33 KENANGA INVESTMENT BANK BERHAD Sustainability Report 2022 Awards and Recognitions Empowering People and Communities GRI Content Index ESG Performance Data 32 Environmental Stewardship About This Report Who We Are Progressing Towards A Sustainable Future Managing Our Sustainability Risks Good Governance Sustainable Economic Growth Managing Our Supply Chain Risk Our Group Procurement Policy provides employees with a guiding framework to achieve and maintain high standards of professionalism, transparency, and accountability in our procurement decisions. Outlined in our Group Procurement Policy, our ‘Know Your Vendor Assessment’ requires vendors to undergo an extensive due diligence process that reviews risk indicators, culminating in a score that serves as a guide for Kenanga to manage its front-end risk. As part of our corruption risk assessment exercise, all our intermediary including vendors, suppliers and service providers undergo an Anti-Money Laundering (“AML”) screening for any recorded cases on bribery and corruption. Further to that, we will request for the vendors’ own anti-fraud, bribery and corruption policies and declaration on any prior improper practices. SUPPORTING OUR LOCAL SUPPLIERS We are committed to purchasing locally while supporting local communities and social enterprises where feasible. Local suppliers 89% Total procurement spent on local businesses RM65.9 million As part of our efforts to optimise efficiency and transparency, we have fully digitalised our procurement process. A declaration on AML is required from our vendor as part of onboarding process. In 2022, 83 vendors were onboarded via our e-procurement system. Any changes to any aspect within the Code of Conduct for Vendors or Group Procurement Policy will be communicated to our vendors accordingly. We will be enhancing our vendor assessment framework to integrate environmental and social risk assessments in line with our targets to integrate ESG screening in our supplier onboarding process as well as to increase supplier engagement, and communication and awareness on promoting sustainable procurement. Moving Forward MANAGING OUR SUSTAINABILITY RISKS UN SDGs 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. GOOD GOVERNANCE MATERIAL TOPICS: Good Business Conduct GOOD GOVERNANCE Our ‘Know Your Vendor Assessment’ allows us to ensure we maintain high standards of ethics and integrity in our business partnerships with contractors, and intermediaries such as consultants, suppliers, agents and individuals who undertake work for the Group. The Group Code of Conduct for Vendors outlines the obligations as well as standards our vendors are required to adhere to. For example, the policy requires each vendor to have secured whistleblowing channels in place for individuals to lodge reports on malpractice, potential breaches of the Code to encourage an anti-corruption culture and other forms of ethical behaviour. To prevent corporate crimes, our vendors are required to comply to the Code of Conduct for Vendors, which outlines the adherence to all requirements of any applicable anti-corruption laws including the MACC Act 2009. Vendors are also expected to formally adopt and implement relevant policies, procedures and programmes to prevent money-laundering and terrorism financing through its business and operations, and to ensure compliance with such Anti-Money Laundering/Counter-Terrorism Financing/Targeted Financial Sanctions (“AML/CFT/TFS”) policies. Vendors are required to adopt and implement adequate procedures internally to prevent bribery and corruption. For more information on our Group Code of Conduct for Vendors, please click the link below: (https://www.kenanga.com.my/wp-content/uploads/2020/05/Kenanga-Code-of-Conduct-for-Vendors-Website-Statement.pdf). MATERIAL TOPICS: Goal 1 All material matters to be supported by adequate policies and procedures in line with best practices and regulatory requirements. Goal 2 Lead industry fraud awareness through an interactive flagship programme. Regulatory Compliance
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