CIMB expands sustainability-linked financing

By the Editorial Team · Tuesday, October 20, 2026

CIMB Bank and CIMB Islamic Bank have enhanced their sustainability-linked financing programs to support SMEs and businesses in the oil palm and real estate sectors by tying loan incentives to environmental performance targets. This expansion aims to accelerate sustainable practices and emissions reductions, offering financial benefits such as rebates to companies that meet specific environmental goals, thereby advancing decarbonization and responsible growth.

CIMB Bank Bhd and CIMB Islamic Bank Bhd have expanded their sustainability-linked financing (SLF) offerings to support businesses, including small and medium enterprises (SMEs), in the oil palm and real estate sectors. The enhanced financing structures aim to facilitate the adoption of sustainable practices by providing incentives tied to predetermined environmental performance targets.

The new SLF facilities build on CIMB's existing RM3 billion SLF programme and the GreenBizReady initiative. They offer a streamlined and targeted approach to encourage companies to implement sustainability measures relevant to their industries. Eligible businesses can benefit from financing rebates of up to 0.5% per annum when they meet goals such as reducing greenhouse gas emissions.

For the real estate sector, the bank has introduced building energy intensity as an alternative metric to gauge progress in lowering emissions, allowing companies to demonstrate improvements aligned with evolving market standards. Additional incentives are available to businesses that pursue sustainability initiatives within their operations, including renewable energy adoption, energy efficiency upgrades, waste and water management, and obtaining recognised sustainability certifications.

Ahmad Shazli Kamarulzaman, co-chief executive officer of CIMB Group Commercial Banking, highlighted that the updated SLF structures broaden access to sustainable financing across various segments of the oil palm industry, including plantations and palm oil mills. The programmes also support entities aiming to acquire green-certified properties or upgrade existing buildings to meet environmental certification criteria.

“These initiatives enable more businesses, especially SMEs, to pursue sustainability efforts tailored to their operations while contributing to decarbonisation and responsible growth,” Ahmad Shazli said. He emphasized that the bank’s approach is designed to provide practical and flexible pathways for companies to achieve long-term emissions reductions and enhance financial performance through cost savings and rebate opportunities.

CIMB’s expanded SLF framework reflects a growing financial sector emphasis on supporting sustainable development and environmental responsibility, positioning businesses to align with broader climate goals while maintaining competitiveness.

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