Kenanga Investment Bank Berhad is a leading, independent, Malaysian-based investment bank established in 1973. We have provided award-winning products and services to clients and businesses for almost five (5) decades, through our wealth of experience in equity broking, investment banking, treasury, Islamic banking, listed derivatives, investment management, wealth management, structured lending and trade financing.
CHAIRMAN’S MESSAGE


DEAR SHAREHOLDERS,
I am pleased to present to you the Sustainability Report 2022, reflecting our continued commitment to environmental, social, and governance (“ESG”) initiatives and the progress we have made towards creating a sustainable future.
TAN SRI DATO’ SERI SYED ZAINOL ANWAR IBNI SYED PUTRA JAMALULLAIL
Chairman
PROGRESSING TOWARDS A
SUSTAINABLE
FUTURE
As a financial institution, we recognise the impact we can create in contributing towards building a sustainable future. Our commitment lies in embracing sustainability in what we do and in doing so, we create shared value for our stakeholders. Sustainability, as a driver of risks and opportunities, is continuously being incorporated into our business practices and decision-making processes.
For effective management of risks,
the Group is governed by the Enterprise Risk Management (“ERM”) Framework and the philosophy adopted is based on the ‘Three Lines of Defense’ approach. The ERM Framework defines the roles and responsibilities throughout the organisation to ensure accountability and ownership, as well as sets out the principles of sound corporate governance to assess and manage risks to ensure risk-taking activities are aligned with the Group’s long-term viability and its capacity to absorb losses. The Group Board Risk Committee is responsible to ensure the Group’s activities are consistent with its approved risk appetite, strategies and policies.
OUR
CONTRIBUTION
TO
UN SDGS AND Ungc'sTENPRINCIPLES
Contribution to the UN SDGs
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Goal 1: No Poverty
SDGs Targets We Contribute Towards
1.4 Equal rights to economic resources as well as access to basic and financial services
UNGC Principles
Principle 1: Business should support and respect the protection of internationally proclaimed human rights
Our Progress in FY2022
• Contributed over RM180,000 to community investments and impacting over 4,000 lives
• Continuous support of social enterprise partners, Dialogues Includes All and Silent Teddies for 11 consecutive years
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Goal 4: Quality Education
SDGs Targets We Contribute Towards
4.4 Increase the number of people with relevant skills for employment, decent jobs and entrepreneurship
UNGC Principles
Principle 1: Business should support and respect the protection of internationally proclaimed human rights
Our Progress in FY2022
• Conducted over 90 sessions including webinars, exhibitions, seminars, and live series with over 20,000 participants
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Goal 5: Gender Equality
SDGs Targets We Contribute Towards
5.5 Women’s full and effective participation and equal opportunities for leadership
UNGC Principles
Principle 6: The elimination of discrimination in respect of employment and occupation
Our Progress in FY2022
• 51% of our total workforce are women
• 36% of our key and senior management are women
• Overall average gender pay ratio of men to women is 1:0.92 -
Goal 7: Affordable and Clean Energy
SDGs Targets We Contribute Towards
7.2 Increase global percentage of renewable energy
7.3 Double the global rate of improvement in energy efficiencyUNGC Principles
Principle 9: Encourage the development and diffusion of environmentally friendly technologies
Our Progress in FY2022
• Working with reNIKOLA, Malaysia’s leading solar producer, through the Corporate Green Power Program to secure renewable energy
• Replaced all conventional lighting at Kenanga Tower with LED lights -
Goal 8: Decent Work and Economic Growth
SDGs Targets We Contribute Towards
8.3 Encourage the growth of micro-, small- and medium- sized enterprises
8.5 Full and productive employment and decent work for all
8.10 Expand access to banking, insurance and financial services for allUNGC Principles
Principle 2: Make sure that they are not complicit in human rights abuses
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
Principle 4: The elimination of all forms of forced and compulsory labour
Principle 5: The effective abolition of child labour Principle 6: The elimination of discrimination in respect of employment and occupation
Our Progress in FY2022
• Raised over 2,700 meals pledge for Meals That Gives Campaign, as part of the HumanKIND Project. Amount pledged by donors were matched by Kenanga. Over RM50,000 were contributed to the cause
• Collaborated with Naluri and conducted mental health talks for employees
• Reported zero workplace injuries
• Updated our employees maternity and paternity leave in line with the Employment Act 2022
• Launched three (3) products under Kenanga Sustainability Series
• Rolled out Kenanga Digital Investing platform to provide easy access to saving and investing -
Goal 10: Reduced Inequalities
SDGs Targets We Contribute Towards
10.2 Social, economic and political inclusion of all
UNGC Principles
Principle 6: The elimination of discrimination in respect of employment and occupation
Our Progress in FY2022
• Spread awareness on gender equality at work through collaborations with organisations such as Tulip Movements on women’s leadership
• Supported Bursa Securities’ #EqualityforEquity campaign to encourage and attract more women investors
• Build awareness on sexual harassment policy to all employees and trained managers aon managing sexual harrassment topic
• Introduced a volunteering mechanism and recorded over 2,300 volunteering hours, with a total of 295 volunteers participated -
Goal 11: Sustainable Cities and Communities
SDGs Targets We Contribute Towards
11.6 Reduce the environmental impact of cities
UNGC Principles
Principle 8: Undertake initiatives to promote greater environmental responsibility
Our Progress in FY2022
• Included waste monitoring metric into dashboard to record our generated, collected and managed waste by type
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Goal 12: Responsible Consumption and Production
SDGs Targets We Contribute Towards
12.5 Significantly reduce waste generation
12.6 Encourage companies to adopt sustainable practices and sustainable reportingUNGC Principles
Principle 8: Undertake initiatives to promote greater environmental responsibility
Our Progress in FY2022
• Digitalised 61 workflows under the iLeap project in efforts to reduce paper usage and improve workflow efficiency
• Encouraged employees to start recycling habit by introducing Trashcycle Malaysia
• Partnered with Zero Waste Malaysia to roll out a workshop for employees on ways to start living a zero-waste lifestyle
• Recycled 19,974 kg inclusive of waste and e-waste -
Goal 13: Climate Action
SDGs Targets We Contribute Towards
13.2 Integrate climate change measures into policies and planning
13.3 Improve human and institutional capacity on climate changeUNGC Principles
Principle 7: Businesses should support a precautionary approach to environmental challenges
Our Progress in FY2022
• Retrofitted Heating, Ventilation and Air-Conditioning (“HVAC”) system at Kenanga Tower with a new A.I. smart chiller system to conserve energy
• Integrated climate risk assessment in our lending and investment portfolios
• 2,388 enrolments by employees on ESG-related training topics, including climate change -
Goal 16: Peace, Justice and Strong Institutions
SDGs Targets We Contribute Towards
16.4 Combat organised crime, illicit financial and arms flow
16.5 Reducing all forms of corruption and bribery
16.7 Responsive, inclusive, participatory and representative decision-making at all levelsUNGC Principles
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery
Our Progress in FY2022
• Held the annual flagship program, 6th Fraud Awareness Week (“FAW”) campaign, which saw the participation of over 2,000 from external and internal network
• Hosted the 7th Annual Regulatory Seminar Assessment with over 1,000 enrolments and 10,000 total training hours logged
• Updated relevant policies to minimise risk of financial crimes (such as Group Donation Policy) -
Goal 17: Partnerships for the Goals
SDGs Targets We Contribute Towards
17.16 Enhance partnership to mobilise technology and financial resources
17.17 Encourage and promote effective public, public-private and civil society partnershipUNGC Principles
Principle 1: Business should support and respect the protection of internationally proclaimed human rights
Principle 2: Make sure that they are not complicit in human rights abuses
Principle 6: The elimination of discrimination in respect of employment and occupation
Principle 7: Businesses should support a precautionary approach to environmental challenges
Principle 8: Undertake initiatives to promote greater environmental responsibility
Principle 9: Encourage the development and diffusion of environmentally friendly technologies
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery
Our Progress in FY2022
• Initiated partnerships with entities such as:
- Ant Group on developing first Wealth SuperApp
- Silent Teddies and Dialogue Includes All on community outreach programmes
- UNGC on advancing SDGs
- Association of Certified Fraud Examiners to organise 6th FAW
- Trashcycle Malaysia on door-to-door service to collect recycle wastes from employees
- Zero Waste Malaysia to host an interactive session on how to lead a zero-waste lifestyle
OUR
ESGFRAMEWORK
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Good Governance
Lead a responsible business underpinned by a robust compliance culture and high levels of ethical standards.
Good Business Conduct
Promote and embed good business conduct and high standards of integrity throughout the organisation, operate ethically and transparently and in compliance with applicable laws and regulations.
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Sustainable Economic Growth
Integrate ESG factors into our business decisions and value chain and manage ESG risks and opportunities as we innovate to build a sustainable future.
Responsible Investment
Incorporate ESG factors into our investment processes, offer and promote sustainable products and solutions and take an active stewardship role in the companies in which we invest.
Digitalisation
Leverage technological advancements to develop secure, meaningful and innovative products and solutions that will help shape the future of investing.
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Environmental Stewardship
Promote climate positive culture within the organisation and relevant external stakeholders to attain a low carbon economy.
Climate Impact
Take ownership of climate risks and opportunities of our operations through monitoring environmental performance, identifying and practising behaviours to promote climate positive action and outcomes.
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Empowering People and Communities
Create a positive impact on our employees, clients, business associates, as well as communities in need.
Diversity, Inclusion and Wellbeing
Inculcate an equitable workplace culture that recognises the unique needs and contributions of employees and where employee rights, health, safety and wellness are promoted.
Community Investment
Enhance financial literacy for investors and the community through education. Reaching out to communities in need through targeted social investments and employee volunteerism.
Our
sustainabilityPillars
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Good Governance
We remain cognisant of our responsibilities to our stakeholders, as we strive to raise the bar on good governance by incorporating ethical business practises throughout the organisation.
All material matters to be supported by adequate policies and procedures in line with best practices and regulatory requirements.
Lead industry fraud awareness through an interactive flagship programme.
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Sustainable Economic Growth
Our approach in integrating ESG considerations into our core operations, investing, and decision-making processes is a crucial component of our strategy to deliver innovative sustainable finance and investing products for our clients.
Increase support of sustainable economic activities.
Champion cloud-first strategy to increase scalability and flexibility.
Increase automation for productivity.
Increase digital distribution of products and sevices.
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ENVIRONMENTAL STEWARDSHIP
We are fully committed to promoting a climate-positive culture and reducing our carbon footprint. We recognise the urgency of the climate crisis and believe that we have a responsibility to take action. We are integrating climate-related risk considerations into all aspects of our business operations and continuously seeking ways to minimise our environmental impact.
Accelerate enterprise decarbonisation.
Build awareness, knowledge and skills needed to enable employees and stakeholders, to contribute positively to climate actions.
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EMPOWERING PEOPLE AND COMMUNITIES
we believe that our people are at their best when they feel a sense of belonging and are adequately supported by the organisation. We are committed to empowering our people to build their knowledge and expertise in an inclusive and healthy environment while extending our support in contributing to the growth and resilience of our communities.
Maintain and promote workforce diversity, and maintain anti-discrimination culture.
Integrate mental health as a topic of overall wellbeing of employees.
Increase social impact towards marginalised and deserving communities through consistent programmes and initiatives.
Expand investing literacy reach through online and offline channels.