Environmental Forest Risk Does the company have systems and controls to ensure no illegal deforestation takes place in the course of their operations? Biodiversity Risk Does the company have systems and controls to ensure biodiversity is protected in areas of their operations? Waste Management Does the company have systems and controls to monitor and dispose of waste in accordance with regulatory requirements? Post-operations remediation Does the company have systems and controls to ensure their facilities are properly dismantled and no harmful or hazardous waste is left on site post-operations? In 2022, we have carried out an initial validation of certain financing cases that were deemed material with higher environmental or social risks. The high-risk sectors assessed include: Sector Key Highlights Agriculture (Palm Oil) Customers involved in agriculture may be involved in specific activities i.e., plantation development or in the entire value chain of palm oil production, including refining and distribution. Companies in the sector are expected to comply to regulatory requirements including MSPO certification. Oil & Gas Customers involved in oil & gas include those that are focused on extractive activities, i.e., upstream and those involved in downstream refining and distribution. Mining Customers involved in primary extractive mining for minerals on land and in riverine areas where there are potential impacts towards the climate change, local communities and on natural ecosystems. Heavy manufacturing Clients involved in heavy manufacturing were chosen based on several material factors including the environmental impact of the manufactured end product and the scale and vicinity of the operations to environmental features including forest, rivers and marine areas, and its impacts to local communities. Real Estate Development & Construction Clients involved in real estate or construction were chosen based on the scale of development projects and location of the projects based on their vicinity to environmental features including forest, rivers and marine areas, and its impacts to local communities. Other Sectors Various other sectors were selected based on their material value of exposure to BIMB, including education and financial services providers. In general, these customers were assessed for environmental and social impacts internally to their operations and externally in their supply chain and in terms of end consumer dealings. Sustainability Statement Bank Islam Malaysia Berhad 149 01 05 03 07 02 06 09 04 08
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