Fair Finance Cambodia Releases Bank Policy Assessment Highlighting ESG Gaps in Cambodian Banking Sector

Download Press Release in Khmer

Phnom Penh, Cambodia, March 3, 2026_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. 

FFC emphasizes that Cambodian banks should fully integrate ESG standards into their operations, enhance transparency through detailed and accessible reporting, develop climate risk management strategies and expand green financing products, transform traditional CSR activities into measurable ESG programs, align with international human rights and gender equality frameworks, strengthen compliance with labor laws and anti-money laundering regulations, and improve accountability through stakeholder engagement and regular impact assessments.

“Cambodia’s banking sector is progressive, but at a crossroads. While awareness of sustainability is growing, meaningful impact requires stronger accountability, transparency, and alignment with international ESG standards. Banks must act decisively to ensure inclusive and sustainable development for Cambodia,” said Mr. Saroeun Soeung, Executive Director of the NGO Forum on Cambodia and Member of Fair Finance Cambodia Coalition.  

“At CIMB Cambodia, we believe sustainability is fundamental to building a resilient financial system that advances customers and society. We welcome independent assessments such as this, which help raise standards across the banking sector. While we are encouraged to be recognized as a leading bank among those assessed, we recognize that there is more we can do to support Cambodia’s ongoing national development priorities, including strengthening financial inclusion, enhancing social and environmental risk management, and supporting climate resilience. Guided by our purpose of Advancing Customers and Society, we remain committed to working closely with regulators, clients and communities to contribute to sustainable and inclusive growth in Cambodia” said CIMB Bank representative. 

Established in 2019, Fair Finance Cambodia is a coalition of civil society organizations including Oxfam in Cambodia, The NGO Forum on Cambodia, Cooperation Committee for Cambodia, Transparency International Cambodia, ActionAid Cambodia, SILAKA, Star Kampuchea, and Norwegian People’s Aid. FFC works to advance sustainable finance, mitigate the adverse impacts of cross-border investments, and promote inclusive economic development. It is a member of Fair Finance Asia, a regional network dedicated to ensuring financial institutions uphold social and environmental well-being in their funding decisions.