Meanwhile, the management is responsible for the day-to-day implementation of our sustainability strategy, ensuring its integration into all business decisions and operations. Key committees support the management in achieving its objectives: In FY2024, we enhanced our sustainability governance framework with the appointment of our GCSO, underscoring the significance of sustainability considerations in strategic decision-making. The GCSO leads the Group Sustainability Division, which takes the lead in developing and implementing our Sustainability Plan and ensuring alignment with our sustainability commitments. The Group Sustainability Division is also responsible for coordinating and monitoring the Bank’s sustainability initiatives, including climate-related initiatives, against the targets. Other responsibilities of the division include integrating climate considerations into our strategic frameworks, managing greenhouse gas (GHG) data across all scopes, and enhancing sustainability opportunities and initiatives in collaboration with key divisions. Recognising the critical role of specialised expertise in driving our sustainable finance agenda, we have also appointed a dedicated Head of Sustainable Financial Solutions to steer our sustainable finance targets and drive the alignment of our financing portfolio and sustainability goals. The Head of Sustainable Financial Solutions reports to the Group Chief Business Officer of Institutional Banking, with dotted line reporting to the GCSO. We also strengthened our climate risk management capabilities with dedicated ESG and Climate Risk Department, established in FY2021 and FY2023 respectively. In FY2024, the Climate Risk Department was integrated into relevant business-as-usual (BAU) risk disciplines within the Group Enterprise Risk Management (ERM) framework, fostering seamless climate risk management practices across the organisation. Dedicated subject matter experts within these risk disciplines serve as a centre of excellence, driving the embedding and integration of climate risk management principles. Meanwhile, discussions on climate change remained a key focus for our Board and management committees throughout 2024, playing a pivotal role in shaping the strategy and execution of numerous projects and initiatives. These actions were aligned with our sustainability goals, reinforcing our ongoing commitment to addressing climate change in a proactive manner. Our Progress in 2024 Management Sustainability Committee (MSC): Oversees the execution of the Group’s sustainability and climate strategy, including formulating and monitoring climate strategy, targets and the transition plan. Management Risk Control Committee (MRCC): Oversees and ensures the effective management of key sustainability and climate-related risks. Climate Risk Committee (CRC): A sub-committee of the MRCC focused on the oversight of climate-related risk management, including the development of tools and methodologies for risk identification, quantification, management, monitoring, and reporting. Sadaqa House and Zakat Committee (SHZC): Reporting directly to Shariah Supervisory Council, oversees the Group’s social finance commitment. The committee independently directs and guides the management, operations, and performance of Sadaqa House, spearheading the Group's social finance agenda. Each member of the management is responsible for driving sustainability and climate considerations within their respective business areas. This ensures that sustainability and climate responsibilities are deeply embedded across all divisions of the bank. Ultimately, through this strong governance structure, we have gained an in-depth, Group-wide understanding of our sustainability and climate-related risks and opportunities, enabling a more nuanced approach to managing our impacts over the long-term. 117 www.bankislam.com 01 02 03 04 05 SUSTAINABILITY STATEMENT 06 07 08 09
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