Page 87 - KWAP_Integrated-Report_2023

ENRICHING PERFORMANCE AND COMMITMENTS ENRICHING ACCOUNTABILITY AND INTEGRITY ENRICHING RESILIENCE AND SUSTAINABLE GROWTH OTHER INFORMATION

Our absolute financed emission is 6,365,134.51 tCO e on
2
our base year. KWAP’s lending portfolio has exposure to Voting at AGMs/EGMs
emissions from four out of seven relevant asset classes
based on global gHg Accounting and Reporting Standard. 20
These emissions pertain to our exposure totaling up to
RM145.04 billion and represents 100% of KWAP’s lending
and investment portfolio. 1
SHAREHOLDER ACtIVISM AND StEWARDSHIP
107
We engage proactively with investee companies on AgM
ESg issues, using proxy voting and active ownership EgM
to influence outcomes. Our approach, grounded in
transparency, accountability and continuous improvement, 2. Company Engagement
demonstrates our commitment to responsible investing.
This aligns with our focus on the long-term financial health In December 2023, KWAP’s officers have attended
the Texas and New York Research Tour conducted by
of our beneficiaries and societal well-being. Through Daiwa and engaged with 17 companies to get insights
direct engagement and proxy voting, we urge companies on their financial and ESg progress.
to enhance their disclosures and address sustainability
challenges and opportunities. Based on our overall observation, we have identified the
following key ESg takeaways during the engagement:
In 2023, we actively exercise our voting rights at Annual
general Meetings (AgMs) and Extraordinary general a. Environmental
Meetings (EgMs). We submitted 127 resolutions to investee Most of the companies have established climate
companies and voted in line with KWAP’s published Voting targets, in line with Science Based Targets
guidelines. initiative. Additionally, the reduction plans for the
companies include waste management, obtain
To address specific issues with the investee companies, we green building certification and sourced their
initiate targeted discussions, focusing on their governance owned-site energy from renewable energy.
and strategic initiatives through:
b. Social
1. Voting at AGMs/EGMs
The focus area for Social is mostly on Diversity,
KWAP recognises the immense responsibility that Equity and Inclusion initiative which includes:
accompanies our influential role in the investment
landscape. As a conscientious investor, we engage • Diversifying their key leadership team to have
with investee companies ensuring their continuous more non-white people on board.
enhancement in ESg practices and performance. • Closing the salary gap between male and
These engagements are led by the respective female to ensure equitable pay between both
management teams through Annual general Meetings/ genders.
Extraordinary general Meetings (AgMs/EgMs) and • Sourcing or funding Black/Asian/Hispanic
one-on-one meetings. owned businesses

1 More details on KWAP’s sustainability efforts can be found in our Sustainability Report 2023 available on our website at kwap.gov.my.

85