Emirates NBD Bank PJSC

The Board of Directors (BOD) is at the forefront of ESG governance, serving as the highest authority overseeing all sustainability-related matters. They play a crucial role in shaping sustainability and climate strategies at Emirates NBD, ensuring these are integrated into the initiatives and operations through the designated Board-level committees. The BOD has established two key committees: the Board Risk Committee (BRC) and the Board Nomination, Remuneration and ESG Committee (BNRESGC), which hold decision-making authority in these areas. In their annual strategic and financial planning sessions, the Board assesses sustainability and climate-related risks and opportunities. ESG and climate initiatives are monitored and reviewed to adapt to evolving markets and regulatory conditions, with a formal review conducted annually. [...] Board Nomination, Remuneration and Environmental Social Governance Committee (BNRESGC) The BNRESGC oversees the Group's alignment with the ESG and corporate sustainability strategy and oversees both risks and opportunities management relating to sustainability, including the development of new products, regulatory alignments and capitalisation on emerging ESG trends in the banking sector. The BNRESGC is responsible for approving sustainability-related targets for the Group including sustainable finance targets, when proposed by the Chief Sustainability Officer & Group Head of ESG. Based on these targets, the BNRESGC also oversees incentives and other emoluments across the Group, deciding on appropriate incentives for the achievement of targets (depending on whether a target is "achieved", "mid-stretched" or "stretched"). The BNRESGC ensures alignment between the Group's ESG efforts and its long-term sustainability goals and adherence to the Group Net Zero pathway by overseeing the implementation and progress of ESG initiatives and programmes and reviewing progress every quarter. The BNRESGC is also responsible for reviewing and approving ESG -related documents across the Group, including policies, procedures and disclosures. The BNRESGC discusses sustainability and climate-related issues during its meetings when consulted by the Chief Sustainability Officer & Group Head of ESG in periodic committee meetings. Sustainability and climate related topics are also prioritised as a topic of general discussion in various other committee-led forums which are subsequently incorporated into the committee agendas. [...] The BRC is responsible for the oversight and management of ESG risks, integral to its role in guiding the Board on the Group's overall risk strategy, appetite and tolerance. The BRC approves critical sustainability policies and frameworks, including the Group's Environmental and Social Risk Policy and (ESRP) Framework and Climate Risk Policy. It also authorises the methodology for the Environmental and Social (ES) risk scorecard and assesses key climate risk elements, such as risk appetite, evaluation procedures and stress test results. The BRC's responsibilities encompass a broad spectrum of risks, including Credit Risk, Market Risk, Asset-Liability Risk, Capital Risk, Operational Risk, Conduct Risk (ensuring compliance with Consumer Protection Regulations and Standards from the CBUAE), Reputational Risk, Compliance/Financial Crime Risk, Legal Risk, Strategic Risk, Shari'ah Risk, Model Risk and Environmental and Social Risk. Additionally, the BRC oversees the Internal Capital Adequacy Assessment Process (ICAAP) and stress testing processes to confirm that the Group's capital is sufficient to meet regulatory standards and support its strategic objectives in challenging conditions. The BRC meets quarterly to review the diverse risks impacting the Group's operations. It collaborates with the BNRESGC to ensure the BOD receives regular updates on risk management. The BRC also keeps the BOD informed about advancements in risk management practices within the banking industry and the Group itself. [...] Chief Sustainability Officer & Group Head of ESG, operating within the Group EXCO, is responsible for the development and implementation of ESG-related policies and risk frameworks. He plays a key role in establishing periodic communication between the Board and the management team on ESG and works alongside the Group Head of Risk on climate-related issues. These considerations are integrated into the agenda across executive and non-executive levels. Alongside contributing their own expertise to further the sustainability agenda, the CSO and the GCRO ensure that employees within each department are equipped with appropriate competencies and skills. Collectively, they ensure the strengthening of processes, frameworks, policies and capabilities to institutionalise the management of sustainability and climate-related risks and opportunities across the Group. [...] The Group ESG team is a key working group in driving sustainability at Emirates NBD. It collaborates with the CSO and Enterprise Risk Management (ERM) to define the sustainability strategy, monitoring sustainability and climate-related risks and opportunities affecting the Group and its subsidiaries, including regulatory changes, macroeconomic factors and investor demand. Updates and developments to the sustainability strategy are proposed by the ESG team, in collaboration with other departments and are approved by the CSO. These recommendations are validated by the Group EXCO and ultimately approved by the BNRESGC. The Group ESG team is responsible for outlining the annual ESG strategy, ensuring effective governance through the monitoring of regulations and providing periodic updates to the BNRESGC. The team ensures that reporting requirements are met in line with global frameworks while adhering to local reporting guidelines, with relevant updates shared with rating agencies. The Group ESG team are responsible for the day-to-day collation, monitoring and tracking of the Group's sustainability-related targets and metrics, including the Group's Scope 1, 2 and 3 emissions (excluding the calculation of financed emissions).

Furthermore, in 2024, the Group established a SFF to advance our sustainable finance business in line with the Group Product Governance Committee. The SFF ensures proper governance of sustainable finance transaction labelling while aligning customer profiles with the ESRP Framework to mitigate non-financial risks. The SFF will oversee the following: - The categorisation and labelling of lending activities according to the Group's Sustainable Loan Taxonomy and the relevant principles from Loan Market Associations, including Loan Syndications and Trading Association ("LSTA")/LMA Green Loan Principles ("GLPs"), Sustainability Linked Loan Principles ("SLLPs"), and Social Loan Principles ("SLPs"). It will also facilitate adherence to ICMA's Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines ("SBG"), and Sustainability Linked Bond Principles to effectively manage greenwashing risks at the client and transaction level. - The clearance and progression of transactions involving customers with potential ESG concerns or deviations from the ESRP Framework, as escalated by risk stewards or senior management. The governance framework will facilitate discussions on climate change and evolving ESG regulations, ensuring that risks and opportunities are integrated into management activities. [...] The Board Nomination, Remuneration, and ESG Committee ("BNRESGC") actively implements governance policies that align the interests of the committee and Senior Management with shareholders and other stakeholders. It oversees ESG matters alongside the Group EXCO, playing a key role in integrating ESG into strategic objectives, projects, and operations. The Group EXCO provides quarterly updates on the strategy's progress. During the annual strategic and financial planning process, the BNRESGC reviews our ESG strategy, including climate risks and opportunities, to ensure it reflects current trends. Key topics like sustainable finance, climate and sustainability related regulations, ESG disclosures and policies are regularly discussed.

The Emirates NBD Governance Framework identifies the responsibilities and accountabilities of the Board and individual Board Directors, Board Committees, and supporting management committees. It also provides an overview of the overall governance approach within Emirates NBD. More information on the Governance Framework is available within our 2023 Corporate Governance Report available on our corporate website at www.emiratesnbd.com. The Board of Emirates NBD (hereinafter referred to as the "Board") bears the final responsibility for all aspects concerning climate change risks. The Board actively participates in shaping our ESG strategy and is regularly briefed on the progress of this strategy by the Group Executive Committee. As part of the yearly strategic and financial planning, the Board assesses our ESG strategy, encompassing climate-related risks and prospects, to ensure that our approach to ESG matters remains aligned with emerging trends and approved strategies. [...] The Board exercises primary oversight over Emirates NBD's strategic stance on climate change. This includes oversight over Emirates NBD's strategy to manage both risks and opportunities arising from climate-related factors. This strategy is driven by the Group EXCO, the BRC and the BNRESGC. [...] The BRC sets the overall risk strategy and approves risk-related frameworks and policies. The BRC has oversight of the establishment and operation of risk management systems and receives regular updates on their effectiveness. It reviews risk exposures, risk profiles and risk concentration reports on a regular basis through quarterly risk monitoring supported by the Risk Management Department. BRC provides oversight on risk management as part of its responsibility to advise the Board on the overall risk strategy, risk appetite, risk tolerance along with risks arising from climate change. The BRC operates to ensure that the objectives of risk management remain aligned and in adherence to established benchmarks and applicable regulations. This dedicated oversight guarantees that the organisations risk management objectives retain their integrity and regulatory conformity along with embracing ESG regulations. [...] Management responsibilities are aligned to the Group's objectives and operate under the direct authority of the Board. Senior Management helps to drive decision making across several areas of the business, including the management of assets, risk, credit and investment, procurement, information security, and evaluate risks and opportunities arising from climate change.

The Board of Emirates NBD (hereinafter referred to as the "Board") bears the final responsibility for all aspects concerning climate change risk. As part of the yearly strategic and financial planning, the Board assesses our ESG strategy, encompassing climate-related risks and opportunities, to ensure that our approach to ESG matters remains aligned with emerging trends and approved strategies. [...] The Group has a board-approved Climate Risk policy in place that integrates the climate risk into the Group Risk Management framework. The purpose of the policy is to enhance the resilience to and management of climate risks for the Group, providing assurance to shareholders, investors, regulators, and other stakeholders that climate risks threatening the organisation's financial performance and robustness are identified, measured, mitigated, monitored, and reported, and that the Group appropriately adapts to changing regulatory demands. Relevant risks and opportunities are incorporated into the Group's centralised enterprise risk management programme. [...] The Group actively monitors climate risk exposures and financed emissions at both customer and portfolio levels. At the customer level, the business units monitor on an ongoing basis for any adverse climate-related activity, or potential non-compliance with the Group's policies. At the portfolio level, the Group ERM (Enterprise Risk Management) team monitors climate risks. [...] In 2024, has established a Sustainable Finance Forum (SFF) to ensure business development of our sustainable finance (SF) business in line with Group Product Governance Committee including proper governance of the labelling and recording of SF transactions. The SFF will also align customer profiles and related transactions to Environmental & Social Risk Policy to protect the bank from non-financial risk concerns. The SFF will ensure governance is in place to review approve and endorse the following: - The categorisation and labelling of lending activity in accordance with the Group's consistent Sustainable Loan Taxonomy and the relevant Loan Market Associations principles such as LSTA/LMA Green Loan Principles ("GLPs"), Sustainability Linked Loan Principles ("SLLPS") and Social Loan Principles ("SLPs") – as well as, for facilitation, ICMA's Green Bond Principles (GBP), Social Bond Principles (SBP), Sustainability Bond Guidelines (SBG) and the Sustainability Linked Bond Principles (SLBP) - in order to effectively manage client/transaction level greenwashing risk. - Clearance and progressing with transactions as well as on borrowing and non-borrowing customer's profiles with either potential ESG concerns or warranting deviations from ESR policy, that have been escalated by risk stewards or senior management.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]We are engaging our external stakeholders through our materiality assessment using GRI and SASB this will allow us to explain our climate strategy and gain our partners input