Citra Nusa Holdings Berhad (formerly known as CNI Holdings Berhad)
Climate Impact & Sustainability Data (2020, 2021)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Economic
- Environmental
- Social
Environmental Achievements
- Overall reduction in paper usage across the organisation through digitalisation of internal and external business processes; recycling 8,300kg of cartons, plastic, shrink wrap, metal and other recyclable materials.
- Improved operations efficiency to reduce hazardous waste generation by effective production planning and thorough review on the use of chemicals, frequency of product change-over, cleaning and sanitation practices.
Social Achievements
- Launched “CNI Mobile Workforce” to encourage employee flexibility; introduced Town Hall Gatherings via Zoom to promote employee engagement and work-life balance.
- Masks4All Malaysia Movement distributing free face masks worth more than RM200,000; CNI Children Education Fund awarding 165 CBOs’ children and employees’ children.
- Achieved two years of zero lost time injury frequency (LTIF) for the Group.
Governance Achievements
- Awarded the BEIM GOLD ETHICS AWARD by the Business Ethics Institute of Malaysia (BEIM); implemented Code of Ethics, Anti-Bribery and Anti-Corruption Policy, and Whistleblower Policy.
Climate Goals & Targets
- Maintain a fine balance between financial performance, shareholder rewards, and the Group’s sustainable future.
- Continue to seize momentum to transform core business towards the new Direct Sales Model; roll out new livestream 2.0, virtual recognition stage platform, and more new digital infrastructure.
- Expand market reach into the Beauty segment with the launch of Myraz beauty care series.
Environmental Challenges
- COVID-19 pandemic impacting global norms and business conduct; production control and lower demand from OEM customers due to MCO and COVID-19.
- Anticipated risks including unexpected vaccine roll-out delays, ineffective containment, vulnerable households, and domestic political uncertainties.
Mitigation Strategies
- Transformation to an online business model; Earn From Home and Everyone Can Earn campaigns; 150 online business courses, live streams & seminars.
- Implementation of robust internal controls, clearly defined limits of authority, standard operating procedures, and processes; enhanced crisis management procedures aligned with Ministry of Health standards; mobile workforce.
Supply Chain Management
Supplier Audits: All suppliers are required to conform to CNI procedures and sign a letter of acknowledgement that they have received and reviewed the CNI Code of Business Ethics and CNI Anti-Bribery & Anti-Corruption Policy.
Responsible Procurement
- Procuring 84% of materials from local suppliers; adhering to purchasing control procedures; suppliers required to conform to CNI procedures and maintain a code of conduct consistent with CNI’s expectations.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Bursa Malaysia Securities Berhad’s Main Market Listing Requirements, Bursa Securities’ Sustainability Reporting Guide
Certifications: ISO 9001:2015, ISO 14001:2015, BS OHSAS 18001:2007, FSSC 22000 (Version 5), MS1480:2007, MS1514:2009, Halal (JAKIM)
Sustainable Products & Innovation
- Shodoku All Purpose Hand Sanitizer; Palmera Antibac Hand Wash; Palmera Antibacterial Shower Cremè; Little Wonder Yummy Ubi.
Awards & Recognition
- BEIM GOLD ETHICS AWARD
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Economic
- Environmental
- Social
Environmental Achievements
- Overall reduction in paper usage across the organisation through digitalisation of internal and external business processes; total saving of 438,571 KWH through process streamlining, reducing the operations hours and mobile workforce; total scheduled waste of 14.79 MT generated for 2021 was treated in accordance with the DOE requirements
Social Achievements
- Successfully organised the second virtual recognition event in line with its 35th anniversary celebration with about 1,000 participants; organised 172 regular online and live streaming events to engage and motivate its CBO force; invested in a total of 477 online trainings with over 4,000 training hours involving 7,406 participants; awarded a special incentive to 54 CBOs’ children along with employees’ children who achieved academic excellence; Yayasan CNI, together with BONIA and Young Malaysian Movement Raja Chulan successfully completed its vaccination programme for 1,500 people; Yayasan CNI supported the White Flag Project via #CNIJagaKita, donating RM30,000 cash to NGOs; collaborated with CBOs to reach out to over 1,243 families financially affected by the pandemic via its Food and Essential Aid Programme; Disaster Relief Program for Keluarga CNI provided relief to CBOs and employees affected by floods
Governance Achievements
- Developed a Group Anti-Bribery and Anti-Corruption Policy; established processes to systematically identify and assess both financial and non-financial business risks; implemented an Occupational Safety and Health (OSH) Management System based on ISO 45001:2018; adopted a whistleblower policy; adopted the Anti-Bribery & Anti-Corruption Policy in compliance with Section 17A of the Malaysian Anti-Corruption Commission Act 2009
Climate Goals & Targets
- Gradually resume field activities with strict adherence to SOP stipulated by the Ministry of Health Malaysia; expect a 20% growth year on year for CBOs
Environmental Challenges
- COVID-19 pandemic; strict lockdown measures; global supply chain crisis; raw material shortages and high raw material prices; high shipping rates; freight availability and long and uncertain lead times; reduction in manufacturing activities due to lower export sales; control of manpower as per SOP compliance at each factory
Mitigation Strategies
- Streamlined business operations and supply chain; reviewed fund position and cost structure for financial sustainability; adapted to new business normalcy and leveraged on digital platforms; initiated various initiatives to support CBOs, including virtual sales and education programmes; sought new OEM customers and penetrated new markets; invested in digital transformation; undertook capital expansion to balance its product portfolio; drove further cost efficiency and focused on value addition in the integrated value chain; established processes to systematically identify and assess both financial and non-financial business risks; implemented a mobile workforce and work from home concept; strictly adhered to the standard operating procedure (SOP) set by the Government
Supply Chain Management
Responsible Procurement
- Procuring 79% of materials from local suppliers; adhering to purchasing control procedures; requiring suppliers to conform to procedures and deliver quality, competitive costing, responsiveness and supply reliability; requiring suppliers to sign a letter of acknowledgement that they have received and reviewed the Code of Business Ethics and Anti-Bribery & Anti-Corruption Policy
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Bursa Malaysia Securities Berhad’s Sustainability Reporting Framework
Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, FSSC 22000 (Version 5), MS1480:2007, Halal certifications from JAKIM
Sustainable Products & Innovation
- Myraz, a complete skin care series; upgraded nine current products; offered two seasonal products