Climate Change Data

Environmental Metrics

ESG Focus Areas

• production
• health and safety
• logistics and distribution
• marketing and management policies

Environmental Achievements

• Completed installation of a solar power panel system in steel plant, reducing electricity usage and manufacturing cost and carbon footprint.

Social Achievements

• Competitive benefits packages for employees including medical, hospitalisation, personal accident coverage, annual leave, company trips, team building events, sports club events, social gatherings, corporate T-shirts, and long service staff awards.
• Investment in employee training and development to address competency gaps and create multi-skilled employees.

Governance Achievements

• Established Occupational Safety and Health Committee guided by relevant acts and regulations.
• Implemented Business Continuity Plan for risk areas.

Climate Goals & Targets

Environmental Challenges

• Customers and products: Meeting stringent requirements for certifications to be competitive and ensure customer satisfaction.
• Production efficiency: Maintaining cost competitiveness and environmental friendliness through automation.
• Raw material supply chain: Achieving responsible sourcing and building resilient partnerships with suppliers.
• Logistics and distribution: Minimising distribution issues and enhancing efficiency.
• Covid-19 pandemic: Safeguarding employees and stakeholders while ensuring business continuity.

Mitigation Strategies

• Obtained ISO 9001:2015 and BCI:2012 certifications and product certifications from Ikram QA Services Sdn. Bhd. and Anqas Certification Sdn. Bhd.
• Investment in automating steel plants.
• Preventive planned maintenance schedule for machinery.
• Building strong supplier partnerships.
• Improving logistics management and distribution chain (emphasising quality, stocking common products, close supervision).
• Implementing Covid-19 Standard Operating Procedures (SOPs).

Supply Chain Management

Responsible Procurement

• Building strong and resilient partnerships with suppliers to mitigate risks and issues linked to raw material supply chain.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Economic
• Workplace
• Nature (Environment)
• Society (Community)

Environmental Achievements

• Recycling of scraps and adopting a scheduled waste management system to sustainably handle waste materials; effective production shift scheduling which in turn reduces unnecessary energy consumption and pollution; implementing an effective production planning, control and monitoring process to reduce production wastage throughout the operations; practising a paperless environment by website utilisation to promote products and services as well as embarking on modernisation and automation projects; internal inspection for road worthiness of lorries to reduce carbon footprint; having in place Engineering controls (e.g installation of fabricated sound barriers, enclosed machinery placement, etc) and Administration controls (e.g proper maintenance and housekeeping programmes) to mitigate noise pollution to the surrounding environment and reduce noise pollution generated from the production lines; and adoption of “Green” renewable energy via installation of solar panels on the rooftop of our main factory in Pengkalan, as well as headquarters office, both in Ipoh.
• Recycled 5,078 kgs of recyclable materials in FY 2021 (compared to 22,481 kgs in FY 2020).

Social Achievements

• Achieved 97% overall customer satisfaction score in FY 2021 (compared to 96% in FY 2020).
• 36 Long Service Award recipients in FY 2021.
• Total training hours of 344 in FY 2021 (compared to 197 in FY 2020).
• Reduced workplace accident cases from 35 in FY 2020 to 30 in FY 2021.
• Extended financial donation to a non-profit organisation; on-going community activities that include the provision of internships and providing financial support to schools as well as commerce associations for their various needs.

Governance Achievements

• Implemented a Diversity Policy for Board and Senior Management.
• Combined Nomination Committee and Remuneration Committee into a single committee (Nomination and Remuneration Committee) to enhance efficiency.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic and resulting lockdowns severely hampered operations in June 2021.
• Subdued sales and demand due to prolonged lockdowns.
• Global steel supply shortage and disruption in global shipping capacity.
• Rising risks from uncertain global and domestic economic environment, coupled with weak Ringgit performance.

Mitigation Strategies

• Stock up of inventories to mitigate global shipping shortage.
• Stringent compliance to Covid-19 Standard Operating Procedures (SOPs).
• Optimise efficiency through automation.
• Reduce dependency on foreign labour.
• Lower production costs.
• Maintain high quality standards.
• Employ prudent inventory management.
• Explore market share expansion.

Supply Chain Management

Responsible Procurement

• Building strong and resilient partnerships with suppliers.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Customers and Products
• Corporate Governance and Code of Conduct
• Production Efficiency
• Raw Materials Supply Chain
• Logistics and Distribution
• Waste Management
• Energy and Resource Management
• Competitive Benefits
• Training and Development
• Succession Planning
• Safety and Health
• Business Continuity Plan
• Diversity
• Community Activities
• Data Privacy

Environmental Achievements

• Achieved carbon emission reduction of 22,651 CO2 equivalent in 2022 compared to 2021 (9.92% reduction)
• Recycled 3.238 metric tonnes of scheduled waste out of 8.287 metric tonnes generated in FY 2022
• Gradual replacement of existing spotlights and fluorescent light tubes with LED tubes in factory, offices and warehouses
• Adoption of green renewable energy via installation of solar panels, resulting in substantial CO2 reduction

Social Achievements

• Achieved 97% overall customer satisfaction score in FY 2022
• 39 Long Service Award recipients in FY 2022
• Various CSR activities including financial donations to non-profit organizations and ongoing community activities
• Reduced workplace accident cases from 44 in 2020 to 18 in 2022
• Reduced lost time incident rate from 49 in 2020 to 16 in 2022

Governance Achievements

• No cases reported on corruption and whistle-blowing for the financial year ended 31 December 2022
• Periodic review of corporate governance policies to ensure compliance with legislative requirements and business environment
• Implementation of Fit & Proper Policy for the appointment and re-election of Directors
• Implementation of Whistleblowing Policy and Procedure and Anti-Bribery and Corruption Policy

Climate Goals & Targets

Environmental Challenges

• Challenging and volatile economic environment in 2022 due to Covid-19 pandemic, Russian-Ukraine conflict, interest rate hikes, weakening Ringgit, and global recessionary fears
• Elevated steel raw material prices in 1Q’22
• Slump in global steel demand dragging down average selling prices from 2Q’22
• Lackluster international steel prices and weak international steel demand in 2023

Mitigation Strategies

• Continual cost efficiency improvements, strengthening productivity, enhancing quality and delivery of products
• Prudent inventory management strategies to mitigate volatile prices and unfavourable foreign exchange movements
• Disciplined cost control
• Improve operational efficiency through automation and cost optimization
• Enhance quality and delivery of products
• Employ prudent procurement and inventory management
• Explore market share expansion

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Raw materials sourced from reliable steel mills internationally ensuring quality and prompt delivery

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001:2015, BC1:2012

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG#9
• SDG#16
• SDG#12
• SDG#7
• SDG#5
• SDG#8
• SDG#4
• SDG#3
• SDG#10
• SDG#17
• SDG#13

The Group maps its material sustainability matters against the UN SDGs framework.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic
• Nature (Environment)
• Workplace
• Society (Community)

Environmental Achievements

• Recycled 53% of total annual scheduled waste in FY 2023 (ahead of target)
• Reduced energy consumption by 57% in FY 2023 from 2019 baseline (ahead of target)
• Reduced CO2 emission for Scope 1 by 15% in FY 2023 from 2019 baseline (ahead of target)
• Reduced CO2 emission for Scope 2 by 66% in FY 2023 from 2019 baseline (ahead of target)
• Reduced water consumption by 25% in FY 2023 from 2019 baseline (ahead of target)

Social Achievements

• Achieved an average customer satisfaction score of 97% in FY 2023 (exceeding target)
• No substantiated complaints received concerning human rights violations in FY 2023
• Invested RM 27,345 in community activities in FY 2023, benefiting 27 organizations

Governance Achievements

• 100% of executives and non-executives received anti-corruption training
• Zero confirmed incidents of corruption in FY 2023
• Implemented a Whistleblowing Policy and Anti-Bribery and Corruption Policy

Climate Goals & Targets

Environmental Challenges

• Weaker average selling prices
• Slowdown in the construction sector impacting demand
• Ringgit depreciation against the US dollar

Mitigation Strategies

• Continual cost efficiency improvements
• Strengthening productivity
• Enhancing quality and delivery of products
• Prudent procurement and inventory management
• Exploring market share expansion

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing from reliable steel mills internationally, considering sustainable elements and ethical business practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as floods

Transition Risks

• Introduction of carbon pricing mechanisms
• Increased concerns or negative feedback from stakeholders

Opportunities

• Transition to lower emissions solutions
• Participation in and adoption of renewable energy

Reporting Standards

Frameworks Used: Bursa Malaysia’s Main Market Listing Requirements, Bursa Malaysia’s Sustainability Reporting Guide (3rd Edition), United Nations Sustainable Development Goals, Global Reporting Initiative Standards, TCFD

Certifications: ISO 9001:2015, BC1:2012

Third-party Assurance: Internal auditors

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 12
• SDG 13
• SDG 16
• SDG 4
• SDG 8
• SDG 5
• SDG 10

Various initiatives contribute to these goals through waste management, energy efficiency, responsible sourcing, community investment, and fair labor practices.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed