Environmental Forest Risk Does the company have systems and controls to ensure no illegal deforestation takes place in the course of their operations? Biodiversity Risk Does the company have systems and controls to ensure biodiversity is protected in areas of their operations? Waste Management Does the company have systems and controls to monitor and dispose of waste in accordance with regulatory requirements? Post-operations Remediation Does the company have systems and controls to ensure their facilities are properly dismantled and no harmful or hazardous waste is left on site post-operations? MANAGEMENT AND MITIGATION OF ESG RISK BIMB is currently in the process of developing detailed sector guidelines and assessment criteria for all sectors that it may be exposed to. As part of this, further requirements for high sustainability risk sectors will be defined in FY2022. While the development of the ESG Framework is in progress, we begun to assess new financing applications for ESG risks where there are elevated concerns on ESG based on industry-specific context. Key sectors where ESG due diligence would be carried out include large-scale agriculture, oil & gas, forestry, large-scale manufacturing projects, large-scale residential and industrial developments, mining and quarrying, among others. BIMB Sector Exposure (as of Dec 2021) Financial Services Construction Real Estate Public Administration Water, Sewerage and Waste Electricity, Gas, Steam Supply Information and Communication Manufacturing Agriculture Wholesale and Retail Trade 23% 19% 11% 8% 8% 7% 7% 6% 6% 5% BANK I SLAM MALAYS IA BERHAD 116 SUSTAINABLE FINANCE
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