CORPORATE SUSTAINABILITY STATEMENT

COMMUNITY

We promote educational excellence and serve the community through acts of philanthropy as well as employee volunteerism through our foundation, Yayasan Bursa Malaysia. Our community initiatives are targeted at areas where we can make the greatest difference, such as in enhancing capital market awareness through education.

On-going community programmes include the provision of scholarships and internships, and training unemployed graduates under the government's Skim Latihan 1Malaysia. Under the Khazanah Nasional-inspired PINTAR programme, we have since 2009 adopted two schools where we aim to raise academic standards by sponsoring educational material and facilities, and motivating both the students and teachers to achieve academic excellence. To reinforce our efforts, we reward the top performers of our adopted schools in the national examinations with Excellence Awards. This initiative is also extended to children of our employees.

As a caring organisation, we co-sponsor The Edge-Bursa Malaysia Rat Race which in 2012 attracted the participation of 80 companies and raised RM2.1 million, to be distributed to 26 beneficiary organisations. During the year, we also raised RM12,150 for charity via an employee-driven event, The Great Cookout Day. Meanwhile, we supported the charitable efforts of others, such as Frost & Sullivan's Frost the Trail Corporate Challenge 2012 and Singapore Exchange's SGX Bull Charge 2012.

Finally, our Management and employees carried out a number of community outreach programmes with organisations such as the Pusat Jagaan Al-Fikrah, Pertubuhan Al-Hidayah, Positive Shelter Home and Pertubuhan Kebajikan Al-Hidayah Selangor. We also organised an outing to Gua Tempurung for students from one of our adopted schools, SMK Batu Laut.

ENVIRONMENT

We are committed to reducing our environmental impact by minimising our operational carbon footprint. We promote the responsible use of resources and the importance of environmental protection among our employees and stakeholders.

Towards reducing our greenhouse gas (GHG) emissions, we are sparing in our electricity usage, business air travel and paper consumption. In 2012, we achieved a 2.1% reduction of GHG year-on-year with initiatives such as greater emphasis on e-Services. Bursa Malaysia's commitment to lowering our carbon footprint is further exemplified by our support of Earth Hour and participation in the Carbon Disclosure Project in 2012, run by an independent not-for-profit organisation working to drive greenhouse gas emission reduction and sustainable water use by businesses and cities.

To promote an environmentally-conscious culture in the workplace, we ran a recycling drive during The Great Cookout Day. Our efforts towards ensuring environmental sustainability led to Bursa Malaysia being recertified for the MS ISO 14001:2004.

On a broader scale, Bursa Malaysia is contributing towards drafting a Framework for GHG Reporting for Malaysian companies.


WORKPLACE

Our team comprises people from diverse backgrounds who share our 'BURSA' core values of Building Relationships, United to Achieve, Responsibility, Simplicity and Agility. In embracing these values, we maintain high standards of ethics and integrity and our commitment to deliver. We aim to attract the best talents, and retain them by providing various opportunities to enhance their capability and capacity while ensuring workplace satisfaction, safety and wellness.

Nurturing our Human Capital Through Sustainable
Talent Development

Bursa Malaysia's long-term success depends on the quality of our human capital and, more specifically, on the ability of our employees to execute our business strategies efficiently and effectively. We therefore place great emphasis on developing the capabilities of our people and honing their talents. Today, as we strive to achieve leadership in the ASEAN marketplace, we are stepping up our efforts to increase not just the capabilities of our employees but also their sense of ownership of our common goals.

Towards this end, we have created a '3D' motto, with the aim of nurturing a culture that is dynamic, driven and dependable. Group Human Resources (GHR), meanwhile, supports various initiatives that have been implemented as part of our Strategic Intents.

Incentivising and Rewarding Performance

We practise a system of total rewards management based on the philosophy of pay for performance. Employees are rewarded for excellence, productivity improvements and contribution towards the achievement of the organisation's immediate and long-term objectives. Total rewards management encompasses not only compensation and benefits but also performance recognition, work-life integration as well as professional development and career progression. This creates a motivated workforce that is more likely to contribute to the organisation's future successes.

Meanwhile, the Bursa@work programme helps employees understand how their daily actions contribute to the success of the team, business group and Company as a whole. The programme further recognises employees who embody Bursa Malaysia's values which underpin our corporate culture and contribute to the achievement of our mission.

Our compensation and benefits structure is made up of three major components, namely base pay, short-term incentives (STI) and long-term incentives (LTI). To stay true to our philosophy, merit increments, performance bonuses and employee share options are linked to our organisation and performance through the Corporate Balanced Scorecard, and are administered equitably.

Staff are awarded annual salary increments and performance bonuses based on the Company's and individual performances. Every year, the merit review and salary planning are dictated by approved budget provisions which in turn are based on Bursa Malaysia's performance forecast and market projection. This reward strategy has been used to attract and retain the best talent.

Following the expiry of the Employee Share Option Scheme on 8 March 2010, a share grant plan (SGP) was introduced in 2011 as an LTI programme. The SGP has two components – a Restricted Shares Plan (RSP) and a Performance Shares Plan (PSP). Key features of both plans are the performance period, vesting period, annual grants, performance qualifier, performance conditions and performance measurement.

Following the first RSP exercise in July 2011, a second annual RSP grant (2012 RSP Grant) was made on 2 July 2012 as a further incentive to reward and recognise employees contribution.

All permanent managers or those on fixed-term employment who had been confirmed in writing as at the offer date were eligible for the 2012 RSP Grant. As for the PSP, only employees who are accountable for or contribute towards Bursa Malaysia's corporate performance, including the PSP targets, can be selected to participate in the plan. In this sense, the PSP is an incentive for key Senior Management and selected executives who are in a position to drive Bursa Malaysia's growth. The performance shares will vest at the end of a three-year performance period subject to the fulfilment of the approved performance targets.

Staff Training and Development

Group Human Resources (GHR) has developed a structured developmental programme to optimise and develop our people skills by strengthening both their capabilities and competencies. During the year, 252 developmental programmes were held locally and abroad covering both soft and functional skills. Compared to our minimum target of three training days, our employees registered 4.9 training days.

Towards nurturing future industry leaders, we continued the Management Associates Programme known as Trailblazers, which offers graduates the opportunity to obtain the professional Certificate in Finance, Accounting and Business while gaining invaluable on-the-job training at Bursa Malaysia.

Just as we are committed to nurturing our talent and future leaders, we also believe that a core leadership requirement is the ability to develop others. Coaching, mentoring and post-training knowledge transfer, therefore, form part of the learning culture at Bursa Malaysia and have proven to be invaluable in developing the workforce throughout the organisation.

To support our developmental programmes, we have a training facility within our premises for in-house programmes. Our Knowledge Centre, meanwhile, is equipped with on-line research facilities and houses extensive reading material for our staff's reference.

Work-life Balance for Sustained Success

To attract and retain the best talent, we are mindful of the need to balance the needs of our staff from both the professional and personal perspectives. Towards this end, we encourage our employees to adopt a healthy lifestyle and strike an optimum work-life balance. We provide facilities such as a fully equipped gymnasium and a multifunctional indoor court which accommodates games such as futsal, sepak takraw, badminton and netball.

We take pride in nurturing a spirit of togetherness by celebrating local festivities with our employees and rewarding their hard work at our annual dinners. Such events contribute towards a sense of belonging to the organisation which increases productivity and promotes talent retention.

Succession Planning & Talent Development

A Succession Planning Framework has been developed to ensure continuity of key positions and to provide guidance for developmental activities. The framework governs the process of identifying critical roles, crafting successor profiles, identifying successors and customising development programmes.



Supporting the Succession Planning Framework, GHR in 2012 embarked on a consultative programme to craft Individual Development Plans (IDPs) for middle management. The IDPs identify the most appropriate development interventions which will form the foundation for short to middle-term career progression. The IDPs were the direct result of discussions held with employees, who had earlier attended Competencies Development Workshops organised by GHR.

Succession Planning which forms one of Bursa Malaysia's Strategic Initiatives geared towards sustainable growth, incorporates organisational and business operations perspectives. In light of this, GHR designed Customised Accelerated Development Programmes offering conventional and non-conventional development interventions.

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Through the Customised Accelerated Development Programmes, potential leaders prepare for future roles via practical experience and hands-on learning. The development plans are crafted based on behavioural and technical competencies.

Bursa Malaysia also recently put in place a framework to enhance the behavioural competencies of all staff. This supports the creation of a high-performance culture as required of a leading ASEAN marketplace.

Fostering Teamwork Towards a Common Vision

It is imperative to have an engaged workforce in order to reinforce our core values and work towards the organisation's business goals.

To ascertain the effectiveness of our efforts, we conduct an annual Employee Engagement Survey (EES). In 2012, the focus of our EES was on Leadership and Organisation Culture & Values, as we believed it would provide us an insight into our employees' views on the above two values so that their concerns can be addressed promptly and effectively. The 2012 Employee Engagement score was marginally better than Bursa Malaysia's average since 2008. The results also indicated specific areas of opportunity to enhance employee engagement.

Leadership and Organisation Culture & Values also formed part of our Management Committee (MANCO) members' KPIs to further foster teamwork and interaction among employees.

Providing Equal Opportunity

Bursa Malaysia believes in being an equal opportunity employer, hence we will be guided by the principles of meritocracy and fairness in all decisions regarding employment, transfer, promotion and the professional development of our people. In terms of gender equality, in 2012, our total male to female employee ratio was 55:45 while in Senior Management, we had achieved equal gender representation.

MOVING FORWARD

Bursa Malaysia will continue to promote high standards of integrity and governance and encourage greater disclosure on sustainability within corporate Malaysia. Our stakeholder engagement will continue to serve as a platform for us to identify, assess, prioritise, address, improve and communicate our sustainability issues, practices and performance.