Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business Ethics and Integrity
• Occupational Health and Safety
• Employee Learning & Development
• Environmental Performance
• Community Outreach
• Halal Commitment

Environmental Achievements

• Achieved a 26% yoy reduction in total scheduled waste produced (exceeding the 3% target, mainly due to reduced production during the pandemic).
• Reduced electricity consumption in Bangi 3 warehouse by approximately 86,000 kw/h monthly by eliminating a heater from the HVAC unit.
• Cited for Notable Achievement in Environmental Performance at the Prime Minister’s Hibiscus Award 2020.

Social Achievements

• Became the first Malaysian pharmaceutical company to commercially produce a generic cancer drug.
• Developed 33 halal pharmapreneurs through the Duopharma Biotech Halal Pharmapreneur programme.
• Channelled more than half a million ringgit to the Ministry of Health, Epic Society, and the GDRN in support of pandemic relief work.
• Achieved an 88% employee engagement score, exceeding the target of 87%.
• Reduced employee turnover rate from 12.44% in 2019 to 8.08% in 2020.

Governance Achievements

• Attained ISO 37001:2016 Anti-Bribery Management System certification for the entire Duopharma Biotech Group without a Non-Conformance Report.
• Honored with the Five Petals Gold Ethics Award by the Business Ethics Institute of Malaysia (BEIM).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted operations, slowing down many ongoing initiatives and restricting travel for international M&A evaluations.
• Supply chain disruptions due to the pandemic increased raw material costs and freight charges.
• Reduced production during the MCO affected the demand and supply of various products.
• Water supply disruptions in Selangor temporarily required the use of water tankers.

Mitigation Strategies

• Implemented split operations with teams alternating between working from the office and home.
• Absorbed increased raw material costs while maintaining prices and production.
• Submitted 78 suppliers for evaluation and obtained approvals for 96 alternate sources for commercial production.
• Secured water tankers for use at manufacturing sites during water cuts.

Supply Chain Management

Supplier Audits: 41 out of 755 vendors assessed for GMP compliance.

Responsible Procurement

• Vendor management programme
• e-auction/bidding system
• New Source Evaluation (NSE) process
• Vendor Performance Evaluation (VPE)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option, Bursa Malaysia’s Sustainability Reporting Guide

Certifications: ISO 9001, ISO 13485, Good Distribution Practice for Medical Devices (GDPMD), ISO 17025 (Glenmarie lab), ISO 37001:2016 (ABMS)

Third-party Assurance: Lloyd’s Register

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16
• Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Biodegradable plastic for storage (pilot project)
• Generic cancer drug

Awards & Recognition

• Five Petals Gold Ethics Award (BEIM)
• Prime Minister’s Hibiscus Award (Notable Achievement in Environmental Performance)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Scheduled waste production decreased by 33.9%
• 34% of non-scheduled waste produced in Klang was recycled
• Installation of a smart lighting system at the K6 warehouse in Klang saved 161.56 MWh year eq to 94.51 MTCO2e/year

Social Achievements

• Employee engagement score of 90% (2 percentage points higher than in 2020)
• 34,837 total number of training hours; and 24 hours of training per employee on average
• Trained 33 retail pharmacies under the DUOPHARMA BIOTECH HALAL PHARMAPRENEUR programme since its launch in 2017
• Contributed RM1.5 million for the purchase of 646 laptops for children from low-income families under CERDIK

Governance Achievements

• Zero incidences of bribery
• Revised Whistleblowing Policy (and Investigation Procedures), Declaration of Interest Policy, and Integrity Pact Policy
• Introduced Grants, Charitable Donations and External Sponsorship Policy
• Anti-Bribery Management System (“ABMS”) ISO 37001 surveillance audit with zero non-conformance

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations and supply chains
• Delays with Sputnik V vaccine
• Supply chain disruptions due to increased cost of freight and raw materials
• Reduced availability of cargo ships
• Travel restrictions impacting clinical studies and vendor audits

Mitigation Strategies

• Group-wide Pandemic Committee
• Implementation of various SOPs and safety measures
• Agreement with China National Biotec Group Company Limited for Sinopharm vaccine
• Proactive work with suppliers to expedite orders and provide longer lead times
• Desktop audits for vendor GMP inspections
• Virtual technology transfer for HAPI oncology product TREVIVE

Supply Chain Management

Supplier Audits: 64 out of 770 vendors audited

Responsible Procurement

• Vendor Management Programme
• GMP standards for vendors
• e-auction/bidding for competitive pricing
• New Source Evaluation process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards – Core Option, Bursa Malaysia’s Sustainability Reporting Guide, United Nations’ Sustainable Development Goals (“SDGs”), AA1000AS v3

Certifications: ISO 9001:2015, ISO 13485:2016, GDPMD, MS ISO/IEC 17025, ISO 37001

Third-party Assurance: Carbon Check (I) Pvt. Ltd.

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16
• Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Flavettes Nutriskincare

Awards & Recognition

• FTSE4Good Bursa Malaysia Index
• HR Asia’s Best Companies to Work for in Asia
• Graduate’s Choice Awards 2021
• Sustainable Business Awards Malaysia 2020/2021
• Par Excellence award at the International Convention on Quality Control Circle 2021
• 3 stars at the Annual Productivity and Innovation Showcase 2021

Environmental Metrics

ESG Focus Areas

• Climate Performance
• Sustainable Supply Chain
• Access to Medicine
• Diversity & Inclusion
• Governance

Environmental Achievements

• Reduced scheduled waste by 3%
• Increased recycling of non-scheduled waste to 221.39 tonnes
• Reduced total treated effluents discharged to 11.17 ML
• Achieved RM5.95 million in savings from 43 Continual Improvement projects exceeding the target of RM4.0 million
• Purchased 6,200 REC units, equivalent to 6,200 MWh of electricity from renewable sources

Social Achievements

• Launched Mental Health Awareness Programme and HR Cares Wellness Helpline
• Achieved training hours according to employee category: 47 hours (Blue Book), 32 hours (Red Book), 10 hours (Green Book)
• Narrowed gender gap (women in workforce) to 47.6% from 47.2% in 2021
• Offered permanent employment to 36 out of 65 PROTÉGÉ participants
• Increased Customer Satisfaction Index (CSI) from 98% in 2021 to 98.4% in 2022

Governance Achievements

• Established 5-year ESG Strategy and Roadmap
• Implemented 31 out of 34 initiatives under the Organisation Integrity & Anti-Corruption Plan (OIACP)
• Achieved zero non-conformance reports in audits on Anti-Bribery Management System for the third consecutive year
• Launched Integrity and Anti-Corruption Series for Business Associates
• Revised Whistleblowing Policy

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to increased manufacturing costs globally
• Labour shortage
• Increased customer returns

Mitigation Strategies

• Developed alternative approved sources for important items
• Posted vacancies on social media, online job portals, and WhatsApp groups
• Engaged new manpower supply agents
• Analysed customer returns and shared results with sales teams

Supply Chain Management

Supplier Audits: 35 audits/year

Responsible Procurement

• Integrity Pact
• GMP audits
• New Source Evaluation process
• e-auction/bidding

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products
• Renewable energy opportunities

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide, UN SDGs, SASB Standards, TCFD, FTSE4Good Bursa Malaysia Index’s ESG indicators

Certifications: ISO 9001:2015, ISO 13485:2016, Good Manufacturing Practice, Good Distribution Practice, MS ISO/IEC 17025

Third-party Assurance: Carbon Check (l) Pvt. Ltd.

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 16
• Goal 17

Initiatives contributing to various SDGs as detailed in the SDG Content Index.

Sustainable Products & Innovation

• LEBRETA (halal-certified cancer drug)
• Trevive (cancer drug)
• ERYSAA® (biosimilar)
• New glaucoma eyedrop with improved bottle design

Awards & Recognition

• 'Sustainability Awareness and Employee Engagement Recognition'
• Shortlisted for 'Benchmark 10 - Zero Incidences of Bribery' at the UNGCMYB Sustainability Performance Awards 2022

Environmental Metrics

ESG Focus Areas

• Climate Performance
• Sustainable Supply Chain
• Access to Medicine
• Diversity & Inclusion
• Governance

Environmental Achievements

• Achieved 0.36% reduction in total carbon emissions intensity from 2022
• 5,926.36 m3 of water recycled within operations
• Diverted 19% of non-scheduled waste from landfills
• 5.099 tonnes of biodegradable plastics used within operations to replace single-use plastics
• Increased recycling rate by 4% from 2022
• Solar panel installation at 3 main manufacturing sites
• Established GHG Scope 3 baseline data in 3 categories

Social Achievements

• Employee Engagement Index (“EEI”): 88% (2022:84%)
• Reduction in Total Recordable Case Frequency (“TRCF”): 1.09 (TRCF 2022: 2.10)
• Invested RM1.60 million in learning & development in 2023 (increase by 48.6% from 2022)
• Total contribution to community development programmes: RM1.92 million
• Established Diversity, Anti-Discrimination & Anti- Harassment Policy in February 2023
• Over 4,000 patients benefiting from Lebreta breast cancer treatment monthly

Governance Achievements

• Revised Whistleblowing Policy and Whistleblowing Investigation Procedure in accordance with ISO 37002 and 37008 requirements
• Trained 29 Bumi Agents on Anti-Corruption related subjects
• Certified with ISO 37001:2016 Anti-Bribery Management System
• 45.5% women directors on our Board
• Adopted a new Directors’ Code of Ethics
• Completed revision of the Company’s Board Charter

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global factors
• Climate change risks (physical and transition)
• Maintaining affordability of medicines in the face of regulatory changes and increasing costs
• Ensuring access to medicines in developing countries
• Maintaining data privacy and security in a increasingly digital environment
• Managing risks related to corruption and bribery

Mitigation Strategies

• Maintaining alternative approved sources for important items to avoid single-source dependence
• Developing a Net Zero Transition Plan (NZTP)
• Investing in sustainable and climate-resilient practices
• Producing generics and biosimilars
• Investing in cybersecurity technologies and practices
• Implementing an Anti-Bribery and Anti-Corruption Policy and Anti-Bribery Management System

Supply Chain Management

Supplier Audits: 35 audits in 2023

Responsible Procurement

• Integrity Pact Agreement
• Anti-Bribery and Anti-Corruption Policy
• New Source Evaluation (NSE)
• Purchasing control procedures
• e-PO system

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events
• Rising sea levels
• Rising mean temperatures

Transition Risks

• Policy & Legal changes
• Technological limitations
• Market shifts

Opportunities

• Resource efficiency
• Energy source diversification
• Market opportunities with low-carbon products
• Enhanced resilience

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia’s Sustainability Reporting Guide, Bursa Malaysia’s Common Sustainability Matters, TCFD recommendations, FTSE4Good Bursa Malaysia Index’s ESG indicators, SASB Standards, UN SDGs

Certifications: ISO 37001:2016 Anti-Bribery Management System, ISO 9001:2015, ISO 13485:2016, GMP, GDP, GDPMD

Third-party Assurance: Carbon Check (I) Pvt. Ltd. (limited assurance), Group Internal Audit (limited assurance)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 16
• Goal 17

Detailed explanation of how initiatives contribute to these goals is provided in the UN SDGs Content Index.

Sustainable Products & Innovation

• Biodegradable plastics in packaging

Awards & Recognition

• Sustainability & CSR Malaysia Awards 2023 Company of The Year (Pharmaceutical), Community Care Award
• The Edge ESG Awards 2023 Gold Award in Healthcare category
• Talentbank Graduates’ Choice Award 2023
• UNGCMYB The Forward Faster Sustainability Awards
• National Annual Corporate Report Awards (“NACRA”) 2023
• World Cleanup Day Best Agency in the Private Sector