Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented energy-saving measures in the head office (lighting schedule, equipment maintenance, staff awareness campaigns)
• Promoted water-saving practices and adopted water-efficient technologies
• Practiced 3R (Reduce, Reuse, Recycle) on paper management
• Initiated storage and collection of recyclables

Social Achievements

• Organised several CSR activities, including monetary donations to various organizations and donation of products to hospitals and communities during the COVID-19 pandemic
• Maintained compliance with Malaysia’s Employment & Labour laws
• No discrimination against employees based on gender, age, or ethnicity
• Provided training and development opportunities for employees

Governance Achievements

• Complied with the Malaysian Code on Corporate Governance 4th Edition (MCCG) 2021
• Established a Corporate Sustainability Committee (CSC) to oversee sustainability matters
• Implemented policies and procedures for anti-corruption, bribery, whistle-blowing, and data protection
• Attained ISO 14001:2015 certification (Environmental Management System)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and related movement restrictions impacting sales demand
• Competition from existing and new competitors
• Fluctuations in foreign exchange rates
• Rising costs of labor and raw materials

Mitigation Strategies

• Implemented strict safety measures and SOPs, 100% employee vaccination
• Provided self-test kits to employees
• Prudent financial management and efficient operating procedures
• Continuous improvement of products through investment in market research and product development
• Cost optimization initiatives
• Expansion into e-commerce platform

Supply Chain Management

Responsible Procurement

• Incorporation of sustainability-related criteria in assessing suppliers’ business practices
• Surveys sent to selected suppliers to affirm their commitment towards ESG

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001:2015

Third-party Assurance: External assurance for the past four years

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 8
• SDG 12
• SDG 13
• SDG 16

The Group's initiatives contribute to these SDGs through workplace safety, employee training, job creation, sustainable production, climate change action, and ethical business practices.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented energy-saving measures in the head office (lighting schedule, equipment maintenance, staff awareness campaigns)
• Promoted water-saving practices (adjusting water pressure, leak detection and repair)
• Implemented 3R (Reduce, Reuse, Recycle) paper management practices
• Initiated storage and collection of recyclables

Social Achievements

• Provided various training and development programs for employees (e.g., brand training, product knowledge training, store management training, sales promotion strategy training, business negotiation skills training, safety training, first aid training, chemical management training, internal auditor training)
• Made monetary donations to various organizations (charities, sports activities, religious establishments)
• Maintained a safe and healthy work environment for employees (complying with Malaysia’s Employment & Labour laws, no discrimination against employees, providing COVID-19 test kits)

Governance Achievements

• Established a Corporate Sustainability Committee (CSC) to oversee sustainability matters
• Complied with the Malaysian Code on Corporate Governance (MCCG)
• Implemented policies and procedures for anti-corruption, bribery, whistle-blowing, and personal data protection
• Established a Boardroom Diversity Policy

Climate Goals & Targets

Environmental Challenges

• Increased prices of raw materials due to the Russia-Ukraine war and global supply chain disruptions
• Looming recession and political hegemony
• Competition from existing and new competitors

Mitigation Strategies

• Pursued business and operational strategies towards creating financial and non-financial values
• Focused on value engineering to manage cost and ensure cost optimisation
• Invested in handkerchief tissue production line to reduce import costs
• Continuously reinvesting in technology and machinery to enhance efficiency and capacity
• Prioritised efforts on expanding market reach of disposable fibre-based products through e-commerce

Supply Chain Management

Responsible Procurement

• Incorporating sustainability-related criteria in assessing suppliers’ business practices
• Sending out surveys to selected suppliers to understand their commitment towards ESG

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001:2015

Third-party Assurance: External assurance provider for past years

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 12
• SDG 16

The Group commits to support these SDGs directly and/or indirectly through initiatives such as creating a safe workplace, promoting healthy living among employees, providing job opportunities and training programs, producing environment-friendly products, and placing ethics and integrity at the center of business operations.

Environmental Metrics

ESG Focus Areas

• Operational Excellence
• Responsible Supply Chain
• Empowering Our People and the Community
• Caring for the Environment

Environmental Achievements

• Reduced GHG emissions for Scope 1 (Carbon Emission) and Scope 2 (Electricity) in 2023
• Reduced energy consumption in 2023
• Reduced water consumption by 2% in 2023 compared to 2022

Social Achievements

• Zero substantiated complaints concerning human rights violations in 2023
• Implemented stricter safety measures after 2 incidents in 2023 (machine-related hand injury and forklift incident)
• Donated hygiene consumable products to local organisations for disaster relief

Governance Achievements

• Zero confirmed corruption incidents in 2023
• Zero substantiated complaints concerning breaches in customer privacy or data loss in 2023
• Established a long-term incentive plan (LTIP) in 2024

Climate Goals & Targets

Environmental Challenges

• Unfavorable product mix and increased imported material costs from disposable fibre-based products segment
• Subdued demand from international and domestic markets due to consumer-conscious spending sentiments
• Competition risks

Mitigation Strategies

• Value engineering to manage costs
• Marketing and promotional activities to stimulate demand
• Stringent quality assurance procedures and investment in market research and product development

Supply Chain Management

Responsible Procurement

• Ethical procurement practices
• Incorporating sustainability-related criteria in assessing suppliers’ business practices

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Harnessing renewable energy

Reporting Standards

Frameworks Used: Bursa Malaysia’s Main Market Listing Requirements, Bursa Malaysia’s Sustainability Reporting Guide (3rd Edition), GRI Standards, TCFD Recommendations, SASB Standards, ISSB Standards

Certifications: ISO 9001:2015, ISO 14001:2015

Third-party Assurance: Smart Focus Group (limited assurance)

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 16

The report details how various initiatives contribute to these goals.