24 March 2025
Kuala Lumpur: CIMB Bank Berhad (“CIMB” or “the Bank”) has entered into a Memorandum of Understanding (“MoU”) with Wild Asia Sdn Bhd (“Wild Asia”) to drive the transition toward more sustainable practices in the palm oil sector. The partnership aims to strengthen supply chain transparency and uphold sustainability standards by working closely with CIMB’s clients and industry stakeholders through the Wild Asia’s Small Producer Inclusivity & Resilience Alliance Programme ("SPIRAL" or the “Programme”). By facilitating credible certification for mills, their supply chains and independent producers, which include smallholders, small growers and estates, it aims to drive greater accountability and responsible sourcing practices across the industry.
Through this Programme, independent producers will be able to gain better market access and improve their livelihoods while supporting the broader transition to nature-positive sustainable palm oil production. This can be achieved by reducing carbon intensity, measuring and managing greenhouse gas emissions, and adopting regenerative agricultural practices to enhance yields with minimal environmental impact.
Luanne Sieh, Group Chief Sustainability Officer, CIMB Group said, “We are pleased to partner with Wild Asia to drive meaningful change in the palm oil industry from the ground up. Sustainability in this sector goes beyond reducing environmental impact – it is also about strengthening livelihoods and creating long-term economic opportunities throughout the value chain, especially for smallholders who form a large part of the ecosystem. Through close collaboration with Wild Asia, our clients, and industry stakeholders, we are committed to shaping a more responsible and inclusive palm oil ecosystem."
CIMB will collaborate with Wild Asia to explore value added services to CIMB’s palm oil customers to accelerate the sustainability journey of their supply chain and potentially co-create sustainable finance solutions. These offerings are tailored to the needs of the palm oil sector, offering critical support to foster long-term resilience in the face of evolving environmental regulations and market demands.
Dr. Reza Azmi, Founder and Executive Director of Wild Asia, stated, "Our on-ground initiatives have delivered tangible results, proving that inclusive palm oil production is achievable. We’ve also demonstrated that by adopting regenerative practices, oil palm can serve as a long‐term carbon sink. With SPIRAL Partners leading the charge, we are poised to scale these efforts across the industry—paving the way for thriving communities, prosperous businesses, and a healthier planet."
This MoU also aligns with CIMB’s broader commitment to achieving Net Zero by 2050. In 2024, CIMB has set a target to reduce emissions intensity across its entire palm oil portfolio by 16%, from 1.81 in 2022 to 1.52 tCO2e/tCPO by 2030. This goal, underpinned by the Science-Based Targets Initiative (SBTi) and the Forest, Land, and Agriculture (FLAG) guidance, reflects CIMB’s ongoing dedication to sustainable practices throughout the palm oil value chain.
Luanne Sieh added, "This partnership is an example of how collaboration across the value chain can drive meaningful change. As we work with our clients to support real economy decarbonisation, CIMB remains committed to ensuring a just transition to a low-carbon future."
CIMB was also recently ranked first amongst the most influential financial institutions on sustainability on the Financial System Benchmark by the World Benchmarking Alliance, moving up three spots from the inaugural benchmark in 2022. This second iteration of the Benchmark measured 400 FI’s contributions to global goals, such as the UN Sustainable Development Goals and the Paris Agreement and ranked their efforts towards a just and sustainable economy.
