Bank Islam Integrated Annual Report 2024

MEMBERSHIPS United Nations Global Compact (UNGC) Malaysia and Brunei Bank Negara Malaysia’s (BNM) Joint Committee on Climate Change (JC3) We benefit by: • Leveraging networking opportunities and sustainability practice-sharing sessions with industry peers. • Accessing global and local resources focused on climate action, resource efficiency, diversity, SME empowerment, and other key topics. • Enhancing our sustainability strategies by applying insights gained from these resources. As a founding member, we actively participate in four JC3 sub-committees (SCs): SC1: Risk Management SC4: Engagement and CapacityBuilding SC2: Governance SC5: Bridging Data Gaps In addition, we contribute to JC3 SC1’s Physical Risk and Transition Risk Working Groups, which play an important role in formulating industry-wide climate risk strategies. We also co-led the Climate Change and Principle-based Taxonomy (CCPT) Implementation Group (CCPT IG) with Etiqa Insurance and Takaful from June 2023 to September 2024. Before transitioning leadership to HSBC and Hong Leong Bank, we led efforts to advance industry-wide adoption of the CCPT and demonstrated leadership in sustainable finance. Further to this, we participated as a panellist in BNM’s “Climate Risk Stress Testing (CRST) in Malaysia” workshop, sharing our CRST practices and facilitating industry knowledge exchange. Key milestones achieved include: • Publishing simplified Due Diligence Questionnaires (DDQ) with SME-specific guidance notes. • Co-leading the February 2024 CCPT DDQ Workshop with BNM, the World Wildlife Fund (WWF), and CCPT IG members to enhance implementation and address challenges. PARTNERSHIPS Malaysian Green Technology and Climate Change Corporation (MGTC) Through our strategic partnership with MGTC, we: • Accelerate green financing for SMEs, with RM150 million allocated under the SME SMART Eco Financing Programme-i (ECO) and the Low Carbon Transition Facility (LCTF). • Provide advisory and training services to facilitate the adoption of green technologies and sustainable business practices amongst SMEs. • Drive sustainability awareness and encourage SMEs to integrate sustainable practices into their operations. • Promote the MyHIJAU Mark Certification, supported by cross-branding on our SMEXpert mobile application, to recognise environmentally friendly products and services. 113 www.bankislam.com 01 02 03 04 05 SUSTAINABILITY STATEMENT 06 07 08 09

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