Prosperity

ADVANCING ECONOMIC RESILIENCE

5-Year Sustainability Roadmap (2019-2023)

Goal 1: Building a Smart, Safe and Sustainable KLCC Precinct

We are committed to sustainable social and economic development across our business, operations and communities. We seek to share prosperity through our local hiring, investments in our operations and infrastructure, and contributions to non-profit organisations that help communities thrive and promote inclusive social development.

Our Approach

The way we manage the business – through the life cycle of our assets, reflects our financial, physical, and social approach and priorities. We constantly look to strengthen our portfolio to ensure it meets the changing needs of our customers and communities. We always bring social, economic, and environmental benefits to the areas where we operate. Great design increases efficiency, encourages people to spend time in our spaces and enables buildings to adapt to changing customer needs. We design with long-term value in mind. We design our buildings to support wellbeing and productivity.

We aim to make meaningful contributions economically and socially and grow with our stakeholders which includes our suppliers, customers, tenants and business partners to maintain long-term partnerships across our business portfolios.

We invest to attract and develop great people who add value to our business. We take engagement, wellbeing, diversity, and reward seriously and conduct regular reviews. We help those furthest from the jobs market access opportunities in our industry. We believe that everyone who works on our behalf must be treated and paid fairly and our business should reflect and support our diverse communities. We strive to maintain a high standard of health, safety and security in all the working environments we control and partner to help raise standards in our industry.

Focus For The Year

1
Supporting the Government’s effort in economic recovery by providing rental assistance to our retail tenants and through corporate social investment programmes
2
Strengthening business resilience and continuity through close monitoring of our cash flow and cost optimisation
3
Enhancing customer and tenant communication in building trust and elevating experience
4
Progressing social agenda through community programmes for the needy and underprivileged

Our Material Matters

Our strategy to deliver sustainable growth and long-term value to our stakeholders were underpinned by four strategic pillars of maximising value of investments, resilience in soft market conditions, creating sustainable value and embracing digital for business enhancement which saw us responding to the harsh impact of COVID-19 on our businesses.

CONTRIBUTION TO NATION BUILDING AND INDUSTRY GROWTH

Our business is driven by our clear Statement of Purpose – We Create Places People look forward to, Progressing Lifestyle for a Sustainable Future. We create positive experiences for our stakeholders in the places they work, shop, socialize and live. Our chosen sectors offer us numerous market opportunities that we address by managing our portfolio of assets.

Our success is based on our expert team and solid balance sheet. Together, these provide resilience in uncertain conditions and the power to address opportunities. Across the Group, our approach is characterised by customer centricity and a culture of accountability with an enterprise mindset – all underpinned by an industry-leading approach to sustainability.

Ultimately, our aim is to create sustainable shareholder returns, together with significant social and economic value for our stakeholders.

We collaborate with our stakeholders, particularly our tenants and customers, to ensure we emerge from the COVID-19 pandemic in a strong position. As part of our obligation towards the nation’s economic growth, we paid RM81.9 million in tax to the Government for the year.

COMMITMENT TO CAPITAL MARKET DEVELOPMENT

We forge strong relationships with our shareholders as well as with our banks and sukuk holders who provide our equity and debt funding. As a listed company we have a responsibility to those individuals and institutions who have invested money in our business either through equity (our shareholders and joint venture partners) or debt (our banks and sukuk holders) to deliver long-term and sustainable returns on their investment.

We ensure regular communication with our investors through an extensive programme, mainly managed by a dedicated Investor Relations team. The engagements were conducted via various platforms – one-on-one meetings, conference calls, analysts’ briefings, and site visits to KLCCP Stapled Group properties as well as at capital market conferences. The Annual General Meeting normally also provides an excellent opportunity to meet many of our retail shareholders and answer their questions about the business but due to the pandemic we transitioned to host the AGM in a fully virtual mode which allowed shareholders to participate online and raise their questions. We had 1,003 shareholders who logged on to the Remote Participation and Voting Facility and all 74 questions raised by the shareholders were answered during the live AGM proceedings, including those from our major shareholders, EPF, MSWG and PNB.

Our website contains comprehensive information about our strategy and performance, regulatory news and press releases as well as information about our debt and our approach to ESG issues.

During the year under review, the Senior Management and the Investor Relations team held meetings with representatives from 125 institutions and parcitipated in 7 conferences and analysis briefings to update them on our performance and to provide an opportunity for them to ask questions. These investor interactions enable our investors to be updated on our business and allow us to understand their priorities and concerns. This feedback is vital to help shape our strategy and our communications and disclosure to make sure that we are meeting their expectations.

DIGITALIZATION

The creation of our Digital Roadmap (2020-2023) was an important part of digilization process, reflecting our belief that we should consider investments in data and technology in the same way that we consider investments in physical assets. The industry within which we operate offers significant opportunities to make changes that not only help improve efficiencies, but also help us make better and more informed decisions. Key to this is a focus on enhancing operational excellence in the areas of project management, facilities management and safety and security.

Sustainable Procurement and Supply Chain plays a significant role in our sustainability practices. Recognising that we are in a position to influence our suppliers to adhere to our principles and values, we included in all our contracts with our contractors, consultants and suppliers, the provisions requiring them to comply with our CoBE. We also promote transparent and fair practices by our supplier by including a provision on supplier code of conduct in the contract terms and conditions on fighting corruption, maintaining business ethics and prioritising HSE practices.

A HARMONISED DIGITAL PROCUREMENT

As part of the KLCC Group’s transformation agenda which aims to achieve higher functional efficiency and effectiveness across our operations, we embarked on transforming our procurement functions to further enhance the procurement role to become a customer focused strategic partner in providing solutions to the businesses within the KLCC Group.

The transformation involved the Standardisation of Work Processes, Centralisation of Organisation Structure and Harmonisation of System and Application.

We believe in building a strong and trusting relationship with our customer and tenants as we continue to engage with them even during the difficult times. We value their patronage and take into consideration their feedback in our effort to expand our outreach and in building a shared sense of responsibility and progressing societal development. We conducted extensive engagements via numerous communication channels to promote social betterment, building strong tenant relationship and meet the evolving customer behaviour and expectations.

We are also committed to provide the best customer experience and endeavour to exceed guests’ expectations, through personalised services that cater to individual needs. We curated loyalty programmes to suit our guests and provide them with the best experience whether they are in offices, at our retail mall or during their stay at our hotel.

KLCCP Stapled Group embraces social responsibility and maintains active engagement with our diverse group of stakeholders who have a direct or indirect impact to our business, reputation and our purpose in creating a sustainable future for all. We continue to establish mutually beneficial relationships through impactful communications and initiatives that suit the different needs of our stakeholders.

DELIVERING AND ADDING VALUE

In 2021, we generated a total revenue of RM1.2 billion. Of this, about 20% went to purchasing costs and other operating expenses. The remaining RM0.9 billion were distributed to our employees, shareholders, and other providers of capital, paid in taxes to government, or retained in the company.

Planet

PROTECTING OUR ENVIRONMENT

5-Year Sustainability Roadmap (2019-2023)

Goal 3: Combating Climate Change and Reducing Environmental Impact

Protecting the planet is a social, economic and ethical, as well as environmental, imperative. As a recognised corporate leader, we are committed to minimising our environmental footprint and delivering sustainable value to our society.

Our Approach

The world is facing a climate emergency, and natural resources are being used up faster than they can be replenished. Protecting the environment is an ongoing challenge for businesses of all sizes, in all industries, all over the world. We continue to promote responsible business practices throughout our operations and to support the global Climate Change Agenda.

This year, to strengthen our sustainability performance, we looked to evaluate and manage the risks and opportunities associated with Climate Change and assess our readiness towards supporting the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

In line with our commitment in supporting the United Nation's Sustainable Development Goals in promoting good health and wellbeing, building sustainable cities and communities and taking measures to address Climate Action, we aim to minimise disruption to the environment and its adverse impact to our community by reducing the environmental footprint of our buildings and to efficiently manage the use of energy, water and resources.

Focus For The Year

1
Strategising the way forward in support of the Climate Change Agenda
2
Assessing our readiness towards reporting on the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations
3
Stepping up efforts to achieve 100% elimination of single-use plastic at MOKL Hotel

Our Material Matters

We are committed to supporting the transition to a clean and energy-efficient economy. Our approach to Climate Change supports the transition to a cleaner, more energy-efficient and sustainable global economy that is conscious of its use of limited natural resources.

GREENHOUSE GAS EMISSION

We embrace our responsibility to understand and manage our carbon footprint and we monitor our carbon emission and track our progress via our 5-Year Roadmap based on:

In support of the climate change agenda, we collaborated with PETRONAS and conducted a workshop on Net Zero Carbon Emission (NZCE) to better understand the technicality involved in moving towards NZCE. We are looking into setting up a task force that will further assess, identify the boundary, sources of our emission, the baseline as well as the various options and technology available in reducing our GHG emission and subsequently propose the way forward for the Group.

EFFICIENT ENERGY MANAGEMENT

As one of the main sustainability agenda and pillar to our effort in reducing our carbon footprint, we continue to implement energy efficient initiatives throughout our business operations to optimise energy consumption towards overall reduction.

Our overall energy consumption during the year increased 15.3% from 88,531 kWh in 2020 to 102,073 kWh in 2021. This was due to the increase in operational activities with the reopening of our hotel and retail businesses.

Initiatives and Performance

RENEWABLE ENERGY

Reducing our environmental impact is vital to both the Group and our customers. We take a practical approach in managing natural resources which include promoting the use of renewable energy at our mall.

At Suria KLCC, the photovoltaic system, located at the rooftop has contributed to the mall’s electricity saving of approximately 16.8 million kWh since 2014, equivalent to a total saving of RM1.8 million. This in turn, equates to a GHG emission reduction of approximately 360,000 kg of carbon dioxide (CO2) per year.

Our mission focuses on providing the highest quality commercial office space while bringing responsible environmental solutions and innovative energy saving strategies to our tenants and the communities where we operate. We know a cleaner future cannot be delayed, thus our commitment to reduce waste, save energy, and manage our resources responsibly across our portfolios.

WATER MANAGEMENT

The solutions we have implemented today for water resource protection and waste management will benefit the long-term health and wellbeing of our employees, tenants and our communities. Our water consumption is relatively low compared with other industries. Our primary use is in our office buildings, retail malls and hotel facility, where we use it for drinking, sanitation, and food preparation. We have in place various initiatives that support our goal of monitoring and minimizing the amount of water we consume across our operations. Weassess water consumption and installations and make site-specific recommendations for water efficiency improvements.

During the year, we achieved a reduction of 27% in water usage, contributed by the ongoing water reduction initiatives as well as the reduced occupancy due to the prolonged lockdown.

Initiatives and Performance

WASTE MANAGEMENT

The waste we produce is in the form of our disposal of construction waste during the development and renovation of our buildings. Municipal waste produced during operations from our buildings by users and occupants, which include domestic and hazardous waste make up the balance of waste we produce. We are continuing our effort to reduce waste and reuse resources.

Where our services require us to handle hazardous waste, we dispose them responsibly, without risk to our people, the environment or local communities. We continue to encourage our people to minimise their waste through various initiatives, by minimising printing and optimising use of consumables.

Initiatives and Performance

RESPONSIBLE MATERIAL USE

At KLCCP Stapled Group we promote sustainable consumption by optimising the use of environmentally friendly products throughout our operations.

What we buy and where we buy it matters at every level of our supply chain - from the operations team, the contractors on site to our suppliers producing the materials. We take a thorough approach to sourcing sustainable materials as we have the responsibility in minimising the adverse effect, not only to the environment but also to our people and the community.

This includes environmental and ethical sourcing of eco-friendly products that are safe, non-toxic and biodegradable. Our HSE team is monitoring all chemical usage through permit system prior to work commencement in ensuring eco-friendly products are used in the maintenance works at our premises.

Initiatives and Performance

Case Highlight

People

PROGRESSING OUR SOCIAL AGENDA

5-Year Sustainability Roadmap (2019-2023)

Goal 2: Building an Agile, Inclusive and Sustainable Workforce in a VUCA (Volatility, Uncertainty, Complexity and Ambiguity) World

OUR PEOPLE

The Group’s business strategy relies on teams who are engaged, skilled and passionate about what they do. Our culture of accountability and business sustainability plays an important role in achieving this.

Purpose-driven leadership is about creating a safe, diverse and inclusive environment where our employees are treated fairly and with respect and are empowered to succeed and grow.

Our Approach

Our people are integral to our business and our success. Our ability to attract and retain a diverse workforce, characterized by equal opportunities and prospects for advancement, is fundamental to our ability to operate.

We recognise that workforce expectations have evolved considerably over the past years and will continue to do so. Today’s talents are looking for growth, opportunities to shine, variety, flexibility, mobility and security. Increasingly, people want to work for a company that is purpose-driven and where they can add value to society.

Our strategy aims to prepare our Group the evolving expectations of future generations of employees. The new flexible ways of working including remote working, will have an important impact on working processes, knowledge retention and succession planning for the Group, and our strategy reflects this.

Our talent management is based on promoting performance management, leadership development, succession planning and employee capability building. It is implemented at all levels of the organisation in partnership with our leaders, business managers and operation teams, to support our business priorities and growth strategy.

Focus For The Year

1
Building an inclusive, agile and empowered workforce through a culture of accountability
2
Retooling our people with the right capabilities to deliver new value
3
Fostering employee engagement and work-life integration

Our Material Matters

Advancing our culture of inclusion and belonging continues to be a priority and in 2021 we took significant steps to strengthen our approach and enhance our strategy. We are committed to a culture in which everyone has access to opportunities that support their development and in which everyone can reach their potential without barriers. Furthermore, we recognise that the diversity of our workforce, including the different skills, mindsets, knowledge and experience of our employees, give us a better understanding of our stakeholder’s expectations. Ensuring our environment is one where everyone feels they belong and can bring their potential to the fullest will drive our collective ability to innovate and deliver cutting-edge ideas, products and services to all our stakeholders.

Equal opportunities for women remain a key focus for the Group. We recognize the positive impact of gender diversity on the performance of teams and the business. Therefore, increasing female representation in leadership supports our business strategy. In 2021, women accounted for 39% of our total workforce and 59% of our senior management. We conscientiously took into consideration the diversity of our workforce in our new hires. The year also saw a higher female new hires for the Group at 54.9%. Women representation in the Boards increased to 56% in line with the Board Diversity Policy which seek to ensure that the mix and profiles of our Board members, in terms of age, ethnicity and gender, provide the necessary range of perspectives, experiences and expertise required to achieve effective stewardship and management.

By providing training and development opportunities to our employees, we not only support them to grow as individuals and team members; we also maintain our high-performance culture. We use targeted qualification and development measures for our employees to enhance their skillsets and know-how within the business and operations and safeguard our commercial success.

Our intention is to provide our employees across the Group with the development opportunities they need with regard to their technical and personal skills. This enables us to retain talents over the long-term and prepare them for their future roles.

During the year, we continue to promote e-learning to equip our people with essential and important skillsets for them to be able to function in today’s world and to adapt to the new ways of working. We have identified the relevant areas of learning with digital know-how, based on their area of expertise, Cyber Security, Mural and Power Bi.

Training Programmes For The Year

Talent development is part of our HR strategy and is implemented at all organisational levels. We tailor our talent development programs to suit business needs and employee expectations, ensuring that our highly skilled and engaged talents are equipped to meet the needs of our stakeholders.

Leadership development was also given an emphasis by the Group through its building of internal talents to prepare them for leadership roles. The focus for 2021 was on high performers of junior to mid-level with high potential to become future leaders in the Group with the introduction of the KLCC Group Emerging Leadership Programme (KELPro 2.0). The talents are subjected to a long-term program to prepare them for future leadership roles.

The Group continued to provide programmes to prepare leaders into their leadership roles with programme such as the Personal Leadership Program (PLP) in collaboration with PETRONAS Leadership Centre (PLC). During the year, six talents completed the talent review while 25 talents graduated from the Professional Excellence (PE) module in KELPro programme.

The year also saw the implementation of myCareerX migration from the existing myPASSPORT platform for better talent management experience. myCareerX is an online all-in- one HR platform where employees are empowered to drive their own development and to complete their daily HR-related activities.

The well-being of our employees is reflective of how happy and healthy they are at the workplace. By engaging them in our business, we inspire them to greater commitment, and motivate them to perform productively and efficiently. We continued to maintain consistent employee engagement during these challenging times by putting our people first as we focused on their health and emotional wellbeing and matters of their needs and concerns.

Engagements For The Year

We provide a wealth of resources designed to raise awareness of wellbeing, reduce the stigma of mental health and encourage open, honest conversations. A key message for employees throughout the pandemic has been that their health and wellbeing remain the Group’s utmost priority and this has been complemented by offering advice to employees on how to reach out for assistance. Giving greater emphasis to this issue, the Group carried out the mental wellbeing survey in September 2021 to gauge employees’ wellbeing and mental wellness and to establish the appropriate intervention programme to improve employees’ wellness.

Initiatives For The Year

The immediate priority at the start of the COVID-19 outbreak was to ensure the health, safety and wellbeing of our people. We were quick to move to a working from home model and the investments that we made into technology over the past years to facilitate flexible working enabled us to transition rapidly with minimal disruption to day-to-day operations. Throughout the pandemic we have been able to use these technologies to keep in close contact with employees and encourage team interaction to ensure our people feel connected and supported. We also introduced the flex wear or smart casual dress code in September 2021 to provide a positive flexible and inclusive workspace environment.

The Group is keenly aware of the health concerns and economic uncertainty weighing on the entire community. Whilst many organisations continue to lay off their employees during this uncertain economic period, the Group places our people at the heart of the organisation and it is through them that we live up to our purpose and values.

As we face the personal and professional challenges of the day, the Group is committed to doing all it can to alleviate concerns about income or job stability. To that end, the Group continues to practice no COVID-19 related layoffs for all employees. We assured our people of their job security and there was also no salary cut despite the challenging business environment.

The Group continued providing health and welfare benefits during this period which allowed employees to care for themselves and their families as we look to support the nation more effectively towards recovery.

HUMAN RIGHTS AND LABOUR PRACTICES

As a responsible business we are committed to generating mutual stakeholder benefits and ensuring that we do not infringe on the human rights of others. We recognise that our employees are crucial to the on-going success of the business and to how the Group is regarded by the wider market. Furthermore, we believe that all employees should be treated fairly and with respect.

Whilst we recognise that the Government has the primary responsibility to protect and support human rights, we also embrace the important role we play as a business. Within all our business activities and partnerships, we are dedicated to considering our social and environmental impact and addressing any human rights issues.

Our Approach

As an equal opportunities’ employer, we strive to treat everyone fairly, as entrenched in our Code of Conduct and Business Ethics (CoBE), which sets out the requirements that protect people against discrimination in our workplace.

Focus For The Year

1
Building an inclusive, agile and empowered workforce through a culture of accountability
2
Retooling our people with the right capabilities to deliver new value
3
Fostering employee engagement and work-life integration

Our Material Matters

The Group expects everyone working with us or on our behalf to abide by the Malaysian Labour Laws, which include the Employment Act 1955, Trade Union Act 1959 and Industrial relations Act 1967 amongst others. The Group has a zero-tolerance approach to modern slavery and child labour in our organisation or our supply chains.

The prevention, detection and reporting of modern slavery or child labour in any part of our organisation or supply chain is the responsibility of all those working for us or on our behalf. As part of our contracting processes, we reserve the right to terminate our relationships with suppliers and other organisations working on our behalf if they do not comply with the Labour Standards.

All suppliers, contractors or business partners of the Group are required to comply with our Supplier Code of Conduct, which sets out our expectations for the treatment of workers and how suppliers are required to behave.

The Group values and respects individual differences. We believe in creating an environment where our teams feel they are valued; where they can bring their differences to work each day and where they feel able to make their own unique contribution. We believe everyone deserves the right to be treated equally throughout their employment with us and should not be discriminated against because of their differences. The Group is committed to treating all its employees and potential employees equally based on merit and ability to do the job without being improperly influenced by untoward factors.

The Group has in place its Code of Conduct and Business Ethics which details the steps taken should an employee believe that their equality rights may have been breached. If an employee feels that an attempt at informal resolution is inappropriate given the seriousness of their complaint or if informal attempts have failed or been unsatisfactory, then a formal complaint may be made to the HR Careline. A HR representative will ensure an investigation is carried out as quickly as possible (depending upon the individual nature of the complaint and the availability of those allegedly involved to be interviewed). If the findings disclose evidence of a possible disciplinary offence, then disciplinary proceedings will be commenced in accordance with our disciplinary policy. All members of the HR department have received appropriate training in resolving equal opportunities and dignity at work issues. They will deal with any grievances raised with them under this policy in the strictest confidence.

SECURITY, SAFETY AND HEALTH

We have comprehensive Security, Safety and Health management system and processes in place to ensure to the best of our ability and in line with industry best practice, the health, safety and security of anyone visiting our assets. We are fully committed to consistently achieving the highest standards of health and safety management and performance and our record in this area is exemplary.

Our Approach

We provide healthy, safe and secure places for our stakeholders to live, work, shop and play, recognising that we can only achieve this through close collaboration with our people, business partners, including our supply chain and enforcing authorities. Our business activities are conducted in accordance with our KLCC HSE Policy and comply with the highest standards of occupational safety and health regulations. This is supported by our HSE Management System (HSEMS), HSE Mandatory Control Framework (MCF) and PETRONAS Technical Standards to strengthen HSE Governance within the KLCCP Stapled Group while providing clear requirements on operational safety, environment and health for consistent and effective implementation.

We have also taken the opportunity to embrace innovative construction methods, to realise the full potential of health and safety benefits. This relates to both key design principles and on-site construction risks. We work with design teams to ensure our developments maximise desired operational outcomes while achieving our vision of providing healthy, safe and secure places.

Focus For The Year

1
Shaping a Generative HSSE Culture
2
Security Management with comprehensive security and surveillance
3
COVID-19 preparedness and compliance to Standard Operating Procedures (SOPs)

Our Material Matters

At KLCCP Stapled Group, the safety and well-being of people is deeply rooted within our HSSE strategy and management activities and is strengthened by the Group’s HSSE culture which aims to create greater transparency and awareness. With our aspiration to accelerate the Generative HSSE Culture, we continued to drive efforts towards values, attitudes, goals and proficiency of the organisation’s health and safety. With the aim to promote transparency and mindfulness in all HSE areas based on the Culture Maturity Survey 2021, we obtained a score of 4.05 at Proactive Level. This demonstrates our resilience in maintaining good HSE practices in every aspect of our work and operations. It sees us prioritising and implementing very high safety standards, as well as making an effort to exceed them by going beyond.

Initiatives and Performance

Leadership Engagement on HSSE Generative Culture
  • Five members of the Group’s Leadership Team attended the HSSE Generative Culture Leadership Training while 30 participants, involving the frontliners attended the Rakan HSE programme.
  • Continued our intervention programmes and extended it further during the COVID-19 pandemic to inculcate the Generative HSSE Culture under the “Jom Patuh dan Tegur” or “Let’s Comply and Intervene” initiative.
HSE Training and Webinars Training and webinar sessions with business units facilitated by the HSE team covering the following areas:
  • KLCC Tier 1 Tabletop Exercise
  • Generative HSSE Culture e-Learning Series
  • KLCC Parking Management HSE Upskilling Training
  • First Line Functional HSE Assurance
  • PETRONAS Rakan HSSE
  • Managing Mental Wellbeing at Work during COVID-19 Pandemic
  • Preparing KLCC Verifier for COVID-19 Self-Test Training
  • COVID-19 Immunisation Webinar; Let's Achieve the Herd Immunity
HSE Walkabouts and Assessments
  • Presentation of Chemical Health Risk Assessment for PETRONAS Twin Towers and Menara 3
  • HSE Walkabout at KLCC Precinct and at Project Sites
  • Noise Risk Assessment (NRA) conducted for PETRONAS Twin Towers
Digital HSSE at KLCC
  • Leverage the PETRONAS’ myHSSE digital platform that serves as our e-reporting platform for HSSE digital solutions.
COVID-19 Management and Communication
  • Establishment of KLCC Pandemic and Preparedness Response Team (KPRT) in 2020 to ensure continued efforts to steer KLCC preparedness and response on COVID-19 matters to provide support and guide to our operational and strategic activities.
  • Acceleration of the vaccination drive for the organisation through the MYMedic@Wilayah Vaccine Mobile Truck Program in collaboration with the Ministry of Federal Territories.
  • Monitored and tracked the COVID-19 cases of employees and service providers across the Group via an interactive Power Bi real-time dashboard.
  • Engagements and collaborations between HSSE and experts in emergency and crisis and the medical field, as well as the activation of all safety measures by our Operation and Maintenance team from the Facilities Management at our offices, hotel and retail.

Having a comprehensive security and surveillance system is essential to protect the iconic PETRONAS Twin Towers, maintaining an open and free access for visitors and controlling security incidents impacting our buildings within the precinct. During the year, we enchanced the security model for the KLCC Precinct with heavy reliance on digital technology.

In ensuring healthy and conducive working environment for our tenants particularly upon their return to offices, one of the areas of emphasis for the year was indoor air quality. In respect to this, our Facilities Management performed a comprehensive review of our buildings’ Heating, Ventilation, and Air Conditioning (HVAC) system.

We took a concerted effort in ensuring the air quality in our buildings is in compliance with Section 18 of Occupational Safety and Health Administration (OSHA) and we are proud to note that all our offices’ ventilation and air quality are meeting the World Health Organisation (WHO) and other relevant standards.

Initiatives For The Year

Case Study

Health, Security, Safety and Environment (HSSE) Maturity Survey 2018 in Collaboration with GHSSE PETRONAS

The PETRONAS Group is working towards a step change improvement in HSSE and it is perceived that behavioral and cultural issues need to be addressed to achieve this improvement

Peace

EMBODYING GOOD GOVERNANCE

At the core of everything we do, and the way that we do it, lies our commitment to the highest standards of governance excellence. It is not enough for us to deliver world class assets; we must do so while upholding standards of integrity and ensuring risks are managed at acceptable levels.

Our Approach

We have a strong corporate governance framework, reflecting our commitment to safeguarding the interests of our stakeholders. The corporate governance framework comprise the governing bodies, the corporate governance policies and procedures that define the competencies of the governing bodies and other corporate governance rules, in line with regulations and best practice standards.

Sound corporate governance is implicit in our values, culture, processes, functions and organisational structure. Our values require that directors and employees behave with integrity, displaying consistent and uncompromised moral strength in order to promote and maintain trust.

We have a strong culture of entrenched values, which form the cornerstone of our behaviour towards stakeholders and against which we measure practices and activities to assess the characteristics of good governance. Directors and employees are required to conduct themselves with integrity, consistently and uncompromisingly displaying moral strength and behaviour that promotes trust.

This commitment to good corporate governance is reflected in the CoBE, our foundation in fulfilling our business obligations with utmost integrity and transparency. Our culture of openness, transparency and accountability are strengthened with the adoption of the No Gift Policy and Whistle Blowing Policy and our adherence to the Anti- Bribery and Corruption Policy and Guidelines (ABC manual).

In managing the risk, the Group has a robust KLCC Resiliency Model which provides an integrated view on our overall strategy in managing risks.

Focus For The Year

1
Establishment of the Board Risk Committee to provide oversight on Risk Management, ESG compliance and sustainability matters
2
Reconstitution of Boards composition to strongly reflect the strategic priorities of the business
3
Communication and upskilling on Anti-Bribery Management System (ABMS)

Our Material Matters

CORPORATE GOVERNANCE AND COMPLIANCE

At the highest governance level, the Boards has the ultimate responsibility to monitor that the Group is operating as a responsible organisation. This includes considerations around climate-related risks and opportunities when reviewing the group’s strategy.

Principal and emerging risks are identified through robust Assessments by the Boards and its various subcommittees. The Boards recognize that a balanced board is vital for sustainable value creation and that competency skills are adequately represented within the Board Committees. The Boards composition is both qualitatively and quantitatively balanced in terms of skills, gender, experience, tenure and independence. The Boards regularly review its own effectiveness and undertakes a formal evaluation of its performance and that of its committees and individual directors once in three years.

BUSINESS ETHICS, INTEGRITY AND CORRUPTION MANAGEMENT

KLCCP Stapled Group’s continuous effort in managing integrity risk within the organisation reflects our commitment to conduct business with high integrity and in support of the Group’s zero tolerance against all forms of bribery and corruption.

KLCCP Stapled Group adopts a zero-tolerance towards bribery and corruption by our Board of Directors, management, employees and vendors and we are committed to acting professionally with integrity in our business.

The Group has the responsibility to ensure that the anti-bribery management system, policies and practices are understood by all group levels and communicated through the various internal communication channels and training sessions. During the year, we reinforced our zero tolerance to bribery and corruption commitment and continued to upskill our people through relevant trainings. We underwent a Surveillance Audit by SIRIM QAS International Sdn Bhd to evaluate on our continued compliance of the Group's management system to the required standards. We will undergo a recertification audit in 2023.

CYBERSECURITY AND DATA PRIVACY

The KLCC Group ICT cybersecurity is responsible to govern and manage cybersecurity of the KLCC Group which encompasses ownership, responsibility, and accountability for assessing, controlling and mitigating risks. The team works very closely with PETRONAS Digital and leveraging on PETRONAS cybersecurity expertise and guidance to manage, monitor and mitigate all matters or issues pertaining to cybersecurity.

Our cybersecurity efforts are guided by PETRONAS Enterprise Cyber Security Governance Framework, which aims to protect our systems and data from malicious attacks. The PETRONAS Cyber Security Governance oversees the Enterprise CyberSecurity Governance Framework, which defines the guidelines, standards, boundaries and procedures required to ensure our cybersecurity risks are effectively managed and mitigated. In 2020, we developed The Cyber Security Action Plan in our effort to mitigate cybersecurity crime and to strengthen the existing system and procedures to address the root causes of cybersecurity issues resulting from poor enforcement, weak internal control and acceptance culture.

Initiatives and Performance

Risk management is an integral part of KLCCP Stapled Group’s business at both strategic and operational levels. An effective and sound risk management system is important for KLCCP Stapled Group to achieve its business strategies and objectives. KLCCP Stapled Group has an established KLCC Group Enterprise Risk Management Governance Framework which outlines the risk policy, risk governance and structure, risk measurement and risk operations and system.

The Risk Management Oversight Structure which consists of the Boards, Audit Committee, (“ACs”), and the Management represented by Risk Management Committee (“RMC”) and Top Management. The structure used to assign responsibility for risk management and facilitates the process for assessing and communicating risk issues from operational levels to the Boards. KLCCP and KLCCRM Boards developed the KLCC Resiliency Model to provide an integrated view on the overall strategy for managing risk focusing on the three key areas.

Initiatives and Performance

Corporate Governance & Compliance

We take pride and place importance on strong governance culture and implement international best practices across the business segments. We strictly conform to the respective laws, rules and regulations in the country where we operate.

We incorporate elements of sustainability recognising the responsibilities to our stakeholders and acknowledging that the organisation should play an important role in contributing towards the welfare of the community.

We also acknowledge the need to safeguard and minimise the impact to the environment in achieving our objectives. Our good corporate governance reflects our commitment to economic support for longer term sustainability with a focus on the positive impact on the environment, community and society

Business Ethics & Integrity

We are committed to conducting business with integrity, consistent with high standards and business practices and in compliance with all applicable laws and regulatory requirements.

KLCCP Stapled Group adopts and complies with the PETRONAS Code of Conduct and Business Ethics (CoBE) which is embedded throughout our organisation and form the basis for all our policies, procedures, and actions, as well as the personal behavior of our stakeholders.

KLCCP Stapled Group adopts the PETRONAS Anti-Bribery and Corruption (ABC) Manual and has zero tolerance for all forms of bribery and corruption and complies to a No Gift Policy. We also adopt the PETRONAS Whistleblowing Policy which encourages openness and transparency in our commitment to the highest standard of integrity and accountability.

Initiatives and Performance

  • Asset Declaration and Gift Register was put in force where employees devlared their assets to the organisation to ensure management and employees do not abuse their power for personel gain or acquire assets through unlawful means of dealings
  • Rollout of the Anti-Bribery Corruption Manual across all employees to serve as a reminder to all employees to maintain the highest standards of integrity at work and in all business dealings
  • KLCC Group Integrity Action Plan was developed to manage integrity risk and ensure all employees are fully commited to conducting business with integrity and champion our stand on Zero Tolorance against all forms of bribery and corruption
  • Undertook the Ikrar Bebas Rasuah (CorruptionFree Pledge) in collaboration with the Malaysian Anti-Corruption Commision (MACC) involving our Management Leadership Team
  • Established Declaration of Conflict of Interest as an avenue for employees to declare a situation of conflict of interest

Risk Management

KLCCP Stapled Group has an established Enterprise Risk Management Framework which outlines the risk policy, risk governance and structure, risk measurement and risk operations and system for the Group. The Risk Management Oversight Structure which consists of the Boards, Audit Committees, Management Committee and Risk Management Committee sets out the structure used to assign responsibility for risk management and facilitates the process for assessing and communicating risk issues from operational levels to the Boards.

Our Boards developed an integrated robust risk management system for business resiliency focusing on three key areas i.e. Enterprise Risk Management, Crisis Management and Business Continuity Management.

KLCC