Kenanga Sustainability Report 2024

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 35 34 The Annual Fraud Awareness Week is designed to raise awareness about fraud prevention and financial crime. During this week, organisations, including Kenanga Group, engage in activities to educate and inform internal and external stakeholders about the importance of recognising, preventing, and reporting fraud. The flagship programme is also aligned with global campaigns, such as the Association of Certified Fraud Examiners’ International Fraud Awareness Week, to create a broader impact across the financial ecosystem. Regulatory Brew, introduced in 2023, is a weekly newsletter informing all employees about the latest local and regional governance trends via selected news articles. The newsletter also includes the latest guidelines and regulations, enabling employees to stay updated with regulatory changes. In 2024, we issued a total of 50 Regulatory Brew newsletters. An Annual Regulatory Seminar (“ARS”) is held once a year to reinforce our standards of conduct on matters including conflicts of interest, governance, fraud, bribery and corruption, Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (“AML/ CFT/ TFS”), whistleblowing and updates on the latest regulatory requirements and enforcement actions by the regulators. ARS assessment was also performed to evaluate the awareness and understanding of our employees, reinforcing their comprehension and knowledge on good governance and business practices. Key ethics and regulatory compliance policies are accessible by all employees via the Policy & Procedure Governance System, an internal repository platform containing our policies and procedures. We carried out an enterprise-wide risk assessment to identify and categorise AML/ CFT/ TFS risks across various dimensions, ensuring that we employ a comprehensive approach to risk management. This assessment enables Kenanga to prioritise risks and allocate resources effectively when developing and implementing strategies to mitigate or manage the identified risk effectively, minimising the likelihood of financial losses and reputational damage arising from financial crime controversies. New hires must attend an onboarding training session to familiarise themselves with the relevant frameworks, procedures and policies, while existing employees undergo annual refresher training. The sessions are delivered in several formats, including reading materials and explainer videos on topics such as Anti-Bribery and Corruption, AML/ CFT/ TFS, Chinese Wall Policy, Compliance and Anti-Fraud practices. 1 2 3 4 5 6 OUR APPROACH Building an Ethical Culture Our Group Regulatory division has laid a strong foundation for good governance that comprises corporate policies, procedures and control measures, enabling the Group to mitigate risks and respond to any incidents of non-compliance or unethical behaviour. Our focus on integrating and communicating anti-corruption and anti-financial crime practices into everyday operations shows our commitment to the highest standards of corporate governance. This approach highlights our dedication to complying with regulations while also fostering a culture of ethical conduct at every level, ensuring Kenanga Group remains a trusted and responsible corporate entity. A crucial component of our strategy to build an ethical culture includes training programmes and awareness initiatives that are designed to ingrain our principles of ethics and integrity into our employees. This ensures that our principles are reinforced, understood and practised throughout every level of our workforce. For more information on how we further manage our all our risks, please refer to pages 26 to 31 of Integrated Annual Report 2024. Supporting Local Suppliers Supporting local industries enables us to generate positive socio-economic impact by contributing to local economic growth and creating job opportunities. We strive to purchase local goods and services where feasible to support local communities and businesses. Amount (RM) Spent on Local Suppliers and Percentage by Year Suppliers Engagement Session In 2024, we held a supplier engagement session as part of our inaugural Sustainability Day to raise awareness on sustainable business practices and strengthen partnerships across our supply chain. Attended by 51 suppliers, the session provided a platform to inform vendors about the latest updates to our enhanced Group Procurement Policy and the implementation of ESG assessments for suppliers, reinforcing our commitment to responsible sourcing and ethical business conduct. We conducted a focus group discussion to gain deeper insights bringing together key suppliers to explore the challenges and opportunities in integrating ESG principles into their operations. This collaborative dialogue allowed us to better understand the barriers suppliers face, identify areas for capacity building, and co-develop strategies to support them in meeting our sustainability expectations. Through these efforts, we aim to foster a resilient, transparent, and responsible supply chain that aligns with our long-term sustainability goals. Moving forward, we aim to enhance our vendor assessment process and strengthen vendor engagement by enrolling in Bursa Malaysia’s Centralised Sustainability Intelligence platform. This initiative will enable more comprehensive ESG due diligence, improve transparency, and ensure alignment with sustainability best practices across our supply chain. Additionally, we will explore opportunities to collaborate with vendors on capacity-building initiatives, fostering responsible business practices and long-term value creation. 3 Supply Chain Risk (cont’d) REGULATORY COMPLIANCE WHY IT MATTERS Fostering a culture of compliance that empowers our employees to uphold high standards of integrity and vigilance is a cornerstone of our good governance practices. 81.5 (82%) 2023 65.9 (76%) 2022 112.1 (83%) 2024 GOOD GOVERNANCE GOOD GOVERNANCE Ethical Governance: From Policy to Practice

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