Indeed, these diversities allow for different perspectives and knowledge to be considered in decision-making. EMBEDDING SUSTAINABILITY INTO OUR CORE At Bank Islam, our commitment to sustainability is rooted in our Islamic banking principles, emphasising societal well-being. This foundational ethos has naturally guided our transition toward enhanced sustainability practices, aligning seamlessly with emerging standards and regulations and reinforcing our ambition to be sustainable banking leaders. Our strategic approach to sustainability is encapsulated in our ambitious LEAP25 agenda, targeting RM4 billion in green financing to bolster the green economy by 2025. I am pleased to report that we have surpassed our Shariah-ESG asset target of RM4 billion ahead of schedule, demonstrating our proactive and effective implementation of sustainability initiatives. values and sustainability; and (iv) succession and retention of talents. In addition to the in-house training, our Board also consistently enhances their understanding by attending training organised by external parties on ESG covering the areas of sustainability, climate-related issues, and other relevant areas. Recognising the instrumental role of diversity in fostering innovative leadership and effective decisionmaking, we have actively pursued a more inclusive Board composition. We believe that a truly diverse and inclusive Board will leverage differences in thought, perspective, knowledge, skill, industry experience, age and gender, all of which will ensure that Bank Islam retains its competitive advantage. Our Board is committed to maintaining diversity and inclusion in its composition and decision-making process. Achieving a 30% female representation on our Board this year marks a significant milestone, reflecting our commitment to enhancing the diversity of perspectives, expertise, and experiences at the highest levels of our organisation. As of 31 March 2024, our female representation at the Board level was at 33%, exceeding our 30% target. In terms of age diversity, our Board maintains two distinct age categories, 50 to 60 years and 61 to 70 years, with a balanced mix between the two. We also maintain a good mix of skills and expertise in the current Board composition. The Board’s diverse skill set and areas of expertise allow us to collectively bring a wide range of experience to bear in areas such as finance and accounting, risk management, actuarial science, banking, treasury, technology, and legal matters. Furthermore, in October 2023, we introduced the Ihsan Sustainability Investment Account (ISIA), a pioneering financial product to foster positive social and environmental outcomes alongside attractive financial returns. This account garnered RM1.1 billion in investments, offering clients a stable, short-term investment vehicle that mitigates the volatility typically associated with equities and fixed-income markets. Our partnership with a third party for ESG rating enhancement further underscores our dedication to rigorous sustainability standards. This collaboration will refine our financing framework, enabling a deeper understanding of potential clients’ environmental and social practices before extending financial support and ensuring alignment with our sustainability criteria. We also continued to strengthen our social financing efforts. Through the iTEKAD microfinancing initiative, we have empowered 285 beneficiaries in 2023, driving social upliftment and financial inclusion. We aim to transition zakat recipients to zakat contributors, reflecting our broader goal of creating sustainable economic pathways for the underbanked and asnaf communities. VALUE CREATION FOR STAKEHOLDERS Our approach to a stakeholder economy focuses on delivering tangible value across our network, recognising each stakeholder group’s distinct needs and contributions. Our ethical practices aim to address the expectations of our shareholders, employees, and communities, while placing strong emphasis on the Bank’s financial performance. Exceeded initial target of RM4 billion in green financing to bolster the green economy by 2025 18 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 Chairman’s Letter
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