Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Stewardship
• Sustainable Supply Chain Practices
• Human Capital Investment
• Business Development & Strategic Partnerships/Collaborations
• Corporate Governance & Ethical Behaviour
• Safe & Conducive Workplace
• Fair Employment Practices
• Customer Satisfaction
• Environmental Management
• Community Development

Environmental Achievements

• Installed new and energy-efficient equipment and upgraded old systems to reduce electricity consumption
• Replaced existing lighting to LEDs and installed motion sensors
• Installed transparent roof sheets to allow sunlight
• Implemented waste disposal methods where wastes produced are segregated, properly packaged, labelled, stored separately at designated areas and safely disposed
• Source and recycle aluminium products such as scrap for PMBT’s production input
• Implemented a buyback option for aluminium formworks from our customers
• Replaced wooden pallets for reusable aluminium pallets
• Proposed low coated glass to customers for energy saving within our buildings

Social Achievements

• Conducted several occupational and safety programmes throughout the year and continuously improved on equipment safety measures
• Conducted several in-house trainings annually to equip our employees with better skills and maximise their potential
• Managed career development programmes and nurtured talent
• Organised activities to promote staff health and well-being, such as on-site health screening, leisure & sporting activities and recreational activities
• Offered contact employments for retirees
• Organised Blood Donation Campaigns
• Encouraged employee-driven environmental initiatives

Governance Achievements

• Adopted and implemented a Code of Conduct for Directors, Management and officers of the Group as well as Code of Ethics for the Board
• Adopted a Whistle-Blowing Policy
• Established processes to monitor and report on HSE-related performance
• Conducted annual trainings on local regulations and customs including taxation, Updates of Bursa Securities listing requirements, Transitioning from GST to SST and continuous update of Sales and Services Tax

Climate Goals & Targets

Environmental Challenges

• Decreased revenue mainly from the Construction and Fabrication segment as resources were utilized to complete the construction of the metallic silicon plant
• Rising production cost
• Foreign exchange risk
• Trade war between United States and China
• Global growth adversely affected by international trade protectionism and the tightening of access to finance
• Volatility in the commodity prices and the foreign currency exchanges

Mitigation Strategies

• Evaluating and investing in new technologies to curb rising production cost
• Purchasing most raw materials locally and keeping stocks at an optimum level to mitigate foreign exchange risk
• Leveraging on more advanced and cost-efficient construction technology such as Aluminium System Formwork
• Commencing operation of metallic silicon division to enhance future prospects and revenue growth
• Strengthening its position and improving its efficiency to stay competitive

Supply Chain Management

Supplier Audits: Monthly assessments based on stock receipts, delivery frequency, and supplier corrective action requests

Responsible Procurement

• Sourcing locally
• Green procurement
• Fair dealings
• Vendor Code of Conduct outlining legal compliance, anti-corruption, human rights, health and safety, and environmental management requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide 2nd Edition

Certifications: ISO 9001:2005, SIRIM certifications for portable aluminium ladder, prefabricated mobile access and working tower, portable fiberglass ladder, and mobile ladders with platform, Australian certified aluminium truck tray

UN Sustainable Development Goals

• Goal 3: Good Health & Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Identified SDGs relevant to PMBT’s business activities and sustainability efforts, charting out fields of actions and identifying strategic initiatives aligned with the SDGs and the Mid-Term Review of the Eleventh Malaysia Plan

Sustainable Products & Innovation

• Aluminium Truck Body
• Aluminium Modular Balustrade System
• Curtain Wall System
• Aluminium Gate
• Scaffold Tower
• Reusable Aluminium Formwork

Environmental Metrics

ESG Focus Areas

• Delivering Value Through Innovation
• Driving Environmental Consciousness
• Developing Capabilities & Opportunities

Environmental Achievements

• 94% of materials procured are sourced locally
• Reduced product non-conformity from investments in training programmes, reducing fabrication errors

Social Achievements

• Decrease in turnover rates due to increase in employee satisfaction from investments in professional growth
• Increased local hires to support the nation’s economic growth
• Decrease in customer complaints due to an increase in production efforts to review and improve internal processes, as well as close management from the QA&QC department in ensuring there was an increase in the number of inspections
• Zero cases of fatalities, lost time injuries (LTI), medical aid or dangerous occurrences for the past three (3) years
• Zero cases of non-compliance nor ethical breaches reported for the past three (3) years
• Zero cases of data breaches for the past three (3) years

Governance Achievements

• Adopted an Anti-bribery and Anti-Corruption Policy
• Implemented a Whistle-Blowing Policy
• Developed a Diversity Policy

Climate Goals & Targets

Environmental Challenges

• Volatility of foreign exchange rates (especially USD) and elevated logistics costs
• COVID-19 pandemic causing disruptions in supply chains and business operations
• Higher operating costs

Mitigation Strategies

• Entered into long-term forward exchange contracts to hedge export sales proceeds and making payment for raw materials in the same foreign currency as the sales proceeds as a natural hedge mechanism
• Evaluating and investing in new technologies and machineries to improve efficiency and productivity
• Utilising more electricity at the metallic silicon plant to make up for time loss in production
• Increasing employee productivity levels by offering incentives and over-time (OT) pay to achieve daily targets
• Implementing effective training to maintain and cultivate a safe working environment
• Complying with government measures to curb the spread of COVID-19 (temperature scanning, contact tracing, sanitisation, social distancing, mask issuance, swab tests)

Supply Chain Management

Supplier Audits: Supplier pre-appointment evaluation and site visits for supplier inspection

Responsible Procurement

• Procurement Guidelines
• Vendor Code of Conduct
• Purchase Contract & Agreements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Powering production plants with Sarawak’s affordable and renewable hydropower developments

Reporting Standards

Frameworks Used: GRI Standards, FTSE4Good Criteria, UN SDGs

Certifications: ISO 9001:2015, OHSAS 18001:2007, MS 1722:2011, ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Reusable Aluminium Formwork
• Aluminium Truck Body
• Aluminium Gate
• Aluminium Ladder
• Aluminium Modular & Balustrade System
• Scaffold Tower

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Delivering Value Through Innovation
• Driving Environmental Consciousness
• Developing Capabilities and Opportunities

Environmental Achievements

• Installation of energy efficient equipment and machinery, LED lighting and energy efficient bulbs, and installation of motion sensor timers
• Transparent roof sheets were placed to allow natural light into the Group’s offices

Social Achievements

• Increase in local hires to support the nation’s economic growth
• Decrease in turnover rates due to increase in employee satisfaction from investments in professional growth

Governance Achievements

• Adoption and implementation of a Code of Conduct for Directors, Management and employees of the Group as well as Code of Ethics for the Board
• Adoption of an Anti-bribery and Anti-corruption Policy

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic hindering data collection efforts and business operations
• Fluctuations in foreign currency rates
• Fluctuations in raw material prices
• Supply chain disruptions and higher global commodity prices due to the Russian invasion of Ukraine
• Uncertainty surrounding energy costs and semiconductor supply affecting the market dynamics of the silicon metal industry

Mitigation Strategies

• Entering into long term forward exchange contracts to hedge its export sale proceeds
• Making payment for raw materials in the same foreign currency as the sale proceeds
• Strengthening and further developing its customer network
• Ensuring security of supply at all times to minimise the risk of disruptions to output levels
• Strategically pursuing advantageous long term supply agreements with established vendors

Supply Chain Management

Responsible Procurement

• Procurement Guidelines
• Vendor Code of Conduct
• Purchase Contract & Agreements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, FTSE4Good Bursa Malaysia Index (FTSE4Good) Criteria, United Nations Sustainable Development Goals (SDG)

Certifications: ISO 9001:2015, SIRIM BS EN 131-2:1993, SIRIM BS 2037:1994, SIRIM BS EN 1004:2004, SIRIM BS EN 131-7:2013, Australian Certified

Sustainable Products & Innovation

• Reusable aluminium formwork
• Aluminium ladder
• Aluminium scaffold tower

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Sustainability
• Employee Well-being
• Community Engagement
• Corporate Governance

Environmental Achievements

• Installed solar panels on factory roofs to generate solar energy for own consumption.
• Reduced fuel consumption due to downtime for maintenance work (FY2022).

Social Achievements

• Organised various volunteer programmes, increasing the number of beneficiaries to 670 in FY2022.
• Zero substantiated complaints reported in FY2022 relating to discrimination and child labour.
• 100% of managerial, executive, non-executive and foreign workers received anti-corruption training in the last three financial years.

Governance Achievements

• Adopted a Directors’ Fit and Proper Policy in May 2022.
• Implemented robust policies and structures to set expectations for personnel and stakeholders regarding ethical behaviour and anti-corruption.
• Recorded 0 cases of non-compliance or ethical breaches for the past three years (FY2020-FY2022).

Climate Goals & Targets

Environmental Challenges

• Softening of metallic silicon prices.
• Higher raw material and operational costs.
• Fluctuation in aluminium prices in the first half of the year.
• Volatility in LME and US Dollars.
• Global economic uncertainty due to the COVID-19 pandemic, Russia's invasion of Ukraine, inflation, energy crisis, and supply chain disruptions.

Mitigation Strategies

• Entered into long-term forward exchange contracts to hedge export sale proceeds and raw material payments.
• Focus on environmental, social, and governance (ESG) initiatives.
• Plant expansion to reduce costs and increase operational efficiency.
• Automation of certain production processes to address labour market tightness.
• Implementing strategies to address customer complaints (e.g., safety information, loading checklists).

Supply Chain Management

Supplier Audits: Annual review of Vendor Code of Conduct; supplier pre-appointment evaluation and inspection visits; monitoring of raw materials quality and delivery times.

Responsible Procurement

• Procurement Guidelines
• Supplier Code of Conduct
• Purchase contracts and agreements
• Prioritising local suppliers (94% of materials sourced locally in FY2022)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Potential increase in demand for non-Chinese metallic silicon by the Western world.

Reporting Standards

Frameworks Used: GRI Standards, FTSE4Good Bursa Malaysia Index Criteria, United Nations Sustainable Development Goals (SDG)

Certifications: ISO 9001:2015 (Everlast Aluminium, PMB Silicon, PMB Facade Technology), SIRIM BS 2037:1994, SIRIM BS EN 131-2:1993, SIRIM BS EN 1004:2004, SIRIM BS EN 131-7:2013, AS/NZS 1170.1 – 2002 (Products)

Sustainable Products & Innovation

• Reusable aluminium formwork
• Metallic silicon produced using hydroelectric energy

Awards & Recognition

• Bronze medal from Ecovadis (PMB Silicon)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Occupational Health & Safety
• Supply Chain Sustainability
• Corporate Governance
• Ethical Behaviour
• Community Development
• Employee Well-being

Environmental Achievements

• PMB Silicon Sdn. Bhd. attained ISO 14001:2015 Environmental Management System and ISO 45001:2018 Occupational Health & Safety Management System.
• Increased solar energy consumption to 4381.03 GJ in FY2023.
• Reduced average noise level monitored at PMB Silicon plant.

Social Achievements

• Zero work-related fatalities in FY2023.
• Zero substantiated complaints concerning human rights violations in FY2023.
• Zero cases of data breaches between FY2021 and FY2023.
• Invested RM18,769 in CSR programs benefiting 1835 individuals.
• 305 employees participated in OHS-related training programs.

Governance Achievements

• Established a Risk Management Committee.
• Adopted a Conflict of Interest Policy.
• Maintained zero incidents of corruption in FY2023.

Climate Goals & Targets

Environmental Challenges

• Slowdown in business volumes due to lower metallic silicon prices and slower progress on construction projects.
• Softening of metallic silicon prices coupled with higher raw material and operational costs.
• Challenging market conditions in 2024 with low demand growth from the automotive and construction sectors.

Mitigation Strategies

• Expansion of metallic silicon plant (Phase 3 expected to commence production by Q3 2024).
• Long-term forward exchange contracts to hedge sale proceeds and raw material payments.
• Efficient management of aluminium stock holding period.
• Continued dedication to ESG principles and achieving net-zero emissions by 2050.
• Strategic implementation of TCFD recommendations.

Supply Chain Management

Responsible Procurement

• Procurement Guidelines
• Supplier Code of Conduct
• Purchase Contract & Agreements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, FTSE4Good Bursa Malaysia Index Criteria, UN Sustainable Development Goals, TCFD guidelines

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, PASMA membership

Third-party Assurance: KPMG PLT (limited assurance on selected data)

Sustainable Products & Innovation

• Metallic silicon produced using hydroelectric energy.
• Reusable aluminium formwork.
• Curtain wall system facilitating energy savings.

Awards & Recognition

• Bronze medal from Ecovadis (2022 and 2023)