PETALING JAYA: CIMB Bank Bhd and CIMB Islamic Bank Bhd have introduced new Sustainability-Linked Financing (SLF) structures for businesses including small and medium enterprises (SMEs) in the oil palm and real estate sectors, as well as companies seeking to acquire or upgrade existing properties into green-certified buildings.
The enhanced offerings build on CIMB’s RM3bil SLF programme and GreenBizReadyTM proposition, providing businesses with a simpler, more guided and rewarding pathway to adopt sector-relevant sustainable business practices, said the bank in a statement.
“The SLF programmes reward customers with attractive financing rebates when they meet pre-determined Sustainability Performance Targets (SPTs), including greenhouse gas (GHG) emissions reduction.
“For the real estate sector, Building Energy Intensity (BEI) has also been introduced as an alternative measure of impact, enabling businesses to demonstrate credible progress in reducing the emissions intensity of their buildings while keeping pace with market expectations.”
In addition, CIMB said it is now offering further incentives for businesses that implement sustainability initiatives material to their operations, such as renewable energy, energy efficiency, waste or water management, and recognised sustainability certifications.
“By rewarding businesses for sustainability initiatives that contribute towards longer-term emissions reductions, the enhanced SLF structure provides a practical and flexible route for businesses, including SMEs, to progress towards their sustainability targets while reducing costs and increasing their ability to receive financial rebates of up to 0.50% per annum under the SLF programme.
CIMB Group
commercial banking co-chief executive officer Ahmad Shazli Kamarulzaman said the new SLF structures widen access to sustainable financing across the oil palm and real estate sectors, while also supporting companies seeking to acquire or upgrade properties into certified green buildings.
“Beyond oil palm plantation companies, the programmes also support palm oil mills, ensuring the support reaches all parts of the value chain.
“This enables more businesses, including SMEs, to pursue sustainable practices that are most relevant to their operations, while driving meaningful progress towards decarbonisation and responsible long-term growth.”
For the oil palm sector, eligible initiatives include methane capture, biomass utilisation, circular economy practices, water management, lower-carbon agricultural practices and the adoption of green vehicles.
“Collectively, these measures support broader industry efforts to accelerate decarbonisation and enhance resource efficiency across the value chain,” said CIMB.
For the real estate sector, as well as building owners and buyers, CIMB said eligible initiatives include installing solar panels and battery energy storage systems, energy efficiency initiatives, recognised green building certifications, energy audits, and energy management or monitoring systems.
“An entry-level option is also available for eligible SMEs who have yet to start measuring their emissions.
“This option rewards SMEs who measure and report their emissions for the first time, supported with subsidised carbon measurement tools, hands-on assistance and emissions verification, as a holistic package for SMEs who are just starting on their journey, in addition to rewards for emissions reductions in subsequent years.”
