Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational Health and Safety
• Environmental Compliance
• Corporate Governance
• Human Rights
• Economic Performance

Environmental Achievements

• Successfully complied with all relevant environmental laws and regulations and subsequently were not imposed any fines or monetary sanctions.
• Air emission monitoring results for 2019, 2020 and 2021 showed that the concentration of air impurities emitted from LPG burner, dust collector and scrubber complied with the limit as specified in the Environmental Quality (Clean Air) Regulations 1978 and Environmental Quality (Clean Air) Regulations 2014, respectively.
• Most of the water quality results were within the baseline and complied with the guideline limit of Class IIB of the National Water Quality Standards for Malaysia (“NWQSM”) except at few sampling points.
• All readings of noise level were below the Environmental Impact Assessment (“EIA”) Approval Conditions No. 24.
• All readings of vibration were within the recommended DOE Guidelines, as stipulated in Schedules 5 and 6.

Social Achievements

• Formalisation of the Sustainability Committee
• Conducted a series of refresher sustainability awareness programmes for the entire workforce
• Conducted a sustainability workshop with three main outcomes to strengthen our sustainability foundation in the Group, the establishment of a materiality matrix and the development of a list of sustainability initiatives.
• Provided competitive remuneration, compensation and benefits in line with current industry standards to ensure our ability to attract and retain talent.
• Invested a total of RM92,088.95 for all workforce training across the Group.
• Conducted a series of ‘Managers in Development Programme – Living in the New Norm’
• Delivered a series of Safety Enhancement programme
• Conducted a series of online training, i.e. Power Talk, including Mental Wellness Workshop Series.
• Provided parental leave to the entire workforce
• Conducted a salary adjustment exercise to compensate the identified skilled workers based on their performance. This exercise has benefited 171 local and foreign workers with a total salary adjustment of above RM30,000 per month.
• Contributed monetary flood relief aid worth more than RM130,000 to all identified victims for their basic necessities during the post disaster period.
• Provided an additional eight (8) days of calamity leaves for the flood victims and early salary pay out for the impacted workers.
• Sponsored food aid to 200 Kampung Hulu Langat villagers, who were impacted by the pandemic.

Governance Achievements

• Formalisation of the Sustainability Committee
• Strengthened sustainability governance through the formalisation of the SC.
• Established an Investment/Project Quick Risk Assessment Checklist
• Reviewed and revised all existing Policies and Procedures
• Conducted various due diligence exercises for our projects, Business Associates and personnel in certain positions to identify potential corruption risks.
• Established and revised key documentations related to anti-bribery and anti-corruption
• Conducted Annual refresher session for employees
• Communication of updated key documentations to all employees
• Corruption Risk Assessment for all subsidiaries under the Group (local operations)
• Signing of the Integrity Pledge

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business operations
• Supply chain disruptions and logistical bottlenecks
• Devastating floods that hit several states in late FY2021
• Lower revenue due to slower activity mainly on the tower fabrication business due to the limited capability of our fabrication facility
• Completion of our project in Laos in FY2020 that previously provided significant annual revenue to the Group
• Fluctuation of key raw material prices, mainly due to the energy crisis in the EU and issues with the manufacturing segment in China
• Massive flooding in Bentong at the end of 2021 that greatly impacted our Manufacturing business segment production and delivery of finished products
• Shortage of manpower faced by our Manufacturing and Project Management subsidiaries

Mitigation Strategies

• Strict implementation of Standard Operating Procedures (“SOP”)
• Continuous intensifying sales and marketing efforts with East Malaysia utilities service provider for power transmission and telecommunication projects
• Develop new markets and revenue streams focusing on telecommunication EPCC work and manufacturing of telco towers
• Actively participated in tender openings in infrastructure projects
• Explore and conduct market research/ survey on new markets
• Increasing business development capability with the establishment of overseas offices
• Establish a close monitoring system of key raw material prices
• Practising safety stock of key raw materials
• Engaging with our clients and customers for the delivery of the finished products
• Continuous communications with Kementerian Kesihatan Malaysia (‘KKM”), Jabatan Tenaga Kerja (“JTK”) on the requirements of foreign workers quotas
• RTB key subsidiaries submitted applications for new workers to the Immigration Department of Malaysia
• Increase production efficiency and productivity through continuous enhancement of current manufacturing processes
• Engagement and assessment of supplier/vendor/ subcontractor performance to support the production line
• Staggered purchase of steel materials upon obtaining confirmed orders from customers
• Establish multiple suppliers base for continuous supply of key raw materials
• Maintaining safety stock level for 3 months to avoid disruption to operations
• Continuous safety awareness, training and communication to all employees, suppliers, contractors and clients
• Review safety procedures and work method statement for its effectiveness and efficiency
• Continuous safety inspections and audits to ensure compliance to safety procedures
• Ensure there is sufficient facilities available to meet the Group’s financial requirements
• Monitoring of the Group’s cash flow needs against available funds
• Institute proper credit controls to assess customers and a debt monitoring mechanism to monitor and follow up on outstanding debtors
• Matching the payment for foreign currency payables against receivables denominated in the same currency
• Fixing the prices of raw materials purchased from overseas suppliers in RM to mitigate the risk of fluctuations in exchange rates

Supply Chain Management

Supplier Audits: REI has assessed top 20 suppliers through analysing the number of Supplier Corrective Action Reports (“SCAR”) issued against their respective number of deliveries

Responsible Procurement

• Procure raw materials, products and services from local suppliers except in instances where it can be more efficiently sourced from overseas suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad (Bursa Malaysia) Sustainability Reporting Guidelines (2nd Edition), Global Reporting Initiative’s (“GRI”) Standards, FTSE Russell’s ESG Ratings, Malaysian Code of Corporate Governance 2021 (“MCCG 2021”)

Certifications: ISO 9001:2014, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Stewardship
• Social Impact
• Governance

Environmental Achievements

• Initiated carbon accounting for GHG emissions
• 95% of waste diverted to recycling or recovery processes
• 6% decrease in overall energy consumption compared to 2022
• Invested RM 243,000 in enhancing its manufacturing site to better withstand the physical risks posed by flooding
• Allocated a budget of RM 2,500,000 for the transition to a low-carbon economy through the adoption of renewable energy

Social Achievements

• Zero deaths due to work-related injuries at all sites
• 50% reduction in accident cases compared to 2022
• Conducted various CSR activities positively impacting 236 individuals in neighboring communities
• Reduced working hours from 48 hours to 45 hours a week

Governance Achievements

• Established a Board Sustainability Committee
• Established Sustainability Department
• Conducted annual ISO internal audits
• Implemented Anti-Bribery and Anti-Corruption Policy
• Established Whistleblowing Policy

Climate Goals & Targets

Environmental Challenges

• Over reliance on key clients for domestic and international markets
• Inability to secure sufficient sales and contracts
• Declining tender profit margin
• Potential exposure to Liquidated Ascertained Damages
• Difficulty to meet the committed delivery deadline
• Fluctuations in Prices of Steel as Raw Materials
• Safety risks
• Financial Risks of RTB Group
• Foreign exchange fluctuations

Mitigation Strategies

• Intensify sales and marketing efforts
• Develop new markets and revenue streams
• Active tender participation in infrastructure projects
• Conduct a comparative margin study
• Continuous monitoring of tender profit margin
• Plan work well to reduce late delivery of projects
• Appoint additional subcontractor(s)
• Frequent communication and updates to clients
• Increase production efficiency and productivity
• Engagement and assessment of supplier/vendor/subcontractor performance
• Engagement with the relevant authority on foreign workers’ policy and recruitment
• Stagger purchase of steel materials
• Establish an alternative supplier base
• Continuous safety awareness, training and communication
• Review safety procedures and work method statements
• Continuous safety inspections and audits
• Ensure sufficient credit facilities are available
• Monitor the Group’s cash flow needs
• Institute proper credit controls
• Match the payment for foreign currency payables against receivables
• Fix the prices of raw materials purchased from overseas suppliers in RM

Supply Chain Management

Supplier Audits: Annual assessment and performance monitoring

Responsible Procurement

• Supplier code of conduct
• KYC surveys
• Internal risk checklists

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought

Transition Risks

• Enhanced emissions-reporting obligations
• New Industrial Master Plan 2030 push for Net Zero
• Energy Efficiency and Conservation bill
• Costs to transition to lower emissions technology
• Increased cost of raw materials

Opportunities

• Reduction in operation cost
• Reduction in GHG emissions
• Reduction in product carbon footprint
• Development of products with low carbon footprint
• Development of new revenue streams from emerging environmental projects
• The use of government incentives on renewable energy
• Adoption of green building practices and certification

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 9001:2015, ISO 45001:2018, ISO 14001:2015

UN Sustainable Development Goals

• 7
• 9
• 11
• 12
• 8

The company's operations contribute to these goals through various initiatives