CIMB ranks fourth amongst banks globally in the Inaugural 2022 Financial System Benchmark by World Benchmarking Alliance
16 November 2022
Announced at COP27, CIMB ranks fourth amongst 155 banks globally, and seventh overall amongst the world's 400 most influential financial institutions
Kuala Lumpur: CIMB Group Holdings Berhad (“CIMB” or “the Group”) announced today that it was ranked fourth in terms of ESG performance out of the 155 most influential banks globally in the inaugural 2022 Financial System Benchmark (“the Benchmark”) by the World Benchmarking Alliance (“WBA”). Among all financial institutions (“FIs”), which also includes insurance companies, asset owners and asset managers, CIMB placed seventh out of 400 FIs globally. Announced at COP27 in Egypt recently, the cross-sector and cross-industry Benchmark encompasses FIs that are publicly listed, privately held and state-owned.
The WBA is an international non-profit organisation that publishes publicly available benchmarks on how the world’s 2,000 most influential companies contribute to tackling the biggest sustainability challenges of our time, in line with the Sustainable Development Goals (“SDGs”). The Financial System Benchmark aims to measure how the world's 400 most influential FIs are transforming the financial system for a more just and sustainable future, and encourage action by identifying areas where progress and leadership are possible. The results provide guidance for FIs to improve their impact on people and planet, as measured against global standards and peers.
Across the three measurement areas, CIMB was recognised as a top performer in the area of governance and strategy, and performed well in the areas of respecting planetary boundaries and adhering to societal conventions. Some of the practices noted in the Benchmark include the CIMB’s 2050 Net Zero greenhouse gas (“GHG”) emissions target and time-bound sustainable finance target by 2024, as well as publicly available policies and disclosures regarding human rights, emissions, portfolio exposures and client engagement, amongst others.
Dato’ Abdul Rahman Ahmad, Group CEO of CIMB said, “We are truly honoured to be ranked in the top five banks globally in WBA’s inaugural Financial System Benchmark. As the top rated emerging market and Asia-based bank, this recognition underscores our continued commitment and progress in driving the sustainability agenda across the ASEAN region. As a purpose-driven Group, CIMB understands the critical role of FIs in driving and catalysing the adoption of ESG-aligned practices. In line with our aspiration of becoming an ASEAN sustainability leader, we look forward to continue raising the bar in creating greater positive impacts in collaboration with our clients, customers and other stakeholders across the business ecosystem and the community.”
Most recently, CIMB doubled its sustainable finance target to RM60 billion by 2024 under the Group’s Green, Social, Sustainable Impact Products and Services (“GSSIPS”) Framework, as it was able to achieve its RM30 billion target two years ahead of schedule. In addition, the Group has established its baseline Scope 3 financed emissions in its Malaysia and Indonesia businesses, the two largest markets for the Group.
With the baseline in place, CIMB has set its first round of emission reduction targets for two sectors – thermal coal mining and cement – becoming the first Malaysian bank and second ASEAN bank to publish such concrete targets in alignment with globally recognised 1.5°C climate scenarios. The Group is in the process of augmenting the scope of its financed emissions baseline to cover its other main operating markets, sectors and asset classes by end-2022.
CIMB was a drafting member of the UN United Nations Environment Programme Finance Initiative (“UNEP FI”) Principles for Responsible Banking, is a member of the Collective Commitment to Climate Action (“CCCA”) and Net-Zero Banking Alliance (“NZBA”), and was the first emerging market bank to commit to exiting from coal by 2040.