TOR Sustainability & Risk Committee
INTRODUCTION
Sustainability is about ensuring the long-term success of KPJ's business
and its stakeholders, through the responsible management and development of
people, safety, health, environment, communities, nations and the economy
by integrating and embedding responsible practices into KPJ's
decision-making processes and engaging with stakeholders transparently and
justly.
How KPJ addresses sustainability issues and positions itself as a
responsible corporate citizen at the national and regional level is
critical to its ability to obtain and maintain its social licence and to
generate value for a broad base of stakeholders, including host communities
and government, employees and shareholders.
PURPOSE
The objective of the Committee is to oversee on behalf of KPJ Board of
Directors, material management policies, processes and strategies designed
to manage the Economic, Environment and Social risks and achieve compliance
with sustainable development, responsibilities and commitments and strive
for an industry leadership position on sustainability.
1.
MEMBERSHIP
1.1 The Committee is organised from the management staff of KPJ as
follows:-
a) Dato' Amiruddin Abdul Satar - President & Managing Director (Chairman)
b) Aminudin Dawam - Executive Director
c) Datin Sabariah Fauziah Jamaluddin - Vice President (II) Group Marketing & Strategic Communication
d) Dato Mohd Farid Salim - Senior General Manager, Business Operations
e) Norhaizam Mohamad -Vice President (II) Group Finance Services
f) Khairul Annuar Azizi - General Manager - Risk, Compliance & Investor Relations Services
1.2 Any changes to the membership of the Committee shall be at the
discretion of KPJ President/MD. Risk, Compliance & Investor Relations
Services shall act as the Secretariat for the Committee and will maintain
and record the minutes of the Committee's proceedings and decisions.
1.3 The Chairman of the Committee shall be the President/Managing Director
and in his absence the Chairman shall be appointed from amongst the Vice
Presidents.
2.
SCOPE
Sustainability within KPJ touches upon all aspects of our operations, but
for clarity the Committee shall provide specific oversight of risks and
opportunities in the following areas, which are based on the Sustainability Reporting Guide issued by Bursa Malaysia,
relevant to KPJ:-
2.1 Procurement Practices - spending on local suppliers at
significant location of operations
2.2 Community Investment - voluntary contributions made by
KPJ to enhance socio-economic benefits and create a positive social impact
2.3 Indirect economic impact - additional consequences of
direct impact of financial transactions and the flow of money between KPJ
and its stakeholders
2.4 Environment - protection of the environment from
emissions (e.g. discharge of environmentally hazardous substances,
greenhouse gases) and wastes/effluents (e.g. hazardous and non-hazardous
wastes)
2.5 Energy and Water - consumption, efficiency of use,
recycling, renewable sourcing and other conservation and efficiency
initiatives
2.6 Diversity - specifically in the workforce, management
and the Board characterised by gender, age etc
2.7 Human Rights - relating to possible discrimination,
freedom of opinion/expression, working hours/conditions, freedom of
association
2.8 Occupational Safety & Health - refers to the
anticipation, recognition, evaluation and control of hazards arising
in/from workplace that could impair health & well-being of workers
2.9 Anti-Competitive Behaviour - ethical business
practices without affecting consumer choice, pricing and market efficiency
2.10 Anti-Corruption - activities that promote
transparency and guard against various forms of corruption eg. bribery,
extortion, fraud, collusion
2.11 Labour Practices - fair treatment of employees with
regards to terms & conditions of employment and skills/knowledge
development policies
2.12 Products & Services Responsibility - impact of
products and services on the well-being of society including privacy,
health and safety
2.13 Supply Chain (social) - relates to potential social
impact on society in the supply chain practices eg. supplier assessment and
monitoring
2.14 Compliance (social) - adherence of KPJ business
activities to the relevant laws and guidelines as demonstrated by sanctions
suffered
3.
MEETINGS - FREQUENCY, QUORUM, ATTENDANCE & MINUTES
3.1 The Committee shall meet at least 4 times annually and
at such other times as the Committee deems to be appropriate
3.2 The quorum of the Committee shall be 4 members, one of
whom must be at least a Vice President of KPJ
3.3 The Committee may invite other members of KPJ management or staff or
outside parties to attend and participate in the meeting of the Committee
where necessary
3.4 The minutes of the meeting shall be action oriented and record the
deliberations and decisions of the Committee. The minutes shall include
compiled Board instructions as Matters Arising for discussion at each
Committee meeting to ensure proper follow through
4.
COMMITTEE RESPONSIBILITIES
4.1 Policies
4.1.1 Review material frameworks, policies and procedures relevant to the
Committee's scope
4.1.2 Consider material regulatory and voluntary developments in
sustainability
4.1.3 Monitor appropriateness of KPJ strategies in addressing material
stakeholder sustainability concerns
4.2 Management Processes and Resources
4.2.1 Review sustainability incidents and ensure learning is shared
4.2.2 Review KPJ's performance in relation to the Scope of the Terms of
Reference
4.2.3 Oversee significant management processes designed to ensure
compliance with sustainability policies and reporting requirements
4.2.4 Monitor the resources applied to achieving compliance with the
policies within the Committtee's Scope
4.3 Risk Management
4.3.1 Review the effectiveness of the process for assessing and managing
significant risks falling within the Scope of the Committee
4.3.2 Coordinate the Committee's risk management work with the Audit
Committee, in particular in relation to reporting to the Board of KPJ on
sustainability
4.4 External Audit and Assurance Reviews
4.4.1 Review the findings or comments by the external auditors on the
Sustainability Statement in KPJ Annual Report
4.4.2 Oversee the process of selection and engagement of external
consultant providing assurance to the Sustainability Statement, where
applicable
4.5 Reporting and External Disclosures
4.5.1 The Chairman shall update the Board on the activities undertaken by
the Committee and the minutes of each Committee meeting shall be received
by the Board of KPJ
4.5.2 Review and recommend to the Board on the adequacy of the reporting on
sustainability opportunities, risks and issues in the KPJ Annual Report and
other relevant documents for public disclosure
4.5.3 Review and recommend to the Board on any change in sustainability
policies, standards and procedures and its implementation where applicable