Burgan Bank SAK

Embedding ESG in Everything We Do 16 [...] Sustainability Governance Structure Within the context of our ESG Vision and mission, Burgan Bank aims to embed sustainability within our policies, processes and governance structures. Burgan Bank is actively undergoing a transformative journey to become a key contributor to a more sustainable future with commitment to fully integrating ESG considerations into our core business culture, operations and strategic decision-making processes. This commitment guides our journey, ensuring our Bank's compliance aligns seamlessly with the highest ESG principles and best practices. ESG governance is spearheaded by the Board and oversees the work of committees and departments responsible for developing strategies and managing risks across key ESG issues. **Board** Establish sound governance structure for the implementation of sustainability **Oversight** efforts and practices in the Bank **Management ESG Committee (MESGC)** � Enables Bank's sustainability strategies and initiatives � Composed of senior management and chaired by CEO Kuwait � Develop ESG action plans and periodically review the Bank's ESG strategy � Develop and review the Bank's ESG reporting **Functional** Business lines and Risk Management Internal audit **Teams** support functions function In addition, the Executive Management Risk Committee chaired by the Group CEO reviews the ESG risks Internal audit

The ESG governance framework is spearheaded by the Board of Directors and overseen through the Management ESG Committee (MESGC), chaired by the CEO - Kuwait and composed of senior executives from across business and support departments. The Committee convenes quarterly to set direction, monitor performance, and support integration of ESG into core banking operations. This is underpinned by a comprehensive ESG roadmap, framework, and materiality matrix, which collectively ensure that the Bank's initiatives remain adaptive, pertinent, and aligned with the evolving expectations of its stakeholders.

### 5. Governance Structure For ESG

BBK recognizes that for the ESG policy to be properly integrated, effective governance structures must be implemented to ensure accountability and appropriate controls.

To this end, the Bank has established ESG Governance Structure consisting of MESGC, ESG Management Team and the position of ESG Analyst under the guidance of Board of Directors ("BoD"). The MESGC shall steer the ESG integration throughout the Bank and monitor the ESG performance of the Bank. The areas of focus will evolve over time to reflect the changing environmental and social context, community expectations and to account for new regulatory settings.

The roles and responsibilities of the various ESG governance bodies are summarized below:

5.1 BOARD OF DIRECTORS

The Board will be responsible for:

- Endorsing ESG policy statements;

- Ensure appropriate resource allocation to enable the effective operation and continual improvement of the ESG integration;

- Review and approve the ESG risk mitigation plans, and activities undertaken by the Bank;

- Conduct annual review of the progress on material ESG factors; and

- Ensure that transparent reporting on ESG is undertaken continuously.

5.2 MANAGEMENT ENVIRONMENTAL, SOCIAL AND GOVERNANCE COMMITTEE

MESGC will have the responsibility and authority according to its charter to:

- Support the Bank's on-going commitment to environmental, health and safety, corporate social responsibility, corporate governance, sustainability, and other public policy matters relevant to the Bank (collectively "ESG Matters"). It will establish ESG programs, with clear objectives and targets that contribute to the four focus pillars at BBK.

5.3 ESG MANAGEMENT TEAM

This cross-functional team shall be responsible for:

- Monitoring implementation of ESG initiatives in conjunction with business units / functions;

- Develop of action plans for any nonconformity to ESG strategy and ensure corrective and preventive action have been taken to mitigate any impacts caused;

- Review reports presented by RM team and ESG Analyst on various ESG risks;

- Drive internal communication of ESG factors between management and employees; and

- Act as a point of contact for external rating agencies regarding sustainability disclosures for BBK.

5.4 ESG ANALYST

The ESG Analysts shall be responsible for:

- Developing plans for ESG activities to be undertaken by the Bank, and present the plan to the ESG Management team and MESGC;

- Co-ordinate with the Risk Department on enterprise ESG risks;

- Facilitate the implementation of the approved ESG initiatives throughout the Bank, report on progress and escalate any issues to the ESG Management team and MESGC;

- Develop ESG reporting guidelines and prepare periodic Sustainability Report in line with the Sustainability strategy;

- Create Bank wide awareness by coordinating with management and employees for all ESG related aspects; and

- Lastly, support all on-going ESG matters at BBK.