28 KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2023 ABOUT THIS REPORT WE ARE KENANGA LEADERSHIP STATEMENTS SUSTAINABILITY AT KENANGA MANAGING OUR KEY ESG RISKS To further strengthen our climate risk governance structure and management, we will continue to conduct ESG capacitybuilding sessions with an emphasis on climate risk-related topics to ensure group-wide understanding on this critical subject matter and its impact on businesses. Aligned with our Sustainability Roadmap 2023-2025 and regulatory requirements for the implementation of BNM CCPT and CRMSA, we will further implement our climate risk management strategies, including conducting a scenario analysis exercise to better understand the climate risk impact on businesses, starting with our private equity investment and corporate lending portfolios. Moving Forward Moving Forward Strategy The Group’s Sustainability Framework and Sustainability Roadmap 2023-2025 includes climate risk management as a strategic focus area which is embedded within the Environmental Stewardship pillar. Highlights of our climate-related initiatives in 2023 include: S Incorporated climate risk management into ERM Framework Updated existing Risk Appetite Statement with the integration of climate risk Improved the structure of our climate change risk and opportunity reporting for the Board, encompassing sector-specific BNM CCPT ratings, high climate risk exposure by counterparty, and updates on key climate-related developments in Malaysia and globally Strengthening Proficiency in Climate Risk Management of Business Units In 2023, Head of Departments from relevant Business Units participated in the Risk Assessment Checklist (“RAC”) workshop, conducted with PwC consultants, aimed at enriching the understanding of the BNM Climate Change and Principle-based Taxonomy (“CCPT”). The three (3)-hour workshop encompassed a comprehensive overview of CCPT and augmented with practical case studies designed to illustrate effective climate risk assessment and classification, as part of the implementation of BNM CRMSA.
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