Governance

Our Framework of Integrity, Governance and Risk Management (FIGR)

Adopted in 2004, our Framework of Integrity, Governance, and Risk Management (FIGR) guides us in managing risks effectively and instilling a strong culture of corporate governance and risk management in the organisation. The FIGR highlights the Board’s oversight functions and outlines the key parameters that guide our overall strategy execution.

Our Board Charter sets out the roles and responsibilities of the Board. Supporting this, the FIGR includes a Schedule of Matters for the Board, Limits of Authority for Management, a Risk Management Policy and other pertinent policies and guidelines.

As part of our accountability practices, we comply with statutory public disclosure requirements with respect to our investments, divestments, and capital-raising activities. In addition, we make the appropriate disclosures of our performance and operations to meet legal and regulatory requirements, and on a voluntary basis to our key stakeholders.

Our accounts are audited by an independent external auditor and the audited financial statements are submitted to the Companies Commission of Malaysia. Financial data is disclosed to our shareholder, the Minister of Finance, Inc. We also publish our audited financial statements on our website and through annual publications including The Khazanah Report.

Khazanah ESG FIGR

Our ESG FIGR is adopted to guide and govern our dual ESG objectives of Enterprise Sustainability (ES) and Sustainable Investments (SI).

Following the launch of our Sustainability Framework and medium-term targets in June 2022, the Environmental, Social and Governance FIGR (ESG FIGR) was developed to guide us in achieving our ESG targets. The framework was adopted by the Management Committee in May 2023 and highlights the management’s oversight on ESG matters including internal ESG policies and stewardship priorities, based on our ESG targets.

The Board has the ultimate responsibility and oversight for all sustainability matters, with the EXCO and ARC as the sub-committees that support the Board with key oversight over ESG initiatives. Further to this, the Management Committee and Investments Committee serve as the key platforms for deliberation and monitoring of our progress, while also functioning as a management-level approving authority.

The ESG FIGR ensures robust ESG risk management and compliance for both Sustainable Investing and Enterprise Sustainability. In 2022, we also developed the Shareholder Expectations and Investment Stewardship (SEIS) document, which clearly outlines our expectations towards our investee companies and our investment stewardship principles. It also includes our newly revised Voting Guidelines, which govern our voting at general meetings of listed companies.

As part of our efforts to maintain a high standard of transparency and accountability, we published the SEIS document and Sustainable Investment Policy, outlining our principles and commitments in relation to responsible investment and taking into account ESG factors. These guidelines complement our Investment Policy, which outlines our investment mandate, objectives and principles.

Commitment to Institutional
Good Governance

Our ESG FIGR is adopted to guide and govern our dual ESG objectives of Enterprise Sustainability (ES) and Sustainable Investments (SI).

Khazanah is a member of the IIC and a signatory of the Malaysian Code for Institutional Investors 2022 (MCII 2022), whereby we support and comply with the code. We are largely in line with its seven principles, and the Stewardship Spotlight as outlined in our Shareholder Expectations and Investment Stewardship (SEIS) document.

Our full Statement of Compliance can be found here on our website.