Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emission intensity with higher utilisation of energy efficient equipment
• Minimised ecological footprint by encouraging electronic reading of the annual report and refraining from printing

Social Achievements

• Total CSR investments for the year of RM2.9 million
• Total income tax to Government of RM168 million for 2018
• 418,868 training hours for employees
• SME Platinum Award 2018 for Outstanding Achievers Award from SME Malaysia
• Pearl Award 2018 from Human Resources Development Fund
• Large Employer in Service Industry from Human Resources Development Fund
• Masterclass in International Logistics Hub from Malaysia Excellence Business Awards (MEBA) 2018
• Highest Return on Equity Over Three Years in the Transportation and Logistics Category from The Edge Billion Ringgit Club (BRC) 2018 Awards

Governance Achievements

• Incorporated elements from the Integrated Report framework to provide a more holistic perspective of the company
• Report audited by SIRIM QAS International
• Established track record of accommodating the world’s largest container vessel

Climate Goals & Targets

Environmental Challenges

• Changes to the port of call by Main Line Operators (MLO) and other vessel operators
• Competition from other ports and MLO with joint-ventures with other terminal operators
• Customer concentration (sizable percentage of container volume derived from major MLO)
• Macroeconomic developments (protectionism could contribute to a slowdown in international trade)

Mitigation Strategies

• World-class productivity levels, modern port facilities, IT capabilities, competitive port charges, and excellent responsiveness to customers’ requirements
• Active engagement with clients to assess how to serve them better
• Expansion programme to cater to clients’ longer-term volume requirements
• Deriving more than half of container volume from intra-Asia trade lane
• Pro-active steps including controlling discretionary expenses, scrutinising volume-related costs, reviewing capital expenditures and financial position at greater regular intervals, and engaging actively with clients

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Reporting Standards

Frameworks Used: Integrated Reporting framework

Third-party Assurance: SIRIM QAS International

Awards & Recognition

• SME Platinum Award 2018
• Pearl Award 2018
• Large Employer in Service Industry Award
• Masterclass in International Logistics Hub Award
• Highest Return on Equity Over Three Years Award

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Community Engagement
• Employee Well-being
• Corporate Governance

Environmental Achievements

• Minimised ecological footprint from report printing by promoting electronic reading.
• Reduced some water consumption with rainwater harvesting tanks.
• Supported tree-planting initiatives.

Social Achievements

• Total CSR investments for the year amounted to RM2.7 million.
• Largest employer at Pulau Indah.
• 256,101 training hours in 2020.
• Various community initiatives in Pulau Indah (e.g., visiting senior citizens, assisting poor families).

Governance Achievements

• Good corporate governance practices recognised by ASEAN Capital Markets Forum.
• Adoption of Anti-Corruption and Bribery Policy.
• Strong Board diversity with a wide range of backgrounds and nationalities.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting container volume and global supply chain efficiency.
• Competition from other ports.
• Risks associated with Westports expansion development costs.
• Potential for virus outbreaks affecting workforce.
• Risk of fire or liquid spillage.

Mitigation Strategies

• Disciplined capacity matching with demand, lower bunker prices.
• Active engagement with clients to improve services and long-term expansion plans.
• Optimum berth selection, consideration of environmental factors, cost-competitive construction services.
• Compliance with government guidelines, PPE provision, temperature screening, online meetings.
• Enforcement of safety regulations, fire drills, regular training, maintenance of equipment.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Reporting Standards

Frameworks Used: Integrated Reporting Framework

Third-party Assurance: Bureau Veritas Certification

Awards & Recognition

• Entrepreneur of the Year (ACES)
• Green Port Award (APEC Port Services Network)

Environmental Metrics

ESG Focus Areas

• Economic Impact
• Diversity & Inclusion
• Skills Development
• Community Engagement

Social Achievements

• Increased women's representation in the workforce by 9% (from 2.33% to 2.4%), exceeding the global growth rate of 0.68%
• Increased visible minorities in the workforce to 14%
• Increased average skills training hours per employee by 102%, exceeding the national average of 1.8%
• Contributed MYR 3.8 million towards pandemic- and CSR-related contributions, with CSR growing 106% year-over-year
• Launched Zero Poverty program on Pulau Indah, employing one-third of its workforce from the island

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing severe supply chain shortages and reducing global transportation capacity
• Container throughput declined by 1% despite global recovery of 11.1%
• Low representation of women in the workforce and leadership compared to national and industry averages

Mitigation Strategies

• Invested MYR 371 million in capacity-building, upgrading equipment, and expanding terminals to manage congestion risks
• Increased local procurement from suppliers by 25.5%
• Launched Equal Employment Opportunity Policy to increase women's representation
• Implemented various training and development programs to enhance employee skills

Supply Chain Management

Responsible Procurement

• Increased local procurement from Malaysian suppliers

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 8 (Decent Work and Economic Growth)
• SDG 5 (Gender Equality)
• SDG 4 (Quality Education)

Westports' operations and initiatives contribute to these SDGs through job creation, improved gender balance, and skills development programs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Engagement
• Employee Well-being
• Governance

Environmental Achievements

• Planted 550 mangrove saplings in 2022, total of 9,238 at Pulau Indah
• Commitment to achieving net-zero carbon emissions by 2050
• First in Malaysia to own and operate the Eco Reachstacker by Kalmar to reduce fuel consumption and emissions

Social Achievements

• Total CSR investments for the year amounted to RM3.1 million
• Raised the minimum wage for staff to RM1,500 from 1 January 2022
• 413,112 training hours in 2022
• New staff recruitment of 1,120

Governance Achievements

• Incorporated recommendations and reporting elements of the Task Force on Climate-Related Financial Disclosures (TCFD) into organisational processes
• Received ISO 37001:2016 certification for Anti Bribery Management System

Climate Goals & Targets

Environmental Challenges

• Global economic growth momentum eased
• Higher global energy prices
• Unprecedented weather changes
• Increased prominence of ESG and sustainability agenda
• Higher fuel costs
• Absence of non-recurrent insurance recoveries
• Higher human resources cost
• Competition from other ports
• Supply chain disruptions
• Potential for fire or liquid spillage
• High development costs for proposed expansion

Mitigation Strategies

• Emissions intensity reduction and decarbonisation initiatives
• Regular engagement with clients
• Collaboration with MLO and vessel operators
• Long-term expansion programme discussions with authorities
• Continuous enforcement of safety rules and regulations
• Fire drills and training
• Surveillance audits and regular maintenance
• Comprehensive climate change assessment
• Optimum number of berths during design phase
• Open tender for construction services

Supply Chain Management

Responsible Procurement

• Total Local Procurement of RM354,082,000 in 2022

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise

Transition Risks

• Policy and Regulatory changes
• Technological risks
• Market shifts
• Reputational risks

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 37001:2016

Third-party Assurance: Bureau Veritas Certification (M) Sdn Bhd

Sustainable Products & Innovation

• Eco Reachstacker

Awards & Recognition

• ASEAN Awards 2022 – Lifetime Achievement Award
• The Edge Malaysia ESG Awards 2022 – Gold Award (Most Consistent Performer Over 5 Years)
• The Edge Malaysia ESG Awards 2022 – Gold Award (Transportation and Logistics)
• The Edge Billion Ringgit Club Corporate Awards 2022 – Category of Transportation & Logistics (Highest Growth in Profit After Tax Over 3 years)
• The Edge Billion Ringgit Club Corporate Awards 2022 – Category of Transportation & Logistics (Highest Return on Equity Over 3 years)
• Global Port Forum Award 2022 – Category Best Transshipment Hub Port / Terminal
• Global Port Forum Award 2022 – Category Sustainable Port / Terminal
• Best Employer Award by EPF in 2022
• Malaysia Technology Excellence Awards 2022-Category Infrastructure Technology-Cargo Handling

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emission intensity
• Planted 398 mangrove saplings in 2023, total of 9,636 at Pulau Indah
• Replaced 7 ageing Quay Cranes with 6 new energy-efficient Quay Cranes in 2023

Social Achievements

• Total CSR investments for the year amounted to RM1.6 million
• Total employees cost of RM338 million for salaries and staff costs
• 138,837 training hours in 2023
• New staff recruitment of 548
• Ensured that every single employee obtained at least a living wage

Governance Achievements

• Augmented its overall sustainability and CSR-related practices with ten publicly disclosed policies
• Enhanced risk assessment framework by assessing the severity of harm
• Reinforced procurement selection process with more sustainability elements
• Received ISO 37001:2016 certification for Anti-Bribery Management System

Climate Goals & Targets

Environmental Challenges

• Oversupply of container ships pushed container freight rates lower for most of the year
• Demand for containerised goods did not rebound strongly in the second half of 2023
• Slower-than-expected delivery of firefighting equipment delayed completion of LBT4A
• Competition from other ports
• Fire or liquid spillage
• Westports expansion development cost
• Higher funding cost

Mitigation Strategies

• Actively engage with clients to assess how to serve them better
• Discussing long-term expansion programme with authorities
• Continuous enforcement of safety rules and regulations
• Conduct fire drills and training
• Curtailed development cost by selecting an optimum number of berths
• Incorporate concession period and tariff rates into negotiation
• Open tender to local and foreign construction companies
• Strive to maintain WMSB’s AAA credit rating
• Comply with existing debt covenants
• Establish a new long-term RM5 billion Sukuk Wakalah Programme

Supply Chain Management

Responsible Procurement

• More sustainability elements incorporated into procurement selection process

Climate-Related Risks & Opportunities

Physical Risks

• Damage to premises
• Disruption to operations and supply chain
• Workforce health and safety issues
• Water level increase

Transition Risks

• Policy and regulatory changes
• Technological risks
• Market risks
• Reputational risks

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 37001:2016

Third-party Assurance: BSI Services Malaysia

Sustainable Products & Innovation

• Autonomous electric terminal trucks
• Non-autonomous electric terminal trucks

Awards & Recognition

• Asiamoney, Asia’s Outstanding Companies Poll 2023 – Malaysia, Transportation Sector
• The Edge Malaysia ESG Awards 2023 – Gold Award in Transportation and Logistics
• APSN (APEC Port Services Network) Green Port Award (GPAS) 2023
• The Edge Billion Ringgit Club Corporate Awards 2023 – Category of Transportation & Logistics (Highest Growth in Profit After Tax Over 3 years)
• The Edge Billion Ringgit Club Corporate Awards 2023 – Category of Transportation & Logistics (Highest Return on Equity Over 3 years)