Prosumers • Digital platforms TENAGA NASIONAL BERHAD Integrated Annual Report 2023 58 SUSTAINABILITY GOVERNANCE A strong sustainability governance and leadership structure is vital to spearhead our sustainability agenda and provide us with clear and definitive guidance to achieve our net zero aspirations. Our sustainability governance forms a part of the TNB Governance Framework that is aligned with the principles of the Malaysian Code on Corporate Governance (MCCG). The TNB Sustainability Governance Structure is in place to facilitate oversight, strategic management, and implementation of sustainability strategies and initiatives at all levels. A key development to strengthen the TNB Sustainability Governance Structure is the formation of the BSRC, which has taken effect on 25 August 2023. Our BOD continues to demonstrate its commitment towards our sustainability agenda by expanding the oversightscope of the TNB Board Risk Committee to include sustainability; with that, the Board Risk Committee was renamed BSRC with enhanced terms of reference. The BSRC remains dedicated to overseeing the effective implementation of sustainability initiatives with robust risk management to address exposures and harness opportunities and to ensure strategic integration of sustainability into operations and decision-making. T o further enhance the deployment of our sustainability strategies, the BOD approved the formation of the Sustainability Division, which our first Chief Sustainability Officer has led since June 2023. The primary function of the Sustainability Division is to ensure the effective deployment of our sustainability strategies to meet targets and to strengthen sustainability governance across the Group. The division engages, facilitates, and advises the Business Entities on their day-to-day implementation of sustainability and energy transition initiatives. SPEARHEADING OUR SUSTAINABILITY AGENDA THROUGH STRENGTHENED GOVERNANCE STRUCTURE Cross reference with the BSRC membership and TOR in the IAR under the