Page 75 - Full Book_24.4.2021

In Retrospect

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The Will to Suceed

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Championing Green Technology and ESG
The sustainable approach of responsible finance also serves as a Responsible investing is fully entrenched in Takaful Malaysia’s
catalyst for the BHB Group to adopt sustainable business practices investment policy. An “Impact Investment” approach has Achieving a Leading Repute
and revolutionise into a climate-friendly industry player dedicated to been incorporated to provide a positive impact on society
meeting the needs of its stakeholders by taking proactive measures as a whole and to increase brand value towards ensuring
to preserve the environment for future generations. The Group social and environmental sustainability. Through the |
fosters responsible environmental protection to reduce the impact implementation of the “Impact Investment” approach, an
of our business operations on the environment, as well as tactically assessment of the investment opportunities is performed
integrate sustainability into our subsidiaries’ business operations in by taking into account the social and environmental effects
an economically, environmentally, and socially sustainable manner. and utilisation of ESG data in investment decision-making. Paving the Way for a Sustainable Future
The FTSE4Good Bursa Malaysia Index (“F4GBM”) is adopted
Bank Islam continued to build a reputation as a Green Finance in this assessment, together with KLCI and Shariah Emas
specialist with its focus on Green Financing and management of Index and investment in Green Sukuk/Bond issued under the
ESG-based Sukuk. The Bank achieved a total green financing Socially Responsible Investment (“SRI”) framework.
portfolio of over RM2.2 billion, with RM1.3 billion for renewable
energy and RM0.9 billion for other green financing initiatives. An innovative green focused highlight in 2020 was the launch
On the Sukuk front, it secured Joint Lead Manager (“JLM”) role of a personal financing by Bank Islam, in collaboration with 71
for Air Selangor’s RM1.1 billion Sukuk upsizing exercise, and was Tenaga Nasional Berhad (“TNB”), for GSPARX solar package
appointed Joint Lead Arranger/Manager or Solar Arranger for ESG on 1 July 2020. This move was aimed at encouraging retail
Sukuk by securing a mandate from a State water operator for a consumers to switch to solar power for their electricity needs,
proposed RM10 billion Sukuk programme; a mini hydro operator for as part of the Bank’s green financing journey that focuses
a proposed RM850 billion Sukuk programme; a solar farm mandate, on increasing the number of Green Homes and production
and for the education sector. of renewable, sustainable and cost-efficient energy in the
country. Through this collaboration, Bank Islam provides Adhering to the Best Governance Practices
Under its subsidiary BIMB Investment Management Berhad an attractive offer of 100% financing for the purchase
(“BIMB Invest”), the Bank’s ESG Sukuk Fund exceeded its benchmark of GSPARX’s solar PV package together with residential
target of 5% to deliver a 6% income distribution yield in December packages for free maintenance, product and workmanship
2020. The Fund combines both Shariah-compliant principles and warranty, 24 hours online monitoring, as well as after-sales |
Environmental, Social, and Governance (“ESG”) factors in its selection services.
criteria, and is assessed on their performance on the normative
principles of the United Nations Global Compact (“UNGC”), such
as Human rights, Labour rights, Environment and Anti-Corruption. Laying the Foundation for Financial Growth
ESG as well as UNGC scores were also implemented as criteria for
corporate financing and funds during the year towards encouraging
businesses to adopt ESG initiatives as well as sustainable and socially
responsible policies, and to report on their implementation.
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Additional Information & Disclosure Summary

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24 th AGM Information