KUALA LUMPUR: CIMB Bank Bhd has onboarded Intercontinental Specialty Fats Sdn Bhd (ISF) as the latest client in the bank's sustainability-linked treasury programme.
ISF's participation in the programme is the first by a Japanese and foreign multinational corporation (MNC) in Malaysia.
ISF is a wholly-owned subsidiary of The Nisshin OilliO Group Ltd, the largest processor and marketer of edible oils in Japan and one of the global leaders in the edible oil industry.
CIMB Group head, ESG advisory and solutions, group wholesale banking Jefferi Hashim said ISF is a key partner in this programme, which will facilitate and support ISF's sustainability goals whilst meeting their recurring hedging
requirements over a longer-term horizon.
"This transaction highlights CIMB's capabilities and commitment to helping clients from a wide range of industries and sectors to advance their respective
ESG agendas and create positive impacts through sustainable finance solutions.
"This is in line with CIMB Group's ambition to become a leading focused ASEAN bank and ASEAN sustainability leader under our Forward23+ strategic plan," he said in a statement today.
Under the programme, ISF will receive a rebate linked to achieving pre-agreed sustainability performance targets (SPTs).
SPTs are unique to each client's business profile and sustainability aspirations and are subject to stringent independent third-party verification.
ISF is the first client in the palm oil industry to have been onboarded after the programme's successful introduction in 2022.
The programme enables and incentivises clients to embed their environmental, social and governance (ESG) aspirations into treasury risk management solutions customised to their requirements.
In addition, the programme provides for a longer-term treasury solution by moving from one-off transactions towards a recurring business-as-usual flow programme framework.
ISF chief executive officer Takashi Ishigami said integrating ESG considerations into the corporate strategy is not just a moral obligation but a way to create long-term positive value for its employee and stakeholders and ensure the sustainability of business success.
"Our commitment to ESG mirrors our commitment to the people and the world. Furthermore, the future of socially sustainable, responsible finance is part of our sustainability goals," he said.
The Nisshin OilliO Group was established in 1907 and has major operations in seven countries, including Malaysia, Singapore and Italy.
The company has been listed on the Tokyo Stock Exchange since June 1949, with a market capitalisation of over US$1 billion.
Having started its sustainability journey in 2017, ISF is committed to sustainable production and responsible palm oil sourcing.
ISF's raw materials are sourced responsibly in line with their
No Deforestation, No Peat, and No Exploitation (NDPE) commitments.
As a world-leading palm speciality oils and fats manufacturer, ISF is driving a progressive, responsible business agenda ranging from responsible sourcing, human rights, and action on climate change to ensuring they adhere to the highest standards in their production.
In line with its Forward23+ strategic plan, CIMB Group has been continuously stepping up its sustainability innovation.
In recent years, CIMB has executed several notable sustainable finance transactions, including its landmark sustainability-linked derivative (SLD) transaction in October 2021, the world's first ringgit-denominated SLD transaction and Asia's largest by notional value.
Most recently, CIMB Group doubled its sustainable finance target to RM60 billion by 2024, achieving its original target of RM30 billion two years ahead of schedule.