Climate Change Data

Frontken Corporation

Climate Impact & Sustainability Data (2013, 2016, 2020-2022, 2021)

Reporting Period: 2013

Environmental Metrics

ESG Focus Areas

  • Health and Safety
  • Workplace Diversity
  • Ethical Conduct and Legal Compliance
  • Environment

Environmental Achievements

  • Reduced energy, fuel, water and materials usage to minimize environmental impact
  • Explored energy-saving lights and machines, minimized water usage while maintaining sanitation
  • Reduced fuel usage and emissions through training and delivery optimization
  • Worked with customers to develop functional solutions addressing green issues and prolonging parts lifespan through recycling and refurbishing

Social Achievements

  • Maintained a diverse employee population in terms of age, gender, race, and religion
  • Implemented policies and processes to cultivate respect and harmony in the workplace
  • Focused on attracting and retaining talents with diverse backgrounds
  • Built partnerships with communities through projects
  • Launched a whistle-blowing policy in 2011 to strengthen corporate governance

Governance Achievements

  • Established a Code of Conduct for Directors and employees
  • Implemented Whistle Blowing Policies and Procedures
  • Established an Enterprise Risk Management framework
  • Formalized risk management policies and guidelines
  • Outsourcing of internal audit function to an independent professional firm

Climate Goals & Targets

Long-term Goals:
  • Continue to look for business opportunities that synergize with current activities
Medium-term Goals:
  • Grow business in focused areas and enhance services to achieve customer satisfaction
  • Maintain discipline in cost management and proactively make necessary adjustments to match demand
Short-term Goals:
  • Focus on quality of services and efficiencies to maintain competitiveness

Environmental Challenges

  • Challenging domestic and foreign market conditions
  • Turbulence in domestic and foreign markets affecting business
  • Slowdown and deferment of projects by customers due to economic uncertainties
  • Pressure from customers for price reduction
  • Rising costs of manpower, currency exchange fluctuations, materials, equipment maintenance, transport, and travel
  • Staff retention and hiring of foreign labor challenges
  • Risk of reduction or termination of business due to customer mergers and acquisitions
  • High dependence on single customers in certain business areas
Mitigation Strategies
  • Rescaling loss-making activities and improving profitable businesses
  • Focusing on strengths to overcome challenges by enhancing services, increasing efficiencies, and reducing costs
  • Consolidating business and prioritizing efforts on revenue and bottom line
  • Improving cost base, enhancing cross-selling for operational synergies, implementing best practice margin management and sourcing strategy
  • Exercising prudence in liquidity management and disciplined strategy execution
  • Improving productivities and re-looking at service offerings
  • Merging or removing weak, low-margin, and low-growth potential areas
  • Getting information early from end-users and paying attention to the scope of work
  • Investing in modern and efficient technology to improve efficiency and reduce manpower
  • Diversifying customer base regionally

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, BS OHSAS 18001:2007

Certifications: ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007

Reporting Period: 2016

Environmental Metrics

ESG Focus Areas

  • Corporate Governance
  • Sustainability

Governance Achievements

  • Established an Enterprise Risk Management framework.
  • Implemented a Code of Conduct for Directors and employees.
  • Formalized Whistle Blowing Policies and Procedures.
  • Deliberated on the need to formalize a Corporate Sustainability Policy.

Climate Goals & Targets

Environmental Challenges

  • The dual role of the Chairman as Managing Director.
Mitigation Strategies
  • The Board believes there is no concentration of power and sufficient Independent Non-Executive Directors provide a check and balance.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MCCG 2012 (Malaysian Code on Corporate Governance 2012)

Reporting Period: 2020-2022

Environmental Metrics

Total Carbon Emissions:63,722 tCO2e/year (2022)
Scope 1 Emissions:1,671 tCO2e/year (2022)
Scope 2 Emissions:10,432 tCO2e/year (2022)
Scope 3 Emissions:51,619 tCO2e/year (2022)
Renewable Energy Share:Not disclosed
Total Energy Consumption:21,218 MWh/year (2022)
Water Consumption:265,480 m3/year (2022)
Waste Generated:926 tons/year (2022)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced Emissions Intensity (EI) - the amount of GHGs emitted per dollar revenue - from 3,620 kgCO2e per revenue in Million RM in 2020 to 3,231 in 2022.
  • Increased usage of environmentally friendly chemicals from 1.23 kg per part in 2020 to 1.83 kg per part in 2022.
  • Increased total waste recycled from 49,161 tonnes in 2020 to 80,583 tonnes in 2022.

Social Achievements

  • Not disclosed

Governance Achievements

  • Linked shareholders' interests and ESG achievements to executive compensation.

Climate Goals & Targets

Long-term Goals:
  • Reduce Emissions Intensity by 50% by 2050
  • Reduce water consumption per unit of production by 30% by 2050
  • Reduce waste generated in kg per unit of production by 50% by 2050
  • Increase usage of environmental friendly chemical in kg per unit of production by 50% by 2050
  • Achieve Net Zero Emissions by 2060
Medium-term Goals:
  • Reduce Emissions Intensity by 25% by 2035
  • Reduce water consumption per unit of production by 20% by 2035
  • Reduce waste generated in kg per unit of production by 20% by 2035
  • Increase usage of environmental friendly chemical in kg per unit of production by 30% by 2035
Short-term Goals:
  • Reduce Emissions Intensity by 10% by 2025
  • Reduce water consumption per unit of production by 10% by 2025
  • Reduce waste generated in kg per unit of production by 10% by 2025
  • Increase usage of environmental friendly chemical in kg per unit of production by 10% by 2025

Environmental Challenges

  • GHG emissions restriction and carbon taxes/carbon fee
  • Impact on company reputation
  • Extreme weather caused by climate change, such as flood and drought
  • Higher Natural Disaster Insurance Premium
  • Rising Temperature
Mitigation Strategies
  • Developing energy-saving and carbon reduction technologies
  • Investing in renewable energy and purchasing carbon credits
  • Improving plant energy efficiency
  • Developing alternative or renewable energy technologies
  • Driving low carbon green production
  • Increasing resilience against natural disasters
  • Implementing internal water conservation measures and using reclaimed water
  • Establishing alternative water sources

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Working with suppliers to reduce carbon embedded in consumables and equipment

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather (flood and drought)
  • Rising Temperature
Transition Risks
  • GHG emissions restriction and carbon taxes/carbon fee
  • Increased costs for renewable energy and carbon credits
Opportunities
  • Improve plant energy efficiency
  • Develop alternative or renewable energy technologies
  • Drive low carbon green production
  • Improve the reputation of the enterprise
  • Participation in carbon trading market
  • Increase resilience against natural disasters

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • 7.1
  • 8.4
  • 13.1
  • 13.3
  • 12.6
  • 12.8

Initiatives contribute to these goals by focusing on renewable energy, resource efficiency, climate resilience, education and awareness, sustainable practices, and information sharing.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:48409 tCO2e
Scope 1 Emissions:1430 tCO2e
Scope 2 Emissions:10375 tCO2e
Scope 3 Emissions:32230 tCO2e
Total Energy Consumption:21288 MWh
Water Consumption:264884 m3
Waste Generated:67847 tons

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced Emissions Intensity (EI) - the amount of GHGs emitted per dollar revenue - from 3,620 kgCO2e per revenue in Million RM in 2020 to 3,176 kgCO2e per revenue in Million RM in 2021.
  • Reduced GHG emissions per unit of production from 5.18 kgCO2e per part in 2020 to 4.50 kgCO2e per part in 2021.
  • Reduced water consumption per unit of production from 0.12 cubic meters per part in 2020 to 0.11 cubic meters per part in 2021.
  • Increased usage of environmentally friendly chemicals in kg per unit of production from 1.23 kg per part in 2020 to 1.49 kg per part in 2021.

Social Achievements

  • Linked shareholders' interests and ESG achievements to executive compensation through employee restricted stock awards.

Governance Achievements

  • Board of Directors oversees climate change governance and management framework.
  • Sustainability Steering Committee formulates mid-to-long-term climate change management strategies.

Climate Goals & Targets

Long-term Goals:
  • Reduce 50% Emissions Intensity by 2050 (Baseline data FY2020)
  • Reduce 30% water consumption per unit of production by 2050 (Baseline data FY2019)
  • Reduce 50% waste generated in kg per unit of production by 2050 (Baseline data FY2019)
  • Increase usage of environmental friendly chemical in kg per unit of production by 50% by 2050 (Friendly chemical use baseline data FY2019)
Medium-term Goals:
  • Reduce 25% Emissions Intensity by 2035 (Baseline data FY2020)
  • Reduce 20% water consumption per unit of production by 2035 (Baseline data FY2019)
  • Reduce 20% waste generated in kg per unit of production by 2035 (Baseline data FY2019)
  • Increase usage of environmental friendly chemical in kg per unit of production by 30% by 2035 (Friendly chemical use baseline data FY2019)
Short-term Goals:
  • Reduce 10% Emissions Intensity by 2025 (Baseline data FY2020)
  • Reduce 10% water consumption per unit of production by 2025 (Baseline data FY2019)
  • Reduce 10% waste generated in kg per unit of production by 2025 (Baseline data FY2019)
  • Increase usage of environmental friendly chemical in kg per unit of production by 10% by 2025 (Friendly chemical use baseline data FY2019=0.97)

Environmental Challenges

  • GHG emissions restriction and carbon taxes/carbon fee
  • Impact on company reputation
  • Extreme weather caused by climate change (flood and drought)
  • Higher natural disaster insurance premiums
  • Rising temperatures
Mitigation Strategies
  • Developing energy-saving and carbon reduction technologies
  • Investing in renewable energy and carbon credits
  • Collaborating with other parties for carbon offset
  • Implementing internal water conservation measures
  • Utilizing reclaimed water and alternative water sources
  • Strengthening climate resilience
  • Implementing FCB business continuity plan and updating it regularly

Supply Chain Management

Responsible Procurement
  • Work with suppliers to reduce the carbon embedded in all consumables

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather (flood and drought)
  • Rising temperatures
Transition Risks
  • GHG emissions restriction and carbon taxes/carbon fee
  • Increased costs for renewable energy and carbon credits
Opportunities
  • Improve plant energy efficiency
  • Develop alternative or renewable energy technologies
  • Drive low carbon green production
  • Participation in carbon trading market
  • Increase resilience against natural disasters

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

  • 7.1
  • 8.4
  • 13.1
  • 13.3
  • 12.6
  • 12.8