KENANGA ANNUAL REPORT 2020

96 4 1 2 3 5 6 7 SUSTAINABILITY STATEMENT RESPONSIBLE INVESTING SUSTAINABI L I TY STATEMENT Our asset management subsidiary, Kenanga Investors Berhad, has been a signatory to the Malaysian Code for Institutional Investors ( “Code” ) since 2017 and recently became a member of the Institutional Investors Council ( “IIC” ). We are committed to working with asset owners, regulators and a wide range of market participants to deliver on this step change to stewardship and ESG, ensuring that it takes its place at the heart of the investment process and to promote the sustainability agenda. In addition to financial considerations, the integration of ESG factors in the investment process is essential to make better informed and holistic investment decisions to ensure long-term sustainable value to stakeholders. We believe that the continuous delivery of consistent performance stems from the premise of an effective stewardship and active ownership approach throughout the investment value chain. As a responsible investor we want to manage ESG risks and opportunities when investing on behalf of our clients, and have identified certain sectors in which we will not invest above a specified threshold. Consequently, sectorial exclusions (e.g. investments on controversial weapons and defense, severe breaches of the United Nations Global Compact ( “UNGC” ) principles or companies with poor ESG performance), are applied across all assets. Going beyond this, we will apply our ESG standards to our responsible investing and ESG-integrated open ended funds in phases, which will also be available to institutional clients on an opt-in basis. Kenanga Investors Group (Kenanga Investors Berhad and its subsidiary, Kenanga Islamic Investors Berhad) officially become a signatory of the Malaysian Code for Institutional Investors ( “the Code” ) in 2017. > From (R-L): Ismitz Matthew De Alwis (Right) , Executive Director/Chief Executive Officer, Kenanga Investors Berhad and Dato’ Wan Kamaruzaman bin Wan Ahmad , Former Chairman, Institutional Investors Council Malaysia