Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Governance & Ethics
• Supply Chain Management
• Product Quality & Safety
• Environmental Stewardship
• Energy Consumption
• Waste Management
• Diversity and Equal Opportunity
• Occupational Health & Safety
• Employee Development
• Community Development

Environmental Achievements

• Paperless initiative since 2015, digitalising all processes and operations.
• Converted plastic bags to biodegradable plastics.
• E-waste recycling program since 2013, collecting 3,608 units in 2021.
• 73 retail stores registered as e-waste collection centers.

Social Achievements

• Launched in-house cookware brand "Delighto" in August 2021, garnering close to RM2 million in sales within the first five months.
• Launched new Senheng App in November 2021, offering a lifestyle ecosystem beyond consumer E&E.
• Senheng Education Assistance Program, sponsoring RM400,000 to support 20 students since 2019.
• Memorandum of Understanding with TAR UC to formalise an academia-industry collaboration and established a Senheng Scholarship with an allocation of RM5 million over 10 years.

Governance Achievements

• Maintains an integrated Governance Risk Compliance (GRC) approach.
• Adopts a zero-tolerance policy against all forms of bribery and corruption.
• Established Whistleblowing Policy.
• Adopted Anti-Bribery and Anti-Corruption Policy.

Climate Goals & Targets

Environmental Challenges

• Economic risks and impact of the COVID-19 pandemic.
• Supply risks due to reliance on various suppliers without long-term agreements.
• Evolving consumer purchasing trends.

Mitigation Strategies

• Personalised digital marketing initiatives to enhance sales conversions.
• Seamless retail model enabling online and in-store purchases.
• Strong relationships with suppliers.
• Data analytics to tailor business strategies to consumer trends.
• Expansion strategy of setting up/upgrading "Territory Champion" stores.

Supply Chain Management

Responsible Procurement

• All employees, suppliers, agents, distributors, and business associates are required to fully comply with the Group’s Anti-Bribery and Anti-Corruption Policy.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 8
• SDG 10
• SDG 13

Senheng’s pursuit of sustainability is aligned with the United Nations’ (“UN”) Sustainable Development Goals (“SDG”), which are part of the UN Member States 2030 Agenda for Sustainable Development.

Sustainable Products & Innovation

• Delighto cookware

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Collected 5,698 units of e-waste (compared to 3,293 units in 2021)
• Recycled 98 tonnes of styrofoam and item boxes (compared to 105 tonnes in 2021)

Social Achievements

• Launched Senheng Education Assistance Program (SEA) providing RM5 million over 10 years to TAR UC students
• Maintained customer NPS above 80%
• Last mile customer satisfaction survey scored above 85%

Governance Achievements

• Established a Sustainability Committee (assumed by the War Room Committee)
• Adopted Guidelines on Fit and Proper Person
• Adopted Whistle-Blowing Policies and Procedures
• Adopted Anti-Bribery and Corruption Policy

Climate Goals & Targets

Environmental Challenges

• Supply chain issues due to the Russian-Ukraine conflict
• Rising interest rates impacting consumer spending
• Global supply chain disruptions affecting brand distribution business

Mitigation Strategies

• Continued aggressive expansion with "Territory Champion" stores
• Launched "Senheng Mobile" store concept
• Upgraded online platforms for better user experience
• Strengthened digital marketing strategy with AI solutions
• Expanded warehouse storage space and logistics network in East Malaysia

Supply Chain Management

Supplier Audits: Evaluations on trade supplier was carried out in FY2022 for the top twenty-five (25) Senheng’s brands

Responsible Procurement

• Predominantly sources goods from local suppliers (97.97% in 2022)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad Sustainability Reporting Guide, Malaysian Code of Corporate Governance (MCCG 2021), Main Market Listing Requirements (MMLR), GRI Standards

Awards & Recognition

• CXP Best Customer Experience Awards (2022, 2020)
• The Peak, from SME100® AFFIN SME Icon Award (2021)
• Putra Brands Awards (2022, 2020, 2019, 2018, 2017)
• EY Entrepreneur of the Year (2020)
• Star Outstanding Business Awards (SOBA) (2020, 2018)
• Sin Chew Business Excellence Awards (2019)
• Billion Dollar Club Award (2019)
• Malaysia Franchise Award (2019, 2018)
• Retail Asia-Pacific Top 500 Award (2017, 2016)
• Mycybersale (2018, 2017)

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Governance & Ethics
• Supply Chain Management
• Environmental Compliance
• Energy Consumption
• Water
• Waste Management
• Emissions
• Diversity and Equal Opportunity
• Employee Training and Development
• Product Quality and Safety
• Occupational Health and Safety
• Corporate Social Responsibilities
• Data Privacy and Security

Environmental Achievements

• Achieved ZERO cases of non-compliance to DOE environmental regulatory in 2023
• 100% LED lights installed to reduce electricity consumption in 2023

Social Achievements

• Recorded Scored above 90% of last mile customer satisfaction survey in 2023
• 100% of employees trained on H&S

Governance Achievements

• Achieved ZERO corruption cases reported in 2023

Climate Goals & Targets

Environmental Challenges

• Ineffective monitoring on the business strategies and future plan
• Market competition threats
• Non-compliance with rules & regulations
• Non-performing vendor
• Health, safety & environmental hazards
• Resource-efficient practices
• Difficulty to retain and attract key personnel
• Competency gap
• Data governance
• Inability to meet consumer demand for environmentally friendly products
• Slow-moving and inventory turn monitoring
• Health, safety & environmental hazards
• Non-compliance with rules & regulations

Mitigation Strategies

• Cost savings initiative
• Investment in sustainable practices provide competitive advantage
• Enhance governance best practices
• Improve procurement transparency to improve supplier relationships and mitigate risks
• Ongoing compliance with regulatory requirements
• Optimise resource use
• Minimise waste generation
• Initiatives to adapt to climate conditions
• Improve productivity of employees though employee well-being programme
• Focus on employee skills development
• Implementation of data privacy and security measures can enhance customer trust
• Enhance customer satisfaction
• Effective safety management practices
• Improve public perception on the brand reputation

Supply Chain Management

Supplier Audits: Assessment focusing on the top 20 brands

Responsible Procurement

• Trade Supplier On-boarding Form
• Anti-Bribery and Corruption Policy Agreement
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guide 3rd edition, Malaysian Code of Corporate Governance (Updated 2021), Main Market Listing Requirements, Global Reporting Initiative Standards, United Nations Sustainable Development Goals

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed