEY AND PROGRESS By Luanne Sieh, Group Chief Sustainability Officer [#] Proprietary to CIMB 2
Slide 3: Our Sustainability Roadmap
OUR SUSTAINABILITY ROADMAP Pathway to achieving our vision THE GROUP OUR CLIENTS SOCIETY GOVERNANCE AND RISK Sustainable Sustainable Business - Risk Corporate Social Action Responsibility How we govern and report sustainability How we generate business profits in a risks at CIMB, including setting t
Slide 4: Our Progress in the Past Year
OUR PROGRESS IN THE PAST YEAR Moving beyond commitments, towards impact Be a Sustainability Leader in ASEAN S&P Global Corporate Sustainability Assessment (for Dow Jones Sustainability Index) Top Quartile by 2024 Achieved 80th percentile Climate Change Responsible Banking Social Impact No financing
Slide 5: We Have Steadily Improved Across Key Indicators
WE HAVE STEADILY IMPROVED ACROSS KEY INDICATORS Corporate Sustainability Assessment Financial Percentile Rank Percentile MSCI Rating SUSBA Score Forest 500 ESG Risk Rating Year (Max. 100) Rank (Max. 10) (Max. 70) (Max. 100) (Lower is better) 2017 19th 31 42nd A 5.0 15 5 N/A 2018 51st 43 58th A 5.0 2
Slide 6: Path to Net Zero Scope 1 and 2 by 2030
PATH TO NET ZERO SCOPE 1 AND 2 BY 2030 Our four levers and roadmap* GHG Emissions (Scope 1 & 2) Projected Reduction based on Lever 1 – 4 Initiatives Long Term Business Energy Audit & Energy Efficiency Savings 1 Changes Impact from Work from Home (WFH) & Reduced Mobility 2 Avoid & Reduce Energy Consu
Slide 7: Internal Carbon Price
PATH TO NET ZERO SCOPE 1 AND 2 BY 2030 Internal carbon price The carbon fee collected will A cap of absolute GHG be used to fund carbon emission for each country An internal carbon fee is offsets, renewable energy (and division) based on the applied per tonne of GHG credits (RECs) purchase Group’s e
Slide 8: Path to Net Zero Scope 3 by 2050: Our Strategy
PATH TO NET ZERO SCOPE 3 BY 2050 Our strategy SCOPE MEASURE SET TARGETS STRATEGISE IMPLEMENT EVALUATE COMMUNICATE Undertake Establish Select the Develop a Execute the Periodically Keep stakeholders heatmapping & financed reference transition strategy transition strategy assess risk informed about sc
Slide 9: Cement Transition Plan
PATH TO NET ZERO SCOPE 3 BY 2050 Cement transition plan 01 INDUSTRY OVERVIEW • Cement is an essential building material for the construction sector. The cement industry plays an important role in the developing world. It is essential for economic development and poverty reduction. • However, the cem
Slide 10: Cement Transition Plan: Our Approach to Decarbonise
PATH TO NET ZERO SCOPE 3 BY 2050 Cement transition plan 04 OUR APPROACH TO DECARBONISE • All larger cement clients have Net Zero targets, some are by 2050 and some by 2060. • However, clarity for near-term 2030 target, which aligns with IEA NZE 2050 is still lacking. • Near-term action is needed to
Slide 11: Thermal Coal Mining Transition Plan
PATH TO NET ZERO SCOPE 3 BY 2050 Thermal coal mining transition plan 01 INDUSTRY OVERVIEW • Coal is the largest source of electricity generation and single source of CO2 emissions. Nearly two-thirds of coal global production is used for electricity generation, with the industrial sector making up an
Slide 12: Approach to Phase Out Thermal Coal Mining
PATH TO NET ZERO SCOPE 3 BY 2050 Thermal coal mining transition plan 03 OUR APPROACH TO PHASE OUT THERMAL COAL MINING • Enhance progressively the CIMB Group’s Coal Sector Guide. Dependencies Existing1 Prohibition of any forms of asset-level or general corporate financing of: Government Policies • Ne
Slide 13: Progress on Our Commitments
PROGRESS ON OUR COMMITMENTS NO DEFORESTATION, NO HIGH SUSTAINABILITY RISK PEAT, NO EXPLOITATION SECTOR GUIDES Rolled out NDPE policy across the region Palm Oil Conducted in-depth engagement with 8 customers from Forestry palm oil and forestry sectors on NDPE requirements between September 2022 and S
Slide 14: Sustainable Finance: Opportunities
SUSTAINABLE FINANCE: OPPORTUNITIES By Tania Davina Yoganathan, Head, Sustainability Malaysia [#] Proprietary to CIMB 14
Slide 15: Sustainable Finance at a Glance
SUSTAINABLE FINANCE AT A GLANCE Corporates SMEs Individuals Sovereigns/ GLCs, Large corporates and MNCs Micro sized enterprises up to mid-sized companies Retail banking clients and individuals • Financing and supporting our clients as they • Guiding and empowering clients on their • Providing access
Slide 16: Green, Social, Sustainable Impact Products and Services Highlights
GREEN, SOCIAL, SUSTAINABLE IMPACT PRODUCTS AND SERVICES HIGHLIGHTS Driven by innovation First in Malaysia: Launched Sustainability-Linked First in Malaysia: Complete value proposition for Treasury Programme Sustainability-linked Financing for SMEs Joint lead manager of a RM2.0 billion sustainability
Slide 17: Sustainability-Linked Financing (SLF) for SMEs
SUSTAINABILITY-LINKED FINANCING (SLF) FOR SMES To support and catalyse the transition of Malaysian SMEs towards a green economy Open to all Commercial Banking and SME customers Allocation of RM3 billion Attractive rebates up to 0.5% p.a. based on emissions reduction Rebate availability up to 7 years
Slide 18: SLF for SMEs: Step-by-Step Journey
SUSTAINABILITY-LINKED FINANCING (SLF) FOR SMES Step-by-step journey 1R Complimentary 2 Measure 3 Take 4 Obtain 5 Verify Coaching Emissions Action to Reduce Financing for Emissions REWARDS! Emissions Transition Reduction Strengthen sustainability A wide range of Financing with CIMB via Measure emissi
Slide 19: Enhanced Sustainable Finance Target RM100 bil
ENHANCED SUSTAINABLE FINANCE TARGET Our commitment to mobilise Green, Social, Sustainable Impact Products and Services by 2024 RM 30 bil RM 60 bil RM 100 bil Announced: 2021 Announced: 2022 Announced: 2023 Target met: 2022 Target met: 2023 Including: • Retail financing Published Sustainable Finance
Slide 20: Embedding Sustainability Culture
EMBEDDING SUSTAINABILITY CULTURE By Luanne Sieh, Group Chief Sustainability Officer [#] Proprietary to CIMB 20
Slide 21: Sustainability Talent Programmes
SUSTAINABILITY TALENT PROGRAMMES Developing a sustainability talent pipeline while strengthening internal sustainability culture Key Initiatives Description • Two-year talent programme with direct entry into Group Sustainability or sustainability related functions in CIMB Sustainability • Rotations
Slide 22: Enhanced Governance Structure
ENHANCED GOVERNANCE STRUCTURE Direct reporting Functional Reporting Integrated Sustainability Operating Model Group Board of Directors Group Group Nomination Board Risk and Group Transformation Committee Sustainability Group Chief Executive Officer Audit Committee and Remuneration Compliance [Chair:
Slide 23: Concluding Thoughts
CONCLUDING THOUGHTS By Teoh Su Yin, Senior Independent Director [#] Proprietary to CIMB 23
Slide 24: Concluding Thoughts: Sustainability Culture Embedded Regionally
CONCLUDING THOUGHTS Sustainability culture embedded within CIMB regionally Board Senior Management All Levels Increased sustainability- Senior management Sustainability embedded in committee engagement incentivised scorecards and KPIs Sustainability embedded in Localisation across the region Institu
Slide 25: Contact us at sustainability@cimb.com
Contact us at sustainability@cimb.com Proprietary to CIMB
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