Climate Change Data

Mr D.I.Y. Group (M) Berhad

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:9,900 tCO2e/year (Scope 1)
Scope 1 Emissions:9,900 tCO2e/year
Scope 2 Emissions:75,000 tCO2e/year (Stores)
Scope 3 Emissions:25 tCO2e/year (Suppliers)
Renewable Energy Share:15.7% of total energy use (Distribution Facilities)
Total Energy Consumption:128,000 MWh/year (Stores)
Water Consumption:157,000 m3/year (Stores and Distribution Facilities)
Waste Generated:717 tons/year (biodegradable plastic)
Carbon Intensity:68.7 kg CO2-eq per 1,000 transactions (Scope 1)

ESG Focus Areas

  • The Environment
  • Our People
  • The Communities Around Us
  • The Business and Sustainability of Profits
  • Customer Satisfaction
  • Impact on Local Communities

Environmental Achievements

  • Scope 1 emission intensity is 6.9% lower year-on-year to 68.7 kg CO2-eq per 1,000 transactions
  • The average water consumption for 17 distribution facilities has decreased by 10.8% compared to FY2021
  • More than doubled the use of solar energy at its distribution facilities (15.7% of total annual electricity consumption)

Social Achievements

  • More than 193,600 training hours that benefitted more than 13,000 employees
  • 94.0% positive rating on customers satisfaction survey
  • Invested a total of RM2.3 million that benefitted more than 126,000 beneficiaries

Governance Achievements

  • Development of ESG policies for Group-wide implementation
  • Published first sustainability report based on GRI and F4GBM index standards
  • Established baseline and ESG KPIs and targets

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • 30% of Total Energy to be Renewable Energy (“RE”) by 2030
  • 10% of total revenue from eco-products by 2030
  • 30% reduction in Scope 2 Emissions: megawatt-hour (“MWh”) per store by 2030
  • 20% reduction in Scope 1 Emissions: diesel per 1,000 transactions by 2030
Short-term Goals:
  • Install energy saving devices for another 200+ stores by the end of FY2023

Environmental Challenges

  • How does an organisation manage its ESG impact, in particular its environmental footprint as it consumes more resources to fuel business expansion?
  • How do we provide more sustainably sourced products with a high level of traceability while ensuring that these products remain affordable and accessible to customers of diverse demographic segments?
Mitigation Strategies
  • MR. D.I.Y. will continue to endeavour to seek opportunities to embrace and leverage sustainability as a strategy for business improvement while progressively transforming the Group into a company that serves the greater good.

Supply Chain Management

Supplier Audits: 250 vendors signed the Vendor Code of Conduct

Responsible Procurement
  • Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Potential floods or flash floods
  • Potential losses include potential inventory write off, damage to stores and distribution facilities
  • Floods can also impact local and overseas logistic network
  • Floods can also impact customer foot traffic to stores and affect sales
  • Floods may disrupt employees ability to commute and report to work
Transition Risks
  • Potential transitional risks include existing and new changes in governmental legislation, industry policies and standards as well as stricter requirements by the regulators.
  • Additional risks include any negative quotas or caps imposed on carbon emissions going forward.
Opportunities
  • Ability to leverage on customers’ growing ESG awareness and preference towards more eco- friendly products.
  • Potential to leverage on lower cost financing i.e. Green Financing
  • Greater access to government and regulatory engagement and to collaborate or lobby for increased support such as tax relief for the retail sector as it transitions towards becoming more sustainable.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • eco-products

Awards & Recognition

  • Putra Enterprising Brand of the Year 2022
  • world Branding Awards 2022 Regional Award, Top Home Improvement Retail Brand
  • Frost & Sullivan Best Practices Award 2022 Malaysia Home Improvement Retail Company Of The Year
  • Deloitte Malaysia Best Managed Companies Awards 2022
  • The Edge ESG Awards Best Newcomer In The Equities Category

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Environmental protection
  • Improving the health and well-being of the population
  • Supporting capacity-building and development programmes
  • Promoting and nurturing Malaysia’s rich arts and culture
  • Sustainability

Environmental Achievements

  • Reduced use of single plastic bags per 1,000 transactions from 3.3kg per 1,000 transactions in FY2021 to 2.5kg per 1,000 transactions in FY2023
  • Installation of solar panels at headquarters and distribution facilities as well as selected stores

Social Achievements

  • Launched Yayasan MR. D.I.Y. (MR. D.I.Y. Foundation) in July 2023, implementing more than 175 community impact programmes in FY2023, positively impacting the lives of 58,000 people
  • Workforce grew by 8.9%, from 16,500 at the close of FY2022 to more than 18,000 at the close of FY2023; 84% Malaysians
  • Invested close to 359,800 hours in internal and external training and engagement programmes in FY2023, up 85.8% from FY2022
  • Employee satisfaction survey score standing at 91%, up 1% from 2022

Governance Achievements

  • Improved ESG Ratings by FTSE4Good and Morningstar Sustainalytics; from High Risk Rating of 31.4 in FY2022 to 18.9 in FY2023 (Low Risk)
  • Established a comprehensive Enterprise Risk Management (ERM) Framework
  • Adopted a comprehensive COI Policy

Climate Goals & Targets

Medium-term Goals:
  • 30% of products locally sourced by 2025
Short-term Goals:
  • Open 180 new stores in FY2024

Environmental Challenges

  • Challenging economic environment with muted customer sentiment due to rising food prices, cost of living pressures, rising interest rates, and the depreciation of the ringgit
  • Reduction in government cash handouts
  • Down-trading by customers
  • Depreciating ringgit driving young Malaysians to seek job opportunities in other markets
  • Muted retail market making it less attractive for young Malaysians to consider careers in retail
Mitigation Strategies
  • Focused strategy to grow store network
  • Improved operational efficiencies
  • Strengthened direct relationships with manufacturers worldwide to command competitive pricing and ensure availability of in-demand products
  • Accelerated automation and technology with a new automated warehouse
  • Strengthened employee value proposition with fair wages, training, upskilling, and wellbeing programs
  • Recalibration and adjustment for MR. DOLLAR brand

Supply Chain Management

Responsible Procurement
  • Strengthening relationships with manufacturers globally
  • Target to have 30% of products locally sourced by 2025

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Malaysian Code on Corporate Governance 2021 (MCCG), Main Market Listing Requirements (MMLR) of Bursa Malaysia Securities Berhad, Companies Act 2016

Awards & Recognition

  • Putra Enterprising Brand of the Year 2023
  • World Branding Awards 2023 Regional Award, Top Home Improvement Retail Brand
  • Frost & Sullivan Best Practices Award 2023 Malaysia Home Improvement Retail Company Of The Year
  • Talent Bank Graduate Choice Award Malaysia’s Most Authoritative Graduate Employer Branding