EMISSIONS AND ENVIRONMENTAL IMPACT Bank Islam has committed to addressing our impacts on climate change, both through our customers as well as our operations. The impact of climate physical and transition risks is wide-ranging across sectors, with tangible impacts on communities and ecosystems in the short- and long-term. To this end, the Group has committed through our Sustainability Commitments to initiate, develop and implement climate strategies that address climate risk and opportunities in our business. Among the climate-related focus areas as part of our Commitments include addressing carbon intensive sectoral exposures, increasing assets with positive climate impact, and working towards achieving a carbon neutral position in operational conduct (Scope 1 and 2 emissions) by 2030. Among the key initiatives we have undertaken include identifying and assessing our climate-related risks and impacts since 2021, followed by a focus on implementing requirements as outlined in the BNM CRMSA, CCPT and TCFD Recommendations. We implement strategic initiatives to minimise our carbon footprint in our own operations, including optimising energy usage in buildings and promoting digital transactions. By actively pursuing sustainability and climate efforts beyond regulatory compliance, we aspire to be able to support our customers' climate transition journey in the long-term. The Overall Approach At Bank Islam, we have set a target to achieve a carbon neutral position in operational conduct (Scope 1 and 2 emissions) by 2030. We have already established baseline emissions for both Scope 1 and 2 in 2023 and are actively implementing strategies to meet this goal. Our commitment to sustainability was recognised by the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), who entrusted us with leading the development of the third edition of the Value-based Intermediation Assessment Framework (VBIAF) Sector Guide on Waste Management. They appointed us to lead the development of the third edition of the VBIAF Sector Guide on Waste Management. This collaborative effort has led to the widespread dissemination of the guide across the industry. OUR MULTI-PRONGED APPROACH ENCOMPASSES: Reducing Our Carbon Footprint: This includes adoption of renewable energy sources, enhancement of energy efficiency across our operations, and providing innovative financing instruments tailored to support the adoption of low-carbon transport solutions. We further proactively reduce our footprint by procuring environmentally friendly products and services. Minimising Our Environmental Impact: This priority encompasses responsible resource management, waste reduction, and water conservation. Recognising the ongoing effort required to support the shift towards a low-carbon economy, we leverage continuous digitisation, particularly to reduce paper usage. Advancing Policy and Awareness: We actively engage stakeholders to raise awareness of climate change and promote actionable solutions. Collaborative efforts deepen collective understanding and incite proactive responses. We have initiated engagement with clients on climate-related risk management, provide products to empower SMEs to navigate environmental challenges, and foster dialogue across the business ecosystem. 118 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 Environmental Impact
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