Fair Finance Cambodia Releases Bank Policy Assessment Highlighting ESG Gaps in Cambodian Banking Sector
Fair Finance Cambodia (FFC) announced the findings of 2023 Bank Policy Assessment, which evaluated the environmental, social, and governance (ESG) commitments of eight leading banks in Cambodia including ABA, ACLEDA, CAMPU, CANADIA, CIMB, Bank of China, KB-Prassac, and Sathapana.
Conducted in late 2024 using the Fair Finance Guide International (FFGI) methodology, the assessment reveals both progress and persistent gaps in sustainable finance practices across the sector.
The study examined eight key themes including climate change, corruption, human rights, labor rights, nature, taxation, transparency and accountability, and gender equality. The results show that taxation and corruption policies scored highest, while nature-related commitment scored lowest, highlighting weak environmental stewardship. CIMB stood out as the strongest performer with an average score of 2.4 out of 10, setting a benchmark for sustainability reporting. However, transparency and accountability showed modest improvement since 2020 but dipped slightly in 2023, reflecting incomplete progress.
Compared with previous assessment, climate change awareness of the assessed banks has improved slightly, with scores rising from 0 in 2020 to 0.6 in 2023. Yet, human rights and gender equality remain critically under-addressed, with persistently low scores across all banks. Tax compliance stagnated, while labor rights saw initial improvements but declined in 2023, pointing to enforcement challenges.
Despite gradual progress, the assessment highlights systemic challenges including limited public disclosure, weak regulatory enforcement, and inconsistent implementation of ESG standards. While CIMB sets a benchmark, most banks must accelerate their adoption of sustainable finance practices to meet Cambodia’s development goals.
