Supporting the Board in effectively carrying out its functions are: The Board Strategic and Sustainability Committee (BSSC) oversees the Bank's overall sustainability strategy, which includes monitoring the development and implementation of climate strategies and opportunities. The Board Risk Committee (BRC) oversees the effective management of the Bank’s risks, which includes sustainability related risks. Other Board level committees such as the Board Financing Review Committee, Board Nomination & Remuneration Committee, Board Audit & Examination Committee are responsible for oversight on specific aspects of sustainability matters that is within their current responsibilities. The Management Sustainability Committee (MSC) oversees the execution of the Group’s sustainability and climate related matters, including formulating and monitoring the Group’s sustainability plan. The MSC reports to the BSSC. The Management Risk Control Committee (MRCC) oversees and ensures the effective management of key issues relating to the management of sustainability and climate related risks. The MRCC reports to the BRC. In 2023, the Bank established a dedicated Climate Risk Committee (CRC) as a sub-committee of the MRCC, focusing on oversight of climate related risk management, including development of tools and methodologies for risk identification, quantification, management, monitoring and reporting, and building climate risk capacity. Other relevant management committees such as the Financing Committees and the Underwriting and Investment Committee also have specific aspects related to climate within their current responsibilities. Board-Level Committees Management Level Committees Overall Approach to Addressing Climate Risk Guided by the BNM Climate Change and Principle based Taxonomy (CCPT), Task Force on Climate-related Financial Disclosures (TCFD) recommendations and BNM’s Climate Risk Management and Scenario Analysis (CRMSA) requirements, we take a comprehensive approach towards risk identification, assessment, and mitigation. As part of this commitment, we enhanced client onboarding towards more comprehensive climate risk assessments. 1. Climate Governance Driven by the Board's mandate to provide the highest level of oversight on the Group’s commitment to addressing climate change and our aspirations on environmental and social responsibility, Bank Islam has enhanced its governance structure over the past year. This strengthened framework establishes a multi-tiered governance structure that ensures clear roles and responsibilities for sustainability and climate action. The Board is responsible for safeguarding stakeholders' interests and creating long-term value for the Group, taking into consideration sustainability and climaterelated risks and opportunities. For details on our Sustainability Governance, please see page 106. 162 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 Governance
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