KUALA LUMPUR: CIMB Bank Bhd and CIMB Islamic Bank Bhd have introduced new Sustainability-Linked Financing (SLF) structures for businesses, including 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 RM3 billion SLF programme and GreenBizReady proposition, providing businesses with a simpler, more guided and rewarding pathway to adopt sector-relevant sustainable business practices.
The SLF programmes reward customers with attractive financing rebates when they meet predetermined 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 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 sustainability initiatives that contribute to longer-term emissions reductions, the enhanced SLF structure provides a practical, 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 co-CEO group commercial banking Ahmad Shazli Kamarulzaman said the bank recognise that businesses are at different stages of their sustainability journey.
“Our 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,” he said.
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.
Malaysia Palm Oil Board acting deputy director general (research and development) Dr Mohd Hefni Rusli said the palm oil value chain is at different stages of sustainability maturity, making practical and progressive approaches to sustainability important.
“Sector-specific sustainability initiatives can provide businesses with a structured pathway to strengthen their sustainability performance, while supporting the industry’s continued progress towards more sustainable and resilient operations,” he said.
For the real estate sector, including building owners and buyers, 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.
GreenRE Sdn Bhd executive director Ir Ashwin Thurairajah said, Malaysia’s real estate sector’s transition to a lower-carbon future depends on the collective efforts of many building owners, including SMEs.
“Recognising practical sustainability improvements through financing solutions can encourage more businesses to invest, accelerating wider adoption of sustainable building practices across the industry,” he said.
The introduction of the dual-SPT structure, supported by the Bank’s GreenBizReady proposition, reflects CIMB’s continued efforts to broaden access to sustainable finance for businesses of all sizes, by developing practical financing solutions that support customers’ transition towards a lower-carbon economy.
These enhancements form part of CIMB’s broader commitment towards its target of mobilising RM300 billion in sustainable finance by 2030.