Sustainability of Kelington Group Berhad

Our vision, mission, and four core values form the guiding principles in the way we manage corporate sustainability and interaction with our stakeholders. Our four core value comprises of building partnerships, continuous improvement, encouraging innovation and also emphasizing workplace safety.

We recognise that our business operations are intertwined with various stakeholders and their valuable contribution have a significant impact on our market value. A robust stakeholder engagement approach helps us to communicate openly which makes it easier to build trust between us and our stakeholders.

Governance Structure

At Kelington, we have in place our long term growth strategy that drives us forward through the unpredictable environment in which we operate, whilst creating sustainable value for our stakeholders. These strategies ensure business growth, increase efficiency, reinforce financial strength, uphold corporate governance and ensure employee safety. The Board shall ultimately responsible for embedding sustainability into the organisation and its business strategy.

To ensure that sustainability is embedded across the organisation and adequate resources, systems, and processes are in place for managing sustainability matters, the Board delegates the management of sustainability matters to the Executive Management Committee (“EMC”). The Group COO has taken the roles as Chief Sustainability Officer in ensuring all material sustainability matters are being considered and managed throughout the operations.

Stakeholder Engagement

The Group recognises that the business operations are intertwined with various stakeholders and their valuable contribution has a significant impact on the Group's market value. A robust stakeholder engagement approach helps the Group to communicate openly which makes it easier to build trust between the Group and its stakeholders

This dialogue with relevant stakeholders is a critical process to promote learning, share ideas and improve the Group’s understanding of the business environment

Materiality Assessment

Guided by Bursa Securities Sustainability Reporting Guide, the EMC assessed the significance of each sustainability matter to Kelington by using a rating approach. The materiality matrix below identifies Kelington’s sustainability matters and the results of our materiality study. This guides us to report in line with the interests and needs of our stakeholders

From the matrix above, we aspire to demonstrate our commitment to sustainability in the following areas:

  • Managing our Business
  • Our People
  • Focus Our Customer
  • Environmental Care & Protection

Material Sustainability Topics

Managing our Business

Growing the Business

Target : On-going growth of Revenue and Profit Performance :

For more information on the Group’s growth, please refer to the Management Discussion & Analysis and Financial Statements in this Annual Report.

We believe the collective effort of our employees working together as a team across our subsidiaries delivered strong performance for the Group since the inception of Kelington. We will continuously invest in our employees’ welfare and nurture them into competent and highly skilled individuals who can support our business growth.

Corporate Governance and Compliance

We are guided by the Malaysian Code on Corporate Governance 2017 in ensuring the principles and best practices of good corporate governance is applied throughout our Group. Details of our corporate governance framework and practices are elaborated in the Corporate Governance Overview Statement of the Annual Report 2018 and the Corporate Governance Report 2018.

We have established effective standard operating policies and procedures, defined levels of authority and guidelines in our business operations to ensure compliance with internal controls, laws and regulations. These policies, procedures and guidelines are subjected to regular reviews and improvements; and have been communicated to all employees.

Anti-corruption and Anti-Bribery

We believe that all business dealings should be transparently performed and accurately reflected in accordance with the Group’s Code of Ethics and Conducts. We uphold all laws relevant to countering bribery and corruption. We remain bound by the laws of Malaysia, including the Malaysian Anti- Corruption Commission Act 2018 (“MACC Act”), in respect of our conduct both at home and abroad.

Subsequent to the issuance of the Guidelines on Adequate Procedures pursuant to section 17A(5) of the MACC Act from the Prime Minister’s Department, GRC Consulting Services Sdn Bhd was appointed as consultants to assist us in establishing Adequate Procedures for Anti-Bribery Management and enhancing existing controls through improved systems, policies and procedures.

In 2019, no employee have been disciplined or dismissed due to non-compliance with our Code of Ethics and Conducts and no fines, penalties or settlements were imposed or made during the year.

Internal Process Efficiency

As part of our strategic management process, the EMC reviews the efficiency operations of all activities along the value chain, identifies key result areas, develops relevant key performance indicators, communicates and monitors business function’s progress and performance in achieving the Company’s strategic and operational goals.

Since February 2020, the Risk Management Committee was established. We believe a dedicated company-wide risk oversight by the board committee could go a long way in heightening scrutiny on risk management matters and thus enabling a more effective anticipation of, and reaction to, events and trends that could lead to disruptive changes in the business model. It also provides an opportunity to coordinate and monitor all key risk discussions in a transparent manner at a central point.

Our People

Talent Development and Succession Planning

In line with our long term sustainability strategy, Kelington is now focus on attracting and retaining talent and then helping them to develop their skills to drive our Group’s success. We aim to establish a strong pool of talent and lines of successors for the Group by year 2023.

Learning and Continuous Improvement

In a world of continual information flow, global competition and technological change, Kelington commits to build a workplace culture of continuous improvement and being productive.

Occupational Health and Safety ("OHS)

We have been practicing strict compliance to all safety, health and environmental requirements in relation to the Occupational Safety and Health Act. We believe properly-trained worker can perform his or her job more efficiently, spot hazards and not take shortcuts, leading to fewer workplace injuries.

KGB had established the Safety & Health Committee at the organizational as well as at each project site. The committees are tasked to organise and carry out various safety awareness, improvements and legally required training and activities such as basic firefighting, first aid competency course, safe chemical handling, chemical spill, emergency response, quarterly safety inspections and committee meetings, and annual location for fire drills.

On-Job training & daily tool box meetings are part of the awareness programme that we carried to ensure our workers aware of the OHS hazards/risk before they start work.

We encourage safety in the workplace. Our safety awards programme increases employee safety performance, reduce accidents and promote safework practices.

Employee Welfare

We understand that our employees need meaningful career development and skills improvement as well as competitive compensation and benefits to support their families and cope with rising cost of living. To do so, our Human Resource team regularly reviews compensation and benefits packages, monitors facilities and privileges, ensures equal opportunities in the workplace, develops skills and retains the best talents.

Alongside this, we are establishing a Training team to tailors a range of learning courses to cater for the needs of our employees from various functions and ensure they posses the appropriate skills and competencies.

Local Hire and Internships

We are committed to providing employment and career development opportunities to the local community where we operate.

Focus Our Customer

Customer Satisfaction

We do our best to retain our value customers. We are proud of our team in Malaysia, Singapore and China who work consistently to realise our mission: To deliver quality services to meet our Customers' requirements safely and cost effectively.

Environmental Care & Protection

Energy, Water & Waste Management

We remain committed to preserving the environment by implementing environmental friendly practices in our operations. We continuously worked towards reducing electricity and water consumption throughout the Group. In addition, the EMC is working out a new policy and procedures to manage usage of materials and reduce material waste.