KENANGA INVESTMENT BANK BERHAD 60 INTEGRATED ANNUAL REPORT 2025 Key Activities: • Enhanced climate risk and physical risk considerations in the ESG Framework to align with the best global practices and local regulatory developments, including strengthening oversight by ensuring clearer accountability for decarbonisation and just transition strategies. • Widened the scope of its climate risk assessment by evaluating the GHG data analysis of investee companies, shifting from qualitative to quantitative assessment. This included evaluating Scope 1 and 2 emissions, engagement targets and embedding climate risk metrics into the assessment process. • KIB engaged 40 investee companies in high-risk sectors to support decarbonisation and just transition efforts, resulting in commitments on GHG targets, physical risk plans and strengthened social-impact safeguards. • KIB and Kenanga Islamic Investors Berhad were affirmed investment manager ratings (“IMR”) of IMR-2 by the Malaysian Rating Corporation Berhad for the 9th consecutive year since they were first rated in 2017. • As of December 2025, KIB’s ESG-screened assets under management (“AUM”) reached RM15.5 billion, which is about 63.2% of its total AUM. • Kenanga Investors Group established a Waqf-related ESG mandate with Waqf institution. • Allocated approximately RM26.6 million, or 16% of Kenanga Private Equity Sdn Bhd’s portfolio to the renewable energy sector. • Directed RM84.5 million or 11% of Kenanga Group’s Corporate Banking’s loan and financing portfolio to green lending and financing, including renewable energy, green technology and climate change mitigation activities. • Kenanga Research organised eight (8) engagement activities and published ten (10) ESG-focused thematic reports. Key Risks: • Sustainability and climate risks arising from portfolio exposure to transition and physical impacts • Credit and market risks arising from ESG-driven valuation and portfolio exposure changes Key Opportunities: • Improves investment resilience, aligns portfolios with evolving market expectations, and opens access to transition-finance RESPONSIBLE INVESTING WHY IT MATTERS Investing in companies with consideration of their ESG practices enhances long-term value creation by identifying opportunities and managing material sustainability risks that may affect portfolio performance. This approach also aligns the Group with evolving stakeholder expectations and regulatory requirements, strengthening trust and credibility across its investment ecosystem. SUSTAINABILITY STATEMENT
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