Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Electricity consumption decreased by 31.2%
• CO2 emissions from electricity reduced by 35.5%
• Reduction of 30.4% for CO2 emissions from air travel
• Cutting-edge nano-filtration waste treatment systems enable reuse of salt residue

Social Achievements

• Maintained 2,000 volunteer hours every year since 2013
• Continued to offer maternity and paternity leave
• MSM Perlis achieved 1 million man-hours without lost time injury

Governance Achievements

• Commitment to ethical supplier management practices
• Established policies, processes and systems to safeguard ethical, open and sustainable sourcing
• All employees adhere to company’s procurement process and policy

Climate Goals & Targets

Environmental Challenges

• Increased water usage due to MSM Johor's full year of operations and river flushing activities
• Increased natural gas usage due to MSM Johor's operational consumption
• Safety performance dropped at other refineries, with increased days lost due to injury

Mitigation Strategies

• Cost saving initiatives such as direct melting, production based on demand and MSM Perlis’s installation of a power factor improvement capacitor (for diesel consumption)
• Mitigation plans implemented to prevent future severity of impact from safety incidents

Supply Chain Management

Responsible Procurement

• Policies, processes and systems to safeguard ethical, open and sustainable sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: FSSC 22000, ISO 22000, GMP, HACCP, Halal, Kosher, OHSAS 18001, MS 1722

Awards & Recognition

• President’s FGV Award for Safety 2018/2019 – MSM Perlis

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Water usage decreased by 22.9%
• Reduction in CO2 emissions from Air Travel by 86%
• Reduction of 0.8% in total purchased electricity
• Total water optimisation of 2.55m3, a decreased of 18% compared to 3.11m3 in the previous year.
• Energy consumption of 0.45 GJ , a reduction of 2.2% compared to 0.46 GJ in the previous year.

Social Achievements

• Maintained 2,000 volunteer hours every year since 2013
• Number of accident cases narrowed by 26% since 2018
• Increase in total Malaysian registered companies for procurement by 1.34%
• Contributed a total of 51,237 kg of sugar products to aid communities impacted by COVID-19 pandemic and through other corporate responsibility programmes. This amounted to over RM100,000 worth of contributions for the community.
• Zakat contributions of more than RM1.0 million

Governance Achievements

• Established feedback channels for employees to raise concerns, identify amiable solutions and report instances where they feel violated, disrespected or treated unfairly.
• Established a collective bargaining agreement (CBA) with the union representing our employees.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact
• Fatality case reported in MSM Prai in January 2020 due to contact with hot substance
• Lowest ever melting efficiency in April and May 2020 in MSM Prai due to significant drop in demand during the MCO period.

Mitigation Strategies

• Relocation of Group’s refining operations in MSM Perlis to the new refinery in Johor with redeployment of manpower and resources.
• Process improvement activity in MSM Johor to lower water consumption.
• Additional SOP registered as an immediate corrective action following the fatality, including training for all position levels, installation of a big digital thermometer, locking system at inspection, Lock Out Tag Out (LOTO) system, safety signages, and following supervisor’s instructions according to SOP.

Supply Chain Management

Responsible Procurement

• Ethical procurement practices
• Guidelines and strategies on ethical buying

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: FSSC 22000, ISO 22000, GMP, HACCP, Halal, Kosher

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Innovation and Transformation
• Economic Growth

Environmental Achievements

• Reduced Scope 1 emissions by 3.5% per tonne of sugar product produced compared to 2022
• Reduced Scope 2 emissions by 9.5% per tonne of sugar products produced compared to the previous year
• Achieved 94% survival rate of 1,700 mangrove saplings planted in previous years
• Planted 150 mangrove trees in 2023
• Repurposed mudcake into animal feed and fertilizer
• Aiming for zero landfill target by 2024

Social Achievements

• Improved FTSE4Good ESG rating from 2.4 to 3.1 stars
• 33.33% women's representation in senior management and 36% on the Board
• 20,805 total training hours for employees
• 35 community programmes and initiatives benefiting close to 10,000 people
• RM250.6 million worth of procurement went to local goods and services
• Zero substantiated complaints concerning human rights violations

Governance Achievements

• Maintained zero confirmed incidents of corruption and action
• Full communication and training with Board & Employees, and 88% with business partners on anti-corruption policies
• Implemented a robust whistleblowing policy

Climate Goals & Targets

Environmental Challenges

• Global sugar shortage and decline in sugar production
• Supply chain disruptions due to extreme weather events
• Rising energy costs and import costs
• Regulatory changes impacting operations
• Shifting consumer preferences towards sustainable products

Mitigation Strategies

• Diversifying suppliers
• Investing in resilient infrastructure
• Transitioning to renewable energy sources
• Investing in carbon-neutral technologies
• Implementing hedging strategies for raw sugar prices
• Upgrading raw sugar vessel to reduce carbon footprint and costs
• Implementing cost-saving measures through C2R initiative
• Exploring expansion opportunities in APAC and Africa

Supply Chain Management

Supplier Audits: 98% of procurement spend on local suppliers; ESG checklist implemented for upstream vendors.

Responsible Procurement

• Group Procurement Policy
• MSM Group Trading Policy
• SOP Raw Sugar Frame Supply Contract
• NDPE policy with Wilmar Sugar

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Floods
• Droughts
• Water stress

Transition Risks

• Carbon pricing
• Regulatory changes
• Shifting consumer preferences

Opportunities

• Increased demand for renewable energy solutions
• Investing in carbon-neutral technologies
• Development of climate adaptation and insurance risk solutions

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, Bursa Malaysia’s Main Market Listing Requirements, Sustainability Reporting Requirements of the Securities Commission Malaysia, Malaysian Code on Corporate Governance, Bursa Malaysia Sustainability Reporting Guide (3rd Edition), TCFD

Certifications: ISO 45001:2018 (MSM Prai, MSM Johor, SBW), ISO 9001:2015, FSSC 22000, Halal certification (JAKIM), Kosher certification (London Beth Din Kashrut Division)

Third-party Assurance: SIRIM QAS International Sdn Bhd

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

MSM's initiatives contribute to these goals through renewable energy adoption, ethical labor practices, waste reduction, climate action, and biodiversity conservation.

Sustainable Products & Innovation

• Mudcake repurposed into fertilizer and animal feed

Awards & Recognition

• MSOSH OSH Practitioners Award
• MSOSH Occupational Safety & Health Awards