Link to: Capitals FC HU SR NT D Strategic Focus Areas GR Our Key Stakeholders Opportunities Opportunities Our Approach • Supporting microentrepreneurs through our iTEKAD microfinancing programmes, which connects them to valuable funds needed to grow their business, including our Hal-Cube initiative. • Upskilling microentrepreneurs through purpose-fit development training programmes. • Uplifting business owners who lack creditworthiness through our “funding escalator”, which combines working capital and business support. • Collaborating with community-based organisations to introduce tailored social finance solutions that deliver funding and other forms of support. • Providing financial support to a range of development programmes that drive impact in underserved communities. • Funding large-scale community development projects via the myWakaf 2.0 collaborative initiative. Our Approach • Adopting digitalised procurement processes to enhance efficiency and support agile decision-making. • Enforcing our sustainability standards through rigorous supplier screening practices covering environmental, social and governance practices. • Setting out our stance against unethical business practices through the Business Associate Integrity Pledge, which all suppliers and service providers are required to uphold. Risks • Communities may resist development initiatives due to doubts about their effectiveness. • Poorly managed programmes may result in negative reputational impacts. • Inadequate credit risk management processes could lead to a high rate of financing defaults, equating to significant financial losses. Risks • Mismanagement of the supplier screening or management processes could result in exposure to significant ESG risks and impacts, ranging from excessive carbon emissions to labour law violations. • Any instance of supplier violations may lead to significant reputational and financial damage. Community Empowerment and Social Finance CESF Sustainable Supply Chain SSC Why It Is Important Our social mission is what sets us apart as an organisation. By providing access to financial services to underserved groups, we can create a lasting impact on local communities while simultaneously driving our growth as a business, in line with our ethos as a Shariah-driven Islamic financial institution. Why It Is Important Through effective and sustainable procurement practices, we can minimise negative impacts across our supply chain and support the local business ecosystem, bolstering our reputation as a responsible organisation. • Broadening access to financial services for the underserved, thereby enhancing their livelihood and creating a positive ripple effect within their communities, • Innovating financial products and solutions that address unmet needs in education, healthcare, housing and more, driving long-term impact for the economy. • Setting a positive example for our suppliers and supporting their journeys to adopt more sustainable practices, thereby creating value within the broader business environment. Link to: Capitals FC MF SR HU CU LC Our Key Stakeholders VBC Strategic Focus Areas CC RE UNSDGs: UNSDGs: Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 54 Material Matters
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