CIMB Islamic Bank Berhad (CIMB Islamic) and MTT Shipping Sdn. Bhd. have announced a partnership to advance their sustainability goals, becoming the first client to utilise former’s Sustainability-Linked Treasury Programme with Shariah-compliant hedging instruments.
MTT Shipping is a leading local carrier in Malaysia, providing container shipping services which covers routes from Peninsular Malaysia to East Malaysia as well as regional ports in Singapore, Thailand, Brunei, Indonesia and India.
The company is committed to integrating ESG considerations into its corporate roadmap and generating sustainable long-term value for its stakeholders.
The programme is a suite of treasury solutions that enable clients to embed their ESG aspirations into their treasury risk management in which MTT Shipping is entitled to receive a sustainability-linked reward based on the achievement of ambitious Sustainability Performance Targets (SPTs).
The SPTs are subjected to stringent independent third party verification.
Ahmad Shahriman Mohd Shariff, CEO of CIMB Islamic, said, “We are proud to embark on this journey with MTT Shipping to advance their sustainability goals through offering the first Shariah-compliant hedging solution in CIMB’s Sustainability-Linked Treasury Programme in meeting their ongoing business requirements.
“As a purpose-driven organisation, this exemplifies our commitment to not only prioritise product innovation, but also to generate long-term positive impacts to the economy, community and environment in line with the principles of Value-Based Intermediation (VBI).
“We look forward to continuing to meet our clients’ varied range of treasury requirements through bespoke treasury solutions that also help further their contributions in the ESG space.”
Dato’ Seri Kenny Ong, Group Executive Chairman of MTT Shipping, said, “Our sincere appreciation to CIMB Islamic for their support in our sustainability initiatives and we are honoured to be the first client to tap into a Shariah-compliant version of the Sustainability-Linked Treasury Programme.
“This transaction emphasises our commitment to integrating ESG considerations into our corporate roadmap and generating sustainable long-term value for our stakeholders.”
In recent years, the maritime transport industry has seen an increasing number of ESG regulations. CIMB Islamic and MTT Shipping are committed to ensuring that their operations and decision-making processes are aligned with the policy recommendations and requirements set forth by the relevant regulatory bodies such as the International Maritime Organisation (IMO).
This includes managing the carbon intensity indicator (CII) ratings of MTT Shipping’s vessels while aligning their overall emissions reduction trajectory to be in line with the IMO.
This partnership is a significant milestone for CIMB Islamic and MTT Shipping as they work together to advance their sustainability goals. It is also a testament to CIMB Islamic’s commitment to providing innovative treasury solutions that help clients achieve their ESG objectives.
The post CIMB and MTT Shipping Partner to Advance Sustainability Goals first appeared on Energy Asia.
