CIMB Singapore is expanding SME access to sustainability-linked financing through its partnership with ESGpedia.
The bank’s SME Sustainability-Linked Loan and Financing Programme, launched in August 2024, has supported more than 100 companies in setting emissions targets and securing preferential interest rates.
The programme aims to address long-standing barriers faced by smaller firms.
Sustainability-linked loans have typically been tailored for large corporates with bespoke metrics and costly verification, and many SMEs still view sustainability as a costly effort with limited immediate returns.
CIMB’s framework offers a simpler structure aligned with global standards and uses ESGpedia’s digital platform to help companies calculate greenhouse gas emissions, set targets and monitor progress without relying heavily on consultants.
The programme includes tiered KPIs tied to annual sustainability performance, with higher interest rebates from the second year.
Participants said the platform helped them establish baseline emissions and begin structured reporting, making it easier to meet financing conditions and prepare for regulatory requirements.
CIMB said ESGpedia’s platform allowed the bank to introduce the programme without building its own digital infrastructure, speeding up launch and reducing development costs.
The system also supports data collection, performance tracking and customised assessments across the bank’s SME ecosystem.
The initiative contributes to CIMB Group’s target of delivering RM300 billion in sustainable finance by 2030 and reflects the bank’s effort to help businesses manage climate risks and build resilience in a lower-carbon economy.
CIMB said digital tools will remain central as it scales sustainability-linked financing regionally.
ESGpedia was named Sustainable Innovator at the Singapore Fintech Festival 2025 for its work in climate reporting and sustainable finance.
Adam Lim, Head of Commercial Banking Product and Strategy at CIMB Singapore, said,
“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 SME SLL/SLF Programme, in partnership with ESGpedia, offers precisely that, an efficient, credible, and cost-effective process.
It automates much of the data and reporting process, so SMEs can focus on improving their business performance while confidently tracking their environmental progress, to achieve long-term efficiency, customer trust, and even cost savings.”
Benjamin Soh, Founder and Managing Director at ESGpedia, said,
“The integration to the financial sector through the ESGpedia Sustainable Finance module in the past year has accelerated adoption and impact through the creation of shared value for both financial institutions and their customers.
We are delighted to be supporting banks like CIMB to make sustainability-linked financing more accessible and scalable for businesses and to shape the climate agenda through financial flows.”
Featured image: Edited by Fintech News Singapore, based on image by Freepik
