UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 MANAGEMENT DISCUSSION & ANALYSIS 73 72 SUSTAINABILITY STATEMENT SUSTAINABILITY STATEMENT SUSTAINABILITY AT UEM EDGENTA At UEM Edgenta, sustainability means managing and operating a responsible business while striking a balance between our economic aspirations, environmental commitments, social and governance responsibilities. We envision becoming an industry leader with sustainability as our hallmark of operation excellence and corporate citizenry, building positive and impactful relationships with our stakeholders for the long term. In realising our ambition, we continue to improve our sustainability performance disclosures through progressively enhancing our data measurement and monitoring processes. Additionally, we are developing a sustainability roadmap which will guide us on our sustainability journey. Our sustainability strategy is underpinned by our environmental, economic and social commitments, which revolve around three key themes: Social Value Creation Sustainable Economic Growth Minimising Environmental Impact On 7 October 2021, a Pre-Board Convergence session themed Reshaping the Business Towards a Sustainable Future was held virtually, to discuss topics centering around the need to embed sustainability in business strategy, what companies can do to respond to ESG expectations, as well as measurement of impact of ESG within companies. This knowledge-sharing session featured sustainability experts from various backgrounds including finance, consulting and industry, seeking to build capacity within UEM Edgenta’s top management as well as Board of Directors, who also acted as moderators in the event. Governance Structure In UEM Edgenta, Board Governance & Risk Committee plays an oversight role for sustainability performance and risks. The ESG Steering Committee (“SC”) established in FY2021, drives the development of UEM Edgenta’s sustainability strategy and oversees the sustainability implementation. The ESG Working Team which reports to ESG SC, supports the development and monitoring of the Group’s sustainability target and performance. UEM Edgenta’s Board of Directors ("Board") holds the ultimate responsibility in ensuring that sustainability is integrated into the Group’s strategic direction and oversees the overall sustainability strategy and direction. The Board discharges its responsibilities directly and through its committees, i.e. Board Governance and Risk Committee (“BGRC”), which oversees the approval and implementation of sustainability programmes and monitors sustainability performance and risks; and the Nomination and Remuneration Committee (“NRC”), which reviews Board and senior management performance evaluation against the agreed key performance indicators (“KPIs”). Working with the senior management, the Risk Management Committee (“RMC”) oversees the management of sustainability risks as part of Enterprise Risk Management (“ERM”), whilst the ESG Steering Committee is responsible for developing and monitoring our sustainability strategy and frameworks and deliberates and reviews the Group’s sustainability matters and risks, KPIs and performance for Board's consideration. The Board has also identified the Managing Director/Chief Executive Officer as a designated person within management, to provide dedicated focus to manage sustainability strategically, including the integration of sustainability considerations in the operations of the Group. Coordinating with the RMC to consider and incorporate sustainability risks within the Group’s risk profile, together, the Corporate Strategy and Planning department and Operational Excellence & Health, Safety, Security and Environment (“HSSE”) department formed an ESG Working Team which is tasked with monitoring, tracking and reporting sustainability performance on a quarterly basis. The ESG Working Team is also responsible for developing sustainability strategy, frameworks, planning and roadmaps; coordinating the implementation of sustainability activities; supporting the development of sustainability targets and KPI settings; developing plans and timeline for disclosures; and aligning the Group’s sustainability agenda with business practices on the ground. Corporate policies and sustainability strategies are cascaded down to business units/corporate support functions through the ESG and business units/corporate support functions will provide progress reports on sustainability performance and support the implementation of our sustainability strategy and initiatives. To further demonstrate our strong intent to implement a robust governance structure in our organisation, we forged relationships with sustainability oriented networks. In December 2021, UEM Edgenta was accepted as one of more than 50 members of the CAN. CAN is a closed door, informal, peer-to-peer network of CEOs and Board members in Malaysia focused on sustainability advocacy, capacity building, and action. CAN drives sustainability performance of members by supporting the implementation of sustainability initiatives and securing collective commitments on climate action and social stewardship. By becoming a member, we affirmed our active participation in the Awareness and Capacity Building workstream. Through this workstream, we strive to engage with various stakeholders including our supply chain partners, regulators and policy makers, Government and peers across various sectors to form partnerships and shape responsible business practices to achieve collective sustainable development agenda. Governance supports the oversight of our sustainability strategies, ensuring appropriate checks and balances are in place to support our journey. Sustainability Governance With operations across multiple industries and geographies, sustainability governance is crucial for UEM Edgenta as it shapes our sustainability direction and drives the effectiveness of our sustainability initiatives. The Group recognises that having a strong and effective governance framework is essential to ensure sustainability is embraced within our operations. Towards this end, we have formalised a sustainability governance structure that reflects the intention to integrate sustainability as part of our business imperative, aligning with the call for greater accountability in managing our sustainability performance, as part of stakeholder accountability.
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