LY CORPORATION LIMITED
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:103.11 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:103.11 tCO2e/year
Scope 2 Emissions:4,663.13 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:8,482,062 kWh/year
Water Consumption:108,750 m3/year
Waste Generated:1,963,829 kg/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- Economic Agility
- Quality of Product and Services
- Customer Satisfaction
- Climate Change
- Energy Usage
- Water Consumption
- Waste Management
- Material Use
- Talent Attraction and Retention
- Training and Development
- Workplace Health and Safety
- Corporate Governance
- Ethics, Bribery and Corruption
- Regulatory Compliance
Environmental Achievements
- Generated a total of 3,524.60MWh of solar energy, which is equivalent to approximate 2,062 tonnes of carbon dioxide (CO2) avoidance
- Recycled 1,963,829 kg of wastes, such as scrap iron, wood, plastics and carton
- 97.96% of wood from sustainable source
Social Achievements
- Provided fair and competitive compensation packages to ensure that employees’ well-being, and career progression are well-taken care of
- Attained an average 8.6 training hours per employee
- Achieved zero cases of workplace fatalities
Governance Achievements
- Complied with principles of the Code of Corporate Governance and provided explanations where there are deviations to the Code of Corporate Governance
- Achieved zero cases which are unethical, fraudulent or corrupt in nature
- Achieved zero significant fines and zero reported cases of non-compliance with all applicable laws, rules and regulations
Climate Goals & Targets
Long-term Goals:
- Net Zero Roadmap by 2050
Medium-term Goals:
- Reduce GHG emission levels and emission intensities by 20% by FY2030
- Include disclosure of Scope 3 GHG emissions by FY2030
- Reduce waste intensities by 20% by FY2030
- Reduce water intensities by 20% in FY2030
Short-term Goals:
- Reduce water intensities by 5% in FY2023
- Reduce waste intensities by 5% in FY2023
Environmental Challenges
- Increasingly volatile global business environment brought about by the Russia-Ukraine war, which led to high energy prices, supply chain disruptions and food shortages, all contributing to rising inflation, economic uncertainty and tighter global financing conditions
- Global economy slowdown
- Rising interest rates
Mitigation Strategies
- Adopting a more cautious approach to operations and investments
- Focusing on strategic initiatives to enhance the performance of the Group’s businesses while managing our financial resources prudently and efficiently
- Sharpening competitive edge by building new capabilities, broadening product range, and innovating to create new designs and concepts to meet changing trends
- Intensifying marketing efforts by regularly attending and participating in local and international trades and exhibitions fairs
Supply Chain Management
Supplier Audits: Yearly evaluations for all current suppliers
Responsible Procurement
- Sustainable sourcing of raw materials
Climate-Related Risks & Opportunities
Physical Risks
- Increased severity of extreme weather events such as frequent flooding
- Rising mean temperatures
Transition Risks
- Increased compliance costs and operation costs
- Capital investments into technology development
- Increase in energy and water costs
- Changing client preferences
Opportunities
- Enhancing energy efficiency and water conservation
- Reduced exposure to fossil fuel price increase
- Offerings with sustainable designs or material
Reporting Standards
Frameworks Used: GRI Standards, TCFD recommendations
Certifications: ISO 9001:2015, ISO 45001:2018, PEFC ST 2002:2020
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Eminent Eagle Award
- Asian Furniture Leadership Award
- Corporate Social Responsibility Award
- Best Performing Company Award
- Global Top Enterprise Golden Rim Award
- Golden Bull Award
- Enterprise 50 Award
- Award of Industrial Excellence
- Asia Pacific International Honesty Enterprise – Keris Award
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:178 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:178 tCO2e/year
Scope 2 Emissions:2,532.55 tCO2e/year
Total Energy Consumption:7,657,364 kWh/year
Water Consumption:999,827 m3/year
Waste Generated:3,853,000 kg/year
ESG Focus Areas
- Economic Agility
- Quality of Product and Services
- Customer Satisfaction
- Climate Change
- Energy Usage
- Water Consumption
- Waste Management
- Material Use
- Talent Attraction and Retention
- Training and Development
- Workplace Health and Safety
- Corporate Governance
- Ethics, Bribery and Corruption
- Regulatory Compliance
Environmental Achievements
- Generated a total of 3,572.6 MWh of solar energy, which is equivalent to approximate 2,215 tonnes of carbon dioxide (CO2) avoidance
- Reduced water intensity by 13.7% under LY Furniture
- 81,400 kg of non-hazardous waste diverted from disposal
Social Achievements
- Provided fair and competitive compensation packages to ensure that employees’ well-being, and career progression are well-taken care of
- Attained an average 10.0 training hours per employee
- Total donation of RM5,900 to Tabung Kebajikan Makswip and Trinity Community Children Home Society
Governance Achievements
- Complied with principles of the Code of Corporate Governance and provided explanations where there are deviations to the Code of Corporate Governance
- Achieved zero cases which are unethical, fraudulent or corrupt in nature
- Achieved zero significant fines and zero reported cases of non-compliance with all applicable laws, rules and regulations
Climate Goals & Targets
Long-term Goals:
- Reduce GHG emission levels and emission intensities by 15% by 2030
- Explore other clean or renewable energy sources
- Reduce water intensities by 15%
- Reduce waste intensities by 15%
- Provide an average of 15 hours of training per employee
- Achieve net zero CO2 emissions
Medium-term Goals:
- Reduce GHG emission levels and emission intensities by 8% by 2030
- Include other categories of Scope 3 GHG emissions
- Reduce water intensities by 8%
- Reduce waste intensities by 8%
- Provide an average of 12 hours of training per employee
Short-term Goals:
- Maintain zero incidents of environmental policy related fines
- Continue with sustainable practices in office spaces
- Reduce water intensities by 5%
- Reduce waste intensities by 5%
- Improve employee recruitment and retention and increase ratio of local workers
- Provide an average of 8 hours of training per employee
Environmental Challenges
- Global economic slowdown, rising interest rates, inflationary pressures, weakened consumer purchasing power
- Decline in demand due to high inventory surplus among furniture importers in the USA
- Potential supply chain disruptions due to the Israel-Palestine conflict and attacks in the Red Sea region
- Ensuring regulatory compliance and adopting responsible wood sourcing practices
Mitigation Strategies
- Reduction in raw material purchases
- Intensified marketing efforts in millwork segment
- Upgrading kitchen cabinet production line
- Leveraging extensive network in the USA to promote new products
- Monitoring transportation costs and addressing logistical hurdles
- Enhancing product innovation
- Forging strong partnerships with core customers
- Exploring new materials and innovative models
- Seeking new business opportunities and exploring new geographical areas
- Ramping up marketing initiatives through trade shows and exhibitions
- Maintaining prudence in financial management and discipline in controlling costs
- Improving manufacturing processes and efficient capacity utilisation
- Adopting sustainable manufacturing practices that minimise waste and environmental harm while conserving energy and natural resources, including sustainable sourcing of raw materials, recycling wood waste, and using environmentally friendly materials for our production processes
Supply Chain Management
Responsible Procurement
- Sustainable sourcing of raw materials
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (flash floods, intense rainfall, heat waves)
- Rising mean temperature (higher energy costs)
Transition Risks
- Fluctuation in energy costs and potential carbon tax
- Regulatory changes towards enhanced emission-reporting obligations
- Regulations governing wood products and manufacturing services
- Increased cost of raw materials
Opportunities
- Adoption of resource-efficient practices
- Development and/or expansion of low-emission goods and services
Reporting Standards
Frameworks Used: GRI Standards, TCFD recommendations
Certifications: ISO 9001:2015, PEFC, ISO 45001:2018
Awards & Recognition
- ISO 9001:2015
- PEFC
- ISO 45001:2018