Qatar Islamic Bank QPSC

The Bank has a dedicated Sustainability Management Committee, chaired by the GCEO and comprised of members of the Executive Team and Departments' Heads. The committee is responsible for setting the Bank's Sustainability Strategy, monitoring the sustainability performance, and suggesting updates and additions to the Sustainability Policy, among other responsibilities. The committee reports directly to the Board of Directors. [...] The Sustainability Working Group comprises of managerial focal points from each business function within QIB. The group is responsible for implementing new projects and initiatives, internal ESG reporting to the Sustainability Management Committee, collecting and sharing key ESG data with the Committee and contributing to the Annual Sustainability Report.

The Nomination and Governance Committee is an independent committee established by the Board of Directors. Its primary role is to act as the official communication link between the Board and QIB's management on governance and nomination matters, as well as to establish specific criteria for evaluating the performance of the Board and senior executives. The Committee is responsible for general supervision and implementation of corporate governance principles, guidelines, and practices within QIB. This includes developing a suitable succession plan aligned with the law, QIB policies, and Qatar Central Bank regulations, as well as overseeing the succession planning for senior executives. Additionally, the Committee provides the Board with reports and recommendations regarding compliance and supervises the implementation of these principles across all QIB activities. The Committee also evaluates candidates for Board membership and senior executive positions to achieve QIB's goals throughout the year in accordance with governance instructions and the Commercial Companies Law. Furthermore, the Committee oversees, reviews, and updates the governance framework in coordination with executive management, the Audit, Risk, and Compliance Committee, and the Shari'a Supervisory Board. It assesses the alignment of these policies and procedures with best practices and international standards, such as those issued by the Financial Stability Board the Basel Committee on Banking Supervision, and the Qatar Central Bank. The Committee also supervises the implementation of QIB's sustainability strategy.

The Audit, Risk Management and Compliance Committee is mainly responsible for assisting the Board in fulfilling its oversight responsibilities with regard to the Bank activities. This task includes submitting financial reports, managing actual risks and AML/CFT risks, handling internal control systems, effectively performing internal and external audit functions, and applying the procedures adopted for monitoring compliance with applicable laws and regulations. The Committee is also in charge of submitting quarterly reports to the Board, and providing appropriate advice and recommendations on matters related to its audit work activities, in order to facilitate the Board's Decision-Making process. Similarly, the Committee shall be authorized to investigate any activity under its scope of competences, and shall be entitled to ask for any information from any employee. All staffs shall be instructed to cooperate with any such requests addressed by the Committee in that respect. Furthermore, the Committee shall be authorized to seek legal or professional consultancy from independent external parties and/ or the assistance of third parties if these parties are to be of adequate experience and knowledge, noting that such activities can only be done after consulting the Board's Chairman. The Audit, Risk Management and Compliance Committee will be granted the authority to freely contact internal and external Auditors and the Bank's Senior Management. This Committee is formed by the Board to review, appraise and submit reports to latter on, general risks, accountability, the bank's internal risk management and control frameworks, financial reporting, internal auditing, external auditing, and compliance. The Bank's regulatory departments (Internal Auditing, Compliance and Risk) shall submit detailed quarterly reports to the Committee for it to conduct all the necessary assessments and examinations needed to submit a finalized report to the Board accompanied by recommendations of what corrective adjustments should be made, including but not limited to: - Submitting a recommendation to the attention of the Board of Directors to nominate Mrs. Ernst & Young to audit the bank's accounts for the fiscal year 2023 and presenting it to the General Assembly of Shareholders at its next annual meeting. - Adopting the annual training plan for 2023 related to money laundering and terrorist financing. - Adopting the results of the money laundering and terrorist financing risk assessment. - Adopting a methodology for evaluating and documenting the Risk Appetite of business risks related to money laundering and terrorist financing (AML, CFT, Risk Appetite) - Approval of the internal Audit plan for the years 2023/2024, through which the activities of the bank, its subsidiaries, and its foreign branches are audited. - Approval of the Compliance Monitoring & Assurance Plan for the compliance division. - Presenting the amendments made to the terms of reference of the Audit, Risk and Compliance Committee in accordance with the updated instructions issued by the Qatar Central Bank related to governance to the committee in preparation for presenting them to the Board of Directors for approval. - Approving the results of the risk assessment of products and services for both the individual and corporate sectors. - The committee directed to finalize the maximum limits of AML CFT and Risk Appetite Caps for the degree of acceptance [...] The Governance Committee is an independent committee emanating from QIB's Board of Directors. Its mission is the official representation of communication between the Board of Directors and the Bank's management on issues and matters related to governance and nominations, and to establish specific foundations for evaluating the performance of the Board and senior employees in the executive management. This committee supervises the Implementation of the bank's sustainability strategy. It is responsible for general supervision and application of governance principles, directives and practices. Companies in the bank, specifying an appropriate plan for job succession in line with the law, the bank's policy and regulations, and the instructions of the Qatar Central Bank. It is also responsible for supervising the existence of a plan to replace senior employees in the executive management, in addition to providing the council with reports and recommendations on the extent of compliance. This committee is responsible for supervising and following up on the application of these principles in all of the bank's work. In addition to studying and evaluating candidates for membership in the Board of Directors and for senior executive positions to achieve the bank's objectives throughout the year, in accordance with governance instructions and the Commercial Companies Law The committee also supervises the review and update of the governance framework and monitors its application in coordination with the executive management and the Audit, Risk and Compliance Committee, in addition to the Sharia Supervisory Board, in order to measure the suitability of these policies and procedures and their consistency with the best and latest international practices and issuances, such as those issued by the Financial Stability Board, the Basel Committee on Banking Supervision, and the instructions and guidelines of the Central Bank. The committee made several recommendations during the year 2023, including, but not limited to: - Proposing and implementing a program to manage meetings, Board of Directors correspondence, and communication between Board members in order to facilitate better and safer cooperation and interaction. - Determining the implementation of a training program to familiarize new board members with the bank's work, especially the financial aspects and procedures related to corporate governance. - Reviewing the bank's governance framework and providing additional suggestions/recommendations to improve practices. - Reviewing the membership and restructuring the board committees to enhance the effectiveness of QCB's oversight of the bank's various activities. - Providing additional suggestions and recommendations to improve sustainability practices and integrate environmental, social and governance considerations into the bank's main operations. - Implementing training for members of the Board of Directors on sustainability practices in the bank to increase awareness, enhance their experience, and overcome difficulties resulting from environmental governance risks in order to meet governance requirements consistent with best environmental and social practices.

##### 4.1 Board of Directors

The Board of Directors of QIB are responsible for:

- Approving the sustainability guidelines contained in this Policy;

- Approving the risk appetite and tolerance with reference to ESG factors, during the process of reviewing the Risk Appetite Framework, at levels that are compatible with the strategic objectives of the bank, by including anything that could be significant in terms of sustainable success in its assessment;

- Approving any other sustainability initiatives or projects requiring Board approval, as per the Bank's authority matrix, developed as a result of and in accordance with this policy and the QIB strategies;

- Evaluating the adequacy of internal control and risk management systems with regards to ESG;

- Receiving training on ESG/sustainability and disclose the members' respective ESG-related competencies;

- Approving this Policy and its updates, considering the activities, risks, and the Stakeholders of the company.

##### 4.2 Audit and Risk Committee

The Audit and Risk Committee is tasked with:

- Assisting the QIB Board of Directors in defining and assessing the sustainability guidelines and ESG criteria that are relevant to QIB, as contained in this Policy;

- Assisting the Board of Directors, within the scope of its powers in evaluating the adequacy and management systems used to identify and assess the opportunities of ESG factors.

- In the context of controlling ESG factors in risk management systems, the function has the following tasks:

- During the Risk Appetite Framework process, it identifies, analyzes, and assesses ESG risks to ensure better control of the associated risks, while taking into account medium- and longterm objectives of building sustainable value;

- Working with relevant and competent departments in order to monitor the exposure to ESG risks.

##### 4.3 Sustainability Management Committee

QIB has established a Sustainability Management Committee, headed by our Group Chief Executive Officer, aimed at overseeing the sustainability strategy and performance of QIB.

The committee is responsible for:

- Drafting and enacting the sustainability committee charter;

- Providing strategic oversight and the initiation of strategy, policy and action plans on matters relating to sustainability and to recommend actions to improve ESG performance;

- Drawing together subcommittees /task groups as and when needed to deliver sustainability strategies, policies and action plans;

- Overseeing the delivery of the sustainability strategy, policy and action plans, monitoring and reviewing the related projects & initiatives and reporting progress to the Board of Directors;

- Supporting Risk Management in prioritizing and assessing ESG factors relevant to QIB;

- Developing an ESG Dashboard with key KPIs to be monitored on a regular (quarterly) basis and to set targets with the support of relevant business/support functions;

##### 4.4 Sustainability Working Group

The Sustainability Working Group is made up of focal points from each business function within QIB. Their tasks include:

- Implementation of new projects and initiatives;

- Internally reporting and managing ESG related data to the Sustainability Management Committee;

- Collecting and sharing key ESG topics with the Sustainability Management Committee with explanations necessary for the development of QIB's non-financial sustainability reporting.

Our Corporate Governance Model, based upon the principles of transparency, accountability, responsibility, justice and equality, enhances our sustainability efforts. During 2022, we invested in the development of a Sustainability Policy Framework and the establishment of a Sustainability Management Committee, reporting to the Board. Under our Governance, Ethics and Risk Management framework, we are unwavering in our commitment to these values which aid us in striving for continuous improvement and high performance. [...] Sustainability Management Committee reporting to the Board [...] The Sustainability Management Committee, headed by our Group Chief Executive Officer, has the goal of overseeing the sustainability strategy and performance of the Bank on regularly, while being responsible for: - Drafting and enacting the sustainability committee charter. - Providing strategic oversight and the initiation of strategy, policy and action plans on matters relating to sustainability and to recommend actions to improve ESG performance. - Drawing together subcommittees/task groups as and when needed to deliver sustainability strategies, policies and action plans. - Overseeing the delivery of the sustainability strategy, policy and action plans, monitoring and reviewing the related projects and initiatives and reporting progress to the Board of Directors. - Supporting Risk Management in prioritizing and assessing ESG factors relevant to QIB. - Developing an ESG dashboard with key KPIs to be monitored on a quarterly basis and set targets with the support of relevant business/ support functions. - Updating the Board of Directors regularly.

The Governance Committee is an independent committee emanating from QIB's Board of Directors. The committee acts as the official representation for communication between the Board and the Bank Management in the Governance-related issues and matters. In this context, the Committee shall, on behalf of the Board, assume the responsibility of duly overseeing and monitoring the Corporate Governance principles, directives and practices within the Bank. It shall be as well in charge of overseeing and following up on the implementation of said principles in the entire businesses and activities of the Bank. The Committee also reviews, updates, and monitors the implementation of the Governance framework. The Committee works with the Executive Management and the Audit, Risk and Compliance Committee, in addition to the Sharia Supervisory Board, to measure the suitability of these policies and procedures and their alignment with the best and latest international practices and publications such as those issued by the Financial Stability Board, the Basel Committee on Banking Supervision, and the Bank's instructions and guidelines. [...] The Governance Committee submitted several recommendations during the year 2022, including but not limited to: Key Recommendations: - Amend the Bank's Articles of Association in accordance with the text and provisions of the Governance Guidelines issued by Qatar Central Bank 2022, including: - Number of members of the Board of Directors - Number of independent members and membership term - Number of executive and non-executive members - Consider re-forming and structuring the Executive Committee to comply with the definition and number of non-executive members - Reflect other texts and provisions stipulated in the new governance law in the governance policies and procedures framework at the Bank, especially the provisions related to the tasks, responsibilities and practices of the board, the formation of committees and their membership, the number of committee meetings, conflicts of interest, and definitions of independent members in addition to training and educating members to ensure their understanding of their duties and their responsibility for the general interests of the bank.

Dedicated Sustainability Management Committee reports to the Board Nomination and Governance Committee on sustainability plans and progress [...] Our ESG governance structure supports the Bank to identify, analyze, prioritize, and act on ESG impacts, risks and opportunities at all levels of decision-making. |Body/Committee|ESG related Roles and Responsibilities| |---|---| |Board of Directors|• Responsible for overseeing ESG risks/opportunities – including but not limited to climate, data privacy and security, business ethics risks, code of conduct, financial products, diversity and inclusion, and complaint review oversights. • Approves the company's sustainability policies and sets the ESG risk appetite in line with the Bank's strategic objectives. • Provides organizational direction.| |Sustainability Management Committee Dedicated to sustainability, chaired by the CEO and comprised of members of the executive team and department heads.|• Reports directly to the Nomination and Corporate Governance Committee. • Ensure oversight of ESG risk management in financing activities. • Responsible for setting the Bank's sustainability strategy, monitoring the sustainability performance and suggesting updates and additions to the Sustainability Policy, among other responsibilities.| |Sustainability Working Group It comprises of managerial focal points from every business function|• Responsible for implementing new projects and initiatives related to ESG as a part of their managerial responsibility. • Responsible for internal ESG reporting to the Sustainability Management Committee. • Contributes to the Annual Sustainability Report • Collects and shares key ESG topics with the committee.| |Business/Support Functions|• All relevant business departments are responsible for ensuring alignment with the Bank's sustainability policies and tracking sustainability performance.| [...] The Sustainability Management Committee plays a pivotal role in setting the bank's sustainability goals, strategies, and monitoring progress. The committee meets regularly (once every quarter), to assess progress and update policies as needed, ensuring we stay at the forefront of climate risk management best practices. Further up the hierarchy, the Board Nomination and Governance Committee supervises the bank's sustainability strategy and receives updates on climate risks, with all board members trained on ESG issues.

The Governance Committee is an independent committee emanating from QIB's Board of Directors. Its mission is the official representation of communication between the Board of Directors and the Bank's management on issues and matters related to governance and nominations, and to establish specific foundations for evaluating the performance of the Board and senior employees in the executive management. This committee supervises the Implementation of the bank's sustainability strategy. It is responsible for general supervision and application of governance principles, directives and practices. Companies in the bank, specifying an appropriate plan for job succession in line with the law, the bank's policy and regulations, and the instructions of the Qatar Central Bank. It is also responsible for supervising the existence of a plan to replace senior employees in the executive management, in addition to providing the council with reports and recommendations on the extent of compliance. This committee is responsible for supervising and following up on the application of these principles in all of the bank's work. In addition to studying and evaluating candidates for membership in the Board of Directors and for senior executive positions to achieve the bank's objectives throughout the year, in accordance with governance instructions and the Commercial Companies Law. The committee also supervises the review and update of the governance framework and monitors its application in coordination with the executive management and the Audit, Risk and Compliance Committee, in addition to the Sharia Supervisory Board, in order to measure the suitability of these policies and procedures and their consistency with the best and latest international practices and issuances, such as those issued by the Financial Stability Board, the Basel Committee on Banking Supervision, and the instructions and guidelines of the Central Bank.

During 2022, we invested in the development of a Sustainability Policy framework and the establishment of a Sustainability Management Committee, reporting to the Board. Under our Governance, Ethics and Risk Management framework, we are unwavering in our commitment to these values which aid us in striving for continuous improvement and high performance. [...] The Sustainability Management Committee, headed by our Group Chief Executive Officer, has the goal of overseeing the sustainability strategy and performance of the Bank regularly, while being responsible for: [...] Overseeing the delivery of the sustainability strategy, policy and action plans, monitoring and reviewing the related projects and initiatives and reporting progress to the Board of Directors. [...] Supporting Risk Management in prioritizing and assessing ESG factors relevant to QIB. [...] Developing an ESG dashboard with key KPIs to be monitored on a quarterly basis and set targets with the support of relevant business/ support functions. [...] Updating the Board of Directors regularly.

The Sustainability Management Committee, headed by our Group Chief Executive Officer, has the goal of overseeing the sustainability strategy and performance of the Bank on regularly, while being responsible for: - Drafting and enacting the sustainability committee charter. - Providing strategic oversight and the initiation of strategy, policy and action plans on matters relating to sustainability and to recommend actions to improve ESG performance. - Drawing together subcommittees/task groups as and when needed to deliver sustainability strategies, policies and action plans. - Overseeing the delivery of the sustainability strategy, policy and action plans, monitoring and reviewing the related projects and initiatives and reporting progress to the Board of Directors. - Supporting Risk Management in prioritizing and assessing ESG factors relevant to QIB. - Developing an ESG dashboard with key KPIs to be monitored on a quarterly basis and set targets with the support of relevant business/ support functions. - Updating the Board of Directors regularly.

Dedicated Sustainability Management Committee reports to the Board Nomination and Governance Committee on sustainability plans and progress [...] Our ESG governance structure supports the Bank to identify, analyze, prioritize, and act on ESG impacts, risks and opportunities at all levels of decision-making. [...] Sustainability Management Committee Dedicated to sustainability, chaired by the CEO and comprised of members of the executive team and department heads. • Reports directly to the Nomination and Corporate Governance Committee. • Ensure oversight of ESG risk management in financing activities. • Responsible for setting the Bank's sustainability strategy, monitoring the sustainability performance and suggesting updates and additions to the Sustainability Policy, among other responsibilities. [...] Sustainability Working Group It comprises of managerial focal points from every business function • Responsible for implementing new projects and initiatives related to ESG as a part of their managerial responsibility. • Responsible for internal ESG reporting to the Sustainability Management Committee. • Contributes to the Annual Sustainability Report • Collects and shares key ESG topics with the committee.

The Governance Committee is an independent committee emanating from QIB's Board of Directors. The committee acts as the official representation for communication between the Board and the Bank Management in the Governance-related issues and matters. In this context, the Committee shall, on behalf of the Board, assume the responsibility of duly overseeing and monitoring the Corporate Governance principles, directives and practices within the Bank. It shall be as well in charge of overseeing and following up on the implementation of said principles in the entire businesses and activities of the Bank. The Committee also reviews, updates, and monitors the implementation of the Governance framework. The Committee works with the Executive Management and the Audit, Risk and Compliance Committee, in addition to the Sharia Supervisory Board, to measure the suitability of these policies and procedures and their alignment with the best and latest international practices and publications such as those issued by the Financial Stability Board, the Basel Committee on Banking Supervision, and the Bank's instructions and guidelines. [...] The Compliance Sector takes the necessary corrective and disciplinary measures in the event of discovery of any violations, and submits periodic reports to the Board of Directors on issues related to the compliance policy and procedures, to better develop them.

###### Governance Committee

The Governance Committee is an independent committee emanating from QIB's Board of Directors. The committee acts as the official representation for communication between the Board and the Bank Management in the Governance-related issues and matters. In this context, the Committee shall, on behalf of the Board, assume the responsibility of duly overseeing and monitoring the Corporate Governance principles, directives and practices within the Bank. It shall be as well in charge of overseeing and following up on the implementation of said principles in the entire businesses and activities of the Bank. The Committee also reviews, updates, and monitors the implementation of the Governance framework. The Committee works with the Executive Management and the Audit, Risk and Compliance Committee, in addition to the Sharia Supervisory Board, to measure the suitability of these policies and procedures and their alignment with the best and latest international practices and publications such as those issued by the Financial Stability Board, the Basel Committee on Banking Supervision, and the Bank's instructions and guidelines."

"###### Compliance Division

This Sector directly reports to the Audit & Risk Committee. The Bank's Governance commissions the members of the Compliance Team to extensively leverage experts' opinions and to support the Executives in charge of Compliance tasks to ensure full commitment to all the requirements of local and international legislative and regulatory bodies. The Compliance control officer shall be appointed and dismissed with the approval of the Audit, Risk and Compliance Committee, which in participation with the Executive Management shall evaluate and approve the officer's performance and rewards. The Compliance control officer shall have powers and tasks independent from the other Bank's activities and shall be responsible towards the Board and the CEO for implementing the comprehensive framework for compliance control management. Furthermore, the Compliance control officer must have the ability to influence any decisions taken that may lead to the violation by the Bank of any of the applicable laws, instructions and standards, including but not limited to: QCB, Basel Committee, Recommendations of MENA FATF and the recommendations of the AML/ CTF and the other international criteria pertaining to Corporate Governance. The Bank's Compliance team assumes an active role in reviewing the reference policies and laws and the Board's mandates to ensure full adherence to the requirements of QCB and Qatar Financial Markets Authority. Moreover, the Bank's Compliance team sets out preventive measures to ensure compliance, in particular with regard to the law, regulations and instructions on combating money laundering and terrorist financing, in addition to appropriate mechanisms for reporting any abuses and violations in a timely manner and holding those responsible accountable. The Audit, Risk and Compliance Committee shall inform the QCB immediately of any violations of its law, instructions and any other relevant laws. Meanwhile, the Compliance Sector continuously answers all queries by all of the Bank's departments to obtain clarifications regarding the applicable rules, standards, and instructions. It also provides advice to the Executive Management, the Risk Management Committee and the Board's Compliance Committee on laws, instructions, and standards, and keeps the Executive Management and the Committee constantly informed about developments in applicable laws, instructions, and standards. The Compliance Sector takes the necessary corrective and disciplinary measures in the event of discovery of any violations, and submits periodic reports to the Board of Directors on issues related to the compliance policy and procedures, to better develop them.

###### 4. FINANCIAL RISK MANAGEMENT (CONTINUED)

**Risk management framework**
The Board of Directors (the ''Board'') has overall responsibility for the establishment and oversight of the Group's risk
management framework.

The Board has established various specialized committees that
report directly to it and perform functions on its behalf to support
efficient management practice which include Compensation
and Remuneration Committee, Nomination and Governance
Committee, and Audit, Risk and Compliance committee.

The primary objective of Compensation and Remuneration
Committee is to assist the Board in its oversight responsibilities
regarding Compensation and Remuneration areas by providing
overall direction on the Remuneration and Benefits Strategy of
the Bank ensuring that the Compensation and Remuneration
Policies and Practices are consistent with the regulatory
guidelines and evaluating and recommending to the Board
incentives and other equity-based plans carefully designed to
attract and retain qualified and competent individuals. Develop
a remuneration policy to attract, retain and motivate staff,
management of the highest calibre who have the skills needed
to achieve the Bank's objectives year on year. The Committee
is responsible to ensure that it balances the interests of the
shareholders, the Bank and its employees. The Committee
meets at regular intervals during the year to perform and
comply with its mandate.

Nomination and Governance Committee is responsible for
assisting the Board in its oversight of the structure and
composition of the Board, Board members independence,
in addition to support in the implementation of the Bank's
corporate governance practices.

Audit, Risk and Compliance Committee's objective is to assist
the Board to fulfil its corporate governance and oversight
responsibilities related to the Group. This is supported through
risk management, financial reports, systems of internal
control, the internal and external audit functions and the
process of monitoring compliance with laws and regulations
and the Group's code of business conduct. The Committee role
is to report to the Board and provide appropriate advice and
recommendations on matters relevant to the Audit, Risk and
Compliance Committee charter in order to facilitate decision
making to the Board.

The Audit, Risk and Compliance Committee is assisted in these
functions by the Internal Audit and Compliance Departments.

In addition to the above mentioned committees, the
management has also established a number of multi-functional
internal committees such as the Management Committee, Credit
& Investment Committee, Assets and Liabilities Committee
(ALCO), Operational Risk Management Committee (ORMC)
and Special Assets Committee (SAC) which are responsible for
developing and monitoring Group's risk management policies
in their specified areas.

A separate Risk Management Group, reporting to the Group
Chief Executive Officer and to the Audit, Risk and Compliance
Committee, assists in carrying out the oversight responsibility
of the Board.

The Bank has a dedicated Sustainability Management Committee, chaired by the GCEO and comprised of members of the Executive Team and Departments' Heads. The committee is responsible for setting the Bank's Sustainability Strategy, monitoring the sustainability performance, and suggesting updates and additions to the Sustainability Policy, among other responsibilities. The committee reports directly to the Board of Directors. [...] The Sustainability Working Group comprises of managerial focal points from each business function within QIB. The group is responsible for implementing new projects and initiatives, internal ESG reporting to the Sustainability Management Committee, collecting and sharing key ESG data with the Committee and contributing to the Annual Sustainability Report.

The Nomination and Governance Committee is an independent committee established by the Board of Directors. Its primary role is to act as the official communication link between the Board and QIB's management on governance and nomination matters, as well as to establish specific criteria for evaluating the performance of the Board and senior executives. The Committee is responsible for general supervision and implementation of corporate governance principles, guidelines, and practices within QIB. This includes developing a suitable succession plan aligned with the law, QIB policies, and Qatar Central Bank regulations, as well as overseeing the succession planning for senior executives. Additionally, the Committee provides the Board with reports and recommendations regarding compliance and supervises the implementation of these principles across all QIB activities. The Committee also evaluates candidates for Board membership and senior executive positions to achieve QIB's goals throughout the year in accordance with governance instructions and the Commercial Companies Law. Furthermore, the Committee oversees, reviews, and updates the governance framework in coordination with executive management, the Audit, Risk, and Compliance Committee, and the Shari'a Supervisory Board. It assesses the alignment of these policies and procedures with best practices and international standards, such as those issued by the Financial Stability Board the Basel Committee on Banking Supervision, and the Qatar Central Bank. The Committee also supervises the implementation of QIB's sustainability strategy.

##### 4.1 Board of Directors

The Board of Directors of QIB are responsible for:

- Approving the sustainability guidelines contained in this Policy;

- Approving the risk appetite and tolerance with reference to ESG factors, during the process of reviewing the Risk Appetite Framework, at levels that are compatible with the strategic objectives of the bank, by including anything that could be significant in terms of sustainable success in its assessment;

- Approving any other sustainability initiatives or projects requiring Board approval, as per the Bank's authority matrix, developed as a result of and in accordance with this policy and the QIB strategies;

- Evaluating the adequacy of internal control and risk management systems with regards to ESG;

- Receiving training on ESG/sustainability and disclose the members' respective ESG-related competencies;

- Approving this Policy and its updates, considering the activities, risks, and the Stakeholders of the company.

##### 4.2 Audit and Risk Committee

The Audit and Risk Committee is tasked with:

- Assisting the QIB Board of Directors in defining and assessing the sustainability guidelines and ESG criteria that are relevant to QIB, as contained in this Policy;

- Assisting the Board of Directors, within the scope of its powers in evaluating the adequacy and management systems used to identify and assess the opportunities of ESG factors.

- In the context of controlling ESG factors in risk management systems, the function has the following tasks:

- During the Risk Appetite Framework process, it identifies, analyzes, and assesses ESG risks to ensure better control of the associated risks, while taking into account medium- and longterm objectives of building sustainable value;

- Working with relevant and competent departments in order to monitor the exposure to ESG risks.

##### 4.3 Sustainability Management Committee

QIB has established a Sustainability Management Committee, headed by our Group Chief Executive Officer, aimed at overseeing the sustainability strategy and performance of QIB.

The committee is responsible for:

- Drafting and enacting the sustainability committee charter;

- Providing strategic oversight and the initiation of strategy, policy and action plans on matters relating to sustainability and to recommend actions to improve ESG performance;

- Drawing together subcommittees /task groups as and when needed to deliver sustainability strategies, policies and action plans;

- Overseeing the delivery of the sustainability strategy, policy and action plans, monitoring and reviewing the related projects & initiatives and reporting progress to the Board of Directors;

- Supporting Risk Management in prioritizing and assessing ESG factors relevant to QIB;

- Developing an ESG Dashboard with key KPIs to be monitored on a regular (quarterly) basis and to set targets with the support of relevant business/support functions;

##### 4.4 Sustainability Working Group

The Sustainability Working Group is made up of focal points from each business function within QIB. Their tasks include:

- Implementation of new projects and initiatives;

- Internally reporting and managing ESG related data to the Sustainability Management Committee;

- Collecting and sharing key ESG topics with the Sustainability Management Committee with explanations necessary for the development of QIB's non-financial sustainability reporting.