ENRA Group Berhad | Annual Report 2022 23 SUSTAINABILITY REPORT Sustainability reporting is the disclosure and communication of Economic, Environmental and Social (“EES”) goals of a company and how the company addresses these goals. It is a reporting best practice driven by Global Reporting Initiative (“GRI”), an international independent standard organisation that helps businesses, governments and other organisations understand and communicate their impact on issues such as climate change, human rights and corruption. The standards set by GRI have now been accepted by companies worldwide. This is part of the worldwide shift from full disclosure reporting to integrated reporting (i.e., to go beyond the emphasis on financial reporting). In Malaysia, the two regulatory bodies that oversees Sustainability reporting are Bursa Securities and the Securities Commission (“SC”). Both regulators have placed an urgent requirement for listed companies like ENRA to disclose material matters that relates to their EES goals in their annual reports. Bursa Securities has made this reporting mandatory since 2016. The focus in sustainability report of listed companies will soon shift from EES to Environmental, Social and Governance (“ESG”) as required by SC through its MCCG 2021 which was released on 28 April 2021. This was issued with the purpose of strengthening the oversight of sustainability, of which the risks and opportunities requires collective actions by the Board and Senior Management. The five new practices stipulated by MCCG 2021 are: 1. The Board, together with Management takes responsibility for the governance of sustainability in the Group, including setting the Group’s sustainability strategy, priorities and targets. 2. Strategic management of material sustainability matters (“MSMs”) by Senior Management. 3. The Board ensures the Group’s sustainability strategies, priorities, targets and performance are communicated to its internal and external stakeholders. 4. Performance evaluations of the Board and the Senior Management include reviews of their performance in addressing the Group’s material sustainability risks and opportunities. 5. The Board identifies a designated person within Management to provide dedicated focus to manage sustainability strategically. These new practices were emphasised during a training held for the ENRA Board members on 18 May 2021 to ensure that they are fully aware of the requirements. As this requirement by SC would only take effect in the next financial year, this report for the year under review will still adhere to EES as the pillars of Sustainability. Sustainability reporting, alongside the long-existing financial reporting is now the reporting practice of all listed companies
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