SUSTAINABLE AND RESPONSIBLE FINANCE At Bank Islam, we see ourselves not just as a provider of financial services but as a catalyst for change. Through our products and solutions, we have the opportunity to help consumers and businesses adopt more sustainable ways of working and create lasting value for society and the environment. This commitment underpins our focus on sustainable and responsible finance. Guided by the philosophy of Maqasid Shariah and the principles of VBI, we are focused on increasing our disbursement of sustainable financing, introducing new solutions to support sustainable choices, and integrating Shariah and sustainability considerations fully within our investment strategies. Our efforts are already delivering results – we have exceeded our LEAP25 goal of doubling Shariah-ESG assets to RM4 billion by 2025, and have since revised our ambitions upwards. OUR PROGRESS IN 2024 Providing Sustainable Financial Solutions We offer a range of sustainable financing solutions, including: In 2024, we made steady progress across both categories of financing, increasing our disbursement of HEV financing to RM131.2 million and Shariah-ESG financing to RM4.9 billion, placing us far ahead of our LEAP25 target of RM4 billion. In addition, we refined our vehicle financing strategy to place focus on clients with larger ticket sizes and lower risk profiles, thus enhancing our portfolio quality. We also actioned process improvements in Straight Through Processing (STP) and Authority Limits to deliver more efficient services for our clients in the sector. As a result, we exceeded our LEAP25 target by securing RM4.8 billion in total approved green financing. This achievement has prompted us to broaden the definition, scope, and criteria for green and sustainability-related financing under our revised Sustainability Commitment 2, with the new target of achieving RM28 billion in sustainable finance and assets by FY2025. Following this recalibration exercise and in alignment with the UNSDG Sukuk framework developed by the Malaysian government, our Treasury and Markets division surpassed its FY2024 aspirational target, reaching RM7.54 billion in UNSDG-linked Sukuk exposure. Hybrid and EV (HEV) Financing: A Shariah-compliant option based on the murabahah concept, enabling customers to purchase hybrid or EVs through installment payments with a transparent profit margin. Financing projects in areas such as waste and water management, solar energy, and other environmentally friendly technologies. RM131.2 million in HEV financing disbursed (2023: RM99.0 million) 996 units of HEVs financed (2023: 801 units) Transforming Sukuk with ESG Impact In FY2024, the corporate Sukuk issuance with a positive ESG impact grew to 80% of our total portfolio, amounting to RM13.1 billion out of RM16.4 billion, up from 73.1% in 2023. We also facilitated RM4.1 billion in SRI Sukuk, supporting key issuances for Air Selangor, Pelaburan Hartanah Berhad, and Johor Plantation Group Berhad. Our achievements were recognised with the prestigious “Best SRI Sukuk in the Water Industry” award by The Asset, underscoring our commitment to advancing sustainable finance. 137 www.bankislam.com 01 02 03 04 05 SUSTAINABILITY STATEMENT 06 07 08 09
RkJQdWJsaXNoZXIy NDgzMzc=