Bank Islam Integrated Annual Report 2021

STRATEGIC REVIEW In championing the Group’s Material Matters, we designed various programmes and initiatives at the organisation level based on relevant business and stakeholder issues and expectations. Where possible and necessary, we engaged our stakeholders to drive clear outcomes. Such outcomes are also aligned to local regulations and industry best practices. We have mapped the outcomes to our organisational strategies and VBI principles and the globally recognised United Nations Sustainable Development Goals or the UN SDGs. At BIMB, we believe that the role of Banks as intermediaries go beyond access and affordability of finance, including catalysing financing solutions to mitigate universal problems such as poverty, inequalities and social justice, and environmental well-being. Our process includes raising awareness of how our customers and our network of stakeholders can address some of these issues through responsible business practices and responsible investments. Through VBI and Shariah-compliant financing, we will continue to strengthen our orientation to the SDGs relevant to Malaysia and where our local industry and leaders can meaningfully make a difference. MATERIAL MATTERS IDENTIFICATION PROCESS: IDENTIFICATION PRIORITISATION VALIDATION We identify matters that may impact the execution of our strategy. This is a group-wide effort taking into account input from all business and support units, and incorporating feedback from stakeholders. From the list of identified matters, we prioritise those that most significantly impact our ability to successfully execute our strategy and deliver long-term value to our stakeholders. Those matters that are material to value creation are integrated into our balanced scorecard, which is used to set objectives, drive behaviours, measure performance and determine the remuneration of our people. Responsible Finance We commit ourselves to upholding societal and environmental responsibilities by bringing to the market solutions that promote economic and social benefits. We make a conscious decision to design ethical products and incorporate integrity into our services for the good of all. We support ethical projects and customers in catalysing a multiplier effect to the positive impact they bring. UN SDGs INTEGRATED ANNUAL REPORT 202 1 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information 55

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