Climate Change Data

Southern Acids (M) Berhad

Climate Impact & Sustainability Data (2023-04 to 2024-03)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Renewable Energy Share:7%
Total Energy Consumption:440,438 MWh/year
Water Consumption:1,237 megalitres

ESG Focus Areas

  • Governance
  • Customer Satisfaction
  • Accreditations and Adherence to Quality Standards
  • Innovation
  • Supply Chain Management
  • Energy Management
  • Emissions
  • Biodiversity
  • Water Management
  • Effluents and Waste Management
  • Health and Safety
  • Employee Management and Development
  • Community Development and Relations

Environmental Achievements

  • Implemented measures to optimise energy utilisation, resulting in electricity cost savings of up to 19% in Sri Kota since FY2019.
  • Both PT Mustika Agro Sari and PT Wanasari Nusantara estates in Riau are ISPO compliant.

Social Achievements

  • Sri Kota received several awards, including the Malaysia Health & Wellness Brand Awards 2023, Sin Chew – AIA Workplace Health and Wellness Excellence Award, and Healthcare Asia Awards 2024.
  • In FY2024, SAB invested approximately RM1,063,309 in communities near its operations, impacting 33,635 individuals.
  • 636 employees received health and safety-related trainings.

Governance Achievements

  • Revamped sustainability governance structure, introducing the Audit Committee to provide oversight and renaming the Sustainability Committee to the Sustainability & Risk Assessment Body.
  • 90.9% of management team, 32.8% of executives and 2.7% of non-executives received anti-corruption training.
  • 100% of operations successfully completed corruption risk assessment.

Climate Goals & Targets

Medium-term Goals:
  • Expand planted area in Riau, Indonesia by approximately 2,200 hectares over the next four years.
Short-term Goals:
  • Improve water management efficiency, focusing on water consumption per tonne of FFB processed.

Environmental Challenges

  • Lower average selling prices of commodity products (glycerine, fatty acids, CPO, PK) impacting revenue and profit.
  • Escalating production costs and subdued market sentiment in Oleochemical Manufacturing.
  • Lower commodity prices and increased operating costs in Milling & Cultivation.
  • Competition from other healthcare providers and risk of professional misconduct in Healthcare Services.
  • Oleochemical Manufacturing's current operational size lacks economies of scale.
  • Milling & Cultivation's reliance on external FFB supply (approx. 83.2%).
Mitigation Strategies
  • Efforts to improve and upgrade facilities (RM36.4 million capex in FY2024).
  • Automating processes and optimising costs in Oleochemical Manufacturing.
  • Focusing on processing costs and potential expansion of planted area in Milling & Cultivation.
  • Continuously improving internal processes and maintaining high standards of professional conduct in Healthcare Services.
  • Product customisation in Oleochemical Manufacturing to strengthen customer relationships.

Supply Chain Management

Supplier Audits: 98.7% spending on local suppliers

Responsible Procurement
  • Sustainable Procurement Policy (Oleochemical Manufacturing)
  • Due diligence procedures for vendors and agents (ABAC Policy)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guide (3rd edition), Global Reporting Initiative standards

Certifications: ISO 22000, ISO 9001, GMP, HACCP, RSPO, MSPO, Kosher, Halal (Oleochemical Manufacturing), ISPO (PTMAS and PTWan estates), MSQH (Sri Kota)

Awards & Recognition

  • Malaysia Health & Wellness Brand Awards 2023 (Sri Kota)
  • Sin Chew – AIA Workplace Health and Wellness Excellence Award (Sri Kota)
  • WSO Angels Awards - Gold Status (Sri Kota)
  • Healthcare Asia Award 2024 (Sri Kota)