Climate Change Data

Kelington Group Berhad

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:12,958 tCO2e/year
Scope 1 Emissions:10,688 tCO2e/year
Scope 2 Emissions:2,270 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:9,377 MWh/year
Water Consumption:24,791 m3/year
Waste Generated:200 tons/year (construction waste)
Carbon Intensity:1,252 CO2e tonnes/RM million EBITDA (Industrial Gases Division)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions intensity by 46% in 2021 (Industrial Gas Division)
  • Reduced water intensity by 12% in 2021 (Industrial Gases Division)
  • Reduced electricity intensity by 23% in 2021 (Industrial Gases Division)
  • Reduced non-recycled waste intensity by 68% in 2021 (Engineering Division)
  • Recycled 39 tonnes of industrial waste in 2021
  • Reduced construction waste by 40.4% in 2021 compared to 2020
  • Generated 18,557 kWh of solar power in 2021

Social Achievements

  • Maintained zero work-related fatalities
  • Increased average training hours per employee to 14.25 in 2021
  • Achieved 25% female representation in executive level and above in 2021
  • 10% female representation on the Board of Directors in 2021
  • Supported 5 children from 2 families through Project Sambung Sekolah
  • Donated RMB50,000 to the Core Liver Baby Program in China

Governance Achievements

  • Achieved a Four-Star grading band in the ESG rating
  • Admitted into the FTSE4Good Bursa Malaysia (F4GBM) Index in December 2021
  • No cases of non-compliance of laws and regulations against acts of corruption

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce GHG emissions intensity by 5% by FY2024
  • Reduce water intensity by 5% by FY2024
  • Reduce electricity intensity by 5% by FY2024
  • Reduce non-recycled waste intensity by 5% by FY2024
  • Complete briefings on Kelington’s expectations to all key external providers by December 2024

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic
  • Challenges in imposing sustainability practices on smaller suppliers
  • COVID-19 pandemic affecting overall operational efficiency and employee productivity
Mitigation Strategies
  • Implemented split operations and reduced on-site workforce to ensure a safe working environment during the COVID-19 pandemic
  • Established a group-wide sustainable supply chain working group to communicate sustainability expectations to key vendors
  • Implemented a Resource Efficiency Program to reduce waste
  • Developed a water management plan to optimize water usage

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Communicating Kelington’s expectations to key vendors
  • Incorporating additional evaluation sections into sub-contractor qualification process

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, Sustainability Reporting Guide (Bursa Malaysia)

Certifications: ISO 14001:2015 (EMS), ISO 45001:2018 (OHSMS) (95% certified), ISO 9001 (Engineering business), FSSC 22000 (Industrial Gases business), Halal certification (Industrial Gases business)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 9 (Industry, Innovation and Infrastructure)
  • SDG 13 (Climate Action)

Initiatives described throughout the report contribute to these goals

Sustainable Products & Innovation

  • New UHP equipment developed at R&D center in China

Awards & Recognition

  • Four-Star ESG rating
  • FTSE4Good Bursa Malaysia (F4GBM) Index inclusion

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:47,782 tCO2e/year
Scope 1 Emissions:11,173 tCO2e/year
Scope 2 Emissions:3,004 tCO2e/year
Scope 3 Emissions:33,605 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:12,887 MWh/year
Water Consumption:31,241 m3/year
Waste Generated:717 tons/year (construction waste)
Carbon Intensity:763 tCO2e/RM million EBITDA in FY2022 (Industrial Gases Division)

ESG Focus Areas

  • Climate Change
  • Pollution and Waste Management
  • Resources Management
  • Support Biodiversity
  • Occupational Safety & Health
  • Talent Management & Development
  • Diverse and Inclusive Workplace
  • Respect Human Rights
  • Sustainable Supply Chain
  • Community Investment
  • Governance & Ethics
  • Economic Growth & Profitability
  • Quality Products & Services
  • Technology & Operational Innovation

Environmental Achievements

  • Reduced CO2 emissions intensity by 39% in FY2022 (Industrial Gases Division)
  • Reduced electricity intensity by 27% in FY2022 (Industrial Gases Division)
  • Reduced water intensity by 37% in FY2022 (Industrial Gases Division)
  • Reduced non-recycled waste intensity by 27% in FY2022 (Engineering Division)
  • Zero case of significant fines and non-monetary sanctions for environmental non-compliance

Social Achievements

  • Maintained zero work-related fatalities
  • Average training hours per employee increased to 15 hours in FY2022
  • 22 internship placements for engineering students
  • Engaged in 6 local community programs (blood drives, donations, orphanage visits, Project Sambung Sekolah, tree planting)

Governance Achievements

  • 100% of employees trained on Anti-Bribery and Corruption Policy and risk management
  • 100% of vendors acknowledged the Anti-Bribery and Corruption Policy
  • Zero incidents of corruption and bribery

Climate Goals & Targets

Long-term Goals:
  • Achieve Scope 1, 2 and 3 net-zero emissions by FY2050
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce Industrial Gases Division’s operational carbon emissions intensity by 20% by FY2024
  • Reduce electricity intensity by 5% by FY2024 (Industrial Gases Division)
  • Reduce water intensity by 5% by FY2024 (Industrial Gases Division)
  • Reduce non-recycled waste intensity by 5% by FY2024 (Engineering Division)
  • Train all employees on Anti-Bribery and Corruption Policy and risk management by FY2024
  • Communicate Kelington’s expectations to 100% of selected key vendors by FY2024
  • Achieve average customer satisfaction rate of 90% by FY2024

Environmental Challenges

  • Supply chain disruptions due to COVID-19
  • Increased Scope 3 emissions due to higher construction activities and increased business travel
  • Increased non-recycled waste intensity due to project mix and increased construction activities
Mitigation Strategies
  • Supply chain risk management and proactive work with critical suppliers
  • Improved plant efficiency and energy efficiency initiatives to mitigate the impact of increased Scope 2 emissions
  • Resource Efficiency Program to reduce waste
  • Implementation of ISO 14001:2015 Environmental Management System

Supply Chain Management

Supplier Audits: 9 completed due diligence questionnaires in FY2022

Responsible Procurement
  • Code of Ethics & Conduct
  • Responsible Supply Chain Policy
  • Environmental Policy
  • Safety and Health Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Tropical cyclones
  • Landslides
  • Sea level rise
  • Temperature patterns
  • Drought
Transition Risks
  • Policy & Legal Risks
  • Reputation Risk
  • Technology Risk
  • Market Risk
Opportunities
  • Development of energy-efficient products and services
  • Opportunities to collaborate with international players to develop innovative technology

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guidelines 3rd Edition, TCFD Recommendations, FTSE4Good Bursa Malaysia Index Rating Guide, GRI Standards, Sustainability Development Goals (SDGs), UNGC Principles

Certifications: ISO 9001, FSSC 22000, Halal certification, ISO 45001:2018 (91% certified)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 9 (Industry, Innovation and Infrastructure)
  • SDG 10 (Reduced Inequalities)
  • SDG 13 (Climate Action)

Various initiatives contribute to these goals through improved occupational safety and health, energy efficiency, economic growth, innovation, inclusive workplace practices, and climate change mitigation

Sustainable Products & Innovation

  • Wet Scrubber System
  • Greenhouse Gas Reduction System
  • VOCs Removal System
  • Odor Control System
  • Acid/general/exhaust/solvent ductwork system
  • Stripper Reclaim System (SRS)

Awards & Recognition

  • 4-star rating from CIDB Malaysia
  • Safety awards from customers

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:40,439 tCO2e/year
Scope 1 Emissions:12,495 tCO2e/year
Scope 2 Emissions:3,807 tCO2e/year
Scope 3 Emissions:24,137 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:16,329 MWh/year
Water Consumption:76,813 m3/year
Waste Generated:422 tons/year
Carbon Intensity:492 tCO2e / RM’ million EBITDA in FY2023.

ESG Focus Areas

  • Climate Change
  • Pollution and Waste Management
  • Resources Management
  • Support Biodiversity
  • Occupational Safety & Health
  • Talent Management & Development
  • Diverse and Inclusive Workplace
  • Respect Human Rights
  • Sustainable Supply Chain
  • Governance & Ethics
  • Economic Growth & Profitability
  • Quality Products & Services
  • Technology & Operational Innovation
  • Community Investment

Environmental Achievements

  • Reduced CO2 emission intensity by 35.5% in FY2023 compared to FY2020.
  • Reduced electricity intensity by 32% in FY2023 (Industrial Gases Division).
  • Reduced water intensity by 23.5% in FY2023 (Industrial Gases Division).
  • Reduced non-recycled waste intensity by 67.6% in FY2023 (Engineering Division).
  • Reduced Scope 3 emissions by 28.2% in FY2023.
  • Zero instances of non-compliance with local government regulations and standards related to environmental pollution in FY2023.
  • Waste gas (Carbon Dioxide) reuse increased to 70,278 tonnes in FY2023.

Social Achievements

  • Maintained zero work-related fatalities.
  • Average training hours per employee increased to 15.5 hours in FY2023.
  • Implemented programs to improve access to education for underprivileged.
  • Supported 5 underprivileged students through Project Sambung Sekolah.
  • Increased female representation in total workforce (Executive level & above) to 28.6% in FY2023.
  • Zero incidents of unfair employment practices and violations of labor laws.

Governance Achievements

  • 100% of employees received training on Anti-Bribery and Corruption Policy and risk management.
  • 100% of vendors acknowledged the Anti-Bribery and Corruption Policy.
  • Zero incidents of corruption and bribery.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2050.
Medium-term Goals:
  • Set science-based targets to achieve Scope 1, 2 and 3 net-zero emissions by FY2050.
Short-term Goals:
  • Reduce our own CO2 emissions intensity by at least 20% by FY2024.
  • Reduce electricity intensity by 5% by FY2024.
  • Reduce water intensity by 5% by FY2024.
  • Reduce non-recycled waste intensity by 5% by FY2024.
  • Maintain zero work-related fatalities.
  • Achieve 30% female representation in total workforce (Executive level & above) by FY2024.
  • Average 12 training hours per employee per year by FY2024.
  • Achieve average customer satisfaction rate of 90% by FY2024.
  • Train all employees on the Anti Bribery and Corruption Policy (ABC Policy) and risk management by FY2024.
  • 100% communication for all vendors on the ABC Policy by FY2024.

Environmental Challenges

  • Workforce shortages and skills gaps.
  • Supply chain disruptions.
  • Climate-related risks (physical and transition risks).
  • Inadequate or underreporting of total emissions data.
  • Increased staff turnover rate (18.1% in FY2023).
Mitigation Strategies
  • Investing in workforce training and development programs.
  • Implementing robust supply chain management practices and risk mitigation strategies.
  • Integrating climate change considerations into strategic planning and commercial frameworks.
  • Enhancing data collection processes by leveraging advanced technology.
  • Addressing factors contributing to turnover and implementing strategies aimed at enhancing employee engagement, satisfaction, and retention.

Supply Chain Management

Supplier Audits: 80 due diligence questionnaires completed in FY2023.

Responsible Procurement
  • Responsible Supply Chain Policy
  • Environmental Policy
  • Safety and Health Policy
  • Prioritising local sourcing

Climate-Related Risks & Opportunities

Physical Risks
  • Intense storms and flooding
  • Rising temperatures and changes in precipitation patterns
  • Sea Level Rise
  • Temperature Patterns
  • Air Pollution
  • Drought
Transition Risks
  • Policy & Legal Risks
  • Technology Risk
  • Reputation Risk
  • Market Risk
Opportunities
  • Development of energy-efficient products and services
  • Opportunities to collaborate with international players to develop innovative technology that can contribute the mitigation and adaptation to climate change.

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guidelines 3rd Edition, TCFD Recommendations, Sustainability Development Goals (SDGs), UNGC Principles, FTSE4Good Bursa Malaysia Index Rating Guide, GRI Standards

Certifications: ISO 9001, FSSC 22000, Halal, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 8 (Decent work and economic growth)
  • Goal 9 (Industry, innovation and infrastructure)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

Kelington's initiatives contribute to these goals through energy efficiency improvements, waste reduction, responsible sourcing, talent development, and climate change mitigation strategies.

Sustainable Products & Innovation

  • Wet Scrubber System
  • Greenhouse Gas Reduction System
  • VOCs Removal System
  • Odor Control System
  • acid / general / exhaust / solvent ductwork system
  • Stripper Reclaim System (SRS)

Awards & Recognition

  • FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Shariah Index inclusion
  • CIDB SCORE 4-star rating
  • Premier GOLD Award in the 19th MOSHPA OSH Excellence Award