Material Matters are crucial for enhancing stakeholder value creation, offering a roadmap for strategic decisions that align with sustainability goals and stakeholder expectations. In 2023, Bank Islam’s inaugural materiality assessment marked a pivotal step towards identifying and prioritising sustainability issues critical to our operations and stakeholder interests. MATERIALITY PROCESS & REALIGNMENT In 2023, we conducted a comprehensive analysis and engaged with stakeholders to identify the most critical environmental, social, and governance (ESG) topics for our company. We benchmarked these topics against leading standards like GRI, FTSE4Good, and Bursa Malaysia’s guidelines. This process resulted in a materiality matrix, which highlights key areas like economic performance and climate change as “Material Matters” that require our focus. Reflecting on the insights from 2023 and internal deliberations, we refined these topics for this year’s report. We narrowed our focus from 15 initial topics to 11 key areas, ensuring a more strategic approach and increased relevance to our stakeholders. The realignment process entailed several significant adjustments, including merging topics for cohesion, and renaming topics for clarity. This iterative refinement underscores our commitment to a dynamic and responsive sustainability strategy. Updates To Our Material Matters Economic Environment Social Governance 1 Sustainable and Responsible Finance 2 Customer Experience 6 Emissions and Environmental Impact 10 Employee Well-being, Health and Safety 3 Talent and Development 7 Community Empowerment and Social Finance 11 Diversity and Inclusion 4 Good Governance and Conduct 5 Data Privacy and Security 9 Climate Risks and Opportunities 8 Sustainable Supply Chain Sustainable and Responsible Finance: Renamed following the merger of ‘Sustainable Economic Performance’ and ‘Purposeful Financial Services’, this material topic reflects a commitment to integrating economic performance with social and environmental impact considerations. Collaboration & Partnerships: This material topic has been dissolved and its aspects have been incorporated into other areas to strengthen cross-functional collaboration and partnerships. Emissions and Environmental Impact: Renamed following the merger of ‘Energy and Climate Change’ and ‘Environmental Stewardship’, this revision aims to create a unified approach to carbon emissions management and environmental stewardship. Employee Well-being, Health, and Safety: Expanded to include ‘Labour Standards and Practices’ to encompass a broader focus on employee wellness and safety. Community Empowerment and Social Finance: The previous ‘Community Enrichment’ material topic is renamed to better reflect its focus on enabling community empowerment and driving inclusive finance. Sustainable Supply Chain: Formerly known as ‘Social (Supply Chain)’, it has been renamed and reclassified to align with broader governance principles. Good Governance and Conduct: Previously ‘Corporate Governance and Business Ethics’, it has been renamed to reflect the commitment to ethical banking and governance. Climate Risks and Opportunities: Reconceptualised from ‘Risk Management’, this material topic is now focused on emphasising the management of climate-related risks and identifying opportunities. Bank Islam’s Updated Material Matters 48 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 Material Matters
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