This policy aims to strengthen Bank Islam’s commitment to sustainability by providing a structured framework to guide and align sustainability and climate-related initiatives across all Divisions and Business Units. It ensures these initiatives are consistent with the Group’s sustainability commitments and regulatory requirements, including BNM’s Climate Risk Management and Scenario Analysis (CRMSA) and TCFD-aligned disclosures. The policy establishes clear governance, accountability, and stakeholder engagement mechanisms to mitigate risks such as non-compliance and greenwashing. It supports effective risk management, transparency in disclosures, and the pursuit of sustainability opportunities while promoting coordination, performance monitoring, and adherence to the Three Lines of Defence. This policy is committed to creating a fair, inclusive, and respectful workplace that values individual differences and promotes equal opportunities for all employees. The policy ensures non-discriminatory practices in recruitment, career development, and daily operations while fostering a safe and supportive environment free from bias, harassment, and discrimination. It emphasises accountability, continuous policy improvement, and active employee engagement to build a diverse and inclusive culture that aligns with the Group’s vision and mission. This Framework outlines the Group’s overall approach to climate-related risk management. The Group views climate-related risk as an integrated risk which manifests through existing primary risks including credit, market, liquidity and non-financial risks. Therefore, the Group has implemented its approach to managing climate-related risk, in line with the BNM’s Climate Change Principle-based Taxonomy (CCPT) and the CRMSA Policy Document, embedding and integrating climate-related risk identification, assessment, measurement and monitoring capabilities into our overarching risk management framework. GROUP SUSTAINABILITY POLICY DIVERSITY, EQUITY, AND INCLUSION (DEI) POLICY GROUP CLIMATE RISK MANAGEMENT FRAMEWORK The policies that ensure proper management of sustainability risk are: Please refer to our Sustainability Statement for more details on our approach to Climate-related risk management. 261 www . b a n k i s l am. c om 01 02 03 04 05 06 07 ACCOUNTABILITY 08 09
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