As a leader in the REIT sector, we recognize the importance of the role we play within the industry. Industry stakeholders are increasingly concerned about sustainability practices and we continue to respond to these expectations in parallel with our own ambitions towards sustainability.
Our sustainability journey in the last five years saw us achieve milestones through the years in our continued learning and driving sustainability initiatives within KLCCP Stapled Group. We will keep advancing our sustainable practices to improve performance and embrace the challenge of stretch-goals for a future-proof sustainable business.
The Groups’ governance structure which was formalised in 2016 was designed to build on the capacity to pursue sustainable goals.
Sustainability in KLCCP Stapled Group is governed across various levels within the organisation – the Board, CEO, and Sustainability Steering Committee (SSC). The SSC comprises heads from all major business functions - Strategy & Finance, HSE, Legal, Development & Leasing, Human Resource, Risk Management and Facilities Management which ensures the development of sustainability strategies represent the wider interests of the Group.
The SSC supported by a working committee plays the key coordinator in ensuring sustainability matters are addressed in each department and reports to the CEO who is responsible for driving the implementation of sustainability strategy for KLCCP Stapled Group and reports the progress to the Board.
We established the KLCCP Stapled Group’s Corporate Sustainability Framework (CSF) which encapsulates our principles on sustainability and aligns to our priority areas under the EES sustainability aspects.
The CSF serves as a guide in managing the strategic and operational risks and opportunities which supports our business strategies, sustainability approach and objectives. Premised on the PETRONAS’ Corporate Sustainability Framework, we adopted it to our context with eight focused areas – Governance and Business Ethics, Climate Change, Natural Resource Use, Health, Safety, Security and Environment, Workforce Development, Human Rights, Shareholder Value and Corporate Social Investment.
With changes made by FTSE Russell to include Biodiversity as a theme exposure for the Real Estate Holding and Development sector, we then included Biodiversity as one of its key focus areas into our CSF.
Applicable across all our business operations, our CSF embodies 9 focused areas namely Governance & Business Ethics, Climate Change, Natural Resource Use, Biodiversity, Health, Safety, Security & Environment, Workforce Development, Human Rights, Shareholder Value and Corporate Social Investment.
This year we referenced our reporting to the United Nation’s 2030 Agenda of five critical dimensions: Prosperity, Planet, People, Partnership and Peace, also known as the 5Ps that shape and represent the 17 Sustainable Development Goals, in line with our commitment to contribute towards the UNSDGs and sharing the global vision towards sustainable development for all
The principle of materiality is becoming the essential filter to determine which ESG indicators will be most significant to stakeholders. In identifying the material matters, we evaluated our sustainability context, stakeholder issues and the associated risks and opportunities for KLCCP Stapled Group to streamline our actions to benefit all stakeholders concerned. We considered both internal and external factors affecting the industry in our review and assessed its impact on our business and stakeholders.
Our key stakeholders are defined by their significance, interest, impact and influence on our businesses. Every group of our stakeholders is important to us and we continue to engage them to address their concern, obtain their views and feedback on areas of interests and manage their expectations.
We engaged and updated them on our operations, performance and plans via both formal and informal channels. By engaging effectively with our stakeholders, we will not only contribute towards improving our performance but also enriching the lives of our community.