Kimlun Corporation Berhad Annual Report 2018

Kimlun Corporation Berhad 25 SUSTAINABILITY STATEMENT Oversees the sustainability framework and policies Board of Directors Oversees audit or assurance activities with respect to sustainability management and reporting Audit Committee (comprises of all the executive directors of the Company and its wholly owned subsidiaries) • identify the strategies for the management of sustainability issues • Mandate the respective business units to carry out the sustainability efforts (“SE”), and ensure best practices of sustainability are embedded across the Group (Comprises of senior management of respective business units) • Drive and review the implementation of the SE and initiatives • Recommend improvements to SE and action plans Executive Committee Business Division Sustainability Steering Teams Governance Structure Sustainability is addressed at the highest levels at Kimlun. Our Board of Directors oversees the business affairs of the Group and is collectively responsible for our long-term success. The main duties of our Board include providing leadership on Kimlun’s overall strategy, which takes into consideration sustainability issues, its framework and policies. Our Board also ensures the adequacy of the Group’s framework for risk management and internal controls. The Group’s sustainability framework can be illustrated as follows: Scope of Sustainability Reporting and Basis for the Scope Our sustainability reporting covers our key business activities, namely construction and pre-cast concrete components manufacturing business carried out by our wholly owned subsidiary companies. Property Development division has been excluded as its revenue contribution was minimal and not expected to be significant in the near future, and almost all of its construction needs are performed by our construction division. It also excludes joint ventures for which Kimlun does not have management and/or operational control. Material Sustainability Matters (“MSM”) In identifying our MSM which reflect our significant economic, environmental and social impacts, we have considered the following: (i) the nature of our business and our corporate strategy; (ii) risks assessment and risks scoring based on matrix developed pursuant to our enterprise risk framework; (iii) our understanding of our stakeholders’ needs. Our understanding of stakeholders’ need is obtained through our engagement with them by way of: • discussions • survey; • participation in activities conducted by external stakeholders such as public authorities, charitable organisations and investment banks; and • dialogues with financial analysts from time to time as a means of effective communication that enables the Company to convey information relating to the Company’s performance, corporate strategy and other matters which may be of interest to the investing community, at the same time obtain feedback from the financial analysts. (cont’d)