23 CORPORATE GOVERNANCE ENRA GROUP BERHAD ANNUAL REPORT 2023 SUSTAINABILITY REPORT Annual reports nowadays are prepared by companies not solely for the benefit of their shareholders. Instead, the annual report is aimed to communicate with parties who are affected directly or indirectly by a company’s activities; often referred to as stakeholders. The areas of interest and concern by stakeholders are varied and these diverse concerns are categorised into various pillars of sustainability. Sustainability is key to a better future. It is an emphasis to inculcate conscious effort to improve the quality of our lives, protect our ecosystem and preserve natural resources for future generations. The globalisation of business activities and borderless markets has increased the need to ensure that the natural resources that we continuously tap into for our daily lives, business activities and survival are properly managed to ensure they continue to benefit future generations. This realisation has given rise to the birth of the Global Reporting Initiative (“GRI”) in 1997. The GRI Standards developed since have given rise to the need for corporate entities to improve the transparency and accountability of their business activities and the reporting thereof. Driven by GRI, the Sustainability Report is now accepted as a reporting best practice 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). Through Sustainability Reports, corporate entities disclose and communicate to their stakeholders how they address the pillars of sustainability through defining their sustainability goals and identifying the risks involved. Sustainability has three pillars, initially defined as Economic, Environmental and Social (“EES”). The three pillars have since been redefined as Environment, Social and Governance as shown in Illustration 1, below. A Sustainability Report is thus a disclosure by the corporate entities on how they address the three pillars of sustainability through identifying and setting their sustainability goals under each pillar as well as identifying the risks associated. Bursa Securities has also recommended that companies look into the effect and impact of climate change as a result of their activities. SUSTAINABILITY E S G EQUATION = ENVIRONMENT + SOSIAL + GOVERNANCE ILLUSTRATION 1 – SUSTAINABILITY PILLAR
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