28 Kenanga Investment Bank Berhad Annual Report 2021 Our Sustainability Approach About This Report We Are Kenanga Message From Chairman and GMD Managing Our Sustainability Risks OUR APPROACH Our Group Board Risk Committee (“GBRC”), supported by the Group Risk Committee (“GRC”) and overseen by the Board of Directors, seeks to develop a robust risk management system that systematically manages and mitigates all risks including ESGrelated risks. In 2021, ESG risks, including climate-related risks, were identified as emerging risks for Kenanga. Guided by the Bank Negara Malaysia (“BNM”) Climate Change & Principle-based Taxonomy (“CCPT”) guidance paper and industry best practices, a Climate Change Risk Management Framework (“CCRMF”) was developed during the year to embed climate-related risks into our governance process, business operations and our Group risk management system. The CCRMF will be operationalised in 2022. OUR CLIMATE-RELATED DISCLOSURES We are conscious of our climate responsibility, and we are progressively expanding our climate-related disclosures, as guided by the Task Force on Climate-Related Financial Disclosures (“TCFD”) recommendations. Our key updates are as below: To learn more about our Risk Management Framework and Governance, please refer to page 119 of this Annual Report. Governance • Integrated climate risk governance into the existing risk management governance structure in 2021. To enhance our climate risk governance by rolling out climaterelated meetings at the governance level, thus ensuring that our Board stays abreast of the internal progress of climate-related initiatives. Strategy • Established targets and enhanced our Responsible Investing strategy. To identify specific climate-related risks and opportunities relevant to our business for each time horizon (short, medium and long-term), and further integrate them across our investment and financing activities. Risk Management • Developed a Group Climate Change Risk Management Framework to better manage climate risks across our investment activities. To operationalise Climate Change Risk Management Framework throughout our business operations. Metrics and Targets • Measure and monitor our direct environmental footprint. • In 2021, we expanded our scope of greenhouse gas (“GHG”) emissions tracking to account for our Scope 1 emissions, in addition to Scope 2 emissions. To expand our GHG emission monitoring to Scope 3 emissions; establish a baseline and set emission reduction targets. Moving Forward
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