As sustainability regulations continue to evolve, Malaysian SMEs and mid-tier companies are facing growing pressure to understand and manage their carbon emissions. To help businesses navigate this transition, CIMB Bank Berhad and CIMB Islamic Bank Berhad collectively “CIMB” or “the Bank”) have launched a new Greenhouse Gas (“GHG”) Advisory Service “the Advisory Service”) under the Bank’s GreenBizReady™ proposition.
The advisory service aims to help small and medium enterprises (“SMEs”) and mid-tier companies (“MTCs”) begin and advance their decarbonisation efforts while meeting increasingly important regulatory and supply chain requirements.
Rising Sustainability Expectations for Businesses
The launch comes as Malaysia strengthens its sustainability reporting landscape.
Under the National Sustainability Reporting Framework (“NSRF”), all listed and non-listed companies with annual revenue of RM2 billion and above must adopt climate-related disclosures, including Scope 3 emissions generated across their supply chains. As a result, many SMEs that supply larger corporations may soon need to provide emissions data even if they are not directly subject to disclosure requirements themselves.
At the same time, the Companies Commission of Malaysia (“SSM”) has published a consultative document proposing mandatory disclosure of Scope 1 and Scope 2 greenhouse gas emissions for non-listed companies with annual revenue exceeding RM15 million.
These developments are creating new compliance expectations across the business ecosystem, particularly for SMEs that may lack the expertise, resources or tools to begin measuring their carbon footprint.
Helping SMEs Turn Sustainability Into Business Value
Recognising these challenges, CIMB developed its GHG Advisory Service to provide practical and business-focused support for companies embarking on their sustainability journey.
Structured around the NSRF framework, the service helps businesses understand emissions reporting requirements while identifying opportunities to improve operational efficiency and reduce costs.
According to Ahmad Shazli Kamarulzaman, Co-Chief Executive Officer of Group Commercial Banking at CIMB Group, many businesses recognise the need to measure and manage emissions but often face barriers related to technical complexity and compliance costs.
“We recognise that while many businesses need to start measuring their carbon emissions, technical complexity and compliance costs often present a barrier. Our GHG Advisory Service aims to simplify this process by translating complex climate and emissions requirements into practical, business-focused actions with sector-specific guidance and tools to measure and manage their carbon footprint,” he said.
He added that the advisory service can also help businesses identify operational improvements that support decarbonisation, cost savings and business growth.
Practical Solutions for Lower Costs and Lower Emissions
CIMB’s advisory team adopts a cost-first approach when working with businesses.
The service evaluates practical solutions that can deliver both environmental and commercial benefits. These include energy-efficiency initiatives, operational optimisation, solar power installations, battery storage systems and circular economy practices.
By implementing these measures, businesses can lower operating costs, improve productivity and strengthen competitiveness while reducing greenhouse gas emissions.
The approach also addresses growing concerns around rising energy and fuel costs, particularly amid global geopolitical uncertainties that continue to affect businesses worldwide.
Sustainability-Linked Financing Incentives for SMEs
A key feature of the advisory service is its integration with CIMB’s Sustainability Linked Financing (“SLF”) programme.
SLF links financing costs to a company’s sustainability performance. Businesses that achieve predetermined greenhouse gas reduction targets may qualify for financing rebates of up to 0.50% per annum.
Traditionally, sustainability-linked financing solutions have primarily been available to larger corporations because of their customised structure. Through GreenBizReady™, CIMB aims to extend these benefits to SMEs and mid-tier companies, making sustainable finance more accessible to a broader segment of the market.
To support this effort, the Bank has committed RM3 billion to its SLF programme through 2030.
The initiative seeks to create a more inclusive sustainable finance ecosystem while helping businesses finance their transition towards lower-carbon operations.
Supporting Long-Term Business Resilience
By combining advisory services, decarbonisation solutions and financing incentives under a single platform, CIMB hopes to help businesses move from sustainability awareness to practical implementation.
The initiative forms part of CIMB’s broader Forward30 strategy and supports the Bank’s target of mobilising RM300 billion in sustainable finance by 2030.
As sustainability reporting requirements continue to expand and supply chain expectations become more stringent, businesses that begin preparing early may be better positioned to remain competitive and resilient.
With the launch of the GHG Advisory Service, CIMB is seeking to equip Malaysian SMEs and mid-tier companies with the tools, expertise and financing support needed to navigate the low-carbon transition while strengthening long-term business performance.
