Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Change to LED bulbs for energy saving and installation of air conditioners with inverter features in offices and production areas.
• Initiated installation of solar systems in qualified factories.

Social Achievements

• Implemented various employee engagement initiatives, including talent management, performance management, continuous development programs, and succession planning.
• Maintained a 30% women representation at the senior management level.
• Consistently participated in community investment programs focusing on education and social welfare.

Governance Achievements

• Embedded sustainability governance across all aspects of operations, with the Board delegating responsibility to the Executive Committee (EXCO).
• Established a Code of Business Conduct Policy, Anti-Corruption Policy, and Whistle-blowing Policy.
• All core manufacturing subsidiaries are accredited with ISO 9001:2015, ISO 13485:2016, AS 9100:D, Nadcap – Chemical Processing, and Nadcap – Aerospace Quality System (AC7004).

Climate Goals & Targets

Environmental Challenges

• Poor financial performance threatening business sustainability.
• Inadequate climate change preparation causing potential production loss.
• Dissatisfied customers leading to revenue loss.
• Disengaged employees jeopardizing company performance.
• Cybersecurity threats to data.
• Unethical supplier practices causing operational disruptions.
• Non-compliance with environmental regulations resulting in penalties.
• Negative community impact affecting social image.
• Ineffective water management increasing costs.

Mitigation Strategies

• Continuous market trend monitoring, expansion, technology advancement, and risk mitigation to achieve business excellence.
• Integration of sustainability into corporate, operational, and financial KPIs.
• Regular internal audits to ensure compliance.
• Frequent customer engagement to improve products and services.
• Periodic review of ERM, EDMS, HRMS, and email systems to ensure data privacy and security.
• Yearly supplier/vendor surveys and performance reviews.
• Implementation of 4Rs (Reduce, Reuse, Recycle, Recover) waste management strategy.
• Water conservation measures and penalties for misuse.
• Establishment of an aluminium extrusion plant to supply materials and support recycling.

Supply Chain Management

Supplier Audits: Yearly supplier/vendor surveys and reviews; due diligence checks before supplier approval.

Responsible Procurement

• Code of Business Conduct Policy
• Anti-Corruption Policy
• Data protection requirements
• Health and safety standards
• ESG expectations

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Opportunities

• Investing in low emissions and green technologies (solar systems)

Reporting Standards

Frameworks Used: Bursa Malaysia Listing Requirements, Bursa Malaysia Sustainability Reporting Guide (3rd Edition), GRI, TCFD, SASB, ISSB

Certifications: ISO 9001:2015, ISO 13485:2016, AS 9100:D, Nadcap – Chemical Processing, Nadcap – Aerospace Quality System (AC7004)

UN Sustainable Development Goals

• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 16 (Peace, Justice, and Strong Institutions)
• Goal 17 (Partnerships for the Goals)

Kobay's commitment to sustainable, profitable growth, market-leading technology, a committed workforce, bonding with customers and suppliers, and promoting employee pride and ownership.

Sustainable Products & Innovation

• Solar frames
• Formed materials for construction structures

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Anti-corruption
• Health & Safety
• Cybersecurity & Data Protection
• Climate Change
• Customers Satisfaction
• Employee Management
• Diversity, Equity and Inclusion
• Human Rights
• Supply Chain Management
• Waste Management
• Community Investment
• Water management

Environmental Achievements

• Installation of solar system in one manufacturing plant (with another planned for 2025)
• Tree planting initiative at Lavanya Resort Sdn. Bhd.
• Reduction in waste sent to landfill through 4Rs (Reduce, Reuse, Recycle, Recover) initiatives (quantified data not provided in report)

Social Achievements

• Launched various employee wellbeing initiatives (details not fully quantified)
• Community investment of MYR 16,700 (details not fully specified)
• Participation in Langkawi Autism Care Centre Walk

Governance Achievements

• Formalization of Code of Business Conduct Policy, Anti-Corruption Policy, Whistle Blowing Policy, Group Human and Resource Policy, Group Finance Policy and Group Standard Operating Policy
• Implementation of Directors’ Fit & Proper Policy
• Ongoing training provided to staff on Code of Conduct and Ethics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical tensions
• Foreign currency exchange rate fluctuations
• Operational disruptions from unforeseen events (natural disasters, pandemics, etc.)
• Subdued demand in the semiconductor sector

Mitigation Strategies

• Diversified supplier base
• Protective measures including forward exchange contracts
• Insurance policies
• Active pursuit of opportunities to broaden customer base

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Adherence to Kobay's Code of Business Conduct Policy and Anti-Corruption Policy
• Due diligence checks on suppliers
• Prioritization of local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001:2015, ISO 13485:2016, AS 9100:D, Nadcap – Chemical Processing, Nadcap – Aerospace Quality System (AC7004)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 16 (Peace, Justice and Strong Institutions)
• Goal 17 (Partnerships for the Goals)

Kobay's initiatives contribute to these SDGs through sustainable business practices, community investment, employee development, and environmental protection.

Sustainable Products & Innovation

• Aluminium extrusion for solar frames and construction structures

Awards & Recognition

• Not disclosed