KENANGA ANNUAL REPORT 2020

88 4 1 2 3 5 6 7 SUSTAINABILITY STATEMENT SUSTAINABI L I TY STATEMENT Managing and Responding to Risks Our Group Board Risk Committee ( “GBRC” ), supported by our Group Risk Committee ( “GRC” ), reviews and addresses risks to our operations. We recognise our responsibility to understand and manage EES risks related to our business and to translate these insights into meaningful mitigating actions across our operations. We have set in motion processes to strengthen the integration of EES matters into our risk management practices and will review existing risk management policies against the criteria and methodology for assessing economic, environmental and social risks. This process will follow our internal guidelines on risk analysis and review. Our incorporation of EES risk will focus on the following areas: • Enhancing our risk identification capacity through collaborative industry research, as well as, local and global EES concerns; • Empowering decision making through the development of guidelines and criteria for the assessment, mitigation and management of EES risks; and • Reinforcing and institutionalising the Group’s EES risk culture and appetite through training and development of our human capital. Identifying Climate Risks In accordance with the updated requirements of the Bursa Securities’ Sustainability Reporting Guide, we are moving to address the recommendations of the TCFD. As part of our initial climate related disclosure, we will undertake preliminary assessments to identify the climate-related risks connected to our operations. TCFD ELEMENTS DISCLOSURES GOVERNANCE • Our Group Managing Director oversees sustainability management and highlights key issues to the Board. • Our Sustainability Working Group manages and oversees sustainability reporting for the Group. Please refer to pg 41 of this Annual Report for an overview of our Governance structure, and pg 87 of this statement for an overview of our sustainability governance structure. RISK MANAGEMENT • The GBRC provides oversight on our risk strategies and policies, as well as the incorporation of EES considerations into our risk management practices. Please refer to pg 56 and 57 of this Annual Report for more details regarding GBRC. METRICS & TARGETS • We have begun reporting our Scope 2 Greenhouse Gas ( “GHG” ) emissions from purchased electricity consumption. We will continue to report these metrics to assess the impact of our operations on climate change. Please refer to pg 105 of this statement for more details regarding our GHG emissions. Managing Our Supply Chain Our vendor partnerships can give rise to potential organisational, financial, legal and reputational risk. We have established responsible procurement policies and processes to clearly set out our expectations. Our Group Procurement Policy establishes a framework for employees to achieve and maintain high standards of professionalism, transparency, and accountability within the procurement process. Our robust Know Your Vendor Assessment requires vendors to undergo due diligence verification and prompts for the review of risk indicators that culminates into a score that serves as a guide to manage front-end risk. The Group Code of Conduct for Vendors outlines a set of obligations on business practices and professional conduct expected of all vendors engaging or working with Kenanga Investment Bank Berhad ( “KIBB” ) and Its Group of Companies ( “Kenanga Group” or “the Group” ). Regular performance evaluations are conducted and through these checks and balances, we strive to uphold high standards of ethics and integrity in business practices with all contractors, consultants, suppliers, agents and any persons who undertake work for the Group.