Page 92 - Bank Muamalat_AR24

90 BANK MUAMALAT MALAYSIA BERHAD

SUSTAINABILITY GOVERNANCE

FUNCTIONS AND DECISION MAKING

Establishing a strong sustainability governance structure is essential to managing material ESG issues effectively across the
organisation. At Bank Muamalat, sustainability oversight is embedded within the corporate governance framework to ensure
clarity of roles, avoid duplication, and promote strategic alignment.

Leadership from the Top
The Board of Directors (BOD) provides strategic leadership in shaping the Bank’s sustainability agenda. This includes
setting direction, reinforcing a sustainability-focused culture, and monitoring performance through a structured
scorecard. Continuous engagement in capacitybuilding programmes ensures the Board remains informed on emerging
sustainability trends and regulatory expectations.

Comprehensive Support Throughout the Organisation
Execution of the Bank’s sustainability strategy is supported by senior management and the Climate Risk Working Group
(CRWG). Each plays a defined role in driving implementation, monitoring progress, and embedding ESG considerations
into day-to-day operations. This integrated approach ensures consistency, accountability, and alignment with the Bank’s
overall strategic objectives.

For further clarity, please refer to the Bank's sustainability governance structure.
Board of Directors

• Steers the Bank's sustainability matters, this includes material assessment and sustainability strategy and targets
• Ensures sustainability matters are taken into account with the aim of integrating a strong sustainability culture throughout
the entire Bank.

Senior Management

• Establishes sustainability strategies and policies and advises on revisions to the Board Committees.
• Ensures that the execution of the sustainability strategy is consistent throughout the Bank.
• Assesses sustainability risks and opportunities, with a specific emphasis on matters related to climate change.
• Examines the process and results of the materiality assessment.

Executive Risk Management Committee (ERMC)

• Advises the Board on strategic sustainability directions.
• Ensures the adoption of sustainability-related policies and standards.
• Periodically reviews the alignment of sustainability strategies and KPIs with the Bank’s strategic objectives.

Climate Risk Working Group Sustainability Department

• Coordinates the Sustainability Department in managing • Ensures that on-ground practices are in line with the
data and matters related to sustainability targets and Bank’s overall sustainability agenda and strategy.
reporting. • Assists the senior management in implementing and
• Assist the Sustainability Department in the overseeing sustainability initiatives, and policies and
implementation of sustainability initiatives across the tracking progress against set targets.
Bank. • Keep track of stakeholders’ feedback, the latest Bank
• Gathers and organises the sustainability data report and Negara’s requirements, market trends, and peer
data generated by the Sustainability Department. performances on sustainable development.