Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental
• Social
• Governance

Environmental Achievements

• Converted 100% lightings into LED lightings in FY2022 to improve energy efficiency
• Recycled a total of 201.8 tonnes of materials in FY2022

Social Achievements

• Recorded zero work-related incidents in FY2022
• Organized a total of 28 training and development programs, and recorded a total of 2,047.5 training hours in FY2022
• Donated 200 oxy-meters to families affected by Covid-19 and 30 laptops to underprivileged students in 2021
• Donated RM5,000 each to SJK(C) Chung Hwa Confucian B and Ding Feng Wushu Academy in early 2023

Governance Achievements

• Established a Sustainability Working Group (SWG) in FY2022
• Implemented policies and committees to strengthen corporate governance (Board Charter, Audit and Risk Management Committee, Nominating Committee, Remuneration Committee, Whistleblowing Policy, Code of Conduct and Ethics, Anti-Bribery and Anti-Corruption Policy, Privacy and Personal Data Protection Policy)

Climate Goals & Targets

Environmental Challenges

• Macroeconomic factors resulting in global headwinds, causing slight distortion to demand
• Low economic performance propelling negative sentiment to the investing public
• Advancement in Technology stipulating increasing demand for technically feasible individuals
• Unsettled conditions in the labour market resulting in difficulties to acquire additional manpower
• Ineffective supply chain management causing disruption and disorganization
• Swift advancement in Technology pushing for exploration of more complex areas
• Lack of available local supply causing engagement with foreign suppliers
• Strengthening of regulatory compliance requiring adherence to amendments
• Improper water management causing water pollution and disruption to the local water ecosystem
• Poor waste management leading to health issues and pollution
• Poor management of employee welfare resulting in high employee turnover
• Poor employee management leading to low morale and reduced productivity
• Policies implemented needing regular review to ensure they fit the dynamic environment
• Terms and guidance within policies not providing absolute coverage

Mitigation Strategies

• Well-preserved economic performance mitigating business risk and nurturing consistency to corporate objectives
• Ensuring strong economic performance complementing core competences and establishing perpetual growth
• High innovative culture allowing sustainable competition and maintenance of key success factors
• Implementation of robotic welding, deep learning vision systems, automatic fastening machines, and laser soldering machines to improve productivity, quality, cost-effectiveness, and safety
• Implementation of policies to review all external service providers via an internally generated scoring system
• Use of a Vendor Audit Form to evaluate and approve external service providers
• Supporting local subcontractors and suppliers
• Conversion of 100% lightings into LED lightings
• Employee engagement in energy management efforts
• Recycling of waste materials
• Disposal of domestic waste to approved designated land disposal areas
• Providing fair and competitive compensation and benefits
• Implementing an EHS Policy and forming an Emergency Response Team
• Regular workplace hazard and risk assessments
• Providing ongoing training on health and safety
• Providing OHS measures and equipment
• Scheduling fire drills and emergency evacuations
• Regular review of policies to ensure suitability and feasibility

Supply Chain Management

Supplier Audits: Regularly updated Vendor Audit Form

Responsible Procurement

• Vendor Audit Form

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 5: Gender Equality
• Goal 4: Quality Education
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Not disclosed

Sustainable Products & Innovation

• Robotic Welding
• D&D Robotic Deep Learning Vision
• Automatic Fastening Machine
• Laser Soldering Machine

Awards & Recognition

• The Edge Malaysia announced SFP Tech as the best performing ACE Market IPO over the December 2021 – November 2022 period