Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Successful installation and commissioning of solar power at company factory in August 2019. Solar Photovoltaic modules: 2,120 pieces. System capacity: 699.6 kWp (kilowatt peak). Estimated annual solar energy yield: 936 MWh. Based on one month of data since installation in August, solar usage reduced approximately 84.15 tonnes of carbon dioxide equivalent, equal to planting 4,598 trees.

Social Achievements

• Gold Sponsor for Technology, Education & Career (TEC) 2019, Universiti Teknologi Petronas, Perak.
• Academic Industrial Hybrid Programme – Signing Ceremony 15 March 2019
• UTP Career Fair Technology Education & Career 2019 29 – 30 January 2019
• Visit from UTP Tronoh Product Design & Development final year Mechanical Engineering Students 13 March 2019
• Blood Donation Drive 18 October 2018
• Salutica Run 2018 26 October 2018
• Fire Drill 23 November 2018
• Health Screening 11 January 2019
• Personal Protective Equipment (PPE) and Fit Test Safety awareness conducted by an equipment supplier 18 March 2019
• First Aid Training 19 – 20 March 2019
• Safe Handling of Chemical & Spillage Training 16 – 17 April 2019
• Anti-Corruption and Anti-Bribery training 7 August 2019

Governance Achievements

• Established a Sustainability Policy and committee on 1 January 2018 to carry out the objectives of the Policy.
• Complied with OHSAS 18001:2007, ISO 14001:2015, and ISO 9001:2015 certifications.

Climate Goals & Targets

Environmental Challenges

• Immense global uncertainties, partly contributed by the current trade tension between the United States of America and China, affecting consumer demand and impacting the Group’s revenue and financial performance.
• Weaker demand for current running Bluetooth headset products.
• Longer than expected development cycle of the latest generation Bluetooth headset.
• Higher line setup costs due to under-utilisation of production line as a result of lower production volume for current running products.
• Inefficient absorption of fixed overheads due to low revenue.

Mitigation Strategies

• Extraordinary efforts in managing the cost of business despite lower revenue.
• Transformative initiatives to meet the expectations of current customers and secure new potential customers.
• Cost savings arising from production shut-downs in the months with low production volume and early termination of selected contract workers.
• Creating new opportunities arising from the global trade tension between the United States of America and China, culminating in the transfer of manufacturing of electronic products from China to Malaysia as well as onboarding new customers from a wider product category.
• Investing in technology and growing R&D capabilities to maintain competitiveness.
• Collaboration with technology partners.
• Installation of a grid connected solar system at the Ipoh plant to reduce energy costs and carbon footprint.

Supply Chain Management

Responsible Procurement

• Sustainable procurement policies
• Assessment and evaluation of existing and new suppliers
• Raw materials and parts supplied are in accordance with the Group’s materials requirements to avoid unnecessary wastage and scraps
• Raw materials are in compliance with Restriction of Hazardous Substances (“ROHS”), Registration, Evaluation, Authorisation and Restriction of Chemicals (“REACH”) and halogen-free, amongst others, wherever applicable.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• FOBO branded products (Bluetooth tyre pressure monitoring system)

Awards & Recognition

• MPC (Malaysia Productivity Corporation) TEAM EXCELLENCE REGIONAL CONVENTION (RTEx) 2018 Gold Award
• Annual Productivity & Innovation Conference & Exposition 2018 (APIC 2018) 4 stars awards

Environmental Metrics

ESG Focus Areas

• Business Performance & Growth
• Quality and Customer Satisfaction
• Corporate Governance and Ethical Behaviour
• Environmental
• Workplace Management

Environmental Achievements

• Carbon dioxide reduction (tonne) 579.3 (FYE2022: 650.7)
• Installation of solar photovoltaic (“PV”) panels on the factory rooftops to harvest solar energy to power the factory electricity needs since August 2019. Further installation expected to be fully operational by November 2023.
• Achieved ISO 14001:2015 (Environmental Management System) certification
• No reported case of environmental violations or fines from the local authorities in FYE2023 (FYE2022: zero incident)

Social Achievements

• Conducted 36 trainings (FYE2022: 36) on various topics ranging from technical courses to health & safety including updates on Employment Act Amendment 2022 and also training on soft skills such as effective communications and negotiations skills.
• Hired 35 interns (FYE2022: 42 interns)
• Achieved Compliance Level Grade A during audit conducted by Jabatan Keselamatan dan Kesihatan Pekerjaan Perak (“JKKP”) in June 2023.
• Zero discrimination, bullying and harassment complaints received in FYE2023 (FYE2022: Zero case)
• No complaint received from our employees in regard to labour practices concern and non-compliance to the laws and regulations in FYE2023.

Governance Achievements

• Established a Sustainability Management Committee (“SMC”) led by CEO, comprising Senior Management and Heads of Department (“HOD”).
• Adopted an Anti-Corruption and Bribery Policy applicable to everyone within the Group.
• Conducted trainings and awareness on Anti-Corruption and Bribery Policy to the Directors, senior management and employees and also incorporated in our induction training program for all new employees.
• Zero corruption-related cases and ethical concerns reported in FYE2023 (FYE2022: Zero incidents)
• Established a Whistle-blowing Policy to facilitate employees and other stakeholders to disclose any improper conduct or wrongdoing through internal channel.

Climate Goals & Targets

Environmental Challenges

• Low order volume for TWS headsets and the cessation of production of computer peripherals.
• Ongoing economic uncertainties, combined with the impact of high interest rates, changed consumer spending patterns and affected the demand for consumer lifestyle devices.
• Higher line setup costs due to production inefficiencies resulting from low production volume.
• Inefficient absorption of fixed overhead costs.
• Increase in Imbalance Cost Pass-Through (“ICPT”) from RM0.037/kWh to RM0.20/kWh from January 2023 to June 2023.
• Globally disrupted supply chains and escalating operational costs.

Mitigation Strategies

• Implemented numerous efficiency improvement initiatives and strategic cost-cutting measures.
• Undertook Voluntary Separation Scheme (“VSS”) to optimise our workforce to reduce costs in the long term and also adjustments to remuneration taking into account of the VSS.
• Investing significant effort in expanding our product and service offerings, prioritizing both our loyal customer base and potential clients.
• Actively pursuing industry-specific certifications (IATF 16949 for automotive industry).

Supply Chain Management

Supplier Audits: Annual supplier evaluation

Responsible Procurement

• Prioritising procurement of goods and services from local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, MMLR

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, EN ISO 13485:2016, ANSI/ESD S20.20-2014

Sustainable Products & Innovation

• FOBO tire pressure monitoring systems