POH HUAT RESOURCES HOLDINGS BERHAD

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Energy Consumption:29,673,000 kWh/year

ESG Focus Areas

Product Innovation
Human Rights and Labour Practices
Ethical Business Practices
Employee Development, Talent Attraction, and Retention
Product and Service Quality and Timely Delivery
Waste Management and Pollution
Supply Chain, Responsible Sourcing, and Sustainable Products
Energy Management and GHG Emissions
Occupational Safety and Health

Environmental Achievements

Maintained PEFC COC compliant products, signifying products are derived from materials sourced from sustainably managed forests.
Zero fines or penalties imposed on the Group by authorities in relation to environmental pollution-related matters.
Installed necessary dust collector systems in factories to maintain a safe and clean working environment.
Regular testing of air quality surrounding operations to ensure dust emission levels do not exceed regulated levels.

Social Achievements

Implemented a non-discrimination policy.
Provided accommodation for foreign employees in Malaysia in line with stipulated specifications and applicable laws and regulations.
Conducted across-the-board wage adjustment for all employees in Malaysia operations in line with the adjustment of Malaysia's monthly minimum wage.
Ensured compliance with the monthly minimum wage in Vietnam.
Implemented various initiatives, including talent development programmes, to support talents to grow and develop complementary skills.

Governance Achievements

Established a set of Whistleblowing Policies and Procedures.
All Directors, key Senior Management, and key management personnel have undergone integrity training including anti-corruption and anti-bribery topics in the past 3 years.
Communicated with key suppliers and service providers on the integrity expectations of our Group, including anti-corruption and anti-bribery.

Climate Goals & Targets

Short-term Goals:

Conduct gradual assessments of electricity use to identify areas where energy efficiency could be improved.
Explore possibilities of reducing reliance on fossil-based energy and improving energy and emissions intensity performance.
Look into greenhouse gas emission levels with an aim to understand and reduce overall impacts.

Environmental Challenges

Supply chain and logistics challenges arising from pandemic related constraints, geopolitical tensions as well as extreme weather conditions.
High employees’ turnover in Vietnam (79.4% in FY2022).
Increased market competition and pricing pressure.
Increases in the market prices of raw materials.
Disruptions in the supply of raw materials and components.
Increasing competition for production and skilled workers.
Changes in foreign government regulations and in the political, social and economic climates of the countries from which we sell our products.
Changes in the value of the US Dollar compared to the currencies for the countries from which we operate.

Mitigation Strategies

Covid-19 prevention and healthy safety measures to ensure availability of labour for continued production.
Negotiated and made arrangements with suppliers to ensure availability of key raw materials at reasonable prices.
Increased raw materials and finished good inventory as buffer for supply or shipment interruptions.
Negotiated with customers for price adjustments and/or value engineering to mitigate rising costs of materials and productions.
Co-ordinated with customers on production and delivery schedules to manage orders and backlogs, shortage of containers and other logistic disruptions.
Invested approximately RM7.8 million for new machineries and to further improve automation processes in both Malaysia and Vietnam factories.
Worked with customers to forecast orders and shipping schedules to monitor and adjust inventory levels and right sizing workforce and operating hours vis-à-vis production schedules.
Maintained comfortable financial reserves to sustain operations and meet financial commitments.

Supply Chain Management

Responsible Procurement

Supplier evaluation process considering integrity, capability, product availability, and other considerations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Securities Sustainability Reporting Guide – 2nd Edition

Certifications: ISO 9001:2015 (Malaysia operations), PEFC COC (majority of products)

Sustainable Products & Innovation

Modular office furniture systems

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:18,329.64 tCO2e/year (Scope 1 & 2)

Scope 1 Emissions:8,620.35 tCO2e/year (Malaysia), 9,709.29 tCO2e/year (Vietnam)

Scope 2 Emissions:9,593.86 tCO2e/year (Malaysia), 8,332.76 tCO2e/year (Vietnam)

Total Energy Consumption:42,594,366 MJ/year (Malaysia), 39,466,421 MJ/year (Vietnam)