KENANGA INVESTMENT BANK BERHAD 42 INTEGRATED ANNUAL REPORT 2025 SUSTAINABILITY STATEMENT Climate Scenarios Kenanga Group applied significant judgement in selecting and assessing three (3) climate pathways—Net Zero 2050 (“NZ2050”), Divergent Net Zero 2050 (“DNZ2050”) and Nationally Determined Contributors (“NDCs”)—to evaluate potential transition and physical risks. The analysis draws on key climate-related driving forces informed through external research, regulatory guidance and internal risk categories, forming a structured basis for assessing how different climate futures may influence the Group. Business Units (“BUs”) assessed scenario‑specific risks using the Group’s risk assessment methodology, taking into account inherent data limitations and forward‑looking uncertainties, and identified the relevant controls and mitigation strategies for each scenario. Overall, the assessment indicates that although risk levels increase progressively across the scenarios, they remain low, with no material impacts or vulnerabilities identified that would affect the Group’s operations or financial position. The findings are broadly consistent with the Climate Risk Stress Test (“CRST”) conducted in 2025. Calculation Methodology for GHG emissions Kenanga Group applies a range of calculation methodologies to estimate its Scope 3 GHG emissions. Management exercised significant judgement in selecting the most appropriate approach for each Scope 3 category, taking into account the availability and quality of underlying data and the extent to which estimation techniques can be reliably applied. For Category 6 (Business Travel) and Category 7 (Employee Commuting), calculations are performed in accordance with the GHG Protocol Corporate Standards, using recognised emission factors and reasonable estimates where direct data is limited. For Category 15 (Investments), the methodology is aligned with the PCAF Standard, with further details available on the Sustainability microsite: https://www.kenanga.com. my/who-we-are/sustainability. Where direct data is limited, reasonable estimation methods are used in line with recognised standards, maintaining consistency across disclosures. 1.4 Measurement Uncertainty Quantification of Anticipated Financial Effects for Climaterelated Disclosures The measurement of anticipated financial effects arising from identified climate-related risks and opportunities is subject to a high degree of uncertainty over the short and mediumterm, with greater level of uncertainty over the long term. This reflects inherent limitations in forward-looking data, including assumptions on the timing, likelihood and potential implementation of future regulations or climate-related events. In line with the ISSB transition provisions, and to avoid undue cost or effort, current disclosures focus on qualitative descriptions of anticipated financial effects. These are supported, where relevant, with quantitative insights derived primarily from expected credit loss (“ECL”) analysis, providing an initial basis for linking climate considerations with financial outcomes. Financial Impact Arising from Climate Risks Kenanga Group evaluates climate-related financial implications through the analysis of several plausible climate futures, each reflecting different transition and physical risk conditions. These pathways rely on forward-looking assumptions and model-based projections to illustrate how varying climate developments may influence the Group over time. While the analysis is supported through structured methodologies and ongoing refinement of assumptions, uncertainty remains inherent. Predictive tools are not able to capture the full range of possible climate-related outcomes, and the insights derived are therefore presented with an understanding of these limitations, forming part of a broader assessment rather than definitive projections. 1.5 Reporting Assurance Independent limited assurance has been performed by SGS (Malaysia) Sdn Bhd (“SGS”), in accordance with International Standards of Assurance Engagement (ISAE) 3000 (Revised), over the Group’s Scope 1 and Scope 2 GHG emissions disclosures for the reporting period 1 January 2025 to 31 December 2025. This provides an additional layer of credibility to the reported information, supporting confidence in the accuracy and consistency of emissions data.
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