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We recognise that the global banking industry is continuously evolving, with increasing pressure and expectations from society. Materiality assessment is one of our key approaches to identifying the critical economic, environmental and social matters for our organisation, based on inputs from our stakeholders. We apply the concept of double materiality in our approach, considering both the potential impact of our activities on the environment and society, and the environmental and societal matters that may impact our operations. Our material matters guide us in driving long-term value creation and competitiveness for the Group as a whole. The outcome of the materiality assessment enables us to better understand our impacts, risks and opportunities, and to develop comprehensive management strategies.    

 

During our materiality analysis, we considered interlinkages to avoid unintended consequences and maximise positive synergies. This ensures that progress in one area does not undermine another, while unlocking co-benefits across multiple sustainability goals. For example, addressing climate change and nature together helps prevent trade-offs. By prioritising climate action through waste reduction, resource efficiency and circular economy practices, we not only lower greenhouse gas emissions but also reduce pressure on ecosystems, minimising habitat destruction and biodiversity loss (SDG 13 & SDG 15). An example of avoiding unintended consequences can be found in sustainable finance. If financial institutions focus solely on financing economic growth without considering environmental or social impacts, they risk enabling activities that drive deforestation, pollution or labour exploitation. Instead, by integrating environmental and social factors into decision-making, we ensure that financial support for MSMEs not only drives job creation and economic inclusion, but does so in a way that aligns with broader sustainability objectives. By embedding interlinkages into our strategy, we create more resilient, long-term solutions that drive systemic impact across multiple dimensions. 

 

We conduct an in-depth materiality assessment every four years, with a midpoint review every two years. 

Our materiality assessments are conducted in alignment with the GRI Sustainability Reporting Standards 2021. We refreshed our material matters in 2024. ​

1

IDENTIFICATION

  • We identified a list of 22 potential material topics from various sources, including our 2022 material topics, global trends and standards such as GRI, ISSB, UNEP-FI PRB, S&P Global CSA and stock exchange requirements. 
  • We also conducted a high-level scan of our peers’ material topics, as well as those of leading global banks.

2

ENGAGEMENT

  • We engaged with approximately 4,500 clients, suppliers and employees across Malaysia, Indonesia, Singapore, Thailand, Cambodia, Vietnam and the Philippines through surveys. These surveys were translated into Thai, Indonesian and Khmer. 
  • We also conducted one-on-one engagements with regulators, investors, communities and members of CIMB’s leadership team.

3

PRIORITISATION

  • Inputs from stakeholders were prioritised based on their influence and impact, and were weighted to reflect the relative significance of our presence in the respective countries studied.

4

VALIDATION

  • We engaged with management and regional teams to discuss and refine the identified material matters.
  • The process and final list of material matters were validated and approved by the Group Sustainability Council and the Board, our highest governing body.

Integration of Materiality Assessment into Enterprise Risk Management

Our materiality assessment helps us better understand the impacts, risks and opportunities arising from various topics, enabling us to develop more comprehensive management strategies. Identified material issues that present significant risks are integrated into our Enterprise-Wide Risk Management Framework and overall risk governance structure. On the other hand, opportunities associated with these material matters are embedded into our business strategies and initiatives. Some examples of our material matters and how we integrate them into our business are outlined below.

Material Issue Opportunities Risks

Cybersecurity & Data Privacy (mature)

Opportunities to build trust with clients by being transparent in our policies and raising awareness via campaigns.

 

Build trust with established governance,

security and privacy policies and standards

 

Leverage our existing adoption of globally

recognised cybersecurity frameworks such as

(NIST, ISO 27001) to enhance resilience

against evolving threats

 

Enhance customer and data protection

through fraud and privacy awareness initiatives

 

Improve fraud detection with advanced risk

monitoring

Identification: We identify cybersecurity risks such as cyber threats, data breaches and the need to comply with evolving regulations.

 

Assessment: Our assessment includes cyber threat intelligence, penetration testing, and IT system audits to evaluate the scope and severity of these risks.

 

Prioritisation: We prioritise cybersecurity risks based on regulatory compliance, reputational risks and potential business disruption.

 

Risk Response: Our response strategies include enhanced cyber defenses, robust regulatory compliance frameworks and comprehensive employee training programs.

 

Monitoring and Reporting: We monitor and report on cybersecurity risks through incident reports, vulnerability assessments, and regulatory audits to ensure ongoing vigilance and transparency.
Climate Change (maturing)

Develop strategies to expand climate finance,

for example in green buildings, electrification

and adaptation solutions

 

Embed these opportunities within our Green,

Social, Sustainable Impact Products and Services

(GSSIPS) Framework and business strategies

 

Drive accountability by linking climate finance

performance to key performance indicators

(KPIs) and compensation

 

Scale impact through partnerships in blended

finance and carbon credit initiatives

 

Identification: We identify climate-related risks from investors, regulators, and civil society. Climate change poses transition and physical risks affecting our lending portfolios, operational resilience and regulatory exposure.

 

Assessment: We assess these risks through scenario analysis on exposure to carbon-intensive sectors and physical climate vulnerabilities.

 

Prioritisation: We prioritise climate-related risks based on their influence on credit, market, and operational risk, as well as by sector based on their impact on the environment and communities (e.g., exposure to highly carbon-intensive sectors) and their impact on CIMB (e.g., modeled impact on credit, market and operational risk).

 

Risk Response: Our response includes setting net zero targets, curbing lending to coal and upstream oil sectors, and engaging with clients on decarbonization strategies.

 

Monitoring and Reporting: We monitor climate-related risks via risk appetite dashboards and developed a climate disclosure framework based on IFRS S2 standards.
Nature & Biodiversity (nascent)

Support nature conservation through finance

solutions and corporate citizenship

 

Develop innovative financial products that

support conservation, such as the EcoSave

Savings Account-i which channels the equivalent

of 0.2% of total average portfolio balance

annually (subject to cap) to conservation projects

 

Explore new financing mechanisms, such as

nature bonds, to fund conservation efforts

 

Integrate nature conservation into mid-term

strategies, leveraging LEAP analysis to assess

opportunities and impact

Identification: We identify nature-related risks largely from investors and civil society, focusing on the impact of our business activities on ecosystems and our dependency on healthy natural systems.

 

Assessment: We conduct a thorough analysis of impacts and dependencies using the LEAP (Linking Environment And Profit) analysis.

 

Prioritisation: We prioritise these risks by sector, initially through a high-level nature risk analysis of key sectors such as palm oil, and are currently working on sectoral LEAP analysis.

 

Risk Response: Our response includes managing outbound impacts through sector guides,No Deforestation, No Peat, No Exploitation commitments and biodiversity risk assessments. Financial impact assessments are ongoing.

 

Monitoring and Reporting: We monitor and report on nature-related risks using environmental impact metrics, compliance tracking and biodiversity reporting to ensure accountability and progress.

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