CLIMATE RELATED KPIs The Group measures its performance using performance scorecards with financial and non-financial KPIs. These scorecards are set at the divisional level, including sustainability and climate-related KPIs, and cascaded down to respective functions. 2. Climate Strategy Integrating sustainability and climate-related considerations is central to the Group's strategic agenda, reflecting a commitment outlined in the Group Sustainability Plan. This plan harmonises with our LEAP25 Strategic Plan, illustrating an intentional approach to incorporating sustainability and climate considerations into the Group's strategy. Recognising the potential financial and reputational impacts of climate change, Bank Islam is committed to proactively managing climate-related risks and ensuring the long-term sustainability of our business. This comprehensive strategy focuses on understanding, assessing, and mitigating these risks across all aspects of our operations. Through our analysis of data and insights from climate risk assessments, we can discern sectors and customer groups that have a higher exposure to climate risk, considering both physical and transition risk factors. Through our financing strategy and product offerings, the Planning & Sustainability team works alongside Business Units across the Corporate, Commercial, SME and Consumer segments to best identify targeted sustainability-linked offerings to our customers. Aiming for transition to a low-carbon economy, we are focused on empowering stakeholders, particularly our financing clients, to reduce emissions and navigate the challenges posed by climate change effectively. We are actively engaging in strategies to minimise our environmental impact and strengthen our defences against climate-related vulnerabilities. Our approach to fostering a sustainable future is organised through a series of focused pillars. To mitigate exposure to high sustainability risk sectors and to end financing of coal-related activities by 2030 To double Shariah-ESG assets to RM4 billion by 2025⁹ To achieve carbon neutral position in operational conduct (for Scope 1 and 2 emissions) by 2023 Our Targets ⁹ At time of publication, the Group had approved RM4.5 billion in Shariah-ESG assets as at end of FY2023 and is currently revising and recalibrating our sustainable financing targets. 165 1 2 3 4 5 6 7 8 9 www.bankislam.com SUSTAINABILITY STATEMENT
RkJQdWJsaXNoZXIy NDgzMzc=