GHL System Berhad Annual Report 2023

CORPORATE GOVERNANCE OVERVIEW STATEMENT CONT’D PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (Cont’d) IV. SUSTAINABILITY STRATEGIES The Company has developed a sound sustainability governance structure, under which the Board is responsible for the leadership and supervision of sustainability matters and performance of the Group. An SC had been established to further strengthen the management of sustainability matters and oversee aspects of the Company’s Sustainability affairs, including integrating and embedding sustainability agenda across the Company. The Board is assisted by the Group CEO who reviews and recommends to the Board all sustainability-related information that were collated and documented by the SC. The SC which was established in 2021 had brought the Company further in the Company’s sustainability goals guided by the United Nations’ Sustainable Development Goals and the Company’s Sustainability Framework. The Company had been included in the FTSE4Good Bursa Malaysia and FTSE4Good Bursa Malaysia Shariah Index for meeting the FTSE4Good criteria since 2022. As part of the commitment to the Company’s four (4) core sustainability pillars, the Board had in 2023 established a series of key performance indicators (“KPIs”) for measuring and tracking the Company’s ESG performance. 2023 also marked a significant achievement in the Company’s ongoing commitment to its sustainability efforts when the Company took home the Silver Award for ‘Most Improved Performance Over 3 Years’ at the prestigious The Edge Malaysia ESG Awards 2023. The details of the Company’s sustainability governance structure and initiatives for 2023 are disclosed in the Sustainability Report that is available on the Company’s website at www.ghl.com. PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT I. AUDIT AND RISK COMMITTEE (“ARC”) The ARC takes on the role of assisting the Board in the discharge of its responsibility of overseeing the financial reporting process and ensuring that the results of the Company’s operations are fairly presented in its financial statements. The ARC comprises four (4) members, and is chaired by Dato’ Chan Choy Lin, Carol, an Independent NonExecutive Director. The Terms of Reference set out its duties and responsibilities, are disclosed on the Company’s website at www.ghl.com. The Policy Statement on Auditor Independence, which was approved by the Board, establishes the responsibility to assess the suitability, objectivity, and independence of the External Auditors to the ARC. A full ARC Report enumerating its composition, summary of activities and the Group internal audit function during the financial year is included in this Annual Report. II. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK The Board acknowledges its responsibility for maintaining a sound system of risk management and internal control of the Group that provides reasonable assurance of effective and efficient business operations, compliance with laws and regulations as well as internal procedures and guidelines. The Board has delegated to the ARC the responsibility of reviewing the effectiveness of control procedures and risk management framework and to report to the Board on all its findings and recommendations for deliberations. This system, by its nature, can however only provide reasonable but not absolute assurance against misstatement, fraud, or loss. This system is reviewed at least biannually by the Board in terms of its continuing adequacy and operating effectiveness in all material aspects. The Statement on Risk Management and Internal Control furnished in this Annual Report provides an overview of the state of risk management and internal controls within the Group. 53 ANNUAL REPORT 2023

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