BIMB’s Key Sustainable Finance Objectives 1. To align our financing portfolio towards the targeted RM4 billion in green financing by FY2025 To achieve this, we will prioritise climate-positive financing across corporate, commercial, SME, and retail financing products and services. These financing activities will focus on renewable energy, green buildings, electric and hybrid vehicles, sustainable public transportation, sustainable agriculture, low-carbon power generation, lowemission manufacturing, and other similar areas. 2. To manage and limit financing towards carbonintensive sectors, where we have started by committing to phase out and end financing of coal-related activities by 2030 In line with this commitment, we have already taken the first step of phasing out and ending financing of coal-related activities by 2030. We will continue to identify carbon-intensive exposures through our financing activities and develop mitigation plans to improve the climate risk profile of our financing portfolio. Our efforts will include engaging clients to improve their climate policies and commitments to reduce carbon emissions in sectors such as oil & gas, mining and quarrying, agriculture, manufacturing, real estate, and construction. 3. To encourage climate-positive initiatives, commitments and projects through our ESG roadmap and stakeholder engagement We will continue to engage with various stakeholders, including regulators, government, customers, industry bodies, and NGOs, on sustainable practices, climate-friendly commitments and targets, and supporting climate-positive projects. Our efforts will include engaging with progressive proponents of climate-friendly strategies, including those that seek to reduce forest and biodiversity impacts, encourage marine conservation, improve social outcomes, reduce carbon emissions, and align with stronger ESG commitments and practices by corporates and SMEs. Progress in 2022 1 Promoting Financial Inclusion We understand that achieving financial inclusivity requires a comprehensive approach, and we are committed to tackling the obstacles that impede our progress. Therefore, we monitor key challenges to financial inclusion, allowing us to create and implement targeted solutions that benefit the community. Mobilised our branches to provide better customer touchpoints and handle inquiries from microfinance customers. Developed campaigns to educate individuals on the benefits of financial independence and encourage them to take steps towards achieving their financial goals. Untapped and unpenetrated markets due to limited access and outreach to the community The mentality of targeted community segments, with some individuals unwilling to improve themselves and comfortable receiving assistance from zakat authorities. Challenges Faced Our Response 2 Sustainable Products, Services and Solutions We offer a range of sustainable products and services that align with Shariah principles, to meet the growing demand for socially environmentally responsible financial solutions in Malaysia. Our sustainable offerings and solutions include: Home Solar Panels and Hybrid/Electric Vehicles (HEV) We offer clients the option to purchase solar panels and HEVs as part of their overall financing package, thus promoting the development of Malaysia’s low-carbon market. Impact & Achievements: 127 HEV units disbursed, totalling RM17 million For more information, see page 70 <consumer banking>. Sustainability Statement Bank Islam Malaysia Berhad 117 01 05 03 07 02 06 09 04 08
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