14 February 2023CIMB Bank Berhad Onboards ISF Into Sustainability-Linked Treasury Programme
The onboarding of ISF marks a first for a Japanese and foreign multinational company (MNC) into the Sustainability-Linked Treasury Programme since its successful introduction in 2022. This is a part of ISF’s Finance Department’s initiative to link ISF’s sustainability initiatives with financial incentives.
The programme is in line with CIMB Groups’ ambition to become a leading focused ASEAN bank and ASEAN sustainability leader under their Forward23+ strategic plan. Under the programme, ISF stands to receive a rebate linked to the achievement of pre-agreed Sustainability Performance Targets (SPTs). SPTs are unique to each of CIMB’s clients’ business profiles and sustainability aspirations and are subject to stringent independent third-party verification.
“CIMB is honoured to onboard ISF as a key partner in this innovative Programme, which will facilitate and support ISF’s sustainability goals whilst meeting their recurring hedging requirements over a longer-term horizon.” Jefferi Hashim, Head of CIMB Group Wholesale Banking’s ESG Advisory and Solutions said, “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.”
“We thank CIMB for the support of this innovative Sustainability-Linked Treasury Programme. We see integrating Environmental, Social, and Governance (ESG) considerations into the corporate strategy as not just a moral obligation, but a way to create long-term positive value we have on our employees, stakeholders and ensure the sustainability of business success.” ISF’s CEO Takashi Ishigami said, “Our commitment to ESG mirrors our commitment to the people and to the world. Furthermore, the future of socially sustainable responsible finance is part of our sustainability goals.”
ISF has made massive progress since its sustainability journey began in 2017, including the responsible sourcing of palm oil consistent with its No Deforestation, No Peat, and No Exploitation (NDPE) commitments, protecting human rights, as well as action on climate change. ISF intends to use this programme’s opportunity to further improve its sustainability efforts.