Kim Hin Joo (Malaysia) Berhad

Climate Impact & Sustainability Data (2020, 2021, 2023)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

Economic
Environmental
Social
Governance

Environmental Achievements

Progressive upgrading of incandescent and fluorescent lights to LED lights to reduce energy usage.
Promotion of recycle bags and use of biodegradable plastic bags in all outlets.

Social Achievements

100% post-maternity retention rate for female employees.
No incidence of health or safety compliance breach, fatalities, or major injuries in FYE2020.
Implementation of a Diversity Policy to promote diversity and equal opportunity in the workplace.

Governance Achievements

Reviewed and revised Business Code of Conduct and Ethics in May 2020 to reflect enhanced anti-bribery and anti-corruption policies.
Implementation of the Anti-Bribery and Anti-Corruption Policy (ABAC Policy).

Climate Goals & Targets

Medium-term Goals:

Continue expanding Mothercare and The Entertainer outlets outside the Klang Valley.

Short-term Goals:

Open Malaysia’s first Mothercare experience store.
Re-platforming the e-Commerce website to improve customer experience and offer Click and Collect.

Environmental Challenges

Significant decrease in Group’s revenue (20.6%) and PBT (44.9%) due to the COVID-19 pandemic and movement control orders.
Dependence on franchisor agreements.
Dependence on outlet location appeal.
Rental and tenancy terms.
Foreign exchange risks.

Mitigation Strategies

Strengthened e-Commerce capabilities and expanded online marketplace presence (119% growth in online platform).
Close monitoring of agreement terms, engagement with franchisors, and building strong relationships.
Continued engagement with mall management, active assessment of outlet needs for renovation, expansion, or relocation.
Continued engagement with mall management to maintain good relations and favorable lease terms.
Close monitoring of the FOREX market, engagement with panel bankers, use of foreign exchange forward contracts, and maintaining cash balances in foreign currencies.

Supply Chain Management

Responsible Procurement

Group procurement policy and procurement system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

Economic
Environmental
Social
Governance

Environmental Achievements

Progressively upgraded lighting in outlets to LED lights, reducing electricity usage and cost.
Used plastic bags with biodegradable ingredients and promoted recyclable bags.

Social Achievements

Prioritised local hiring, with all employees in head office, warehouse and outlets being Malaysians (excluding Managing Director and Non-Executive Board members).
Implemented a 60-day maternity leave policy, with an 80% post-maternity retention rate.
Provided various training and development programs for employees.
Established a fund to assist employees facing financial difficulties.

Governance Achievements

Revised Business Code of Conduct and Ethics in May 2020 to reflect enhanced anti-bribery and anti-corruption policies.
Implemented Anti-Bribery and Anti-Corruption Policy (ABAC Policy) in May 2020.
Established a Whistleblowing Policy.

Climate Goals & Targets

Short-term Goals:

Roll out experience store concept to key stores across the country (next two years).

Environmental Challenges

Dependence on franchisor agreements.
Brand name reputation.
Outlet location appeal.
Rental & tenancy terms.
Foreign exchange risks.
COVID-19 pandemic impact on retail sales and supply chain.

Mitigation Strategies

Closely monitoring agreement terms, ensuring timely renewal, and engaging with franchisors.
Close monitoring of mass and social media, sharing customer feedback with franchisors, and prudent marketing activities.
Continued engagement with mall management, active assessment of outlet needs for renovation, expansion or relocation.
Continued engagement with mall management to maintain good relations and strengthen lease terms.
Close monitoring of the foreign exchange market, engaging with panel bankers, utilising foreign exchange forward contracts, and maintaining cash balances in foreign currencies.
Improving digital capabilities and growing e-commerce channel, implementing strict site protocols for hygiene and social distancing, providing face masks and hand sanitisers, reducing non-essential travel, and proactive steps in addressing supply chain risks.

Supply Chain Management

Responsible Procurement

Group procurement policy and procurement system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

Best Company for IR in the Micro-cap category in the Malaysian Investor Relations Association (“MIRA”) IR Award 2021.
Best Baby Steriliser through Tommee Tippee – theAsianparent Awards 2021

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

Economic
Environmental
Social
Governance

Environmental Achievements

Used energy-efficient LED lights in outlets.
Promotes the use of recyclable bags and biodegradable plastic bags.

Social Achievements

All employees in head office, warehouse, and outlets are Malaysians.
98-day maternity leave policy.
Regular training and development programs.
18 employees hired from target groups (long-term unemployed, vulnerable groups).

Governance Achievements

Established anti-bribery and anti-corruption policies and procedures.
Implemented a whistleblowing policy.

Climate Goals & Targets

Long-term Goals:

Developing new opportunities to future-proof the Company.

Medium-term Goals:

Not disclosed

Short-term Goals:

Optimizing the number of stores, improving product ranges, managing costs, and improving customer service.

Environmental Challenges

Sluggish sales in 2023 due to weak exports, inflationary pressures, lower household disposable income, and declining birth rates.
Persistent inflationary pressures and lower household disposable income weighed on consumer sentiment, resulting in lower spending.

Mitigation Strategies

Comprehensive review of stock positions, clearing out old stock, writing off obsolete inventory.
Improving operational efficiency and optimising costs.
Becoming more agile and flexible to address unforeseen risks.
Streamlining retail footprint and expanding distribution business.
Targeted marketing campaigns, personalized product offerings, and enhanced customer support to acquire new parents.