BOARD OF DIRECTORS (BOD) MANAGEMENT RISK & CONTROL COMMITTEE (MRCC) BOARD RISK COMMITTEE (BRC) Sustainability Statement Bank Islam Malaysia Berhad 113 01 05 03 07 02 06 09 04 08 Sustainability Governance 1. Board Oversight on Climate Risks and Opportunities Overall responsibility and accountability for the Bank’s strategic climate leadership ambitions. •• Board mandate expanded to incorporate climate risks and opportunities into the risk agenda, strategy, and risk appetite. •• Board Risk Committee (BRC) oversees the organisation’s overall risk tolerance, management of financial and non-financial risk issues. ESG risks including climate risk alongside the Bank’s risk appetite. The MRCC is the designated committee to review and recommend climate-related submissions to the BRC. In addition to their existing roles and responsibilities: •• The methodologies and results of the Climate Internal Stress Test, including impacts on retail and wholesale credit portfolios. •• Review of the climate risk scenarios as well as the development of the climate risk management framework and policies. 2. Management’s role in assessing and managing Climate Risks and Opportunities BOARD OVERSIGHT OF SUSTAINABILITY AND CLIMATE-RELATED MATTERS: We understand the importance of corporate governance and the Board's responsibility in implementing our sustainability and climate strategy. Therefore, BIMB’s new Sustainability Governance Structure incorporates sustainability and climate considerations in Board mandates and relevant committees. This means the Board of Directors oversees the Bank and now includes sustainability and climate considerations in its mandate, strategy and risk appetite. The BSSC oversees the Bank's sustainability strategy, including carbon footprint management, ESG projects and initiatives, and sustainability initiatives by segment. The BRC oversees the Bank's risk tolerance, financial and non-financial risks, and ESG risks, including climate risk. GOVERNANCE STRUCTURE
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