Sustainability

Governance

Governance Structure

KIP REIT institutionalises sustainability through a structured governance framework designed to ensure accountability, transparency, and effective execution of sustainability initiatives. This framework is designed to align sustainability priorities with our overall business strategy, ensuring that ethical conduct, risk management, and long-term value creation remain at the forefront of our operations.

Our sustainability governance operates through a multi-tiered structure, delineating roles and responsibilities across different levels of leadership and management.

The following governance structure illustrates the hierarchy and interaction between these key bodies, providing a transparent overview of how KIP REIT steers its sustainability agenda from strategic oversight to operational execution.

Roles and Responsibilities

Board of Directors

At the apex of KIP REIT’s sustainability governance framework, the Board of Directors (“BOD”) holds ultimate accountability for setting the strategic tone and overarching direction of KIP REIT’s sustainability agenda. This responsibility reflects our unwavering commitment to upholding the highest standards of integrity, transparency, and responsible business conduct. The BOD ensures that governance practices anchored in strong ethical principles serve as the foundation for embedding sustainability goals and objectives into the REIT’s long-term corporate strategy. In fulfilling this role, the BOD rigorously reviews and approves key sustainability strategies, comprehensive policies, and material sustainability matters that are critical to KIP REIT’s sustainable growth. It also oversees the outcomes of materiality assessments, which prioritise sustainability issues based on their significance to stakeholders and potential impact on the business, thereby guiding focused resource allocation and risk management. The BOD actively supervises stakeholder engagement processes to ensure meaningful dialogue with investors, tenants, regulators, and other key parties, enabling KIP REIT to better anticipate and manage sustainability risks and opportunities. Furthermore, the BOD continuously monitors the progress and performance against established sustainability targets, ensuring that these objectives are met within agreed timelines. This oversight extends to integrating sustainability considerations into the REIT’s broader strategic planning, balancing economic returns with environmental stewardship and social responsibility. Through these comprehensive responsibilities, the Board fosters a culture of accountability and leadership for sustainability that permeates all levels of the organisation, reinforcing KIP REIT’s position as a responsible and forward-looking real estate investment trust. To support the BOD in executing its sustainability mandate effectively, KIP REIT has established dedicated governance bodies, including the Sustainability Steering Committee (“SSC”) and the Sustainability Working Group (“SWG”). These committee and working group collaborate closely to oversee, guide, and implement sustainability initiatives, ensuring that Environmental, Social, and Governance (“ESG”) considerations are systematically integrated into decision-making frameworks and operational practices across KIP REIT.

Sustainability Steering Committee

The SSC, chaired by the Chief Sustainability Officer and comprising key senior managers such as the Legal and Compliance Manager, the Chief Operating Officer of Southern Region and the Chief Finance Officer, is primarily responsible for the strategic oversight of ESG matters. Its scope includes:
  • Reviewing and recommending the ESG framework, policies, and sustainability strategies to the BOD for approval
  • Advising the BOD on emerging sustainability trends, risks, and opportunities, including climaterelated issues
  • Ensuring compliance with relevant regulations and sustainability reporting standards.
  • Developing ESG goals, targets, and key performance indicators (“KPIs”) aligned with KIP REIT’s environmental and stakeholder requirements
  • Monitoring and reporting on sustainability performance to the BOD
  • Facilitating communication between the BOD and management on sustainability topic
  • Leading efforts to embed a culture of sustainability, including initiatives to reduce environmental impact and enhance social value
  • Overseeing the integration of sustainability into business operations and tracking performance against set targets
Essentially, the SSC functions as the strategic steering body that sets direction, ensures regulatory alignment, and monitors overall sustainability performance at a high level.

Sustainability Working Group

At the operational level, the SWG operates under the SSC and is tasked with translating the strategic directives of the BOD and SSC into actionable programs and projects. Its members include the Senior Executive, Legal and Compliance (Head), the Chief Operating Officer of Central Region, the Senior Shopping Mall Manager of KIPMall Tampoi and the Group Human Resource Manager. The SWG’s scope covers:
  • Managing material sustainability matters on a day-to-day basis
  • Developing and updating sustainability policies, procedures, and targets in line with the strategic direction set by the SSC
  • Coordinating and driving sustainability initiatives across KIP REIT’s portfolio and business units
  • Engaging with stakeholders, including property manager, to embed ESG considerations into operational practices
  • Monitoring progress of sustainability initiatives and reporting findings to the SSC.
  • Supporting the preparation of sustainability disclosures and reports aligned with Bursa Malaysia’s guidelines, GRI Standards, and other frameworks.
The SWG acts as the execution arm, translating strategic ESG goals into concrete actions, managing risks and opportunities at the operational level, and ensuring continuous improvement in sustainability performance.

Collaboration and Governance

Together, the SSC and SWG collaborate closely through quarterly meetings, where they review ESG matters, assess progress against targets, and address emerging sustainability issues. This structured interaction ensures alignment between strategic oversight and operational execution, enabling KIP REIT to maintain a dynamic and responsive sustainability governance framework that supports its long-term value creation and commitment to responsible business practices. This clear delineation of roles between the SSC’s strategic governance and the SWG’s operational management strengthens KIP REIT’s ability to integrate sustainability into all aspects of its business effectively.

Operational Units

At the operational level, the SWG is further empowered by the expertise and resources of KIP REIT’s two key operational arms: the REIT Manager and the Service Provider. Each of these entities is structured with specialised units including Finance, Legal, Compliance, Sustainability, Information Technology, Human Resources, Leasing, Operations, and Mechanical & Electrical (“M&E”) that provide targeted technical expertise and drive the execution of sustainability initiatives within their respective domains. By leveraging the capabilities of these specialised units, KIP REIT ensures that sustainability practices are embedded at the ground level. This approach enables the effective management of assets, proactive tenant engagement, and the pursuit of operational efficiency, all while upholding KIP REIT’s sustainability objectives.

Sustainability Framework and Policies

KIP REIT’s Sustainability Framework is the foundation for embedding responsible and forward-looking sustainability practices across our operations and investment strategies. This framework is both comprehensive and adaptive, ensuring that sustainability is not a standalone initiative but an integral part of our value creation and risk management processes.

KIP REIT’s Strategic Visions: Pillars of Sustainable Growth

At the heart of our framework are four interdependent pillars, each representing a strategic vision that guides all our sustainability initiatives and policies. These visions define our commitment to fostering a sustainable future while delivering consistent returns for our unitholders.

ECONOMIC PILLAR

VISION 1

Powering Sustainable Economic Growth

Economic performance and resilience at KIP REIT are intrinsically linked to the long-term sustainability of our assets, tenants and the communities we serve. Recognising that real estate investment extends beyond financial returns, we proactively address operational and market risks while supporting sustainable economic development within our portfolio and value chain.

We collaborate with tenants, property managers and local partners to identify operational efficiencies, promote responsible business practices, and encourage innovation that drives shared value. By integrating sustainability considerations into our investment decisions and asset management, we aim to future-proof our properties, enhance income stability for our unitholders, and contribute to the economic vitality of the communities in which we operate.

Our commitment to sustainable economic growth is reflected in prudent financial management, transparent reporting, and the pursuit of strategic investments that generate long-term benefits for all stakeholders. Through these efforts, KIP REIT seeks to set a benchmark for resilience and sustainable value creation in the Malaysian REIT sector.

GOVERNANCE PILLAR

VISION 2

Championing Integrity and Transparency

At KIP REIT, robust governance is fundamental to building trust, managing risk, and ensuring long-term organisational resilience. We recognise that effective governance extends beyond compliance, shaping our culture and influencing every decision we make. Our commitment is reflected in the continuous strengthening of our internal controls, risk management processes, and ethical standards.

We actively engage our Board of Director, Senior Management, and employees in upholding integrity and transparency through clear policies on anti-bribery and corruption, whistleblowing, conflicts of interest, cyber security and data privacy. By fostering a culture of integrity, accountability and transparency, we can anticipate and address emerging risks, safeguard stakeholder interests, and maintain regulatory compliance.

Through transparent communication, rigorous oversight, and ongoing capacity building, KIP REIT aims to set a benchmark for ethical conduct and governance excellence within the Malaysian REIT industry.

ENVIRONMENTAL PILLAR

VISION 3

Pioneering the Net Zero Transition

KIP REIT is committed to leading the transition toward a low-carbon, resource-efficient future. We recognise the significant role the real estate sector plays in addressing climate change and environmental challenges. Our strategy is focused on integrating environmental stewardship into every facet of our operations and investment lifecycle.

We work closely with tenants, service providers and industry partners to implement energy-efficient technologies, reduce greenhouse gas emissions, and advance sustainable waste and resource management practices. Regular assessments of climate-related risks and opportunities inform our approach, ensuring our portfolio’s resilience and alignment with national and global sustainability goals.

By prioritising innovation, continuous improvement, and transparent environmental reporting, KIP REIT strives to be at the forefront of environmental leadership, supporting the net zero transition and delivering value for all stakeholders.

SOCIAL PILLAR

VISION 4

Enriching Human Capital and Social Ecosystem

We believe that the strength and sustainability of KIP REIT are rooted in the well-being of our people and the communities we serve. Our social strategy is designed to foster a diverse, inclusive and supportive environment for employees, tenants and local stakeholders.

We actively promote diversity, equity, and inclusion, uphold human rights and labour standards, and invest in health, safety, and wellness initiatives. Through regular engagement and collaborative partnerships, we seek to understand stakeholder needs and deliver targeted community development programmes that create lasting positive impact.

By nurturing talent, supporting social resilience, and championing community investment, KIP REIT aims to contribute meaningfully to the broader social ecosystem, ensuring that our growth is shared and sustainable.

Sustainability Policies: Translating Vision into Action

KIP REIT’s sustainability ambitions are operationalised through a suite of structured policies that provide clear direction, measurable targets, and a foundation for continuous improvement. These policies are designed to ensure that our sustainability commitments are embedded across all business units and activities, supporting the resilience and long-term value of our portfolio.

Sustainability PoliciesPurposes
Sustainability PolicyStrategic ESG vision and governance architecture
Climate Risk PolicyIdentify, assess, and manage climate-related risks
Energy Management PolicyOperationalise emissions reduction and energy efficiency
Waste Management PolicyInstitutionalise responsible waste management across operations

Building a Sustainable Future with Purpose

KIP REIT’s comprehensive Sustainability Framework and interlinked policies demonstrate an unwavering commitment to embedding ESG principles throughout
our operations, investment strategies, and stakeholder relationships. By integrating robust governance, forwardlooking climate risk management, systematic energy optimisation, and responsible waste practices, we ensure that sustainability remains central to our value creation efforts.

Looking ahead, KIP REIT is dedicated to building on this foundation by exploring green building certifications and enhancing climate risk analytics to deepen our understanding of evolving environmental challenges. We will continue to align with stakeholder expectations and regulatory developments, maintaining transparent communication and delivering sustainable growth that benefits unitholders, tenants, communities and future generations.

Stakeholder Engagement

At KIP REIT, we take a stakeholder-inclusive approach, recognising the importance of ongoing engagement with our diverse stakeholder groups to build strong, trust-based relationships. Through regular and meaningful dialogues, we gain deeper insights into their needs and expectations, enabling us to identify risks and opportunities that help maximise value creation for all stakeholders involved. We maintain open communication channels tailored to each stakeholder group, ensuring transparency and responsiveness that support our commitment to sustainable growth and long-term success.