28 29 Environmental Stewardship About This Report Who We Are Progressing Towards A Sustainable Future Managing Our Sustainability Risks Good Governance Sustainable Economic Growth KENANGA INVESTMENT BANK BERHAD Sustainability Report 2022 Awards and Recognitions Empowering People and Communities GRI Content Index ESG Performance Data MANAGING OUR SUSTAINABILITY RISKS MANAGING OUR SUSTAINABILITY RISKS Our Task Force on Climate-Related Financial Disclosures (“TCFD”) We have been gradually enhancing our disclosures in line with the recommendations of the TCFD, as well as regulatory requirements. Our disclosures are mapped against the prescribed four (4) pillars – Governance, Strategy, Risk Management, as well as Metrics and Targets. The highlights as below: Our participation in industry committees, that are driving sustainability in various industries solidifies our sustainability leadership, and enables us to participate in climate-related policy decision-making and shape conversations around climate change. In 2022, our Board dedicated over 50 hours across 18 ESG training courses, briefings and workshops. Some of the training topics covered included climate risk management and scenario analysis; setting science-based targets, TCFD climate disclosure, sustainability’s implications for organisations and Directors’ duties as well as other ESG related topics. Following were climate related topics discussed at board and management levels in 2022: GOVERNANCE Board of Directors (“Board”) Group Board Risk Committee (“GBRC”) Group Risk Committee (“GRC”) Group Sustainability Management Committee (“GSMC”) Group Risk Management (“GRM”) Business Units (“BUs”) The Board oversees our climate risk management initiatives and is responsible for ensuring that climate risks are well incorporated across our governance, strategy, and business operations. The Board is assisted by the GBRC and GRC, which monitor and assess Kenanga’s climate change concerns. The GSMC works with the Group’s risk management committees and the Board to ensure that sustainability plans, including climate strategies, are consistent with the Group’s overall commitment. Through advice and support, GRM plays a critical role in controlling and reducing identified physical and transitional risks, as well as assisting the adoption of climate risk management policies across business divisions. GRM is also responsible for incorporating climate change risk scenario analysis into stress analysis and stress testing exercises, as well as delivering quarterly reports to the GBRC, GRC, and Board on implementation updates and results achieved. Through the creation and execution of suitable measures to manage and reduce risks in our finance and investment activities, our BUs are in charge of managing climate risks on a day-to-day basis. Climate Change Risk Governance “As the impacts of climate change continue to manifest around the world, it is becoming increasingly clear that financial and climate risks are fundamentally intertwined. Failing to account for climate risks in financial decision-making not only undermines the stability of our financial system but also puts our planet and future generations at risk. By integrating climate risk considerations into our financial decision-making, we can drive sustainable and resilient growth while mitigating risk and ensuring a more sustainable future for all.” Bursa Malaysia’s Sustainability Development Committee (“SDC”) The Group Managing Director of Kenanga Investment Bank Berhad, who is also the Chairman of the Group Sustainability Management Committee, is a member of SDC, a Board Committee of Bursa Malaysia. The Committee oversees the development and implementation of sustainability strategies, as well as to ensure key initiatives are in line with the Malaysian Code on Corporate Governance. Joint Committee on Climate Change (“JC3”) The Chief Executive Officer (“CEO”) of Kenanga Investors, a subsidiary of Kenanga Group, is a member of Joint Committee on Climate Change (“JC3”), which is a collaborative effort initiated by BNM and the Securities Commission (“SC”) to unite industry representatives in building climate resilience of the financial sector in Malaysia. In addition to the above memberships, Kenanga Investors’ CEO holds several active memberships in notable industry-relevant councils and committees, such as Institutional Investors Council Malaysia, FTSE Bursa Malaysia Index Advisory Committee, Sustainable Investment Platform Steering Committee and chairs the Malaysian Association of Asset Managers. DATUK ROSLAN HJ TIK Executive Director, Head of Group Investment and Islamic Banking, Kenanga Investment Bank Berhad Climate-related targets on net-zero and carbon neutrality Key regulatory updates on climate-related risk managements CCRM Framework implementation including updates on climate scenario analysis plans Business unit engagement on Climate Change RAC implementation in assessing investment/ financing portfolio’s climate risk exposure To further strengthen our climate risk governance structure and management, we will continue to conduct ESG capacity-building sessions including climate risk-related topics, across our business operations. These sessions aim to enhance knowledge and awareness on climate-related risks while we progressively embed climate risk management in our risk governance structure through enhanced internal risk management controls, with the Board overseeing the progress of our climate risk management. Moving Forward
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