Page 97 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
SUSTAINABILITY STATEMENT

3. ENSURING SUSTAINABLE GROWTH M13 Responsible Financing

Why is this Important? What Did We Do?
This constitutes the Bank’s commitment to responsible In FY2023, Bank Muamalat undertook several initiatives
financing, which is the practice of providing financial services to enhance responsible financing practices and support
in a way that is sustainable, ethical, and responsible. sustainable economic growth:
The adoption of responsible financing principles is crucial
for promoting social and environmental sustainability, Our total VBI Financing for FY2023:
as well as long-term economic growth. It ensures that
• SME Financing • Retail Financing
the Bank operates in a manner that takes into account the
RM843 million RM9,213 million
impact of its decisions on the wider community and the
environment while also creating value for its stakeholders.
• Preserving • Raising Community
What is Our Approach? the Natural Standards of
Environment Living
Our approach to responsible financing involves a RM774 million RM3,194 million
comprehensive and proactive strategy to align our policies
and practices with the latest regulatory requirements and • Promoting • Education
industry developments. Key components of our strategy Healthy Lifestyle RM131 million
include: RM288 million
ESG and Climate Risk Assessment: Rolling out an ESG • Hospitals and
and climate risk assessment to identify and measure Medical Providers
the impact of climate risk on the overall risk level of our RM349 million
customers portfolio.
Transparent Policy Implementation: Reviewing internal Climate Risk Management: Developed Climate Risk
policies frequently to ensure transparent and prudent Management Framework to manage climate risks
implementation of regulatory changes and disseminating associated with our business activities and operations,
new policy documents to all employees. including climate exposure measurement and risk
monitoring.
Regulatory Compliance and Gap Analysis: Conducting
regular gap analysis exercises on regulatory policy Climate Change Initiatives: Supported BNM’s
documents to identify potential gaps and challenges, agenda by incorporating the Climate Change and
ensuring our policies and procedures are up-to-date Principle-based Taxonomy (CCPT) classification and
and meet regulatory expectations. ESG scorecard in the non-retail financing applications.
Joint Committee on Climate Change (JC3)
Participation: Engaged in JC3, a regulator-industry
platform, focusing on building climate resilience and
supporting clients in transitioning to a low carbon
economy. Bank Muamalat is the lead for the Subgroup
for SMEs, developing Guidance Notes to answer Due
Diligence Questions (DDQ) for the assessment of Bank
Negara Malaysia’s CCPT Guiding Principles 3 & 4
(GP3 & GP4).
VBIAF Guidelines Update: Updated the VBIAF 3rd
Cohort Sectoral Guideline of Agriculture to include CCPT
due diligence assessment on transactional and entity
levels.

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