The Group's approach to managing climate risks and opportunities is spearheaded by each member of the Management team within their respective functions, adhering to the Group’s Sustainability Plan. This ensures that sustainability and climate responsibilities are deeply embedded across all Divisions. The Head of Planning & Sustainability (P&S) plays a crucial role in leading the charge, setting climate-related targets and metrics, and overseeing the execution of the Group’s sustainability and climate strategy. This comprehensive strategy includes managing climate-related opportunities and initiatives, establishing and monitoring the Bank’s greenhouse gas (GHG) emissions, and supporting other units in fulfilling their climate-related duties to achieve the overarching climate strategies. Furthermore, the Group Administration and Property Management Department, guided by P&S, focuses on reducing the Bank's operational emissions footprint. The evolution of the Group's focus on climate change began with the establishment of an Environmental, Social, and Governance (ESG) Department within the Group Credit Management Division in 2021, marking a significant step towards assessing and managing the Bank's exposure to climate-related risks. This momentum continued with the creation of a Climate Risk Department within the Group Risk Management Division in 2023, underlining the Bank’s commitment to leveraging its Group Enterprise-wide Risk Management Policy for effectively monitoring climate-related risks. Throughout 2023, climate change discussions remained at the forefront of Bank Islam's Board and Management Committees, playing a critical role in the strategic development and execution of various projects and initiatives. These efforts were aimed at aligning with the Bank's sustainability objectives, showcasing a continued commitment to addressing climate change proactively. Bi-monthly Bi-monthly Bi-monthly Quarterly Monthly Bi-monthly • The progress of the Group's Sustainability Plan covers the Group's sustainability and climate-related aspirations, commitments, and implementation of sustainability and climate-related initiatives. • The Bank’s progress in climate risk management implementation is in line with BNM’s CRMSA and CCPT requirements, which include the development of frameworks and methodologies for climaterelated risk management. • Sustainability and Climate related regulatory and industry updates including the Group’s alignment with BNM’s Joint Committee on Climate Change (JC3). • CCPT classification reporting encompasses challenges faced, improvements in accuracy and reliability, and the governance process for approval. • The evaluation of climate-related risks impacting the Bank’s portfolio covers both Non-Retail and Retail segments, with a focus on physical risk impacts and exposure to various climate hazards. Meeting Frequency Meetings Where Sustainability/ Climate Matters Were Discussed Sustainability Discussions Committee Board of Directors BSSC BRC MSC MRCC CRC 2 2 6 4 12 3 For details on our Sustainability Governance, please see page 106. 163 1 2 3 4 5 6 7 8 9 www.bankislam.com SUSTAINABILITY STATEMENT
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