Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Sustainability
• Energy Consumption
• Equal Opportunities and Human Rights
• Ethical Business and Transparency
• Community Services

Environmental Achievements

• Set up recycling bins throughout offices and factories.
• Installed water treatment equipment in factories to improve energy conservation and ensure wastewater meets regulatory standards.
• Installing solar system in factories to reduce energy costs and provide alternative energy to production.

Social Achievements

• Implemented rigorous safety standards aiming for zero injury/incidents by reducing heavy lifting with robot arms and improved procedures.
• Held multiple safety training sessions.
• Organised training sessions to improve technical and soft skills for employee development.
• Achieved 27% female employees and 38% female managers (excluding factory workers).
• Organised a badminton tournament to promote camaraderie and healthy lifestyles.
• Organised a blood donation campaign (66 employees participated).
• 40 employees participated in the Johor Port Shipping and Forwarding Association Charity Run.
• Began construction of a community sports centre in Batam.

Governance Achievements

• Established a Sustainability Steering Committee (SSC) to oversee sustainability incorporation into the Group’s businesses and prepare for sustainability disclosure.
• Published a Code of Conduct for ethical and sustainable business conduct.
• Established whistle-blowing procedures.
• Planning to publish an Anti-Bribery & Corruption (ABC) policy in 2020.
• Organised trainings on code of conduct and ABC for new and existing employees.
• Planning to engage an independent party for internal audits to ensure compliance with ethical business practices.

Climate Goals & Targets

Environmental Challenges

• Volatile market environment.
• High energy consumption in cocoa bean processing.
• Further reduction in kWh/MT per cocoa bean processed is not easily attainable.
• Maintaining ethical business practices and transparency.

Mitigation Strategies

• Maintaining agility to respond to risks and opportunities.
• Setup energy management and data collection system to manage energy usage.
• Exploring renewable energies (solar power and biomass).
• Published Code of Conduct and planning to publish an Anti-Bribery & Corruption policy.
• Conducting internal audits.

Supply Chain Management

Responsible Procurement

• Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia’s Sustainability Reporting Guide (2nd Edition)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Market Presence
• Procurement Practices
• Anti-corruption
• Anti-competitive Behavior
• Energy
• Water and Effluents
• Emissions
• Waste
• Employment
• Occupational Health and Safety
• Non-discrimination
• Freedom of Association and Collective Bargaining
• Child Labour
• Forced or Compulsory Labour
• Customer Health and Safety

Environmental Achievements

• Installed solar panels at facilities in Pasir Gudang, Malaysia; installing solar panels in UK and Côte d'Ivoire production facilities; installing biomass boilers at Côte d'Ivoire facility; waste-to-energy generation accounts for up to 105,547 GJ of fuel for steam generation in Malaysia, significantly reducing natural gas consumption; increased Group-wide production of solar energy by 44%; completed deforestation risk assessments on 31,309 hectares; developed cocoa agroforestry systems on 4,057 hectares; distributed 59,000 multipurpose trees

Social Achievements

• Empowered over 2,000 women through VSLA groups; provided comprehensive life insurance to over 5,000 farmers; 30% decrease in work-related accidents compared to FY2021; over 6,000 households covered by Human Rights Due Diligence systems; zero instances of business misconduct (corruption, bribery, anti-competitive behavior); zero cases of discrimination; provided training programs and wellness initiatives; supported various youth and community programs

Governance Achievements

• Established a Sustainability Department; implemented Group-wide policies addressing key ESG issues; maintained full compliance with all legal requirements and regulations; zero incidents of corruption or discrimination reported; 100% of employees received corruption mitigation training; implemented a robust risk management and internal control framework

Climate Goals & Targets

Environmental Challenges

• Rising energy costs in Europe and the UK; spiking interest rates; global inflationary pressures raising operating costs; global economic slowdown; potential recession risks; geopolitical risks affecting global commodity prices; managing energy costs; tackling inflation; monitoring interest rates; managing competitive landscape

Mitigation Strategies

• Locked in 20% of forward contracts with energy suppliers; proactively monitor energy usage; solar panels projects; diversifying the supply chain; automation solutions; minimizing reliance on borrowings; maintaining optimal inventory levels; hedging contracts; expanding into Côte d'Ivoire; managing energy costs; diversifying customer segments; implementing ISO 22000 and FSSC 22000; due diligence assessments before purchasing new machinery; engaging with customers to understand product requirements; innovative product development; leveraging on experience from previous expansions; evaluating predefined criteria before expanding into new countries; monitoring marketing and trading positions; working capital forecasts and bean inventory forecasts; hedging contracts; thorough background checks on suppliers; supplier audits; prioritizing sustainability and ethical sourcing; engaging external recruitment agencies; investing in employee development programs; annual performance reviews; ensuring adherence to health and safety guidelines; deploying experienced management teams; regular meetings between HQ and foreign subsidiaries; participating in professional training events; maintaining frequent communication with local authorities; implementing FSSC 22000; establishing detailed internal controls and SOPs; providing marketing teams with updates on sanctioned countries; following laws and regulations in each country

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct; Sustainable Procurement Policy and Procedure; GC&B Program

Climate-Related Risks & Opportunities

Physical Risks

• Potential impact of climate change on agricultural resources

Transition Risks

• Regulatory changes; shifting consumer demands for sustainable products

Opportunities

• Green financing schemes; government incentives to shift to renewable energy; climate-smart agriculture projects

Reporting Standards

Frameworks Used: GRI Standards, Framework

Certifications: ISO 50001

Awards & Recognition

• ACES Awards 2022; Company of the Year Award for Excellence in Sustainability & CSR Initiatives; Deloitte Private’s list of Malaysia Best Managed Companies 2022