Corporate Sustainability Statement

1. We continued to revitalise our markets, by improving the market’s ecosystems, investing in product development, and enhancing our services, efficiency and productivity as we stepped up our efforts to internationalise our markets.


2. We promoted education for market participants with educational programmes such as IPO Seminars, Market Chat, Talk Futures, “In The Spotlight” and the CBRS Research Scheme.


3. We enhanced governance best practices with the issuance of a Corporate Governance (CG) Guide in Bahasa Malaysia and Mandarin, revamped business rules to strengthen standards of business conduct and efficiency for brokers and introduced new measures to enhance investor protection.


4. We established a new process for the efficient management of stakeholder engagement. This new process will enable relevant staff/business units to follow-up on actionable points arising from the meetings. We also improved on our Enterprise Service Management system to manage our customers effectively.


5. We further improved our risk management system, establishing crisis management processes such as procedures to manage cyber threats and attacks.


6. We engaged with non-government organisations, such as Conservation International and CSR Asia, and supported various industry initiatives to further increase awareness, understanding and adoption of good CG and sustainability practices. We participated in the Carbon Disclosure Project for the first time, disclosing our carbon footprint and benchmarking ourselves against other global companies.


7. We were re-certified for ISO 9001:2008, providing assurance of our commitment to continuous improvement and customer satisfaction.

At Bursa Malaysia, we believe that good corporate governance, commitment to disclosure and transparency of Economic, Social and Governance (ESG) issues can help PLCs mitigate operational risks and generate business opportunities. Therefore, we also encouraged Malaysian PLCs to integrate sustainable business practices into their business strategies, just as we have done.


WORKPLACE

Our Code of Ethics ensures that our employees engage with all our stakeholders in an ethical manner. As our employees play a vital role in the success and sustainability of our Company, we strive to create a work environment that is safe, conducive, inclusive and supportive, providing our employees with equal access to information, personal development and career opportunities.

The Transformation Programme that we have embarked on this year will organise our resources into high-growth business units, ensuring that we have the right capabilities and capacities to ensure business sustainability. We continued to improve on our structure, processes and employee mindset to help take us to greater heights.

A number of steps were taken during the year as follows:

1. We enhanced our corporate governance practices with the review of our whistleblower policy and procedure, fostering an environment where integrity and ethical behaviour are encouraged and maintained.


2. We continued with the education of our employees on matters of safety and health by organising talks on crime prevention and cycling as a healthy recreational activity.


3. We made improvements in regard to employee engagement. Our revamped Employee Information Site is now a focal point for employees to access timely and comprehensive information and current developments in the Company. We also maintained other employeeengagement activities such as Coffee with the CEO, Bursa Family Carnival and various sports and recreational activities for employees.


4. We continued to focus on talent development by offering our employees many learning opportunities via our in-house programmes, external training programmes and our Knowledge Centre@Bursa.


5. We also reviewed our performance management system and compensation package to ensure we remained competitive and thereby strengthened our ability to attract and retain talents.
   
   

COMMUNITY

As a corporate entity, we interact with and impact communities in many ways. We contribute regularly to youth development through our scholarship and internship programmes and we provide support to the underprivileged and the needy through financial assistance and employee volunteerism activities. We also help improve financial literacy and capital market awareness in Malaysia through our community education activities.

Initiatives undertaken during the year under review included the following:

1. Our collaborative The Edge-Bursa Malaysia Kuala Lumpur Rat Race charity run continues to impact communities in need. This year’s race, which saw the largest participation ever, collected RM1.9 million from 91 companies, the proceeds of which were distributed to 20 selected beneficiaries.


2. We empowered more youth in the community through our internship and youth leadership programmes. We trained 60 undergraduates under our internship programme and participated in the governmentinitiated Skim Latihan 1 Malaysia (SL1M). We sponsored students from our adopted schools and Bursa Kids to attend leadership camps. We promoted educational excellence, rewarding undergraduate students with scholarships, and provided financial awards to top-performers among students of our adopted schools and Bursa Kids who excelled in their public examinations.


3. We worked further to improve financial literacy by organising camps and workshops for students from our adopted schools and children from orphanages such as MoneyWise Camps, and the School Entrepreneurship Challenge.


4. We strengthened our connection to the community with the help of employee volunteers. A total of 2,399 volunteer hours were logged for activities such as reading programmes with HOPE Worldwide, visits to a bread factory and the Islamic Museum, a party at the Paediatric Oncology Ward at University Malaya Medical Centre and visits to 14 Rat Race beneficiaries and a home for handicapped children.
   
   

ENVIRONMENT

Although the business of a stock exchange does not impact on the environment in a significant way, we believe that every business can make a contribution towards safeguarding the environment through various initiatives such as the reduction of Greenhouse Gas (GHG) emissions. Our ISO 14001:2004 certification, received in 2007, is testimony to our commitment to continuously improve our environmental performance. We continued to promote the responsible usage of resources and the importance of environmental protection among our employees and stakeholders. We also gave priority to investments and initiatives that not only decreased our GHG emission levels, but also reduced our operational costs as well.

During the year the following activities were recorded:

1. We worked towards minimising our GHG emissions by implementing more energy-saving initiatives, such as replacing fluorescent light bulbs with energy-savings bulbs, reviewing our air travel policy and further educating our employees on ways to save energy. Our efforts paid off with a 4% reduction in GHG emission levels (see table below), exceeding the 3% reduction we had targeted for the year. This reduction came from three sources: electricity usage, business air travel and paper consumption.
   
   
   

   GHG Protocol Emission Scope i	Source of Emission	GHG Emission 2 (in tonnes of CO2 equivalent)
   		2009	2010 3	2011
   Scope 2 Scope 3 Scope 3	Electricity Usage Business Air Travel Paper Consumption	6,189 475 -	6,185 495 16	6,149 231 15
   Total		6,664	6,696	6,395
   % change		-	0.48	(4.49)

   
   Note:
   
   1. Our GHG emission scope and source of emission were referenced to GHG Protocol – A Corporate Accounting and Reporting Standard of the World Resources Institute and World Business Council for Sustainable Development.
      

      • Scope 2 refers to indirect GHG emissions from consumption of purchased electricity, heat or steam.
      • Scope 3 refers to other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities not covered in Scope 2, outsourced activities, waste disposal, etc.
        
        
   2. GHG emission is computed as follows:
      

      • GHG emission for electricity usage was calculated by multiplying quantity of purchased electricity (kWh) by 0.684 tonnes CO2/MWh emission (factor is based on 2007 report by Pusat Tenaga Malaysia titled ‘Study on grid connected electricity baselines in Malaysia’.)
      • GHG emission for business air travel was based on the International Civil Aviation Organisation Carbon Emissions Calculator. Carbon footprint was computed for each man trip made.
      • GHG emission from paper consumption used the VfU Indicator 2005 emission calculator. No emission was calculated for 2009 due to the unavailability of data.
        
        
   3. 2010 figures were revised to reflect the changes in our basis for calculation.
      
      
2. We carried out more conservation efforts through initiatives such as recycling natural spring water available within the compound of our premise for air-conditioning cooling towers and water features, and adjusting the water pressure in toilets, wash basins and pantries to slow down water outflow, resulting in significant savings in our water consumption.
   
   
3. We continued to educate our employees on environmental-related issues through activities such as the FunWalk@Bursa, Earth Hour and screening of award-winning green films. During the FunWalk at Bursa Malaysia’s building, our employees witnessed various environmentalrelated initiatives that we have had in place since 2007.
   
   
4. We continued our carbon-offset efforts with the planting of 176 trees from six indigenous tree species at Rimba Bursa in Kepong Metropolitan Park, bringing the total number of trees planted by Bursa since 2009 to 712 trees.

MOVING FORWARD

We shall continue to champion enhanced governance measures and improved disclosure on sustainability issues among our issuers. Our plan is to introduce the ESG Index, aimed at improving sustainability practices and reporting procedures among Malaysian PLCs. As an example of such commitment, we will make available disclosure on our own internal sustainability practices and performance in our e-Sustainability Report on Bursa Malaysia website.