24 KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2023 ABOUT THIS REPORT WE ARE KENANGA LEADERSHIP STATEMENTS SUSTAINABILITY AT KENANGA MANAGING OUR KEY ESG RISKS We have aligned our climate-related disclosures with the Taskforce for Climate-related Financial Disclosures (“TCFD”) recommendations, a leading standard in reporting climate issues, as outlined in Bank Negara Malaysia Climate Risk Management and Scenario Analysis Policy Document (“BNM CRMSA”) for financial institutions. BNM CRMSA policy guides us in providing reliable, meaningful, and comparable climate-related disclosures, by assisting stakeholders in making well-informed decisions and managing climate risks and opportunities effectively. To comply with BNM requirements, we conducted a gap analysis, developed implementation plans, and aligned essential internal policies and procedures with climate risk management guidelines. This implementation will occur in phases, following regulatory timelines, and is targeted for completion by the end of 2024. Additionally, we are progressively aligning with TCFD recommendations and further enhancing our capabilities to manage and disclose climate risks and opportunities over time. The following sections will provide more information on Kenanga’s TCFD-aligned climate-related disclosures focusing on the four (4) TCFD pillars: OUR APPROACH Effective risk management practices play a crucial role in ensuring the long-term viability of a business and maintaining stakeholder confidence. It is our objective to ensure that the business is being managed in a sustainable manner while taking into consideration of the ESG expectations from our stakeholders to further manage our risk exposures. The Group is governed by the Enterprise Risk Management Framework (“ERM Framework”) and the philosophy adopted is based on the ‘Three Lines of Defense’ approach. The ERM Framework defines the roles and responsibilities throughout the organisation to ensure accountability and ownership, as well as sets out the principles of sound corporate governance to assess and manage risks to ensure risk-taking activities are aligned with the Group’s long-term viability and its capacity to absorb losses. The Group Board Risk Committee (“GBRC”) is responsible to ensure the Group’s activities are consistent with its approved risk appetite, strategies and policies. We are gradually integrating ESG considerations into our risk management practices, and this approach supports our long-term viability by aligning our corporate policies and procedures with relevant sustainability standards. For more information on our Risk Management Framework and Governance, please refer to the Statement on Risk Management and Internal Control on pages 111 to 115 of our Annual Report 2023. MANAGING OUR CLIMATE RISK WHY IT MATTERS Climate risk management helps mitigate environmental and economic risks caused by climate change, ensuring business resilience and continuity. Effective management also leads to innovative and sustainable practices, thus enhancing competitiveness and market position. Governance Strategy Risk Management Metrics and Targets G S R M
RkJQdWJsaXNoZXIy MTc1ODMy