Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economics
• Environmental
• Social
• Governance

Environmental Achievements

• Utilizing high power factor LED lights and inverter-type air conditioning system
• Switching off lights and air-conditioning when there are no occupants
• Periodically upgrading office equipment to more energy-efficient models
• Engaging certified scrap collectors for environmentally friendly disposal of end-of-life computers
• Obtained Class A Certification from the Medical Device Authority of Malaysia for its medical device product named Portable Procedure Station

Social Achievements

• Slashing staff turnover rate to 17% in FYE2023 from 40% in FYE 2022
• Intensified employee learning and development program by increasing the number of trainings by more than 50%, tripling the total hours of training and doubling the number of staff attending the trainings, compared to FYE 2022
• Implemented amendments made by the Government of Malaysia to the Employment Act 1955 (extending maternity leave to 98 days, offering 7 days of paternity leave, and reducing maximum working hours from 48 to 45 hours per week)
• Established a grievance mechanism for employees
• Various community engagement activities (visits to elderly care centers, blood donation campaigns, Raya open house, etc.)

Governance Achievements

• Established formal and transparent remuneration policies and procedures
• Established an ABC Policy in accordance with the MACC Act
• Established a Whistle Blowing Policy
• Appointed Ms. Tan Su Ning as an Independent Non-Executive Director to comply with Bursa Malaysia's requirement for at least one female director
• Expanded the functions of the Audit and Risk Management Committee by incorporating matters concerning sustainability

Climate Goals & Targets

Environmental Challenges

• Strong US Dollar placing pressure on Malaysian Ringgit, impacting raw material costs and production costs
• Potential supply chain disruptions and fluctuations in raw material prices
• Increasing competition and the risk of failing to innovate or meet customer needs
• Cyber threats including loss of sensitive information

Mitigation Strategies

• Minimising adverse effects of exchange rate fluctuations through a natural hedging strategy
• Closely monitoring raw material prices and stock levels, maintaining good relationships with suppliers, and widening the supplier base
• Focusing on cost control and operational efficiency, exploring new markets, and investing in research and development
• Implementing robust cybersecurity and improved data management, establishing a range of policies related to cybersecurity and IT management, and conducting cybersecurity training for all employees

Supply Chain Management

Responsible Procurement

• Quality Procedure
• Quality Assurance and Production
• Purchasing Policy
• New Vendor Selection and Registration
• Supplier Evaluation Form
• Vendor Performance Review
• Approval Authorisation Policy
• Approval Suppliers List
• Limit of Purchase Approval
• ISO9001:2015 Quality Management Systems

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ACE Market Listing Requirements (Bursa Malaysia), Sustainability Reporting Guidelines (Bursa Malaysia), UN SDGs

Certifications: ISO 9001:2015, EN ISO 13485:2016, US FDA

Third-party Assurance: Messrs. UHY

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production

LKL's initiatives contribute to these goals through its focus on employee well-being, economic development, and sustainable business practices.