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 47 46 Our Internal Stock Scoring Methodology and Approach In 2022, Kenanga’s Equity Broking Research Department formulated an internal scoring system to evaluate public listed companies based on the Bursa Malaysia Sustainability Reporting Guide, the Sustainability Accounting Standards Board (“SASB”) and GRI’s primary ESG topics. Since the inception of the scoring system, we have consistently engaged with businesses for updates on their ESG strategy, goals and accomplishments to enhance our understanding of their sustainability aspirations and commitments. Key ESG themes considered in our internal scoring methodology include: Earnings Sustainability and Quality Workers’ Safety and Wellbeing Corporate Governance Emissions Management Community Investment Anti-Corruption Policy 1 2 3 4 5 6 Our ESG scoring further considers the following: • Favourable scores are accorded to companies that possess a high degree of disclosure, with reference to quantifiable information • Short-term targets are preferred compared to only having long-term targets, as immediate solutions are favoured • Year-on-year comparisons of improving ESG data would be given the highest score on a percentage basis ESG Engagement with Our Corporate and Institutional Clients Our ESG integration strategy involves facilitating active engagements across industries between investors and investee companies. In 2024, we carried out a total of nine (9) ESG-related webinars and experiential visits for corporate and institutional clients. These initiatives were intended to offer first-hand knowledge and understanding of sector-specific and company-specific ESG information. These engagements garnered over 200 participants. Some of the webinars and site visits conducted are as follows: Kenanga ESG webinar on The Role of Renewable Energy Certificates (“RECs”) in Accelerating Decarbonisation IHH Healthcare Berhad: Webinar on Healthcare Leadership Dialogue – ESG and Sustainability Kenanga ESG webinar on Oil & Gas Sector: Embracing Sustainability Kenanga ESG webinar on Sustainable City Financing with Big Data & Artificial Intelligence Kenanga ESG seminar on Spotlight on Biomass – The Frontier After Solar Kenanga ESG seminar on Hydrogen Technology and Development in Malaysia AEON Co. (M) Bhd: ESG Site Tour at AEON Mall Wangsa Maju Swift Haulage Berhad: Visit to the Warehouse for Updates on Its Adoption of Electric Vehicle (“EV”) Prime Movers in Westports, Klang In 2025, Kenanga Research will continue to engage with corporations, industry representatives and government agencies, looking into the progress of actual climate change initiatives and enhanced ESG disclosures. We will be watching the sustainability space closely as more policies, regulations, and possibly legislation are introduced. Strengthening ESG Thought Leadership through ESG Thematic Publications During the year, we published five (5) ESG-themed reports focusing on key sectors such as oil and gas, healthcare, and telecommunications, delving into specific ESG aspects and company activities. In addition to these thematic reports, we continued publishing ESG-focused bulletins to provide investors with timely news updates and commentary on selected topics. ESG Thematic Reports in 2024 The Industry Doing Its Part in Sustainability AEON: A Greener Future in Retail IHH: Shaping Healthcare Future Sustainably UrbanMetry: Understanding Floods with Big Data Telecommunication: New Cybersecurity Act Champions ESG Goals For more information on our ESG Thematic ESG reports, please visit: https://www.kenanga.com.my/market-insights/#filter=.esg-thematic-reports. FUTURE OUTLOOK We plan to broaden our suite of sustainable investment products, with a particular focus on thematic investing. As part of this effort, we will continue to deepen our understanding of ESG risks and opportunities across our portfolio by actively engaging with investee companies to gain insights into their ESG goals and strategies. To ensure the continued relevance and robustness of our scoring methodology, we aim to conduct regular reviews and enhancements of our assessment criteria— reflecting evolving industry standards, stakeholder expectations, and emerging ESG trends. SUSTAINABLE ECONOMIC GROWTH SUSTAINABLE ECONOMIC GROWTH
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