SUSTAINABILITY REPORT CIMB & YOU CIMB & You is the relationship that helps us value what we have and know what we need to preserve to make our world a better place. Sustainability is about more than preserving the environment. It is also about preserving our traditions and our history. Above all, sustainability is about nurturing the shared values and principles that lay the foundation upon which we build a better future. CIMB & You is the shared experience that says, “Together we are better.” Our cover is a celebration of the CIMB family. 01 COMMUNITY 02 WORKPLACE 03 MARKETPLACE 04 ENVIRONMENT table of CONTENTS Chairman’s Message .... 002 A Message from the GCEO .... 004 Community .... 008 Workplace .... 050 Marketplace .... 082 Environment .... 096 CIMB Foundation’s Board of Trustees .... 102 CIMB Foundation’s Charter .... 110 Reports and Financial Statements .... 112 GRI Content Index .... 137 CONTENTS SUSTAINABILITY REPORT 2014 CIMB GROUP HOLDINGS BERHAD G4-1 IT GIVES ME GREAT PLEASURE TO PRESENT CIMB’S 2014 SUSTAINABILITY REPORT WHICH CATALOGUES WHAT WE HAVE DONE IN 2014 TO BENEFIT SOCIETY AND TO INSTIL PRIDE IN OUR WORKFORCE. CIMB REMAINS THE BRAND THAT CARES AND WORKS HARD TO MAKE THE WORLD A BETTER PLACE. This year, we took an important step in moving to a higher standard of In April of 2014, we launched our CIMB ACE (Accelerated Career reporting our activities by implementing the latest version of the GRI G4 Enhancement) Programme which is an upward mobility scheme for our non- Guidelines. We leveraged on the experience of past years and have begun to executives. I am pleased to say that the response was heartening with 201 up our game by implementing more best practices in the field of sustainable personnel enrolling to improve their station. development. This structured approach also allows our shareholders and other stakeholders to have a clearer view of our corporate sustainability It’s been a year now since we moved in to our new building Menara CIMB direction. in KL Sentral, and I am happy to say that the green aspects of the building and our own corporate philosophy have reduced our carbon footprint: we CIMB Foundation continued its important work in building a stronger, now use less paper and less printing materials. Our newly formed Energy better Malaysia through Community Development, Sports and Education. Management Committee is also tasked to oversee a further reduction in In 2014, 65 community initiatives, including Project Brickfields, were given greenhouse gas emissions. grants amounting to RM3.3 million for projects ranging from breeding male freshwater prawns, theatre programmes in schools to conserving the nesting I would like to thank the Board of Trustees of CIMB Foundation and the grounds of turtles on Lang Tengah Island. Board of Directors for their help and advice in developing our long-term sustainable vision to keep us at the forefront. In sports, our juniors continued to excel in squash, winning at the British Junior Open, the Japan Junior Open and clinching the Team Gold at the This sustainability report is dedicated to all of you. I hope you find it Asian Games. Thirteen of our junior footballers were selected for the Harimau informative and useful. Muda programme, the pathway to national football glory. Our education programmes continued to encourage primary school pupils to enjoy using English with spelling bees and Scrabble competitions, all with the goal of passing their UPSR examinations. 2014 was also the year we sponsored ‘SuperMokh the Musical’, a theatre production based on Mokhtar Dahari, an icon of Malaysian football. Those were the glory days of Malaysian sport and society, a message that came through loud and clear across the stage. ‘The Color Run’ also made its debut in Malaysia in 2014, with clouds of colour dusting the lawns of NAZIR RAZAK Perdana Botanical Garden. This was a fantastic way of bringing all parts of Chairman Malaysian society together. Sports, I have always said, is a great unifier. 002 CIMB & YOU CHAIRMAN’S MESSAGE 003 SUSTAINABILITY REPORT 2014 CIMB GROUP HOLDINGS BERHAD A MESSAGE FROM THE GCEO 004 CIMB & YOU G4-1, G4-22, G-29 LONGEVITY IS THE KEY TO ANY BUSINESS. A BUSINESS MUST BE ECONOMICALLY, ENVIRONMENTALLY AND SOCIALLY SUSTAINABLE TO THRIVE IN TODAY’S BUSINESS ENVIRONMENT. At CIMB, the Board and management team consider sustainability to be of As a people-centric company, we continue to promote a high-performance paramount importance in our business operations. Our values and strategy workplace culture that attracts and develops talent and promotes teamwork. are aligned with responsible and ethical business policies and practices to Our training and development programmes have received noteworthy improve stakeholder engagement and drive sustainable growth. Such values recognition from our peers, which is a testament to our commitment to and principles are applied in all our dealings with customers, suppliers and people management and innovation. Awards received include the Best other stakeholders. CIMB’s award for Exemplary Environmental, Social and Management Trainee/Graduate Programme, 2nd Runner-up for The Graduate Governance Practices from the Minority Shareholder’s Watchdog Group Employer of the Year and finalist for the Most Popular Graduate Employer confirms our commitment to sustainability, good governance and ethics. in Banking and Financial Services. CIMB also won the Best Internship Experience and Best Innovation on Campus awards. As a responsible corporate citizen, we are aware of the role we need to play to ensure the economic and holistic health of the communities that In the marketplace, we continue to work with our supply chain partners to surround our areas of operation. To that end, CIMB set up CIMB Foundation deliver the highest quality to customers, ensuring that they are well served in 2007 to look after the very people whom we serve, thus ensuring that and that the products we recommend are a perfect fit. We are committed to not only our customers are looked after, but also their communities. Our customer satisfaction, truthful advertising, complying with applicable laws and flagship programme, Community Link, is designed to connect our branch regulations as well as a high standard of ethical behaviour and service. network with the community at large. Branch management and staff go out to the community to gauge their requirements and design projects that are I believe that preserving our environment should be at the top of every appropriate. These projects are then fully funded by the Foundation. corporation’s list of priorities. Even though our environmental footprint is small, CIMB has put in place processes that will help to decrease our footprint even Having recently moved our corporate headquarters to Menara CIMB in further. Many of these can be seen in our new Menara CIMB offices, with KL Sentral, CIMB Foundation and the Group’s Corporate Responsibility their motion-sensitive lighting, energy saving bulbs and a move away from Department have been busy building relationships with our Brickfields centralised air conditioning to split units. We continue to monitor our materials neighbours. Project Brickfields aims to raise the living standards of Brickfields use, emissions, waste disposal and recycled materials, to ensure that our residents through a variety of programmes such as our collaboration with minimal carbon footprint remains so. MyKasih Foundation for a bursary programme for school pupils from low income families. Just as importantly, our programmes in Brickfields pay I would like to thank the Board of Trustees of CIMB Foundation for their particular attention to the needs of the disabled, many of whose headquarters guidance and active participation in the Foundation’s initiatives. I also take are located in Brickfields. CIMB Foundation also runs futsal programmes at this opportunity to thank the CEO of CIMB Foundation, Raja Noorma Othman Cruyff Court in Brickfields for the blind, the physically and mentally disabled for her dilligence and my colleagues across our network who have worked and those suffering from cerebral palsy. hard to create long-term value and helped build our sustainable corporate responsibility vision. Across the region in Indonesia, Singapore, Thailand and North Asia, CIMB has been very active in running a wide variety of CSR programmes aimed at community development with particular emphasis on education. CIMB Niaga runs an excellent financial literacy programme for young school children, whilst CIMB Thai pays special attention to ICT knowledge for the wider community. The recent floods on the East Coast of Peninsular Malaysia were a challenge for all parties involved in relief efforts. CIMB pitched in early with financial TENGKU ZAFRUL AZIZ support to Mercy Malaysia and the Malaysian Red Crescent Society Group Chief Executive Officer which distributed emergency relief supplies to the affected areas. CIMB Foundation organised a food donation drive which culminated in 78 tonnes of food donated by the public being shipped across to those who needed supplies. Once the waters had receded, our involvement continued through partnerships with NGOs to rebuild homes and with University of Malaya to install tube wells for clean, drinking water. 005 SUSTAINABILITY REPORT 2014 CIMB GROUP HOLDINGS BERHAD G4-24, G4-25, G4-26, G4-27 Relationship with Our Stakeholders Stakeholders have the capacity to positively and negatively influence the Group’s activity. Each year, CIMB identifies the types of risk to which it is most exposed and categorises stakeholders based on the perceived level of impact. CIMB has dedicated channels for dialogue with each stakeholder. This approach improves information exchanges and helps CIMB adopt management methods that address stakeholder issues. CIMB’s communication channels are the preferred means of dialogue and involvement with the public. CIMB has developed close relationships through these channels which help anticipate solutions, mitigate possible negative impacts, identify weaknesses and define improvement plans for the mutual benefit of all parties.