THONG GUAN INDUSTRIES BERHAD
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Renewable Energy Share:4.3% (solar PV); 47% (including GET in 2023)
Total Energy Consumption:116,603 MWh/year
Water Consumption:253,113 m3/year
Waste Generated:6,654 tons/year
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced waste to landfill by 37% compared to FY2022 baseline (Target set: 30%).
- Achieved 4.3% usage of renewable electricity generated by own solar PV system.
- Reduced water intensity by 13.6% compared to FY2021 baseline.
Social Achievements
- Increased training hours by 62% compared to FY2022, achieving the target set in the prior year.
- Donated goods and money worth RM91,016 to 43 beneficiaries.
- Zero fatality in FY2023.
Governance Achievements
- 100% board meeting attendance.
- 50% independent directors on the board.
- Implemented an online course on anti-bribery and corruption for executives and above.
Climate Goals & Targets
Long-term Goals:
- Reduce GHG intensity (Scope 1 & 2) by 30% by 2035.
- Increase use of renewable electricity to 20% by 2035.
- Achieve total sales of 30% recycled-content products by 2035.
Medium-term Goals:
- Reduce water consumption per kg of production output by 20% by 2030.
- Increase use of renewable electricity to 20% by 2030.
- Incorporate 10% Post-Consumer Recycled (PCR) materials into total plastic production output by 2030.
- Increase training hours by 30% by FY2025.
- Achieve 100% ISO 45001:2018 certification for all factories by 2025.
- Improve 50% women leadership by FY2025.
- Certify major manufacturing plants in Malaysia as Sedex members by 2025.
Short-term Goals:
- Reduce water consumption per kg of production output by 10% by 2025.
- Reduce GHG intensity (Scope 1 & 2) by 10% by 2025 (FY2021 baseline).
- Increase use of renewable electricity to 10% by 2025.
- Reduce waste to landfill by 30% by 2025 (FY2022 baseline).
Environmental Challenges
- Limited availability of PCR materials meeting quality standards.
- High subscription costs for Green Energy Tariff (GET).
- Restricted availability of rooftop space for solar PV systems.
- Dependence on foreign workers and associated risks (immigration policies, geopolitical tensions, currency fluctuations).
Mitigation Strategies
- Exploring avenues to bolster PCR consumption, including partnerships with suppliers and waste collectors, and investments in recycling capabilities.
- Exploring Virtual Power Purchase Agreements (VPPA) as an alternative to GET.
- Minimizing dependence on foreign labor by prioritizing local economic development and sourcing its workforce locally.
- Implementing key strategies such as monitoring regulatory changes, continuous improvement of labor practices, manpower utilization planning, and adoption of technology and diversification.
Supply Chain Management
Responsible Procurement
- Collaboration with suppliers demonstrating high awareness in waste reuse, recovery, or recycling.
- Engagement with suppliers on their commitment to addressing human rights issues.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: Bursa Malaysia’s Sustainability Reporting Guide (3rd Edition), United Nations Sustainable Development Goals
Certifications: ISO 14001 (6 factories), ISCC Plus (2 factories), GRS (2 factories), SMETA (3 factories), ISO 45001:2018 (4 factories)
Sustainable Products & Innovation
- Recyclable collation shrink films (50% recycled material)
- iPAK 5 IoT solution
Awards & Recognition
- Forbes Asia’s Best Under A Billion 2023
- Malaysia Sustainability Excellence Award
- Epicor Innovation Champion Award Winner