Bank Islam Integrated Annual Report 2021

BIMB views sustainable finance as a key priority for the Group and has aimed to increase financing of sustainable and green products and services, while implementing robust controls to manage potential climate and sustainability risk arising from our provision of banking products and services. BIMB understands the role that banks need to play in ensuring that positive climate and sustainability outcomes are realised through our business activities. As key implementers of Shariah-based banking principles, we understand that long-term sustainability includes caring for the environment and society while supporting businesses and consumers to achieve their financial goals. Overview: Holistic Implementation of Sustainable Finance SUSTAINABLE FINANCE In delivering on our sustainable finance goals, we have prioritised managing and mitigating sustainability risk while expanding on current and future opportunities for financing of climate-positive and environmentally and socially-conscious economic activities and projects. ESG Framework: Holistic Approach to Sustainability Managing Risk and Expanding Opportunities Core ESG Phases Position the Bank as a Islamic Banking leader in Sustainable Finance Measure and report progress based on internationallyrecognised standards and benchmarks Target leadership position for sustainable products and services Disclosure and Reporting Governance and Oversight Board-level Sustainability Sponsor, Working Groups, Approval of Sustainability Policy Raising Awareness and Developing Champions Onboard and include Product Owners and Business Units in development of ESG Framework Stakeholder Engagement Identify and engage with key stakeholders, assess material sustainability issues Risk Identification and Baseline Metrics Identify key risks tied to the Bank, establish baseline metrics for performance monitoring Risk Mitigation and Creating Opportunities Develop sustainability risk mitigation controls, sector-specific requirements Long term aspiration: Embed and Operationalise Sustainable Practices INTEGRATED ANNUAL REPORT 202 1 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information 111

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