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
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