KUB Malaysia Berhad
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environmental, Social and Governance (ESG)
Environmental Achievements
- Reduced print run of all publications
- Completed planned LPG sphere at Westport Klang facility, increasing storage capacity by 1,000 metric tonnes
- Implemented Closed Ended Conservation Trenches (CECT) techniques for replanting fields
- Introduced a zero-burn policy for the first phase of the planned oil palm replanting exercise at Sungai Buloh estate
Social Achievements
- Introduced a one-day-a-week work from home rotation
- Introduced special leave dispensation for employees scheduled to undertake their COVID-19 vaccination
- Kelab KUB organised engagement programmes, including an annual dinner with orphans from Rumah Nur Sakinah
- Kelab KUB raised funds to help 12 employees whose homes had been severely damaged by floods
- Focused on developing technical and behavioural competency frameworks
Governance Achievements
- Established a Sustainability Policy and Framework
- Established a robust sustainability governance structure spearheaded by the Board of Directors
- Implemented Anti-Bribery and Corruption Policy, Vendor Code of Business Ethics, Whistleblowing Policy and Employee Handbook
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Increase dealer coverage in underrepresented areas of the country in LPG division
- Replanting of old and low yielding oil palm stands at Sungai Nape estate (294 hectares in FY2023, 313 hectares in FY2024, 398 hectares in FY2025)
Short-term Goals:
- Steady recovery in sales volumes in LPG division
- Continue RCRQ and repainting activities, ongoing social media marketing efforts, and dealer acquisition drive in LPG division
- Further invest in the modernisation of processes in LPG division (palletising systems)
Environmental Challenges
- Increasingly competitive marketplace and threat of price wars in LPG division
- Rise of substitute products such as Natural Gas and Liquefied Natural Gas
- Inflationary effect on the price of fuels used in LPG division due to the Russia-Ukraine conflict
- Lower-than-anticipated fresh fruit bunches (FFB) production in Agro division due to heavy rainfall and labour shortage
- High fertiliser costs in Agro division
- Highly competitive marketplace and low revenues in ICT business
- Subdued demand for new ICT installations and maintenance support
- Softening of CPO prices and continued shortages in foreign labour in Agro division
- Rising cost of inputs such as fertilisers, agrochemicals, building materials, spare parts, and fuel in Agro division
Mitigation Strategies
- Spent RM2.4 million on reconditioning and requalification of LPG cylinders and RM1.2 million on repainting
- Continued to build downstream presence by recruiting new sub-dealers and increasing supply to convenience stores
- Maintained ongoing social media engagement activities
- Implemented a comprehensive plan to upgrade estates, including gravelling of field roads, construction of workers’ quarters, and implementation of a new Estate Computer System (iECS)
- Mechanised infield FFB collection and evacuation processes
- Implemented key turnaround initiatives for KUBTel focused on securing early market entry in private 5G and 5G CRAN Fronthaul solutions
- Working towards developing product readiness and optimising speed-to-market across Multi-Edge Computing, Private 5G Core and 5G-in-a-box
- Undertaking extensive business development activities
- Investing in gains within market segments where existing presence
- Strengthening existing partnership with Nokia and establishing collaborative relationships with other global technology players
- Expanding presence in telecommunications build and lease territory
- Approaching completion of the final leg of KUBTel’s Mutual Separation Scheme
- Selective reskilling of existing employees and recruitment of specialised professionals
- Mechanisation of in-field collection, manuring and field upkeep activities
- Increased adoption of best agricultural practices and implementation of practices for enhanced productivity
Supply Chain Management
Supplier Audits: 98.6% of vendors are local
Responsible Procurement
- Vendor Code of Business Ethics Policy
- Prioritises local suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Heavy rainfall and resulting floods
Transition Risks
- Rising crude oil prices
- Rising inflation
- Russia-Ukraine conflict
Reporting Standards
Frameworks Used: GRI Standards: Core Option, UN SDGs
Certifications: OHSAS 45001:2018, ISO 22301:2019, MSPO, ISO 9001:2015