32 KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2023 ABOUT THIS REPORT WE ARE KENANGA LEADERSHIP STATEMENTS SUSTAINABILITY AT KENANGA Metrics & Targets As part of our baselining exercise, the Group has detailed relevant Scope 1 and 2 GHG emissions in tonnes of carbon dioxide equivalent (“tCO2e”) resulting from business operations at our headquarters, Kenanga Tower and all branches throughout Malaysia. We are guided by the GHG Protocol Corporate Standards in the calculations of emissions factor. Additionally, we have started to disclose Scope 3 GHG emissions of our business operations. In this 2023 report, we have expanded our Scope 3 tracking and monitoring dashboard to include employee commuting, in addition to business travel. Furthermore, we have developed a climate-risk data catalogue to track various climate-related risk metrics, including GHG footprint, transition and physical metrics, and climate change targets in our private equity investments and corporate lending activities. M For more information on our environmental performance on Scope 1, 2 and 3, please refer to pages from 61 to 63 of this Report. Our Group Procurement Policy provides employees with a guiding framework based on professionalism, transparency, and accountability in our procurement decisions. The Group Code of Conduct for Vendors outlines the obligations, as well as standards our vendors are required to adhere to. Our vendors are required to comply with the Code of Conduct for Vendors, which outlines the adherence to all requirements of applicable anti-corruption laws including the MACC Act 2009. Our ‘Know Your Vendor Assessment’ allows us to ensure we maintain good standards of ethics and integrity in our business partnerships with contractors, and intermediaries such as consultants, suppliers, agents and individuals, who undertake work for the Group. The assessment requires vendors to go through a due diligence process that reviews risk indicators, culminating in a score that serves as a OUR APPROACH MANAGING OUR SUPPLY CHAIN RISK WHY IT MATTERS ESG risks are important considerations in procurement practices to mitigate supply chain disruptions. Managing these risks ensures sustainable and responsible sourcing, reduces operational disruptions, and enhances stakeholder trust and reputation. Further aligning sourcing with environmental and social standards helps mitigate negative impacts on communities and ecosystems, while addressing climate change and human rights issues in the supply chain. guide for Kenanga to manage its front-end risk. As part of our corruption risk assessment exercise, it covers our intermediaries including vendors, suppliers and service providers, which undergo an Anti-Money Laundering (“AML”) screening for any recorded cases on bribery and corruption. As part of our efforts to optimise efficiency and transparency, we have also fully digitalised our procurement process. In 2023, we have reviewed the Group Procurement Policy to ensure its compliance to BNM CRMSA requirements in integrating climate risk assessment for vendors. The policy will be updated to include ESG screening criteria that incorporates climate risk indicators. Any changes to any aspect within the Code of Conduct for Vendors or Group Procurement Policy will be communicated to our vendors accordingly. MANAGING OUR KEY ESG RISKS Supporting Our Local Suppliers We strive to purchasing locally while supporting local communities and social enterprises, where feasible. 81.5 million 65.9 million 67.4 million Total procurement spent on local businesses (RM) FY2023 FY2023 FY2022 FY2022 FY2021 FY2021 82% 76% 80% We aim to develop a Net Zero Roadmap with a focus on enterprise-wide and portfolio decarbonisation strategy in line with our 2050 Net Zero aspirations. In addition, we will further review and extend our Scope 3 disclosures to include financed emissions, which will form the basis for the development of climate-related interim targets and metrics. The updated Group Procurement Policy is expected to be implemented in 2024 through supplier engagement sessions to promote adoption of sustainable procurement practices. Moving Forward Moving Forward
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