CIMB sets out 2030 climate targets for O&G and property portfolios

The bank will stop financing new upstream oil fields beginning January 2025.

Malaysia’s CIMB Group has set 2030 climate targets for its oil and gas and real estate portfolios.

This makes CIMB the first Malaysian banks to set decarbonisation targets for “high-emitting sectors” which include thermal coal mining, cement, palm oil, and power.

“These interim targets demonstrate our accountability and reinforce our commitment to facilitating a just transition across ASEAN,” said Gurdip Singh Sidhu, CEO of CIMB Malaysia and CIMB Bank. 

“By breaking down our long-term goal into actionable and measurable milestones, we are paving the way for tangible progress. Whilst we implement proactive measures to address climate risks in our portfolio and promote sustainable finance practices, CIMB remains committed to support and empower our clients in transitioning to more sustainable business practices,” Sidhu said.

Starting 1 January 2025, the Group will also cease new financing specifically for new upstream oil fields approved for development post 2021. 

CIMB had previously published a whitepaper detailing its decarbonisation plans, and delineating sector-specific pathways and immediate strategies for all six sectors– which collectively accounts for 60% of the Group’s financing portfolio emissions as of 2023.