Kenanga Sustainability Report 2023

45 MANAGING OUR KEY ESG RISKS GOOD GOVERNANCE SUSTAINABLE ECONOMIC GROWTH ENVIRONMENTAL STEWARDSHIP EMPOWERING PEOPLE AND COMMUNITIES APPENDIX SUSTAINABLE ECONOMIC GROWTH ESG Integration Strategy Positive Screening • Incorporate ESG factor assessment into investment analysis and decision-making • Invest in companies that meet our ESG standards Negative Screening • Avoid investing in companies with unsatisfactory ESG performances • Exclude industries that do not align with our ESG core values from investment consideration, such as controversial weapons and adult entertainment Voting Rights • Exercise our voting rights in investee companies with substantial holdings, as per our voting policy • Serve as a formal channel to communicate and relate our views to investee companies, especially on ESG-related issues • Encompass significant resolutions such as the appointment of auditors and board of directors, proxy contests, anti-takeover provisions, corporate governance matters, capital structure decisions, including mergers and acquisitions, and executive compensation Active Engagement • Actively engage with stakeholders across industry and investee companies to monitor and promote good ESG practises ESG Integration Throughout Investment Life Cycle Pre-Investment • Stock selection based on ESG assessment conducted via positive and negative screening Post-Investment • Continuous ESG monitoring and review • Exercise active ownership through voting and engagement to ensure continued ESG alignment Divestment • Divest stocks that are not aligned with our ESG values Our Sustainable Investment Products Kenanga Investors currently has three (3) Sustainable and Responsible Investment (“SRI”)-qualified ESG funds under its Kenanga Sustainability Series (“KSS”). These funds were also disclosed in the research reports which are shared on our website via the ‘Market Insights’ webpage, providing a comprehensive look at the ESG criteria for investment.

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