Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Changed lightings to LED lights, improving working environment and saving on electricity bills.
• Regular maintenance of gas storage area to prevent gas leakages.

Social Achievements

• Contributed financial aid to a local government aided school.
• Organised weekly badminton sessions as part of healthy lifestyle promotion.
• Carried out 39 training sessions covering various topics for employees.

Governance Achievements

• Revised Board Charter to enhance governance practices.
• Adopted a Whistle Blower Policy.
• Enhanced TOR of the Audit Committee.

Climate Goals & Targets

Environmental Challenges

• Lower revenue from steel product and trading activity segment due to lower revenue generated from the coil processing division impacted by the change of domestic steel policy, higher production and operating expenses for the promotion of “Constructor” brand racking business.
• Higher production costs in machinery and equipment division.
• Losses due to high depreciation from the newly set up biomass division.
• Rising steel prices impacting profit margin.
• Challenges from changes to global trade policies and tepid demand arising from review of infrastructure projects by federal government.

Mitigation Strategies

• Disciplined approach towards cost management.
• Strategic partnership with Gonvarri Material Handling AS for licensing rights to manufacture and distribute steel racking solutions.
• Expansion into China and revisiting investment proposal for Africa.
• Spreading geographical reach to ensure no concentration of revenue from one country and strategising purchasing to minimise adverse impact of steel prices.

Supply Chain Management

Responsible Procurement

• Proper procedures for procurement evaluation and approval.
• Sourcing raw materials from approved vendors meeting acceptable business practices.
• Ethical conduct of officers, with limitations on gifts from vendors.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guide

Certifications: ISO 9001:2015

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Practiced factory waste management to enable effective utilization of steel material with minimal waste and proper segregation of waste material to minimize impact to the environment.
• Installed energy-efficient LED lights which have longer lifespan and are more energy efficient.
• Transitioned to galvanized steel products for racking components, making them more suitable for clientele in clean room or food environments.

Social Achievements

• Implemented a standard recruitment procedure to ensure proper identification and recruitment of new talent.
• Provided opportunities for high-potential employees to develop and progress to senior positions.
• Carried out 9 training sessions covering financial management to occupational health & safety and quality management for employees.

Governance Achievements

• Implemented Anti-Bribery & Anti-Corruption policy and Whistle Blower policy.
• Established an Audit Committee, Nominating Committee, and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Prolonged COVID-19 pandemic and frequent temporary cessation of operations.
• Global supply chain disruptions.
• Russia-Ukraine conflict disrupting market recovery and impacting commodity prices.
• Shortage of labor for the palm oil industry.
• Increase in minimum wage.

Mitigation Strategies

• Adopted new strategies, including digitalization and increased automation in production processes.
• Spread out geographical reach to ensure no concentration of revenue from one country.
• Strategized purchasing to minimize adverse impact of steel prices.
• Prioritized cost and cash flow management.
• Implemented COVID-19 SOPs and tests for all workers.

Supply Chain Management

Responsible Procurement

• Sourcing raw materials from approved vendors that meet certain acceptable business practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guide, Malaysian Code on Corporate Governance

Certifications: ISO 9001:2015

Sustainable Products & Innovation

• Patented solvent extraction plant for palm mesocarp fibre and palm kernel cake
• Galvanized steel products

Environmental Metrics

ESG Focus Areas

• GHG emission
• Energy Consumption
• Bribery and Corruption
• General and Special Waste Management
• Water Consumption
• Occupational Health & Safety
• Product Quality
• Labour Conditions & Environmental Impact in Supply Chain
• Fair Employment & Grievance Mechanisms
• Impact on Local Community
• Customer Privacy

Environmental Achievements

• Installed energy-efficient LED lights
• Advocated for energy-saving practices
• Implemented factory waste management strategies aimed at optimizing the utilization of steel material, minimizing waste, and ensuring proper segregation to reduce environmental impact
• Promoted galvanized steel products over powder-coated steel products, reducing sludge waste disposal and hazardous chemical usage

Social Achievements

• Implemented a set of procedures to assess talent for career advancement, offering our employees relevant training in soft skills and professional development to ensure their ongoing competence
• Established a Safety Committee to oversee and monitor ongoing safety and health initiatives
• Provided health and safety training with regular refresher sessions for our staff

Governance Achievements

• Implemented an Anti-Bribery & Anti-Corruption Policy
• Implemented a whistleblowing channel

Climate Goals & Targets

Environmental Challenges

• Slower economy growth both domestic and global
• High depreciation and volatility of Ringgit Malaysia
• On-going US anti-dumping investigation on Malaysia
• Escalating uncertainties in the global landscape
• Continued decline in the value of the Ringgit Malaysia
• Escalated steel raw material imports cost
• US anti-dumping policies
• Inadequate waste management
• Water scarcity
• Global warming and environmental issues

Mitigation Strategies

• Aggressive in business expansion along the value chain to deliver more value-added products and solutions to our customers, and to meet the changing market demands
• Better manage its finance cost
• Expand its material handling manufacturing capacity to cater for original equipment manufacturing (OEM) clients overseas
• Implement factory waste management strategies
• Promote water-saving habits among employees
• Implement and advocate several energy saving practices, efficient factory waste management and effective water management
• Integrate climate change strategies into our group’s business approaches and setting specific objectives to reduce our carbon footprint

Supply Chain Management

Responsible Procurement

• Emphasis on provision of transparent procurement processes
• Sustainability assessment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia’s Listing Requirements, Bursa Malaysia’s Sustainability Reporting Guide (3rd Edition)

Certifications: ISO 9001:2015

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 7
• SDG 8
• SDG 13
• SDG 16

Sustainable Products & Innovation

• Patented solvent extraction plant for palm mesocarp fiber and palm kernel cake