KUB Malaysia Berhad Annual Report 2021

LPG Division SUSTAINABILITY GOVERNANCE KUB’s Board of Directors has the overall responsibility for sustainability and considers economic, environmental, social and governance (‘EESG’) matters in the development of the Group’s strategy. EESG matters that are material to value creation are integrated into the Group’s balanced scorecard, which is used to set objectives, drive behaviour, measure performance and determine remuneration. Board Risk Management Committee • Deliberating and recommending all key sustainability-related matters • Reviewing significant EESG risks and approving mitigation plans • Providing support, direction and advice to implement sustainability-related strategies • Reviewing the adequacy of the internal sustainability scope, sustainability programmes, functions and resources Sustainability Committee • Implement mitigation plans of sustainability-related strategies • Identifying EESG risks and opportunities • Monitoring and mitigating EESG risks The Group integrates sustainability practices into its business model and throughout all its processes and procedures. Sustainability practices are aligned with its philosophy of ‘Think Sustainably, Act Responsibly’. The Group has established a formal Sustainability Policy and Framework as a tool for advocacy. This policy and framework affirm sound action plans. STAKEHOLDER INTERACTION Mutual respect, transparent behaviour and open dialogue are the best foundations for effective relationships with various stakeholders. A robust engagement model helps the Group to connect with both internal and external stakeholders. This approach helps the Group to develop effective partnerships and increase involvement in local communities. Board of Directors Board Risk Management Committee Sustainability Committee Figure 1 - Structure and Responsibilities of Governance Committees ICT Division Agro Division Stakeholder Group Areas of Interest Methods of Engagement Frequency of Engagement Customers • Business outlook • Market positioning • Quality goods and/or services Consumer surveys Biannually Sales/technical visits As and when required Corporate website/social media platforms As and when required Periodical Productivity Report Monthly Employees • Career opportunities • Work-life balance • Skills development • Benefits and rewards • Equity Employee Performance and KPIs Biannually Awareness on good ethics, whistleblowing policy & audit reports As and when required Periodical medical check-up review As and when required Induction, training and competency development As and when required Work planning and recruitment Annually Occupational Safety and Health Committee meeting Quarterly Safety briefings to employees and workers As and when required Safety training and competency As and when required Regular business communication As and when required Periodical inspections As and when required Good labour practice and awareness As and when required 25 ANNUAL REPORT 2021 PERFORMANCE REVIEW