Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Safety and Health
• Capacity Building

Environmental Achievements

• PROTON Green Initiatives achieved a total electricity bill reduction of RM 10 million in FY2016 and a further reduction of RM 5.9 million between April to December 2016.
• Alam Flora manages 135 tonnes of scrap per day, equivalent to 42,000 tonnes annually.

Social Achievements

• POS Malaysia implemented several continuous activities to increase health and safety awareness among employees and workforce.
• CTRM implemented several SHE improvement activities and programmes, including training, blood donation drives, and setting up an in-house clinic.
• DRB-HICOM sponsored the Malaysian Paralympians with a 12-day Umrah Package.
• DRB-HICOM initiated the Heart Project to develop the skills of underprivileged children.
• Sahabat DRB-HICOM volunteer programme contributed 1,768 volunteering hours.

Governance Achievements

• Established a Sustainability Committee with BRSC, SSC, and SWC to oversee sustainability initiatives.
• Implemented a Code of Ethics and Business Practice.
• Engaged with the Malaysian Anti-Corruption Commission (MACC).

Climate Goals & Targets

Environmental Challenges

• Ensuring sustainability value is cascaded down across the Group.
• Collecting data and information across the various facets of its businesses.

Mitigation Strategies

• Developed an Integrated Reporting Occupational Safety, Health & Environment (IROSHE) database system for data collection and dissemination.
• Quarterly reporting to Senior Management.

Supply Chain Management

Responsible Procurement

• DRB-HICOM Group Procurement Policy (GPP)
• Vendor Development Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, Bursa Malaysia’s Sustainability Reporting Guide

Certifications: ISO 14001 (mentioned for some companies)

Environmental Metrics

ESG Focus Areas

• Safety and Health
• Energy Management
• Waste Management
• Human Capital
• Corporate Responsibility

Environmental Achievements

• Reduced Group’s total energy consumption by 3.0% compared to FY2017/18, equivalent to a reduction of more than 6,400 tonnes of CO2 emissions
• Reduced total energy consumption by over 42 million kWh since FY2016/17, equivalent to a reduction of more than 28,000 tonnes of carbon emissions
• CTRM's new manufacturing plant (Building 6) certified Platinum under GreenRE's non-residential green building certification.
• Collected 2,426 tonnes of recyclables from Separation @ Source Programme since April 2016

Social Achievements

• Employed six differently-abled individuals under the People with Disabilities (PWD) Programme
• Conducted more than 5,157 training programmes, investing over RM 17 million in training
• Achieved 13% reduction in total number of incident cases compared to FY2017/18
• 81% of subsidiaries with the Group SHE practitioner to share successful SHE initiatives
• Improved employee performance appraisal in the Group to 396

Governance Achievements

• Embedded sustainability principles into decisions and actions at all levels of operation
• Established the Board Risk and Sustainability Committee (BRSC) for oversight of sustainability strategy and performance
• Established the Sustainability Steering Committee (SSC) and Sustainability Working Committee (SWC) to drive sustainability strategy implementation

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (transition to lower-carbon economy and physical impacts of climate change)
• Legal & Compliance Risk due to potential increased compliance costs from new government policies on climate change and energy efficiency
• Health & Safety risks

Mitigation Strategies

• Exploring innovative ways and cutting-edge technology to reduce energy consumption and carbon footprint
• Engaging with the government and industry experts to prepare for regulatory transitions
• Conducting stringent checks, employee trainings, implementing control systems and standard operational procedures to mitigate health and safety risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• DRB-HICOM Green Procurement Policy
• Ethical requirement for procurement personnel in Group Procurement Policy (GPP)
• Managing conflicts of interest, procurement relationships and ethical conduct of suppliers through Invitation To Bid (ITB) documents

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Circular Economy within DRB-HICOM Ecosystem
• Decarbonise Our Environmental Footprint

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001:2015 (12 subsidiaries)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Incorporating Sustainable Development Goals (SDGs) into the Group’s sustainable strategy

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Asia Sustainability Reporting Awards 2018 (Finalist – Asia’s Best Sustainability Report within Annual Report, Finalist – Asia’s Best SDG Reporting)
• TalentCorp Life at Work Awards 2018 – Outstanding Practice (Workforce)
• Excellent Technology Development Award – Geely Auto 2019 Annual Supplier Conference awarded to PHN Industry Sdn. Bhd.
• Best Performer 2018 Award – Airbus Supply Chain & Quality Improvement Programme (“SQIP”) awarded to Composites Technology Research Malaysia Sdn. Bhd. (“CTRM”)
• HR Asia Awards - Best Companies to Work For in Asia 2018
• HR Excellence Awards 2018 (Gold Winner – Excellence in HR Team Collaboration, Bronze Winner – Excellence in Graduate Recruitment & Development)
• Malaysia HR Awards 2018 – Employer of Choice Award (Private Sector)
• Human Resources Asia Recruitment Awards 2018 – In-House Recruitment Professional of The Year (Silver) awarded to Vilashini Ananda Rajah, Head of Group Talent Acquisition
• Rentalcars.com Customer Favourite Award 2018 – Avis Malaysia’s Kuching and Kota Kinabalu branch

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Reduced Group’s total scheduled waste generation by 43% compared to 2018 baseline year
• Reduced total energy consumption from non-renewable sources by 24% compared to 2018 baseline year
• Reduced total carbon emissions by 17% compared to 2018 baseline year
• 9,892 tonnes CO2e avoidance through Solar PV System in FY2021
• More than 17,539kg of used fabric collected and repurposed in FY2021
• 676,850 m³ recycled water generated through the wastewater recycling programme at Proton Tanjung Malim since 2015

Social Achievements

• Reduction in total number of accidents by 20% compared to FY2020
• Zero fatalities recorded in FY2021 across the Group
• Over 5,500 trainings conducted, with approximately 70% conducted virtually
• Launched DRB-HICOM Cares Community Program in collaboration with health agency Naluri
• More than 44,831 lives touched through Corporate Responsibility activities

Governance Achievements

• Zero cases of non-compliance to Anti-Bribery and Anti-Corruption Policy observed in FY2021
• Established a robust sustainability governance structure including Board Risk & Sustainability Committee and Sustainability Steering Committee
• Revised SHE Policy to strengthen commitment on environmental stewardship

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic
• Climate-related risks (transition and physical risks)
• Workplace safety and health risks
• Legal and compliance risks
• Water scarcity

Mitigation Strategies

• Established Business Recovery Task Force to reconfigure operating models and strategies
• Integrated climate-related risks into the Group Enterprise Risk Management Policy
• Implemented stringent checks, employee trainings, control systems and SOPs to mitigate safety and health incidents
• Strengthened anti-bribery and anti-corruption practices in accordance with Section 17A of Malaysian Anti-Corruption Commission Act
• Exploring methods to adopt the circular economy approach
• Implementing energy reduction initiatives and adopting cleaner and renewable energy sources
• Implementing wastewater recycling and controlled groundwater withdrawal
• Initiated a tube well project to mitigate water disruption

Supply Chain Management

Supplier Audits: VCOC on-line self-assessment conducted on selected vendors in FY2021, with full compliance recorded.

Responsible Procurement

• DRB-HICOM Group Procurement Policy (GPP)
• DRB-HICOM Vendor Code of Conduct (VCOC)
• Zycus E-Procurement system

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall leading to production and business disruption
• Water scarcity causing operational interruptions
• Prolonged high temperatures causing declines in labor productivity

Transition Risks

• Shifts in consumer trends towards electric vehicles
• Pressure to transition to renewables
• Stringent carbon emission regulatory standards
• Failure to meet national regulation on carbon emission standards
• Future introduction of carbon tax and carbon trading

Opportunities

• Improved operation efficiency
• Development of green products and services
• Utilization of global push for sustainability to improve existing machines/equipment efficiencies

Reporting Standards

Frameworks Used: GRI Standards: Core Option, Bursa Malaysia’s Main Market Listing Requirements on Sustainability Reporting, FTSE4Good Bursa Malaysia Index’s Environmental, Social and Governance Indicators, Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, The United Nations Sustainable Development Goals, Task Force on Climate-Related Financial Disclosure

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with the UN Sustainable Development Goals but does not specify which goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Company of the Year Award for Pioneering Renewable Energy (Sustainability & CSR Malaysia Awards 2021)
• Malaysia’s Leading Car Rental Company 2021 (Malaysia Travel Awards 2021)
• The Asset Triple A (Islamic Finance Award 2021)
• Best Quality Award and Best Delivery Award (PROTON Suppliers Conference and 2021 Award Ceremony)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Safety
• Pollution
• Labor Standards
• Community Development
• Responsible Procurement
• Data Privacy
• Ethical Business Conduct
• Anti-Corruption

Environmental Achievements

• Avoided 21,554 tonnes of carbon emissions in FY2022 through rooftop solar PV projects.
• Reduced total energy consumption from non-renewable sources by 12% from 2018 baseline.
• Reduced total GHG emissions by 3% from 2018 baseline.
• Reduced scheduled waste production by 16% from 2018 baseline.
• Achieved Platinum GreenRE certification for Building 6 at CTRM.

Social Achievements

• Launched Leadership Efficacy and Development Programme (LEAD).
• Conducted various community programmes reaching more than 50,000 people.
• Achieved an LTIFR of 1.73 cases per million hours worked and 158 accident cases involving Lost Time Injuries (LTI).
• Invested more than RM18.2 million in learning and development, resulting in an average of 18.84 training hours per employee.

Governance Achievements

• Achieved a 4-star rating from FTSE4Good, placing DRB-HICOM in the top 25% among public listed companies by ESG rating.
• Recorded zero substantiated complaints concerning breaches of customer privacy and losses of customer data.
• Recorded zero anti-bribery and anti-corruption non-compliance cases.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (floods, droughts, extreme temperatures) affecting operations.
• Water scarcity in certain areas.
• Transition risks related to the shift towards electric vehicles and stricter carbon emission regulations.
• Maintaining a safe and healthy working environment.

Mitigation Strategies

• Implemented Flood Mitigation Plan and Flood Disaster Management Plan.
• Invested approximately RM1.0 million in flood mitigation measures.
• Implemented energy reduction initiatives and transitioned to cleaner and renewable energy sources.
• Introduced a KPI on Scope 2 carbon intensity.
• Established a target of 20% renewable energy in electricity consumption mix by 2035.
• Implemented Zero Harm programme to reduce SHE incidents.
• Introduced a corporate safety and health performance indicator.

Supply Chain Management

Supplier Audits: Pilot Vendor Self-Assessment Programme (VSAP) conducted for prioritized suppliers of M&E business.

Responsible Procurement

• Group Procurement Policy (GPP)
• Vendor Code of Conduct (VCOC)
• Zycus eProcurement system
• Supplier sustainability assessment
• Emphasis on local sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Extreme high temperatures

Transition Risks

• Shifts in consumer trends towards EVs
• Stricter carbon emission regulations
• Carbon pricing

Opportunities

• Improved operational efficiency
• Green product development

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia’s Main Market Listing Requirements on Sustainability Reporting, FTSE4Good Bursa Malaysia Index’s Environmental, Social and Governance indicators, Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard, The United Nations Sustainable Development Goals, Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 14001:2015 (multiple subsidiaries), ISO 45001:2018 (11 subsidiaries)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric vehicles (EQS 500 4Matic)

Awards & Recognition

• FTSE4Good 4-star rating
• Asia Corporate Excellence & Sustainability Awards 2022 Green Initiative Award
• Global Good Governance Awards 2022 3G Championship Award in Sustainability Reporting
• Sustainability & CSR Awards 2022 Company of the Year Award