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
  • Exclusion List
  • Sector Guidance
Sustainable Finance Policy
  • Sustainable Finance Policy
  • Exclusion List
  • Sector Guidance

As a financial institution

we provide financing to enable and facilitate economic activities

As a responsible corporate citizen

we manage risks and potential negative impacts on environment, society, and economy in general, arising from the activities that we finance

The Sustainable Finance Policy serves as a guidance on the mitigation of environmental and social risks in lending decisions.

Sustainability due diligence is required for the bank’s financing facilities with non-individual borrowers. In cases where clients are involved in high sustainability risk sectors, CIMB Niaga will undertake an Enhanced Sustainability Due Diligence.

Beyond the Sustainability Due Diligence process, CIMB Niaga also has an Exclusion List, which includes the first-level 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
  • Bribery and corruption
  • Illegal logging or uncontrolled fire
  • Terrorism
  • Smuggling
  • Activities impacting UNESCO World Heritage Sites
  • Political campaigns (directly via government officials, politicians, political candidates or political organisations)
  • Arms and munitions
  • Casino and gaming

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:

  • Oil palm,
  • Coal,
  • Construction,
  • Housing and infrastructure,
  • Oil and gas,
  • Forestry.