24 CORPORATE GOVERNANCE ENRA GROUP BERHAD ANNUAL REPORT 2023 Environmental sustainability focuses on how a company performs as a steward of nature. It considers how a company uses natural resources and how their operations impact the environment. It includes not only a company's direct operations but also all activities across its supply chains. Bursa Securities and the SC have put special emphasis on how climate change impacts are to be addressed in sustainability goals. Social sustainability is about identifying and managing business impacts, both positive and negative, on people. This includes a company's treatment of employees, supply chain practices, community engagement and overall impact on society. It involves identifying and managing business impacts, both positive and negative, on people. The quality of a company's relationships and engagement with its stakeholders is critical. Governance sustainability is defined as the set of written and unwritten rules that link ecological citizenship with institutions and norms of governance. It encompasses the system by which a corporate entity is controlled and operates, and the mechanisms by which it, and its people, are held to account. Ethics, risk management, compliance and administration are all elements of governance. In Malaysia, the two regulatory bodies that oversee Sustainability reporting are Bursa Securities and the SC. Both regulators have placed an urgent requirement for listed companies like ENRA to disclose material matters that relate to their sustainability goals in their annual reports. Bursa Securities had made this reporting mandatory since 2016. With the release of the MCCG 2021 on 28 April 2021 by the SC, all subsequent Sustainability Reports must adopt these new definitions. This becomes applicable to ENRA for the Sustainability Report for the year under review. The MCCG 2021 was issued to strengthen the oversight of sustainability, of which the risks and opportunities require 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 ENRA Group Berhad and its group of companies, including setting the Group’s sustainability strategy, priorities and targets. 2. Strategic management of material sustainability matters (“MSMs”) by Senior Management. 3. The Board to ensure that 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 should 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. After the issuance of the above, training was conducted on 18 May 2021 for the members of the Board and the Senior Management team to ensure that they will be fully aware of their roles and responsibilities towards Sustainability. Sustainability Report (Cont’d)
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