Why is this important? Failure to uphold our ethical values and code of conduct will result in erosion of trust among the customers, investors and the public, and will lead to the weakening of the Group’s reputation and credibility. Non-compliance will result in legal liabilities, fines or regulatory penalties which may affect the Group’s stature and its long-term growth. Instances of conflicts of interest or ethical dilemmas may arise when balancing the need of achieving financial growth and fulfilling sustainability objectives. Risks Implement robust systems to prevent bribery and corruption, which include a strict Group Anti-Bribery and Corruption Policy (GABCP) that enforces ethical behaviour among all employees. Our Approach Focus on creating robust governance frameworks that help mitigate the negative impacts presented by sustainability-related challenges and protect the Group’s long-term viability. Ensure alignment with the universally-accepted UNSDGs, providing the Group with a structured framework to actively engage in global efforts aimed at addressing pressing sustainability challenges. Opportunities We operate in compliance with legal and ethical standards, which not only mitigates the risk of legal liabilities and reputational damage but also reinforces Bank Islam’s reputation and credibility. This commitment is crucial for establishing trust with stakeholders, customers, and the broader community. Business Context GOVERNANCE GOOD GOVERNANCE AND CONDUCT For more information on Good Governance and Conduct, please see pages 155-158. Why is this important? Potential exposure to ESG risks ranging from carbon emissions to potential labour violations. Risks Redefine our business practices to advance its commitment towards addressing sustainability considerations within its supply chain. This includes the integration of digital innovation, environmental responsibility, and ethical sourcing into our procurement process. Utilise data analytics to identify vendors who align with our ESG principles, giving priority to those with robust environmental practices, ethical labour standards, and active community engagement. Pursue active collaboration with stakeholders to develop a resilient and sustainable supply chain. Our Approach Implement an enhanced due diligence process for our vendors with the objective of identifying potential vulnerabilities within our supply chain. Promote enhanced collaboration with suppliers to drive positive transformations throughout the supply chain, emphasising efficiency, transparency, and innovation while strengthening risk management practices. Opportunities We prioritise efficient and resilient procurement practices, which is essential for sourcing materials and services from local and sustainable suppliers whenever possible. This approach aligns with sustainability and corporate responsibility principles, while ensuring the efficiency of our supply chain. Business Context SUSTAINABLE SUPPLY CHAIN For more information on Sustainable Supply Chain, please see pages 152-154. 54 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 Material Matters
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