Financial institutions are uniquely positioned to mobilise capital flows for greater good, while meeting business motives.

Sustainable financing allows us to design our lending and investment portfolio, with environmental and social considerations, helping the brand operate with resilience and deliver positive impact.

As part of CIMB Niaga’s sustainability strategy, we recognise that the sectors we are exposed to through our financing are linked to different types and levels of environmental and social risks.

Based on the exposure and more so for high sustainability risk sectors, we have institutionalised stronger controls including:

  • An Enhanced Sustainability Due Diligence process
  • Higher authority levels for approval
  • Sector-specific guidance documents for our Corporate and Commercial Banking relationship managers.

  • Sustainable Finance Policy
    and Procedure
  • Sustainability Due
    Diligence
  • Exclusion
    List
  • Sector
    Guidance
Sustainable Finance Policy and Procedure
  • Sustainable Finance Policy and Procedure
  • Sustainability Due Diligence
  • Exclusion List
  • Sector Guidance

This Sustainable Finance Policy serves as the foundation for implementing Sustainable Business. Through this policy, Bank has developed supporting documents, including the High Sustainability Risk Sector List and Sector Guidance. The Sustainable Finance Procedure provides guidelines for conducting Sustainability Due Diligence (SDD) and Enhanced Sustainability Due Diligence (ESDD), enabling Bank to identify, measure, monitor, and control ESG risks. Updates to the Sustainable Finance Policy and Procedure are conducted at least once every two years, as stipulated in the Policy Manual Framework.

Since 2020, Sustainability Due Diligence (SDD) has been fully implemented (100%) in the corporate banking segment, and each year, the scope of SDD has been gradually expanded to several sectors in the commercial banking segment.

SDD implementation mechanism as follows:

Beyond the Sustainability Due Diligence process, CIMB Niaga also has an Exclusion List, which includes the firstlevel screening criteria, where we take a zero-tolerance approach. We avoid to conduct business with entities that are directly linked (with evidence) to one or more of the following:

  • Illegal activities
  • Arms & munitions
  • Casino and gaming
  • Bribery and Corruption
  • Breaches of laws and regulations related to human rights and labours
  • Illegal logging or uncontrolled fire
  • Activities that adversely affect a World Heritage Site
  • Terrorism
  • Smuggling
  • Financing and/or investment in thermal coal mining and coal fired power plant (CFPP) for expansion or greenfield purposes.
  • Mountain Top Removal (MTR) mining
  • Political Campaign Transaction
  • New oil fields

CIMB Niaga has identified certain industries exposed to relatively higher sustainability risk against other sectors. For these industries, we have developed sector guides to help our relationship managers apply our Sustainable Finance Policy requirements in a clear and structured manner.

CIMB Niaga has specified minimum industry-specific requirements for financing clients. If the clients are not meeting these minimum criteria at the point of new financing approval or review, a time-bound action plan with reasonable targets for completion are agreed with the client.

We also include a list of sustainability best practices in our sector guides for selected high sustainability risk sectors to encourage and support clients in their journey to improve their sustainability performance.

The following sectors that considered as having high sustainability risks are:

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