RISK MANAGEMENT (CONT’D) The Board Investment Committee (BIC) (Cont’d) The BIC plays a crucial role in overseeing investment activities and ensuring they align with an organization’s risk appetite, objectives, and regulatory requirements. When it comes to managing risks, the committee’s responsibilities include (Cont’d): The Board Sustainability Committee (BSC) The BSC is responsible for providing strategic direction and oversight on ESG-related matters. It ensures that the organization integrates environmental, social, and governance principles into its business strategy, operations, risk management, and stakeholder engagement. Statement on Risk Management and Internal Control • Evaluate value-add opportunities and capex projects with a risk-return lens. • Review strategies for underperforming assets, including repositioning or divestment. • Guide the development and execution of the company’s ESG vision, goals, and roadmap. • Ensure ESG considerations are integrated into corporate strategy, investment decisions, and operations. • Promote alignment with national and global frameworks (e.g., UN SDGs, TCFD, ISSB, GRI). • Monitor the REIT’s debt profile, loan covenants, and refinancing schedules. • Ensure prudent leverage and adequate liquidity buffers are maintained. • Provide governance and accountability over ESG matters at board level. • Review the adequacy of ESG policies, structures, and performance indicators. • Ensure ESG roles and responsibilities are well-defined across the organization. • Document risk-related discussions and decisions. • Provide regular risk reports to the Board and Audit & Risk Committee, especially during volatile market conditions. • Review and monitor ESG performance, metrics, and key indicators (KPIs, KRIs). • Oversee the preparation and assurance of the Sustainability Report. • Ensure accurate, transparent, and timely disclosure to stakeholders and regulators (e.g., Bursa Malaysia’s sustainability reporting requirements). 6. Oversight of Asset Management Strategies 1. ESG Strategy & Integration 7. Liquidity & Funding Risk Management 8. Transparent Governance & Reporting 2. Governance and Oversight 3. Performance Monitoring & Reporting 138 AL-SALĀM REIT ANNUAL REPORT 2024
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