PT Bank CIMB Niaga Tbk - Sustainability

Risks

Bank is aware of the risks in providing credit to the palm oil sector, which are including:

Environmental risks, i.e., damage to rain forests, biodiversity loss and extinction of protected species due to expansion of plantation areas.
Environmental risk from land fires due to land clearing through illegal burning.
Risk of social conflict with indigenous people or local communities in the land licensing, land use or land acquisition.
Social risks in human rights violations if forced or child labour occurs.

To minimize or avoid these risks, CIMB Niaga conducts several mitigation actions, including:

Operating sustainable finance policies which includes regulating sustainability due diligence for debtors and potential debtors. The purpose of the sustainability due diligence is to ensure that the Bank does not have any business relationships with debtors and/or potential debtors who have ESG issues.
Have a sector guide which contains minimum standards in sustainability practices in each sector (e.g., land-based sector) that must be fulfilled by debtors and/or potential debtors. The sector guide also provides escalation mechanism when there is a misinterpretation of ESG and/ or credit issues to the debtors and/or prospective debtors. The sector guide have been published since 2020 and updated regularly
Establishing an action plan and its targets fulfillment, if the debtors and/or potential debtors do not meet the standards required in the sector guide
Socialization or education on the importance of ESG aspects in supporting business sustainability to debtors in palm oil sector
Encouraging debtors to acquire ISPO and / or RSPO certification
Encouraging debtors to have NDPE commitment

Commitment to Palm Oil Financing