Climate Change Data

Environmental Metrics

ESG Focus Areas

• Renewable energy
• Sustainable environmental solutions
• Ethical business practices
• Occupational safety and health
• Employee development
• Water, effluent & waste management
• Climate change & carbon emission
• Environmental protection and regulation

Environmental Achievements

• Installed 1,490 metric tonnes per hour capacity of biomass boilers, reducing biomass waste by 3.0 million MT per year.
• TEK supplied and installed 1.6 million m3 per year of wastewater treatment capacity.
• Delivered biogas plants and tertiary treatment plants reducing at least 20,585 MT of BOD per year.
• Reduced Carbon Dioxide by 2.5 million MT per year compared to coal-fired boilers.
• Reduced methane by 14.1 million MT per year.
• Installed 416 kWp solar application reducing CO2 emission by 370 tons per year.

Social Achievements

• Established and embedded an OSH Policy.
• Implemented recommendations on improvement opportunities and non-compliances highlighted by the Safety and Health Officer.
• Provided OSH-related training to employees.
• Achieved targets on employees’ training.
• Introduced flexi-hours for working parents.
• Provided other employees’ welfare incentives.

Governance Achievements

• Established a Board Charter.
• Established a Code of Ethics.
• Formalised a Whistleblower Policy.
• Established an Anti-Bribery and Anti-Corruption Framework.

Climate Goals & Targets

Environmental Challenges

• Heavy dependence on the palm oil industry.
• Impact of the COVID-19 pandemic.
• Country risk associated with Indonesian operations.
• Volatile crude palm oil prices.
• Slowdown in the biomass boiler business.

Mitigation Strategies

• Diversification strategies into water treatment and solar energy.
• Devised Business Continuity plans.
• Prudent cash flow and balance sheet management.
• Developing policies and procedures for internal control.
• Engaging with stakeholders.
• Pursuing various strategies and efficiency measures.

Supply Chain Management

Supplier Audits: Annually, as needed

Responsible Procurement

• Supplier appraisal and evaluation
• Awareness and Compliance to our Policies and Code of Business Ethic

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products
• Growth in renewable energy and sustainable environmental solutions.

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad's Sustainability Reporting Guide – 2nd Edition

Certifications: ISO9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 14 (Life Below Water)
• Goal 16 (Peace, Justice and Strong Institutions)

The Group's initiatives contribute to these goals through renewable energy generation, water treatment, waste management, employee safety, and ethical business practices.

Sustainable Products & Innovation

• Biomass boilers
• Water treatment solutions
• Solar PV systems
• Palm oil recovery enhancement system

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Climate Change
• Renewable Energy

Environmental Achievements

• Reduction in Biomass Waste (in Million MT): 2.5
• Raw & Waste Water Treated (in Million M3): 1.6
• Reduction in Biochemical Oxygen Demand (BOD) in Wastewater (in MT): 938
• Reduction in Methane (CH4) Emission (in Million M3): 14.1
• Reduction in Carbon Dioxide (CO2) Emission (in Million MT): 2.2
• Reduction in Dust Emission (in MT): 472
• Installed a total capacity of 416 kWp solar application in its Subang Jaya plant, generating approximately 531MWh of electricity and reducing CO2 emission by 340 Tons each year.

Social Achievements

• Provided financial support to 14 employees whose houses were affected by the December 2021 Flash Flood Incident in Selangor.
• Training attended by employees as per training needs analysis target: 72.2%

Governance Achievements

• Established an Anti-Bribery and Anti-Corruption Framework and relevant Policies and Procedures.
• Established a whistleblowing channel.

Climate Goals & Targets

Environmental Challenges

• Ongoing Covid-19 pandemic and Russia-Ukraine conflict disrupting supply chain and logistics, volatile raw material prices, and unresolved labor shortages.
• Rising commodity prices and product mix resulting in margin compression for Bio-Energy segment.
• Increase in raw material price and three months’ suspended business activities due to Covid-19 restriction affecting solar business.

Mitigation Strategies

• Prudent business practices, effective cost management, and forward-looking plans.
• Indonesia facility expansion to increase boiler fabrication capacity, facilitate faster response time to customers, and lower delivery and transportation costs.
• Local fabrication and project management in Indonesia to mitigate project delays.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier appraisal and evaluation reviews

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide and its accompanying Toolkits, Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015 (three subsidiaries), ASME ‘S’, ‘U’ and NB ‘R’ Stamp (Bio-Energy segment)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 14
• Goal 16

Boilermech's initiatives contribute to these goals through renewable energy solutions, water treatment, employee well-being, waste management, and anti-corruption efforts.

Sustainable Products & Innovation

• Biomass boilers
• Water treatment solutions
• Solar Photovoltaic systems

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Water management
• Renewable energy
• Ethical business practices
• Employee development
• Occupational safety and health
• Fair labor practices

Environmental Achievements

• Estimated annual carbon dioxide (CO2) equivalent reduction of 2.9 million MT
• Annual Biological Oxygen Demand (BOD) reduction of 21,576 MT on commissioned projects
• Reduction in CO2 emissions by 17% through solar energy utilization
• Reduction in methane emissions by an estimated 0.3 million MT of CO2e

Social Achievements

• Increased workforce from 385 in 2021 to 470 in 2023
• Implementation of various safety and health programs (first aid training, firefighting training, etc.)
• Employee training hours attended (72.2% in 2022 and 74.5% in 2023)
• Various welfare programs and initiatives to support employee well-being

Governance Achievements

• Realigment of vision and mission statements to incorporate ESG
• Establishment of a Director’s Fit and Proper Policy
• Establishment of an Anti-Bribery and Anti-Corruption Framework
• Formalized Whistleblower Policy

Climate Goals & Targets

Environmental Challenges

• Volatility in material costs and foreign exchange fluctuations
• Higher operating costs from escalated raw material prices, labor wages, and logistics costs
• Fluctuations in raw material prices and foreign exchange rates
• Inflationary costs
• Talent and labor shortage

Mitigation Strategies

• Internal improvements aimed at enhancing operational efficiency and increasing cost competitiveness
• Diligent management of new contract margins
• Factoring cost increases into selling prices for new contracts
• Opening up Indonesia’s manufacturing base and diversifying the talent pool
• Focusing on employee engagement, talent retention, and development

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier appraisal and evaluation reviews
• Code of Business Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide

Certifications: ISO 9001:2015 (three subsidiaries), ASME ‘S’, ‘U’, and NB ‘R’ Stamps (Bio-Energy segment)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 14
• Goal 16

Detailed in the Sustainability Statement

Sustainable Products & Innovation

• Biomass boilers
• Biogas plants
• Solar photovoltaic systems

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Emissions reduction
• Water management
• Waste management
• Diversity and inclusion
• Ethical business practices
• Anti-corruption
• Occupational safety and health
• Community engagement
• Supply chain management

Environmental Achievements

• Reduced carbon emissions by an estimated 4.3 million metric tons of CO2e annually through the installation of innovative products for customers.
• Decreased annual Biological Oxygen Demand (BOD) by 28,909 metric tons.
• Renewable energy generated 472 MWh of clean energy, reducing CO2 emissions by 302 tons.

Social Achievements

• Created over 72 new jobs.
• Organized a blood donation drive.
• Participated in a mangrove planting activity (2,000 trees planted).

Governance Achievements

• Established an Anti-Bribery and Anti-Corruption Framework.
• Implemented a Whistleblower Policy.
• All Directors and Employees underwent Code of Ethics training.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices and foreign exchange rates.
• Workplace hazards.
• Country risk in Indonesia (government policies, regulations, economic volatility, natural disasters).
• Limited methods for offsetting CO2 emissions.

Mitigation Strategies

• Foreign currency hedging for material sales and purchases.
• Contractor training and site supervision to enhance safety standards.
• Hazard identification, risk assessments, and implementation of controls to mitigate health and safety risks.
• Robust risk management strategies, local market expertise, and proactive engagement with regulatory authorities in Indonesia.
• Developing renewable energy plants to generate Renewable Energy Certificates (RECs) for carbon offsetting.

Supply Chain Management

Supplier Audits: Supplier assessments during registration and pre-qualification stages, as well as annual performance reviews.

Responsible Procurement

• Prioritising local suppliers (72.5% of procurement spending).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia’s enhanced Sustainability Reporting Framework, Greenhouse Gas (GHG) Protocol, FTSE4Good Bursa Malaysia Index, UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015 (three subsidiaries)

Third-party Assurance: Group Internal Audit (limited assurance)

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 14
• Goal 16

Initiatives contribute to these goals through emissions reduction, water management, renewable energy, workplace safety, community engagement, waste management, and anti-corruption efforts.

Sustainable Products & Innovation

• Biomass boiler system
• Solar PV system
• Water management system