CIMB Bank Berhad and CIMB Islamic Bank Berhad, collectively known as CIMB, have expanded their GreenBizReady initiative by introducing the sustainability-linked financing (SLF) for SMEs.
This programme, with a total allocation of RM3 billion until 2030, makes CIMB the first bank to offer a comprehensive value proposition for SMEs to access sustainability-linked financing opportunities, complete with user-friendly tools for measurement and verification.
The main goal of SLF is to incentivise SMEs to achieve credible greenhouse gas (GHG) emission reduction targets by offering attractive financing rebates of up to 0.50% per annum when securing capital or expansion financing.
To participate, SMEs need to agree on sustainability performance targets with CIMB and input data such as energy and fuel consumption into the low carbon operating system (LCOS) platform provided by the Malaysian Green Technology and Climate Change Corporation (MGTC).
Moreover, when SMEs combine SLF with Bank Negara Malaysia’s (BNM) low carbon transition facility (LCTF), they can benefit from even better financing rates. As part of the SLF launch, CIMB signed a memorandum of cooperation with MGTC, demonstrating their commitment to further driving sustainability adoption among SMEs.
CIMB’s GreenBizReady initiative, initially launched in 2021, offers a one-stop sustainability solution for SMEs, providing training, advisory services, and connections with suppliers and associates to help SMEs achieve their sustainability goals.
Nik Nazmi Nik Ahmad, minister of natural resources, environment, and climate change, expressed his support for such initiatives, emphasizing the importance of leveraging public-private partnerships (PPP) and public-private-philanthropic partnerships (PPPP) to ensure Malaysian businesses’ resilience and competitiveness in transitioning to a low-carbon economy.
Ahmad Shazli Kamarulzaman, deputy CEO of group commercial banking at CIMB Group, reiterated the Bank’s purpose-driven commitment to empower SMEs to adopt sustainable practices.
He expressed delight in working with MGTC to catalyse sustainable practices among SMEs, positioning them to thrive regionally and globally while contributing to Malaysia’s green transition.
MGTC CEO, Shamsul Bahar Mohd Nor, highlighted the aim of making carbon management accessible and affordable for industries through LCOS, envisioning a greener, more resilient country with environmental stewardship as a legacy.
CIMB’s SLF programme addresses the challenges of measurement and verification faced by SMEs when adopting sustainable practices, offering cost-effective access to incentives that were traditionally available only to corporates.
The programme also aligns with globally recognized sustainability principles. Besides reducing negative environmental impact, the SLF Programme aims to enhance SMEs’ business resilience and access to export markets, enabling them to adapt to market and regulatory developments such as the EU carbon border adjustment mechanism and global sustainable supply chain transitions.
Building on its successful SLF for corporate clients in 2020, CIMB’s SLF for SMEs is part of the bank’s ambition to mobilise RM60 billion in sustainable finance by 2024, surpassing its original target of RM30 billion ahead of schedule.
As of the end of 2022, CIMB has already achieved RM54.3 billion in sustainable finance under its Green, Social, Sustainable Impact Products and Services (GSSIPS) framework, positioning the bank as an ASEAN sustainability leader by 2024.
For more details about CIMB’s SLF for SMEs, visit https://cimb.com.my/greenbizready.
