Muhibbah Engineering (M) Bhd.
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Three airports acquired carbon reduction certifications from Airport Carbon Index in 2020
- Successful improvement of the design and build of the waste heat recovery unit, CiBAS, helps recycle hot steam and heat to generate self-sustained recycled energy
- CiBAS has received recognition and orders from many big global players including Siemens, Samsung, Hyundai, Technip, Petronas Carigali, Conoco Phillips and Chevron.
- Design and built of noise barriers enclosures for LRT and MRT project to reduce noise pollution
- Design and build of waste water treatment plant
Social Achievements
- Employee voluntary separation scheme in 2020
- Various initiatives in protecting stakeholders throughout the COVID-19 pandemic, including strict implementation of COVID-19 Safe Operating Procedures and proactive positive case management, regular awareness and prevention circular, implementation of work from home or rotational work basis, regular sanitisation and disinfection and conduct of virtual meetings.
- Provided Covid-19 self-test saliva antigen rapid test kit (RTK) to employees and requested employees to do the test on regular basis.
- Provided option for our employees to register under PIKAS for the vaccination and booster shot program and Insurance (due to Covid) under the MyCTF program.
Governance Achievements
- Adopted the Group’s Anti-Bribery and Corruption Policy
- Adopted the Group’s Whistleblower Policy
- Successfully completed Rights Issue in April 2022
Climate Goals & Targets
Medium-term Goals:
- Airport concession aims for Level 3 (Optimisation & Engagement of 3rd parties) Airport Carbon Accreditation by 2030
Environmental Challenges
- Significant decline in passenger traffic by 88% at Cambodia Airports due to worldwide air travel restrictions
- Continuous work stoppages in the construction industry due to various stages of MCOs
- Disruptions to operations due to Covid-19
Mitigation Strategies
- SCA implemented various cost cutting measures to trim overhead costs
- SCA generated positive earnings before depreciation in 2021
- SCA continues engaging and investing in new systems supplying power and air conditioning to aircraft on ground to replace fossil-fueled equipment and cut further carbon dioxide emissions and noise pollution
- Group’s 2021 results were better than those of 2020 due to provision for impairment on plant and vessels of RM43 million and incurred compensation cost of RM13 million in an employee voluntary separation scheme in 2020
- Various COVID-19 initiatives (see Key Achievements - Social)
Supply Chain Management
Responsible Procurement
- Vendor registration
- Contract tender negotiation
- Evaluation and performance reviews
- Establishment of e-procurement with long-term strategic suppliers
- Third party appraisal of sub-contractors
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products (CiBAS)
- Renewable energy solutions for Oil & Gas offshore platform using Solar Power and Wind Turbine
Reporting Standards
Frameworks Used: GRI 4.0
Certifications: ISO 9001:2015, ISO/TS 29001:2010, ASME ‘U’ Stamp, ISO 30000:2009, NBBI ‘R’ Stamp, ASME ‘S’ Stamp, API – Spec Q1, API – Spec 2C, ISO 45001:2018, ISO 14001:2015
UN Sustainable Development Goals
- 3
- 5
- 6
- 7
- 8
- 9
- 12
- 13
- 16
Details of alignment with UN SDGs are provided in the Sustainability Statement.
Sustainable Products & Innovation
- CiBAS waste heat recovery unit
- Renewable energy solutions
Reporting Period: 2023
Environmental Metrics
Total Energy Consumption:656.98 MWh/year
Water Consumption:6.189 ML/year
ESG Focus Areas
- Environment, Social and Governance (ESG)
Environmental Achievements
- Recovered 13 million megawatts (MW) thermal energy in 2023, equivalent to a reduction of 3.9 million tonnes of CO2 emissions.
- Phnom Penh International Airport achieved Airport Carbon Accreditation (ACA) Level 3 (Optimisation & Engagement of 3rd parties).
Social Achievements
- Welcome Back to School program benefiting 95 employees.
- Gotong Royong program at Masjid Al-Falah Kampung Idaman.
Governance Achievements
- Full compliance with the requirements of the Occupational Safety and Health Act 1994 and the Factories and Machineries Act, 1967.
- ISO 45001:2018 certification for Occupational Health and Safety management system.
Climate Goals & Targets
Medium-term Goals:
- Airports concession commitment to environmental improvements by 2030.
Environmental Challenges
- Ongoing geopolitical tensions, depreciation of the ringgit, and supply chain disruptions.
- Rising costs in Malaysia due to reduced government subsidies.
Mitigation Strategies
- Continued productivity improvement measures.
- Identifying growth opportunities within core businesses and expanding presence in the clean energy sector.
Supply Chain Management
Responsible Procurement
- Establishment of e-procurement with long-term strategic suppliers
- Third party appraisal of sub-contractors
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products
- Accelerating the energy transition in response to global demands
Reporting Standards
Frameworks Used: GRI 4.0
Certifications: ISO 9001:2015, ISO/TS 29001:2020, ISO 30000:2009, ISO 45001:2018, ISO 14001:2015, ISO 3834-2:2021, API – Spec Q1, API – Spec 2C, ASME ‘U, S’ Stamp
UN Sustainable Development Goals
- 3
- 5
- 6
- 7
- 8
- 9
- 12
- 13
- 16
Our sustainable strategy focuses on Marketplace, Workforce, Environment and Community, supporting several UN SDGs.
Sustainable Products & Innovation
- CiBAS (Concentric Integral Bypass & Silencer) WHRU
- 90-degree inlet Flow Diverter