Strategic Partnerships and Ecosystem Development Through strategic partnerships, we are upskilling our workforce to deliver greater positive impact for the planet. Actions taken include: • Partnering with governmental and regulatory bodies, such as MGTC, to support capacity building and align with national climate goals. • Collaborating with the Asian Banking School (ABS) to provide the Green Finance Advisor certification to 86 frontline employees from Corporate, Commercial, and SME Banking, as well as credit personnel. Enhancing Climate Resilience through Scenario Analysis Through climate scenario analysis (CSA), we assess the resilience of our business model and strategies to a range of plausible climate scenarios. This process allows us to evaluate the impact of climate-related risk drivers on our overall risk profile, enabling us to proactively identify opportunities for enhancement and gain valuable insights to better manage potential future scenarios. To this end, we have begun building our internal CSA capabilities. During the year, we conducted a pilot exercise on our non-retail financing portfolio, leveraging insights from CRST based on Network for Greening the Financial System (NGFS) scenarios. Through this exercise, we have prioritised the construction sector given its high exposure to regulatory We support SMEs to strengthen their resilience and competitiveness amidst evolving sustainability demands by: • Offering tailored green financing solutions, such as SME SMART Eco Financing Programme-i (ECO). • Providing capacity-building and awareness programmes focused on sustainability integration. We are actively building more environmentally sustainable branches and facilities by adopting energy-efficient practices, such as LED retrofitting, and increasing our use of solar power, thereby reducing our operational dependence on fossil fuels and our exposure to energy price fluctuations. These initiatives support the minimisation of our operational footprint and enhance long-term climate resilience, aligning with our goal to achieve carbon neutrality across Scope 1 and 2 emissions by 2030 and achieve Net Zero by 2050. In FY2024, we subscribed to a climate data platform, which is set to be deployed and fully implemented in 2025. The platform will enhance climate-related data management, monitoring, and reporting, strengthening our ability to track and analyse our climate action performance. Supporting SME Transition to Low-Carbon Operations Reducing Our Operational Footprint Technology Investments shifts and strategic importance. Following on from this analysis, we have since developed a high-level strategy to guide our engagements with construction sector clients. In 2025, we will continue to refine our CSA methodology and strengthen our capability, ensuring climate risk considerations are more effectively integrated into our business strategy. Our approach will be guided by best industry practices while remaining practical and aligned with our distinct portfolio and stakeholder needs. As part of this ongoing refinement, we are prepared to tackle potential challenges and enhance strategic oversight for sustainable finance opportunities. By addressing these areas through a coordinated approach, we aim to advance our broader business objectives and maintain a positive outlook for our overall sustainability goals. Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 128 Sustainability Statement
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