Page 81 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 4 5 Sustainability Statement 6 7 8 79

SUSTAINABILITY @ BANK MUAMALAT

OUR APPROACH TO SUSTAINABILITY In line with our long-standing commitment to
Shariah-compliant sustainable finance, we continue to be
The Bank’s vision places sustainable guided by the Value-based Intermediation (VBI) strategy
development at the heart of what introduced by Bank Negara Malaysia. We apply the
Value-based Intermediation Assessment Framework (VBIAF)
we do in our product development to ensure our offerings are
aligned with the intended outcomes of Shariah and contribute
meaningfully to sustainability. During the year, Bank Muamalat
In 2024, sustainability continued to gain strong traction made substantial progress in strengthening its approach
across Bank Muamalat, shaping key policy directions to climate risk. We further advanced our Climate Risk
and becoming an integral part of our core business Framework to align with regulatory expectations. We also
decision-making. Awareness of the environmental, social conducted a comprehensive ESG assessment and gap
and governance (ESG) agenda has deepened across analysis of our existing risk management framework to
departments, with increasing recognition that every enhance the integration of climate-related considerations
individual contributes to advancing the Bank’s sustainability across our operations and offerings.
journey. This collective momentum is reflected in measurable
improvements across the sustainability indices to which In 2024, the Bank has focused on building internal readiness
we are benchmarked. We are encouraged by the growing for Climate Risk Stress Testing (CRST), as required by
engagement from our stakeholders and remain committed Bank Negara Malaysia. This includes strengthening data
to transparent communication on our ESG risks, commitments capabilities, enhancing scenario analysis methodologies
and progress. and aligning internal frameworks to support the upcoming
submission in 2025. These efforts are essential in embedding
At Bank Muamalat, we view sustainability as a strategic climate risk into our overall risk management practices and
enabler for a better future not only for the organisation but ensuring the long-term resilience of the Bank.
also for the broader society and economy. Our approach
is grounded in the belief that as a responsible and ethical Our participation in national and global sustainability
institution, we must meet financial needs in a manner platforms remains strong. As active members of Bank Negara
that enhances the well-being of all stakeholders. Guided Malaysia’s Committee of Practitioners for VBI and the Global
by Islamic values, we continue to pursue meaningful and Alliance for Banking on Values (GABV), we continue to play
lasting impact. We see ourselves as catalysts for positive a leading role in promoting sustainable finance. We have
change by championing inclusive growth, strengthening deepened our focus on Social Finance, expanding our
the real economy, uplifting communities and supporting value-based offerings to serve underserved communities.
environmental stewardship. Through our purpose-driven At the same time, we remain aligned with the Climate
approach, we aim to create equitable opportunities, enhance Change and Principle-based Taxonomy (CCPT), reinforcing
socio-economic resilience and contribute to national our support for a resilient financial sector and a just
development. transition to a low-carbon economy.