Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workplace Safety
• Employee Relations
• Effluents and Waste
• Energy
• Social Welfare
• Sustainable and Quality Product

Environmental Achievements

• Successfully installed solar panels on factory roofs, reducing carbon emissions by 683.65 tons and achieving standard coal savings equivalent to planting 37,359 trees.
• Implemented 3Rs (Reduce, Reuse, Recycle) waste management, reprocessing and reclaiming plastics waste and outer packaging from suppliers.
• Achieved ISO 14001:2015 Environmental Management System certification.

Social Achievements

• Transitioned from OHSAS 18001:2007 to ISO 45001:2018 Occupational Health and Safety Management Systems.
• Conducted Chemical Health Risk Assessment (CHRA) for BP09 and BP10 plants.
• Increased training investment by 118.6% and total training hours by 156.5% compared to 2018.
• Held annual Management team bonding event.
• Organised Annual BPPLAS Blood Donation Campaign, collecting 135 blood packs.
• Donated 3Rs recycle bins to various primary schools.

Governance Achievements

• Established a Board Risk Management Committee (BRMC) to oversee economic, environmental, and social risks and opportunities.
• Implemented a Group Code of Conduct for all Directors and employees.
• Took proactive actions to ensure compliance with anti-corruption measures and the upcoming Corporate Liability Provisions.

Climate Goals & Targets

Environmental Challenges

• Increase in industrial accidents in 2019.
• Challenging market conditions due to sluggish consumer demand, commodity price volatilities, US-China trade war, and Brexit.
• Higher manpower costs due to increased minimum wage.
• Higher maintenance costs due to the uniqueness and scarcity of spare parts for older machinery.
• COVID-19 pandemic causing supply chain disruptions.
• Protracted US-China trade conflicts.
• Forex volatility affecting revenues and purchases denominated in foreign currencies.

Mitigation Strategies

• Targeting zero accidents and fatalities to reduce lost man-days rate.
• Adapting business strategies and focusing on specific business objectives.
• Investing in new technological equipment and employee training to boost production efficiency.
• Implementing cost-rationalization measures.
• Streamlining product mixes and developing higher value-added products.
• Securing various supply sources to minimize supply chain disruption.
• Continuous innovations to maintain product quality and enhancing production efficiencies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working closely with strategic partners/suppliers to supply non-hazardous products.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guide, United Nations Sustainable Development Goals (SDGs)

Certifications: ISO 45001:2018, ISO 14001:2015, ISO 9001:2015, ISO 22000:2005

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 12

The report details how BPPLAS's initiatives contribute to these goals.

Sustainable Products & Innovation

• Premium grade Cast Stretch Machine Rolls
• High quality thin gauge “Infinity” Hand Rolls
• Blown PE Form-Fill-Seal film
• Lamination Base film
• Collation Shrink film
• Customised PE bags

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• 32.8% of electricity consumption is generated from renewable sources, avoiding 10,305 MT of Scope 2 CO2 emissions.
• Waste directed to disposal decreased by 16% in FY2023
• Recycled materials consumption is around 7.8% of our total resin consumption.

Social Achievements

• Employees turnover rates reduced to 7% from 17%
• FY2023 concluded highest training hours both overall (6,101 hours) and per headcount (11.8 hours per person).
• Contributed RM 46,618 (monetary and non-monetary) to the local communities in FY2023.

Governance Achievements

• Zero cases reported on bribery and corruption.
• Zero cases on whistleblowing
• Zero fines or penalties regarding unethical business conduct or incompliance

Climate Goals & Targets

Environmental Challenges

• Increasing Operating Cost due to Russia-Ukraine war, inflation, interest rate hikes, weakening Ringgit, electricity and water price hikes, and new Employment Act.
• Geopolitical Tensions from the Russia-Ukraine war, US-China trade restrictions, protectionism policies, and China's economic weaknesses.
• Weakened demand for flexible plastic packaging products in 1H 2023 due to market uncertainties and inventory destocking.

Mitigation Strategies

• Optimizing product mix and increasing uptake of premium products.
• Strong EBITDA cash flow generation and management.
• Cost pass-through mechanism and internal cost management.
• Enhancing supply chain management and implementing coordinated pricing strategies.
• Product innovation, developing higher value-added product lines, and advancing sustainable packaging solutions.
• Monitoring and managing forex risk and exposures.
• Deploying new technological investment, upgrading equipment and facilities, upskilling employees, and enhancing product mix to manage and optimize cost efficiency.

Supply Chain Management

Responsible Procurement

• Prioritizes sourcing supplies and services locally whenever feasible.
• Diversified procurement approach to manage supply chain resiliency, stability, and cost efficiency.
• ESG factors and sustainability-related considerations are also taken into account when evaluating suppliers’ performance and quality.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, MMLR

Certifications: ISO 9001:2015, ISO 22000:2018, ISO 14001:2015, ISO 45001:2018, ISCC PLUS

Sustainable Products & Innovation

• Downgauged products
• Products with recycled contents