Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption from 70,749 kW to 59,296 kW

Social Achievements

• Provided employee benefits such as health checkups and dental treatment
• Regular trainings and seminars for employees

Governance Achievements

• Established a Whistleblowing Policy
• Implemented a Code of Conduct and Ethics

Climate Goals & Targets

Environmental Challenges

• Credit risk
• Technology obsolescence risk
• Competition risk
• Professional liability risk
• Cybersecurity and system disruptions
• Downturn of other related industries
• Changes on any Acts, Tax, Regulations or Policies
• Impact of Global Crisis

Mitigation Strategies

• Stringent credit control procedures
• Investment in research and development
• Diversification of client base
• Quality control procedures and good business relationships with partners
• Proactive vigilance to prevent system disruptions
• Diversification of business segments and customer categories
• Proactive measures to address potential impacts
• Necessary plans and measures to avoid major impact on Group’s operation and performance

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Environmental Metrics

ESG Focus Areas

• Industry Impact and Client Relationship
• Intellectual Property
• Cyber Security and System Interruption
• Energy Consumption
• Occupational Health, Safety and Well-being
• Waste Management
• Talent Attraction and Retention
• Workforce Learning and Development
• Anti-Corruption and Whistleblowing Policies

Environmental Achievements

• Implemented energy efficiency initiatives such as reminders for employees to switch off office lights and air conditioners when not in use, thus further reducing unnecessary electricity consumption.
• Embarked on an initiative for its offices to go ‘paperless’, that is, removing any need for printed documents and digitising all documents by end 2021.

Social Achievements

• Maintained strong employee morale and wellbeing by providing additional assistance to employees working from home and on-site, including moving many of our programs to virtual experiences which include online training classes and sustainability-related engagement activities.
• Donated 1,440 boxes of 3 ply face masks to various organisations.
• Provide equal recruitment and employment opportunities to all employees and candidates. Our policy bans any form of discrimination based on race, colour, gender, sexual orientation, ethnicity or national origin, disability, pregnancy, religion, political affiliation, union membership, marital or social status.
• Conduct trainings to inculcate high standards of occupational safety and health policies at all operational sites.
• Conduct fire drills and safety training to enhance employees’ preparedness during emergencies throughout the year.
• Provide appropriate training to employees to improve their knowledge and expertise to contribute meaningfully and effectively to AppAsia’s performance.
• Support the training and development needs of employees. Besides on-the-job exposure, there are many opportunities for job rotation, mentoring and coaching to allow employees to reach their full potential.
• Have Anti-Corruption and Whistle-Blowing Policies to provide employees and third parties with a secure channel to report or raise concerns about possible improprieties, without fear of reprisal in any form.

Governance Achievements

• The Board of Directors considers economic, environment, social and governance issues such as fraud, corruption and bribery, environment, health and safety, when determining the nature and extent of material risks that AppAsia is willing to take to achieve its strategic and business objectives.
• The Board is committed to the highest level of corporate governance and transparency in the execution of policies and processes as this is fundamental to the management and operational protocols of AppAsia.
• Established a Board Charter to promote high standards of corporate governance.
• Established a Code of Conduct and Code of Ethics.
• Put in place appropriate procedures including requiring such Directors to abstain from participating in deliberations during meetings and abstaining from voting on any matter in which they may also be interested or conflicted.
• Adopted a Whistleblowing Policy.

Climate Goals & Targets

Environmental Challenges

• Decrease in revenue in the Business-to-Business (“B2B”) e-commerce services sector due to the Covid-19 pandemic that impacted the overall B2B trading activities.
• Lower B2B transactions caused by imposition of the Movement Control Order that has impacted the overall B2B sourcing industry.
• Technology obsolescence risk.
• Competition risk.
• Credit risk.
• Professional liability risk.
• Downturn of Other Related Industries.
• Changes on any Acts, Tax, Regulations or Policies.
• Impact of Global Crisis (COVID-19).

Mitigation Strategies

• Effective cost control across the Group.
• Stringent credit control procedures.
• Commitment to invest in research and development to ensure the Group’s products and technology remain competitive in the industry.
• Securing new business and/or customers and maintaining cordial and long-term customer relationships.
• Credit checks using the services of credit reporting and checking agencies and selective interaction and association with creditworthy business partners.
• Quality control procedures and maintaining good business relationship with our partners to secure on-time support services.
• Diversifying its business segments and customers categories across different industries.
• Continuously enhancing existing technology and applications and developing new technology for new solutions.
• Preventive protocols to reduce the risk of exposure, such as working remotely, team separation, additional cleaning and disinfecting while maintaining suitable social distancing.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Reduced electricity consumption from 72,000 kW to 67,000 kW in FYE2021 (mainly due to office closures during MCO).

Social Achievements

• Provided monetary donations and necessities to flood victims through a Non-profit Organization.
• Implemented occupational health, safety and well-being policies and trainings.
• Supports employee training and development.

Governance Achievements

• Established Anti-Corruption and Whistleblowing Policies.
• Implemented a Board Charter to promote high standards of corporate governance.
• Established a Code of Conduct and Code of Ethics.

Climate Goals & Targets

Environmental Challenges

• Decrease in B2B e-commerce transactions during the Covid-19 MCO period.
• Competition from existing and prospective industry players.
• Technology obsolescence risk.
• Credit risk.
• Dependency on major contracts.
• Professional liability risk.
• Cybersecurity and system disruptions.
• Economic downturn of other related industries.
• Changes in Acts, Tax, Regulations or Policies.
• Impact of Global Crisis (COVID-19).

Mitigation Strategies

• Investing in research and development to ensure competitive products and technology.
• Securing new business and customers, maintaining customer relationships.
• Adopting stringent credit control procedures, monitoring trade receivables.
• Diversifying client base.
• Implementing quality control procedures, maintaining good business relationships with partners.
• Adopting a holistic and risk-based framework to safeguard confidential information, regularly monitoring and improving IT infrastructure, systems and SOPs.
• Diversifying business segments and customer categories.
• Continuously enhancing existing technology and developing new technology.
• Maintaining a high standard of IT control and compliance by establishing a clear information and communication technology security policy and developing the information security management system (ISMS) framework according to ISO 27001.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• eConfirm.my platform
• e-media digital platforms

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Implemented energy efficiency initiatives such as reminders for employees to switch off office lights and air conditioners when not in use, thus further reducing unnecessary electricity consumption.
• Industry-wide electronic bank confirmation platform, eConfirm.my, significantly reduced postage costs and paper waste.

Social Achievements

• Contributed to cultivating interest in open water swimming by sponsoring and participating in the NeptuneX Open Water Swimming Championship.
• Provided training to improve employees’ knowledge and expertise.
• Adhered to preventative measures such as upkeep of equipment, usage of personal protection equipment, and elimination of hazards at all sites.

Governance Achievements

• Established various committees where specific powers of the Board are delegated.
• Established clear roles and responsibilities in discharging its fiduciary and leadership functions.
• Adopted a diversity policy which outlines its approach to achieving and maintaining diversity on its Board and in Senior Management positions.

Climate Goals & Targets

Environmental Challenges

• Decrease in B2B e-commerce transactions.
• Higher competition from other e-Marketplaces and B2B competitors.
• Technology obsolescence risk.
• Credit risk.
• Competition risk.
• Professional liability risk.
• Dependency on major contracts.
• Cybersecurity and system disruptions.
• Downturn of other related industries.
• Changes on any Acts, Tax, Regulations or Policies.
• Impact of Global Crisis.

Mitigation Strategies

• Investment in research and development to ensure products and technology remain competitive.
• Stringent credit control procedures and monitoring of long outstanding trade receivables.
• Credit checks using the services of credit reporting and checking agencies.
• Enhancement of digital solutions and services to maintain competitiveness.
• Quality control procedures and maintaining good business relationships with partners.
• Diversification of clients’ base.
• Holistic and risk-based framework to safeguard confidential information.
• Clear information and communication technology security policy and ISMS framework according to ISO 27001.
• Diversification of business segments and customers categories across different industries.
• Cautious expansion while enhancing the Group’s operation and performance.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ACE Market Listing Requirements, Sustainability Reporting Guide (3rd Edition) under Bursa Malaysia Securities Berhad

Sustainable Products & Innovation

• eConfirm.my platform
• e-media digital platforms

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• eConfirm.my platform significantly reduced postage costs and paper waste.
• e-media digital platforms promoted the use of mobile applications, lowering demand for printed newspapers.
• Implemented energy efficiency initiatives such as reminders for employees to switch off office lights and air conditioners when not in use.

Social Achievements

• Sponsored the 1st South East Asian Open Water Swimming Championship 2023.
• Sponsored a badminton tournament held in Klang.
• Implemented policies banning discrimination based on race, colour, gender, sexual orientation, etc.
• Conducted safety trainings and fire drills.

Governance Achievements

• Established various committees (Nomination, Remuneration, Audit, Share Issuance Scheme) to ensure effective governance.
• Implemented Anti-Corruption and Whistleblowing Policies.
• Maintained a transparent relationship with External Auditors.

Climate Goals & Targets

Environmental Challenges

• Decreased B2B e-commerce transactions due to stiff competition.
• Competition risk from major local and foreign application developers.
• Credit risks associated with the moneylending business.
• Technology obsolescence risk.
• Professional liability risk from system disruptions.
• Cybersecurity and system disruption risks.
• Economic downturn of other related industries.

Mitigation Strategies

• Stringent credit control procedures and monitoring of long outstanding trade receivables.
• Enhancement of digital solutions and services to maintain competitiveness.
• Credit checks using credit reporting and checking agencies and selective interaction with creditworthy business partners.
• Investment in research and development to ensure products and technology remain competitive.
• Quality control procedures and maintaining good business relationships with partners for support services.
• Holistic and risk-based framework to safeguard confidential information, compliance with data protection laws, regular monitoring and improvements to IT infrastructure, systems and SOPs.
• Diversification of clients’ base to reduce over-reliance on few major clients.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ACE Market Listing Requirements, Sustainability Reporting Guide (3rd Edition) under Bursa Malaysia Securities Berhad

Sustainable Products & Innovation

• eConfirm.my platform
• e-media digital platforms