Khazanah Nasional Berhad managing director Tan Sri Azman Mokhtar delivering his speech during the 12th Khazanah Global Lectures: An evening with Dame Dr Jane Goodall. IZZRAFIQ ALIAS / The Star. October 31, 2016.
KUALA LUMPUR: Khazanah Nasional Bhd is banking on its Project Chronos, which seeks to measure not just the financial and economic values of the organisation investments but also their societal impact, in its decision moving forward.
Managing director Tan Sri Azman Mokhtar said the project, which was still at the development stage at Khazanah’s research and development lab, measured a company’s true value beyond the market value it ascribed to.
“Project Chronos measures a company beyond the intrinsic value and also covers whether the company is value generating or value destroying from the standpoint of external and stakeholder factors.
“That includes factors such as environment, staff and industrial harmony, economic multipliers such job creation, technology and knowledge formation, development of a supplier base, and corporate responsibility,” he said at the Malaysian Institute of Accountants (MIA) 50th Anniversary Commemorative Lecture here tonight.
Azman said the Chronos initiative began in 2010 with a bottom up valuation of various sustainability initiatives, followed by progressive iterations in 2011 and 2013, before finally rolling out the sustainability adjusted value framework to 24 Khazanah investee companies in 2015 and subsequently, pilot testing Chronos’ societal impact model to 10 investee companies.
“Twenty-one companies under Khazanah’s investment portfolio of around 80 companies, or 20%, involving 76% of the realisable asset value (RAV) of our portfolio, are currently under beta test and within a couple of years, this will be rolled out in full or publicly too,” he added.
Azman’s lecture was themed Accounting and Sustainability: The Role of Accountants, and he repeatedly used the phrase “somewhere over the rainbow”.
“As we look ahead to the future, to the ‘somewhere over the rainbow’, it is especially crucial for accountants to configure their role within the sustainability movement that is slowly but surely encompassing global economic development and, indeed, global business.
“Anchored on each and everyone’s personal duty of care, skill, integrity, independence, courage and professionalism, accountants will have key roles to play in the days to come which I submit to be, custodian, standard bearer, measurer, cheerleader and thought leader,” he added.
Meanwhile, MIA president Datuk Mohammad Faiz Azmi said the milestone of the association’s 50th anniversary was spanned over a few months as a means of appreciating the contributions made by MIA’s stakeholders and members who had been the pillars of our strength for the past five decades.
“The MIA’s 50th anniversary celebration are centred on a journey towards the three core values of the accoutancy profession,” he added. - Bernama
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