Governance The Board holds ultimate responsibility for overseeing all sustainability related matters concerning the bank, including climaterelated matters. It is supported by the management, which is responsible for the implementation of sustainability strategies and initiatives on a day-to-day basis. Our sustainability governance structure, illustrated on page 116 of this report, defines our approach to managing sustainability and climate-related initiatives across the bank. For more information, please refer to the Sustainability Governance section on pages 116-118. Strategy Unlocking Opportunities and Driving Growth in Climate Transition Our sustainability approach, which includes climate-related initiatives and considerations for nature and biodiversity, is guided by Maqasid Shariah and the VBIAF principles. This ensures that our financial decisions are aligned with ethical, sustainable, and responsible practices. By thoroughly understanding our climate-related risks, we aim not only to safeguard our business and stakeholders but also to identify growth opportunities that enhance our resilience in the transition to a low-carbon economy. In line with this, climate-related considerations have been integrated into our strategic planning, risk management, product development, and operational processes. This has led to the incorporation of innovative financial solutions within our portfolio, enhancements to our risk assessments, and the adoption of sustainable practices across our operations. Our key focus areas include: To meet the growing demand for sustainable financial solutions and navigate transition risks, including evolving regulations that drive greater demand for green financing, we are actively developing and expanding our portfolio of green and sustainable financial products. The actions we are taking include: • Expanding financing for renewable energy projects, including solar and minihydro projects. • Increase holdings of SRI Sukuks to support sustainable investments. • Scaling financing for hybrid and electric vehicle (HEV) adoption. • Introduce green investment products, such as ISIA 2.0. • Broadening financing for projects that generate positive social impact, in alignment with the UNSDGs. • Launching the Shariah Sustainable Equity Fund in partnership with NOMURA to drive sustainable investment growth. For more information on our sustainable financing products and solutions, please refer to the Sustainable Products and Services section on pages 111-112. Sustainable Financial Solutions 127 www.bankislam.com 01 02 03 04 05 SUSTAINABILITY STATEMENT 06 07 08 09
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