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92 BANK MUAMALAT MALAYSIA BERHAD

SUSTAINABILITY GOVERNANCE

REGULATORY COMPLIANCE

Bank Muamalat remains committed to strengthening climate risk management in alignment with regulatory expectations
under Bank Negara Malaysia’s (BNM) climate-related guidelines. The Bank continues to embed climate considerations
across governance, risk management, and disclosure practices, guided by the following frameworks:

BNM Climate Change and BNM Climate Risk
Principle-based Taxonomy Management and Climate Risk Stress Testing
(CCPT) Scenario Analysis (CRMSA) Exercise (CRST)

Implementation is progressing with The Bank is actively enhancing its In preparation for the regulatory
structured internal processes to alignment with CRMSA’s six pillars, submission due in December 2025,
support classification and reporting which cover governance, strategy, Bank Muamalat is undertaking a
requirements. Assessment of financing risk management, scenario analysis, structured approach to climate risk
and investment activities is guided by disclosure, and cross-functional stress testing. Efforts include
CCPT’s five guiding principles, with capabilities. Progress includes the strengthening data readiness, refining
internal reporting mechanisms in place. refinement of internal governance modelling capabilities, and identifying
Ongoing efforts are also focused on frameworks, enhancement of risk material climate-related exposures.
addressing feedback from regulatory identification tools, and development of The Bank is also enhancing internal
reviews and ensuring alignment with data and analytical capabilities to meet collaboration to ensure the integration
BNM’s expectations. scenario analysis requirements. of stress test outcomes into broader
risk management and strategic
planning processes.