PETALING JAYA: CIMB Bank Bhd has launched a landmark Sustainability-Linked Treasury Programme, spearheaded by Farm Fresh Bhd and Sunway Bhd, through subsidiary Sunway Treasury Sdn Bhd, as its pioneering clients.
The programme allows clients to embed their environmental, social and governance (ESG) aspirations into thematic treasury risk management solutions. It encompasses recurring flow transactions for customers’ business activity conversion cycles (eg imports/exports), as well as episodic balance sheet hedging.
To receive a sustainability-linked rebate, the programme requires ongoing commitment from clients through pre-agreed sustainability performance targets, which are unique to each client’s business profile and subjected to stringent independent third party verification.
CIMB group co-CEO (wholesale banking) and group treasurer Chu Kok Wei said by combining its market leadership positions in both treasury and sustainable finance, it has assisted customers from the one-off transactions that the market has seen, into this recurring business-as-usual flow programme.
“The programme will bring CIMB closer to achieving its sustainable finance targets and creating positive impacts, guided by our Green, Social, Sustainable Impact Products and Services Framework,” he added.
Farm Fresh group managing director and CEO Loi Tuan Ee commented that being a pioneer in such a programme is in line with its efforts to show leadership in creating a better future for stakeholders, society, future generations and the environment.
Sunway group chief financial officer Chong Chang Choong said that as a responsible corporate citizen, the partnership is in line with its responsibility to stakeholders via the commitment to advancing ESG in the corporate space.
