Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility

Social Achievements

• Organized a Blood Donation Campaign and encouraged its Group employees to participate as well as the general public.
• Provides practical training for students from various universities and polytechnics under its Industrial Internship Training.
• Provides simulated Stock Games to universities in collaboration with its panel of stockbroking clients in Malaysia, Singapore and Indonesia.
• Visit to an orphanage home and contribution of basic necessities to the home.

Governance Achievements

• The Board strives to achieve the best practices in Corporate Governance as outlined by the Malaysian Code on Corporate Governance 2012.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Environmental Sustainability
• Social Sustainability

Environmental Achievements

• Regularly monitors electricity consumption and addresses deviations; uses LED lighting and energy-efficient equipment; emphasizes Reduce, Reuse, Recycle initiatives; promotes e-communication to go paperless.

Social Achievements

• Embraces workforce diversity and inclusion; provides continuous professional development for employees; has a structured leadership development program; provides industrial training to undergraduates; respects customer data privacy in accordance with PDPA 2010; engages in regular community outreach (blood donation campaign).

Governance Achievements

• Adheres to the Malaysian Code on Corporate Governance 2017; established a formal and transparent Directors’ Remuneration Framework; has three main Board Committees (Nomination and Remuneration, Audit, and Option); adopted a Whistleblowing Policy.

Climate Goals & Targets

Environmental Challenges

• Operational and system failures; volatility of the securities and futures market; adequacy of human resources.

Mitigation Strategies

• Vigorous system monitoring, management, and backups; regional diversification to avoid over-reliance on a single market; employee hiring and retention programs, including a Long Term Incentive Plan (LTIP).

Supply Chain Management

Supplier Audits: Regular review of major suppliers

Responsible Procurement

• Seeks local suppliers for procurement requirements.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Economic Sustainability
• Social Sustainability

Environmental Achievements

• Regularly monitors electricity consumption and addresses deviations; uses energy-efficient equipment and LED lighting; emphasizes Reduce, Reuse, Recycle initiative; promotes e-communication to reduce paper usage.

Social Achievements

• Embraces workforce diversity and inclusion; invests in employee training and development, including leadership programs and internships; prioritizes cybersecurity and data privacy; organizes Inter-Varsity Stock Challenge to educate future generations; engages in community outreach programs.

Governance Achievements

• Adheres to the Malaysian Code on Corporate Governance 2017; established a formal and transparent Directors’ Remuneration Framework; has an Audit Committee, Nomination and Remuneration Committee, and Option Committee; implemented a Whistleblowing Policy; maintains open communication with stakeholders.

Climate Goals & Targets

Environmental Challenges

• Softer trading activity in the Malaysian securities market leading to lower revenue and profit; global headwinds such as the US-China trade war, Brexit, Hong Kong protests, and the COVID-19 outbreak; volatility of the securities and futures market; adequacy of human resources.

Mitigation Strategies

• Leveraged on Asia e-Broker and Asia Trading Hub to increase cross-border trading income; implemented a Long Term Incentive Plan to retain employees; diversified regional presence to mitigate over-reliance on a particular market; invests in employee hiring, development, and retention programs; explores collaborative opportunities with synergistic companies.

Supply Chain Management

Responsible Procurement

• Seeks local suppliers to ensure products and services meet business requirements.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Community

Environmental Achievements

• Planted neem trees around neighbourhoods to improve soil conditions and reduce climate change effects.
• Reduced energy consumption through monitoring, energy-efficient lighting, and sleep mode for equipment.
• Implemented 3Rs (Reduce, Reuse, Recycle) and office waste recycling programs.
• Made donations to environmental charities.
• Digitised the workplace to reduce paper usage and emissions from travel.

Social Achievements

• Introduced remote working, altered office arrangements, and implemented COVID-19 safety measures.
• Provided employee health and wellbeing benefits.
• Organised training and development programs for over 300 employees.
• Maintained high standards of corporate governance and ethical business conduct.
• Implemented stringent cybersecurity measures and responsible data usage.
• Organised educational events to promote trading literacy.
• Supported the differently-abled through job opportunities and partnerships.
• Hosted blood donation events.

Governance Achievements

• Established a Code of Business Conduct for Contractors & Suppliers.
• Provided corporate governance materials on the website.
• Implemented a Whistleblowing Policy.
• Established a sustainability governance structure (in progress).

Climate Goals & Targets

Environmental Challenges

• Reduction in trading activity due to slowdown in the Malaysian market.
• Staff retention challenges due to a recovering job market.
• Additional costs associated with a lawsuit against ex-staff for intellectual property breach.

Mitigation Strategies

• Investing in diversifying revenue streams regionally and by solution.
• Implementing employee incentive programs (Long-Term Incentive Plan).
• Enhanced security framework, additional controls, and new policy measures to protect intellectual property.

Supply Chain Management

Supplier Audits: Regular review of major suppliers

Responsible Procurement

• Code of Business Conduct for Contractors & Suppliers

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Planted neem trees to improve soil conditions and rehabilitate degraded land
• Reduced energy consumption through monitoring, energy-efficient lighting, and equipment sleep mode
• Implemented a hybrid working model to reduce greenhouse gas emissions from commuting
• Partnered with LovelyDisabledHome for office waste recycling and job opportunities for the differently-abled

Social Achievements

• Organized Inter-Varsity Stock Challenge to promote trading literacy
• Provided 80+ internships since 2007
• Actively worked with LovelyDisabledHome to provide job opportunities for individuals with disabilities since 2016
• Organized blood donation events three times a year
• Donated to charities and NGOs

Governance Achievements

• Established a Code of Business Conduct for Contractors & Suppliers
• Developed a robust cybersecurity framework compliant with legal obligations and industry standards (e.g., Personal Data Protection Act 2010, ISO27001:2013)
• Upholding high standards of corporate governance with materials available on the corporate website (Board Charter, Code of Business Conduct, Corporate Governance Reports, Whistleblowing Policy, etc.)

Climate Goals & Targets

Environmental Challenges

• Lower transaction-based revenue due to normalized trading momentum in Bursa Malaysia and global market volatility
• Retaining and attracting talents in the IT industry
• Economic risks related to global growth and market conditions
• Protecting intellectual property

Mitigation Strategies

• Regional growth in new client acquisition and projects, particularly in Hong Kong SAR, China
• Development of a next-generation trading platform with ultra-low latency capabilities
• Diversification into digital creative services and cloud services (IaaS and PaaS)
• Competitive remuneration schemes and share option schemes for employees
• Legal measures and operational controls to protect intellectual property

Supply Chain Management

Supplier Audits: Regular review of major suppliers

Responsible Procurement

• Code of Business Conduct for Contractors & Suppliers

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Planted neem trees to improve soil conditions and reduce climate change effects
• Reduced office waste through 3Rs practices and recycling programs
• Reduced energy consumption by monitoring usage, using energy-efficient lighting, and digitizing the workplace

Social Achievements

• Reinstated incentive trips for top-performing staff
• Undertook office renovations to improve work environment
• Provided healthcare benefits to employees (medical, hospitalization, dental, optical)
• Offered fresh fruits to promote healthy lifestyles
• Organized training and development programs for 400+ employees
• Provided 90+ internships since 2007
• Partnered with LovelyDisabledHome for waste recycling and job opportunities for the differently-abled
• Organized blood donation events three times a year
• Made donations to charities addressing disaster relief, hunger, poverty, and education

Governance Achievements

• Established a Code of Business Conduct for Contractors & Suppliers
• Developed various corporate governance materials (available on website)
• Implemented stringent cybersecurity measures and responsible data handling
• Upholds high standards of corporate governance, transparency, advocacy, engagement, and inclusivity

Climate Goals & Targets

Environmental Challenges

• Global geopolitical tensions and market uncertainties impacting trading activities
• Closure of broking houses in Vietnam, Singapore, and Hong Kong
• Rise of FinTech brokers in Malaysia posing challenges for traditional brokers
• Global economic slowdown anticipated in 2024
• Economic challenges in Malaysia and China impacting revenue

Mitigation Strategies

• Strategic acquisition of IronHorse Asia Sdn Bhd
• Investments in Network & Infrastructure segment to offer cloud computing
• Enhancements to trading systems with high-speed and low-latency capabilities
• Development of new algorithmic trading and next-generation platform
• Introduction of an advanced low-latency matching engine for the grey market
• Establishment of a robust market data hub in China
• Rollout of new editions of trading solutions with advanced features (eKYC, AMLA, multi-market trading)
• Internal restructuring of N2N Group of Companies to optimize operations

Supply Chain Management

Supplier Audits: Regular review of major suppliers

Responsible Procurement

• Code of Business Conduct for Contractors & Suppliers

Climate-Related Risks & Opportunities