• Regulatory priorities will likely focus on climate risk-related regulations to meet rising expectations from clients, investors, and stakeholders. • BNM’s Financial Sector Blueprint 2022-2026 aims to create a favourable market environment for green financing and investment. • BNM’s main goal is to promote financial system resilience by improving climaterelated and environmental risk management in the financial sector. BIMB must: • Provide financial solutions that deliver economic and social benefits while promoting people and environmental welfare. • Promote participation from all segments of society, especially disadvantaged and underserved communities, in its financial activities and businesses. Risks: • Balancing investors’ financial interests with ESG priorities could be challenging. Opportunities: • Attracting new customer segments that prioritise sustainability. • Government tax incentives for ESG initiatives. • Enhancing the Bank’s brand equity by integrating ESG elements throughout its vision, operations, and product offerings. Identify opportunities for ESG initiatives and improve our skills to manage associated risks. Stakeholders must advance the following outcomes for the financial sector: • Ensure effective implementation of the Climate Change and Principle-based Taxonomy to assess climate-related risks and promote environmentally sustainable economic activities. • Align policies and procedures to consider climate and environmental risks. • Strengthen the disclosure practices of financial institutions regarding climate risk. Trends Impacting Our Business How It Impacts Our Business Key Risks & Opportunities Our Approach How It Impacts Stakeholders LINK TO Trend 3 CLIMATE CHANGE & SUSTAINABILITY Capitals Material Matters Stakeholders Bank Islam Malaysia Berhad 43 Management Discussion and Analysis 01 05 03 07 02 06 09 04 08
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