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.
As a real estate investment and development player, we aspire to contribute and make a positive impact to the communities and the world we live in. In pursuing this aspiration, we aligned our sustainability practices to the UNSDGs for sustainable development by operating responsibly, increasing opportunities, reducing corporate risk arising from sustainable development issues whilst maximising value creation over the long-term.
We prioritized the UNSDGs in promoting sustainable development as a real estate player taking into account the context of our operating and business environment and aligning with our risk profile and strategic objectives.
We have chosen to focus on 5 UNSDGs where we believe we can make the most impactful contributions. This takes into account our sustainability pillars, the markets we operate in and our businesses.
KLCCP Stapled Group identifies the material matters through the emerging issues impacting our commercial and operational landscape, taking into account the external environment, issues impacting our organisation and also sustainable matters being championed by the country.
Our material matters have the most impact on our strategy to create long-term value for our stakeholders. We review our material matters annually and evaluate 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 also benchmark against our real estate and REIT players, both globally and locally to identify the material matters that are common to the Real Estate Holdings and Construction sector.
In determining the top material matters for 2018, we arrived at a list of 12 material matters under which there are 25 priority areas that are significant to KLCCP Stapled Group and our stakeholders.
KLCCP Stapled Group recognizes stakeholder management as an important aspect to ensure transparency and accountability.
With expectations changing rapidly in the real estate industry, investors, community, regulators and other stakeholders are continuously seeking for greater levels of transparency with respect to the economic, environment and social issues.
KLCCP Stapled Group has a diverse group of stakeholders comprising both internal and external stakeholders whom we have been engaging with through the various communication channels to identify and understand the issues that are most important to them.
Communication with stakeholders is imperative in understanding and managing their expectations and provide new perspectives in generating positive impact to the organisation.
We engage with our stakeholders according to their areas of interest and address any issues raised appropriately through specific channels of communication.
The following demonstrates our key stakeholder groups, our engagement approach, their areas of interest and how we address their queries.