ESG Value Creation: Mitigating Risks and Creating Opportunities Creating Value through ESG Key to the effective implementation of the ESG Framework is ensuring Risk Management is complementary to development of ESG-Linked Products and Services • Working Groups on sectors and products • Enhance current offerings • Expand offerings to encourage commitment towards sustainability Internal Engagement ESG Risk Controls Working Groups ESG Value Creation • Ensure key internal stakeholders are engaged in implementing ESG Framework • Establish sustainability as key value driver and KPI for product owners • Onboarding enhancement and sector-specific risk mitigation policies BIMB’S KEY SUSTAINABLE FINANCE OBJECTIVES 1. To align our financing portfolio towards the targeted RM4 billion in Green Financing by FY2025 We intend to achieve this by prioritising climate-positive financing across corporate, commercial, SME and retail financing products and services, including but not limited to areas such as renewable energy, green buildings, electric and hybrid vehicles, sustainable public transportation, sustainable agriculture, low-carbon power generation, low-emission manufacturing, and others. 2. To manage and limit financing towards carbon-intensive sectors, where we have started by committing to phase out and end financing of coal-related activities by 2030 We intend to achieve this by identifying carbon-intensive exposures through our financing activities and develop mitigation plans that will include an orderly transition to improve the climate risk profile of our financing portfolio. This will include engaging clients to improve their climate policies and commitments to reduce carbon emissions in sectors including but not limited to oil & gas, mining and quarrying, agriculture, manufacturing, real estate and construction, and others. 3. To encourage climate-positive initiatives, commitments and projects through our ESG roadmap and stakeholders engagement We intend to achieve this by continuing to engage with various stakeholders, including regulators, government, customers, industry bodies and NGOs on sustainable practices, climate-friendly commitments and targets and supporting climate-positive projects. This may include engaging with progressive proponents of climatefriendly strategies including efforts to reduce forest and biodiversity impacts, encourage marine conservation, improve social outcomes, reduce carbon emissions and align with stronger ESG commitments and practices by corporates and SMEs. BANK I SLAM MALAYS IA BERHAD 112 SUSTAINABLE FINANCE
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