KUALA LUMPUR, Oct 30 — Bank Islam Malaysia Bhd aims to boost its Shariah - environmental, social, and governance (ESG) assets to RM4 billion by the end of 2025 from RM2.62 billion in June 2022.
The value in June was 16.4 per cent higher compared to the RM2.25 billion recorded a year earlier, the bank said in a statement today to announce the launch of its ESG Risk Management Framework.
It began developing the framework in the third quarter of 2021 with the aim of introducing a fit-for-purpose ESG and climate risk management framework and enhancing the bank’s board oversight on ESG and climate matters.
"Bank Islam will embed ESG risk considerations in its credit assessment process and leverage climate risk stress-testing to enhance the bank’s capabilities in addressing the impacts of climate change on the bank and its customers,” it said.
Group chief executive officer Mohd Muazzam Mohamed said that as part of the group’s broader aspirations to be the leading Islamic financier in Malaysia, it has implemented approaches to consider the ESG risk profile of its customers as part of its financing origination process.
"This move aims to improve our customers' sustainability, as it aligns with regulators' key global and local efforts in building a resilient financial system," he said.
Mohd Muazzam said beyond developing its assessment scorecards and mechanisms for ESG and climate risk, the bank will also support its customers in their transition to low carbon development and contribute to Malaysia's net-zero ambitions as part of their value-based intermediation initiatives. — Bernama
