Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Environmental Sustainability
• Social Sustainability
• Good Corporate Governance

Environmental Achievements

• Replaced almost all light tubes in its 4 plant buildings with LED and T5 lights, resulting in substantial energy savings.
• Saved approximately 11% of total energy usage at its F&B and Traditional Herbal Supplement Manufacturing Plant with solar renewable energy.
• Ceased printing of plastic Distributorship Authority Cards, switching to E-Authority Cards.

Social Achievements

• Zhulian Marketing (M) Sdn. Bhd. received the “Human Resources Development (HRD) Awards 2022” under “HRD Corp Award SME Employer” Category.
• Zhulian Industries Sdn. Bhd. received Export Excellence Awards (“EEA”) – Most Promising Award & Certificate of Excellence.
• ZHT received Thailand Direct Selling Association Award (“TDSA Award”) for compliance of Global Code of Ethics.
• IsoProt’n Mixed Soy and Pea Protein Beverage won the Reader’s Vote Natural Drink category of the Cheewa jit Award 2022.
• Conducted 33 internal trainings to enhance awareness and provide updates on health and safety measures at workplace among 287 employees, totaling 2096.5 hours of training.

Governance Achievements

• Formalised Direct Fit & Proper Policy and made it available on the Company’s corporate website.
• Adopted a revision to the Boardroom Diversity Policy to include 2 female Directors in the Board composition.

Climate Goals & Targets

Environmental Challenges

• Reduced consumer confidence and spending due to the pandemic, weakened Ringgit, escalating costs, and weak consumer sentiments.
• Escalating costs for inputs and logistics throughout the supply chain.
• Challenges in measuring and reporting environmental impact across all subsidiaries due to diversified businesses and shared buildings.
• Pandemic risk and its impact on health & safety and supply chain.
• Credit risk from providing credit facilities to Authorised Agencies.
• Foreign exchange risk due to transactions in USD.
• Information Technology (IT) risk.
• Market risks related to penetrating additional markets.
• Regulatory challenges due to diversified businesses across Southeast Asia.

Mitigation Strategies

• Focused on cost containment and efficient resource utilisation.
• Initiated strategies to help entrepreneurs grow their businesses, strengthen product sales, increase brand awareness, and retain market position.
• Launched a series of promotions to boost sales.
• Reactivated physical marketing programmes alongside online/social media.
• Implemented stringent credit control system on Authorised Agents.
• Managed currency risk through financial forecasting, budgeting, and natural hedge mechanisms.
• Addressed IT risks through assessment and mitigation strategies.
• Developed strategies to penetrate additional markets.
• Established mechanisms to track changes in the regulatory environment to ensure compliance.

Supply Chain Management

Supplier Audits: Yearly assessments on capacity, capability, quality, and compliance.

Responsible Procurement

• Prioritising local suppliers
• Careful evaluation and assessment of suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MCCG, MMLR

Certifications: ISO 9001, ISO 22000, GMP, HACCP

Third-party Assurance: KPMG PLT

Sustainable Products & Innovation

• Water purifier
• Air purifier
• Food detoxifying device
• Environmentally friendly green home detergent products

Awards & Recognition

• Human Resources Development (HRD) Awards 2022
• Export Excellence Awards (EEA)
• Thailand Direct Selling Association Award (TDSA Award)
• Cheewa jit Award 2022
• The BrandLaureate World Halal Best Brands E-Branding Awards 2021

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Decreased water consumption by 2.1% and electricity usage by 0.3%
• Achieved a 12.35% reduction in power consumption of the manufacturing facilities by investing in solar panels
• Produced 3% less hazardous waste compared to 2022

Social Achievements

• Zhulian Industries Sdn. Bhd. was awarded the “Best Employer Award 2023” by the Employees Provident Fund (EPF) of Penang
• Zhulian (Thailand) Ltd. was honored as “Global Code of Ethics Initiative Gold Award” by Thai Direct Selling Association (TDSA)
• Contributed RM158,090.86 to the community in the form of donations and contributions in kind

Governance Achievements

• Revised business plan and Rules of Conduct to elevate ethical standards and ensure compliance
• Strengthened stakeholders engagement through field visits and regular online meetings
• Implemented a structured risk management framework

Climate Goals & Targets

Environmental Challenges

• Weakening of Ringgit and escalation in costs
• Decrease in demand due to price hikes on basic necessities and softening consumer sentiment
• Growing competition in the e-commerce sector and gig economy
• Ever-changing and stricter regulations

Mitigation Strategies

• Implemented strategies to support entrepreneurs, bolster product sales, enhance brand awareness and market position
• Maintained a steadfast commitment to financial sustainability and prudent management of costs and optimization of resources
• Continuously assess market trends, customer preferences, and emerging technologies; innovate products, improve customer experience, and enhance digital marketing
• Regularly monitor changes in local and regional regulations; established procedures to monitor the renewal of various licenses and certifications

Supply Chain Management

Supplier Audits: 80% coverage of spending on local suppliers

Responsible Procurement

• Prioritise local suppliers that can ensure sustainable sources, quality and timely deliveries with lesser environmental impact

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia's requirements on ESG

Certifications: ISO 9001, ISO 22000, GMP, HACCP

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

The Group's operations and sustainability initiatives contribute to these goals through economic empowerment, health promotion, gender equality, sustainable practices, innovation, and community engagement.

Sustainable Products & Innovation

• Energy-efficient air purifiers, water purifiers, and food detoxifiers

Awards & Recognition

• The BrandLaureate World Halal Best Brands E-Branding Awards 2021
• Best Employer Award 2023