The Sustainability Governance

Group Sustainability Committee

The Group Sustainability Committee is the dedicated Board-level sustainability committee to support the Board in the governance of sustainability and climate-related matters of the Group, and ensures the Group’s strategies, goals and principles pertaining to sustainability are aligned with the Group’s sustainability commitments.

The Group Sustainability Committee is chaired by Ms Susan Yuen Su Min (Independent Director of Alliance Bank Berhad), and its members are Ms Cheryl Khor Hui Peng (Independent Director of Alliance Bank Berhad), Chia Yew Hock Wilson (Non-Independent Non-Executive Director of Alliance Bank) and Dato’ Ahmad Hisham bin Kamaruddin (Independent Director of Alliance Islamic Bank Berhad).

The Group Sustainability Committee’s primary responsibilities are:

1. To review and recommend to the Board for approval of sustainability strategies, priorities targets proposed by Management, taking into account environmental risks and opportunities including but not limited to risks and opportunities arising from climate change.
2. To provide oversight on integration of sustainability and climate-related risks with existing risk management infrastructure, to safeguard the Bank’s resilience against the adverse impacts of climate change.
3. To provide oversight and input to management to ensure that the Group’s strategies, goals and principles pertaining to sustainability are aligned with, promote and encourage the Group’s commitment towards sustainability.
4. To review issues relating to sustainability arising from independent audits, assurance reports, and any matters on sustainability that are highlighted by regulators or consultants.

Sustainability Steering Committee

The Sustainability Steering Committee is responsible for steering, coordinating, and implementing the Bank’s sustainability and climate-related strategies, policies and procedures. The Committee is led by the Group Chief Executive Officer. The Alternate Chairperson is the Chief Executive Officer of Alliance Islamic Bank. The committee members include:

• Group Chief Executive Officer – Chairman
• Chief Executive Officer, Alliance Islamic Bank – Alternate Chairman
• Group Chief Risk Officer
• Group Chief Strategy, Marketing & Business Development Officer
• Group Chief Financial Officer
• Group Chief Credit Officer
• Group Company Secretary
• Group Chief Operating Officer
• Group Chief Consumer Banking Officer
• Group Chief SME and Commercial Banking Officer
• Group Chief Corporate Transaction Banking Officer
• Group Chief Financial Markets Officer
• Group Chief Human Resource Officer
• Group Chief Compliance Officer
• Group Chief Internal Auditor
• Head of Sustainability
• Head Group Climate & Sustainability Risk

The Sustainability Steering Committee’s primary responsibilities are to:

• Advise the management to ensure that business strategy takes sustainability into consideration, in particular the risks and opportunities arising from climate change
• Develop and recommend to the management on sustainability strategies - related policies and statement for approval, adoption and revision
• Review material sustainability issues for the Bank to manage
• Ensure that the sustainability strategies address key sustainability matters related to environment, economy and social (“EES”)
• Monitor and oversee the implementation of the sustainability strategies as approved by the management
• Formalise responsibilities and reporting structures for sustainability initiatives and disclosures (reporting)
• Recommend to the management:
  1. Appropriate metrics and targets for sustainability goal setting;
  2. Feasible strategies, initiatives and projects to support the Bank’s sustainability goals and agenda; and
  3. Relevant criteria for the evaluation of project / initiative feasibility
• Oversee departments in ensuring robustness of sustainability management
• Oversee the preparation of sustainability disclosures (reporting) as required bylaws and / or regulations and recommending it for the management’s approval

The Sustainability Steering Committee reports the progress of the Group’s sustainability initiatives to the Group Sustainability Committee.

Governance of Sustainability and Climate-related Risk

The Group Risk Management Committee (GRMC) chaired by Dr John Lee Hin Hock (Independent Director of Alliance Bank Malaysia Berhad), is a Board-level risk committee that oversees management of enterprise risks which include sustainability. The GRMC deliberates sustainability and climate-related risks as and when required and includes considerations of the broader sustainability strategy. As part of the Board’s responsibility to oversee the Bank’s overall risk strategy, including climate-related risks of the Bank, all board members receive a risk induction and on-going risk training. For the list of trainings related to risks attended by the Board, please refer to our Corporate Governance Report.