EXTENDING IMPACT SUSTAINABILITY REPORT 2020 In 2020, we further embedded sustainable practices into our operations. While we continued to operate in uncertain times, our resilience led us to strengthening our sustainability efforts. In EXTENDING IMPACT, we advocated wise stewardship of natural resources, fostered sustainable economic development, and promoted responsible business practices throughout Kumpulan Perangsang Selangor Berhad (“KPS“ or “the Company“ or “the Group“). Sustainable development is an ongoing corporate agenda. Everyone in KPS shares the responsibility to effectively integrate, manage, and balance the four dimensions of sustainable development: Economic, Environmental, Social, and Governance (“EESG”). Our sustainability action plans, goals and targets are focussed on the critical importance of the 5Ps: People, Planet, Prosperity, Peace, and Partnership: PEOPLE: strengthening and enhancing multi-stakeholder engagement efforts; PLANET: reducing the use of natural resources by improving energy efficiency and effective waste management practices; PROSPERITY: adding value to society by creating employment, rewarding shareholders and investors, infusing incremental and architectural ideation into our organisational DNA, and fulfilling tax obligations to foster national economic growth and development; PEACE: fostering composure to handle conflicts, to stand by the rule of law and adhere to human rights with zero tolerance of bribery, corruption and violence. These values support nation-building activities to foster harmony in life; and PARTNERSHIP: building and strengthening dynamic partnerships with organisations and associates that share similar values, visions, and sustainable development goals. FEATURE IN THIS SUSTAINABILITY REPORT 2020 Get access to the soft copy of our reports, videos and contact information Download the “QR Code Reader” Run the QR Code Reader app and on App Store or Google Play point your camera to the QR Code Scan this to view our Sustainability Report online. The Annual Report, financial and other information about Kumpulan Perangsang Selangor Berhad can also be found at www.kps.com.my CAUTIONARY STATEMENT KPS makes no representation or warranty, whether expressed or implied, as to the accuracy or completeness of the facts highlighted in this Report, disclaiming responsibility from any liability that might arise from the reliance on its contents. This Report may contain “forward-looking statements”. Forward-looking statements involve inherent risks and uncertainties and other factors that are in many cases beyond our control. Although KPS believes that the expectations of its Management as reflected by such forward-looking statements are reasonable based on current information, no assurance can be given that such expectations will prove to have been correct. Should one or more of the risks and uncertainties materialise, actual results may vary materially from those anticipated or projected. Accordingly, readers are cautioned not to place undue reliance on such forward-looking statements. In any event, these statements speak only as of their dates and we undertake no obligation to update or revise any of them, whether as a result of new information, future events, or otherwise. SUSTAINABILITY PHILOSOPHY & MISSION [GRI 102-16] In pursuit of the Economic, Environmental, Social and Governance ("EESG") expectations of our stakeholders, by pursuing responsible and sustainable corporate practices. 02 04 Upholding the Limiting the highest standards negative impact of governance and of our business on ethics. 03 the environment. 05 01 Building and Promoting maintaining strong Aiming to be sustainable relationships with a responsible business practices. stakeholders. corporate citizen. INSIDE THIS REPORT 1 SUSTAINABILITY PHILOSOPHY & MISSION [GRI 102-16] 106 ENVIRONMENT KEY HIGHLIGHTS 109 ENVIRONMENTAL STEWARDSHIP 4 MESSAGE FROM THE MANAGING DIRECTOR/ [GRI 102-15, 301-1, 302-1, 302-3, 302-4, 303-4, 303-5, 305, 306-1, GROUP CHIEF EXECUTIVE OFFICER [GRI 102-14] 306-2, 307-1, 308-1] 112 Materials [GRI 301-1] 16 STIMULATING GROWTH, EXTENDING IMPACT [GRI 102-46] Sustainable Materials [F4GBM] 17 Progress on Sustainability 112 Carbon Footprint 18 Sustainability Approach 114 Energy [GRI 302-1, 302-3, 302-4] 19 Scope and Boundary Energy Management [F4GBM] [GRI 102-2, 102-3, 102-4, 102-5, 102-6, 102-10, 102-46] 118 Chemical Management [F4GBM] 22 Reporting Format [GRI 102-54] [F4GBM] 119 Water and Effluents [GRI 303-4, 303-5] 22 Reporting Cycle [GRI 102-50, 102-51, 102-52] Water Management [F4GBM] 23 Feedback [GRI 102-53] 122 Emissions [GRI 305] Emissions and Initiatives to Tackle Climate Change [F4GBM] 24 ABOUT US [GRI 102-1, 102-2, 102-5, 102-22] 124 Waste [GRI 306-1, 306-2] 24 Stewardship at KPS [GRI 102-22] [F4GBM] Waste Management Circular Economy [F4GBM] Board of Directors Profile 137 Environmental Compliance [GRI 307-1] [F4GBM] 33 Excelling in Our Strategic Investments [GRI 102-1, 102-2] 138 Supplier Environmental Assessment [GRI 308-1] [F4GBM] 36 Corporate Structure [GRI 102-5] 139 SOCIAL KEY HIGHLIGHTS 37 OUR COMMITMENT TO SUSTAINABILITY [GRI 102-26] STRINGENT QUALITY CONTROL PROCEDURES 38 Corporate Vision, Mission and Core Values [GRI 102-16] 39 Statement of Sustainability Policy [GRI 102-26] 141 SCALING UP SOCIAL IMPACT STRINGENT QUALITY CONTROL PROCEDURES 40 SUSTAINABILITY GOVERNANCE STRUCTURE [GRI 102-43, 102-44] [F4GBM] [GRI 102-18, 102-19, 102-20, 102-22, 102-26, 102-29, 102-31,102-32] 42 Sustainability Board Committee [GRI 102-22] 150 SOCIAL KEY HIGHLIGHTS 43 Participation in Public Associations [GRI 102-13] CORPORATE SOCIAL RESPONSIBILITY 44 Awards and Accolades 153 SCALING UP SOCIAL IMPACT: 46 United Nations Sustainable Development Goals CORPORATE SOCIAL RESPONSIBILITY [GRI 413-1] [F4GBM] 157 Committing to People-First for Planet and Prosperity 54 A ROAD MAP TO MEANINGFUL STAKEHOLDER ENGAGEMENT [GRI 102-15, 102-40, 102-42, 102-43, 102-44] 158 Evolving and Progressively Improving 56 Stakeholder Engagement 159 Enabling and Empowering Our Human Resource 58 Launch of New Corporate Website Employment [GRI 401] 160 Employee Compensation and Benefits 59 MATERIALITY MATTERS 161 Providing Good Employment [F4GBM] [GRI 102-21, 102-29, 102-30, 102-31, 102-33, 102-34, 102-47, 102-48] 162 Leading the Way in Professional Excellence 61 Prioritising ESG Integration 163 Employee Engagement 61 Materiality Matrix Labour/Management Relations [GRI 402] 167 Caring For Our Employees 65 SUSTAINABILITY KEY PERFORMANCE INDICATORS 168 Managing Occupational Safety and Health [GRI 102-47] [F4GBM] [GRI 403-1, 403-2, 403-4, 403-5, 403-9, 403-10] [F4GBM] 168 KPS Subsidiary Companies' Operational Flow During MCO 79 CORPORATE GOVERNANCE AND ACCOUNTABILITY 169 Embracing The New Norm At KPS [GRI 102-16, 102-17, 205-1, 205-2, 205-3] 169 Workplace Technology to the Fore 80 Ethics and Integrity [GRI 102-16, 102-17, 102-25] 170 Guidelines and Procedures to Address COVID-19 81 KPS Group Policies 171 Existing COVID-19 Health and Safety Protocols 81 Business Ethics and Transparency [F4GBM] 172 Improving Employee Safety, Physical Health and 82 Establishment of the Integrity Governance Unit Mental Well-Being 84 Risk Management [F4GBM] 172 Our People to the Fore 86 Anti-Competitive Behaviour [GRI 206-1] 173 Efforts and Standard Operating Procedures 86 Tax [GRI 207-1] Undertaken to Flatten the COVID-19 Curve 89 Anti-Corruption [GRI 102-17, 205-1, 205-2, 205-3] 174 COVID-19 Sanitisation of Plaza Perangsang Eliminating Bribery and Corruption [F4GBM] 176 Occupational Safety and Health Administration Training Programmes 92 ECONOMIC KEY HIGHLIGHTS 93 ECONOMIC [GRI 102-17, 102-25, 201-1, 201-2, 203-2, 204-1] 95 Economic Performance [GRI 102-6, 201-1, 201-2, 201-3] [F4GBM] 96 Revenue Breakdown 97 5-Year Financial Highlights SPECIAL FEATURES 99 Sustainability of the Business Strategy [F4GBM] 100 Market Presence [GRI 202-1] [F4GBM] KPS CULTIVATES NEW BREED 101 Enhancing Employment [F4GBM] 102 Hiring from the Local Community [F4GBM] 103 Indirect Economic Impacts [GRI 203-2] OF SOCIAL 103 Procurement Practices [GRI 102-9, 204-1] Sustainable Procurement and Supplier Assessment [F4GBM] ENTREPRENEURS SCALING UP SOCIAL IMPACT: 234 EQUALITY AND INCLUSIVITY IN SPORTS DEVELOPMENT [GRI 413-1] CORPORATE SOCIAL RESPONSIBILITY [GRI 413-1] [F4GBM] 234 KPS Community Development Programmes 179 OSH Key Performance Indicators Highlights 236 KPS Badminton for the Hearing Impaired Development Programme 180 Dynamic Workforce [GRI 404-1, 404-2, 404-3, 405-1] 237 Against All Odds 180 Employee Training and Development, Recruiting 238 Talent Identification for Swimmers with Special Needs and Retaining Employees [F4GBM] 239 KPS Junior Cyclist Development Programme 181 Competence Development in the Workplace 182 Individual Development Plan Programme 241 SPORTS FOR ALL 182 2020 IDP Programmes BUILDING HEALTHIER LIFESTYLES AND MINDS [GRI 413-1] 184 Promoting Inclusivity [GRI 102-7, 102-8, 401-1, 241 KPS Community Development Programmes 405-1] [F4GBM] 186 Employee Demographics 242 ENVIRONMENT, SAFETY AND HEALTH KEY HIGHLIGHTS 189 Non-Discrimination [GRI 406-1] [F4GBM] 189 Child Labour [GRI 408-1] [F4GBM] 243 Leave the Geese Alone, Time for Environmentally-Friendly Shuttlecocks 189 Forced or Compulsory Labour [GRI 409-1] [F4GBM] 244 KPS Badminton Therapy Clinic with Autistic Children Series 189 Security Practices [GRI 410-1] 245 KPS Lifeguard & Swimming Instructor Certification Course 189 Human Rights Assessment [GRI 412-1] [F4GBM] 246 Junior Lifesaving Programme 189