December 8, 2020 Read More →

CIMB Group becomes first SE Asian bank to commit to coal exit

Business Today:

CIMB Group Holdings Berhad has introduced its first Coal Sector Guide. The bank becomes the first banking group in Malaysia and the first in Southeast Asia to commit to phasing out coal from its portfolio.

Effective in phases next year, the bank’s latest sustainability milestone will phase out coal from its portfolio by 2040, as part of its effort to align with the 1.5-degree Celsius goal of the Paris Climate Agreement.

The guide, effective in phases next year will be applicable across the Group in all its operating markets and prohibits asset-level or general corporate financing for new thermal coal mines and coal-fired power plants, as well as expansions, except where there is an existing commitment.

“CIMB’s announcement today is a very important milestone in the global efforts to align with the Paris Agreement and manage the growing financial risks of climate change. CIMB represents the first globally significant financial institution in the developing world to commit to a coal exit strategy as a core part of the wider effort to align with its sustainable profit objectives,” Tim Buckley, Director of Energy Finance Studies, IEEFA said. 

[Poovenraj]

More: CIMB Group to phase out coal from portfolio, first in SEA

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