Bangkok: CIMB Thai Bank has announced its commitment to advancing the transition to a low-carbon economy with a specific focus on financing initiatives in the Oil and Gas and Power sectors, areas known for high greenhouse gas emissions. The bank has pledged a substantial investment of 20 billion baht to support sustainable projects within these industries.
According to Thai News Agency, Mr. Jason Lee, Head of Sustainability at CIMB Thai Bank PCL, stated that the bank is gearing up to promote Transition Finance, with the aim to facilitate cleaner global industries by targeting the Oil and Gas and Power sectors. These sectors are recognized for contributing approximately 70% of total industrial greenhouse gas emissions. The financing will cover various needs from capital investment in human resources to advanced technology, promoting operations that significantly reduce emissions from upstream to downstream processes.
“The bank has chosen to prioritize these sectors as they are pivotal for substantial reducti
ons in greenhouse gas emissions. It is reassuring to see a firm commitment from these business sectors, backed by a clear financial support plan amounting to THB 20 billion. Within the next 24 months, CIMB Thai is set to offer a suite of financial products tailored for these industries, including sustainability-linked loans, transition bonds, and transition loans, all aligned with scientific targets for reducing emissions and limiting global temperature rise,” Lee elaborated.
Furthering its sustainability efforts, CIMB Thai has also established an ESG Advisory service to guide businesses towards achieving sustainable and environmentally friendly practices. This initiative is part of a broader strategy to support a just transition in the economy.
In addition, CIMB Thai Bank recently secured a 3 billion baht Sustainability Linked Loan with Asset World Corp (AWC) in 2023, which aligns with the Sustainability Performance Targets (SPTs) aimed at reducing direct and indirect carbon emissions annually. This achiev
ement earned the bank the Best Sustainability Linked Loan award from The Digital Banker: Global Finance Awards 2024. The bank also launched a 2 billion baht green bond aimed at financing green projects. CIMB Group, the parent company of CIMB Thai, has emphasized that sustainability is central to its business strategy, setting a goal to promote sustainability with a financial target of 100 billion ringgit (approximately 770 billion baht) between 2021 and 2024.