Together, Looking Beyond
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THETOGETHER, LOOKINGPLACE BEYOND KLCCP STAPLED GROUP SUSTAINABILITY REPORT 2020 INSIDE THIS THE PLACE REPORT TOGETHER, LOOKING BEYOND ABOUT THIS REPORT PROSPERITY OUR PEOPLE Advancing Economic Resilience 56 Our Approach 34 Our Approach 56 Equality, Diversity and Inclusion In our journey to look towards a better tomorrow, we needed to KEY MESSAGE 34 Financial Sustainability 57 Women Empowerment come together and reflect. Reflect on our purpose and where we are 35 Economic, Social and Industry Growth 3 Sustainability Steering Committee today in delivering our commitments. - Embracing A Digital Future 57 Skills and Capability Development Co-Chairman’s Message - Commitment to Capital Market 59 Talent Management Reflecting on the essence of partnership, we continued Development 60 Workforce Engagement , - Promoting Industry Growth constant communication with all stakeholders 61 Job Security placing business continuity and the safety of our people at the forefront. OUR BUSINESS through Affiliations 62 New Ways of Working We recognised our responsibilities beyond our own spaces and remained 4 We Are KLCCP Stapled Group 62 Human Rights and Labour Practices , PLANET committed towards supporting our stakeholders 6 Our Investment Proposition keeping our customers connected and our community safe. Protecting Our Environment - Responsible Employment 40 Our Approach - Non-Discrimination Reflecting on delivering unique lifestyle choices, we continued our 40 Climate Change SUSTAINABILITY @ KLCC focus on redefining customer experience to meet - Our Climate Change Journey RELIABLE PARTNER the needs of the evolving trends and our customers’ and guests’ lifestyles. 8 Our Sustainability Strategy and - Greenhouse Gas Emission 64 Our Approach In providing a seamless digital experience for our people and our community, Approach - Efficient Energy Management 64 Supply Chain Management we accelerated our digital journey through enhanced 9 Our Reporting Journey and - Renewable Energy digital infrastructure and innovative solutions in shaping our digital future. Milestones - Food Safety and Quality 11 Governance Structure 43 Environmental Management 66 Customer and Tenant Management Reflecting on the essence of dedication and commitment, 12 Sustainability Framework - Water Management 69 Corporate Social Investment we continued to enrich and inspire our people in order to stay competitive and 13 Material Matters 2020 - Waste Management relevant in our quest towards becoming an empowered and agile workforce and 16 Stakeholder Management - Responsible Material Use PEACE above all, we acknowledged our frontliners who are our heroes, who relentlessly 22 Our Strategic Value Creation - Biodiversity Embodying Good Governance carried out their responsibilities in ensuring the health and safety of our people 72 Our Approach and that of our community are protected. 72 Corporate Governance and PEOPLE AND PARTNERSHIP Business Ethics 2020 IN FOCUS Progressing Our Social Agenda The harsh and trying times was a test to our resiliency and perseverance - Anti-Bribery Management SECURITY, SAFETY AND HEALTH but we are moving to evolve and adapt to the needs of the environment, 24 Progress To Date Systems create vibrant and inspiring spaces for our community and 25 Towards Supporting the United 50 Our Approach 73 Risk and Crisis Management deliver long-term sustainable value to our stakeholders. Nation’s 2030 Agenda of 5Ps 51 Safety and Health Management - Enterprise Risk Management 27 Measuring Progress in Pursuing 53 Security Management - Crisis Management Together, looking beyond. Sustainability Goals - Business Continuity 54 Cyber Security and Data Privacy 30 Awards and Accolades Management 31 Sustainability Key Highlights - Integrated Assurance SUSTAINABILITY PERFORMANCE DATA Cover image: View of Tower 1 from the observation deck at Level 86, Tower 2, PETRONAS Twin Towers SUSTAINABILITY STEERING COMMITTEE ABOUT THIS CO-CHAIRMAN’S MESSAGE REPORT The year 2020 started off on quite a different note than usual and at KLCCP Stapled Group, it was a time We are pleased to share our sustainability report which of many adjustments. Despite the need to adjust to communicates our value creation efforts to our stakeholders different circumstances, we continued to operate albeit addressing matters that are most material to them as Working From Home and essential services operating under well as our business. The Group’s sustainability journey is the new normal. detailed herein with insights into our performance on the As we continuously improve our sustainability practices, we Economic, Environment and Social (EES) aspects of our constantly benchmark against top real estate players and corporates with good sustainability practices, both locally Group’s operations. and globally. To further enhance our ESG communications, we subscribed to ESG World, an online platform, accessible from our website, which allows investors easy access to our SCOPE AND BOUNDARY THE REAL ESTATE LANDSCAPE ESG data to help them in their investment decisions. As a constituent of the FTSE4 Good Bursa Malaysia Index, we will continue to seek greater levels of transparency in reporting Our scope of reporting in the KLCCP Stapled The domino effect of the COVID-19 outbreak which created widespread panic and communicating our ESG practices to our stakeholders Group’s Sustainability Report 2020 underlines our due to lockdowns, drop in oil prices, cautious consumer spending and elevated worldwide. Annuar Marzuki Abdul Aziz Zalina Ibrahim sustainability performance as well as its strategies unemployment rate have hit the real estate market hard. Among the most Head, Strategy, Finance and Head, Health, Safety and Environment and practices, while highlighting the EES impacts of impacted were the hotel and retail industries as movement and travel restrictions Investor Relations During the pandemic we also reached out to the needy our business activities. Our scope of reporting for the were imposed coupled with borders closure. Whilst companies were cutting costs communities and extended support to the frontliners who tirelessly carried out their duties as well as employees who year covers all of KLCCP Stapled Group’s operations and downsizing, retail tenants were seeking rental assistance and hotel operators As the saying goes, “Sustainability is the New Normal”. Countries all over the were affected by the pandemic. We contributed to University world are pledging for greener environment with companies re-focusing on green in Malaysia comprising office, retail and hotel assets had to succumb to a price war and operate at minimal capacity. Malaya Medical Centre who needed equipment to treat economy while ensuring business resiliency amidst the global health crisis, economic as well as our operations in facility management and COVID-19 patients, collaborated with Komuniti Tukang Jahit, a volatility, climate change risk, infringement in business ethics and integrity as well as social enterprise, working for the benefit of the lower income car parking management. The scope is in accordance The year 2020 was indeed a tough and challenging year where businesses the changing consumer behaviour and expectations. with the reporting scope of our Integrated Annual faced a never before experienced economic catastrophe and for the real estate group through the purchase of batik face masks and supporting our retail tenants by providing tenant assistance to help them Report. and construction sector, the pandemic brought about adverse market instability, While business continuity is crucial, at KLCCP Stapled Group, the health and safety of in their recovery and preserve business continuity. We also our people took priority during this time. Our immediate response to the crisis was domestically and globally. The office segment faced downward pressure as put in place safety measures according to the COVID-19 SOPs the activation of our business continuity plan and the setting up of the KLCC Pandemic PERIOD OF REPORTING demand was affected by the changes in working mode where working from home in all our premises to provide the safest possible environment Preparedness and Response Team (KPRT) who played a pivotal role in implementing for our employees, tenants, shoppers and guests. is now the norm. For the retail industry, the pandemic brought unprecedented the Group’s pandemic preparedness plan — reaching out to all employees working This report is based on KLCCP Stapled Group’s uncertainty and changes to the industry. While some retailers thrived, some were from home or working in the office on health management, keeping employees Despite the tough environment with many events postponed financial year from 1 January to 31 December 2020. struggling with rentals due to lockdowns and cautious consumer sentiment. connected and informed of the latest development on the pandemic and ensuring a or conducted virtually, it was also a year that witnessed Meanwhile, the hotel segment faced uncharted challenges with hotels shut or safe work environment for all. KLCCP Stapled Group receiving outstanding awards and GUIDELINES AND STANDARDS operating at a severely reduced capacity and further impacted by borders closure. recognition for our ESG practices, both locally and globally, Despite the challenging environment, we continued to progress our sustainability notably the Platinum Award for Excellence in Environmental, journey, pursuing our goals in the economic, environment and social spheres and Social and Governance (ESG) at The Asset ESG Corporate