Integrated Annual Report 2024 SECTION 4 • EFFECTIVE STEWARDSHIP THROUGH GOOD GOVERNANCE 61 PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) I. Board Responsibilities (cont’d) Governance of Sustainability (cont’d) The Board has fiduciary duties and is focused on maintaining good corporate governance practices, which include a commitment to ethics, integrity and corporate responsibility, ensuring that our corporate strategy aligns with our values and culture. The Board takes guidance on material sustainable issues from the SC. The Board sets corporate governance standards and policies for the Company while the Group CEO oversees the execution of approved strategies, governance standards, policies and procedures at the Group-level. By instituting transparent policies and ethical principles, the Group aims to cultivate greater trust, confidence and loyalty amongst our stakeholders. The strategic management of the material sustainability matters and the integration of sustainability considerations in the operations of the Group are driven by the Senior Management, led by the Group CEO, who serves as the Chair of the SC. Progress on the implementation of the Group’s sustainability initiatives, ESG targets and other significant ESG matters are brought to the attention of the Board through the SC for deliberation. The SC presented updates to the Board on sustainability performance review of the Group related to GHG Emissions, Water Withdrawal, Waste Recycling, Occupational Health and Safety, and Gender Diversity at the quarterly Board meetings. The SC also keeps the Board updated on any latest ESG development and initiatives of the Group. The Board had undertaken relevant trainings to stay abreast and understand the latest sustainability issues. During the year, the Company organised a sustainability training entitled “ESG & Internal Audit - Strengthening the Third Line of Defence” for the Board. The Company enlisted KPMG PLT to provide limited assurance on the ten (10) selected sustainability indicators which includes the following: 1. Percentage of directors by gender and age group (%) 2. Percentage of operations assessed for corruption-related risks (%) 3. Confirmed incidents of corruption and action taken (number) 4. Total energy consumption (million gigajoules) 5. Number of work-related fatalities (number) 6. Lost time incident rate (rate) 7. Number of substantiated complaints concerning human rights violations (number) 8. Number of substantiated complaints concerning breaches of customer privacy and losses of customer data (number) 9. Scope 1 GHG emissions (kilotonnes of CO2e) 10. Scope 2 GHG emissions (kilotonnes of CO2e) In pursuit of upholding industry-leading standards, the Company has taken decisive steps to align management and governance practices with top global benchmarks. The Company’s ERM framework adheres to ISO 31000:2018 risk management guidelines, enabling the Group to effectively identify ESG risks and opportunities and seamlessly integrate them into our strategies and processes. The Group’s sustainability performance continues to be validated by reputable local and international ratings and accreditation organisations. The MSCI ESG Rating was upgraded from “A” to “AA”, certifying that the Group remain highly resilient against long-term, ESG-related risks. These concerted efforts and consistent achievements have led in the Company maintaining our 4-star rating under the FTSE4Good Bursa Malaysia Index for the third year running. Full details of the Group’s Sustainability efforts can be found in the Sustainability Report on pages 89 to 216 of this IAR 2024. Corporate Governance Overview Statement
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