Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Community Investment
• Labor Standards
• Corporate Governance

Environmental Achievements

• Reduced Scope 2 emissions by 15% by 2025 (from 2022 levels)
• Carbon offset for Scope 1 and 2 emissions gradually over 5 years
• Reduced Scope 3 emissions by 15% by 2030

Social Achievements

• Provided food provisions to 100 families (RM30,000) and a buffet to 500 people in the indigenous community
• Donated RM20,000 and essential goods (RM5,000) to Pertubuhan Kebajikan Orang TuaCacat dan Kurang Upaya
• Maintained a high percentage of Malaysian employees (97%)

Governance Achievements

• Adopted a zero-tolerance approach against all forms of bribery and corruption
• Established a whistleblowing policy
• Implemented anti-bribery and corruption awareness programs

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 1, 2, and 3 emissions
• Maintaining high ethical standards

Mitigation Strategies

• Established short to medium-term carbon reduction targets
• Developed a comprehensive GHG inventory for Scope 1 and 2 emissions
• Implemented a strategy and action plan based on Group-wide ESG metrics
• Prioritized environmental management
• Considering introducing TCFD disclosures and SBTi commitments
• Revised Code of Business Conduct and Ethics to underline commitment to human rights and prevention of modern slavery

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Corporate Social Responsibility
• Corporate Ethics
• Sustainability

Governance Achievements

• Established Board Charter outlining roles, responsibilities, and authority of the Board of Directors.
• Established Audit and Risk Committee, Nomination and Remuneration Committee, and Board Investment Committee.
• Implemented a Code of Conduct and Ethics for Directors, Management, employees, and business partners.
• Annual Board performance evaluation.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Malaysian Code on Corporate Governance 2017 (MCCG)

Environmental Metrics

ESG Focus Areas

• Climate Action
• Financial Literacy & Inclusion
• Customer Welfare & Responsibility
• Employee Engagement
• Diversity & Inclusion
• Compliance to Evolving Regulations & Standards
• Business Ethics
• Fraud Risks
• Data Privacy & Cybersecurity
• Transparency & Trust

Environmental Achievements

• Reduced Scope 1 and Scope 2 carbon emissions by 3% compared to 2019 baseline. Scope 2 emissions in 2022 were 407.57 tCO2, 2% below 2019 pre-MCO levels.
• Implemented a "Going Green" initiative to address carbon footprint.
• Started Scope 1 & 2 tracking and monitoring from 2022.

Social Achievements

• Provided more than 15.24 million free MyCTOS Basic Reports and over 1.42 million free MyCTOS Score and MyCTOS with CCRIS reports to consumers and businesses.
• Conducted over 450 financial education roadshows and webinars nationwide.
• Achieved a +15 point improvement in the average credit score of Malaysians (from 663 in 2020 to 678 in 2022).
• 2.47 million individuals registered for CTOS self-check.

Governance Achievements

• Zero non-compliances reported for the past three years.
• Implemented a Three-Year Cybersecurity Strategy to achieve zero breaches by 2025.
• Maintained ZERO validated security breaches record in 2020, 2021 and 2022.

Climate Goals & Targets

Environmental Challenges

• Climate change poses significant threats, including physical damages from extreme weather and transitional challenges from the global shift to a low-carbon economy.
• Ensuring compliance with evolving regulations and standards across various areas (data privacy, corporate governance, employment, taxes).

Mitigation Strategies

• Established short-to-medium-term carbon reduction targets (reducing Scope 2 emissions by 15% by 2025, carbon offsetting for Scope 1 and 2, reducing Scope 3 emissions by 15% by 2030).
• Regularly review processes against changes in law and regulations to ensure compliance.
• Implemented a "Preventive rather than reactive" compliance approach, including education and engagement initiatives.

Supply Chain Management

Responsible Procurement

• Regular meetings and daily interactions with suppliers; strategic dialogues; conferences and forums; audits.

Climate-Related Risks & Opportunities

Physical Risks

• Major disruption and losses due to physical damages incurred by extreme weather events.

Transition Risks

• Reputational, compliance or market challenges stemming from the global transitions towards a low-carbon economy.

Reporting Standards

Frameworks Used: Bursa Malaysia’s Main Market Listing Requirements on Sustainability Reporting, Global Reporting Initiative (GRI) Standards (Reference), The ACCA Malaysia Sustainability Reporting Guidelines for Malaysian Companies, ISO 26000:2010 Guidance on Social Responsibility, The United Nations Sustainable Development Goals (UN SDGs)

Third-party Assurance: Internal audit review

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 10 (Reduced Inequalities)
• SDG 12 (Responsible Consumption and Production)
• SDG 16 (Peace, Justice and Strong Institutions)
• SDG 17 (Partnerships for the Goals)

CTOS contributes to these SDGs through its core business of credit reporting, financial literacy programs, and environmental initiatives.

Awards & Recognition

• World Digital Technology Corporate Excellence Award 2022
• Asia Corporate Excellence & Sustainability Awards 2022 (ACES)

Environmental Metrics

ESG Focus Areas

• Financial Inclusion & Community Empowerment
• Data Privacy & Cyber Security
• Governance, Transparency & Accountability
• Innovative Customer Solutions

Environmental Achievements

• Achieved a 9% year-on-year reduction in emissions, surpassing the initial 4% target

Social Achievements

• Completed 510 financial education roadshows and webinars nationwide
• Honoured 30 top SME subscribers with the CTOS Golden Subscriber Awards
• Prevented RM439 million worth of fraudulent credit applications
• 74% Employee Satisfaction Score
• Zero discrimination complaints reported to HR

Governance Achievements

• Implemented a comprehensive three-year cyber security strategy (Project Elevate)
• Incorporated the Anti-Bribery and Anti-Corruption questionnaire and Vendor Code of Conduct in our Vendor Registration Form
• Zero validated online security breaches
• Zero reports on misconduct and malpractice

Climate Goals & Targets

Environmental Challenges

• Evolving cyber threat landscape
• Maintaining data privacy and security in a growing digital environment
• Balancing business expansion with emission reduction targets

Mitigation Strategies

• Project Elevate: a three-year cyber security strategy
• Robust security implementations, including access management controls and security assessments
• Energy efficiency campaign
• Short-to-medium term carbon reduction targets

Supply Chain Management

Responsible Procurement

• Incorporation of Anti-Bribery and Anti-Corruption questionnaire and Vendor Code of Conduct in Vendor Registration Form

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Integrated Reporting Framework, Bursa Malaysia Securities Main Market Listing Requirements, Malaysian Code on Corporate Governance, Malaysian Financial Reporting Standards, Bursa Malaysia’s Sustainability Reporting Guide, FTSE4Good Bursa Malaysia Index, Global Reporting Initiative (GRI) Sustainability Reporting Standards, United Nations Sustainable Development Goals (UNSDGs), Companies Act 2016, Credit Reporting Agencies Act 2010, ISO 26000, ISO 27001, ISO 31000

Certifications: ISO 27001 (in process for 2024)

Third-party Assurance: CTOS’ Internal Audit

UN Sustainable Development Goals

• UNSDG 4: Quality Education
• UNSDG 8: Decent Work and Economic Growth
• UNSDG 10: Reduced Inequalities
• UNSDG 12: Responsible Consumption and Production
• UNSDG 13: Climate Action
• UNSDG 16: Peace Justice and Strong Institutions
• UNSDG 17: Partnership for the Goals

CTOS' initiatives align with these SDGs through financial education, community empowerment, responsible business practices, and environmental stewardship.

Sustainable Products & Innovation

• CTOS eKYC
• CTOS IDGuard
• Credit Manager Xpress
• Portfolio Benchmark Report

Awards & Recognition

• Malaysia Technology Excellence Awards - RegTech - Financial Technology 2023
• Malaysia Sustainability Excellence Awards - ESG Impact Awards 2023
• PwC Malaysia’s Building Trust Awards - Top 20 FBM Mid 70 Index 2023
• SME100 Awards - Official Credit Reporting Agency 2023
• Golden Bull Awards- Official Credit Reporting Agency 2023
• Platinum Business Awards- Official Credit Reporting Agency 2023