In FY2021, BIMB has committed to phase out and end financing of coal-related activities by 2030. BIMB also carried out deep-dive validation of certain financing cases that were deemed highly material or carrying relatively higher environmental or social risks. Sector Key Highlights Agriculture (Palm Oil) Clients involved in agriculture may be involved in specific activities, such as plantation development or in the entire value chain of palm oil production, including refining and distribution. BIMB has undertaken ESG due diligence of these customers in view of known risks in terms of environmental impacts related to potential illegal deforestation, development on peatland, use of chemicals, loss of biodiversity, and social impacts including labour practices, health and safety of workers and impacts on local communities and smallholders. In FY2021, BIMB did not detect major violations relating to environmental and social risks among the customers assessed. In some cases, there were legacy risks identified but these were sufficiently managed through time-bound action plans carried out by the customer. Oil & Gas Clients involved in oil & gas include those that are focused on extractive activities, such as upstream and those that are involved in downstream refining and distribution. BIMB has undertaken ESG due diligence of these clients in view of known risks in terms of environmental impacts on marine biodiversity and resources, carbon emissions, and release of potentially hazardous waste; and social impacts including health and safety of workers and impacts on local communities in coastal areas. In FY2021, BIMB did not detect major violations relating to environmental and social risks among the customers assessed in this sector. Heavy Manufacturing Clients involved in heavy manufacturing were chosen based on several material factors including the environmental impact of the manufactured end-product and the scale and vicinity of the operations to environmental features including forest, rivers and marine areas, and its impacts to biodiversity and local communities. In FY2021, BIMB did not detect major violations relating to environmental and social risks among the customers assessed in this sector. Real Estate Development & Construction Clients involved in real estate or construction were chosen based on the scale of development projects and location of the projects based on vicinity to environmental features including forest, rivers and marine areas, and its impacts to biodiversity and local communities. In FY2021, BIMB did not detect major violations relating to environmental and social risks among the customers assessed in this sector. Other Sectors Various other sectors were selected based on material value of exposure to BIMB, including education and financial services providers. In general, these customers were assessed for environmental and social impacts internal to their operations and externally in their supply chain and in terms of end-consumer dealings. In FY2021, BIMB did not detect major violations relating to environmental and social risks among the customers assessed in this sector. INTEGRATED ANNUAL REPORT 202 1 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information 117
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