Climate Change Data

Mega First Corporation Berhad

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:548,392.42 tCO2e/year
Scope 1 Emissions:488,678.79 tCO2e/year
Scope 2 Emissions:32,726.55 tCO2e/year
Scope 3 Emissions:26,987.08 tCO2e/year

ESG Focus Areas

  • Environmental Sustainability
  • Enhancing Livelihoods and Inspiring our People
  • Building a Sustainable and Ethical Business

Environmental Achievements

  • Installed a total of 23.18MW (as of first quarter of 2023) of solar PV systems, generating 22,705 MWh of solar energy and saving 15,758 tCO2e in 2022.
  • RCI obtained ISO 14001:2015 certification and received a 4-star rating from the Mineral & Geoscience Department.
  • Stenta obtained ISO 14001 certification and ISCC Plus Certification.
  • Reduced waste by adopting a circular economy approach.

Social Achievements

  • Invested or donated RM1,266,000 to communities.
  • Improved lives of many in Laos by building essential infrastructure.
  • Provided scholarships and school transport to students in the community.
  • Raised local wages of Lao employees to help them cope with inflation.

Governance Achievements

  • Developed a new Group Sustainability Policy.
  • Established a number of Group policies to guide responsible operations.
  • Developed a Responsible Sourcing Policy.
  • Resources Division shared ABC Policy with business associates and received written commitments from 100%.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2050.
  • Achieve carbon neutrality and commence transition towards Net Zero by 2035.
  • Reduce GHG emissions in the supply chain by 50% by 2035.
Medium-term Goals:
  • Reduce waste to landfill by 50% by 2030.
  • Enhance livelihoods of 300,000 people by 2030.
  • 100% of Tier 1 suppliers to comply with Responsible Sourcing Policy by 2030.
  • Conduct social impact assessments for 100% of community initiatives by 2025.
  • Conduct internal audits of all higher-risk suppliers by 2025.
Short-term Goals:
  • Conduct a group-wide GHG inventory by 2023.
  • Establish a community investment fund by 2023.
  • Implement mandatory supplier ESG training by 2023.

Environmental Challenges

  • High fuel and logistics costs.
  • Increasing labour costs and a steep rise in electricity surcharge.
  • Collapsing commodity prices and capacity loss at Edenor.
  • Defaults and offtake delays by customers at Edenor.
Mitigation Strategies
  • Improved operational efficiency and reduced costs.
  • Progressive selling price adjustments to defray fuel and energy cost increases.
  • Tighter cost control at Edenor.
  • Hedging of raw material at Edenor.

Supply Chain Management

Responsible Procurement
  • Developed a Responsible Sourcing Policy.
  • Disseminated OHS and Environmental Policies to Tier 1 suppliers.
  • Procuring local products and services wherever possible (56.9% in 2022).

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events and natural disasters (floods and landslides).
Opportunities
  • Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), Bursa Malaysia Main Market Listing Requirements, Sustainalytics, FTSE4Good Bursa Malaysia Index, UN SDGs

Certifications: ISO 14001, ISO 37001 (RCI), ISCC Plus (Stenta)

Sustainable Products & Innovation

  • Mono-material, monolayer films (Stenta)
  • Fully biodegradable film Ekolene (Stenta)
  • Solvent-free plastic packaging (Hexachase Flexipack)
  • PFAS-free paper (Hexachase Packaging)

Awards & Recognition

  • The Edge’s Billion Ringgit Club Corporate Awards 2022 (Highest Return to Shareholders over three years and Highest Growth in Profit after Tax over three years).

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:37,654 tCO2e
Scope 1 Emissions:2,899.02 tCO2e
Scope 2 Emissions:51,661.51 tCO2e
Scope 3 Emissions:25,321.54 tCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,964,472.28 GJ
Water Consumption:177.18 Megalitres
Waste Generated:2,273.79 metric tons (landfill)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Produced 2,083 GWh of hydropower energy, avoiding 1.2 MtCO2e in Cambodia.
  • Installed a 2.48MW solar PV system at Packaging Division, avoiding 2,000 tCO2e.
  • Reduced waste to landfill by diverting 6,384 tonnes of waste.
  • Implemented CEMS for all kilns in Resources Division for real-time emission monitoring.
  • Implemented a long-term biodiversity strategy at Don Sahong Hydropower project.

Social Achievements

  • Developed a Group Community Investment Guideline.
  • Invested RM1,802,638 in community projects.
  • Conducted group-wide Sustainability 101 Training for 40 management-level employees.
  • Achieved 100% employee participation in annual performance appraisals.
  • Recorded zero work-related fatalities and a work-related injury rate of 0.98.

Governance Achievements

  • Appointed a Group Sustainability Executive.
  • Updated Group policies including Sustainability Policy, Diversity and Inclusion Policy, Human Rights Policy, Responsible Sourcing Policy and Water Management Policy.
  • Conducted mandatory Tier 1 supplier ESG training, engaging 51 out of 59 suppliers.
  • Received an ‘AA’ rating from MSCI and an ESG rating of 2.9 from FTSE Russell.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2050.
  • Have a net positive impact on biodiversity by 2050.
Medium-term Goals:
  • Reduce waste to landfill by 50% by 2030.
  • Achieve carbon neutrality by 2035.
  • Reduce GHG emissions in the supply chain by 50% by 2035.
  • 100% of tier 1 suppliers to comply with Responsible Sourcing Policy by 2030.
Short-term Goals:
  • Conduct group-wide GHG inventory by 2025.
  • Set up a Scholarship and Management Trainee Programme by 2024.

Environmental Challenges

  • Achieving net-zero emissions by 2050.
  • Reducing GHG emissions in the supply chain.
  • Ensuring 100% of Tier 1 suppliers comply with Responsible Sourcing Policy.
Mitigation Strategies
  • Focusing on GHG emission reduction initiatives including transitioning to renewable energy, implementing energy efficiency initiatives, and reducing waste.
  • Implementing a long-term biodiversity conservation strategy.
  • Developing a Responsible Sourcing Policy and conducting supplier ESG training.

Supply Chain Management

Supplier Audits: 51 out of 59 Tier 1 suppliers engaged in ESG training.

Responsible Procurement
  • Responsible Sourcing Policy
  • 100% FSC-certified paper for Packaging Division
  • 49.8% spending on local suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Transition to renewable energy
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), Bursa Malaysia Main Market Listing Requirements on Sustainability Reporting, FTSE4Good Bursa Malaysia Index, United Nations Sustainable Development Goals, CDP (Climate Change Disclosure)

Certifications: ISO 9001, ISO 22000, FSC, PEFC, ISO 37001 (RCI)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Initiatives such as renewable energy projects, GHG emission reduction, and biodiversity conservation contribute to these goals.

Sustainable Products & Innovation

  • Ekolene films (biodegradable)
  • Star Lene BOPP film
  • Smilene LLDPE films
  • Protecta high barrier film
  • Arlene BOPP film

Awards & Recognition

  • Company of the Year at The Edge Billion Ringgit Club awards
  • Best National On-Grid Renewable Energy solution at the National Energy Awards