1. Accelerating Sustainable Finance Opportunities • Launched SME Smart Eco Financing and the Low Carbon Transition Facility (LCTF) to promote green technology and sustainable business practices. • Introduced Wahdah Home Refinancing with Solar Panel and HEV Vehicle Financing for renewable energy use and sustainable transportation. • Introduced the Ihsan Sustainability Investment Account (ISIA) and a suite of BIMB Investment – ESG Funds for SDG-aligned investing. • Achieved RM4.5 billion in Shariah-ESG assets, demonstrating our dedication to supporting green sectors such as solar power, renewable energy, and sustainable agriculture. 2. Fostering Sustainable Practices and Awareness • Partnered with solar companies including SOLS Energy, Gading Kencana, and Suria Infiniti, to offer Personal Financing-i to our customers interested in purchasing solar PV systems. • Rolled out comprehensive training and development activities focusing on sustainability and climate awareness. For details on our financing instruments, please see “Sustainable and Responsible Finance” on page 109. 3. Climate Risk Management The Bank recognises the clear and present threat posed by climate change. This threat could potentially impact both our customers and our own operations, ultimately affecting our ability to generate long-term value for our stakeholders. A qualitative climate related risk appetite statement (RAS) was established in 2022 to articulate our approach towards implementing climate-related risk management frameworks and climate related targets. We further enhanced our RAS for 2024 to articulate our updated climate related targets and approach to climate stress testing. Our primary focus during this year revolved around developing climate-related risk frameworks in line with BNM's CRMSA requirements. Moving forward in 2024, we will work towards embedding the climate-related risk management frameworks within relevant risk management frameworks and processes. Identifying and Assessing the Impact of Climate-Related Risks Our Group Enterprise-wide Risk Management Policy addresses climate-related risks. The policy defines these risks as potential threats arising from climate change, its associated impacts, and the resulting economic and financial consequences. It further identifies the following sub-risk types: • Physical risk refers to the economic costs and financial losses resulting from the increasing severity and frequency of extreme weather events, longer-term gradual shifts of the climate and indirect effects of climate change such as loss of ecosystem services. • Transition risk refers to the risks related to the process of adjustment towards a low carbon economy, such as changes in public sector policies, legislation and regulation, changes in technology and changes in market and customer sentiment. • Liability risk refers to the risks stemming from parties that are seeking compensation for losses these parties may have suffered from the physical or transition risks from climate change. 166 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 Governance
RkJQdWJsaXNoZXIy NDgzMzc=