KUALA LUMPUR: CIMB Group Holdings Bhd is formalising its 2030 climate target for its palm oil sector portfolio, focusing on sustainable palm oil production.
Concurrently, the group is also raising its commitment towards decarbonisation, establishing a target for its power portfolio, and emphasising a transition towards cleaner, renewable energy sources.
In a statement today, CIMB group chief executive officer Datuk Abdul Rahman Ahmad said the bank is pleased to present a strategy on these sectors, the first in Malaysia, and thus solidify its commitment towards net zero by 2050.
“We firmly advocate the sustainable production of palm oil and recognise the role that businesses, including micro, small, and medium enterprises play in advancing sustainable palm oil production.
“We will continue to actively support and enable clients and small-scale growers to embrace and adopt certified sustainable palm oil standards,” he said.
He also said that CIMB is committed to support decarbonisation in the power sector, leveraging the rapid advancements in renewable energy technologies and supportive national schemes to accelerate the transition to a net zero economy.
To encourage the growth of sustainable palm oil, CIMB has set a goal to reduce emissions intensity of its entire palm oil portfolio by 16 per cent by 2030, equivalent to a 2 per cent average annual reduction.
“CIMB will engage with clients to shift to certified sustainable palm oil production to minimise environmental impacts, adopt better agricultural practices to increase yields, reduce operational greenhouse gas emissions, and improve the quality and coverage of emissions reporting,” it said.
In line with these initiatives, it has also released a whitepaper on its decarbonisation plans outlining sector-specific pathways and plans for the four key sectors that represent around half of the group’s current emissions.