CIMB Singapore has partnered with ESGpedia to launch the SME Sustainability-Linked Loan/Financing Programme, making sustainability-linked financing more accessible to small and medium-sized enterprises (SMEs). Since its inception in August 2024, the programme has enabled over 100 companies to set greenhouse gas reduction targets and benefit from preferential interest rates.
Traditionally reserved for large corporations, Sustainability-Linked Loans (SLLs) are now available to SMEs through a simplified and cost-effective approach. The programme aligns with the Loan Market Association’s Sustainability-Linked Loan Principles and leverages ESGpedia’s digital platform, allowing SMEs to calculate and monitor their greenhouse gas emissions independently.
Adam Lim, Head of Commercial Banking Product and Strategy at CIMB Singapore, emphasised the importance of the partnership: “To make sustainability-linked financing truly scalable, we needed a trusted partner who could simplify the process and lower the cost of carbon accounting and verification.”
The programme incentivises SMEs with tiered interest rate discounts based on their achievement of Sustainability Performance Targets. Participants like Bespoke Cleanpro Pte Ltd and SN Real Estate Pte Ltd have praised the intuitive design of the ESGpedia platform, which facilitates the calculation of baseline emissions and sustainability reporting.
CIMB’s initiative contributes to its sustainable finance target of RM300b by 2030, reinforcing its commitment to a lower-carbon economy. As the global economy shifts towards sustainability, CIMB plans to expand these digital tools regionally, further integrating technology into its sustainability strategies.
