Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and wellness
• Environmental impact
• Local community benefit

Environmental Achievements

• Replaced energy-hungry incandescent light bulbs with more energy-efficient fluorescent light bulbs and LEDs
• Office equipment turned off after work hours
• Materials separated for recycling
• Regular maintenance of vehicles to ensure fuel emissions are within acceptable ranges
• Responsible disposal of scheduled wastes and effluents

Social Achievements

• Embracing diversity in the workplace
• Promoting honesty and ethical practices through Code of Ethics and Integrity Week
• Providing equal employment opportunities
• Supporting non-profit and charity organizations
• Training and employing fresh graduates
• Providing work opportunities for employees with disabilities
• Various community initiatives throughout the year (detailed in the report)

Governance Achievements

• Commitment to best practices, code of ethics and stringent corporate governance
• Establishment of an Integrity Unit with programs focusing on education, prevention, enhancement and punitive measures
• Adoption of the Malaysian Code on Corporate Governance 2017

Climate Goals & Targets

Environmental Challenges

• Less dependence on the airline catering business
• Increasingly competitive food and beverage sector
• Difficult market conditions and severe competition
• Slower global economy impacting tourist arrivals and air passenger traffic growth
• Concerns over terrorism and epidemic outbreaks
• Rising costs and competition in the food-related industry
• Highly competitive restaurant operation business in airports

Mitigation Strategies

• Decisive action to reduce dependence on airline catering
• Re-energizing operations while capitalizing on existing infrastructure and human resources
• Fine-tuning F&B brand portfolio through consolidation of old brands and introduction of new brands
• Group-wide cost-saving initiatives and Enterprise Risk Management (ERM)
• Leveraging SATS partnership for skills transfer, supplier consolidation, and hygiene audits
• Expanding into non-airline catering business
• Continuous review of food offerings, benchmarking of prices, and upgrading of marketing tools
• Regular review of business strategies to mitigate risks

Supply Chain Management

Responsible Procurement

• Supplier selection based on quality and commitment
• Audits to ensure supplier standards
• Consolidation of basic items to reduce transportation emissions

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Workplace
• Environment
• Community

Environmental Achievements

• Replaced energy-hungry incandescent light bulbs with more energy-efficient fluorescent light bulbs and L.E.D.
• Office equipment turned off after work hours
• Materials recycled
• Vehicles undergo regular maintenance to ensure fuel emissions are within acceptable ranges
• Scheduled wastes and effluents responsibly disposed
• Water conservation practices using sensor taps and regular checks for leaks

Social Achievements

• Launched AIA Vitality program to encourage staff to stay active and lead a healthy life
• Held Best Employee Awards to recognize staff commitment and dedication
• Apprentice graduation ceremony
• Zakat program
• Bubur Lambuk distribution
• Aidilfitri celebration
• Rebranding of Wellness Centre
• Drug Free Workplace Awareness Program

Governance Achievements

• Established an integrity unit with programs focusing on education, prevention, enhancement, and punitive measures
• Code of Ethics shared throughout the Group
• Whistle-blowing policy implemented

Climate Goals & Targets

Environmental Challenges

• Reduction in air passenger traffic volume
• Higher operating costs
• Difficult business conditions
• Impact from the COVID-19 pandemic

Mitigation Strategies

• New Group strategy and realignment of focus
• Divestment and liquidation of controlling stake in Dewina HOST Sdn Bhd
• Shifting focus to airline catering business
• Formulating a scheme to regularize from PN17 status
• Transformation program to seek opportunities in food services and food-related businesses
• Emphasis on productivity and internal control on processes and procedures to reduce operating costs
• Securing new contracts (e.g., Turkmenistan Airlines)
• Participating in tenders and pursuing potential new customers
• Negotiating with financial institutions to defer loan repayments
• Monetizing identified assets

Supply Chain Management

Responsible Procurement

• Suppliers selected based on quality and commitment and undergo audits

Climate-Related Risks & Opportunities

Physical Risks

• Floods and droughts

Transition Risks

• Policy, technology and market changes affecting asset valuations

Reporting Standards

Frameworks Used: Malaysian Code on Corporate Governance 2017

Environmental Metrics

ESG Focus Areas

• Workplace
• Environment
• Community

Environmental Achievements

• Replaced energy-hungry incandescent light bulbs with more energy-efficient fluorescent light bulbs and LED.
• Office equipment turned off after work hours.
• Materials separated for recycling.
• Vehicles undergo regular maintenance to ensure fuel emissions are within acceptable ranges.
• Scheduled wastes and effluents responsibly disposed.
• Water conservation practices using sensor taps and regular checks for leaks.

Social Achievements

• BSFS Culinary Run 2020 (promoting healthy lifestyle practices).
• Career Transition Programme (support for employees in Mutual Separation Scheme).
• MSS Appreciation Ceremony (appreciation for employee contributions).
• Building Resilient Workforce (preparing employees for challenges).
• Basic Occupational First Aid CPR Courses.
• Business Thinking & Digital Marketing Courses.
• Swab test under Program Saringan Prihatin Perkeso (COVID-19 screening).

Governance Achievements

• Adherence to the Principles and Best Practices set out in the Malaysian Code on Corporate Governance 2017.
• Establishment of an Anti-Bribery and Corruption Policy.
• Whistle-blowing policy in place.
• Code of Ethics published on the company website.

Climate Goals & Targets

Environmental Challenges

• Unprecedented COVID-19 pandemic significantly impacting revenue (95% reduction).
• Huge uncertainties in aviation industries.
• PN17 status.
• Capital deficit position and significant reduction of total assets.
• External auditors expressed disclaimer opinion with significant doubt on going concern.

Mitigation Strategies

• Diverting business concentration and operations to focus on non-aviation/commercial customers.
• Reviving and reinvesting in warehousing business.
• Efficient capital management mechanism and strong finance function.
• Quarterly planning and review, business-specific limits, setting and monitoring key metrics, scenario planning and analysis.
• Established an Executive Board in 2012 to execute capital management functions.
• Propose Private Placement of up to 70,885,600 new ordinary shares (approximately 30% of issued shares).

Supply Chain Management

Responsible Procurement

• Suppliers selected based on quality and commitment; undergo audits to ensure standards.
• Consolidation of basic items to a few dedicated suppliers to reduce transportation emissions and ensure higher efficiency.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Malaysian Code on Corporate Governance 2017

Certifications: 100% halal certified inflight kitchen

Awards & Recognition

• Many international awards for quality and excellence (BSFS)

Environmental Metrics

ESG Focus Areas

• Workplace
• Environment
• Community

Environmental Achievements

• Replaced energy-hungry incandescent light bulbs with more energy-efficient fluorescent light bulbs and LED.
• Practices a non-waste policy of water conservation by using sensor taps and regularly checks faucets and pipes for leaks.
• Monitors energy consumption diligently and adopts efficient cooking and washing methods.
• Materials such as paper, plastic, metals and organic materials are separated to be recycled.
• Vehicles undergo regular maintenance to ensure that the fuel emissions are within acceptable ranges.
• Scheduled wastes and effluents are responsibly disposed at prescribed premises.

Social Achievements

• BSFS employed 531 staff with a focus on social diversity and equal employment opportunities.
• Held training and briefing programmes on Health and Safety.
• Conducted internal and external programs for the benefits of the community and staff (Gotong Royong Perdana, Gerobok Kongsi Rezeki, Program Iftar).

Governance Achievements

• Adhered to the Principles and Best Practices set out in the Malaysian Code on Corporate Governance 2017.
• Established an Executive Board to execute efficient capital management.

Climate Goals & Targets

Environmental Challenges

• PN17 status due to shareholders’ equity being 25% or less of the share capital.
• Significant decrease in revenue due to the Covid-19 pandemic.
• Capital deficit position and significant reduction of total assets.
• Concern over potential acts of terrorism and epidemic or pandemic outbreaks.

Mitigation Strategies

• Formulating and strategizing a regularization plan.
• Seeking potential white knight for regularization.
• Exploring new business collaborations to broaden and deepen the Group’s earning base.
• Focusing on risk management, alternative funding sources, and efficient capital management.
• Possessing core competencies in food services and established relationships with business partners and customers.

Supply Chain Management

Responsible Procurement

• Suppliers are selected based on their quality and commitment and undergo audits to ensure their standards.
• Basic items are consolidated to a few dedicated suppliers to reduce transportation emissions and ensure higher efficiency.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Malaysian Code on Corporate Governance 2017