Kenanga Sustainability Report 2024

SUSTAINABILITY REPORT 2024

Supplementary information is available on our website: https://www.kenanga.com.my. OUR REPORTS The Integrated Annual Report 2024, Corporate Governance Report 2024 and Sustainability Report 2024 are our primary reports. Integrated Annual Report Provides an overview of Kenanga Group’s financial performance, as well as business highlights of the year. Corporate Governance Report Provides an overview of Kenanga Group’s corporate governance and how it facilitates effective management to deliver long-term value for the Group. Sustainability Report Provides an understanding of Kenanga Group’s sustainability ambitions, initiatives and progress, as well as how it is integrated across the business. Kenanga is committed to making a difference in the environment. Play your part by opting to download a softcopy of our reports at www.kenanga.com.my/investor-relations/AGM2025/ or by scanning the QR code above. 51ST ANNUAL GENERAL MEETING INSIDE THIS REPORT Reference to pagination Reference to website Thursday, 29 May 2025 11:00 a.m. The Grand Ballroom, InterContinental Kuala Lumpur 165, Jalan Ampang 50450 Kuala Lumpur, Wilayah Persekutuan, Malaysia 01 BASIS OF THIS REPORT 2 Reporting Scope and Boundaries 2 Guidelines and Standards 3 Reporting Assurance 3 Materiality 3 Forward-Looking Statement Disclaimer 07 ENVIRONMENTAL STEWARDSHIP 58 Climate Impact 08 EMPOWERING PEOPLE AND COMMUNITIES 80 Diversity and Inclusion 85 Employee Safety, Health, and Wellbeing 89 Talent Attraction, Development, and Management 96 Community Investment 100 Financial Inclusion 09 APPENDIX 103 Year-On-Year ESG Performance Table 109 GRI Content Index 113 Bursa Malaysia Sustainability Reporting Disclosures 117 Statement of Assurance 121 Key Terms Glossary 06 SUSTAINABLE ECONOMIC GROWTH 42 Responsible Investing 48 Digitalisation 53 Cyber Security 55 Client Experience 02 KENANGA AT A GLANCE 4 We are Kenanga 5 Corporate Structure 6 Our Core Business Segments 8 Our Notable Recognitions in 2024 04 OUR APPROACH TO SUSTAINABILITY 17 An Insight into Our Stakeholders’ Perspectives 18 What is Material to Us 19 Kenanga’s Double Materiality Matrix 20 Material Topics, Key Risks and Opportunities 24 Our ESG Framework 25 Our Sustainability Goals and Roadmap 05 GOOD GOVERNANCE 28 Good Business Conduct 32 Risk Management 35 Regulatory Compliance 03 LEADERSHIP STATEMENTS 10 Chairman's Message 13 Q&A with Our Group Managing Director and Chairman of the Group Sustainability Management Committee COVER RATIONALE At Kenanga, our core values—agility, collaboration, trustworthiness, and future-facing—continue to guide us as we evolve in a fastpaced and competitive financial landscape. These values anchor our commitment to delivering performance with integrity, while embracing innovation and growth. The bamboo shoots on this year’s cover symbolise strength, adaptability, and steady progress—mirroring our growth journey and resilience in navigating change. It reflects our continued market leadership across all core businesses and our unwavering focus on creating sustainable value for our shareholders. The interactive PDF allows you to access information easily, search for a speci c item, view website or navigate between pages, sections and links. Previous Page Next Page Content List Search

KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2024 BASIS OF THIS REPORT OUR APPROACH TO SUSTAINABILITY KENANGA AT A GLANCE GOOD GOVERNANCE LEADERSHIP STATEMENTS SUSTAINABLE ECONOMIC GROWTH ENVIRONMENTAL STEWARDSHIP EMPOWERING PEOPLE AND COMMUNITIES APPENDIX 3 2 BASIS OF THIS REPORT BASIS OF THIS REPORT Kenanga Investment Bank Berhad (“KIBB”) and its subsidiaries (“Kenanga” or “the Group” or “Kenanga Group”) presents its fourth standalone Sustainability Report for the financial year 2024 (“FY2024”). This Report complements the Sustainability Statement within our Integrated Annual Report 2024. This Report details our management approach to key environmental, social, and governance (“ESG”) issues, performance, and goals that are relevant to our business and stakeholders. It charts our progress in embedding sustainability into our strategies, business practices, products, and services to deliver long-term value to our stakeholders. In FY2024, we enhanced our disclosures by expanding our Scope 3 coverage to include emissions from Category 15— Investments, which covers our Financed and Facilitated Emissions, establishing a more comprehensive baseline for greenhouse gas emissions (“GHG”). Additionally, we conducted our first double materiality assessment, providing deeper insights into the financial and environmental impacts of our operations and sustainability efforts. Reporting Scope and Boundaries This Report includes data for the full fiscal year, from 1 January 2024 to 31 December 2024 (“2024” or “FY2024”), covering our operations in Malaysia, including our headquarters, at Kenanga Tower, in Kuala Lumpur and our branches nationwide, unless stated otherwise. All monetary values are reported in Malaysian Ringgit (“RM”). Guidelines and Standards This Report complies with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) and has been prepared with reference to the Global Reporting Initiative (“GRI”) Standards 2021. The full GRI Content Index can be found on pages 109 to 112 of this Report. To fulfil the membership requirements of the UN Global Compact (“UNGC”), this Report also serves as our Communication on Progress (“CoP”). This Report is also being prepared to meet the applicable requirements set forth by the National Sustainability Reporting Framework (“NSRF”), which will be implemented in phases starting from 1 January 2025. Under the NSRF, the International Sustainability Standards Board (“ISSB”) and IFRS Foundation’s International Financial Reporting Standards (“IFRS”) S1 and S2 will be the reference disclosure standards for companies in Malaysia. As we adopt a gradual approach to climate-related disclosures, we will continue aligning our climate reporting with the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations, ensuring compliance with local regulatory requirements. To improve the transparency of our reporting, the ESG disclosures within this Report have been aligned more closely with the following applicable local and global sustainability frameworks, standards and guidelines: • Bursa Malaysia Sustainability Reporting Guide (3rd Edition) • the United Nations Sustainable Development Goals (“UN SDGs”) • Bank Negara Malaysia’s Climate Change and Principle-based Taxonomy (“BNM CCPT”) • the UNGC’s Ten Principles • the Malaysian Code of Corporate Governance (“MCCG”) by the Securities Commissions Malaysia (“SC”) We have also benchmarked our disclosures and indicators against internationally recognised ESG ratings and frameworks, particularly the Financial Times Stock Exchange (“FTSE”) Russell’s ESG Ratings and the Sustainability Accounting Standards Board (“SASB”) indicators. We calculated our GHG emissions using the GHG Protocol Corporate Standards for Scope 1, 2 and 3 and Partnership for Carbon Accounting Financials (“PCAF”) for the calculation of Scope 3, Category 15 – Investments. This international framework, developed by the World Business Council for Sustainable Development (“WBCSD”) and World Resources Institute (“WRI”), provides guidance and standards for organisations to prepare a GHG emissions inventory. Reporting Assurance This Report, along with the Sustainability Statement 2024, has been reviewed and approved by the Group Sustainability Management Committee (“GSMC”), Group Governance, Nomination & Compensation Committee (“GNC”), Audit Committee (“AC”), and the KIBB Board of Directors. We appointed SIRIM QAS International Sdn Bhd (“SIRIM”), a leading national certification, inspection and testing body, to provide assurance for the selected key indicators in this Report related to energy management, GHG emissions (Scope 1 and Scope 2), water consumption, employee workforce profile, as well as training and development data. In 2024, we expanded the scope of assurance to include performance appraisals, new hire and employee turnover rates data. We strive to expand the scope of assured data in future reports while continuously refining our data collection processes to enhance disclosures. Extract of SIRIM Independent Assurance Statement: Based on the scope of the assessment process and evidence obtained, nothing has come to our attention that causes us to believe that KIBB has not complied with, in all material respects, the referred assurance standard and guide. The following represents SIRIM QAS International’s opinion: • The level of data accuracy included in the report to be fairly stated. • The level of disclosure of the selected sustainability performance information presented in the report to be properly prepared. • The personnel responsible were able to demonstrate the origins and interpretation of data contained in the report. Materiality This Report was prepared based on the material matters identified through our double materiality assessment, which was conducted for the first time in 2024, in response to the evolving business landscape and stakeholder demands. Following the assessment, we identified and added two (2) new material matters—Financial Inclusion and Risk Management—to our list of material matters. Feedback and Accessibility We welcome your comments and feedback. Please send them to: Group Marketing, Communications and Sustainability Kenanga Investment Bank Berhad Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia Tel: +603-2172 2888 Email: [email protected] Our Sustainability Report 2024 is also available on our corporate website: https://www.kenanga.com.my/who-we-are/sustainability Forward-Looking Statements Disclaimer This Report contains forward-looking statements regarding future performance, based on current assumptions and circumstances. Various factors—such as changes in stakeholders’ ESG priorities—may cause actual results to differ materially from those expressed or implied in these statements. As such, the relevance of forward-looking statements will be reviewed in future reports as needed. SCAN HERE for more information and downloads. For more information on how we manage our material matters, please refer to pages 18 to 23 of this Report. For the full SIRIM Independent Assurance Statement, please refer to pages 117 to 120 of this Report.

KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2024 BASIS OF THIS REPORT OUR APPROACH TO SUSTAINABILITY KENANGA AT A GLANCE GOOD GOVERNANCE LEADERSHIP STATEMENTS SUSTAINABLE ECONOMIC GROWTH ENVIRONMENTAL STEWARDSHIP EMPOWERING PEOPLE AND COMMUNITIES APPENDIX 11 10 CHAIRMAN’S MESSAGE Kenanga Investment Bank Berhad’s sustainability journey has been one of determination, progress, and purpose. Looking back, we see not just milestones, but the collective effort of individuals who believe in doing what is right. DEAR SHAREHOLDERS, While the challenges have emerged along the way, our resolve remains steadfast, because meaningful change takes time, resilience, and the courage to challenge the status quo. Recognising the growing importance of sustainability, the Board took a decisive step in 2021 by establishing a Group Sustainability Management Committee, led by Group Managing Director, Datuk Chay Wai Leong. This was more than just a structural shift; it was a signal of intent—a commitment to embedding Environmental, Social and Governance (“ESG”) into the fabric of our organisation. Since then, we have moved from discussions to implementation, turning policies into measurable impacts and challenges into opportunities for progress. With each step, our ambitions have sharpened and become more focused. From integrating climate risk into our business strategy to launching the Group Sustainability Policy in 2024, we are not just responding to change, we are driving it. In 2025, the establishment of sub-committees and working groups will further strengthen our governance framework, ensuring sustainability is embedded at every level of our operations. GOVERNANCE: THE CORNERSTONE OF TRUST AND INTEGRITY At Kenanga, governance is more than a framework—it is the foundation that upholds trust, reinforces resilience, and safeguards our responsibilities to stakeholders. In an environment of rapid change and heightened risks, maintaining the highest standards of ethical conduct remains central to our long-term sustainability. This year, our annual Fraud Awareness Week (“FAW”) returned in person for the first time since the Covid-19 pandemic, reaffirming our commitment to fraud prevention and accountability. Themed “Innovate, Integrate, Insulate”, the event brought together key industry stakeholders, including the Malaysian Anti-Corruption Commission (“MACC”), the Securities Commission, and Bursa Malaysia, to strengthen joint efforts in combating financial crime. More than just raising awareness, FAW reflects our proactive approach to fostering transparency and protecting the integrity of the financial ecosystem. Similarly, the launch of our inaugural Compliance Awareness Week marked another milestone in strengthening our governance culture. Since updating our whistleblowing policy to the Group Speak Up Policy in 2023, we have encouraged stakeholders to share any grievances through the independently managed platform, promoting transparency and accountability. By fostering open dialogue and equipping employees with deeper insights into compliance and ethical decision-making, we ensure integrity is not just a principle, but a deeply embedded value in Kenanga. TAN SRI DATO’ SERI SYED ANWAR JAMALULLAIL Chairman As we look ahead, we remain committed to strengthening our governance framework, ensuring that the Group’s legacy is defined not only by financial success, but also by a commitment to integrity and responsible leadership. FOSTERING A COLLECTIVE ESG CULTURE Our sustainability journey has never been a solitary pursuit. Strong partnerships, including our long-standing collaboration with the United Nations Global Compact Network Malaysia & Brunei, alongside engagement with various key stakeholders have been pivotal in shaping our ESG approach. At the heart of this transformation are our employees. From the outset, we have worked to cultivate a shared vision, equipping them with the knowledge and skills to navigate an evolving sustainability landscape. What began as online modules during the pandemic has since expanded into a dynamic and comprehensive programme, designed to embed ESG principles into everyday decision-making. A major milestone was the launch of our first annual Sustainability Day in 2024, following the success of the in-house-led Sustainability Roadshow the previous year. This event not only showcased our journey and progress but also celebrated the tangible impact we have created. By bringing together employees, vendors and suppliers, we sparked meaningful discussions and encouraged broader adoption of sustainable practices. At Kenanga, building ESG literacy is an ongoing priority. As we move forward, we are confident our approach will set new standards, creating lasting outcomes within the Group and across our ecosystem. TAKING CLIMATE ACTION Our journey towards environmental stewardship has been one of continuous progress, shaped by the ambition for more sustainable operations. In recent years, we took deliberate steps to reduce our environmental footprint, beginning with enhancements to our heating, ventilation, and air conditioning systems, which earned national recognition at the prestigious National Energy Awards, a testament to our people’s commitment to environmenntal sustainability. In 2024, we pushed the envelope further by subscribing to Tenaga Nasional Berhad’s Green Electricity Tariff, allowing us to source over 90% of Kenanga Tower’s electricity consumption from renewable energy. This milestone not only underscores our commitment to reducing our carbon footprint but also reinforces our support for the nation’s transition to a low-carbon economy. Our efforts did not stop there. Recognising the urgency of climate action, we developed a Decarbonisation Roadmap in 2024, with implementation commencing in 2025. This roadmap provides a structured approach to addressing our Scope 1 and 2 emissions while expanding our focus on managing and disclosing Scope 3 emissions. Establishing a Scope 3 baseline marks an essential step in gaining a more in-depth understanding of our overall environmental impact and ensuring our reduction strategies align with global best practices. Beyond operational improvements, we have adopted a broader, forward-looking approach to climate resilience. In 2024, we conducted a climate scenario analysis to assess potential climate-related risks and opportunities, equipping us with deeper insights to navigate the evolving regulatory and market landscape. These findings not only guide our Decarbonisation Roadmap but also strengthen our ability to mitigate risks while seizing opportunities in the green economy. DEEPENING OUR COMMITMENT TO SOCIAL RESPONSIBILITY True leadership extends beyond financial success—it is about creatingmeaningful change, empowering communities, and shaping a more inclusive future. Over the years, we have moved beyond one-off contributions to forging deep, long-term partnerships that drive sustainable impact. Our collaboration with social enterprises - Silent Teddies Bakery and Dialogue Includes All (“DIA”) exemplifies this commitment. What began as modest partnerships over 13 years ago has since evolved into deeply rooted initiatives that champion inclusivity. CHAIRMAN’S MESSAGE

KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2024 BASIS OF THIS REPORT OUR APPROACH TO SUSTAINABILITY KENANGA AT A GLANCE GOOD GOVERNANCE LEADERSHIP STATEMENTS SUSTAINABLE ECONOMIC GROWTH ENVIRONMENTAL STEWARDSHIP EMPOWERING PEOPLE AND COMMUNITIES APPENDIX 13 12 CHAIRMAN’S MESSAGE We continue collaborating with DIA to host unique empathy workshops, led by visually impaired trainers, equipping our employees and agents with perspectives on accessibility, compassion, and communication. Similarly, our ongoing support for Silent Teddies Bakery has expanded beyond product purchases to on-site employee volunteerism, and funding of their café revitalisation project in 2024, which included sponsorships of new equipment and barista training for hearing-impaired teammembers. As a signatory of theWomen’s Empowerment Principles (“WEPs”), we continue to advocate for gender equality and leadership diversity. With women making up 52% of our workforce, we remain resolute in fostering an inclusive environment where talent is recognised and opportunities are equitable. In 2024, we also strengthened our sexual harassment and anti-discrimination policies to provide a safe, respectful, and inclusive workplace. At the same time, we organised our inaugural Employee Health Day to reinforce our commitment to holistic wellbeing, providing wellness talks, health screenings, and support systems for our employees. To strengthen workplace safety, we formalised a Group Occupational, Safety and Health Committee, establishing a structured and proactive approach to safeguard our employees. We are proud to have received the Silver Award in the Large Companies Tier at The Star ESG Positive Impact Awards 2023 for Diversity and Inclusion. This recognition reaffirms our leadership in cultivating a workplace where diverse perspectives fuel innovation, resilience, and long-term success. As we move forward, Kenanga’s role as a purpose-driven organisation has never been clearer. We are not just adapting to change, we are driving it through collaboration, inclusion, and a dedication to making a lasting difference. RECOGNITION AND INDUSTRY ACHIEVEMENTS Our strides in advancing ESG have led to continued recognition on both national and international platforms. We are proud to have retained our place on the prestigious FTSE4Good Bursa Malaysia Index, with an improved score of 4.2, placing us in the 92nd percentile among Malaysian public listed companies. This achievement reflects our steady progress and serves as both encouragement and a responsibility to further advance our ESG efforts. We are also honoured to be recognised among the Top 20 Overall Excellence Award winners at the National Corporate Governance & Sustainability Awards by the Minority Shareholders Watch Group, as well as to receive Euromoney’s Best for ESG award in the Securities Houses category. These acknowledgements are more than milestones; they remind us that the work we do serves a broader purpose. Beyond accolades, what truly matters is the trust our stakeholders place in us. Each recognition strengthens our resolve to drive meaningful change—not just within our organisation, but across the broader ecosystem. Sustainability is an ongoing journey and we remain committed to staying the course with integrity, accountability, and a shared vision for a better tomorrow. LOOKING AHEAD TO 2025: AMPLIFYING OUR ESG IMPACT As we look towards 2025, we are guided by the understanding that real progress requires thoughtful solutions and continuous efforts. Embedding ESG into the core of our business—and beyond—is a journey that demands resilience, collaboration, and a shared commitment to a more sustainable future. The true impact extends beyond policies and frameworks; it is measured by the trust we cultivate, the awareness we foster, and themeaningful change we drive and inspire across our ecosystem. In the year ahead, we will focus on deepening engagement—not only within our organisation but also with those who walk this path alongside us. Clients, vendors, investors, and communities all play a role in shaping a more responsible and forward-thinking world. Education and empowerment will continue to be central to our approach. As sustainability challenges and opportunities evolve, we must continue equipping ourselves and our stakeholders with the right insights, ensuring that we can adapt, innovate, and lead in a rapidly changing landscape. With our Decarbonisation Roadmap set to take shape in 2025, we remain mindful that transformation does not happen overnight. It requires perseverance, continuous learning, and a commitment to progress. Our vision is clear: to create lasting value, where sustainability is not just a priority but an enduring resolve for generations to come. ACKNOWLEDGMENTS I would like to extend my deepest gratitude to our Founder Emeritus and Advisor, YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku Ismail, for her visionary leadership and constant support. My heartfelt appreciation also goes to the Group Sustainability Management Committee, led by Datuk Chay Wai Leong, whose dedication continues to drive our sustainability agenda forward. I am equally grateful to our employees for their tireless efforts and resilience in a dynamic and challenging environment. To our clients, business partners, suppliers and shareholders, thank you for your continued trust and collaboration. Lastly, I wish to acknowledge our regulators, including Bank Negara Malaysia, Bursa Malaysia and the Securities Commission Malaysia, for their invaluable guidance and support. Q&A WITH OUR GROUP MANAGING DIRECTOR AND CHAIRMAN OF THE GROUP SUSTAINABILITY MANAGEMENT COMMITTEE DATUK CHAY WAI LEONG Group Managing Director Q1 Beyond regulatory requirements, how does Kenanga measure the success of its sustainability efforts, and how do you ensure accountability? As a financial services player, regulatory compliance is crucial to our operations. In addition to guidance from regulators, we also adopt globally recognised ESG benchmarks to quantify our progress. Our continued inclusion onto FTSE4Good Bursa Malaysia Index, one of the world’s first global ESG index families is a testament to our ESG performance. In the most recent December assessment cycle, our ESG score rose to 4.2, placing us in the 92nd percentile among the Malaysian public listed companies. To ensure accountability and execution, we have integrated ESG goals and targets into our Balanced Scorecard framework, making sustainability a performance-driven priority across the organisation. These targets are cascaded from leadership to business units, aligning sustainability objectives with key operational metrics. This ensures that ESG considerations are embedded in decision-making, risk management, and long-term strategic planning. Q2 As ESG scrutiny intensifies, how does Kenanga ensure its sustainability initiatives are credible and not just box-ticking exercises? Greenwashing is a real risk, and we take a proactive stance to ensure transparency and accuracy. Our ESG disclosures are supported by clear methodologies, third-party verification, and alignment with global reporting standards. We also actively engage with investors and regulators to enhance our ESG data quality and avoid misleading claims. Since 2023, we have appointed SIRIM QAS International Sdn Bhd, a leading national certification, inspection, and testing body, to independently verify key indicators in our Sustainability Report, reinforcing our commitment to credible, traceable, and high-quality disclosures.

KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2024 BASIS OF THIS REPORT OUR APPROACH TO SUSTAINABILITY KENANGA AT A GLANCE GOOD GOVERNANCE LEADERSHIP STATEMENTS SUSTAINABLE ECONOMIC GROWTH ENVIRONMENTAL STEWARDSHIP EMPOWERING PEOPLE AND COMMUNITIES APPENDIX 15 14 Q3 What is your view on climate change, and how is Kenanga responding to it? Climate change presents both risks and opportunities, and we take a measured, pragmatic approach to integrating climate considerations into our business strategy. As regulations and policies evolve, we remain focused on balancing sustainability ambitions with business resilience and long-term value creation. A key step in this journey has been strengthening our Scope 3 emissions baseline in 2024, especially for Category 15 – Investments, which includes our Financed and Facilitated Emissions, in addition to Business Travel and Employee Commute. This data-driven approach enables us to assess material risks and refine our decarbonisation strategy in alignment with business priorities. We have also developed a Decarbonisation Roadmap, outlining practical, phased measures to reduce Scope 1 and Scope 2 emissions. This roadmap aligns with evolving global standards such as IFRS S1 and S2 while remaining responsive to economic realities. In terms of operational emissions, we began subscribing to the Green Electricity Tariff from Tenaga Nasional Berhad in 2024, enabling over 90% of electricity consumption at Kenanga Tower to come from renewable energy sources, further reducing our carbon footprint. Beyond operational emissions, we have conducted climate risk scenario analyses to enhance the climate resilience of our portfolios, ensuring agility and adaptability in a rapidly evolving climate landscape. Ultimately, our approach to climate action is rooted in business pragmatism, regulatory compliance, and risk-adjusted decision-making. While global sentiment on climate policies may shift, Kenanga remains committed to delivering long-term, sustainable growth by aligning environmental responsibility with financial performance and stakeholder expectations. Q&A WITH OUR GROUP MANAGING DIRECTOR AND CHAIRMAN OF THE GROUP SUSTAINABILITY MANAGEMENT COMMITTEE Q4 What are some key highlights of Kenanga’s progress on Social and Governance aspects of sustainability? Governance has always been a cornerstone of Kenanga’s corporate identity, deeply embedded in our culture and decision-making. As a financial institution, robust governance is not just a regulatory requirement—it is fundamental to maintaining trust, safeguarding financial stability, and ensuring long-term sustainability. In 2024, we continued to strengthen our governance framework, reinforcing accountability, transparency, and risk management across all levels of the organisation. Our 8th annual Fraud Awareness Week, themed “Innovate, Integrate, Insulate”, reaffirmed our industry leadership in fraud prevention initiative by bringing together key stakeholders to exchange best practices and enhance collective vigilance. Likewise, our Compliance Awareness Week deepened employees’ understanding of ethical business conduct, regulatory compliance, and online fraud prevention, ensuring integrity remains a core part of our culture. Beyond governance, we take a long-term, partnership-driven approach to social impact, shifting from one-off contributions to fostering sustained and meaningful change. For over a decade, we have actively supported social enterprises, such as Silent Teddies Bakery and Dialogue Includes All, alongside more recent grassroots collaborations with non-governmental organisations such as Pertiwi Soup Kitchen and Pertubuhan Rahoma Darul Fakir Malaysia, aiming to uplift marginalised communities. In 2024, we invested over RM640,000 in community initiatives, directly impacting the lives of more than 2,500 individuals facing hardships. Q&A WITH OUR GROUP MANAGING DIRECTOR AND CHAIRMAN OF THE GROUP SUSTAINABILITY MANAGEMENT COMMITTEE Q5 What’s next for Kenanga in terms of sustainability? Sustainability is fundamental to long-term value creation and risk management. We remain steadfast in advancing our ESG priorities while staying agile in responding to shifting policies, investor sentiments, and global market dynamics. We look forward to implementing our Decarbonisation Roadmap, which will help us better understand and manage our environmental impact across our operations and value chain. In parallel, the upcoming introduction of a Group Responsible Investment Framework will harmonise the integration of ESG considerations into our investment strategies and decision-making across the Group. With the rollout of the National Sustainability Reporting Framework on the horizon, we are also working to ensure our teams are equipped with the necessary skills and expertise to support its implementation. Last but not least, financial inclusion remains central to our mission, and through our KDi GO, we are making strides in democratising access to financial services. This platform provides users with easy access to a broad range of financial tools — from savings and investing to cross-border remittance, stock trading and cryptocurrency trading-empowering individuals with the ability to manage their finances seamlessly under one app. In this coming year, we will continue refining KDi GO’s functionalities and offerings. With the KDi GO, we are supporting inclusive growth while advancing our commitment to a sustainable financial ecosystem.

KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2024 BASIS OF THIS REPORT OUR APPROACH TO SUSTAINABILITY KENANGA AT A GLANCE GOOD GOVERNANCE LEADERSHIP STATEMENTS SUSTAINABLE ECONOMIC GROWTH ENVIRONMENTAL STEWARDSHIP EMPOWERING PEOPLE AND COMMUNITIES APPENDIX 19 18 WHAT IS MATERIAL TO US In 2024, we conducted our first double materiality assessment to meet evolving sustainability reporting standards and stakeholders’ expectations, in line with Bursa Malaysia and the IFRS requirements, which also incorporate the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations. This assessment offered a clear and structured view of our business’s impact on the environment and society, while also identifying material sustainability risks and opportunities that could influence our financial performance. By applying the principle of double materiality, we considered both financial materiality—how sustainability factors affect Kenanga’s financial outcomes—and impact materiality—how our operations influence the environment, society, and the economy. This dual-lens approach supports a more holistic integration of sustainability into our strategic decision-making. To achieve this, we applied a four (4)- step process to identify and prioritise the material issues most relevant to our business and stakeholders. OUR APPROACH TO SUSTAINABILITY OUR APPROACH TO SUSTAINABILITY KENANGA’S DOUBLE MATERIALITY MATRIX The outcome of this Double Materiality Assessment was deliberated by the Group Sustainability Management Committee and approved by the KIBB Board of Directors, underscoring its relevance to Kenanga’s business operations. All 13 identified material issues are considered vital to Kenanga’s operations, including two (2) newly introduced topics: Financial Inclusion and Risk Management. Financial Inclusion underscores our commitment to broadening access to our products and services, driving economic growth, promoting social equity, and fostering a more inclusive and resilient future. Risk Management reflects our focus on navigating an increasingly complex risk landscape to safeguard our clients' interests. We proactively identify, assess andmitigatemarket, credit and climate-related risks—strengthening organisational resilience and ensuring long-term stability in an evolving environment. The materiality ranking highlights digitalisation, good business conduct, risk management, and regulatory compliance as top priorities for Kenanga’s business operations. Digitalisation is crucial for driving operational efficiency, enhancing customer experience, and staying competitive in a tech-centric market. Good business conduct and regulatory compliance ensure adherence to industry standards, protecting our reputation and mitigating risks. Additionally, risk management is essential to address the complexity of financial, operational, and climate-related risks, helping us to navigate challenges effectively. Diversity and inclusion, along with employee health, safety, and wellbeing, client experience, and talent attraction, form the foundation for the Group’s sustained growth. A diverse workforce fosters innovation, while prioritising employee safety and client experience ensures a supportive work environment and strong customer loyalty—critical elements for long-term success. While responsible investing, climate impact, and community investment rank lower, they remain significant in ensuring our future resilience. Responsible investing aligns with stakeholders’ expectations and regulatory requirements, ensuring sustainable capital allocation. Climate impact reinforces environmental responsibility, aligning with heightened regulators’ focus on climate-related risks. Community investment continues to play a key role in driving social impact which strengthens business reputation and trust. This integrated approach to double materiality supports Kenanga’s long-term goals, driving business growth while aligning with ESG priorities. Financial Materiality Low High Medium Impact Materiality Medium Low High Cyber Security Risk Management Digitalisation Good Business Conduct Climate Impact Community Investment Diversity and Inclusion Employee Safety, Health and Wellbeing Talent Attraction, Development and Management Client Experience Regulatory Compliance Responsible Investing Legend: Economic Environment Social Governance Financial Inclusion The Four (4)-step Process Stakeholder Prioritisation Engaged Senior Management Team to identify and prioritise key stakeholder groups based on their influence on Kenanga’s sustainability strategy. We prioritised nine (9) stakeholder groups for the survey, including regulators, employees, government organisations, shareholders, clients, remisiers and agents, community partners, vendors and suppliers, and the public. Financial Materiality Assessment Evaluated the impact of external sustainability risks on Kenanga’s financial performance and held discussions among Senior Management Team members to assess financial risks and opportunities across different time horizons. A total of 17 Senior Management Team members participated in the financial materiality assessment. Impact Materiality Assessment Assessed the impact of Kenanga’s operations on the environment and society by gathering stakeholder feedback through an online survey to determine the most relevant sustainability topics. We gathered responses from 800 survey participants including feedback from the public, shareholders, vendors, remisiers and agents, and regulatory bodies. Planning and Benchmarking Reviewed and identified material topics based on a benchmark assessment to ensure their continued relevance to Kenanga and its stakeholders. We identified 13 material topics for the double materiality survey, guided by industry benchmark exercise to determine most relevant issues. >> >> >> >> Process Outcome