Governance Pillar
BSIB has been diligently involved in the formulation of business strategies aligned with BNM's Climate-Risk Management and Scenario Analysis (CRMSA) policy directives. This initiative has led to a more streamlined methodology for managing a spectrum of climate-related risks, accompanied by rigorous oversight by the Board and close monitoring by both the SSC Committee and the Risk Management Department.
Our Initiatives
Climate Risk Management & Strategy
In Nov 2022, BNM has published the Climate-Risk Management and Scenario Analysis (CRMSA) policy document which has requested financial institutions to develop a board-approved implementation plan with a clear timeline, as well as interim targets and milestones to address the gaps identified, and to be submitted to BNM by May 2023.
There were specific action plans required to be implemented by end of 2023 and 2024 including identifying risk and opportunities while developing business strategies via Climate-Related risk assessment and strategy/business planning, identifying climate-related metrics and targets, reviewing existing and new climate-related risk metrics and thresholds, establish climate-related disclosure policy and conduct annual disclosures.
The necessary action plans have been oversighted by the Board and monitored persistently by the SSC Committee and the Risk Management Department.
Disclosures & Reporting
BSIB has been actively conducting gap assessments against BNM’s CRMSA disclosure requirements in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) Application Guide for Malaysian FI published by the Joint Committee on Climate Change (JC3). A selection process and assessment review on the Basic and Strech recommendation disclosures was done, and all related Sustainability/Climate related disclosures will be disclosed in FY2024.
The SSC Secretariat has been monitoring the company’s ESG initiatives by tracking the progress status of each Environmental, Social and Governance initiatives on monthly basis. This is to ensure all initiatives are to meet the targeted timeline.
Internal Policies and Procedures
As per BNM’s requirement in the CRMSA policy document, BSIB has developed a Climate-Related Disclosure Policy and was approved by the BOD in October 2023. The purpose of the policy is to ensure required climate-related disclosure information, is disclosed to the public, investors, employees, customers, and other relevant parties in a timely, accurate, complete, and understandable manner and being transparent on our climate-related actions towards the environment.