Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance Matters
• Environmental Matters
• Social Matters
• Business ethics
• Legal compliance on environmental matters
• Legal compliance on employment practices
• Anti-corruption and whistle-blowing procedures
• Air and greenhouse gas emissions
• Employment practices
• Waste and effluents
• Occupational health and safety
• Water usage
• Training and development
• Energy usage

Environmental Achievements

• No issues of non-compliance with environmental matters within the organisation in FYE2021.

Social Achievements

• No issues of non-compliance with social matters within the organisation in FYE2021.
• No reports of work-related accidents and injuries and no lost days due to work injuries in FYE2021.

Governance Achievements

• No incidents of bribery or corruption were recorded by the Group in FYE2021.
• The Company is substantially in compliance with the principles and practices set out in the Code as well as the relevant MMLR of Bursa Securities.

Climate Goals & Targets

Environmental Challenges

• The ongoing Covid-19 pandemic presented a disruption to global supply chains and business processes, affecting operational efficiency, order deliverability, and workforce safety and health.
• Shortages of foreign workers due to contract expirations and a freeze in foreign worker recruitment by the Malaysian Government.
• Raw material prices and freight costs continued to be volatile due to supply chain disruptions.
• US Dollar exchange rate volatility impacted profitability.

Mitigation Strategies

• Implemented various precautionary measures at factories and offices to minimise Covid-19 infections and ensure compliance with SOPs.
• Successfully vaccinated all workers against Covid-19 by November 2021.
• Maintained close communications with suppliers and regularly monitored raw material prices.
• Sourced local workers to support production lines and meet delivery orders.
• Focused on leveraging its extensive customer network, productivity, quality service, and product range to enhance its competitive edge.

Supply Chain Management

Supplier Audits: Ongoing

Responsible Procurement

• Evaluation of suppliers
• Supplier audit
• Anti-bribery and corruption briefings

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Sustainability Reporting Guide (2nd Edition)

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Developing a five-year environmental plan targeting a reduction in Scope 1, 2, and 3 emissions; aiming for a 2% annual reduction in Scope 1 emissions from the 2021 baseline and maintaining a CO2 intensity ratio below two tonnes of CO2 per tonne of rubber hose produced.

Social Achievements

• Maintained over 95% customer retention; achieved 29.4% of women employees from the total workforce; implemented additional health and safety measures to safeguard employees amid the COVID-19 pandemic; conducted training programs covering first aid, safety chemical handling, overhead crane safety, forklift safety, and operational procedures.

Governance Achievements

• Established a Sustainability Committee; implemented an Anti-Bribery and Corruption Policy and a Whistleblowing Policy; conducted annual assessments and evaluations of the performance of the Board and Board Committees, as well as each individual Director.

Climate Goals & Targets

Environmental Challenges

• Rising inflation, foreign currency fluctuations, market-related issues, and supply chain disruptions; cost fluctuation of raw materials; general business risks inherent in the manufacturing industry (e.g., economic downturn, labor supply constraints, raw material shortages, legal and tax changes, increased operational costs, foreign exchange fluctuations, and changes in business and credit conditions).

Mitigation Strategies

• Improving operational efficiencies through product development, technology enhancements, automation, and investing in employees; maintaining good business relationships with customers and suppliers; implementing cost control measures; maintaining a buffer inventory of raw materials (up to three months); investing in automation and expanding one of its plants to increase production capacity (approximately RM10 million capital expenditure).

Supply Chain Management

Supplier Audits: Ongoing

Responsible Procurement

• Supplier assessments; Business Associate declaration form; insertion of clause in all invoices, proforma invoices and other communicated materials to customers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards