Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced electricity consumption in Malaysia's office and warehouse by approximately 14% in FY2021.
• Reduced electricity cost by approximately 25% in FY2021 compared to FY2020 due to solar system installation.
• Used Oxo-Biodegradable plastic bags (certified by SIRIM ECO 001) in stores and recycled paper bags at Vincci stores.
• Implemented a 'Turn off before you take off' campaign in offices to reduce energy consumption.

Social Achievements

• Provided employment opportunities to persons with disabilities.
• Organized Mesra OKU training to prepare employees for working with disabled colleagues.
• Conducted Sign Language training for HQ & Stores staff.
• No salary reductions or employee retrenchment despite challenges from the pandemic.
• Donated approximately RM584,000 in cash and kind and 1,600 cartons of clothing to charitable organizations.
• Provided employees with personal accident, hospitalization & surgery, and term life insurance coverage.
• Organized influenza vaccination and sponsored health screenings for employees.
• Provided a dedicated nursery room, flexible lactation breaks, and designated parking for expectant mothers.

Governance Achievements

• Implemented a governance structure for the Global Sustainability program.
• Complied with Section 17(A) of MAcc Amendment Act 2018.
• Conducted annual training on whistleblowing policy and Anti-bribery and Anti-corruption policy for all employees.
• Established stringent standard operating procedures (SOP) in outlets and offices to mitigate COVID-19 risks.

Climate Goals & Targets

Environmental Challenges

• Adverse impact from the COVID-19 pandemic, including three months of outlet closures and decreased tourist numbers.
• Supply chain disruptions due to the pandemic (factory visits were disallowed).

Mitigation Strategies

• Implemented work-from-home arrangements and virtual meetings.
• Provided PPE to employees.
• Collaborated with Poliklinik Shaik for influenza vaccination and with Pathlab for health screenings.
• Offered one day off and vaccine incentives to encourage employee vaccination.
• Worked with suppliers to improve processes and maintain ethical requirements despite travel restrictions.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Periodic visits to suppliers' factories (temporarily halted due to COVID-19).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: SIRIM ECO 001 (Oxo-Biodegradable plastic bags)

UN Sustainable Development Goals

• All 17 SDGs were considered in determining Padini's approach and strategy.

Padini aligned its sustainability strategy with the UN Sustainable Development Goals.

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Sustainability
• Social Responsibility

Environmental Achievements

• Reduced electricity consumption in Malaysia's office and warehouse by approximately 25% in FY2022.
• Installation of solar systems reduced electricity costs by 14% year-on-year and offset 622 tonnes of CO2e emissions.
• Use of Oxo-biodegradable plastic bags in stores.
• Use of recycled and sustainable paper bags and shoe boxes at Vincci stores.

Social Achievements

• No salary reductions or employee retrenchments despite challenges.
• Improved workforce diversity.
• RM574,000 in cash and kind donated to charitable organizations.
• 3,500 cartons of clothing donated to charitable organizations.
• Provided employment opportunities to persons with disabilities.
• Investment of more than RM101,000 in employee training and development.

Governance Achievements

• Compliance with applicable laws and regulations.
• Implementation of a whistleblowing policy and anti-bribery/anti-corruption policies.
• Mandatory annual training on whistleblowing and anti-bribery/anti-corruption policies.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on business operations (store closures).
• Supply chain disruptions (impacted factory visits).

Mitigation Strategies

• Stringent SOPs implemented in outlets and offices.
• Work-from-home arrangements and virtual meetings.
• Collaboration with Pathlab for employee health screenings.
• COVID-19 vaccination incentives and leave for employees.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Periodic visits to supplier factories (temporarily halted due to COVID-19).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

• All 17 SDGs considered

Padini aligned its sustainability strategy with the UN Sustainable Development Goals.

Sustainable Products & Innovation

• Planned launch of eco-friendly products using organic cotton, recycled polyester, and recycled PU.

Awards & Recognition

• Fair Price Trade Award 2021

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Procured approximately 648,700 units of eco-friendly garments and footwear (1.4% of total purchases)
• Installed LED lighting in stores, resulting in 49% wattage reduction
• Solar system installation offsetting 3,276 tonnes of CO2e emissions
• Recycled approximately 4,600kg of used paper, plastic and paper products

Social Achievements

• Hired eight employees with disabilities
• Donated approximately RM221,000 (cash and in-kind) to 19 NGOs
• Donated approximately 1,900 cartons of clothing
• Invested RM499,000 in employee training programs
• 100% employee participation in Whistleblowing Policy and Anti-Bribery training

Governance Achievements

• Established an Employees’ Share Option Scheme (ESOS)
• Complied with the new requirements on Corporate Liability Section 17(A) of MACC Amendment Act 2018
• Implemented a robust risk management and internal control system

Climate Goals & Targets

Environmental Challenges

• Rising living costs, higher goods prices, and increased interest rates
• Supply chain and logistics issues
• Inflationary cost pressure
• Delays in shipments due to unrest in Bangladesh
• Competition from international players
• Changes in consumer consumption patterns

Mitigation Strategies

• Prudent management policies
• Continuous review and evaluation of operations and strategies
• Close working relationships with stakeholders
• Continuous quality customer services
• Human resource development and technology upgrades
• Sufficient inventory levels and buffer lead time
• Investing in warehouse automation (RM20 million)
• Implementing an RFID system for inventory management (RM10 million)
• Establishing logistics hubs in East Malaysia, southern and northern regions

Supply Chain Management

Supplier Audits: 99% of suppliers completed assessments

Responsible Procurement

• Supplier Code of Conduct
• Periodic visits to suppliers’ factories
• Promoting responsible sourcing practices (organic cotton, recycled polyester)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad Listing Requirements, MFRSs, IFRSs, Companies Act 2016 (Malaysia), MCCG 2021, IIRC Framework, GRI Standards

Third-party Assurance: BDO PLT (limited assurance for financial statements only)

Sustainable Products & Innovation

• Eco-friendly products using organic cotton, recycled cotton, sustainable cotton, recycled polyester, bamboo, Sorona fabric

Awards & Recognition

• Putra Brand Awards (Silver)
• Forbes Asia’s 200 Best Under a Billion

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 65% reduction of average electricity cost in Q3 2019 compared to Q2 2019 due to solar system installation.
• Implementation of "No plastic bag" campaign and use of Oxo-Biodegradable plastic bags.

Social Achievements

• Launched "Live to Contribute" initiative for inclusive society, providing employment opportunities to people with disabilities.
• Contributed RM130,000 and 4,100 cartons of clothing to charitable organizations.
• Employees volunteered approximately 650 man-hours in community service.
• Improved workforce diversity.

Governance Achievements

• Established clear compliance policies and code of conduct for all employees.
• Encouraged whistleblowing practices.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact of product packaging in stores located in shopping malls.
• Managing supply chain sustainability across various supplier stages.

Mitigation Strategies

• Working with suppliers to improve processes and ethical requirements.
• Investing in renewable energy (solar panels), energy-efficient lighting, and waste reduction programs.
• Regular visits to supplier factories to monitor conditions.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct
• Regular visits to supplier factories

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Core option)

UN Sustainable Development Goals

• All 17 SDGs considered

Sustainability strategy aligned with UN Sustainable Development Goals.

Awards & Recognition

• Billion Ringgit Club Awards 2018 (Highest returns to shareholders)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Market Presence
• Energy and Emission
• Employment
• Occupational Health and Safety
• Training and Education
• Diversity and Equal Opportunity
• Child Labour
• Local Communities
• Customer Privacy

Environmental Achievements

• Reduction of electricity consumption of approximately 22% in financial year 2020.
• Reduction of approximately 36% electricity cost comparing year on year to financial year 2019 due to solar system installation.
• Implementation of a "No plastic bag" campaign in stores.
• Use of Oxo-Biodegradable plastic bags certified by SIRIM ECO 001.

Social Achievements

• Launched ‘live to contribute’ initiative for an inclusive society, providing employment opportunities to people with disabilities.
• Provided Sign Language training to employees.
• Invested more than RM255,000 in employee training and development.
• Spent more than RM120,000 on external training and certification.
• Organized 72 internal and external trainings.
• Organized online training classes, “Jom Learn”, during the Movement Control Order.
• Donated approximately RM1,100,000 in cash and in kind and 2,600 cartons of clothing to charitable organizations.
• Employees volunteered approximately 410 man-hours in community service.

Governance Achievements

• Complied with the new requirements on Corporate Liability Section 17(A) of MACC Amendment Act 2018.
• Implemented a code of conduct signed by all employees.
• Encouraged whistleblowing practices.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 on business operations, leading to a drop in revenue and profit.
• Challenges in reusing or recycling in-store waste due to store locations.
• 51 minor injuries in Malaysia and 1 case in Cambodia (mostly non-work related).

Mitigation Strategies

• Provided more efficient equipment (trolleys) and safety training to reduce workplace accidents.
• Implemented online training during the Movement Control Order.
• Provided financial aid to employees in times of emergency and crisis through the employees Assistance programme.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct addressing social and environmental issues.
• Regular visits to supplier factories (disallowed in 2020 due to COVID-19).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Core option)

Awards & Recognition

• The Edge Billion Ringgit Club Awards 2019 (top 3 Highest growth in profit after tax over three years).