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ANNUAL REPORT 2023
SUSTAINABILITY STATEMENT

SUSTAINABILITY @

BANK MUAMALAT

OUR APPROACH TO SUSTAINABILITY
The Bank’s vision places sustainable development at the heart As members of the CoP for VBI by
of what we do. BNM and participants in the GABV,
Sustainability has gained significant momentum we remain steadfast in our
throughout Bank Muamalat, shaping our policies and commitment to sustainability.
integrating sustainability into our core business decision-
making processes. There is a growing awareness of the Alongside integrating ESG
environmental, social, and governance (ESG) agenda considerations into our operations
across all departments, recognising that every individual
at Bank Muamalat plays a crucial role in advancing and business decisions, we actively
sustainability.
promote sustainability and
The progress we have made is reflected in the mainstream VBI.
improvements across the various indices we are
benchmarked against. We are very encouraged by the
increasing level of interest and engagement among our
key stakeholders, and we will continue to be transparent In 2023, Bank Muamalat committed to strengthening its
in communicating our ESG risks, commitments and sustainable finance initiatives by developing a Climate Risk
progress. Framework to meet the climate risk requirements set by
BNM. The primary goal of this Framework is to integrate
At Bank Muamalat, we view sustainability as a powerful tool climate-related risks and impacts into the Bank’s overall
to build a better future for our organisation, community Risk Management Framework. As part of this effort,
and country. Our commitment to sustainability is rooted we conducted an ESG assessment and gap analysis of
in our belief that as a responsible and ethical institution, our existing ESG risk management framework. Looking
we have a duty to meet society’s financial needs in a way ahead, we aim to establish a comprehensive framework that
that supports the social and economic well-being of all deeply embeds climate risk management into all aspects
stakeholders.
of our banking operations, including financing and
promoting sustainable banking opportunities across all
Rooted in our Islamic values, we strive to make a positive
customer segments.
and lasting impact. We are more than just a financial
institution; we see ourselves as catalysts for change, dedicated
As members of the Committee of Practitioners (CoP)
to fostering inclusive growth and sustainable development.
for VBI by BNM and participants in the Global Alliance
Through our purpose-driven approach, guided by our
for Banking on Values (GABV), we remain steadfast in
Islamic principles, we aim to create economic opportunities
our commitment to sustainability. Alongside integrating
for all, support the development of the real economy,
ESG considerations into our operations and business
enhance community welfare, and contribute to environmental
decisions, we actively promote sustainability and
conservation.
mainstream VBI. We emphasise the transformative potential
of Social Finance, leveraging investment and profit-sharing
The Bank has long been dedicated to sustainable finance,
providing Shariah-compliant banking products and services offerings to empower underserved segments. Additionally,
for businesses and consumers. We follow the Value-based we are deeply involved in climate risk management,
Intermediation (VBI) strategy proposed by Bank Negara aligning with BNM’s Climate Change and Principle-based
Malaysia (BNM), which aims to achieve the maqasid Taxonomy (CCPT) guidance. This framework underscores
al-shariah (intended outcomes of Shariah) through our the central bank’s dedication to enhancing financial sector
practices and product offerings. Using the Value-based resilience and facilitating a smooth transition to a greener
Intermediation Assessment Framework (VBIAF) as our economy. Furthermore, our adoption of the Climate
guide, we develop our products to ensure sustainable Risk Management and Scenario Analysis policy, which is
banking for all our customers. set to be finalised in 2024, establishes principles and
requirements for managing climate-related risks within
financial institutions.

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