KENANGA INVESTMENT BANK BERHAD 124 INTEGRATED ANNUAL REPORT 2025 CORPORATE GOVERNANCE OVERVIEW STATEMENT Kenanga Group Climate Risk Management On 9 December 2021, the Board had approved Kenanga Group’s Climate Change Risk Management Framework (“CCRM Framework”) to incorporate climate risk management expectations from the regulators, and the broader market. The Framework outlines key principles, governance structures, best practices, Climate Change Principles Based Taxonomy (“CCPT”) classifications, and the Group’s risk appetite. This guides Kenanga Group’s approach to managing climate change-related risks and it serves as a comprehensive reference for integrating climate considerations into the Group’s governance processes, business strategy and operations, risk management system, as well as reporting and disclosure practices. The climate change risk to be managed by the Group shall be governed by the existing risk governance structure that involves the Board, Board Committees, Management Committees, Business Units and Group Risk Management. The CCRM Framework serves as a guide to facilitate climate risk assessments of economic activities, and its impact on climate and the environment. The CCRM Framework also covers the strategy, principles, as well as initiatives in areas of climate risk management for Kenanga Group operations. The CCRM Framework was updated in 2023, to align it with BNM’s Policy Document on Climate Risk Management and Scenario Analysis issued in November 2022, and again in 2024 to incorporate updates on BNM’s FAQs and Due Diligence Questions on CCPT classification. As the climate policy landscape continues to shift, the framework will be updated accordingly to remain aligned with applicable regulations and strategic drivers. As part of its ongoing efforts to strengthen climate risk management and meet regulatory expectations, Kenanga Group completed a preliminary climate scenario analysis and stress testing exercise in 2024. This was followed in 2025 by a more detailed climate scenario analysis and climate risk identification exercise for selected Business Units. These initiatives aimed to identify and assess the potential, including financial, impacts of climate‑related risks at both portfolio and sectoral levels, thereby supporting the development of appropriate and resilient business strategies aligned with the requirements of IFRS S1 and S2. Concurrently, since 2024, the Group has been assessing its Scope 3, Category 15 emissions, comprising financed and facilitated emissions across both on and off-balance sheet activities, guided by the Partnership for Carbon Accounting Financials and the GHG Protocol. The outcomes of these exercises were presented to the GBRC and the GSMC by Group Risk Management and Group Marketing, Communications and Sustainability, respectively, to support the integration of climate risk insights into the Group’s broader sustainability management and strategic planning. DIRECTORS’ RESPONSIBILITY STATEMENT IN RESPECT OF THE PREPARATION OF THE AUDITED FINANCIAL STATEMENTS (Pursuant to Paragraph 15.26(a) of the MMLR) The Board is fully accountable for ensuring that the Audited Financial Statements are prepared in accordance with the Companies Act 2016 and the applicable approved accounting standards set out by the Malaysian Accounting Standards Board so as to present a true and fair view of the state of affairs of the Group and of the profit and loss and cash flow as at the end of the accounting period. In preparing the Audited Financial Statements, the Directors are satisfied that the applicable approved accounting standards in Malaysia have been complied with reasonable and prudent judgment and estimates have been made. The Audited Financial Statements are also prepared on a going concern basis, as the Board has a reasonable expectation, after having made enquiries that the Group has adequate resources, to continue its operational existence in the foreseeable future.
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