According to the World Economic Forum, a staggering $44 trillion of economic value generation—over half the world’s total GDP—is moderately or highly dependent on nature and its services. This makes it evident that healthy ecosystems are crucial for long-term financial stability. The interconnectedness of climate and nature is undeniable. Banks must proactively identify and mitigate nature-related risks while also seizing opportunities to support biodiversity. A just transition is essential for ensuring equitable and inclusive growth.
As a leading universal banking group in ASEAN, CIMB is committed to building a sustainable organization that benefits both customers and the planet. Southeast Asia is a global hotspot of biodiversity, renowned for its vast and diverse coral reefs, rainforests, mangrove ecosystems, and unique wildlife. This region is home to a staggering variety of species, many of which are found nowhere else on Earth. We recognize the critical role of biodiversity in maintaining healthy ecosystems and supporting human well-being. To contribute to its protection, conservation, and restoration, CIMB is committed to safeguarding and enhancing biodiversity and ecosystem integrity across our operations and value chain. We understand the threats posed by the overexploitation of natural resources and aim to play a positive role in their preservation.
Failing to consider nature-related risks in our financing could expose us to reputational damage and significant financial risks, including physical, transition, and systemic risks. Investing in measures to protect the biodiversity of Southeast Asia’s forests and seas could produce benefits valued at more than $2.19 trillion a year - while slowing down climate change. Thus, CIMB's long-term approach involves managing potential negative impacts while delivering products and services that positively impact the environment and society. This balanced approach ensures both risk management and positive societal contributions.
However, developing a strategic position and approach to Biodiversity and Nature issues require careful consideration. While we aim to establish ambitious targets, it is essential to ensure that they are feasible and capable of driving meaningful change. The scientific understanding of these issues is still developing. Data limitations, including the challenges of accurately measuring the impacts of both our operations and our clients' actions, as well as the effectiveness of our overall mitigation and resilience efforts, hinder progress. Nonetheless, we are working towards enhancing our understanding and addressing these challenges.
