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competing business with TNB or its subsidiaries, have not been convicted of any offence (other than minor traffic offences) within the past five (5) years and have not had any public sanction or penalty imposed by the relevant regulatory bodies in FY2023. CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 133 EMPOWERING A NET ZERO 2050 FUTURE TOGETHER    Scan to read our ESG stories 134 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 SENIOR MANAGEMENT AT A GLANCE IR. MAHATHIR NOR BIN ISMAIL Chief Distribution Network Officer MOHD ZARIHI BIN MOHD HASHIM Chief New Energy Officer FELDATUN BINTI SHARIF ChiefPeople Officer NAZMI BIN OTHMAN Chief Financial Officer IR. MUHAMAD NAZRI BIN PAZIL Managing Director, TNB Power Generation Sdn. Bhd. DATUK AHMAD HUSHAIRI BIN IBRAHIM Chief Global Business SolutionsOfficer DATUK IR. MEGAT JALALUDDIN BIN MEGAT HASSAN President/ Chief Executive Officer 1 2 3 4 5 6 7 135 CREATING VALUE THROUGH STRONG GOVERNANCE Sec 5 SENIOR MANAGEMENT AT A GLANCE KAMAL ARIFIN BIN A. RAHMAN ChiefRetail Officer DATUK IR. TS. SHAMSUL BIN AHMAD Chief Regulatory & Stakeholder Management Officer ALI MUNAWAR BIN HAJI SALIM Company Secretary LEO PUI YONG Chief Sustainability Officer AZLAN BIN AHMAD Chief Information Officer AMIR MAHMOD BIN ABDULLAH Chief Procurement Officer HASMARIZAL BIN HASSAN Chief Grid Officer 8 9 10 11 12 13 14 Additional Information on Our Management Team: (i) None of our Management Team has any family relationship with any Director and/or major shareholder of TNB. (ii) None of our Management Team has any conflict of interest or potential conflict of interest, including interest in any competing business with TNB or its subsidiaries. (iii) None of our Management Team has been convicted of any offences (save for minor traffic offences) within the past five (5) years, nor has been imposed any public sanction or penalty by the relevant regulatory bodies during the Financial Year under review. MEMBERSHIP KEY Group Executive Management Committee Group Management Tender Committee
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AHMAD Chief Information Officer AMIR MAHMOD BIN ABDULLAH Chief Procurement Officer HASMARIZAL BIN HASSAN Chief Grid Officer 8 9 10 11 12 13 14 Additional Information on Our Management Team: (i) None of our Management Team has any family relationship with any Director and/or major shareholder of TNB. (ii) None of our Management Team has any conflict of interest or potential conflict of interest, including interest in any competing business with TNB or its subsidiaries. (iii) None of our Management Team has been convicted of any offences (save for minor traffic offences) within the past five (5) years, nor has been imposed any public sanction or penalty by the relevant regulatory bodies during the Financial Year under review. MEMBERSHIP KEY Group Executive Management Committee Group Management Tender Committee GroupPeople Committee Investment Executive Committee Commodity Procurement Executive Committee Green Lane Tender Committee GEMC GMTC GPC IEC COMPEC GL TC TENAGA NASIONAL BERHAD Integrated Annual Report 2023 136 SENIORMANAGEMENT PROFILE President/Chief Executive Officer DATUK IR. MEGAT JALALUDDIN BIN MEGAT HASSAN Date of Appointment: 1 March 2024 58 Male Malaysian Qualification(s): • Member of the Institution of Engineers, Malaysia • Certified Professional Engineer of the Board of Engineers (BEM), Malaysia • Bachelor of Engineering (Hons) (Electrical Engineering), University of Wollongong, Sydney, Australia Working Experience: • A visionary leader with over three decades of experience, Datuk Ir. Megat Jalaluddin is known at TNB for his exceptional ability to lead and transform various aspects of the organisation, including operations, strategy, and customer engagement. • In his previous role as Chief Operating Officer, he played a pivotal part in expanding TNB’s business and championing its shift towards sustainable energy, aligning with Malaysia’s 2050 carbon neutrality ambitions. • When he was Chief Strategy and Ventures Officer , he was instrumental in developing TNB’s strategic initiatives and exploring
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March 2024 58 Male Malaysian Qualification(s): • Member of the Institution of Engineers, Malaysia • Certified Professional Engineer of the Board of Engineers (BEM), Malaysia • Bachelor of Engineering (Hons) (Electrical Engineering), University of Wollongong, Sydney, Australia Working Experience: • A visionary leader with over three decades of experience, Datuk Ir. Megat Jalaluddin is known at TNB for his exceptional ability to lead and transform various aspects of the organisation, including operations, strategy, and customer engagement. • In his previous role as Chief Operating Officer, he played a pivotal part in expanding TNB’s business and championing its shift towards sustainable energy, aligning with Malaysia’s 2050 carbon neutrality ambitions. • When he was Chief Strategy and Ventures Officer , he was instrumental in developing TNB’s strategic initiatives and exploring newbusiness opportunities. • He also made significant contributions to TNB Retail’s customer service and business growth during his tenure as Chief Retail Officer. • Datuk Ir. Megat Jalaluddin actively contributes to various advisory panels, including the Industrial Advisory Panel at the Faculty of Mechanical Engineering, Universiti Teknologi MARA, and the Bachelor of Electrical and Electronics Engineering programme at the University of Technology Petronas. • He also contributes his expertise as a member of the Advisory Board of the Asia IoT Business Platform and as the leader of the SIRIM Malaysia Technical Working Group on Electrical Energy Measurement. • Datuk Ir. Megat Jalaluddin is a recognised member of the International Electrotechnical Committee - Technical Committee No. 13, CIRED Malaysia Chapter, and The Institute of Asset Management, demonstrating his commitment to professional excellence and industry leadership. He is also a registered Professional Engineer in Malaysia. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): COMPEC GL TC IEC GEMC GPC
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Panel at the Faculty of Mechanical Engineering, Universiti Teknologi MARA, and the Bachelor of Electrical and Electronics Engineering programme at the University of Technology Petronas. • He also contributes his expertise as a member of the Advisory Board of the Asia IoT Business Platform and as the leader of the SIRIM Malaysia Technical Working Group on Electrical Energy Measurement. • Datuk Ir. Megat Jalaluddin is a recognised member of the International Electrotechnical Committee - Technical Committee No. 13, CIRED Malaysia Chapter, and The Institute of Asset Management, demonstrating his commitment to professional excellence and industry leadership. He is also a registered Professional Engineer in Malaysia. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): COMPEC GL TC IEC GEMC GPC GMTCManagingDirector,TNBPowerGeneration Sdn.Bhd. IR. MUHAMAD NAZRI BIN PAZIL Date of Appointment: 1 July 2023 54 Male Malaysian Qualification(s): • Executive MBA from Melbourne Business School. • Master of Science from Strathclyde University. • 1st Class Honours bachelor’s degree in Electro-Mechanical Power Engineering from Loughborough University. Working Experience: • Currently, Ir. Muhamad Nazri bin Pazil is the Managing Director of TNB Power Generation Sdn. Bhd. (TNB Genco), where he is dedicated to making TNB Genco the leading clean energy provider in Southeast Asia. He brings over 30 years of experience in energy, utility, and manufacturing. • He played a crucial role as the Project Director in commissioning one of the world’s largest and most efficient gas turbines in Pasir Gudang, Johor. • He was a key member of the Sabah Electricity Sdn. Bhd. (SESB) leadership team, focusing on improving GTD, System Operation, and achieving SAIDI below 180 mins. • He contributed to the formation and development of TNB Janamanjung, Malaysia’s first Independent Power Producer, and was involved in the operational takeover of Saudi Arabia’s first Independent
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• Currently, Ir. Muhamad Nazri bin Pazil is the Managing Director of TNB Power Generation Sdn. Bhd. (TNB Genco), where he is dedicated to making TNB Genco the leading clean energy provider in Southeast Asia. He brings over 30 years of experience in energy, utility, and manufacturing. • He played a crucial role as the Project Director in commissioning one of the world’s largest and most efficient gas turbines in Pasir Gudang, Johor. • He was a key member of the Sabah Electricity Sdn. Bhd. (SESB) leadership team, focusing on improving GTD, System Operation, and achieving SAIDI below 180 mins. • He contributed to the formation and development of TNB Janamanjung, Malaysia’s first Independent Power Producer, and was involved in the operational takeover of Saudi Arabia’s first Independent Waterand Power Producer. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): IEC GEMC GPC CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 137 SENIOR MANAGEMENT PROFILE Date of Appointment: 16 April 2024 51 Male Malaysian Chief Grid Officer HASMARIZAL BIN HASSAN Qualification(s): • Master of Business Administration (MBA) from University Tenaga Nasional/Melbourne Business School • Master of Engineering (M.Eng) from Imperial College of Science, Technology & Medicine, University of London Working Experience: • Encik Hasmarizal bin Hassan, the Chief Grid Officer (CGO), brings over 27 years of experience in Engineering & Design, Operation & Maintenance, and Asset Development for the Grid Division. • His strategic leadership and technical expertise have been instrumental in enhancing grid infrastructure and reliability. • Encik Hasmarizal is also responsible for ensuring the long-term sustainable growth and profitablity of the Division through effective management and optimisation of resources. He plays a major role in guiding TNB towards realising the ASEAN Power Grid in addition to driving the Energy Transition agenda. He also plays vital role in ensuring
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Master of Business Administration (MBA) from University Tenaga Nasional/Melbourne Business School • Master of Engineering (M.Eng) from Imperial College of Science, Technology & Medicine, University of London Working Experience: • Encik Hasmarizal bin Hassan, the Chief Grid Officer (CGO), brings over 27 years of experience in Engineering & Design, Operation & Maintenance, and Asset Development for the Grid Division. • His strategic leadership and technical expertise have been instrumental in enhancing grid infrastructure and reliability. • Encik Hasmarizal is also responsible for ensuring the long-term sustainable growth and profitablity of the Division through effective management and optimisation of resources. He plays a major role in guiding TNB towards realising the ASEAN Power Grid in addition to driving the Energy Transition agenda. He also plays vital role in ensuring TNBprovides timely and reliable supply to Data Centres. • He serves as a board member of TNBPG Hydro Nenggiri Sdn. Bhd. and Tenaga Switchgear Sdn. Bhd. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): Date of Appointment: 1 March 2024 48 Male Malaysian Chief Distribution Network Officer IR. MAHATHIR NOR BIN ISMAIL Qualification(s): • Master of Business Administration from UNITEN and Melbourne Business School. • Master of Electrical Engineering from Universiti Teknologi Malaysia (UTM). • Bachelor of Engineering (Electrical) from the University of Southampton, UK. Working Experience: • Ir. Mahathir Nor bin Ismail has over 24 years of service at TNB, encompassing various engineering and managerial roles. Some of his top leadership positions include Managing Director of TNB Energy Services (TNBES) and TNB Engineering Corporation Sdn. Bhd. (TNEC). • He serves as a board member of TNB Retail Sdn. Bhd. (TRSB), TNB Energy Services Sdn. Bhd., and several joint-venture investment entities such as FTJ Bio Power Sdn. Bhd. and Metrosphere Hydro Tersat Sdn. Bhd. •
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1 March 2024 48 Male Malaysian Chief Distribution Network Officer IR. MAHATHIR NOR BIN ISMAIL Qualification(s): • Master of Business Administration from UNITEN and Melbourne Business School. • Master of Electrical Engineering from Universiti Teknologi Malaysia (UTM). • Bachelor of Engineering (Electrical) from the University of Southampton, UK. Working Experience: • Ir. Mahathir Nor bin Ismail has over 24 years of service at TNB, encompassing various engineering and managerial roles. Some of his top leadership positions include Managing Director of TNB Energy Services (TNBES) and TNB Engineering Corporation Sdn. Bhd. (TNEC). • He serves as a board member of TNB Retail Sdn. Bhd. (TRSB), TNB Energy Services Sdn. Bhd., and several joint-venture investment entities such as FTJ Bio Power Sdn. Bhd. and Metrosphere Hydro Tersat Sdn. Bhd. • Previously,he also held directorship positions in over ten boards of TNB’s subsidiaries. • His current ambition is to elevate the Distribution Network Division in terms of business and operational performance, contributing to government initiatives like the National Energy Transition Roadmap (NETR). • Ir. Mahathir is dedicated to enhancing the Distribution Network’s visibility, controllability, and energy management, thus enabling an accelerated energy transition and facilitating customer participation in TNB’s initiatives. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GL TC GEMC GPC GMTC GL TC GEMC GPC GMTC TENAGA NASIONAL BERHAD Integrated Annual Report 2023 138 SENIOR MANAGEMENT PROFILE Date of Appointment: 1 August 2018 60 Male Malaysian Chief Financial Officer NAZMI BIN OTHMAN Qualification(s): • Fellow of the Certified Practising Accountants (CPA Australia). • Certified Public Accountant of the Malaysian Institute of Certified Public Accountants (MICPA). • Chartered Accountant of the Malaysian Institute of Accountants (MIA). • Bachelor of Commerce (Accounting) from the University of
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National Energy Transition Roadmap (NETR). • Ir. Mahathir is dedicated to enhancing the Distribution Network’s visibility, controllability, and energy management, thus enabling an accelerated energy transition and facilitating customer participation in TNB’s initiatives. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GL TC GEMC GPC GMTC GL TC GEMC GPC GMTC TENAGA NASIONAL BERHAD Integrated Annual Report 2023 138 SENIOR MANAGEMENT PROFILE Date of Appointment: 1 August 2018 60 Male Malaysian Chief Financial Officer NAZMI BIN OTHMAN Qualification(s): • Fellow of the Certified Practising Accountants (CPA Australia). • Certified Public Accountant of the Malaysian Institute of Certified Public Accountants (MICPA). • Chartered Accountant of the Malaysian Institute of Accountants (MIA). • Bachelor of Commerce (Accounting) from the University of Wollongong,Australia. Working Experience: • Encik Nazmi bin Othman has over 30 years of experience in various financial roles, which culminated in his appointment as Chief Investment Management Officer in 2014. • Since 1 August 2018, he has been the Chief Financial Officer, Group Finance at TNB. His responsibilities includes monitoring finance-related activities and advising the CEO and the Board of Directors on key financial decisions. • Before joining TNB, Encik Nazmi held several positions in other companies, including Financial Controller of Port Dickson Power Sdn. Bhd., an independent power producer, Island & Peninsular Berhad and Malaysian Resources Corporation Berhad (MRCB). • In his role as Chief Financial Officer, he leads Group Finance as a strategic financial partner, actively contributing to TNB’s business aspirations and the achievement of the Group’s objectives. He focuses on continuous improvement and review in key financial areas such as finance policies and procedures, system efficiency and processes, strategic financial risks, and staff competency. Directorships In Public
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1 August 2018, he has been the Chief Financial Officer, Group Finance at TNB. His responsibilities includes monitoring finance-related activities and advising the CEO and the Board of Directors on key financial decisions. • Before joining TNB, Encik Nazmi held several positions in other companies, including Financial Controller of Port Dickson Power Sdn. Bhd., an independent power producer, Island & Peninsular Berhad and Malaysian Resources Corporation Berhad (MRCB). • In his role as Chief Financial Officer, he leads Group Finance as a strategic financial partner, actively contributing to TNB’s business aspirations and the achievement of the Group’s objectives. He focuses on continuous improvement and review in key financial areas such as finance policies and procedures, system efficiency and processes, strategic financial risks, and staff competency. Directorships In Public Companiesand Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): COMPEC IEC GEMC GPC GMTC Chief Retail Officer KAMAL ARIFIN BIN A. RAHMAN Date of Appointment: 3 October 2022 57 Male Malaysian Qualification(s): • Master of Business Administration from the University of Athens, Ohio, United States • Bachelor of Science in Electrical Engineering from the University of Texas at El Paso (UTEP), United States • Member of International Conference On Electricity Distribution (CIRED) Malaysia • Chairman of HAPUA 2024 - ASEAN level for Customer Service Sector (Working Group on Human Resource) Working Experience: • Encik Kamal Arifin held more than 33 years of diverse experience within TNB encompassing roles such as Special Officer in the offices of the TNB Chairman, Senior Vice President, Chief Operating Officer of Malaysia Transformer Manufacturing, State General Manager (Negeri Sembilan) for TNB Distribution, and Head of Customer Services (Johor) for Retail Division. • Before his elevation to the position of Chief Retail Officer, he was the Head of Centralised Operations and Centre of Excellence in the
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Ohio, United States • Bachelor of Science in Electrical Engineering from the University of Texas at El Paso (UTEP), United States • Member of International Conference On Electricity Distribution (CIRED) Malaysia • Chairman of HAPUA 2024 - ASEAN level for Customer Service Sector (Working Group on Human Resource) Working Experience: • Encik Kamal Arifin held more than 33 years of diverse experience within TNB encompassing roles such as Special Officer in the offices of the TNB Chairman, Senior Vice President, Chief Operating Officer of Malaysia Transformer Manufacturing, State General Manager (Negeri Sembilan) for TNB Distribution, and Head of Customer Services (Johor) for Retail Division. • Before his elevation to the position of Chief Retail Officer, he was the Head of Centralised Operations and Centre of Excellence in the RetailDivision. • As Chief Retail Officer, Encik Kamal Arifin is at the forefront of TNB’s ambitious journey to become a leading Retail company of the future. His responsibilities include driving the growth of TNB’s new retail business, which extends beyond the core focus on kilowatt-hours to encompass new products and services. Additionally, he is committed to enhancing customer experience through the expansion of TNB’s digital services. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GL TC IEC GEMC GPC GMTC CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 139 SENIOR MANAGEMENT PROFILE Chief People Officer FELDATUN BINTI SHARIF Date of Appointment: 1 April 2024 51 Female Malaysian Qualification(s): • Bachelor of Art, Art & Social Science (Majoring in Social Administration), with Honours, Universiti Malaya, Malaysia. Working Experience: • Puan Feldatun binti Sharif is a highly experienced HR Professional with 27 years of experience in various aspects of HR including HR Strategy, Organisational Development, Workforce Planning, Talent Acquisition, Development and Deployment, HR Management & Operations, and
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to encompass new products and services. Additionally, he is committed to enhancing customer experience through the expansion of TNB’s digital services. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GL TC IEC GEMC GPC GMTC CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 139 SENIOR MANAGEMENT PROFILE Chief People Officer FELDATUN BINTI SHARIF Date of Appointment: 1 April 2024 51 Female Malaysian Qualification(s): • Bachelor of Art, Art & Social Science (Majoring in Social Administration), with Honours, Universiti Malaya, Malaysia. Working Experience: • Puan Feldatun binti Sharif is a highly experienced HR Professional with 27 years of experience in various aspects of HR including HR Strategy, Organisational Development, Workforce Planning, Talent Acquisition, Development and Deployment, HR Management & Operations, and ChangeManagement. • She played a key role in TNB’s Value Unlocking Programme in 2015 as Head of Organisation Design & Workforce Planning, contributing to a major transformation exercise. • In 2018, she took on the role of Project Director for the formation of the TNB Integrated Shared Service Centre. • Puan Feldatun led the reorganisation of TNB’s macro structure in 2020 to establish TNB Power Generation and TNB Retail under Project Needle. • Prior to becoming Chief People Officer in 2024, she held critical roles such as Head of People Strategy & Organisation Effectiveness in 2021 and Head of Operations, TNB Global Business Solutions (TGBS) in 2023. • Puan Feldatun is responsible for crafting and deploying effective people management strategies at TNB. This is done through developing and implementing high-impact policies, initiatives and programmes to foster high employee experience, catalysing our people towards achieving TNB’s purpose and aspiration. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC GMTC Chief New
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of the TNB Integrated Shared Service Centre. • Puan Feldatun led the reorganisation of TNB’s macro structure in 2020 to establish TNB Power Generation and TNB Retail under Project Needle. • Prior to becoming Chief People Officer in 2024, she held critical roles such as Head of People Strategy & Organisation Effectiveness in 2021 and Head of Operations, TNB Global Business Solutions (TGBS) in 2023. • Puan Feldatun is responsible for crafting and deploying effective people management strategies at TNB. This is done through developing and implementing high-impact policies, initiatives and programmes to foster high employee experience, catalysing our people towards achieving TNB’s purpose and aspiration. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC GMTC Chief New EnergyOfficer MOHD ZARIHI BIN MOHD HASHIM Date of Appointment: 12 January 2022 47 Male Malaysian Qualification(s): • Master of Business Administration from INSEAD • Bachelor of Engineering (Honours) in Electrical and Electronic Engineering from University College London Working Experience: • Encik Mohd Zarihi plays a pivotal role in the New Energy Division, spearheading the expansion of TNB’s renewable energy ventures, both domestically and internationally. • Before his tenure at TNB, Encik Mohd Zarihi occupied senior positions in investment and private equity firms. He also brings a wealth of experience in management and IT consultancy, garnered from his work with various local and international consultancies. • In the early stages of his career, he served as an engineer at a leading semiconductor corporation. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC GMTC TENAGA NASIONAL BERHAD Integrated Annual Report 2023 140 SENIOR MANAGEMENT PROFILE Date of Appointment: 1 June 2023 45 Female Malaysian Chief Sustainability Officer LEO PUI YONG Qualification(s): •
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Zarihi plays a pivotal role in the New Energy Division, spearheading the expansion of TNB’s renewable energy ventures, both domestically and internationally. • Before his tenure at TNB, Encik Mohd Zarihi occupied senior positions in investment and private equity firms. He also brings a wealth of experience in management and IT consultancy, garnered from his work with various local and international consultancies. • In the early stages of his career, he served as an engineer at a leading semiconductor corporation. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC GMTC TENAGA NASIONAL BERHAD Integrated Annual Report 2023 140 SENIOR MANAGEMENT PROFILE Date of Appointment: 1 June 2023 45 Female Malaysian Chief Sustainability Officer LEO PUI YONG Qualification(s): • BachelorDegree in Electrical & Electronic Engineering from Universiti Tenaga Nasional (UNITEN) • Master in Energy & Power System from University Malaya (UM) • Certified Internal Auditor (CIA) • RIMS Certified Risk Management Professional Working Experience: • Ms Leo Pui Yong has served more than two decades at TNB and held various positions which include engineering, internal auditing and managerial roles. • Prior to current appointment, she was the Chief Risk Officer of TNB. • As Chief Sustainability Officer, she is responsible in leading the company’s sustainability efforts and ensuring that TNB’s operations align with the company’s sustainability goal towards Net Zero Emission aspiration by 2050. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): IEC GEMC GPC GMTC Date of Appointment: Male Malaysian Chief Regulatory & Stakeholder Management Officer DATUK IR. TS. SHAMSUL BIN AHMAD Date of Appointment: 12 December 2022 58 Male Malaysian Qualification(s): • Bachelor of Science in Mechanical Engineering from North Carolina A&T State University, United States of America • Master
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two decades at TNB and held various positions which include engineering, internal auditing and managerial roles. • Prior to current appointment, she was the Chief Risk Officer of TNB. • As Chief Sustainability Officer, she is responsible in leading the company’s sustainability efforts and ensuring that TNB’s operations align with the company’s sustainability goal towards Net Zero Emission aspiration by 2050. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): IEC GEMC GPC GMTC Date of Appointment: Male Malaysian Chief Regulatory & Stakeholder Management Officer DATUK IR. TS. SHAMSUL BIN AHMAD Date of Appointment: 12 December 2022 58 Male Malaysian Qualification(s): • Bachelor of Science in Mechanical Engineering from North Carolina A&T State University, United States of America • Master ofBusiness Administration from Universiti Tenaga Nasional, Malaysia • Professional Technologist with the Malaysia Board of Technologists (MBOT) • Certified Professional Engineer with the Board of Engineers Malaysia (BEM) • Adjunct Professor at UNITEN Business School (UBS), Universiti Tenaga Nasional, Malaysia Working Experience: • Datuk Ir. T s. Shamsul bin Ahmad’s impressive tenure at TNB spans over 35 years, during which he has held a myriad of significant roles. Notably, he served as the Managing Director of TNB Janamanjung Sdn. Bhd. (TNBJ) for a decade. • Prior to his current role, he was the Managing Director of TNB Fuel Services Sdn. Bhd. • In his current position as Chief Regulatory & Stakeholder Management Officer, Datuk Ir. T s. Shamsul is instrumental in sculpting the future of the industry’s regulatory framework. His role is pivotal in fostering high levels of trust among stakeholders, a crucial factor in realising TNB’s aspirations and vision. • He currently serves as the Country Coordinator for Malaysia within HAPUA (Heads of ASEAN Power Utilities/Authorities). Directorships In Public Companies and Listed Issuers: No directorships in
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Ahmad’s impressive tenure at TNB spans over 35 years, during which he has held a myriad of significant roles. Notably, he served as the Managing Director of TNB Janamanjung Sdn. Bhd. (TNBJ) for a decade. • Prior to his current role, he was the Managing Director of TNB Fuel Services Sdn. Bhd. • In his current position as Chief Regulatory & Stakeholder Management Officer, Datuk Ir. T s. Shamsul is instrumental in sculpting the future of the industry’s regulatory framework. His role is pivotal in fostering high levels of trust among stakeholders, a crucial factor in realising TNB’s aspirations and vision. • He currently serves as the Country Coordinator for Malaysia within HAPUA (Heads of ASEAN Power Utilities/Authorities). Directorships In Public Companies and Listed Issuers: No directorships in publiccompanies and listed issuers. Management Committee(s): COMPEC IEC GEMC GPC CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 141 Chief Information Officer AZLAN BIN AHMAD Date of Appointment: 18 July 2022 53 Male Malaysian Qualification(s): • Master of Business Administration (MIS) from International Islamic University Malaysia (IIUM), Malaysia. • Bachelor of Science (Computation) from the University of Manchester Institute of Science and Technology (UMIST), United Kingdom. • BTEC National Diploma in Computer Studies from Coventry Technical College, United Kingdom. • Additional learning experiences include the Harvard Premier Business Management Program, Gartner Leadership Development Academy, and BCG Leadership Institute. Working Experience: • Encik Azlan bin Ahmad has a distinguished 30-year career in TNB, mainly in the ICT Division, demonstrating his comprehensive expertise in IT & Telecommunication management. • As Chief Information Officer, he directs TNB’s IT & Telecommunication strategy and operations, covering the entire ICT value chain from IT infrastructure and network telecommunication to applications and cybersecurity. • He plays a critical role in implementing secure and sustainable technology solutions
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from International Islamic University Malaysia (IIUM), Malaysia. • Bachelor of Science (Computation) from the University of Manchester Institute of Science and Technology (UMIST), United Kingdom. • BTEC National Diploma in Computer Studies from Coventry Technical College, United Kingdom. • Additional learning experiences include the Harvard Premier Business Management Program, Gartner Leadership Development Academy, and BCG Leadership Institute. Working Experience: • Encik Azlan bin Ahmad has a distinguished 30-year career in TNB, mainly in the ICT Division, demonstrating his comprehensive expertise in IT & Telecommunication management. • As Chief Information Officer, he directs TNB’s IT & Telecommunication strategy and operations, covering the entire ICT value chain from IT infrastructure and network telecommunication to applications and cybersecurity. • He plays a critical role in implementing secure and sustainable technology solutions acrossthe organisation, key to advancing TNB’s corporate digitalisation agenda. • Encik Azlan serves on the Board of Directors for TNB-IT Sdn. Bhd. and Allo Technology Sdn. Bhd., and is a member of the BEM IT Committee. • He holds an adjunct professorship at the College of Computing and Informatics (CCI), UNITEN, and serves as Chairman of the Advisory Panel for Tan Sri Leo Moggie Distinguished Chair in Energy Informatics and the UNITEN Advisory Panel for BSc. Graphics Multimedia. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC GMTC SENIOR MANAGEMENT PROFILE Chief Procurement Officer AMIR MAHMOD BIN ABDULLAH Date of Appointment: 1 January 2020 57 Male Malaysian Qualification(s): • Master of Science in Engineering Business Management (Integrated Graduate Development Scheme, IGDS), University of Warwick, United Kingdom/University of Technology, Malaysia • Bachelor of Engineering (Honours) in Electrical and Electronic Engineering, Brighton Polytechnic, United Kingdom • Postgraduate
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and is a member of the BEM IT Committee. • He holds an adjunct professorship at the College of Computing and Informatics (CCI), UNITEN, and serves as Chairman of the Advisory Panel for Tan Sri Leo Moggie Distinguished Chair in Energy Informatics and the UNITEN Advisory Panel for BSc. Graphics Multimedia. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC GMTC SENIOR MANAGEMENT PROFILE Chief Procurement Officer AMIR MAHMOD BIN ABDULLAH Date of Appointment: 1 January 2020 57 Male Malaysian Qualification(s): • Master of Science in Engineering Business Management (Integrated Graduate Development Scheme, IGDS), University of Warwick, United Kingdom/University of Technology, Malaysia • Bachelor of Engineering (Honours) in Electrical and Electronic Engineering, Brighton Polytechnic, United Kingdom • Postgraduate Diplomain Engineering Business Management (Integrated Manager Development Scheme, IMDS), University of Warwick, United Kingdom/University of Technology, Malaysia • Additional learning exposures include attachments at Melbourne Business School, Australia, National University of Singapore, and Disney University, Florida, United States of America Working Experience: • Encik Amir Mahmod commenced his career in 1988 with LLN/TNB and has accrued extensive experience across various domains including Customer Service, Maintenance, Planning and Construction, and leadership of numerous Cost and Profit Centres. • He has spearheaded key projects, notably the development of online application systems such as the Competency Based Performance Management System and Online Employee Feedback, as well as the Integrated Development of Proton City. • In 2009, he took the helm as Head of TNB Metering and Revenue Management. His career progressed further in 2014, where he was appointed as the inaugural Programme Director of TNB’s Smart Meter under Advanced Metering Infrastructure (AMI), a crucial component of the Connected Grid of the
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of Singapore, and Disney University, Florida, United States of America Working Experience: • Encik Amir Mahmod commenced his career in 1988 with LLN/TNB and has accrued extensive experience across various domains including Customer Service, Maintenance, Planning and Construction, and leadership of numerous Cost and Profit Centres. • He has spearheaded key projects, notably the development of online application systems such as the Competency Based Performance Management System and Online Employee Feedback, as well as the Integrated Development of Proton City. • In 2009, he took the helm as Head of TNB Metering and Revenue Management. His career progressed further in 2014, where he was appointed as the inaugural Programme Director of TNB’s Smart Meter under Advanced Metering Infrastructure (AMI), a crucial component of the Connected Grid of the Future.• In 2016, Encik Amir Mahmod played a pivotal role in turning around Tenaga Cable Industries Sdn. Bhd., a TNB subsidiary, transforming it into a profitable and sustainable enterprise. • His appointment as Programme Director of Procurement Hub Functions in 2018 was succeeded by his elevation to the role of Chief Procurement Officer in January 2020. • In 2023, he was honoured as CPO of the Year at the 6th Annual Chief Procurement Officer Summit and Award in Kuala Lumpur and was a top-six finalist for the Asia Pacific CPO Award at the Asia Pacific Procurement Congress 2023 in Singapore. • Encik Amir Mahmod is also a distinguished participant of TNB’s Leadership Drive programme and an accredited trainer in several business domains. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC COMPEC TENAGA NASIONAL BERHAD Integrated Annual Report 2023 142 SENIOR MANAGEMENT PROFILE Date of Appointment: 15 November 2021 61 Male Malaysian Chief Global Business Solutions Officer DATUK AHMAD HUSHAIRI BIN IBRAHIM Qualification(s): • Bachelor of Science (Electrical Engineering) from Syracuse
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in January 2020. • In 2023, he was honoured as CPO of the Year at the 6th Annual Chief Procurement Officer Summit and Award in Kuala Lumpur and was a top-six finalist for the Asia Pacific CPO Award at the Asia Pacific Procurement Congress 2023 in Singapore. • Encik Amir Mahmod is also a distinguished participant of TNB’s Leadership Drive programme and an accredited trainer in several business domains. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC COMPEC TENAGA NASIONAL BERHAD Integrated Annual Report 2023 142 SENIOR MANAGEMENT PROFILE Date of Appointment: 15 November 2021 61 Male Malaysian Chief Global Business Solutions Officer DATUK AHMAD HUSHAIRI BIN IBRAHIM Qualification(s): • Bachelor of Science (Electrical Engineering) from Syracuse University,New York. Working Experience: • Datuk Ahmad Hushairi bin Ibrahim has served for more than 38 years in TNB, holding various positions in the Distribution Division and the Retail Division with extensive operational and strategic management experience. • Prior to his current appointment, he has held various critical positions within TNB, including Billing & Customer Relationship Management (BCRM) Project Director, Head of Retail Operations and Head of Strategy for the Retail Division. • He was appointed as Chief Global Business Solutions Officer in 2021 and is responsible for the provision of shared services solutions for TNB and its subsidiaries. TNB shared services solutions comprise of Service Delivery, Security Services, Property Services, Fleet Management, Health Care and Corporate Affairs. • Datuk Ahmad Hushairi is also responsible for the provision of high quality and cost-effective centralised shared solutions, enabling the business entities within the TNB Group to focus on their core businesses. He is also part of various management committees within TNB. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers.
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critical positions within TNB, including Billing & Customer Relationship Management (BCRM) Project Director, Head of Retail Operations and Head of Strategy for the Retail Division. • He was appointed as Chief Global Business Solutions Officer in 2021 and is responsible for the provision of shared services solutions for TNB and its subsidiaries. TNB shared services solutions comprise of Service Delivery, Security Services, Property Services, Fleet Management, Health Care and Corporate Affairs. • Datuk Ahmad Hushairi is also responsible for the provision of high quality and cost-effective centralised shared solutions, enabling the business entities within the TNB Group to focus on their core businesses. He is also part of various management committees within TNB. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. ManagementCommittee(s): GL TC GEMC GPC GMTC Company Secretary ALI MUNAWAR BIN HAJI SALIM 54 Male Malaysian Qualification(s): • Chartered Company Secretary from the Institute of Chartered Secretaries and Administrators, United Kingdom • Associate of the Malaysian Institute of Chartered Secretaries and Administrators (MAICSA) • Diploma in Agribusiness from Universiti Pertanian Malaysia Working Experience: • Encik Ali Munawar, a graduate from Institut Profesional Baitulmal, Kuala Lumpur, has an extensive background in corporate compliance, having served as Senior Manager in the Corporate Compliance Unit at TNB from 2014 to 2023. In this role, he notably served as Assistant Company Secretary for various TNB Board Committees and the Management Committee, including the Board Finance and Investment Committee, Board Nomination and Remuneration Committee, Board Long Term Incentive Plan Committee, and the Group Executive Management Committee. • He started his career at TNB in 1996 and has over 29 years experience in corporate secretarial matters, corporate governance, compliance, special projects and due diligence exercises. • Encik Ali Munawar has been
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of Chartered Secretaries and Administrators (MAICSA) • Diploma in Agribusiness from Universiti Pertanian Malaysia Working Experience: • Encik Ali Munawar, a graduate from Institut Profesional Baitulmal, Kuala Lumpur, has an extensive background in corporate compliance, having served as Senior Manager in the Corporate Compliance Unit at TNB from 2014 to 2023. In this role, he notably served as Assistant Company Secretary for various TNB Board Committees and the Management Committee, including the Board Finance and Investment Committee, Board Nomination and Remuneration Committee, Board Long Term Incentive Plan Committee, and the Group Executive Management Committee. • He started his career at TNB in 1996 and has over 29 years experience in corporate secretarial matters, corporate governance, compliance, special projects and due diligence exercises. • Encik Ali Munawar has been instrumentalas Company Secretary or Joint Company Secretary for multiple major subsidiaries within the TNB Group, encompassing a diverse range of entities from power generation to technology and venture capital. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC Date of Appointment: 1 January 2024 CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 143 Single Buyer Grid System Operator Ring-fenced ORGANISATIONAL STRUCTURE ChiefInternalAuditorChief RiskOfficerChief Integrity DevelopmentOfficer BOARD OF DIRECTORS COMPANY SECRETARY BOARD COMMITTEES MANAGING DIRECTOR (TNB Power Generation Sdn. Bhd.) CHIEF GRID OFFICER (Grid Division) CHIEF DISTRIBUTION NETWORK OFFICER (Distribution Network Division) CHIEF RETAIL OFFICER (Retail Division) Core Business CHIEF STRATEGY & VENTURES OFFICER (Strategy & Ventures Division) CHIEFREGULATORY&STAKEHOLDER MANAGEMENTOFFICER(Regulatory&StakeholderManagementDivision) CHIEFSUSTAINABILITYOFFICER (SustainabilityDivision) CHIEF INFORMATION OFFICER (Information & Communication Technology Division) CHIEF PROCUREMENT OFFICER
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or Joint Company Secretary for multiple major subsidiaries within the TNB Group, encompassing a diverse range of entities from power generation to technology and venture capital. Directorships In Public Companies and Listed Issuers: No directorships in public companies and listed issuers. Management Committee(s): GEMC GPC Date of Appointment: 1 January 2024 CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 143 Single Buyer Grid System Operator Ring-fenced ORGANISATIONAL STRUCTURE ChiefInternalAuditorChief RiskOfficerChief Integrity DevelopmentOfficer BOARD OF DIRECTORS COMPANY SECRETARY BOARD COMMITTEES MANAGING DIRECTOR (TNB Power Generation Sdn. Bhd.) CHIEF GRID OFFICER (Grid Division) CHIEF DISTRIBUTION NETWORK OFFICER (Distribution Network Division) CHIEF RETAIL OFFICER (Retail Division) Core Business CHIEF STRATEGY & VENTURES OFFICER (Strategy & Ventures Division) CHIEFREGULATORY&STAKEHOLDER MANAGEMENTOFFICER(Regulatory&StakeholderManagementDivision) CHIEFSUSTAINABILITYOFFICER (SustainabilityDivision) CHIEF INFORMATION OFFICER (Information & Communication Technology Division) CHIEF PROCUREMENT OFFICER (Procurement& Supply Chain Division) CHIEF GLOBAL BUSINESS SOLUTIONS OFFICER (TNB Global Business Solutions Division) Non-Core Business administrative reporting Legend: Head (Legal Services) (Legal Services Department) Head (Corporate Communications) (Group Corporate Communications Department) CHIEF FINANCIAL OFFICER (Group Finance Division) CHIEF PEOPLE OFFICER (Group Human Resource Division) CHIEF NEW ENERGY OFFICER (New Energy Division) Non-Core Business CHIEF OPERATING OFFICER PRESIDENT/ CHIEF EXECUTIVE OFFICER TENAGA NASIONAL BERHAD Integrated Annual Report 2023 144 CHAIRMAN’SINTRODUCTIONTO CORPORATEGOVERNANCE Dear Shareholders, I am pleased to present the Corporate Governance Overview Statement for 2023. In alignment with our Corporate Governance Report, accessible on our corporate website, these statements highlight the Board’s thorough assessment of the Group’s operational landscape and strategic
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Ventures Division) CHIEFREGULATORY&STAKEHOLDER MANAGEMENTOFFICER(Regulatory&StakeholderManagementDivision) CHIEFSUSTAINABILITYOFFICER (SustainabilityDivision) CHIEF INFORMATION OFFICER (Information & Communication Technology Division) CHIEF PROCUREMENT OFFICER (Procurement& Supply Chain Division) CHIEF GLOBAL BUSINESS SOLUTIONS OFFICER (TNB Global Business Solutions Division) Non-Core Business administrative reporting Legend: Head (Legal Services) (Legal Services Department) Head (Corporate Communications) (Group Corporate Communications Department) CHIEF FINANCIAL OFFICER (Group Finance Division) CHIEF PEOPLE OFFICER (Group Human Resource Division) CHIEF NEW ENERGY OFFICER (New Energy Division) Non-Core Business CHIEF OPERATING OFFICER PRESIDENT/ CHIEF EXECUTIVE OFFICER TENAGA NASIONAL BERHAD Integrated Annual Report 2023 144 CHAIRMAN’SINTRODUCTIONTO CORPORATEGOVERNANCE Dear Shareholders, I am pleased to present the Corporate Governance Overview Statement for 2023. In alignment with our Corporate Governance Report, accessible on our corporate website, these statements highlight the Board’s thorough assessment of the Group’s operational landscape and strategic decisionsaimed at securing a sustainable position for the benefit of our key stakeholders. This effort is bolstered by our commitment to upholding exemplary standards of corporate governance, deeply embedded within our organisational ethos. The effectiveness of the Board’s leadership is assessed by the transparency and clarity evident in our actions, underscored by the standards, procedures, and culture we establish. This transparent approach reflects our dedication to accountability and integrity across all aspects of our operations. ENGAGING AND RECONNECTING In the past year, TNB introduced TNB Ways of Working (TWoW) to foster a more conducive work environment and address the needs of our workforce. Three (3) key components of TWoW include flexible and hybrid working arrangements, adaptable work hours, and a smart casual dress code, which became
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and strategic decisionsaimed at securing a sustainable position for the benefit of our key stakeholders. This effort is bolstered by our commitment to upholding exemplary standards of corporate governance, deeply embedded within our organisational ethos. The effectiveness of the Board’s leadership is assessed by the transparency and clarity evident in our actions, underscored by the standards, procedures, and culture we establish. This transparent approach reflects our dedication to accountability and integrity across all aspects of our operations. ENGAGING AND RECONNECTING In the past year, TNB introduced TNB Ways of Working (TWoW) to foster a more conducive work environment and address the needs of our workforce. Three (3) key components of TWoW include flexible and hybrid working arrangements, adaptable work hours, and a smart casual dress code, which became effectiveacross TNB as of 1 January 2023. This initiative aligns with TNB’s commitment to implementing flexible working practices throughout the organisation. Further, we resumed hybrid meetings for the Board and its Committees, as well as for many shareholder engagements. The upcoming 2024 Annual General Meeting (AGM) will be conducted virtually, and I eagerly anticipate connecting with those who are able to attend, while also addressing queries from those joining us virtually. The Board places significant emphasis on gathering input from employees, shareholders and broader stakeholders to ensure our actions resonate with those we collaborate with. This commitment is evident throughout this Integrated Annual Report, showcasing the extensive network through which we gather pertinent insights. At the Board level, we enhance our understanding of various perspectives through initiatives that complement our daily interactions within our business operations. Our Board agenda also encompasses a stakeholder evaluation of our strategic direction, an annual update on supply chains, confirmation of sustainability priorities, and a comprehensive report on key
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many shareholder engagements. The upcoming 2024 Annual General Meeting (AGM) will be conducted virtually, and I eagerly anticipate connecting with those who are able to attend, while also addressing queries from those joining us virtually. The Board places significant emphasis on gathering input from employees, shareholders and broader stakeholders to ensure our actions resonate with those we collaborate with. This commitment is evident throughout this Integrated Annual Report, showcasing the extensive network through which we gather pertinent insights. At the Board level, we enhance our understanding of various perspectives through initiatives that complement our daily interactions within our business operations. Our Board agenda also encompasses a stakeholder evaluation of our strategic direction, an annual update on supply chains, confirmation of sustainability priorities, and a comprehensive report on key stakeholderengagements. Notably, in 2023, our discussions included the development of Reimagining TNB 2.0, the Board Evaluation Assessment and a review of Non-Executive Directors’ remuneration by independent expert and broader considerations regarding energy affordability. DRIVING SUSTAINABILITY Our operational strategy is deeply rooted in Environmental, Social and Governance (ESG) principles, ensuring our enduring commitment to sustainable practices. ESG targets are seamlessly integrated into our performance metrics via an ESG scorecard, reflecting their pivotal role in driving organisational objectives. Continuously striving for excellence, we’ve enhanced our reporting standards to align with the Global Reporting Initiative (GRI) index and Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The robust support from our Board Committees further showcases our dedication to sustainability. The renaming of the Board Risk Committee (BRC) to the Board Sustainability and Risk Committee (BSRC), effective 25 August 2023, signals our heightened emphasis on sustainability. Collaborating
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Evaluation Assessment and a review of Non-Executive Directors’ remuneration by independent expert and broader considerations regarding energy affordability. DRIVING SUSTAINABILITY Our operational strategy is deeply rooted in Environmental, Social and Governance (ESG) principles, ensuring our enduring commitment to sustainable practices. ESG targets are seamlessly integrated into our performance metrics via an ESG scorecard, reflecting their pivotal role in driving organisational objectives. Continuously striving for excellence, we’ve enhanced our reporting standards to align with the Global Reporting Initiative (GRI) index and Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The robust support from our Board Committees further showcases our dedication to sustainability. The renaming of the Board Risk Committee (BRC) to the Board Sustainability and Risk Committee (BSRC), effective 25 August 2023, signals our heightened emphasis on sustainability. Collaborating closelywith the BSRC, the Board assumes responsibility for overseeing the strength of our sustainability and risk management frameworks, ensuring effective implementation to achieve strategic objectives and sustainability commitments. Simultaneously, the Sustainability and Energy Transition Council (SETC) intensifies our focus on ESG index performance and scrutinises climate resilience and adaptation plans, further bolstering our commitment to sustainable practices. Moreover, the Board’s endorsement of enhancements to the terms of reference of the Board Audit Committee (BAC), with a particular focus on sustainability-related matters, underscores our proactive approach. For a comprehensive overview of our ESG initiatives and activities over the past year, please refer to the dedicated section titled “Sustainability Statement” within this report. Detailed information regarding our approach to ESG can also be found in our standalone Sustainability Report. These documents provide valuable insights into our ongoing commitment to
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the strength of our sustainability and risk management frameworks, ensuring effective implementation to achieve strategic objectives and sustainability commitments. Simultaneously, the Sustainability and Energy Transition Council (SETC) intensifies our focus on ESG index performance and scrutinises climate resilience and adaptation plans, further bolstering our commitment to sustainable practices. Moreover, the Board’s endorsement of enhancements to the terms of reference of the Board Audit Committee (BAC), with a particular focus on sustainability-related matters, underscores our proactive approach. For a comprehensive overview of our ESG initiatives and activities over the past year, please refer to the dedicated section titled “Sustainability Statement” within this report. Detailed information regarding our approach to ESG can also be found in our standalone Sustainability Report. These documents provide valuable insights into our ongoing commitment to sustainabilityand the measures we undertake to uphold ESG principles. CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 145 CHAIRMAN’S INTRODUCTION TO CORPORATE GOVERNANCE EFFECTIVENESS In my capacity as Chairman, I bear the responsibility and shall persist in providing leadership to ensure the effective operation of the Board. I am fortunate to have the support of all Directors in this endeavour. The annual Board Evaluation Assessment (BEA) serves as a valuable tool for the Board to reflect on its functioning and identify areas for enhancement. This year, the BEA was conducted by an independent expert in accordance with Practice 6.1 of the Malaysian Code on Corporate Governance 2021 (MCCG). The findings from this assessment have yielded valuable insights that will guide us in further refining the operations and effectiveness of the Board. BOARD CHANGES The Board is committed to maintaining a diverse mix of skills, experience and expertise to effectively fulfill its responsibilities and address the dynamic landscape ahead. With a keen eye on succession planning,
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providing leadership to ensure the effective operation of the Board. I am fortunate to have the support of all Directors in this endeavour. The annual Board Evaluation Assessment (BEA) serves as a valuable tool for the Board to reflect on its functioning and identify areas for enhancement. This year, the BEA was conducted by an independent expert in accordance with Practice 6.1 of the Malaysian Code on Corporate Governance 2021 (MCCG). The findings from this assessment have yielded valuable insights that will guide us in further refining the operations and effectiveness of the Board. BOARD CHANGES The Board is committed to maintaining a diverse mix of skills, experience and expertise to effectively fulfill its responsibilities and address the dynamic landscape ahead. With a keen eye on succession planning, wehave established a robust process for selecting, nominating and appointing candidates to the Board. Entrusted with this responsibility, the Board Nomination and Remuneration Committee (BNRC) rigorously evaluates potential candidates, considering their capabilities, commitment and suitability for Board and Committee roles. This evaluation encompasses a range of factors, including diversity, skillsets, backgrounds, relevant experience and fit and proper assessment, ensuring a well-rounded composition of Board members. In line with our governance framework, the Board may appoint new Directors to fill vacancies or augment the existing Board structure. As per our Company’s Constitution, the Minister of Finance (Incorporated) (MoF Inc.), our Special Shareholder, holds the authority to appoint up to six (6) Directors. Currently, our Board comprises 12 members, including one (1) Executive Director and 11 Non-Executive Directors, with six (6) Independent Directors. These Independent Directors bring unbiased judgment, free from any conflicts of interest, ensuring robust decision-making processes. We continue to refine our Board composition, balancing experience, expertise and innovative perspectives. Several changes
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suitability for Board and Committee roles. This evaluation encompasses a range of factors, including diversity, skillsets, backgrounds, relevant experience and fit and proper assessment, ensuring a well-rounded composition of Board members. In line with our governance framework, the Board may appoint new Directors to fill vacancies or augment the existing Board structure. As per our Company’s Constitution, the Minister of Finance (Incorporated) (MoF Inc.), our Special Shareholder, holds the authority to appoint up to six (6) Directors. Currently, our Board comprises 12 members, including one (1) Executive Director and 11 Non-Executive Directors, with six (6) Independent Directors. These Independent Directors bring unbiased judgment, free from any conflicts of interest, ensuring robust decision-making processes. We continue to refine our Board composition, balancing experience, expertise and innovative perspectives. Several changes haveoccurred within the Board during the reporting period. Prior to the commencement of the 33rd Annual General Meeting on 18 May 2023, Datuk Rawisandran Narayanan expressed his intention, not to seek for re-election as an Independent Non-Executive Director, as per Clause 64(1) of the Company’s Constitution. Consequently, Ordinary Resolution 3 regarding his re-election as a Director was withdrawn at the AGM. In the course of the Financial Year, Muazzam bin Mohamad assumed the role of Non-Independent Non-Executive Director, representing Permodalan Nasional Berhad (PNB), a major shareholder of TNB, effective 1 July 2023. With over 15 years of experience at PNB, Muazzam has spearheaded numerous initiatives in corporate finance, mergers and acquisitions and corporate strategy, emphasising sustainability and governance. His appointment underscores our commitment to responsible investment practices. Shortly thereafter, Datuk Amran Hafiz bin Affifudin resigned as Non-Independent Non-Executive Director, representing Khazanah Nasional Berhad (Khazanah), a major shareholder of TNB, effective 1
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Rawisandran Narayanan expressed his intention, not to seek for re-election as an Independent Non-Executive Director, as per Clause 64(1) of the Company’s Constitution. Consequently, Ordinary Resolution 3 regarding his re-election as a Director was withdrawn at the AGM. In the course of the Financial Year, Muazzam bin Mohamad assumed the role of Non-Independent Non-Executive Director, representing Permodalan Nasional Berhad (PNB), a major shareholder of TNB, effective 1 July 2023. With over 15 years of experience at PNB, Muazzam has spearheaded numerous initiatives in corporate finance, mergers and acquisitions and corporate strategy, emphasising sustainability and governance. His appointment underscores our commitment to responsible investment practices. Shortly thereafter, Datuk Amran Hafiz bin Affifudin resigned as Non-Independent Non-Executive Director, representing Khazanah Nasional Berhad (Khazanah), a major shareholder of TNB, effective 1 September2023. Concurrently, Elaine Ong Yee Lynn concluded her role as Alternate Director to Datuk Amran Hafiz bin Affifudin, as stipulated in Clause 61(2) of the Company’s Constitution. Selvendran Katheerayson was subsequently appointed as Non-Independent Non-Executive Director, representing Khazanah, effective 1 September 2023. Selvendran brings a wealth of experience from his tenure as Executive Director, Head of Real Assets & Property at Khazanah. His appointment reflects our commitment to strengthening governance and maximizing shareholder value. Elaine Ong Yee Lynn was reappointed as Alternate Director to Selvendran Katheerayson with effect from 24 November 2023. Furthermore, upon the conclusion of Dato’ Seri Ir. Baharin bin Din’s service tenure as President/Chief Executive Officer (President/CEO), Datuk Ir. Megat Jalaluddin bin Megat Hassan was appointed by the Board with the concurrence of MoF Inc. as President/CEO and Non-Independent Executive Director of TNB for a two-year term, effective 1 March 2024. Datuk Ir. Megat Jalaluddin brings extensive experience and
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the Company’s Constitution. Selvendran Katheerayson was subsequently appointed as Non-Independent Non-Executive Director, representing Khazanah, effective 1 September 2023. Selvendran brings a wealth of experience from his tenure as Executive Director, Head of Real Assets & Property at Khazanah. His appointment reflects our commitment to strengthening governance and maximizing shareholder value. Elaine Ong Yee Lynn was reappointed as Alternate Director to Selvendran Katheerayson with effect from 24 November 2023. Furthermore, upon the conclusion of Dato’ Seri Ir. Baharin bin Din’s service tenure as President/Chief Executive Officer (President/CEO), Datuk Ir. Megat Jalaluddin bin Megat Hassan was appointed by the Board with the concurrence of MoF Inc. as President/CEO and Non-Independent Executive Director of TNB for a two-year term, effective 1 March 2024. Datuk Ir. Megat Jalaluddin brings extensive experience and industryknowledge, having served in various leadership capacities within TNB. The Board on 27 February 2024 had approved the appointment of Ramzi bin Mansor who is the Deputy Secretary General of Treasury (Management) in the Ministry of Finance as Non-Independent Non-Executive Director representing the interest of MoF Inc. with effect from 1 March 2024. He was appointed in place of Datin Rashidah binti Mohd Sies, who had resigned effective 12 January 2024, due to her retirement in public services. A recent addition to the Board is the appointment of Dato’ Zulkifli bin Ibrahim as Independent Non-Executive Director with effect from 1 April 2024. He possesses technical expertise and experience in generation operation and maintenance, that would fill up the gap identified through the Board Skills Matrix. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 146 CHAIRMAN’S INTRODUCTION TO CORPORATE GOVERNANCE As we welcome our new Board members and leadership, we express our gratitude to departing Directors for their dedication and service to the Company. We are confident that with the collective expertise
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the interest of MoF Inc. with effect from 1 March 2024. He was appointed in place of Datin Rashidah binti Mohd Sies, who had resigned effective 12 January 2024, due to her retirement in public services. A recent addition to the Board is the appointment of Dato’ Zulkifli bin Ibrahim as Independent Non-Executive Director with effect from 1 April 2024. He possesses technical expertise and experience in generation operation and maintenance, that would fill up the gap identified through the Board Skills Matrix. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 146 CHAIRMAN’S INTRODUCTION TO CORPORATE GOVERNANCE As we welcome our new Board members and leadership, we express our gratitude to departing Directors for their dedication and service to the Company. We are confident that with the collective expertise andvision of our Board, we will continue to steer TNB towards success, creating long-term value for our stakeholders. The Board adheres to Paragraph 15.02 (1)(a)&(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (MMLR), of having 50% of Independent Directors and five (5) female Directors, surpassing the requirements set by the MMLR. The Board and BNRC continuously undertake thorough reviews of the Board Skills Matrix. This assessment aids in identifying the necessary skills, knowledge, experience and capabilities essential for addressing current and future challenges within the Company. It aims to maintain a well-rounded mix of expertise to effectively tackle business compliance and governance matters, thereby enabling Directors to conduct comprehensive evaluations of Management’s performance. Following the BNRC’s recommendation, the Board approved measures to enhance the Board’s composition for greater dynamism. Addressing critical skills and competency gaps, such as technical proficiency, international business acumen and customer-centricity, remains a priority. All Directors appointed during the Financial Year under review possess the requisite skills, aligning with the
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50% of Independent Directors and five (5) female Directors, surpassing the requirements set by the MMLR. The Board and BNRC continuously undertake thorough reviews of the Board Skills Matrix. This assessment aids in identifying the necessary skills, knowledge, experience and capabilities essential for addressing current and future challenges within the Company. It aims to maintain a well-rounded mix of expertise to effectively tackle business compliance and governance matters, thereby enabling Directors to conduct comprehensive evaluations of Management’s performance. Following the BNRC’s recommendation, the Board approved measures to enhance the Board’s composition for greater dynamism. Addressing critical skills and competency gaps, such as technical proficiency, international business acumen and customer-centricity, remains a priority. All Directors appointed during the Financial Year under review possess the requisite skills, aligning with the strategicneeds of the Company. DATO’ ABDUL RAZAK BIN ABDUL MAJID Chairman LOOKING FORWARD In conclusion, the importance of robust corporate governance cannot be underestimated as we chart our course forward. Serving as the bedrock of our operations, it steers us towards enduring growth and prosperity. As we progress, our focus remains on strengthening our governance mechanisms, continuously refining and adapting them to meet the evolving needs of our organisation and the expectations of our stakeholders. By aligning our governance practices with our strategic and operational objectives, we not only bolster the confidence of our investors and partners but also cultivate an environment of accountability and transparency. This dedication to sound corporate governance ensures that we remain committed to delivering long-term, sustainable value for all those we serve. By having a balanced blend of skills, experience, knowledge and independence, the Board is confident in its ability to execute the Group’s strategy effectively. This balance empowers the Non-Executive Directors
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forward. Serving as the bedrock of our operations, it steers us towards enduring growth and prosperity. As we progress, our focus remains on strengthening our governance mechanisms, continuously refining and adapting them to meet the evolving needs of our organisation and the expectations of our stakeholders. By aligning our governance practices with our strategic and operational objectives, we not only bolster the confidence of our investors and partners but also cultivate an environment of accountability and transparency. This dedication to sound corporate governance ensures that we remain committed to delivering long-term, sustainable value for all those we serve. By having a balanced blend of skills, experience, knowledge and independence, the Board is confident in its ability to execute the Group’s strategy effectively. This balance empowers the Non-Executive Directors torigorously challenge Management’s perspectives and proposals while ensuring compliance with the principle of good governance. DIVERSITY The Board remains deeply committed to promoting diversity within the Company’s senior management. It conducts annual reviews to evaluate recommendations on diversity for these crucial roles. Recognising the continuous need for advancement, this commitment extends beyond the Board level to include the Senior Leadership tier. Presently, the representation of women on the Board stands at five (5) members, constituting 42%, surpassing the 30% benchmark recommended by the MCCG. However, within the broader organisation, women comprise 21% of the workforce. Gender balance varies across roles, geographies, and bands with female representation within our leadership stands at 26%. Although commendable progress has been achieved in different aspects of diversity and inclusion across the Group, ensuring sustainable change requires a resolute, long-term strategy, which remains a key focus for the Company. CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 147 Key highlights and initiatives for FY2023: BOARD LEADERSHIP &
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to evaluate recommendations on diversity for these crucial roles. Recognising the continuous need for advancement, this commitment extends beyond the Board level to include the Senior Leadership tier. Presently, the representation of women on the Board stands at five (5) members, constituting 42%, surpassing the 30% benchmark recommended by the MCCG. However, within the broader organisation, women comprise 21% of the workforce. Gender balance varies across roles, geographies, and bands with female representation within our leadership stands at 26%. Although commendable progress has been achieved in different aspects of diversity and inclusion across the Group, ensuring sustainable change requires a resolute, long-term strategy, which remains a key focus for the Company. CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 147 Key highlights and initiatives for FY2023: BOARD LEADERSHIP & EFFECTIVENESSCode of Business Ethics On 25 August 2023, the Board approved the TNB Code of Business Ethics (COBE), which extends its applicability to all Directors and Employees across all tiers within the organisation. This Code serves as a compass, delineating the expected standards of conduct for all individuals affiliated with TNB, including Business Associates where relevant. Rooted in TNB’s Core Values, Policies, Disciplinary Procedure, as well as regulatory and legislative mandates, these standards form the cornerstone of ethical behaviour within TNB. Accessible on TNB’s official website at www.tnb.com.my, the COBE serves as a guiding framework for all stakeholders. TNB Organisational Anti-Corruption Plan The Organisational Anti-Corruption Plan of TNB received approval from the Board Integrity Committee (BIC) on 7 August 2023. Serving as a foundational document, this plan outlines a comprehensive strategy aimed at mitigating governance challenges and fortifying integrity within the Company. By proactively addressing potential corruption risks and promoting ethical conduct among employees, the plan seeks to uphold TNB’s
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organisation. This Code serves as a compass, delineating the expected standards of conduct for all individuals affiliated with TNB, including Business Associates where relevant. Rooted in TNB’s Core Values, Policies, Disciplinary Procedure, as well as regulatory and legislative mandates, these standards form the cornerstone of ethical behaviour within TNB. Accessible on TNB’s official website at www.tnb.com.my, the COBE serves as a guiding framework for all stakeholders. TNB Organisational Anti-Corruption Plan The Organisational Anti-Corruption Plan of TNB received approval from the Board Integrity Committee (BIC) on 7 August 2023. Serving as a foundational document, this plan outlines a comprehensive strategy aimed at mitigating governance challenges and fortifying integrity within the Company. By proactively addressing potential corruption risks and promoting ethical conduct among employees, the plan seeks to uphold TNB’s commitmentto governance excellence. Trainings and Awareness session by Integrity Department • TNB Integrity Day 2023 • Integrity related programs to Divisions/Departments and Subsidiaries • Five (5) sessions of Fraud and Bribery Risk Management workshop • All staff and active vendors/contractors were required to complete Integrity E-Learning • All staff are required to sign the integrity pledge, declare any conflicts of interest annually and specifically when a conflict arises • Joint integrity programs with Malaysian Anti-Corruption Commission (MACC) • Published 12 Integrity bulletins and e-poster Three (3) Integrity Mandatory Requirements All employees are required to sign the Integrity Pledge, declare any conflicts of interest and complete the Integrity E-Learning Module on an annual basis. TNB Board Evaluation Assessment FY2023 Throughout the Financial Year under review, the Board, in collaboration with the BNRC engaged an independent expert to conduct the Board Evaluation Assessment FY2023 (BEA), aligning with Practice 6.1 of MCCG. The comprehensive findings of the BEA are elaborated
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and Bribery Risk Management workshop • All staff and active vendors/contractors were required to complete Integrity E-Learning • All staff are required to sign the integrity pledge, declare any conflicts of interest annually and specifically when a conflict arises • Joint integrity programs with Malaysian Anti-Corruption Commission (MACC) • Published 12 Integrity bulletins and e-poster Three (3) Integrity Mandatory Requirements All employees are required to sign the Integrity Pledge, declare any conflicts of interest and complete the Integrity E-Learning Module on an annual basis. TNB Board Evaluation Assessment FY2023 Throughout the Financial Year under review, the Board, in collaboration with the BNRC engaged an independent expert to conduct the Board Evaluation Assessment FY2023 (BEA), aligning with Practice 6.1 of MCCG. The comprehensive findings of the BEA are elaborated uponin detail on pages 159-160 of the Integrated Annual Report. Review of the Non-Executive Directors’ Remuneration In 2023, the Board engaged an independent expert to conduct a comprehensive and independent review of the remuneration for Non-Executive Directors. The objective was to assess its competitiveness in the market and ensure alignment with the latest regulations and corporate governance guidelines in Malaysia. TNB’s Inaugurate Energy Transition Conference TNB’s Inaugurate Energy Transition Conference with the theme ‘Accelerating a Responsible Energy Transition’ was held on 28 to 29 August 2023 at the Kuala Lumpur Convention Centre. The Conference attracted over 2,500 delegates representing various segments of the Renewable Energy industry and sustainable technologies. Its exhibition area occupied a space of 7,500 m2 where the latest innovations, RE technologies and financing were put on display. Board Risk Committee (BRC) was renamed as Board Sustainability and Risk Committee (BSRC) and the Review of BSRC and BAC T erms of Reference The Board approved the renaming of the Board Risk Committee (BRC) to the Board Sustainability and
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its competitiveness in the market and ensure alignment with the latest regulations and corporate governance guidelines in Malaysia. TNB’s Inaugurate Energy Transition Conference TNB’s Inaugurate Energy Transition Conference with the theme ‘Accelerating a Responsible Energy Transition’ was held on 28 to 29 August 2023 at the Kuala Lumpur Convention Centre. The Conference attracted over 2,500 delegates representing various segments of the Renewable Energy industry and sustainable technologies. Its exhibition area occupied a space of 7,500 m2 where the latest innovations, RE technologies and financing were put on display. Board Risk Committee (BRC) was renamed as Board Sustainability and Risk Committee (BSRC) and the Review of BSRC and BAC T erms of Reference The Board approved the renaming of the Board Risk Committee (BRC) to the Board Sustainability and RiskCommittee (BSRC) effective from 25 August 2023. This change aligns with its expanded responsibilities, notably the oversight of sustainability practices as per the Bursa Malaysia Sustainability Reporting Guide 3rd Edition. Additionally, on 14 December 2023, the Board approved the updated terms of reference for the BAC to reflect its evolving role, particularly in ensuring assurance of sustainability-related concerns. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 148 THE BOARD TNB BOARD COMMITTEES Key Roles and Responsibilities TOTAL HOURS OF BOARD MEETINGS 50 OVERALL PERCENTAGE OF BOARD MEETINGS ATTENDED BY DIRECTORS 94% TOTAL HOURS OF BOARD AND BOARD COMMITTEES MEETINGS 215 Supports Effective Decision Making and the Delivery of Our Strategy Notes: 1 Appointed as Chairman w.e.f. 27 March 2023. 2 Appointed as Director w.e.f. 10 April 2023, Chairman of BTC w.e.f. 17 April 2023, Member of BIC w.e.f. 29 May 2023 and Member of BNRC w.e.f. 1 July 2023. Cessation as Chairman of BTC and Member of BNRC and BIC w.e.f. 12 January 2024. 3 Appointed as Director w.e.f. 1 September 2023, Member of FIC & BSRC w.e.f. 24 November 2023 and Member of BLTIP w.e.f. 14
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TENAGA NASIONAL BERHAD Integrated Annual Report 2023 148 THE BOARD TNB BOARD COMMITTEES Key Roles and Responsibilities TOTAL HOURS OF BOARD MEETINGS 50 OVERALL PERCENTAGE OF BOARD MEETINGS ATTENDED BY DIRECTORS 94% TOTAL HOURS OF BOARD AND BOARD COMMITTEES MEETINGS 215 Supports Effective Decision Making and the Delivery of Our Strategy Notes: 1 Appointed as Chairman w.e.f. 27 March 2023. 2 Appointed as Director w.e.f. 10 April 2023, Chairman of BTC w.e.f. 17 April 2023, Member of BIC w.e.f. 29 May 2023 and Member of BNRC w.e.f. 1 July 2023. Cessation as Chairman of BTC and Member of BNRC and BIC w.e.f. 12 January 2024. 3 Appointed as Director w.e.f. 1 September 2023, Member of FIC & BSRC w.e.f. 24 November 2023 and Member of BLTIP w.e.f. 14 December2023. 4 Appointed as Director w.e.f. 20 March 2023, Member of FIC w.e.f. 1 July 2023 and redesignated as Chairman of FIC w.e.f. 24 November 2023, appointed as Member of BAC w.e.f. 1 July 2023 and BLTIP w.e.f. 14 December 2023. 5 Appointed as Director w.e.f. 1 July 2023 and Member of BSRC, BNRC, BLTIP & BIC w.e.f. 25 August 2023. 6 Appointed as Alternate Director to Datuk Amran Hafiz bin Affifudin w.e.f. 20 March 2023, cessation of Office as Alternate Director to Datuk Amran Hafiz bin Affifudin w.e.f. 1 September 2023 and appointed as Alternate Director to Selvendran Katheerayson w.e.f. 24 November 2023. 7 Resigned as Chairman w.e.f. 1 January 2023. 8 Resigned as Director, Chairman of BTC and Member of BNRC & BLTIP w.e.f. 5 January 2023. 9 Cessation of Office as Alternate Director to Datuk Seri Asri bin Hamidin @ Hamidon w.e.f. 5 January 2023. 10 Resigned as Director and Member of BAC & FIC w.e.f. 6 March 2023, appointed as Member of BNRC & BLTIP w.e.f. 1 February 2023 and cessation as Member of BNRC & BLTIP w.e.f. 6 March 2023. 11 Cessation of Office as Director and Member of BAC, BSRC & BIC w.e.f. 18 May 2023. 12 Resigned as Director, Chairman of FIC and Member of BLTIP & BIC w.e.f. 1 September 2023. Cessation as Member of BTC w.e.f. 17 April 2023. 13 Cessation as
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2023. 7 Resigned as Chairman w.e.f. 1 January 2023. 8 Resigned as Director, Chairman of BTC and Member of BNRC & BLTIP w.e.f. 5 January 2023. 9 Cessation of Office as Alternate Director to Datuk Seri Asri bin Hamidin @ Hamidon w.e.f. 5 January 2023. 10 Resigned as Director and Member of BAC & FIC w.e.f. 6 March 2023, appointed as Member of BNRC & BLTIP w.e.f. 1 February 2023 and cessation as Member of BNRC & BLTIP w.e.f. 6 March 2023. 11 Cessation of Office as Director and Member of BAC, BSRC & BIC w.e.f. 18 May 2023. 12 Resigned as Director, Chairman of FIC and Member of BLTIP & BIC w.e.f. 1 September 2023. Cessation as Member of BTC w.e.f. 17 April 2023. 13 Cessation as Memberof BAC with effect from 1 July 2023, appointed as Interim Chairman of BTC with effect from 1 February 2023 and redesignated as Member of BTC w.e.f. 17 April 2023. Resigned as Member of FIC with effect from 1 July 2023, appointed as Member of BNRC with effect from 1 July 2023, appointed as Member of BLTIP with effect from 1 July 2023 and redesignated as Chairman of BLTIP with effect from 14 December 2023. 14 Reflects the number of meetings attended during her appointment as Alternate Director to Datuk Amran Hafiz bin Affifudin. 15 Appointed as Interim Member of BLTIP w.e.f. 25 May 2023 and cessation as Interim Member of BLTIP w.e.f. 1 July 2023. 16 Redesignated as Chairman of BIC w.e.f. 1 February 2023. 17 Appointed and cessation as Member of BSRC w.e.f. 1 July 2023 and 24 November 2023 respectively. Redesignated and cessation as Member of BLTIP w.e.f. 14 December 2023 and 26 March 2024 respectively. ^ Reflects the number of meetings attended during the time the Director held office/was Chairman/ Member of Committee(s). * Reflects the number of meetings since his/her respective appointment to the Board/relevant Board Committee(s). All Directors have complied with the minimum attendance as stipulated in the MMLR, of which being present not less than 50% of the total Board meetings held during the Financial Year. • Provides leadership to the
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BLTIP w.e.f. 25 May 2023 and cessation as Interim Member of BLTIP w.e.f. 1 July 2023. 16 Redesignated as Chairman of BIC w.e.f. 1 February 2023. 17 Appointed and cessation as Member of BSRC w.e.f. 1 July 2023 and 24 November 2023 respectively. Redesignated and cessation as Member of BLTIP w.e.f. 14 December 2023 and 26 March 2024 respectively. ^ Reflects the number of meetings attended during the time the Director held office/was Chairman/ Member of Committee(s). * Reflects the number of meetings since his/her respective appointment to the Board/relevant Board Committee(s). All Directors have complied with the minimum attendance as stipulated in the MMLR, of which being present not less than 50% of the total Board meetings held during the Financial Year. • Provides leadership to the Companyand direction for Management. • Has collective responsibility and accountability to shareholders for the long-term success of the Group. • Reviews the performance of Management and the operating and financial performance of the Group. • Sets strategy. • Determines risk appetite. • Ensures good governance. • Deliberates and approves the sustainability strategy and pathway while overseeing TNB’s implementation and performance on sustainability. • Leads the Board. • Ensures an effective Board, including contributions and challenges from the Directors. • Ensures that the Group maintains effective communication with its shareholders. • Has day-to-day responsibility for running the Group’s operations. • Makes recommendations to the Board and implements Group strategy. • Applies Group policies. • Promotes TNB’s culture and standards. • Ensures the Directors are properly informed and that sufficient information is provided to the Board to enable the Directors to form appropriate judgements. President/CEO Chairman The roles of Chairman and President/CEO are held by two (2) separate individuals. Board of Directors Board of Directors Total Board Meetings Attended for Financial Year 2023 Total Board Meetings Attended for Financial Year
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sustainability strategy and pathway while overseeing TNB’s implementation and performance on sustainability. • Leads the Board. • Ensures an effective Board, including contributions and challenges from the Directors. • Ensures that the Group maintains effective communication with its shareholders. • Has day-to-day responsibility for running the Group’s operations. • Makes recommendations to the Board and implements Group strategy. • Applies Group policies. • Promotes TNB’s culture and standards. • Ensures the Directors are properly informed and that sufficient information is provided to the Board to enable the Directors to form appropriate judgements. President/CEO Chairman The roles of Chairman and President/CEO are held by two (2) separate individuals. Board of Directors Board of Directors Total Board Meetings Attended for Financial Year 2023 Total Board Meetings Attended for Financial Year 2023GPC Group People Committee GMTC Group Management Tender Committee AUDIT AND FINANCIAL GOVERNANCE Internal Audit External Audit Financial Controls CONSUL TATIVE COUNCILS APPROVAL COMMITTEES TC Technology Council RC Regulatory Council Board Audit Committee (BAC) T o oversee the integrity of the financial statements in compliance with legal and regulatory requirements and applicable accounting standards. T o assess the effectiveness of the Group’s internal control framework as well as internal and external audit functions. T o assess the effectiveness of the system for monitoring compliance with laws and regulations. T o ensure consistency and connectivity of sustainability-related disclosures across financial reporting and other public disclosures. BoardFinanceand InvestmentCommittee(FIC) T o review and recommend to the Board for approval and to approve investment/divestment proposals recommended by Management balancing strategic, financial and risk and return. T o review and approve investment risks and risk treatments proposed by Management for new investment/divestment proposals for investment of value up to RM200.0
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RC Regulatory Council Board Audit Committee (BAC) T o oversee the integrity of the financial statements in compliance with legal and regulatory requirements and applicable accounting standards. T o assess the effectiveness of the Group’s internal control framework as well as internal and external audit functions. T o assess the effectiveness of the system for monitoring compliance with laws and regulations. T o ensure consistency and connectivity of sustainability-related disclosures across financial reporting and other public disclosures. BoardFinanceand InvestmentCommittee(FIC) T o review and recommend to the Board for approval and to approve investment/divestment proposals recommended by Management balancing strategic, financial and risk and return. T o review and approve investment risks and risk treatments proposed by Management for new investment/divestment proposals for investment of value up to RM200.0 millionper transaction. T o review and recommend to the Board for approval investment risks and risk treatments proposed by Management for new investment/divestment proposals for investment of value above RM200.0 million per transaction. T o review, monitor and make recommendations to the Board for approval in matters pertaining to finance, including but not limited to budgets and funding activities. Board Tender Committee (BTC) T o establish the framework of TNB’s Procurement & Supply Chain Policy and Procedures. T o advise the Board regarding the details and implementation of TNB’s Procurement & Supply Chain Policy and Procedures framework. T o assist the Board in regulating the compliance of T op Management and Executive Directors with TNB’s Procurement & Supply Chain Policy and Procedures. T o ensure TNB complies with the applicable laws, regulations, rules and guidelines to achieve best business practices in its procurement of equipment, materials, works and services. Chairman Dato’ Merina binti Abu Tahir Attendance 13/13 (100%) Members Ong Ai Lin Attendance 13/13 (100%) Juniwati Rahmat Hussin
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to the Board for approval in matters pertaining to finance, including but not limited to budgets and funding activities. Board Tender Committee (BTC) T o establish the framework of TNB’s Procurement & Supply Chain Policy and Procedures. T o advise the Board regarding the details and implementation of TNB’s Procurement & Supply Chain Policy and Procedures framework. T o assist the Board in regulating the compliance of T op Management and Executive Directors with TNB’s Procurement & Supply Chain Policy and Procedures. T o ensure TNB complies with the applicable laws, regulations, rules and guidelines to achieve best business practices in its procurement of equipment, materials, works and services. Chairman Dato’ Merina binti Abu Tahir Attendance 13/13 (100%) Members Ong Ai Lin Attendance 13/13 (100%) Juniwati Rahmat Hussin Attendance12/13 (92%) Rohaya binti Mohammad Yusof4 Attendance 5/6* (83%) Datuk Lau Beng Wei10 Attendance 3/4^ (75%) Datuk Rawisandran Narayanan11 Attendance 6/6^ (100%) Gopala Krishnan K.Sundaram13 Attendance 7/7^ (100%) Chairman Datuk Amran Hafiz bin Affifudin12 Attendance 8/9^ (89%) Rohaya binti Mohammad Yusof4 Attendance 6/6* (100%) Members Dato’ Roslina binti Zainal Attendance 13/13 (100%) Dato’ Merina binti Abu Tahir Attendance 13/13 (100%) Selvendran Katheerayson3 Attendance 1/1* (100%) Datuk Lau Beng Wei10 Attendance 2/2^ (100%) Gopala Krishnan K.Sundaram13 Attendance 7/7^ (100%) Elaine Ong Yee Lynn Attendance - Chairman Datin Rashidah binti Mohd Sies2 Attendance 8/9*^ (89%) Members Gopala Krishnan K.Sundaram13 Attendance 13/13* (100%) Juniwati Rahmat Hussin Attendance 13/14 (93%) Dato’ Roslina binti Zainal Attendance 14/14 (100%) Datuk Amran Hafiz bin Affifudin12 Attendance 3/5^ (60%) Elaine Ong Yee Lynn Attendance 2/2^ (100%) Datuk Seri Asri bin Hamidin @ Hamidon8 (No meeting held during his tenure/service) Faisal @ Pisal bin Abdul Ghani9 (No meeting held during his tenure/service) Total 42 meeting hours Total 20 meeting hours Total 38 meeting hours Dato’ Roslina binti Zainal17 18/18
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6/6* (100%) Members Dato’ Roslina binti Zainal Attendance 13/13 (100%) Dato’ Merina binti Abu Tahir Attendance 13/13 (100%) Selvendran Katheerayson3 Attendance 1/1* (100%) Datuk Lau Beng Wei10 Attendance 2/2^ (100%) Gopala Krishnan K.Sundaram13 Attendance 7/7^ (100%) Elaine Ong Yee Lynn Attendance - Chairman Datin Rashidah binti Mohd Sies2 Attendance 8/9*^ (89%) Members Gopala Krishnan K.Sundaram13 Attendance 13/13* (100%) Juniwati Rahmat Hussin Attendance 13/14 (93%) Dato’ Roslina binti Zainal Attendance 14/14 (100%) Datuk Amran Hafiz bin Affifudin12 Attendance 3/5^ (60%) Elaine Ong Yee Lynn Attendance 2/2^ (100%) Datuk Seri Asri bin Hamidin @ Hamidon8 (No meeting held during his tenure/service) Faisal @ Pisal bin Abdul Ghani9 (No meeting held during his tenure/service) Total 42 meeting hours Total 20 meeting hours Total 38 meeting hours Dato’ Roslina binti Zainal17 18/18 100%Selvendran Katheerayson3 6/6* 100% Dato’ Abdul Razak bin Abdul Majid1 13/14* 93% Dato’ Seri Ir. Baharin bin Din 13/18 72% Dato’ Merina binti Abu Tahir 18/18 100% 2/2*^14 100% Elaine Ong Yee Lynn6 (Alternate Director to Selvendran Katheerayson) Dato’ Sri Hasan bin Arifin7 (No meeting held during his tenure/service) THE BOARD AND ITS GOVERNANCE FRAMEWORK The Terms of References (TORs) of the BAC and BNRC are available at www.tnb.com.my. BOARD LEADERSHIP & EFFECTIVENESS Datin Rashidah binti Mohd Sies2 10/13* 77% Key Roles and Responsibilities For more information, please refer to our board chapter. CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 149 BOARD LEADERSHIP & EFFECTIVENESS • Provides a sounding board for the Chairman. • Acts, if necessary, as a focal point and intermediary for the other Directors. • Ensures that any key issues not addressed by the Chairman or the Executive Management are taken up. • Is available to shareholders should they have concerns. Senior Independent Non-Executive Director (SID) • Constructively challenge the Management in all areas. • Scrutinise Management’s performance. • Help develop proposals on strategy. •
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BOARD AND ITS GOVERNANCE FRAMEWORK The Terms of References (TORs) of the BAC and BNRC are available at www.tnb.com.my. BOARD LEADERSHIP & EFFECTIVENESS Datin Rashidah binti Mohd Sies2 10/13* 77% Key Roles and Responsibilities For more information, please refer to our board chapter. CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 149 BOARD LEADERSHIP & EFFECTIVENESS • Provides a sounding board for the Chairman. • Acts, if necessary, as a focal point and intermediary for the other Directors. • Ensures that any key issues not addressed by the Chairman or the Executive Management are taken up. • Is available to shareholders should they have concerns. Senior Independent Non-Executive Director (SID) • Constructively challenge the Management in all areas. • Scrutinise Management’s performance. • Help develop proposals on strategy. • Satisfythemselves on the integrity of financial information and on the effectiveness of financial controls and risk management systems. • Determine appropriate level of remuneration for Senior Management. Non-Executive Directors • Has day-to-day responsibility for the management of the finance function. • Leads the Group’s finance activities, risks and controls. • Represents TNB externally to stakeholders, shareholders, customers, suppliers, regulatory and government authorities and the community. Chief Financial Officer • Advises the Board on corporate disclosures and compliance with the Companies Act 2016, securities regulations and the MMLR. • T ogether with the Chairman, keeps the effectiveness of the Company’s and the Board’s governance processes under review. • Provides advice on corporate governance issues. • Facilitates the orientation of new Directors and assists the Directors’ training and development. Company Secretary Sustainability Integrity Risk Management Strategy ESC Energy Supply Committee IEC Investment Executive Committee EVC Electric Vehicle Council HSEC Health, Safety & Environment Council IC Integrity Council SMC Smart Meter Council ICTGC Information & Communication
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management of the finance function. • Leads the Group’s finance activities, risks and controls. • Represents TNB externally to stakeholders, shareholders, customers, suppliers, regulatory and government authorities and the community. Chief Financial Officer • Advises the Board on corporate disclosures and compliance with the Companies Act 2016, securities regulations and the MMLR. • T ogether with the Chairman, keeps the effectiveness of the Company’s and the Board’s governance processes under review. • Provides advice on corporate governance issues. • Facilitates the orientation of new Directors and assists the Directors’ training and development. Company Secretary Sustainability Integrity Risk Management Strategy ESC Energy Supply Committee IEC Investment Executive Committee EVC Electric Vehicle Council HSEC Health, Safety & Environment Council IC Integrity Council SMC Smart Meter Council ICTGC Information & Communication Technology(ICT) Governance Committee BOARD RESERVED AUTHORITIES DELEGATED AUTHORITY TO MANAGEMENT PRESIDENT/CHIEF EXECUTIVE OFFICER (President/CEO) GROUP EXECUTIVE MANAGEMENT COMMITTEE (GEMC) COMPEC Commodity Procurement Executive Committee SETC Sustainability and Energy T ransition Council Board Nomination and Remuneration Committee (BNRC) T o identify and recommend new nominees to the Board, Board Committees and Boards of TNB Group. T o consider/review the Executive Director and T op Management’s succession planning. T o review the Board’s required mix of skills, experience and other qualities, including core competencies which Non-Executive Directors should bring to the Board. T o implement the process formulated by the Board to assess the effectiveness of the Board, Board Committees, Self and Peers. T o determine and recommend to the Board the remuneration packages of Non-Executive Directors/Executive Directors/T op Management. T o align the Board and T op Management reward/remuneration with the Key Performance Indicators (KPIs). Board Long Term Incentive Plan Committee (BL TIP) T o
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and Energy T ransition Council Board Nomination and Remuneration Committee (BNRC) T o identify and recommend new nominees to the Board, Board Committees and Boards of TNB Group. T o consider/review the Executive Director and T op Management’s succession planning. T o review the Board’s required mix of skills, experience and other qualities, including core competencies which Non-Executive Directors should bring to the Board. T o implement the process formulated by the Board to assess the effectiveness of the Board, Board Committees, Self and Peers. T o determine and recommend to the Board the remuneration packages of Non-Executive Directors/Executive Directors/T op Management. T o align the Board and T op Management reward/remuneration with the Key Performance Indicators (KPIs). Board Long Term Incentive Plan Committee (BL TIP) T o overseethe administration of TNB L TIP and the shares granted (L TIP Shares) subject to the by-laws. T o approve and determine the manner in which the L TIP Shares are granted and subsequently vested to the selected employees in accordance with the by-laws, including inter alia, the determination of eligibility, grant level, terms of acceptance of offers, terms of vesting of shares, performance conditions and any other terms and conditions imposed at the discretion of the BL TIP . Board Sustainability and Risk Committee (BSRC) T o deliberate and recommend on the sustainability framework and policy for Board’s approval. T o oversee the implementation of the sustainability framework integration into the Group’s culture, processes and structures. T o deliberate TNB Sustainability Roadmap based on Board approved strategies and targets and ensuring effective deployment across the Group. T o oversee the Group’s sustainability key performance indicator against approved strategies and targets. T o review and recommend on Group’s sustainability disclosures required by Bursa Malaysia for Board approval. T o advise on TNB Sustainability Report disclosures to external stakeholders prior to
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level, terms of acceptance of offers, terms of vesting of shares, performance conditions and any other terms and conditions imposed at the discretion of the BL TIP . Board Sustainability and Risk Committee (BSRC) T o deliberate and recommend on the sustainability framework and policy for Board’s approval. T o oversee the implementation of the sustainability framework integration into the Group’s culture, processes and structures. T o deliberate TNB Sustainability Roadmap based on Board approved strategies and targets and ensuring effective deployment across the Group. T o oversee the Group’s sustainability key performance indicator against approved strategies and targets. T o review and recommend on Group’s sustainability disclosures required by Bursa Malaysia for Board approval. T o advise on TNB Sustainability Report disclosures to external stakeholders prior to publication.Board Integrity Committee (BIC) T o oversee and conduct disciplinary matters for TNB personnel, including acting on the advice of the Management, hearing and deciding on appeals and enforcing disciplinary proceedings against staff convicted of misconduct. T o review and make recommendations to the Board of Directors on steps to be taken to establish a culture of integrity and honesty in all of the Company’s business dealings. Chairman Dato’ Roslina binti Zainal Attendance 12/12 (100%) Members Dato’ Merina binti Abu Tahir Attendance 12/12 (100%) Datin Rashidah binti Mohd Sies2 Attendance 5/5*^ (100%) Gopala Krishnan K.Sundaram13 Attendance 5/5* (100%) Muazzam bin Mohamad5 Attendance 3/3* (100%) Datuk Lau Beng Wei10 Attendance 1/1*^ (100%) Datuk Amran Hafiz bin Affifudin12 Attendance 7/7^ (100%) Elaine Ong Yee Lynn Attendance - Chairman Dato’ Roslina binti Zainal17 Attendance 1/1^ (100%) Gopala Krishnan K.Sundaram13 (No meeting held since his appointment) Members Muazzam bin Mohamad5 (No meeting held since his appointment) Selvendran Katheerayson3 (No meeting held since his appointment) Rohaya binti Mohammad Yusof4 (No meeting held since her
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recommendations to the Board of Directors on steps to be taken to establish a culture of integrity and honesty in all of the Company’s business dealings. Chairman Dato’ Roslina binti Zainal Attendance 12/12 (100%) Members Dato’ Merina binti Abu Tahir Attendance 12/12 (100%) Datin Rashidah binti Mohd Sies2 Attendance 5/5*^ (100%) Gopala Krishnan K.Sundaram13 Attendance 5/5* (100%) Muazzam bin Mohamad5 Attendance 3/3* (100%) Datuk Lau Beng Wei10 Attendance 1/1*^ (100%) Datuk Amran Hafiz bin Affifudin12 Attendance 7/7^ (100%) Elaine Ong Yee Lynn Attendance - Chairman Dato’ Roslina binti Zainal17 Attendance 1/1^ (100%) Gopala Krishnan K.Sundaram13 (No meeting held since his appointment) Members Muazzam bin Mohamad5 (No meeting held since his appointment) Selvendran Katheerayson3 (No meeting held since his appointment) Rohaya binti Mohammad Yusof4 (No meeting held since her appointment)Ong Ai Lin15 Attendance 1/1 (100%) Datuk Lau Beng Wei10 (No meeting held during his tenure/service) Datuk Rawisandran Narayanan11 (No meeting held during his tenure/service) Datuk Amran Hafiz bin Affifudin12 Attendance 1/1^ (100%) Datuk Seri Asri bin Hamidin @ Hamidon8 (No meeting held during his tenure/service) Faisal @ Pisal bin Abdul Ghani9 (No meeting held during his tenure/service) Chairman Ong Ai Lin Attendance 9/9 (100%) Members Gopala Krishnan K.Sundaram Attendance 9/9 (100%) Dato’ Roslina binti Zainal17 Attendance 3/3*^ (100%) Muazzam bin Mohamad5 Attendance 2/2* (100%) Selvendran Katheerayson3 (No meeting held since his appointment) Juniwati Rahmat Hussin Attendance 6/6^ (100%) Datuk Rawisandran Narayanan11 Attendance 6/6^ (100%) Datuk Amran Hafiz bin Affifudin12 Attendance 0/1*^ (0%) Elaine Ong Yee Lynn14 Attendance 1/1*^ (100%) Chairman Juniwati Rahmat Hussin16 Attendance 5/5 (100%) Members Datin Rashidah binti Mohd Sies2 Attendance 4/4*^ (100%) Ong Ai Lin Attendance 1/1*^ (100%) Muazzam bin Mohamad5 Attendance 1/1* (100%) Datuk Rawisandran Narayanan11 Attendance 1/1^ (100%) Datuk Amran Hafiz bin Affifudin12 Attendance 3/4^
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Datuk Seri Asri bin Hamidin @ Hamidon8 (No meeting held during his tenure/service) Faisal @ Pisal bin Abdul Ghani9 (No meeting held during his tenure/service) Chairman Ong Ai Lin Attendance 9/9 (100%) Members Gopala Krishnan K.Sundaram Attendance 9/9 (100%) Dato’ Roslina binti Zainal17 Attendance 3/3*^ (100%) Muazzam bin Mohamad5 Attendance 2/2* (100%) Selvendran Katheerayson3 (No meeting held since his appointment) Juniwati Rahmat Hussin Attendance 6/6^ (100%) Datuk Rawisandran Narayanan11 Attendance 6/6^ (100%) Datuk Amran Hafiz bin Affifudin12 Attendance 0/1*^ (0%) Elaine Ong Yee Lynn14 Attendance 1/1*^ (100%) Chairman Juniwati Rahmat Hussin16 Attendance 5/5 (100%) Members Datin Rashidah binti Mohd Sies2 Attendance 4/4*^ (100%) Ong Ai Lin Attendance 1/1*^ (100%) Muazzam bin Mohamad5 Attendance 1/1* (100%) Datuk Rawisandran Narayanan11 Attendance 1/1^ (100%) Datuk Amran Hafiz bin Affifudin12 Attendance 3/4^ (75%)Dato’ Roslina binti Zainal Attendance 3/3*^ (100%) Elaine Ong Yee Lynn Attendance - Total 22 meeting hours Total 31 meeting hours Total 1 meeting hours Total 8 meeting hours Rohaya binti Mohammad Yusof4 15/15* 100% Muazzam bin Mohamad5 8/8* 100% Ong Ai Lin 17/18 94% Juniwati Rahmat Hussin 16/18 89% Gopala Krishnan K.Sundaram13 18/18 100% Datuk Rawisandran Narayanan11 8/8^ 100% Datuk Lau Beng Wei10 2/2^ 100% Datuk Seri Asri bin Hamidin @ Hamidon8 (No meeting held during his tenure/service) Faisal @ Pisal bin Abdul Ghani9 (Alternate Director to Datuk Seri Asri bin Hamidin @ Hamidon) (No meeting held during his tenure/service) Datuk Amran Hafiz bin Affifudin12 10/12^ 83% Key Roles and Responsibilities TENAGA NASIONAL BERHAD Integrated Annual Report 2023 150 BOARD LEADERSHIP & EFFECTIVENESS SUMMARY OF BOARD ACTIVITIES IN 2023 MATTERS DELIBERATED BY THE BOARD AND ITS COMMITTEES DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 The following list is not exhaustive and encompasses only a selection of Key Areas of Focus/Matters Deliberated by the Board and its Committees during the Financial Year. It aims to
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16/18 89% Gopala Krishnan K.Sundaram13 18/18 100% Datuk Rawisandran Narayanan11 8/8^ 100% Datuk Lau Beng Wei10 2/2^ 100% Datuk Seri Asri bin Hamidin @ Hamidon8 (No meeting held during his tenure/service) Faisal @ Pisal bin Abdul Ghani9 (Alternate Director to Datuk Seri Asri bin Hamidin @ Hamidon) (No meeting held during his tenure/service) Datuk Amran Hafiz bin Affifudin12 10/12^ 83% Key Roles and Responsibilities TENAGA NASIONAL BERHAD Integrated Annual Report 2023 150 BOARD LEADERSHIP & EFFECTIVENESS SUMMARY OF BOARD ACTIVITIES IN 2023 MATTERS DELIBERATED BY THE BOARD AND ITS COMMITTEES DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 The following list is not exhaustive and encompasses only a selection of Key Areas of Focus/Matters Deliberated by the Board and its Committees during the Financial Year. It aims to offerstakeholders a glimpse into some of the significant matters deliberated by the Board: SUSTAINABILITY GOVERNANCE In advancing our sustainability agenda and achieving our net zero objectives, a robust sustainability governance framework and resolute leadership structure are paramount. Aligned with the tenets of the MCCG, our sustainability governance is deeply ingrained within TNB’s Governance Model, serving as a cornerstone of our organisational principles. Underlining the importance of a resilient sustainability governance framework, coupled with effective leadership, we uphold these elements as essential for informed and inclusive decision-making processes. Integrated seamlessly within the broader TNB Group Governance Platform, our sustainability governance framework is intricately linked with TNB’s management committees and subcommittees, reinforcing its pivotal role within our corporate governance framework. During a special meeting on 11 September 2023, the Board approved the renaming of the BRC to the BSRC, effective from 25 August 2023. This decision was accompanied by enhanced terms of reference, encompassing the oversight of sustainability practices in alignment with the Bursa Malaysia
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are paramount. Aligned with the tenets of the MCCG, our sustainability governance is deeply ingrained within TNB’s Governance Model, serving as a cornerstone of our organisational principles. Underlining the importance of a resilient sustainability governance framework, coupled with effective leadership, we uphold these elements as essential for informed and inclusive decision-making processes. Integrated seamlessly within the broader TNB Group Governance Platform, our sustainability governance framework is intricately linked with TNB’s management committees and subcommittees, reinforcing its pivotal role within our corporate governance framework. During a special meeting on 11 September 2023, the Board approved the renaming of the BRC to the BSRC, effective from 25 August 2023. This decision was accompanied by enhanced terms of reference, encompassing the oversight of sustainability practices in alignment with the Bursa Malaysia SustainabilityReporting Guide 3rd Edition. With the support of the BSRC, the Board assumes responsibility for ensuring the robustness of our sustainability and risk management frameworks, as well as the effectiveness of their implementation in achieving strategic objectives and sustainability commitments. For more information, please refer to Sustainability Governance section of Sustainability Statement, which can be found on pages 58-59. Furthermore, on 14 December 2023, the Board endorsed the revised terms of reference for the BAC to adapt to its evolving role, particularly in providing assurance on sustainability-related matters. The updated functions and responsibilities of the BAC in relation to sustainability matters include ensuring the consistency and coherence of sustainability-related disclosures across financial reporting and other public disclosures, approving the assurance plan/methodology on the Sustainability Statement, and reviewing the results of assurance on the Sustainability Statement, culminating in the approval of the Statement of Assurance as part of the
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sustainability and risk management frameworks, as well as the effectiveness of their implementation in achieving strategic objectives and sustainability commitments. For more information, please refer to Sustainability Governance section of Sustainability Statement, which can be found on pages 58-59. Furthermore, on 14 December 2023, the Board endorsed the revised terms of reference for the BAC to adapt to its evolving role, particularly in providing assurance on sustainability-related matters. The updated functions and responsibilities of the BAC in relation to sustainability matters include ensuring the consistency and coherence of sustainability-related disclosures across financial reporting and other public disclosures, approving the assurance plan/methodology on the Sustainability Statement, and reviewing the results of assurance on the Sustainability Statement, culminating in the approval of the Statement of Assurance as part of the SustainabilityStatement. OPERATIONS OF THE BOARD Prior to each scheduled Board meeting, comprehensive Chairman Reports from the respective Board Committees are distributed, ensuring Directors are thoroughly briefed on deliberations and recommendations. This process guarantees that each Director is well-informed about decisions made and viewpoints raised. Subsequently, the Chairman of each Board Committee presents the Committee’s report to the Board, outlining recommendations for the Board’s consideration and approval. This dynamic exchange allows the Board to offer insights on all Committee deliberations. All deliberations and recommendations are duly recorded, • Revenue, Operational and Capital Expenditure (CAPEX) Budget for Financial Year 2024 • Approval/Status Update on TNB's potential investments/ divestment projects • Approval/Status Update/Issues Raised on Operational matters of TNB and its Group of Companies • TNB’s Sustainability Pathway 2050: Low Carbon Pathway and Key Action Items • Quarterly Group Performance • Audited Financial Statements for Financial Year 2023 •
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Committees are distributed, ensuring Directors are thoroughly briefed on deliberations and recommendations. This process guarantees that each Director is well-informed about decisions made and viewpoints raised. Subsequently, the Chairman of each Board Committee presents the Committee’s report to the Board, outlining recommendations for the Board’s consideration and approval. This dynamic exchange allows the Board to offer insights on all Committee deliberations. All deliberations and recommendations are duly recorded, • Revenue, Operational and Capital Expenditure (CAPEX) Budget for Financial Year 2024 • Approval/Status Update on TNB's potential investments/ divestment projects • Approval/Status Update/Issues Raised on Operational matters of TNB and its Group of Companies • TNB’s Sustainability Pathway 2050: Low Carbon Pathway and Key Action Items • Quarterly Group Performance • Audited Financial Statements for Financial Year 2023 • QuarterlyFinancial Results • 2023 Integrated Annual Report Statements • Appointment and Resignation of Directors • Proposed FY2024 KPIs for President/CEO • Interim and Final Dividends • Quarterly Risk Dashboard Report • Quarterly Report on Non-Audit Services • Approval of Procurement within its Approving Authority • TNB Divisions/Departments Risk Profiles and Convergence Initiatives • Quarterly Report on TNB’s Litigation and Arbitration Cases • Corporate Governance Report 2023 • Board Evaluation Assessment (BEA) for Board of Directors, Board Committees and Self and Peer FY2023 • PwC Malaysia Transparency Report • Proposed Funding Options and Plans for FY2023 and onwards • TNB Equity Portfolio Performance Report for the period ended 31 December 2023 • Notice of 34th AGM • TNB’s Role in Supporting Malaysia Energy Transition Agenda Through Delivery of National Energy Transition Roadmap (NETR) Flagship Initiatives • Corporate Social Responsibilities Proposals • Global ESG Monitor Malaysia Report - Measuring ESG Transparency Practices in Malaysia BOARD CREATING VALUE THROUGH STRONG
[ 152, 153 ]
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Report • Quarterly Report on Non-Audit Services • Approval of Procurement within its Approving Authority • TNB Divisions/Departments Risk Profiles and Convergence Initiatives • Quarterly Report on TNB’s Litigation and Arbitration Cases • Corporate Governance Report 2023 • Board Evaluation Assessment (BEA) for Board of Directors, Board Committees and Self and Peer FY2023 • PwC Malaysia Transparency Report • Proposed Funding Options and Plans for FY2023 and onwards • TNB Equity Portfolio Performance Report for the period ended 31 December 2023 • Notice of 34th AGM • TNB’s Role in Supporting Malaysia Energy Transition Agenda Through Delivery of National Energy Transition Roadmap (NETR) Flagship Initiatives • Corporate Social Responsibilities Proposals • Global ESG Monitor Malaysia Report - Measuring ESG Transparency Practices in Malaysia BOARD CREATING VALUE THROUGH STRONG GOVERNANCESec 4 151 BOARD LEADERSHIP & EFFECTIVENESS approved, or endorsed by each Board Committee, and subsequently affirmed by the Chairman during their respective Board Committee meetings. Under the guidance of the Chairman, the Board engages in transparent discussions on all matters presented. Regular insights and counsel are sought from Senior Executives within the Group, as well as external advisers when necessary, facilitating the Board’s decision-making process. Throughout the review period, the Board delved into a diverse array of topics, fulfilling its obligations with discussions spanning strategy, sustainability, and the operations of the Group, including its principal operating subsidiaries. Financial aspects, legal considerations, compliance, governance, and risk matters were also meticulously scrutinised. Additionally, Board and Board Committee meetings are strategically held at various business operating units or major/new project sites to provide the Board with a firsthand assessment of progress and to address any pertinent issues raised. During the Financial Year under review, the respective Board Committees undertook visits to
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Chairman, the Board engages in transparent discussions on all matters presented. Regular insights and counsel are sought from Senior Executives within the Group, as well as external advisers when necessary, facilitating the Board’s decision-making process. Throughout the review period, the Board delved into a diverse array of topics, fulfilling its obligations with discussions spanning strategy, sustainability, and the operations of the Group, including its principal operating subsidiaries. Financial aspects, legal considerations, compliance, governance, and risk matters were also meticulously scrutinised. Additionally, Board and Board Committee meetings are strategically held at various business operating units or major/new project sites to provide the Board with a firsthand assessment of progress and to address any pertinent issues raised. During the Financial Year under review, the respective Board Committees undertook visits to thefollowing business operations/ongoing projects: • 9 February 2023: Site Visit by BSRC & BAC to Stesen Janakuasa Sultan Azlan Shah, Manjung, Perak • 3 March 2023: Site Visit by BAC to Stesen Janakuasa Kubota and Stesen Janakuasa Tawau, Sabah • 6 August 2023: Site Visit by BAC to Large-Scale Solar Power Plant, Bukit Selambau, Kedah BOARD COMPOSITION AND INDEPENDENCE The Board has conducted a thorough review of the independence status of each Independent Non-Executive Director. Throughout the year, it was confirmed that none of the Independent Non-Executive Directors maintained significant business or other relationships with the Group. Moreover, no other factors were identified that could potentially compromise their independence of character and judgment, aligning with the guiding principles set forth in the MCCG and MMLR. Recognising the paramount importance of independence characteristics delineated in the MCCG, the Board places significant emphasis on the duration of service when evaluating the independence of Independent Non-Executive Directors. As part of its governance
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Stesen Janakuasa Kubota and Stesen Janakuasa Tawau, Sabah • 6 August 2023: Site Visit by BAC to Large-Scale Solar Power Plant, Bukit Selambau, Kedah BOARD COMPOSITION AND INDEPENDENCE The Board has conducted a thorough review of the independence status of each Independent Non-Executive Director. Throughout the year, it was confirmed that none of the Independent Non-Executive Directors maintained significant business or other relationships with the Group. Moreover, no other factors were identified that could potentially compromise their independence of character and judgment, aligning with the guiding principles set forth in the MCCG and MMLR. Recognising the paramount importance of independence characteristics delineated in the MCCG, the Board places significant emphasis on the duration of service when evaluating the independence of Independent Non-Executive Directors. As part of its governance framework,the Board strictly adheres to a tenure limit of nine (9) years for Independent Non-Executive Directors, without further extension, in accordance with Step Up 5.4 of the MCCG. Currently, none of the Independent Non-Executive Directors has exceeded the prescribed nine-year tenure on the Board. • Bi-Annual Reporting to the Malaysian Anti-Corruption Commission • Review of BIC TOR • Training and Communication Plan (TCP) and its Quarterly Updates • Approval on Appointment of Designated Officers receiving complaints for whistleblowing • Role of Integrity Department in Supporting the TNB Sustainability Journey • Endorsement of the Updated Clauses in New COBE and COBE Final Draft for Approval • Approval on TNB Organisational Anti-Corruption Plan (OACP) • Establishment of Approving Authority for TNB Integrity Governance Documents BIC • Approval on Granting and Vesting of LTIP Shares BL TIP • Approval of Procurement within its Approving Authority • Procurement Plan and Strategy • Procurement Issues • Procurement Policies and Procedures BTC • Summaries of the activities of BAC, BNRC and BSRC are available in their
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the Board. • Bi-Annual Reporting to the Malaysian Anti-Corruption Commission • Review of BIC TOR • Training and Communication Plan (TCP) and its Quarterly Updates • Approval on Appointment of Designated Officers receiving complaints for whistleblowing • Role of Integrity Department in Supporting the TNB Sustainability Journey • Endorsement of the Updated Clauses in New COBE and COBE Final Draft for Approval • Approval on TNB Organisational Anti-Corruption Plan (OACP) • Establishment of Approving Authority for TNB Integrity Governance Documents BIC • Approval on Granting and Vesting of LTIP Shares BL TIP • Approval of Procurement within its Approving Authority • Procurement Plan and Strategy • Procurement Issues • Procurement Policies and Procedures BTC • Summaries of the activities of BAC, BNRC and BSRC are available in their respectivereports in this Integrated Annual Report BAC BNRC BSRC • Potential Proposals of Local and International Investment with focus on Renewable Energy • TNB Hurdle Rate Monitoring Update • 2023 Review of TNB Risk Adjusted Rate of Return for Future Investments • Reviewed/Evaluated Investments in Subsidiaries and Associated Companies and Made Appropriate Proposals for any New Investments/Divestments • Proposed capital structure and financing of TNB’s wholly-owned subsidiaries • Proposals for Voluntary Winding up of relevant subsidiaries • Investment Executive Committee (IEC) Report • Alignment of Risk Adjusted Rate of Return and Accounting Rate • TNB Post Investment Review (PIR) Assessment of Commercialised Investments FIC TENAGA NASIONAL BERHAD Integrated Annual Report 2023 152 Identifying and managing principal risks affecting the Company Material Matters Reserved for the Board Link to Strategy Matters Considered by the Board The Board, through the BSRC, holds the mandate to oversee the strength of the Group’s sustainability and risk management frameworks and the efficacy of their implementation to realise strategic objectives and sustainability commitments. Throughout the Financial
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Reviewed/Evaluated Investments in Subsidiaries and Associated Companies and Made Appropriate Proposals for any New Investments/Divestments • Proposed capital structure and financing of TNB’s wholly-owned subsidiaries • Proposals for Voluntary Winding up of relevant subsidiaries • Investment Executive Committee (IEC) Report • Alignment of Risk Adjusted Rate of Return and Accounting Rate • TNB Post Investment Review (PIR) Assessment of Commercialised Investments FIC TENAGA NASIONAL BERHAD Integrated Annual Report 2023 152 Identifying and managing principal risks affecting the Company Material Matters Reserved for the Board Link to Strategy Matters Considered by the Board The Board, through the BSRC, holds the mandate to oversee the strength of the Group’s sustainability and risk management frameworks and the efficacy of their implementation to realise strategic objectives and sustainability commitments. Throughout the Financial Year,the BSRC convened nine (9) sittings, focusing on various aspects of risk management and internal controls. Deliberations included a review of the Statement on Risk Management and Internal Control, which encapsulates Management’s risk management practices and internal controls, along with discussions on Key Risk Indicators (KRIs) aligned with the BSRC’s and Management’s risk appetite. The BSRC receives support from the Chief Risk Officer and the Risk Management Department (RMD) in fulfilling its duties. The RMD ensures the effective implementation of the TNB Risk Management Framework, aligned with ISO 31000:2018, to facilitate informed decision-making. With the establishment of the Sustainability Division during the Financial Year, tasked with executing TNB’s ESG Sustainability Initiative Strategy, the RMD now reports directly to the BSRC, with administrative reporting to the Chief Sustainability Officer. This integration ensures alignment between risk management and sustainability efforts. A significant event during the year was the TNB T op Management Risk Forum, organised by the RMD
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Control, which encapsulates Management’s risk management practices and internal controls, along with discussions on Key Risk Indicators (KRIs) aligned with the BSRC’s and Management’s risk appetite. The BSRC receives support from the Chief Risk Officer and the Risk Management Department (RMD) in fulfilling its duties. The RMD ensures the effective implementation of the TNB Risk Management Framework, aligned with ISO 31000:2018, to facilitate informed decision-making. With the establishment of the Sustainability Division during the Financial Year, tasked with executing TNB’s ESG Sustainability Initiative Strategy, the RMD now reports directly to the BSRC, with administrative reporting to the Chief Sustainability Officer. This integration ensures alignment between risk management and sustainability efforts. A significant event during the year was the TNB T op Management Risk Forum, organised by the RMD underthe theme “Building TNB Resiliency through Effective Risk Management.” Attended by BSRC members, the Group Executive Management Committee, and Senior Management, the forum aimed to cascade BSRC’s risk management directives to TNB’s senior leadership, fostering a robust risk culture across the Group. The BSRC remains committed in its oversight role, ensuring that risk management is seamlessly integrated into strategic planning and decision-making processes to drive the Group’s strategic outcomes and long-term objectives. Based on the evaluation for the Financial Year under review, the Board collectively agreed thatit has discharged its roles in identifying principal risks and in ensuring that the Group has put in place an adequate risk management framework to effectively monitor and manage the risks of its operational businesses. SUMMARY OF BOARD ACTIVITIES IN 2023 Formulating, reviewing and approving the Company’s strategic business plan Material Matters Reserved for the Board Link to Strategy Develop Energy Transition Network Drive Regulatory Evolution Deliver Clean Generation Dynamic Energy Solutions Develop
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TNB’s senior leadership, fostering a robust risk culture across the Group. The BSRC remains committed in its oversight role, ensuring that risk management is seamlessly integrated into strategic planning and decision-making processes to drive the Group’s strategic outcomes and long-term objectives. Based on the evaluation for the Financial Year under review, the Board collectively agreed thatit has discharged its roles in identifying principal risks and in ensuring that the Group has put in place an adequate risk management framework to effectively monitor and manage the risks of its operational businesses. SUMMARY OF BOARD ACTIVITIES IN 2023 Formulating, reviewing and approving the Company’s strategic business plan Material Matters Reserved for the Board Link to Strategy Develop Energy Transition Network Drive Regulatory Evolution Deliver Clean Generation Dynamic Energy Solutions Develop EnergyTransition Network Drive Regulatory Evolution Deliver Clean Generation Dynamic Energy Solutions Matters Considered by the Board The Board assumes a critical role in overseeing the Company’s strategic trajectory and sanctioning corporate strategic endeavours devised by the Management. Annually, the Board scrutinises the Company’s strategic and business plan, including the proposed annual capital and revenue budget for the upcoming year, alongside the KPIs. This ensures that the KPIs align with the Company’s annual strategic and business plan. The Board thoroughly evaluates and deliberates on the Management’s perspectives and assumptions to ensure informed decisions are made, considering all relevant factors. Additionally, an informal session known as the Board Breakout Session (BBO) serves as a platform for the Board and Management to exchange views and opinions, formulate strategic plans and address pertinent issues concerning the Group’s direction and progress. Coordinated by the Company Secretary’s Office, with input from respective Divisions, as required, the BBO facilitates strategic planning and progress reporting.
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sanctioning corporate strategic endeavours devised by the Management. Annually, the Board scrutinises the Company’s strategic and business plan, including the proposed annual capital and revenue budget for the upcoming year, alongside the KPIs. This ensures that the KPIs align with the Company’s annual strategic and business plan. The Board thoroughly evaluates and deliberates on the Management’s perspectives and assumptions to ensure informed decisions are made, considering all relevant factors. Additionally, an informal session known as the Board Breakout Session (BBO) serves as a platform for the Board and Management to exchange views and opinions, formulate strategic plans and address pertinent issues concerning the Group’s direction and progress. Coordinated by the Company Secretary’s Office, with input from respective Divisions, as required, the BBO facilitates strategic planning and progress reporting. Throughoutthe Financial Year, the Board conducted three (3) BBOs, with a focus on TNB’s ESG Strategy: • On 13 February 2023: Deliberations on the Subsidiary Way Forward for TNB’s Sustainability Agenda by the Strategy & Ventures Division, addressing TNB’s subsidiaries in manufacturing, infrastructure, and services. Proposed clustering of subsidiaries and strategic alignment were discussed. • On 25 July 2023: Presentation of the RT 2.0 strategy by the Strategy & Ventures Division, outlining TNB’s roadmap to become a leading provider of sustainable energy solutions by 2030. • On 3 November 2023: Further discussions on RT 2.0 strategy, focusing on key pillars and enablers supporting TNB’s aspiration. Following evaluations, the Board collectively affirmed its thorough review of the Company’s strategic and financial plans, including the monitoring of implementation and KPI alignment to achieve corporate objectives. BOARD LEADERSHIP & EFFECTIVENESS CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 153 Reviewing the adequacy and integrity of the Company’s internal control system Material Matters Reserved for the Board
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& Ventures Division, addressing TNB’s subsidiaries in manufacturing, infrastructure, and services. Proposed clustering of subsidiaries and strategic alignment were discussed. • On 25 July 2023: Presentation of the RT 2.0 strategy by the Strategy & Ventures Division, outlining TNB’s roadmap to become a leading provider of sustainable energy solutions by 2030. • On 3 November 2023: Further discussions on RT 2.0 strategy, focusing on key pillars and enablers supporting TNB’s aspiration. Following evaluations, the Board collectively affirmed its thorough review of the Company’s strategic and financial plans, including the monitoring of implementation and KPI alignment to achieve corporate objectives. BOARD LEADERSHIP & EFFECTIVENESS CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 153 Reviewing the adequacy and integrity of the Company’s internal control system Material Matters Reserved for the Board Linkto Strategy Matters Considered by the Board The Board holds the responsibility of establishing and maintaining a robust reporting framework for internal controls and regulatory compliance across the Company. Following an evaluation of the Financial Year, the Board collectively affirmed its fulfillment of these responsibilities through the diligent efforts of the BSRC/BAC. Regular meetings were conducted to assess the effectiveness of the Company’s internal control system, ensuring alignment with regulatory standards and best practices. BOARD LEADERSHIP & EFFECTIVENESS Overseeing and evaluating the conduct and performance of the Company’s businesses Material Matters Reserved for the Board Link to Strategy Matters Considered by the Board The President/CEO assumes the crucial role of overseeing the Company’s day-to-day operations and executing Group strategies and policies approved by the Board. This responsibility is facilitated by the dedicated support of various Management Committees. Performance evaluations of Management are conducted, primarily assessing the quarterly Company’s and Group’s financial performance. The
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compliance across the Company. Following an evaluation of the Financial Year, the Board collectively affirmed its fulfillment of these responsibilities through the diligent efforts of the BSRC/BAC. Regular meetings were conducted to assess the effectiveness of the Company’s internal control system, ensuring alignment with regulatory standards and best practices. BOARD LEADERSHIP & EFFECTIVENESS Overseeing and evaluating the conduct and performance of the Company’s businesses Material Matters Reserved for the Board Link to Strategy Matters Considered by the Board The President/CEO assumes the crucial role of overseeing the Company’s day-to-day operations and executing Group strategies and policies approved by the Board. This responsibility is facilitated by the dedicated support of various Management Committees. Performance evaluations of Management are conducted, primarily assessing the quarterly Company’s and Group’s financial performance. The Boardreceives regular updates on the advancement of the Company’s strategic initiatives, key operational concerns, and the Group’s performance, all aligned with approved KPIs. Develop Energy Transition Network Deliver Clean Generation Dynamic Energy Solutions Drive Regulatory Evolution Succession Planning Material Matters Reserved for the Board Matters Considered by the Board The Board, assisted by the BNRC, is responsible for developing plans to identify the necessary and desirable competencies and skills of Directors and succession plans to ensure there is appropriate dynamics of skills, experience, expertise and diversity on the Board. In addition, the Board/BNRC also oversees the appointment and succession planning of the T op Management. The selection of candidates and appointment of Independent Non-Executive Director by the Board/BNRC are made with the assistance of independent consultant, whenever necessary. During the Financial Year under review, there were several movement to the Board. This includes the departures of Datuk Rawisandran Narayanan who ceased office
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Energy Transition Network Deliver Clean Generation Dynamic Energy Solutions Drive Regulatory Evolution Succession Planning Material Matters Reserved for the Board Matters Considered by the Board The Board, assisted by the BNRC, is responsible for developing plans to identify the necessary and desirable competencies and skills of Directors and succession plans to ensure there is appropriate dynamics of skills, experience, expertise and diversity on the Board. In addition, the Board/BNRC also oversees the appointment and succession planning of the T op Management. The selection of candidates and appointment of Independent Non-Executive Director by the Board/BNRC are made with the assistance of independent consultant, whenever necessary. During the Financial Year under review, there were several movement to the Board. This includes the departures of Datuk Rawisandran Narayanan who ceased office effective18 May 2023, resignation of Datuk Amran Hafiz bin Affifudin as Non-Independent Non-Executive Director, representing Khazanah with effect from 1 September 2023 as well as his Alternate Director, Elaine Ong Yee Lynn who ceased office concurrently. In addition, Datin Rashidah binti Mohd Sies, a Non-Independent Non-Executive Director and Appointed Director of MoF Inc. resigned effective 12 January 2024, following her retirement from government services. Several new additions were made to the Board duly appointed by BNRC/Board. Muazzam bin Mohamad was appointed as a Non-Independent Non-Executive Director, representing PNB with effect from 1 July 2023. While Selvendran Katheerayson was appointed as Non-Independent Non-Executive Director who represents Khazanah, in place of Datuk Amran Hafiz bin Affifudin with effect from 1 September 2023. His Alternate Director, Elaine Ong Yee Lynn was appointed later effective 24 November 2023. The Board on 27 February 2024 had approved the appointment of Ramzi bin Mansor with the concurrence of MoF Inc. as Non-Independent Non-Executive Director with effect from 1 March 2024. A recent
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Datin Rashidah binti Mohd Sies, a Non-Independent Non-Executive Director and Appointed Director of MoF Inc. resigned effective 12 January 2024, following her retirement from government services. Several new additions were made to the Board duly appointed by BNRC/Board. Muazzam bin Mohamad was appointed as a Non-Independent Non-Executive Director, representing PNB with effect from 1 July 2023. While Selvendran Katheerayson was appointed as Non-Independent Non-Executive Director who represents Khazanah, in place of Datuk Amran Hafiz bin Affifudin with effect from 1 September 2023. His Alternate Director, Elaine Ong Yee Lynn was appointed later effective 24 November 2023. The Board on 27 February 2024 had approved the appointment of Ramzi bin Mansor with the concurrence of MoF Inc. as Non-Independent Non-Executive Director with effect from 1 March 2024. A recent additionto the Board was the appointment of Dato’ Zulkifli bin Ibrahim as Independent Non-Executive Director effective 1 April 2024. During the Financial Year under review, several movement in the T op Management took place. The Board/BNRC deliberated on the succession planning for critical positions in TNB, intended to discover and manage the development of TNB’s future leaders. Ir. Muhamad Nazri bin Pazil was appointed as Managing Director, TNB Power Generation Sdn. Bhd. with effect from 1 July 2023 following the retirement of Dato’ Nor Azman bin Mufti. He was the Managing Director of TNB Repair & Maintenance Sdn. Bhd. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 154 BOARD LEADERSHIP & EFFECTIVENESS Succession Planning Material Matters Reserved for the Board Link to Strategy Matters Considered by the Board In an effort to strengthen sustainability commitments by driving the implementation of ESG strategies as well as Energy Transition, the Board established Sustainability Division and appointed Leo Pui Yong as Chief Sustainability Officer effective 1 June 2023. Prior to her current position, she was the Chief Risk Officer. The Board at its meeting
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development of TNB’s future leaders. Ir. Muhamad Nazri bin Pazil was appointed as Managing Director, TNB Power Generation Sdn. Bhd. with effect from 1 July 2023 following the retirement of Dato’ Nor Azman bin Mufti. He was the Managing Director of TNB Repair & Maintenance Sdn. Bhd. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 154 BOARD LEADERSHIP & EFFECTIVENESS Succession Planning Material Matters Reserved for the Board Link to Strategy Matters Considered by the Board In an effort to strengthen sustainability commitments by driving the implementation of ESG strategies as well as Energy Transition, the Board established Sustainability Division and appointed Leo Pui Yong as Chief Sustainability Officer effective 1 June 2023. Prior to her current position, she was the Chief Risk Officer. The Board at its meeting on27 July 2023 had approved the appointment of Datuk Ir. Megat Jalaluddin bin Megat Hassan as COO with effect from 1 August 2023, whereby several Divisions shall report directly to him namely Strategy & Ventures Division, Regulatory & Stakeholder Management Division, Sustainability Division, Information & Communication Technology Division, Procurement & Supply Chain Division and TNB Global Business Solutions Division. Subsequent to that upon the expiry of service tenure of Dato’ Seri Ir. Baharin bin Din as President/CEO, Datuk Ir. Megat Jalaluddin bin Megat Hassan was appointed by MoF Inc., as President/CEO and Non-Independent Executive Director of TNB for a period of two (2) years with effect from 1 March 2024 until 29 February 2026. We believed his in-depth understanding of the Company’s strategy and day to day operations as well as the industry will facilitate effective decision-making by the Board. Ali Munawar bin Haji Salim was appointed as Company Secretary in place of Norazni binti Mohd Isa following her retirement with effect from 1 January 2024. Ir. Mahathir Nor bin Ismail was appointed as Chief Distribution Network Officer with effect from 1 March 2024, replacing Wan Nazmy bin Wan Mahmood
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upon the expiry of service tenure of Dato’ Seri Ir. Baharin bin Din as President/CEO, Datuk Ir. Megat Jalaluddin bin Megat Hassan was appointed by MoF Inc., as President/CEO and Non-Independent Executive Director of TNB for a period of two (2) years with effect from 1 March 2024 until 29 February 2026. We believed his in-depth understanding of the Company’s strategy and day to day operations as well as the industry will facilitate effective decision-making by the Board. Ali Munawar bin Haji Salim was appointed as Company Secretary in place of Norazni binti Mohd Isa following her retirement with effect from 1 January 2024. Ir. Mahathir Nor bin Ismail was appointed as Chief Distribution Network Officer with effect from 1 March 2024, replacing Wan Nazmy bin Wan Mahmood dueto his retirement. He was the Managing Director of TNB Energy Services Sdn. Bhd. While Feldatun binti Sharif was appointed as Chief People Officer effective 1 April 2024 following the retirement of Wahizan bin Abd Rahman. She was Head, Operations of TNB Global Business Solutions Division. With deep regret we report the demise of our Chief Grid Officer, Ir. Dev Anandan M.S. Anandan on 24 December 2023. The Board of Directors expressed its gratitude and appreciation for the contribution given by the late Ir. Dev Anandan M.S. Anandan during his tenure as Chief Grid Officer. His stewardship, integrity and wisdom will be deeply missed. Hasmarizal bin Hassan was appointed as Chief Grid Officer with effect from 16 April 2024, in place of the late Ir. Dev Anandan M.S. Anandan. He was the Head (Grid Development) of Grid Division. These appointments were made after intensive deliberations and process as well as taking into account their qualifications, working experience, expertise, professionalism, knowledge of the Company and industry as well as assessment by independent expert. The Board is satisfied that the BNRC has efficiently discharged its duties pertaining to the nomination, remuneration and succession management functions as set out in its TOR.
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expressed its gratitude and appreciation for the contribution given by the late Ir. Dev Anandan M.S. Anandan during his tenure as Chief Grid Officer. His stewardship, integrity and wisdom will be deeply missed. Hasmarizal bin Hassan was appointed as Chief Grid Officer with effect from 16 April 2024, in place of the late Ir. Dev Anandan M.S. Anandan. He was the Head (Grid Development) of Grid Division. These appointments were made after intensive deliberations and process as well as taking into account their qualifications, working experience, expertise, professionalism, knowledge of the Company and industry as well as assessment by independent expert. The Board is satisfied that the BNRC has efficiently discharged its duties pertaining to the nomination, remuneration and succession management functions as set out in its TOR. TheBNRC annually evaluates the performance of the President/CEO and T op Management, whose remunerations are directly linked to their respective KPIs. The President/CEO’s remuneration package is reviewed by the BNRC to reflect the contributions made towards the Group’s achievements for the year. The BNRC’s views and recommendations on this are submitted to the Board for its deliberation/approval. Based on the evaluation for the Financial Year under review, the Board collectively concurred that the succession planning for President/CEO and T op Management as well as for the Company’s future leaders has been appropriately developed. SUPPLY OF INFORMATION AND ACCESS TO ADVICE Prior to each Board meeting, a Pre-Board session is convened to facilitate collaboration between Management and the Chairman, allowing for the exchange of insights regarding the upcoming agenda. This collaborative effort shapes the agenda for the Board meetings, ensuring alignment with strategic objectives. Utilising advanced meeting software, agenda and Board papers are securely circulated to Board Members at least five (5) working days in advance, enabling thorough review and preparation. In addition to the Board papers,
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this are submitted to the Board for its deliberation/approval. Based on the evaluation for the Financial Year under review, the Board collectively concurred that the succession planning for President/CEO and T op Management as well as for the Company’s future leaders has been appropriately developed. SUPPLY OF INFORMATION AND ACCESS TO ADVICE Prior to each Board meeting, a Pre-Board session is convened to facilitate collaboration between Management and the Chairman, allowing for the exchange of insights regarding the upcoming agenda. This collaborative effort shapes the agenda for the Board meetings, ensuring alignment with strategic objectives. Utilising advanced meeting software, agenda and Board papers are securely circulated to Board Members at least five (5) working days in advance, enabling thorough review and preparation. In addition to the Board papers, Managementpresentations are provided to enhance Directors’ understanding of the subject matter, allowing for informed discussions. Directors are encouraged to seek further clarification or information during the meeting, promoting an environment conducive to thoughtful decision-making. The core activities of the Board and its Committees are documented and planned on a forward agenda, with any matters arising tracked and addressed in subsequent sessions. The Company Secretary plays a pivotal role in advising the Board on governance matters, facilitating smooth information flow and ensuring compliance with relevant regulations and corporate governance practices. Effective collaboration with stakeholders across all Group functions, coupled with ongoing training and discussions on key issues, is paramount to maintaining governance standards. Both the Board and individual Directors have the autonomy to seek independent or professional advice at the Company’s expense to facilitate well-informed decision-making. This may involve the attendance of external advisers at meetings or obtaining necessary information from within the Group’s workforce. Dynamic Energy
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an environment conducive to thoughtful decision-making. The core activities of the Board and its Committees are documented and planned on a forward agenda, with any matters arising tracked and addressed in subsequent sessions. The Company Secretary plays a pivotal role in advising the Board on governance matters, facilitating smooth information flow and ensuring compliance with relevant regulations and corporate governance practices. Effective collaboration with stakeholders across all Group functions, coupled with ongoing training and discussions on key issues, is paramount to maintaining governance standards. Both the Board and individual Directors have the autonomy to seek independent or professional advice at the Company’s expense to facilitate well-informed decision-making. This may involve the attendance of external advisers at meetings or obtaining necessary information from within the Group’s workforce. Dynamic Energy SolutionsCREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 155 BOARD LEADERSHIP & EFFECTIVENESS BOARD OF DIRECTORS’ FIT AND PROPER POLICY The Board of Directors’ Fit and Proper Policy outlines the criteria for appointing and re-appointing Directors within TNB and its affiliated companies. This policy is structured around three (3) key pillars: character and integrity, experience and competence, and time and commitment. It is readily accessible on the Company’s official website at www.tnb.com.my. DIVERSITY The table below shows the gender diversity of the Board and in the workforce as of to date: Male Female Total Gender No. % No. % No. TNB Board (excluding Alternate Director) 7 58% 5 42% 12 T op Management (comprising GEMC, C-Suite, Senior General Managers) 276 73.8% 98 26.2% 374 Senior Managers 613 64.19% 342 35.81% 955 Managers 1,382 59.54% 939 40.46% 2,321 Executives 1,671 57.17% 1,252 42.83% 2,923 Non-Executives 17,099 85.35% 2,935 14.65% 20,034 Total 21,048 79.07% 5,571 20.93% 26,619 They have exercised the duty of care and diligence as Directors in the best interest of the Company, its
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around three (3) key pillars: character and integrity, experience and competence, and time and commitment. It is readily accessible on the Company’s official website at www.tnb.com.my. DIVERSITY The table below shows the gender diversity of the Board and in the workforce as of to date: Male Female Total Gender No. % No. % No. TNB Board (excluding Alternate Director) 7 58% 5 42% 12 T op Management (comprising GEMC, C-Suite, Senior General Managers) 276 73.8% 98 26.2% 374 Senior Managers 613 64.19% 342 35.81% 955 Managers 1,382 59.54% 939 40.46% 2,321 Executives 1,671 57.17% 1,252 42.83% 2,923 Non-Executives 17,099 85.35% 2,935 14.65% 20,034 Total 21,048 79.07% 5,571 20.93% 26,619 They have exercised the duty of care and diligence as Directors in the best interest of the Company, its shareholdersand stakeholders. Through the Board Evaluation Assessment including Self and Peer Assessment, they have met the performance criteria required of an effective and high-performance Board. In respect of the new appointments made to the Board during the Financial Year, Selvendran Katheerayson, Muazzam bin Mohamad, Datuk Ir. Megat Jalaluddin bin Megat Hassan, Ramzi bin Mansor and Dato’ Zulkifli bin Ibrahim shall retire at the forthcoming AGM in accordance with Clause 63(2) of the Company’s Constitution and being eligible, have offered themselves for re-election. Datuk Ir. Megat Jalaluddin bin Megat Hassan and Ramzi bin Mansor are Appointed Directors of MoF Inc. while Selvendran Katheerayson and Muazzam bin Mohamad represent Khazanah and PNB respectively. In addition, all retiring Directors have declared that they did not have any existing or potential conflict of interest including any interest in any competing business within the Company or its subsidiaries that could affect the execution of their roles as Company Directors. Having considered their fit and proper assessment including declaration of conflict of interest, due diligence for the newly appointed Directors, professionalism, vast experience, material relationship,
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Ramzi bin Mansor and Dato’ Zulkifli bin Ibrahim shall retire at the forthcoming AGM in accordance with Clause 63(2) of the Company’s Constitution and being eligible, have offered themselves for re-election. Datuk Ir. Megat Jalaluddin bin Megat Hassan and Ramzi bin Mansor are Appointed Directors of MoF Inc. while Selvendran Katheerayson and Muazzam bin Mohamad represent Khazanah and PNB respectively. In addition, all retiring Directors have declared that they did not have any existing or potential conflict of interest including any interest in any competing business within the Company or its subsidiaries that could affect the execution of their roles as Company Directors. Having considered their fit and proper assessment including declaration of conflict of interest, due diligence for the newly appointed Directors, professionalism, vast experience, material relationship, competency,commitment and individuals’ contributions in performing their respective duties, the Board and the BNRC are satisfied that all Directors who are standing for re-election at the 34th AGM have met the Board’s expectation by continuously discharging their duties diligently as Company Directors. With that, upon the BNRC’s assessment, the Board resolved to support and recommend the re-election of each Director who is retiring at the upcoming 34th AGM. RE-ELECTION OF DIRECTORS Clause 64(1) of the Company’s Constitution provides, among others, that one-third (1/3) of the Directors at the time being of whom have been longest in office shall retire by rotation at the AGM of the Company and shall be eligible for re-election. Clause 63(2) of the Company’s Constitution provides, among others, that the Directors shall have power at any time and from time to time to appoint any other person to be a Director of the Company either to fill a casual vacancy or as an addition to the existing Directors. Any Director so appointed shall hold office only until the next following AGM of the Company and shall then be eligible for re-election. Ong Ai Lin and
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is retiring at the upcoming 34th AGM. RE-ELECTION OF DIRECTORS Clause 64(1) of the Company’s Constitution provides, among others, that one-third (1/3) of the Directors at the time being of whom have been longest in office shall retire by rotation at the AGM of the Company and shall be eligible for re-election. Clause 63(2) of the Company’s Constitution provides, among others, that the Directors shall have power at any time and from time to time to appoint any other person to be a Director of the Company either to fill a casual vacancy or as an addition to the existing Directors. Any Director so appointed shall hold office only until the next following AGM of the Company and shall then be eligible for re-election. Ong Ai Lin and Dato’Roslina binti Zainal are retiring by rotation in accordance with Clause 64(1) of the Company’s Constitution and being eligible, have offered themselves for re-election. The Board recognises that the Directors’ performance are used as basis in recommending their re-election to the shareholders. This, in turn, is determined through their annual evaluation and independence assessment, which were assessed by the BNRC before any recommendation was made to the Board for deliberation and approval. Based on the annual independence assessment undertaken by both Ong Ai Lin and Dato’ Roslina binti Zainal who are retiring at the coming AGM, the BNRC/Board are satisfied that these Independent Directors have complied with the independence criteria as prescribed by the MMLR and continue to bring independent and objective judgement to the Board. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 156 DIRECTORS’ DEVELOPMENT AND INDUCTION In supporting the Board’s responsibilities, a comprehensive training and development programme is extended to all Directors, with the assessment of training needs embedded within the Board evaluation procedure. This programme encompasses regular presentations from Management and informal meetings, fostering a profound understanding of the business, sector dynamics,
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by the BNRC before any recommendation was made to the Board for deliberation and approval. Based on the annual independence assessment undertaken by both Ong Ai Lin and Dato’ Roslina binti Zainal who are retiring at the coming AGM, the BNRC/Board are satisfied that these Independent Directors have complied with the independence criteria as prescribed by the MMLR and continue to bring independent and objective judgement to the Board. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 156 DIRECTORS’ DEVELOPMENT AND INDUCTION In supporting the Board’s responsibilities, a comprehensive training and development programme is extended to all Directors, with the assessment of training needs embedded within the Board evaluation procedure. This programme encompasses regular presentations from Management and informal meetings, fostering a profound understanding of the business, sector dynamics, andareas acknowledged for their technical complexity. The training initiatives aim to not only deepen comprehension but also endow Non-Executive Directors with insights into how TNB’s practices compared with those of its peers. A robust induction programme is crafted for all new Directors, featuring tailored components such as meetings with T op Management, site visits and briefings on key operational matters, Board procedures, and governance issues. Ensuring a cohesive knowledge base, existing Directors, including the Alternate Director, had attended the Mandatory Accreditation Programme Part I (in relation to a Director’s roles, duties and liabilities) (MAP Part I). In addition, all existing Directors had attended the Mandatory Accreditation Programme Part II in relation to sustainability and the related roles of a Director (MAP Part II). The newly appointed Directors namely Datuk Ir. Megat Jalaluddin bin Megat Hassan, Ramzi bin Mansor and Dato’ Zulkifli bin Ibrahim shall attend the MAP Part I and MAP Part II respectively within the timeframe as stipulated in Paragraph 15.08 and Practice Note 5 of the MMLR. Facilitating the
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tailored components such as meetings with T op Management, site visits and briefings on key operational matters, Board procedures, and governance issues. Ensuring a cohesive knowledge base, existing Directors, including the Alternate Director, had attended the Mandatory Accreditation Programme Part I (in relation to a Director’s roles, duties and liabilities) (MAP Part I). In addition, all existing Directors had attended the Mandatory Accreditation Programme Part II in relation to sustainability and the related roles of a Director (MAP Part II). The newly appointed Directors namely Datuk Ir. Megat Jalaluddin bin Megat Hassan, Ramzi bin Mansor and Dato’ Zulkifli bin Ibrahim shall attend the MAP Part I and MAP Part II respectively within the timeframe as stipulated in Paragraph 15.08 and Practice Note 5 of the MMLR. Facilitating the Boardin organising both internal and external programmes and seminars relevant to Directors’ needs is a responsibility shouldered by the Company Secretary’s Office. This includes the annual in-house Board Development Programme (BDP), an integral component of TNB’s ongoing Board Continuing Development Programme. BDP 2023 was held in collaboration with Messrs. PricewaterhouseCoopers PLT Malaysia, led by its Sustainability and Climate Change team with the theme “Awareness on Sustainability Reporting for the Board of Directors”. It was held on 8 September 2023 at Pusat Konvensyen Leo Moggie, TNB Platinum, No. 3, Jalan Bukit Pantai, 59100 Kuala Lumpur and attended by the Board and T op Management. The topic was relevant as it discussed on Sustainability Reporting Landscape for Corporate Malaysia, customised for TNB’s Board of Directors. Prior to that, the Integrity Department, assisted by the Company Secretary’s Office, organised a specific programme, “The Law Behind Corporate Governance“ by Malaysian Institute Of Corporate Governance (MICG) on 4 September 2023 at M Resort & Hotel Kuala Lumpur for the Board and T op Management to keep abreast with the principles and best practices of
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Malaysia, led by its Sustainability and Climate Change team with the theme “Awareness on Sustainability Reporting for the Board of Directors”. It was held on 8 September 2023 at Pusat Konvensyen Leo Moggie, TNB Platinum, No. 3, Jalan Bukit Pantai, 59100 Kuala Lumpur and attended by the Board and T op Management. The topic was relevant as it discussed on Sustainability Reporting Landscape for Corporate Malaysia, customised for TNB’s Board of Directors. Prior to that, the Integrity Department, assisted by the Company Secretary’s Office, organised a specific programme, “The Law Behind Corporate Governance“ by Malaysian Institute Of Corporate Governance (MICG) on 4 September 2023 at M Resort & Hotel Kuala Lumpur for the Board and T op Management to keep abreast with the principles and best practices of corporategovernance. This was in line with the TCP 2023 approved by the BIC, which required Integrity Department to organise specific training for the Board and T op Management once in the third quarter of 2023. Apart from the BDP 2023, the Company Secretary’s Office in collaboration with Asia School of Business on 20 November 2023 held a Continuous Development Programme for the T op Management and TNB Subsidiaries’ Board Of Directors on “What Amount T o A Conflict Of Interest By Directors”. This capability-building initiative specially designed to provide TNB Nominee Directors with the necessary support to enhance their governance skill, proficiency and governing approach to enable them to act accordingly within the powers bestowed on them in the best interest of the Company and in good faith. It was also to address the enhancement to Conflict of Interest (COI) disclosures made by Bursa Malaysia Securities Berhad in order to improve the quality of COI disclosures of Directors and key senior management and to promote better corporate governance practices and accountability. BOARD LEADERSHIP & EFFECTIVENESS T o date, the following Directors’ Induction Programmes were held for Dato’ Abdul Razak bin Abdul Majid, Dato’
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and TNB Subsidiaries’ Board Of Directors on “What Amount T o A Conflict Of Interest By Directors”. This capability-building initiative specially designed to provide TNB Nominee Directors with the necessary support to enhance their governance skill, proficiency and governing approach to enable them to act accordingly within the powers bestowed on them in the best interest of the Company and in good faith. It was also to address the enhancement to Conflict of Interest (COI) disclosures made by Bursa Malaysia Securities Berhad in order to improve the quality of COI disclosures of Directors and key senior management and to promote better corporate governance practices and accountability. BOARD LEADERSHIP & EFFECTIVENESS T o date, the following Directors’ Induction Programmes were held for Dato’ Abdul Razak bin Abdul Majid, Dato’ Merinabinti Abu Tahir, Datin Rashidah binti Mohd Sies, Rohaya binti Mohammad Yusof, Muazzam bin Mohamad and Selvendran Katheerayson: INDUCTION SESSIONS Group Finance Division: Overview Briefing by Chief Financial Officer Grid Division: Overview Briefing by Chief Grid Officer Group Human Resource Division: Overview Briefing by Chief People Officer Group Internal Audit Department: Overview Briefing by Chief Internal Auditor Distribution Network Division: Overview Briefing by Chief Distribution Network Officer Retail Division: Overview Briefing by Chief Retail Officer New Energy Division: Overview Briefing by Chief New Energy Officer Regulatory & Stakeholder Management Division: Overview Briefing by Chief Regulatory & Stakeholder Management Officer Integrity Department: Overview Briefing by Chief Integrity Development Officer Procurement & Supply Chain Division: Overview Briefing by Chief Procurement Officer Single Buyer Department: Overview Briefing by Head, Single Buyer CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 157 INDUCTION SESSIONS (cont’) TNB Power Generation Sdn. Bhd.: Overview Briefing by Managing Director, TNB Power Generation Sdn. Bhd. Strategy & Ventures Division: Overview
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Overview Briefing by Chief Grid Officer Group Human Resource Division: Overview Briefing by Chief People Officer Group Internal Audit Department: Overview Briefing by Chief Internal Auditor Distribution Network Division: Overview Briefing by Chief Distribution Network Officer Retail Division: Overview Briefing by Chief Retail Officer New Energy Division: Overview Briefing by Chief New Energy Officer Regulatory & Stakeholder Management Division: Overview Briefing by Chief Regulatory & Stakeholder Management Officer Integrity Department: Overview Briefing by Chief Integrity Development Officer Procurement & Supply Chain Division: Overview Briefing by Chief Procurement Officer Single Buyer Department: Overview Briefing by Head, Single Buyer CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 157 INDUCTION SESSIONS (cont’) TNB Power Generation Sdn. Bhd.: Overview Briefing by Managing Director, TNB Power Generation Sdn. Bhd. Strategy & Ventures Division: Overview Briefingby Chief Strategy & Ventures Officer Sustainability Division: Overview Briefing by Chief Sustainability Officer TNB Global Business Solutions Division: Overview Briefing by Chief Global Business Solutions Officer Overview Briefing by COO Grid System Operator Department: Overview Briefing by Head Grid System Operator During the Financial Year under review, the Directors attended, among others, the following conferences and professional training: DATE CONFERENCE/TRAINING ATTENDED Technology/Digital/Cybersecurity 07 February 2023 Sustainability Leadership in 2023: Catalysts, Challenges and Champions 17 February 2023 Demystifying ESG - Understanding Bursa Malaysia's Requirements and ISSB's Global Baseline on Sustainability Reporting 01 March 2023 Automation and Digital Forum 08 March 2023 Invest Malaysia Kuala Lumpur (IMKL) 2023: Reshaping Malaysia’s Narrative: Strengthening Resilience & Sustaining Growth 18 April 2023 Data Breach and Cyber Fraud Prevention 25 May 2023 ICDM PowerTalk Advancing Cyber Resilience: Board's T op 3 Must-Knows 19 June 2023 FIDE
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Officer TNB Global Business Solutions Division: Overview Briefing by Chief Global Business Solutions Officer Overview Briefing by COO Grid System Operator Department: Overview Briefing by Head Grid System Operator During the Financial Year under review, the Directors attended, among others, the following conferences and professional training: DATE CONFERENCE/TRAINING ATTENDED Technology/Digital/Cybersecurity 07 February 2023 Sustainability Leadership in 2023: Catalysts, Challenges and Champions 17 February 2023 Demystifying ESG - Understanding Bursa Malaysia's Requirements and ISSB's Global Baseline on Sustainability Reporting 01 March 2023 Automation and Digital Forum 08 March 2023 Invest Malaysia Kuala Lumpur (IMKL) 2023: Reshaping Malaysia’s Narrative: Strengthening Resilience & Sustaining Growth 18 April 2023 Data Breach and Cyber Fraud Prevention 25 May 2023 ICDM PowerTalk Advancing Cyber Resilience: Board's T op 3 Must-Knows 19 June 2023 FIDE Elective:Understanding the Cybersecurity Landscape 16-17 August 2023 Digital Transformation, Ecosystem & Analytics Strategies 11 October 2023 Leveraging Artificial Intelligence (AI) in Growing the Digital Economy 08 November 2023 Cybersecurity & Data Privacy: The Fight Against Financial Crime ESG/Sustainability 13-17 March 2023 Green Business Building Summit 12 April 2023 Strengthening Confidence Sustainability Reporting 10 May 2023 Suite Talk - Inside Stories of Sustainability Champions 19 May 2023 Sustainability Transition - Innovation As Change Drives 22 May 2023 BMCC: Energy Forum 2023 23 May 2023 Green Market & Investment 24 May 2023 Anti-Corruption, Technology and ESG Reporting 06-12 June 2023 Global Energy Transition New York 2023 08 June 2023 Tan Sri Leo Moggie Lecture Series 2023: Energy Informatics: Symbiosis of Art, Science & Sustainability 13-14 June 2023 MIA Conference 2023: The Future Relevance of the Profession to Drive Sustainable Nation Building 21-22 June 2023 Revving Up the Race For Sustainability Sustainable and Responsible Investment (SRI) Virtual
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November 2023 Cybersecurity & Data Privacy: The Fight Against Financial Crime ESG/Sustainability 13-17 March 2023 Green Business Building Summit 12 April 2023 Strengthening Confidence Sustainability Reporting 10 May 2023 Suite Talk - Inside Stories of Sustainability Champions 19 May 2023 Sustainability Transition - Innovation As Change Drives 22 May 2023 BMCC: Energy Forum 2023 23 May 2023 Green Market & Investment 24 May 2023 Anti-Corruption, Technology and ESG Reporting 06-12 June 2023 Global Energy Transition New York 2023 08 June 2023 Tan Sri Leo Moggie Lecture Series 2023: Energy Informatics: Symbiosis of Art, Science & Sustainability 13-14 June 2023 MIA Conference 2023: The Future Relevance of the Profession to Drive Sustainable Nation Building 21-22 June 2023 Revving Up the Race For Sustainability Sustainable and Responsible Investment (SRI) Virtual Conference2023 27 June 2023 C-Suite Breakfast: People, Planet, Profit - Can Corporation Achieve It All by Operationalising Sustainability? 28 June 2023 Asia Pacific Roundtable: Energy Transition & Coal Phase-Out 13 July 2023 Stepping up to the Role: Objective Assurance & Advisory on ESG 14 August 2023 Sustainability Series: Remarking Corporate Governance for an ESG World Remaking Corporate Governance for an ESG World 24 August 2023 Sustainability Governance and Reporting (The ESG Agenda: Another Flavour of the Season for Boards of Listed Issues?) 24-25 August 2023 41st ASEAN Minister on Energy Meeting and ASEAN Energy Business Forum 2023: Sustainable Energy Security Through Interconnectivity 28-29 August 2023 TNB Energy Transition Conference: Accelerating a Responsible Energy Transition 12 September 2023 Mobilising Clean Energy Investment in Malaysia 12 September 2023 Executive Talk: The Malaysian Electricity Sector Security of the Next Generation 02-03 October 2023 Khazanah Megatrend Forum 2023: Our Next Episode 05 October 2023 Malaysian Carbon Market Forum 19-22 October 2023 24th Conference of the Electricity Power Supply Industry (CEPSI 2023) BOARD
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Advisory on ESG 14 August 2023 Sustainability Series: Remarking Corporate Governance for an ESG World Remaking Corporate Governance for an ESG World 24 August 2023 Sustainability Governance and Reporting (The ESG Agenda: Another Flavour of the Season for Boards of Listed Issues?) 24-25 August 2023 41st ASEAN Minister on Energy Meeting and ASEAN Energy Business Forum 2023: Sustainable Energy Security Through Interconnectivity 28-29 August 2023 TNB Energy Transition Conference: Accelerating a Responsible Energy Transition 12 September 2023 Mobilising Clean Energy Investment in Malaysia 12 September 2023 Executive Talk: The Malaysian Electricity Sector Security of the Next Generation 02-03 October 2023 Khazanah Megatrend Forum 2023: Our Next Episode 05 October 2023 Malaysian Carbon Market Forum 19-22 October 2023 24th Conference of the Electricity Power Supply Industry (CEPSI 2023) BOARD LEADERSHIP& EFFECTIVENESS TENAGA NASIONAL BERHAD Integrated Annual Report 2023 158 DATE CONFERENCE/TRAINING ATTENDED ESG/Sustainability (cont’) 25-26 October 2023 SIEW 2023: Future of the Grid Conference 14-16 November 2023 Enlit Asia Jakarta Conference 2023: Energy Transition 16 November 2023 Malaysian Gas Symposium: Revitalising the Role of Gas in Energy Transition 21 November 2023 Sustainable Investment Academy 28-30 November 2023 Enlit Europe 2023 30 November - 07 December 2023 COP28 UAE: United Nation Climate Change Conference 01-05 December 2023 28th Conference of Parties on Climate Change 11 December 2023 Strategies of Sustainable Business for Future (ESG, GHG & Carbon Footprint Minimization) Risk Management/Compliance 05 April 2023 Building a Robust Whistleblowing Mechanism Through ISO 37002 Whistleblowing Management System 11 April 2023 Corporate Governance Guide 4th Edition: Rise T ogether - Unlocking The Guide to Enable Directors and Management on How to Apply the Malaysian Code On Corporate Governance 2021 in Meeting Bursa’s Reporting Requirements 28 June 2023 Managing Liability of Officers Under Corporate Law 11 July
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16 November 2023 Malaysian Gas Symposium: Revitalising the Role of Gas in Energy Transition 21 November 2023 Sustainable Investment Academy 28-30 November 2023 Enlit Europe 2023 30 November - 07 December 2023 COP28 UAE: United Nation Climate Change Conference 01-05 December 2023 28th Conference of Parties on Climate Change 11 December 2023 Strategies of Sustainable Business for Future (ESG, GHG & Carbon Footprint Minimization) Risk Management/Compliance 05 April 2023 Building a Robust Whistleblowing Mechanism Through ISO 37002 Whistleblowing Management System 11 April 2023 Corporate Governance Guide 4th Edition: Rise T ogether - Unlocking The Guide to Enable Directors and Management on How to Apply the Malaysian Code On Corporate Governance 2021 in Meeting Bursa’s Reporting Requirements 28 June 2023 Managing Liability of Officers Under Corporate Law 11 July 2023Whistleblower Protection Act 2010 by Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) 04 September 2023 The Law Behind Corporate Governance 10 October 2023 Board Oversight of Climate Risks and Opportunities 30-31 October 2023 Board Strategic Risk Analytics & Governance Resilience Executive Masterclass 2023 Board Effectiveness 11 January 2023 Climate Roundtable: Celebrating Success and Looking Ahead 15 March 2023 Building a Company of Integrity 15-16 March 2023 The Leadership for Enterprise Sustainability Asia (LESA) 2023: Building Sustainable Business Excellence 25-26 May 2023 Board Programme Excellence Executive Raoundtable Masterclass SEA 2023 30 May - 1 June 2023 Global Board of Directors Transformation Masterclass 31 May 2023 A Leadership Agenda: Driving Trust From The T op 30 June 2023 CGM Chairperson Masterclass Series: Scaling Up the Circular Economy 06 July 2023 Assessment of the Board, Board Committees and Individual Directors 26 July 2023 Board NRC Dialogue & Networking: NRC’s Role in Championing a Future-Focused Talent Agenda 07 August 2023 Beyond Box-Ticking: Essential for Effective Remuneration Committees 08 August 2023 Board's Role in Value
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2023 Board Effectiveness 11 January 2023 Climate Roundtable: Celebrating Success and Looking Ahead 15 March 2023 Building a Company of Integrity 15-16 March 2023 The Leadership for Enterprise Sustainability Asia (LESA) 2023: Building Sustainable Business Excellence 25-26 May 2023 Board Programme Excellence Executive Raoundtable Masterclass SEA 2023 30 May - 1 June 2023 Global Board of Directors Transformation Masterclass 31 May 2023 A Leadership Agenda: Driving Trust From The T op 30 June 2023 CGM Chairperson Masterclass Series: Scaling Up the Circular Economy 06 July 2023 Assessment of the Board, Board Committees and Individual Directors 26 July 2023 Board NRC Dialogue & Networking: NRC’s Role in Championing a Future-Focused Talent Agenda 07 August 2023 Beyond Box-Ticking: Essential for Effective Remuneration Committees 08 August 2023 Board's Role in Value Creation04-05 September 2023 Leading Organizations & Change 19-20 September 2023 Leading for Impact 11 September 2023 & 13 October 2023 What Amounts to a Conflict of Interest by Directors Audit Oversight 07 March 2023 Forensic Audit and Fraud Examination 27 November 2023 SC's Audit Oversight Board Conversation With Audit Committees Finance & Banking Related 21-23 February 2023 PERE: Global Investor Forum Asia Summit 2023 14 March 2023 EY 2023 Budget and Tax Conference 09-11 May 2023 PERE: Europe Forum 2023 15 May 2023 International Financial Reporting Standard (IFRS) 17 Insurance Contracts 16-17 May 2023 ACIIA CAE Forum 2023: CAEs Pivot to Meet Challenges 06 June 2023 MIA Webinar Series: Strategic Planning Theories T ools and Practice for Business 13-14 June 2023 MIA International Accountants Conference 2023: Future Fit Profession: Charting a Better T omorrow 20 June 2023 Analysis of Recent Tax Cases 2022/2023 BOARD LEADERSHIP & EFFECTIVENESS CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 159 DATE CONFERENCE/TRAINING ATTENDED Finance & Banking Related (cont’) 22 June 2023 ACCA's Council: Eliciting Participation in Workshop/Discussion 13 July 2023 Climate
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Audit Committees Finance & Banking Related 21-23 February 2023 PERE: Global Investor Forum Asia Summit 2023 14 March 2023 EY 2023 Budget and Tax Conference 09-11 May 2023 PERE: Europe Forum 2023 15 May 2023 International Financial Reporting Standard (IFRS) 17 Insurance Contracts 16-17 May 2023 ACIIA CAE Forum 2023: CAEs Pivot to Meet Challenges 06 June 2023 MIA Webinar Series: Strategic Planning Theories T ools and Practice for Business 13-14 June 2023 MIA International Accountants Conference 2023: Future Fit Profession: Charting a Better T omorrow 20 June 2023 Analysis of Recent Tax Cases 2022/2023 BOARD LEADERSHIP & EFFECTIVENESS CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 159 DATE CONFERENCE/TRAINING ATTENDED Finance & Banking Related (cont’) 22 June 2023 ACCA's Council: Eliciting Participation in Workshop/Discussion 13 July 2023 Climate FinanceSummit 20-21 July 2023 Introducing the First ISSB Standards 25-26 August 2023 Investment Team Building 04 September 2023 The Arrival of ISSB Standards and the Continued Relevance of Integrated Reporting Webinar 21 September 2023 ACCA Technical Symposium 2023 Others 12 January 2023 Professor Richard Whish 2nd Lecture Series 15 February 2023 PLC Transformation Programme 15 March 2023 Speed Monitoring Session with Woman Leaders 25 May 2023 The 16th Asia Pacific Thought Leadership Forum (APTL) 06-08 June 2023 Ecosperity Week 2023 14 June 2023 sYnergy 2023: Inclusive Transition 19-21 June 2023 ICGN 2023 Annual T oronto Conference 23 June 2023 Multi Utility in Practice 05-06 July 2023 International Social Wellbeing Conference: Changing the Game, Building the World We Want 10-13 July 2023 IMLC Conference 2023: Navigating the Present, Exploring the Future 12 July 2023 Navigating the Road Ahead: Energising the Future Path 09 August 2023 Suite Talk at Securities Commission Malaysia 13 September 2023 BFF 2023: Convergence of Transformative Innovation With Revolutionary Impact 13-15 September 2023 Milken Institute Asia Summit 2023 01-02 November 2023 Private Markets Summit 2023
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February 2023 PLC Transformation Programme 15 March 2023 Speed Monitoring Session with Woman Leaders 25 May 2023 The 16th Asia Pacific Thought Leadership Forum (APTL) 06-08 June 2023 Ecosperity Week 2023 14 June 2023 sYnergy 2023: Inclusive Transition 19-21 June 2023 ICGN 2023 Annual T oronto Conference 23 June 2023 Multi Utility in Practice 05-06 July 2023 International Social Wellbeing Conference: Changing the Game, Building the World We Want 10-13 July 2023 IMLC Conference 2023: Navigating the Present, Exploring the Future 12 July 2023 Navigating the Road Ahead: Energising the Future Path 09 August 2023 Suite Talk at Securities Commission Malaysia 13 September 2023 BFF 2023: Convergence of Transformative Innovation With Revolutionary Impact 13-15 September 2023 Milken Institute Asia Summit 2023 01-02 November 2023 Private Markets Summit 2023 06-08November 2023 SuperReturn North America Conference 09 November 2023 INTAN Executive Lecture Series (Leadership) 2023 05 December 2023 The IERP Director’s Networking Session - Offensive vs Defensive: Determining the Best Approach for Your Business BOARD LEADERSHIP & EFFECTIVENESS Trainings attended by the Company Secretary during the Financial Year under review: 1) SSM National Conference 2023 - Shared Responsibility In Strengthening AML/CFT Compliance: Risks, Challenges And Collaborations 2) MAICSA Annual Conference 2023 - Revitalising Governance T owards Sustainability 3) 2023 Company Secretary’s Office Executives’ Break-Out Session BOARD EVALUATION Acknowledging the transformative potential of an objective and well-managed board evaluation process, the Board acknowledges its pivotal role in enhancing Board effectiveness, thereby delivering substantial benefits to the Company. This commitment is manifested through annual performance evaluations, thoughtfully designed induction programs for new Board members and a continuous stream of Board development activities. In 2023, the Board with the assistance of BNRC, had engaged an Independent Expert for Board Evaluation
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Best Approach for Your Business BOARD LEADERSHIP & EFFECTIVENESS Trainings attended by the Company Secretary during the Financial Year under review: 1) SSM National Conference 2023 - Shared Responsibility In Strengthening AML/CFT Compliance: Risks, Challenges And Collaborations 2) MAICSA Annual Conference 2023 - Revitalising Governance T owards Sustainability 3) 2023 Company Secretary’s Office Executives’ Break-Out Session BOARD EVALUATION Acknowledging the transformative potential of an objective and well-managed board evaluation process, the Board acknowledges its pivotal role in enhancing Board effectiveness, thereby delivering substantial benefits to the Company. This commitment is manifested through annual performance evaluations, thoughtfully designed induction programs for new Board members and a continuous stream of Board development activities. In 2023, the Board with the assistance of BNRC, had engaged an Independent Expert for Board Evaluation AssessmentFY2023 in support of Practice 6.1 of MCCG whereby for Large Companies, the Board engages independent expert at least every three (3) years, to facilitate objective and candid board evaluations. The last assessment carried out by the independent expert was in 2021. This strategic approach aims to facilitate impartial and candid Board evaluations, fostering a culture of transparency and accountability within the organisation. 2023 BOARD EVALUATION ASSESSMENT RESULTS The 2023 BEA included, but not limited to the following areas: • Board leadership and roles • Board composition, skills and development • Board governance and processes • Board dynamics and culture • Board and Management relationship/Stakeholders’ engagement • Board & support functions TENAGA NASIONAL BERHAD Integrated Annual Report 2023 160 The 2023 BEA was conducted through questionnaires via Online Survey System. The questionnaires for the 2023 BEA comprised the Board, Board Committees Effectiveness Assessment, Directors and Board Committee members’ Self and Peer Assessment (SPA), as well
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candid board evaluations. The last assessment carried out by the independent expert was in 2021. This strategic approach aims to facilitate impartial and candid Board evaluations, fostering a culture of transparency and accountability within the organisation. 2023 BOARD EVALUATION ASSESSMENT RESULTS The 2023 BEA included, but not limited to the following areas: • Board leadership and roles • Board composition, skills and development • Board governance and processes • Board dynamics and culture • Board and Management relationship/Stakeholders’ engagement • Board & support functions TENAGA NASIONAL BERHAD Integrated Annual Report 2023 160 The 2023 BEA was conducted through questionnaires via Online Survey System. The questionnaires for the 2023 BEA comprised the Board, Board Committees Effectiveness Assessment, Directors and Board Committee members’ Self and Peer Assessment (SPA), as well asa 360 Degree Assessment by T op Management. In addition, the newly Appointed Directors had also completed online Saville Wave Assessments to understand their respective and collective stewardship styles and one-on-one online/physical interview sessions were conducted with all Directors. The overall effectiveness of the Board is assessed in the areas of Corporate Strategy and Direction Setting, Board Governance and Oversight, Board Composition, Boardroom Conduct and Dynamics, Board Management and Operation as well as its Key Priorities as well as the effectiveness of the Chairman. The assessment of individual Directors’ contribution and performance is conducted based on performance criteria of which among others are as follows: • will and ability to critically challenge and ask the right questions; • confidence to stand up for a point of view and offer advice/guidance; • character and integrity in dealing with potential conflict of interest situations; • calibre and personality; • commitment to serve the Company; • due diligence and integrity; • fit and properness; • independence and objectivity; • skills and competencies; and •
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the Board is assessed in the areas of Corporate Strategy and Direction Setting, Board Governance and Oversight, Board Composition, Boardroom Conduct and Dynamics, Board Management and Operation as well as its Key Priorities as well as the effectiveness of the Chairman. The assessment of individual Directors’ contribution and performance is conducted based on performance criteria of which among others are as follows: • will and ability to critically challenge and ask the right questions; • confidence to stand up for a point of view and offer advice/guidance; • character and integrity in dealing with potential conflict of interest situations; • calibre and personality; • commitment to serve the Company; • due diligence and integrity; • fit and properness; • independence and objectivity; • skills and competencies; and • contributionand performance. The BEA also included the evaluation of dynamics and culture of the Board especially new Directors’ impact to the overall leadership and risk profile balance. The effectiveness of Board Committees is assessed in terms of structure and processes, accountabilities and responsibilities and its dynamic/composition as well as the effectiveness of the Chairmen of respective Board Committees. The SPA for the Board Committee members is similar to the Directors’ SPA, which is intended to assess their contribution, performance, calibre and personality in relation to the skills, experience and other qualities they bring to the Board/Board Committees. The SPA also examines the ability of each Board or Committee member to give input at meetings and to demonstrate a high level of professionalism and integrity in the decision-making process. It also takes into account the ability of each individual member to exercise independent judgement and demonstrate objectivity and clarity of thought on issues during deliberations at meetings, provide logical honest opinion and offer practical and realistic advice to the discussions. The feedback from the T op Management was also being sought via
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Chairmen of respective Board Committees. The SPA for the Board Committee members is similar to the Directors’ SPA, which is intended to assess their contribution, performance, calibre and personality in relation to the skills, experience and other qualities they bring to the Board/Board Committees. The SPA also examines the ability of each Board or Committee member to give input at meetings and to demonstrate a high level of professionalism and integrity in the decision-making process. It also takes into account the ability of each individual member to exercise independent judgement and demonstrate objectivity and clarity of thought on issues during deliberations at meetings, provide logical honest opinion and offer practical and realistic advice to the discussions. The feedback from the T op Management was also being sought via the360 Degree Assessment questionnaires and interviews. The Management’s feedback on the Board’s role and the extent of collaboration between the Board and Management in certain focus areas and in the review/decision-making process are useful for the Board’s consideration in enhancing its overall effectiveness. Based on the 2023 BEA results, the Board demonstrated solid performance with an overall rating of 4.3 across various effectiveness indicators, including Corporate Strategy & Direction Setting, Board Governance & Oversight, Board Composition, Boardroom Conduct & Dynamics, and Board Management & Operations. Peer assessments further underscored the Directors’ performance with a notable average score of 4.6, indicating that each Director was generally effective in dispensing his/her responsibilities. Building upon the insights from the 2022 BEA, the Board continued to showcase strong and effective leadership in 2023. It was highlighted by both the Board and Management that there was a clear distinction of roles and responsibilities of the Chairman and President/CEO, signalling robust and effective leadership in guiding the Company’s direction. Dato’ Abdul Razak bin Abdul Majid was
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effectiveness. Based on the 2023 BEA results, the Board demonstrated solid performance with an overall rating of 4.3 across various effectiveness indicators, including Corporate Strategy & Direction Setting, Board Governance & Oversight, Board Composition, Boardroom Conduct & Dynamics, and Board Management & Operations. Peer assessments further underscored the Directors’ performance with a notable average score of 4.6, indicating that each Director was generally effective in dispensing his/her responsibilities. Building upon the insights from the 2022 BEA, the Board continued to showcase strong and effective leadership in 2023. It was highlighted by both the Board and Management that there was a clear distinction of roles and responsibilities of the Chairman and President/CEO, signalling robust and effective leadership in guiding the Company’s direction. Dato’ Abdul Razak bin Abdul Majid was ratedas a highly effective Chairman demonstrating decisiveness and an action-oriented approach while creating an open and consultative environment within the Board and effectively delegating responsibilities to Directors, Board Committees and Management. The Board was seen to be effective in ensuring the integrity of the Company is aligned with regulatory requirements, internal standards and best practices. The Board was committed to its fiduciary duties and assumed the core responsibilities of reviewing and monitoring the Group’s strategic plan, overseeing and evaluating the conduct of the Group’s business and establishing sound risk management and internal control frameworks for the Group. Moving forward, the Board recognises the need to establish a clear and well-defined succession plan for both the Board and T op Management, ensuring that the composition, structure and diversity is in line with TNB’s strategic direction. Additionally, the Board recognises the necessity of refining processes to enhance the efficiency and effectiveness of both the Board and its Committees, actively seeking opportunities for continuous
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was seen to be effective in ensuring the integrity of the Company is aligned with regulatory requirements, internal standards and best practices. The Board was committed to its fiduciary duties and assumed the core responsibilities of reviewing and monitoring the Group’s strategic plan, overseeing and evaluating the conduct of the Group’s business and establishing sound risk management and internal control frameworks for the Group. Moving forward, the Board recognises the need to establish a clear and well-defined succession plan for both the Board and T op Management, ensuring that the composition, structure and diversity is in line with TNB’s strategic direction. Additionally, the Board recognises the necessity of refining processes to enhance the efficiency and effectiveness of both the Board and its Committees, actively seeking opportunities for continuous improvement.BOARD LEADERSHIP & EFFECTIVENESS CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 161 BOARD LEADERSHIP & EFFECTIVENESS Responsibility and Conduct Process and Administration Composition • Business strategy and governance and implementation oversight • Risk management and integrity • Implementation oversight and monitoring of strategies and policies • Board Charter and Committee TORs • Agenda and frequency of meetings • Sufficient information availability and on a timely basis • Culture and dynamics • Diversity • Competencies of the members • Board and Committee compositions T op Management’s remuneration package comprises three (3) distinct components: the base salary, fixed allowances and benefits, the Short Term Incentive (STI) and the Long Term Incentive Plan (LTIP). The base salary is set competitively, considering the scope of work, experience, and anticipated performance. Fixed allowances are separate from the base salary and are granted for specific cash benefits. The STI, contingent on annual performance, is disbursed as bonuses, contingent upon the Company’s profitability and the performance of T op Management. Evaluation criteria include
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oversight and monitoring of strategies and policies • Board Charter and Committee TORs • Agenda and frequency of meetings • Sufficient information availability and on a timely basis • Culture and dynamics • Diversity • Competencies of the members • Board and Committee compositions T op Management’s remuneration package comprises three (3) distinct components: the base salary, fixed allowances and benefits, the Short Term Incentive (STI) and the Long Term Incentive Plan (LTIP). The base salary is set competitively, considering the scope of work, experience, and anticipated performance. Fixed allowances are separate from the base salary and are granted for specific cash benefits. The STI, contingent on annual performance, is disbursed as bonuses, contingent upon the Company’s profitability and the performance of T op Management. Evaluation criteria include quantitativetargets and qualitative alignment with the Company’s values. The LTIP is designed to retain and reward T op Management, aligning their interests with the long-term success of the Company. EXECUTIVE DIRECTOR AND TOP MANAGEMENT REMUNERATION The compensation structure for the Executive Director is designed to correlate rewards with both corporate and individual performance. It encompasses salary, allowances, bonuses, and customary benefits aligned with industry standards. A significant part of the Executive Director’s compensation is variable and contingent upon annual performance against individual KPIs embedded in a scorecard aligned with Board-approved corporate objectives. Notably, the Executive Director abstains from participating in discussions and voting on his remuneration during Board meetings. The BNRC conducts an annual review of the Executive Director’s performance, submitting informed views and recommendations to the Board regarding potential adjustments in remuneration or rewards, reflecting the Executive Director’s contributions to the Group’s achievements for the year. One on one interviews with Board of Directors to obtain insights on
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AND TOP MANAGEMENT REMUNERATION The compensation structure for the Executive Director is designed to correlate rewards with both corporate and individual performance. It encompasses salary, allowances, bonuses, and customary benefits aligned with industry standards. A significant part of the Executive Director’s compensation is variable and contingent upon annual performance against individual KPIs embedded in a scorecard aligned with Board-approved corporate objectives. Notably, the Executive Director abstains from participating in discussions and voting on his remuneration during Board meetings. The BNRC conducts an annual review of the Executive Director’s performance, submitting informed views and recommendations to the Board regarding potential adjustments in remuneration or rewards, reflecting the Executive Director’s contributions to the Group’s achievements for the year. One on one interviews with Board of Directors to obtain insights on Boardeffectiveness Board of Directors Interviews Desktop analysis of the Board and Committees charters, meeting frequency and agenda and relevant Corporate Governance reports Board Processes Review Desktop analysis and assessment of Board composition (social and professional diversity) and setup (structure & composition) benchmarked against peer group Diversity and Board Composition Review Board members complete an online assessment of individual professional styles; also to help assess balance of profiles across the full Board Stewardship Style Assessment Completion of Board and management questionnaire Board Assessment Questionnaire Presentation to the BNRC and Board with key findings on strengths and gaps - with potential suggestion for enhancement Action Planning Workshop This year’s process TENAGA NASIONAL BERHAD Integrated Annual Report 2023 162 TNB places a strong emphasis on a performance-driven culture, where the remuneration policy aims to compensate competitively for sustained performance, aligning with shareholders’ interests. The Company, in adherence to
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and relevant Corporate Governance reports Board Processes Review Desktop analysis and assessment of Board composition (social and professional diversity) and setup (structure & composition) benchmarked against peer group Diversity and Board Composition Review Board members complete an online assessment of individual professional styles; also to help assess balance of profiles across the full Board Stewardship Style Assessment Completion of Board and management questionnaire Board Assessment Questionnaire Presentation to the BNRC and Board with key findings on strengths and gaps - with potential suggestion for enhancement Action Planning Workshop This year’s process TENAGA NASIONAL BERHAD Integrated Annual Report 2023 162 TNB places a strong emphasis on a performance-driven culture, where the remuneration policy aims to compensate competitively for sustained performance, aligning with shareholders’ interests. The Company, in adherence to Practice8.2 of the MCCG, opts not to disclose specific components of T op Management’s remuneration, citing potential disadvantages to the Company’s business interests. Further details can be found in the Corporate Governance Report. NON-EXECUTIVE DIRECTORS’ REMUNERATION Non-Executive Directors receive compensation in the form of fixed monthly fees, meeting allowances and benefits-in-kind, covering items such as the reimbursement of utilities bills and business peripherals. The remuneration for Non-Executive Directors is calibrated to address the current challenging landscape in fulfilling their fiduciary duties, roles, and responsibilities. The remuneration structure takes into account the intricacies of the Company’s operations and the industry at large. Notably, the remuneration and benefits for Non-Executive Directors have remained consistent since 2013. The Board in 2023 had engaged an independent expert to conduct a holistic and independent review of the Non-Executive Directors’ Remuneration with the view to determine its market competitiveness and alignment with the latest
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Company’s business interests. Further details can be found in the Corporate Governance Report. NON-EXECUTIVE DIRECTORS’ REMUNERATION Non-Executive Directors receive compensation in the form of fixed monthly fees, meeting allowances and benefits-in-kind, covering items such as the reimbursement of utilities bills and business peripherals. The remuneration for Non-Executive Directors is calibrated to address the current challenging landscape in fulfilling their fiduciary duties, roles, and responsibilities. The remuneration structure takes into account the intricacies of the Company’s operations and the industry at large. Notably, the remuneration and benefits for Non-Executive Directors have remained consistent since 2013. The Board in 2023 had engaged an independent expert to conduct a holistic and independent review of the Non-Executive Directors’ Remuneration with the view to determine its market competitiveness and alignment with the latest regulations/corporategovernance guidelines in Malaysia. The selected peer group used for benchmarking for this year’s study was chosen based on a set of guiding principles that was consistent with the previous study, that consist of the top largest companies by market capitalisation. The key principles used in determining the appropriate remuneration framework for the Non-Executive Directors’ Remuneration, among others were to reflect the complexity, responsibility and accountability of the roles with increasing regulatory demands of Bursa Malaysia and Securities Commission, TNB’s national importance, the competitiveness to attract and retain the talent profiles and to reflect the time and effort dedicated of their roles on the Board and Board Committees. Based on the findings, TNB’s Directors’ fee competitiveness would be between the P50 and P75 of the market. Subsequently, the Board/BNRC agreed to retain the existing Non-Executive Directors’ Remuneration and it is to be reviewed in three (3) years’ time. Remuneration policy Fixed remuneration Benefits-in-kind The
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consistent with the previous study, that consist of the top largest companies by market capitalisation. The key principles used in determining the appropriate remuneration framework for the Non-Executive Directors’ Remuneration, among others were to reflect the complexity, responsibility and accountability of the roles with increasing regulatory demands of Bursa Malaysia and Securities Commission, TNB’s national importance, the competitiveness to attract and retain the talent profiles and to reflect the time and effort dedicated of their roles on the Board and Board Committees. Based on the findings, TNB’s Directors’ fee competitiveness would be between the P50 and P75 of the market. Subsequently, the Board/BNRC agreed to retain the existing Non-Executive Directors’ Remuneration and it is to be reviewed in three (3) years’ time. Remuneration policy Fixed remuneration Benefits-in-kind The Directors’Remuneration Policy is shaped by the following underlying principles: Alignment with strategy and business objectives Alignment with shareholders’ interest Long-term success of the Company Consistency and transparency Reward performance with competitive remuneration Alignment with market/industry practices Support Company values BOARD LEADERSHIP & EFFECTIVENESS CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 163 BOARD LEADERSHIP & EFFECTIVENESS DISCLOSURE ON DIRECTORS’ REMUNERATION Details of each Director’s remuneration for the Financial Year ended 31 December 2023: Name of Directors Salary (RM) Director’s Fees Meeting Allowances Emoluments1 (RM) Benefits-in- Kind2 (RM) T otal (RM) Company (RM) Subsidiaries (RM) Company (RM) Subsidiaries (RM) Executive Director Dato’ Seri Ir. Baharin bin Din (Cessation of Office as Director w.e.f. 29 February 2024) 1,560,000.00 - - - - 2,229,265.00 155, 738.16 3,945,003.16 Non-Executive Directors Dato’ Abdul Razak bin Abdul Majid (Appointed w.e.f. 27 March 2023) - 274,838.70 70,645.163 35,000.00 8,500.003 - 30,062.22 419,046.08 Datin Rashidah binti Mohd Sies (Appointed w.e.f. 10 April
[ 164, 165 ]
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and transparency Reward performance with competitive remuneration Alignment with market/industry practices Support Company values BOARD LEADERSHIP & EFFECTIVENESS CREATING VALUE THROUGH STRONG GOVERNANCE Sec 4 163 BOARD LEADERSHIP & EFFECTIVENESS DISCLOSURE ON DIRECTORS’ REMUNERATION Details of each Director’s remuneration for the Financial Year ended 31 December 2023: Name of Directors Salary (RM) Director’s Fees Meeting Allowances Emoluments1 (RM) Benefits-in- Kind2 (RM) T otal (RM) Company (RM) Subsidiaries (RM) Company (RM) Subsidiaries (RM) Executive Director Dato’ Seri Ir. Baharin bin Din (Cessation of Office as Director w.e.f. 29 February 2024) 1,560,000.00 - - - - 2,229,265.00 155, 738.16 3,945,003.16 Non-Executive Directors Dato’ Abdul Razak bin Abdul Majid (Appointed w.e.f. 27 March 2023) - 274,838.70 70,645.163 35,000.00 8,500.003 - 30,062.22 419,046.08 Datin Rashidah binti Mohd Sies (Appointed w.e.f. 10 April 2023and resigned w.e.f. 12 January 2024) - 174,000.00 - 49,500.00 - - 8.03473 231,534.73 Selvendran Katheerayson (Appointed w.e.f. 1 September 2023) - - - - - - 4,333.00 4,333.00 Rohaya binti Mohammad Yusof (Appointed w.e.f. 20 March 2023) - 187,741.924 - 50,500.00 - - 27,124.35 265,366.27 Muazzam bin Mohamad (Appointed w.e.f. 1 July 2023) - - - 25,000.00 - - 18,029.05 43,029.05 Ong Ai Lin - 240,000.00 - 77,000.00 - - 72,103.69 389,103.69 Juniwati Rahmat Hussin - 240,000.00 - 90,500.00 - - 28,060.30 358,560.30 Gopala Krishnan K.Sundaram - 240,000.00 - 102,500.00 - - 42,982.43 385,482.43 Dato’ Roslina binti Zainal - 240,000.00 - 114,000.00 - - 41,417.06 395,417.06 Dato’ Merina binti Abu Tahir - 240,000.00 - 101,500.00 - - 57,895.15 399,395.15 ElaineOngYeeLynn(AppointedasAlternateDirectortoSelvendranKatheeraysonw.e.f. 24November2023) (AppointedandresignedasAlternateDirectortoDatukAmranHafizbinAffifudinw.e.f.20March2023and 1September2023respectively) - - - - - - - - Datuk Amran Hafiz bin Affifudin (Resigned w.e.f. 1 September 2023) - - - - - - 18,367.30 18,367.30 Datuk Rawisandran Narayanan
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- - 4,333.00 4,333.00 Rohaya binti Mohammad Yusof (Appointed w.e.f. 20 March 2023) - 187,741.924 - 50,500.00 - - 27,124.35 265,366.27 Muazzam bin Mohamad (Appointed w.e.f. 1 July 2023) - - - 25,000.00 - - 18,029.05 43,029.05 Ong Ai Lin - 240,000.00 - 77,000.00 - - 72,103.69 389,103.69 Juniwati Rahmat Hussin - 240,000.00 - 90,500.00 - - 28,060.30 358,560.30 Gopala Krishnan K.Sundaram - 240,000.00 - 102,500.00 - - 42,982.43 385,482.43 Dato’ Roslina binti Zainal - 240,000.00 - 114,000.00 - - 41,417.06 395,417.06 Dato’ Merina binti Abu Tahir - 240,000.00 - 101,500.00 - - 57,895.15 399,395.15 ElaineOngYeeLynn(AppointedasAlternateDirectortoSelvendranKatheeraysonw.e.f. 24November2023) (AppointedandresignedasAlternateDirectortoDatukAmranHafizbinAffifudinw.e.f.20March2023and 1September2023respectively) - - - - - - - - Datuk Amran Hafiz bin Affifudin (Resigned w.e.f. 1 September 2023) - - - - - - 18,367.30 18,367.30 Datuk Rawisandran Narayanan (Cessationof Office as Director w.e.f. 18 May 2023) - 90,967.74 - 35,500.00 - 77,490.00 49,070.04 253,027.78 Datuk Lau Beng Wei (Resigned w.e.f. 6 March 2023) - 43,225.81 - 13,000.00 - 37,500.00 39,784.00 133,509.81 Total 1,560,000.00 1,970,774.17 70,645.16 694,000.00 8,500.00 2,344,255.00 593,001.48 7,241,175.81 Notes: 1. Contribution to EPF, Bonus, Car Allowance, LTIP, Ex-Gratia and Gratuity. 2. Utilities Bills, Business Peripherals, Purchase of Handphone, Uniforms, Club Membership, Medical and Travelling Expenses. 3. Payment made by respective subsidiaries. 4. Paid 50% in respect of Director’s fees directly to EPF. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 164 KEY ACTIVITIES OF THE COMMITTEE During the Financial Year under review, the BNRC held 12 meetings. T o date, the BNRC’s key activities included the approval/deliberation of the following: • Annual Assessment of Independence of Independent Non-Executive Directors • BEA of the Board of Directors, its Committees and each Individual Director by independent expert • Assessment of fit and proper and performance review
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