Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Successfully commissioned bio-ethanol plant in Thailand, commencing commercial operation in September 2017. The plant produces ethanol with >99.9% purity.
• Impress Ethanol Co., Ltd. obtained ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 certifications in March 2018.

Social Achievements

• Initiated various in-house training programs focusing on quality leadership and effective performance.
• Provided cash rewards to children of staff who performed well in school examinations.
• Participated in and contributed to various community events and charitable causes in Malaysia and internationally (e.g., MIDA's 50th Anniversary, Danajamin's Mighty7 Run, UNICEF's Christmas Cards sale).

Governance Achievements

• Board comprised of seven Directors, three Executive and four Independent Non-Executive, with more than one-half being Independent and approximately one-third female.
• Annual assessments of the Board, Board Committees, and individual Directors' performance conducted by the Nomination Committee.

Climate Goals & Targets

Environmental Challenges

• Lower revenue contribution from Asia and Oceania and America segments in FY2017 compared to FY2016.
• Fluctuation of revenue recognition depending on new orders and project completion stages.
• Competitive risk.
• Exposure to foreign exchange rate movements.
• Fluctuations in volume and prices of cassava supply (raw material for bio-ethanol plant).

Mitigation Strategies

• Established recurring income streams from renewable energy businesses to mitigate revenue fluctuation risk.
• Signed long-term offtake agreements for bio-ethanol plant to secure future revenue.
• Continuous cost-saving measures.
• Formal hedging policy for foreign exchange fluctuations.
• Close monitoring of cassava market and price movements, negotiating long-term contracts.

Supply Chain Management

Responsible Procurement

• Bulk procurement of essential materials to ensure consistent supply and quality at discounted prices.

Climate-Related Risks & Opportunities

Opportunities

• Diversification into renewable energy and green technology sectors.

Sustainable Products & Innovation

• Bioethanol from cassava/molasses
• Waste-to-energy
• Organic waste to organic fertilizer
• Sulphur and mercury removal systems
• Carbon dioxide capture and storage
• Emission control and waste heat recovery systems

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Replaced traditional lighting with energy-efficient LED lighting in Italian fabrication plant, resulting in 59% electricity saving (474,302 KWh, approximately Euro76,000)
• Reduced wood chip usage by approximately 9.0% per litre of ethanol produced in Thailand bio-ethanol plant compared to 2018
• Reduced water consumption by 7.0% to 8.0% in European subsidiaries compared to 2018
• Planted approximately 5,400 trees around Thailand ethanol plant

Social Achievements

• Implemented HSE systems complying with local regulations and international standards (ISO 14001 & OHSAS 18001)
• Conducted training programs resulting in approximately 3,200 training hours for employees
• Sponsored 32 young technicians to complete technical certification programs in Malaysia
• Implemented a variable pay incentive system to reward employees

Governance Achievements

• Established anti-bribery and anti-corruption awareness programs
• Implemented a succession plan for senior executives

Climate Goals & Targets

Environmental Challenges

• Fluctuation in prices and supplies of raw materials (steel, cassava chips)
• Competition from local and overseas competitors
• COVID-19 pandemic impacting economic activities and supply chains
• Crude oil price drop

Mitigation Strategies

• Developing recurring income businesses
• Locking in prices of major raw materials when contracts are secured
• Negotiating long-term supply contracts and contract farming for cassava chips
• Implementing disciplined and lean cost controls
• Improving operational efficiency through process improvement and operational savings
• Upholding sustainable business initiatives

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Bio-ethanol
• Waste-to-energy

Awards & Recognition

• The BrandLaureate - World Bestbrands Awards 2019
• The BrandLaureate Iconic Brands of the Decade Awards for Manufacturing - Process Equipment
• The BrandLaureate – Brandpreneur Leadership of the Year Awards 2019

Environmental Metrics

ESG Focus Areas

• Financial sustainability
• Occupational health and safety
• Environmental protection

Environmental Achievements

• Reduced electricity consumption per man-hour worked from 3.3Kwh/man-hour to 2.5Kwh/man-hour
• Recycled approximately 98% of 5.3 million metric tonnes of solid waste generated

Social Achievements

• Implemented stringent hygiene policy and other COVID-19 precautionary measures
• Provided approximately 17,806 training hours for employees
• Granted approximately 335 million share options to eligible employees since 2014

Governance Achievements

• Established a Whistleblowing Policy and Guidelines
• Released a new Anti-Bribery and Corruption policy
• Mandated an established professional services firm to roll out anti-corruption and anti-bribery awareness programmes

Climate Goals & Targets

Environmental Challenges

• Financial challenges, including default on bond payments in Thailand
• Supply chain constraints and higher energy prices
• Prolonged slowdown in economic activities worldwide
• Halted production at bio-ethanol plant in Thailand due to increased cassava chip prices

Mitigation Strategies

• Comprehensive remediation and fund-raising plan, including disposal of Borsig GmbH and proposed IPO of FBM Group
• Disciplined and lean cost controls
• Negotiating long-term supply contracts and contract farming for cassava chips
• Exploring opportunities to monetise overseas investments and non-core assets
• Implementing strategies to improve operational efficiency and profitability

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Financial sustainability
• Occupational health and safety
• Environmental protection

Environmental Achievements

• Reduced electricity consumption per man-hour worked from 3.3Kwh/man-hour to 2.5Kwh/man-hour.
• Recycled approximately 98% of 5.3 million metric tonnes of solid waste generated.

Social Achievements

• Implemented HSE systems complying with local regulations and international standards (ISO 14001 & OHSAS 18001).
• Conducted approximately 11,809 training hours for employees.
• Released a new Anti-Bribery and Corruption policy.

Governance Achievements

• Established a KNM Group Sustainability Committee.
• Adopted a Directors Conflict of Interest Policy.

Climate Goals & Targets

Environmental Challenges

• Financial challenges, including PN17 status and debt restructuring.
• Supply chain constraints, higher energy prices, and limited working capital.
• Delays in contract awards and implementation due to the COVID-19 pandemic and the Russia-Ukraine conflict.

Mitigation Strategies

• Comprehensive remediation and fund-raising plan.
• Appointment of advisors for regularisation plan and debt restructuring.
• Monetisation of Thailand-based Impress Ethanol Company Ltd and UK-based Peterborough Green Energy Ltd.
• Negotiations with lenders and creditors.
• Improving operational efficiency and streamlining business operations.

Supply Chain Management

Supplier Audits: 3,083 active suppliers from 58 countries

Climate-Related Risks & Opportunities