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 31 30 Sustainability Governance at Kenanga Board & Management Committees Governing Body Roles & Responsibilities Group Governance, Nomination and Compensation Committee (“GNC”) An independent Board Committee that supports the Board in providing oversight of the progress of sustainability, particularly in ensuring the governance of sustainability within Kenanga, as well as the necessary alignment and compliance with applicable statutory and regulatory requirements. Audit Committee (“AC”) A committee that supports the Board in providing oversight of the sustainability management process, and the Group’s system of internal controls and compliance with applicable statutory and regulatory requirements. Group Sustainability Management Committee (“GSMC”) The highest senior management committee supporting the Board in sustainability governance. It is responsible for establishing the Group’s sustainability direction, strategies, and targets, while ensuring that sustainability risks and opportunities are addressed in an integrated and strategic manner. The committee also oversees the effective implementation of the Group’s sustainability strategies and the integration of sustainability considerations into day-to-day operations to support long-term business objectives. Delivery Division Roles & Responsibilities Group Marketing, Communications and Sustainability Provides management-level leadership in sustainability planning and implementation, as well as monitoring and evaluating sustainability initiatives and their performances while actively engaging with external stakeholders, internal business divisions and subsidiaries, to identify sustainability risks and opportunities. Business Divisions and Operations Champions the implementation of sustainability initiatives, provides grassroots-level input for holistic sustainability management and acts as key sustainability data owners in driving the sustainability integration in respective divisions. Sustainability-linked Remuneration There is growing emphasis on incorporating sustainability or ESG metrics into executive remuneration as a mechanism to uphold organisational accountability. At Kenanga, the Group’s Balanced Scorecard for 2024 continues to include ESG KPIs with assigned weightage, in line with the Group’s Sustainability Roadmap 2023-2025. These ESG KPIs have been integrated into the Balanced Scorecards of the Group Managing Director and relevant Senior Management members and are implemented across the Group. Annual performance incentives are linked to their respective scorecards. In 2024, Kenanga Investors Group, our asset and wealth management arm, have further strengthened its ESG-related responsibilities across all Senior Management roles and key functions, ensuring a more structured and accountable approach to sustainability integration. This enhancement reinforces its commitment to embedding ESG considerations into strategic decision-making, risk management, and operational processes. We will progressively review and refine our approach to linking ESG KPIs to executive remuneration as needed, while strengthening monitoring mechanisms and integrating ESG considerations into relevant roles to enhance sustainability governance. Chaired by Datuk Chay Wai Leong, Group Managing Director Members Role ESG Roles and Responsibilities Group Managing Director & Chairman of the Group Sustainability Management Committee Oversee the integration of ESG into Kenanga’s long-term strategy, ensuring commitment from all levels of the organisation. Group Chief Sustainability Officer and Head of Marketing and Communications Lead the execution of Kenanga’s sustainability strategy, integrating ESG practices, tracking performance, ensuring compliance, and engaging with stakeholders. Group Chief Regulatory and Compliance Officer Uphold the highest standards of governance, ethics, and regulatory compliance within the organisation. Group Chief Risk Officer Manage risk frameworks, integrating ESG and climate-related risks into relevant policies and procedures. Group Chief Financial and Operations Officer Incorporate ESG considerations into budgeting, financial strategies, and operations to support sustainability initiatives. Chief Executive Director/ Executive Director Kenanga Investors Berhad Lead ESG-focused investment strategies and promote responsible investment practices. Group Chief Human Resources Officer Lead employee wellbeing, human rights initiatives, and align HR policies with ESG goals. Chief Credit Officer Integrate ESG and climate risk considerations into credit risk management and lending practices. Group Sustainability Management Committee Cheong Boon Kak Group Chief Financial and Operations Officer 6 Nik Hasniza binti Nik Ibrahim Group Chief Human Resources Officer 7 Maheswari Kanniah Group Chief Regulatory and Compliance Officer 8 Tai Yan Fee Group Chief Risk Officer 2 Chuah Sze Phing Group Chief Sustainability Officer and Head of Marketing and Communications (Permanent Invitee) 3 Woo King Huat Chief Credit Officer 4 Datuk Wira Ismitz Matthew De Alwis Chief Executive Director/ Executive Director Kenanga Investors Berhad 5 1 GOOD GOVERNANCE GOOD GOVERNANCE 2 3 4 5 1 6 7 8
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