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ANNUAL REPORT 2024 1 2 3 4 5 Sustainability Statement 6 7 8 117

ENVIRONMENTAL

M3 M4 M5

CARBON MANAGEMENT: MINIMISING ENVIRONMENTAL IMPACT

Why This Matters
Bank Muamalat recognises that reducing our environmental Environmental stewardship supports cost savings, improves
footprint is not only a sustainability imperative but a core business continuity, and strengthens stakeholder trust. It also
responsibility as a values-based financial institution. Climate positions us to better support our customers and communities
risks are accelerating, and the role of the financial sector in through sustainable financing, advisory, and investment
supporting the transition to a low-carbon economy has never practices.
been more critical. Our carbon management strategy reflects
our commitment to operational efficiency, compliance with
environmental regulations, and alignment with national and
global climate goals.

Our Approach

Bank Muamalat’s carbon management framework is guided With rising expectations from regulators, investors, and the
by four priorities: public, financial institutions are expected to lead the transition
to a low-carbon economy. In response:
• Operational efficiency - Monitoring and optimising
electricity, water, and fuel use across branches and • ESG Scorecard assessments are applied to evaluate
headquarters to minimise wastage and emissions customer-level climate risk exposure
• Data-driven disclosure - Calculating GHG emissions • High-risk customers are required to develop mitigation
aligned with Scope 1, 2, and 3 definitions to assess and plans, with specific timelines and CCPT classification
manage environmental impact alignment
• Climate risk integration - Embedding climate-related risks • Climate-related indicators are embedded into risk appetite
into credit assessments and portfolio evaluations using statement and annual credit reviews
ESG Scorecards and BNM’s Climate Change and
Principle-Based Taxonomy (CCPT) • Bank Muamalat has initiated the integration of climate
objectives into the overall risk management framework
• Stakeholder engagement - Driving awareness and
participation across employees, customers, and partners These practices not only mitigate environmental risks
to align with broader national and global climate goals in our portfolio but also help redirect capital away from
high-emission activities toward sustainable outcomes.