Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility

Environmental Achievements

• Upgrading of Biogas power plant capacity from 3.0MWh to 3.8MWh
• Zero discharge to the river as the final discharge from the biogas plant is released through a system of drip irrigation for land application

Social Achievements

• Aided underprivileged Filipino children in Sabah via contribution to the Alternate learning centre (ALC).
• Contributed RM4 million to establish Malaysia’s first Parkinson’s and Movement Disorders Centre operating in University of Malaya
• Working with the Borneo Child Aid Society, Sabah (HUMANA) in Sandakan to provide basic education and care for children of foreign plantation workers
• Constructed a hostel that can accommodate 40 to 50 students on a “gotong royong” basis with the local community in Kota Marudu, Sabah
• Built a new learning centre for the children of foreign plantation workers in Beaufort, Sabah
• Contributed RM200,000 to Yayasan Orang Asli Semenanjung Malaysia to support their educational programme

Governance Achievements

• Full compliance with principles and best practices of Malaysian Code on Corporate Governance 2012
• Established four Committees of Directors to assist in the performance of certain duties of the Board

Climate Goals & Targets

Environmental Challenges

• El Niño phenomenon adversely affected the production of FFB
• Decrease in FFB production by 14%
• Lower average yield per hectare
• Increase in production costs
• Fluctuating prices
• Manpower shortages
• Unpredictable weather conditions

Mitigation Strategies

• Improve operating efficiency and productivity to maintain a low operating cost
• Enhance human capital development by providing comprehensive training to employees
• Mechanisation for key processes in the estates, including harvesting, in-field collection and crop evacuation
• Improve operational efficiencies to mitigate the effect of rising production cost through enhanced mechanization, implementation of competitive harvesting rates, effective nutrient management, and introduction of better planting material
• Improve the productivity and operating efficiency of the 12MW Biomass Power Plant

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• El Niño dry weather

Reporting Standards

Frameworks Used: Malaysian Code on Corporate Governance 2012

Awards & Recognition

• The BrandLaureate BestBrands Award 2015-2016

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Regulatory compliance and Business Ethics
• Sustainability Certification
• Stakeholder Engagement
• Water Management
• Energy
• Greenhouse Gas (GHG) Emission
• Labour Relations and Human rights
• Occupational Safety and Health
• Employee Retention & Engagement
• Community Care and CSR initiatives

Environmental Achievements

• Prolific Yield Oil Mill achieved MSPO status on 28 Feb 2019
• Approximately 3,000 hectares of the Group’s plantations achieved MSPO status as of Feb 2020
• Milling water consumption was 2.08 m³/mt (2018: 2.35 m³/mt) of FFB process
• Almost 94% (2018:97%) of the energy consumption in our oil mill came from renewable sources
• GHG reduction of approximately 221,000 tonnes of CO₂ through Biogas and Biomass Power Plants
• Zero Burning Policy for all new planting, re-planting and other related development

Social Achievements

• Various CSR activities undertaken through Dato’ Seri Mah Pooi Soo Benevolent Fund
• Working with Borneo Child Aid Society to provide basic education and care for children of foreign plantation workers
• Built a new learning centre for children of foreign plantation workers in Beaufort, Sabah
• Zero fatality at the workplace for the whole Group for the past 12 months
• LTIFR is at 0.42

Governance Achievements

• Commitment to ensuring that the highest standards of Corporate Governance are practised
• Working towards ensuring full compliance with principles and best practices of Malaysian Code on Corporate Governance
• Established a sustainability governance structure
• Formal risk management framework established
• Internal audit function outsourced to Crowe Consultants Sdn. Bhd.

Climate Goals & Targets

Environmental Challenges

• Decreases in CPO, PK and FFB average selling prices by 7%, 30% and 12% respectively
• Decrease in CPO, PK and FFB Sales by 4%, 9% and 26% respectively
• Decrease in FFB production by 2%
• Fluctuating prices, increasing costs, manpower shortages and unpredictable weather conditions
• Shortage of foreign labour in the palm oil industry due to strict entry rules into Malaysia
• Difficulty in attracting and retaining younger employees due to the remote location of the plantation

Mitigation Strategies

• Improve FFB production through better labour management and mechanisation
• Maximise power output
• Improve operational efficiencies to mitigate the effects of rising production costs through enhanced mechanization
• Implementation of competitive harvesting rates, effective nutrient management, and introduction of better planting materials
• Comprehensive employee benefits, competitive remuneration, training and personal development, and a conducive working culture
• Mechanisation to mitigate the risk of labour shortages

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Promoting responsible practices among business partners

Climate-Related Risks & Opportunities

Physical Risks

• Unpredictable weather conditions

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Main Market Listing Requirements of Bursa Malaysia Securities Berhad

Certifications: MSPO, Code of Good Agriculture Practice, Code of Good Milling Practice

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Regulatory compliance and Business Ethics
• Sustainability Certification
• Stakeholder Engagement
• Water Management
• Energy
• Greenhouse Gas (GHG) Emission
• Labour Relations and Human rights
• Occupational Safety and Health
• Employee Retention & Engagement
• Community Care and CSR initiatives

Environmental Achievements

• MSPO certification completed for all plantations and mill
• Zero discharge policy for POME implemented through biogas plant and land irrigation
• Reduced milling water consumption to 2.01 m3/mt of FFB processed (2019: 2.08 m3/mt)
• Integrated Pest Management System implemented, reducing pesticide use
• Zero Burning Policy maintained for new plantings and re-plantings
• 162 hectares of land declared as Conservation and HCV areas

Social Achievements

• Compliance with Minimum Wages Order 2018
• Comprehensive employee benefits and competitive remuneration provided
• Training programs conducted on safety, chemical handling, and other topics
• Zero fatalities at the workplace for the past 12 months
• Contribution to local community through Dato’ Seri Mah Pooi Soo Benevolent Fund
• Support for Borneo Child Aid Society, Sabah (Humana) education center

Governance Achievements

• Compliance with Malaysian Code on Corporate Governance 2017
• Establishment of Audit Committee, Nomination Committee, and Remuneration Committee
• Formalized Code of Conduct and Ethics, Whistleblowing Policy, and other corporate governance policies
• Independent Directors maintained their independence

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disrupting operations, particularly in the power segment
• Shortage of foreign labour in the palm oil industry
• Difficulty attracting and retaining younger employees due to remote location
• Lower processing activity of oil mill reducing feedstock for biogas plant
• Delayed maintenance and repair of power plants due to MPOB average CPO extraction rate

Mitigation Strategies

• Strict Standard Operating Procedures implemented to minimize COVID-19 cases
• Comprehensive employee benefits, competitive remuneration, training, and conducive working culture
• Continuous efforts to increase efficiency and productivity, exploring mechanization
• Improved labour management and mechanisation to improve FFB production

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Promoting responsible practices among business partners

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Main Market Listing Requirements of Bursa Malaysia Securities Berhad

Certifications: MSPO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Severe labor shortages in the oil palm industry due to lockdowns and foreign workers' recruitment restrictions.
• Delayed delivery of essential spare parts and provision of engineering support services during the MCO period, affecting power plant performance.

Mitigation Strategies

• The Group is monitoring and assessing the impact of COVID-19 and adhering to preventive and control measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Regulatory compliance and Business Ethics
• Sustainability Certification
• Stakeholder Engagement
• Water Management
• Energy
• Greenhouse Gas (GHG) Emission
• Labour Relations and Human rights
• Occupational Safety and Health
• Employee Retention & Engagement
• Community Care and CSR initiatives

Environmental Achievements

• All plantations and the Mill have completed MSPO certification.
• Successful completion of an annual surveillance audit as mandated by MSPO.
• Reduction of approximately 78,800 MT of CO2 in 2022 (compared to 80,800 in 2021).
• Oil mill recycles POME residual solids into organic fertilizers.
• Strict Zero Burning Policy enforced for all new plantings, re-plantings, and other related developments.

Social Achievements

• Implementation of an exercise to ensure that all employees are paid at least RM1,500 per month.
• Comprehensive range of amenities at operating units (housing, water and electricity supply, healthcare, places of worship, childcare facilities, and other recreational amenities).
• Investment in employee personal and professional development by providing training opportunities and personal growth programmes.
• Partnership with the Borneo Child Aid Society, Sabah (Humana) to provide basic education and care to the children of foreign plantation workers.

Governance Achievements

• Commitment to ensuring that the highest standards of Corporate Governance are practiced throughout the Group.
• Working towards ensuring full compliance with principles and best practices of Malaysian Code on Corporate Governance (“MCCG”),
• Establishment of a Sustainability Governance structure.
• Adoption of the Directors’ Fit and Proper Policy.

Climate Goals & Targets

Environmental Challenges

• 9% decrease in Fresh Fruit Bunch (FFB) production.
• 28% increase in the cost of FFB production due to rising costs of fertilizer and labor.
• 13% decrease in power exports and a 24% decrease in the sales volume of EFB oil.
• Market uncertainties in 2023 due to mixed supply and demand dynamics in the palm oil industry.
• Decline in palm oil prices.
• Increasing production costs and foreign labour shortages.

Mitigation Strategies

• Commitment to improving operating efficiency via mechanisation and better labour management.
• Continued focus on the maturity profile of oil palm trees.
• Exploring new methods of mechanisation.
• Pursuing ongoing initiatives to achieve greater mechanization and yield improvements.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Main Market Listing Requirements of Bursa Malaysia Securities Berhad

Certifications: MSPO

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Regulatory compliance and Business Ethics
• Anti-Corruption
• Sustainability Certification
• Stakeholder Engagement
• Supply Chain Management
• Cybersecurity & Data Protection
• Water Management
• Energy
• Greenhouse Gas (GHG) Emission
• Training and Education
• Labour Relations and Human rights
• Occupational Safety and Health
• Employee Retention & Engagement
• Community Care and CSR initiatives

Environmental Achievements

• Reduced GHG Emission by approximately 92,074 metric tons of CO2 in 2023
• Achieved 92% renewable energy use at the oil mill in 2023 (up from 83% in 2022)
• Zero Burning Policy for all new plantings, re-plantings, and associated developments

Social Achievements

• Implemented an exercise to ensure that all employees are paid at least RM1,500 per month
• Provided a comprehensive range of amenities at operating units (housing, water, electricity, healthcare, places of worship, childcare, recreational amenities)
• Invested in employee personal and professional development through training opportunities and personal growth programmes
• Established a new learning centre in Beaufort, Sabah, for plantation workers’ children
• Maintained Creche-Ayah on estates and mill, allocating RM386,000 in 2023

Governance Achievements

• Established a Sustainability Governance structure with a Sustainability Committee reporting to the Group General Manager and the Board of Directors
• Formalized a set of ethical standards through a Code of Conduct and Ethics
• Established policies and procedures (Board Charter, Code of Conduct and Ethics, Shareholder’s Rights, Whistleblowing Policy, Sustainability Policy, Anti-Bribery and Corruption Policy, Diversity Policy, Board of Directors’ Fit and Proper Policy, Conflict Of Interest Policy)
• Adopted a Conflict-of-Interest Policy in accordance with the updated regulations of the MMLR

Climate Goals & Targets

Environmental Challenges

• 15% decrease in revenue (RM52.41 million) due to reduced sales across various segments and downturn in Palm Product prices
• 39% decrease in profit before tax (RM19.76 million) due to drop in average selling prices of CPO, PK, FFB, and EFB oil
• Significant decline in plantation segment profit (51%) due to decrease in average FFB selling price and increase in FFB production cost
• Decline in power plant segment profit (16%) due to decrease in average selling price of EFB oil
• Shortage of skilled labor, particularly experienced harvesters, compounded with heavy rainfall and floods impacting plantation productivity
• Lower Mill OER compared to Sabah average due to increased reliance on external FFB sources from smallholders with challenges in maintaining FFB quality
• Intense competition for FFB supply in 2023, driven by labor shortages in Sandakan

Mitigation Strategies

• Improving operating efficiency via mechanisation and better labour management
• Optimizing costs and exploring new methods of mechanization
• Managing rising production costs through strategic planning and cost-saving measures
• Addressing foreign labour shortages through alternative solutions and fostering a more local workforce
• Investing in mechanizing harvesting and evacuation operations (power barrows, mini tractors, mechanical weed sprayers)
• Initiating targeted recruitment efforts, including wage adjustments and training programs
• Implementing a balanced grading system at the mill to prioritize both FFB quality and quantity

Supply Chain Management

Responsible Procurement

• 100% local procurement whenever possible

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall and floods

Reporting Standards

Frameworks Used: Main Market Listing Requirements of Bursa Malaysia Securities Berhad

Certifications: MSPO