KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION OUR VALUE CREATION APPROACH 51 50 MATERIAL MATTERS Climate Impact GOALS Goal 1 Accelerate enterprise decarbonisation Goal 2 Build awareness, knowledge and skills needed to enable employees and stakeholders, to contribute positively to climate actions UN SDGs We strive to foster a culture that prioritises positive climate action while actively working to reduce our greenhouse gas (“GHG”) emissions. Acknowledging the urgency of the climate crisis, we are aware of our responsibility to contribute to the transition to a low-carbon economy. Climate-related risk considerations are embedded across all facets of our business operations as we persistently explore strategies to minimise our environmental impact. ENVIRONMENTAL STEWARDSHIP ENVIRONMENTAL STEWARDSHIP WHY IT MATTERS Upholding environmental stewardship is essential for preserving resources and reducing environmental impacts. Implementing energy efficiency practices not only cuts operational costs but also lowers GHG emissions, supporting global efforts to combat climate change. Addressing the climate change impacts by managing carbon emissions and energy use through Kenanga’s operations, investments and services to mitigate environmental degradation. Key Risks: Non-compliance with environmental regulations, reliance on carbonintensive industries, and climate-related disruptions can incur regulatory fines, asset devaluation, and operational costs. Key Opportunities: Regulatory compliance fosters trust, attracts investors, and ensures adherence to industry standards, while climate risk assessments help protect long-term value and strengthen portfolios. Moreover, investing in energy-efficient technologies lowers costs and promotes greater operational sustainability. Key Activities: • Updated Climate Change and Principle-based Taxonomy (CCPT) classification categories into our assessment of our private equity investments, corporate loans and bonds. Our exposure in C1, C3 and C5(b) totalled RM119.2 million, RM151.2 million, RM403 million, respectively. • Completed a baselining exercise of our Scope 3 Category 15 Investments (financed and facilitated emissions) across both on-balance sheet and off-balance sheet activities as key metrics for our decarbonisation journey. • Conducted a Climate Scenario Analysis and stress testing exercise to assess Kenanga’s climate risk exposure at the portfolio level and offer guidance for strategic decision-making. • Developed a Decarbonisation Roadmap to guide our overall strategy in managing and reducing GHG emissions, complemented by the upcoming Group Responsible Investing Framework to further guide decision-making for investment activities. • Enhanced the Group Outsourcing Risk Management Framework and Procurement Framework to include climate risk considerations when evaluating third-party service providers to ensure that the environmental and climate risk profiles of outsourced partners or suppliers are considered and any potential indirect risks to the organisation are mitigated. • Subscribed to the Green Electricity Tariff from Tenaga Nasional Berhad as part of our initiative to source electricity from renewable sources. • Total Operational GHG Emission – Scope 1 & Scope 2 for Kenanga Tower and Branch Offices: 2,268.2 tCO2e • Total Scope 3 – Employee Commuting: 3,841.0 tCO2e • Total Scope 3 – Business Travel: 532.7 tCO2e • Total Scope 3 – Financed Emission: 111,278.3 tCO2e • Total Scope 3 – Facilitated Emission: 38,509.9 tCO2e • Total Portfolio Emission – 2,145,968.3 tCO2e • Total Energy Consumption – 19,213.2 GJ • Total Water Consumed for Kenanga Tower and Branch Offices – 40,577.3 m3 • Total Waste Managed Responsibly – 25,769 kg CLIMATE IMPACT Refer to pages 57 to 78 of our Sustainability Report 2024 for more information on our approach and progress on Environmental Stewardship.
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