5E Resources Limited
Climate Impact & Sustainability Data (2018-12 to 2021-09)
Reporting Period: 2018-12 to 2021-09
Environmental Metrics
Waste Generated:49,757 tons/year (FY2018), 48,906 tons/year (FY2019), 34,715 tons/year (FY2020), 27,395 tons/year (9M2021)
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced waste disposal costs through processing waste residue into alternative products for the cement industry (planned)
Social Achievements
- Established strong customer relationships through quality audits and tailored services
- Experienced key executives with more than 20 years of relevant experience each
Governance Achievements
- Good compliance record and working relationships with local regulatory authorities
Climate Goals & Targets
Long-term Goals:
- Expand business through acquisitions, joint ventures, or strategic alliances
Medium-term Goals:
- Expand processing capacity for high organic content waste
- Reduce operating costs by processing waste residue into alternative products
Short-term Goals:
- Acquire an off-site storage plant in Central Peninsular Malaysia
Environmental Challenges
- Failure to obtain or maintain required approvals, permits, licenses, and certificates
- Monthly quota limits on waste collection and processing
- Customer concentration in the manufacturing industry
- Geographical concentration of operations in Johor, Malaysia
- Specific treatment processes limited to certain plants
- Significant downtime at waste treatment plants for repair and maintenance
- Dependence on foreign workers
- Licenses held by senior management members or employees
- Lack of long-term agreements with customers
- Dependence on third parties for raw materials and logistics
- Potential for claims from customers or premature service termination
- Rapidly changing technologies
- Environmental liability
- Industrial risks and occupational hazards
- Spread of diseases or outbreaks of contagious diseases
- Insufficient insurance coverage
- Potential legal proceedings
- Uncertain success of future plans
- Risks associated with expanding business outside Johor
- Increased depreciation, operating, and maintenance costs from capital investment
- Impact of weather conditions and natural disasters
- Compliance with anti-corruption laws
- Need for further financing
- Operational flexibility limited by loan covenants
- Dependence on Malaysian government's environmental policies
- Increasing compliance costs
- Maintaining competitiveness
- Impact of Malaysian economic, political, and social conditions
- Currency conversion and exchange rate risk
- Foreign exchange legislation and regulations in Malaysia
Mitigation Strategies
- Ongoing preventive maintenance on waste treatment plants and machineries
- Developing alternative sourcing strategies (planned)
- Ongoing improvements to processing technology and R&D endeavors
- Strengthening geographical coverage beyond Johor (planned)
- Broadening customer base to include underserved market (planned)
- Expanding processing capacity for high organic content waste (planned)
- Investing in facilities to reduce operating costs (planned)
- Expanding business through acquisitions, joint ventures, or strategic alliances (planned)
- Strict internal procedures to ensure compliance with anti-corruption laws and regulations
- Considering equity, debt, or bank borrowings for additional funding
- Implementing safety measures to mitigate industrial risks and occupational hazards
- Employing various measures to mitigate the impact of the COVID-19 pandemic
Supply Chain Management
Responsible Procurement
- Purchase orders
Climate-Related Risks & Opportunities
Physical Risks
- Flooding
Sustainable Products & Innovation
- Recycled chemicals, recycled drum/tank, recycled oil, recycled alkaline, recovered precious metals