Sustainability Governance Governance Structure The MNRB Group is committed to upholding robust sustainability governance standards through a comprehensive governance framework that includes our Board of Directors ("the Board"), Senior Management, Sustainability Champions, and the respective business units, comprising multifunctional experts from various departments across all operating entities. The Group's sustainability strategy and performance are continuously monitored by the Board and are further supported by key committees such as the Risk Management Committee of the Board ("RMCB"), Group Shariah Committee ("GSC"), Group Management for Risk and Compliance Committee ("GMRCC") and the Sustainability Working Group ("SWG"). During the reporting year, we made significant progress in our sustainability efforts with the establishment of a dedicated Group Sustainability Management Department ("GSMD") in October 2023. This strategic move underscores the Group's heightened awareness of the pressing need to address sustainability matters more effectively. With the establishment of the GSMD, the Group aims to enhance sustainability awareness within the workforce, bridge knowledge gaps and equip our workforce with the essential competencies required to meet evolving sustainability demands. This includes adhering to regulatory policies, conducting accurate impact measurements, meeting stakeholders' expectations and staying abreast of industry developments, thereby ensuring our ability to capitalise on relevant opportunities and maintain a competitive edge. Roles and Responsibilities Board of Directors Risk Management Committee of the Board ("RMCB") The Board's key responsibilities include effectively overseeing the MNRB Group's operations and ensuring alignment with the best interests of the Group and its stakeholders. This oversight is exercised through compliance with all relevant Acts and Regulations, including the adoption of principles and best practices as outlined in the Malaysian Code on Corporate Governance ("MCCG"), the Main Market Listing Requirements ("MMLR"), and the Bank Negara Malaysia Policy Document on Corporate Governance ("BNM PD CG"). The Board is also tasked with deliberating and resolving key matters such as the approval of quarterly and annual results, major acquisitions and disposals, significant capital expenditures, budgets, business plans, and succession planning for top management. In line with the updated Board Charter as of November 2023, the Board has expanded its responsibilities to address sustainability matters and climate-related risks. The Board is now actively involved in developing sustainability strategies and engaging in regular discussions on these critical issues. This proactive approach underscores the Board's commitment to understanding and addressing relevant sustainability matters, including climate-related risks and opportunities. Furthermore, the Board continuously enhances its knowledge relating to sustainability management through periodic capacity-building programmes. These programmes ensure that Board members remain well-informed about emerging sustainability trends, best practices in sustainability reporting, and strategies for integrating sustainability into the Group's long-term strategic planning. This ongoing education empowers the Board to make informed decisions that drive sustainable growth and value creation for all stakeholders. The RMCB is a board-level committee that meets on a regular basis, at least once every quarter to fulfil the responsibilities delegated to it by the Board, which are mainly related to effective risk and compliance oversight. The RMCB reports to the Board to keep it abreast of RMCB activities, key deliberations and decisions regarding matters delegated to the RMCB. One of the primary responsibilities of the RMCB is to assist the Board in providing effective oversight in addressing sustainability risks and opportunities, including the management of climate-related risks to safeguard the Group from the adverse impacts of climate change. The respective Head of Risk Management at each of the operating entities provides the RMCB with quarterly updates on risk assessments and monitoring, including potential catastrophic and climate change events that may affect the Group and its operating entities' financial performance. Group Shariah Committee ("GSC") The GSC is responsible for overseeing the delegation of duties by the Board relating to the implementation of Shariah-related strategies. In March 2024, the MNRB Board approved an enhanced GSC Charter which incorporates the GSC's responsibility for overseeing the delegation of duties by the Board relating to the implementation of the Shariah aspects within the Group's sustainability strategies. For the Group's takaful entities, the GSC ensures that the Group Sustainability Policy aligns with the Shariah Governance Framework and advances the intended objectives under Maqasid Shariah.