Key highlights from the BEE for FYE2023 included the following: 1. Training and Development: Enhanced training and development initiatives implemented 2. Committee Effectiveness: Committees demonstrating effective task fulfillment 3. Board Meeting Frequency and Length: Optimal frequency and duration of board meetings 4. Management Access: Improved access to Management 5. Role Understanding: Enhanced role clarity among Board Members 6. Risk Management Procedures: Robust risk management procedures implemented 7. Committee Member Adequacy: Appropriate number of members in Board Committees 8. Committee Focus: Focused committees aligning with Terms of Reference 9. Clarity in Recommendations: Clear resolutions and recommendations from Board Committees 10. Proactive Board Committees Chairman: Proactive Chairman ensuring Board attention to key issues The BEE exercise had identified the following main areas for improvement: Administrative: • Consistent submission of board papers • Dedicated time for key issue discussions • Improved quality of minutes and board papers by BRC Talent Management: • Identification of Future Leaders • Succession plans for key committees • KPIs for Human Capital Challenges Strategic Planning: • Synthesised board papers with critical analysis • Comprehensive papers covering Strategy, Technology, and Risk • Utilisation of dashboards for analysis • Evaluation of Remuneration Policies • Consideration of ESG metrics in compensation Risk Management: • Coordination between Board Committees on Financial Risks • Focus on ESG and Climate Change Risks • Robust Enterprise Risk Management Framework Technology and Innovation: • Utilisation of Artificial Intelligence Culture and Compliance: • Metrics for Compliance Culture Assessment As at 31 December 2023, the action plans to address the above main areas have commenced and are ongoing. Our Sustainability Commitment Bank Islam has developed and implemented a sustainability governance structure to provide oversight and strategic direction over Group’s sustainable finance initiatives. Bank Islam embeds ESG considerations, including climate related risks and anti-bribery/corrupt practices into our strategies, business and operations. Sustainability at Bank Islam is about investing for the longterm growth and future of our organisation and stakeholders and ensuring what we do makes a positive and lasting impact on our community, economy and nation. Our purpose is to support society’s financial needs in a responsible and ethical manner, anchored on Islamic values. This is done through recognition of Bank Islam’s products and conducting our operations and initiatives. The Group’s Sustainability Framework serves as the overarching document defining the Group’s commitment, outlining the sustainability mission, principles, goals, targets, governance and approach to the Group’s activities. It is supported by other Group policies and procedures that reflect specific aspects of sustainability that are aligned with the Group’s core values. The Framework is aligned with the Bursa Securities’ MMLR and global reporting initiative standards, United Nations Sustainable Development Goals as well as BNM’s Value-based Intermediation (VBI) principles. 217 1 2 3 4 5 6 7 8 9 www.bankislam.com ACCOUNTABILITY
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