Board-Level Oversight: This commitment begins at the highest level with the Board actively shaping sound and responsible policies across the Group. The Board is supported by two (2) key committees: Board Risk Committee (BRC): Assists the Board in ensuring the presence and effective implementation of a sound and robust risk management framework, in accordance with the expectations of BNM. The BRC provides independent oversight of Management's efforts in managing various risk – including credit, market, liquidity, operational (which encompasses legal, compliance, Shariah non-compliance, IT, and business continuity risks), sustainability (including climate-related risks), and other relevant risks – to ensure that the risk management processes are operational and effective for the Group. Board Strategic & Sustainability Committee (BSSC): Oversees, supervises and monitors the implementation of identified key strategic and sustainability matters (including climate opportunities), and any corporate exercises involving the Group. Management-Level Oversight: Execution of our sustainability strategy is carried out at the management level by several committees, ensuring alignment with the Board's directives: Management Risk & Control Committee (MRCC): Oversees risk management across the Group, ensuring that effective systems, controls and resources are in place to execute business strategies and decisions taken by the Board and/or the GCEO. Climate Risk Committee (CRC): A sub-committee of the MRCC, dedicated to overseeing climate-related risk management. This includes developing tools and methodologies for identifying, quantifying, managing, monitoring, and reporting climate risks, as well as enhancing climate risk capacity. Management Sustainability Committee (MSC): Chaired by the GCEO, this committee provides governance and guidance on sustainability-related matters (including climate) for the Bank Islam Group and oversees the organisation's implementation of sustainability initiatives (including the climate transition plan). Management Implementation: The execution and monitoring of sustainability initiatives are spearheaded by the dedicated Planning and Sustainability (P&S) department. Sustainability implementation is driven and guided by setting clear, measurable goals aligned with our overall sustainability strategy. SUSTAINABILITY GOVERNANCE Governance Structure Our sustainability governance structure is designed to embed sustainability at the core of our operations, with Board oversight ensuring accountability and strategic direction. This framework encompasses policies and guidelines that inform our commitment to responsible business practices, influencing decision-making across the organisation to align with our sustainability objectives. Within this structure, environmental and climate considerations are integrated with broader social and governance issues, reflecting a comprehensive approach to ESG. This alignment is particularly crucial for addressing the materiality of climaterelated risks and opportunities, especially for banks. For a detailed exploration of our climate governance aligned with TCFD Recommendations, please refer to the dedicated chapter on page 162. BOARD MRCC CRC BRC BSSC MSC Board-Level Committee Management Level Committee 106 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 Sustainability Statement
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