Sustainability Risk Governance
Sustainability Risk Management
The Bank’s Sustainability Risk Governance Framework addresses potential ESG risks that may arise during the implementation of our business strategies, policies and initiatives. This framework provides a structured approach towards identifying, evaluating, quantifying, monitoring, mitigating and reporting of ESG risks. It acts as a guide for us to adopt pragmatic measures to ensure sustainable value to our stakeholders is delivered whilst generating a positive impact to the communities and environments that we operate in. As the Bank’s sustainability approach evolves, we will continue to improve transparency in our practices and policies as well as improve communication with our stakeholders.
There is a growing need for organisations to embed sustainability ideals in ensuring the long-term viability of businesses. As it continues to evolve, it is vital for the Bank to continue growing its business in a sustainable and environmentally friendly manner through conscious consideration of potential impacts on our customers, stakeholders, communities and the planet. This drives us to advance in tandem with these sustainability developments and aspirations. Our dedication and efforts in promoting sustainability both in our business operations as well as to our suppliers and customers has provided us with the foundation to achieve our responsibilities with regard to ESG, and in doing so, align with investor expectations and regulatory requirements.
Accountability in embedding sustainable practices into the business is driven from the top. The Bank’s Board of Directors leads the company’s approach to sustainability, including the management of ESG risks and opportunities. The Board Risk Management Committee complements the Board in its responsibility for ensuring sustainability efforts and policies are in line with the core principles and objectives of our institution.
We continue to disclose our approach towards managing climate risks and opportunities aligned with recommendations of The Task Force on Climate-related Financial Disclosure (TCFD). This year, we have taken guidance from BNM’s TCFD Application Guide in developing our climate-related disclosures around the four thematic areas: Governance, Strategy, Risk Management and Metrics and Targets. As outlined in the guide, we have addressed and discussed most of the Basic recommendations in the table in the link below: