Climate Change Data

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