Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Business Growth
• Quality Assurance
• Customer Satisfaction
• Corporate Governance and Ethical Business
• Effluents and Waste Management
• Workforce Diversity
• Employee Welfare
• Water and Energy Management
• Employee Training and Development
• Occupational Health and Safety

Environmental Achievements

• Minimised water and energy consumption through initiatives like switching off taps and electricity when not in use, minimising business travel, and conducting virtual meetings.
• Proper disposal of 1,600kg of spent lubricating oil through scheduled waste contractors approved by the Department of Environment (DOE) Malaysia.
• No environmental compliance-related fines or penalties imposed during the reporting period.

Social Achievements

• Maintained an employee turnover rate of 8% during FPE 2021.
• Zero workplace injuries during FPE 2021.
• 100% of employees vaccinated with at least two doses by 31 December 2021.
• No breaches against any labor-related laws and regulations in FPE 2021.

Governance Achievements

• Established an Anti-Corruption and Anti-Bribery Policy (ACAB Policy) and conducted briefings and trainings for all employees.
• Implemented a Whistleblowing Policy to encourage reporting of unethical or unlawful conduct.
• No employees disciplined or dismissed, no contracts terminated, and no public cases brought against CHGP and its employees due to non-compliance with the Code, ACAB Policy, or relevant laws and regulations in FPE 2021.

Climate Goals & Targets

Environmental Challenges

• Prolonged operational disruptions due to the Movement Control Order (MCO) and restrictions imposed to curb the spread of Covid-19.
• Increase in labor costs, increase in raw materials costs, labor and material supply shortages, availability of skilled workers, changes in economic, social, and political conditions, credit conditions, and amendments in laws & regulations.
• Interruption to business operations due to power supply disruptions, machinery breakdowns, and the impact of Covid-19.
• Foreign currency exchange risks due to purchasing commercial vehicles from overseas suppliers/sellers.
• Weakening of the Malaysian Ringgit against other currencies affecting profitability in the commercial vehicles segment.

Mitigation Strategies

• Prudent financial management and efficient operating procedures.
• Constant monitoring and scheduled maintenance of equipment and machinery.
• Active monitoring and timely measures to minimize the impact of Covid-19 on operations, including working closely with local authorities.
• Assessment of the need to utilize financial instruments to hedge currency exposure.
• Competitive cost advantage strategy to generate positive earnings, especially on light-truck models.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Securities' Sustainability Reporting Guide 2nd Edition

Certifications: ISO 9001:2015

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 16: Peace, Justice and Strong Institutions

The Group's sustainability strategies are aligned with these SDGs through initiatives related to sustainable business growth, quality assurance, customer satisfaction, corporate governance, environmental management, workforce diversity, employee welfare, and occupational health and safety.

Sustainable Products & Innovation

• Importation of motor homes from Japan

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced water wastage by switching off taps when not in use and using rainwater for cleaning.
• Implemented energy-saving practices such as switching off compressors and lights when not in use.
• No fines or penalties for environmental violations in FYE 2022.

Social Achievements

• No workplace injury incidents reported in FYE 2022.
• Implemented a Safety and Health Policy and established an OSH Committee.
• Provided continuous training and development opportunities to employees.

Governance Achievements

• Established a Whistleblowing Policy to encourage reporting of unethical conduct.
• Adopted an Anti-Bribery and Corruption Policy.
• Formalized and adopted a Fit and Proper Policy for assessing directors and officers.

Climate Goals & Targets

Environmental Challenges

• Rising construction costs, shortage of foreign and skilled workers, changes in economic, social, and political conditions, and amendments to relevant rules and regulations.
• Supply chain disruptions due to the Covid-19 pandemic, rising raw material prices, and manpower shortages.
• Interruptions to business operations caused by machinery failures, disruptions in electricity or water supply, and other disruptions.
• Foreign currency exchange risks due to purchasing commercial vehicles from overseas suppliers.
• Health and safety risks and hazards in property development and construction segments.
• Litigation risks arising from disputes with contractors.

Mitigation Strategies

• Prudent financial management, early planning procurement practices, and efficient operating procedures.
• Regular monitoring and scheduled maintenance of machineries and equipment.
• Regular evaluation of the need to use financial instruments to hedge currency exposure.
• Implementation of a Safety and Health Policy and establishment of an OSH Committee.
• Proper project documentation, certifications, and diligent handling of conflicts with contractors.

Supply Chain Management

Responsible Procurement

• Transparent procurement practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide (3rd Edition)

Certifications: ISO 9001:2015 (Commercial vehicle division)

UN Sustainable Development Goals

• SDG Target 8.2
• SDG Target 11.3
• SDG Target 9.1
• SDG Target 11.6
• SDG Target 12.4
• SDG Target 12.2
• SDG Target 12.5
• SDG Target 3
• SDG Target 10.3
• SDG Target 3.9
• SDG Target 8.8
• SDG Target 16.5

The Group's sustainability strategies are aligned with these SDGs through business expansion, infrastructure projects, environmental protection, employee welfare, and good governance.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced transportation costs and carbon emissions by strategically positioning assembly locations across different regions.
• Generated 1 MT of spent lubricating oil, with 0.6 MT recovered by recycling.
• Achieved zero work-related injury and fatality in FYE 2023.

Social Achievements

• Contributed RM7,400 to community events, benefitting 3 beneficiaries.
• Lower employee turnover rate of 16.6% compared to 32% in the previous year.
• No substantiated complaints concerning human rights violations or non-compliance with labor laws and regulations.

Governance Achievements

• Conducted annual corruption risk assessment covering 100% of operations.
• 100% of employees received anti-corruption training.
• No verified cases of corruption across the Group’s operation.

Climate Goals & Targets

Environmental Challenges

• Intense competition and depreciation of the Ringgit Malaysia against other major currencies in the commercial vehicles market.
• Potential litigation risk arising from disputes with main contractors or subcontractors.
• Possible operational disruptions due to machinery breakdowns, supply chain issues, and safety incidents.

Mitigation Strategies

• Competitive cost advantage strategy in the light/big trucks and prime movers segment.
• Proper project documentation, certifications, and diligent conflict handling.
• Scheduled maintenance for machinery and equipment, establishment of an OSH Committee, and implementation of an OSH policy.

Supply Chain Management

Supplier Audits: Regular assessments on suppliers and subcontractors considering quality of work, responsiveness, etc.

Responsible Procurement

• Prioritising local procurement whenever possible.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Berhad’s Main Market Listing Requirements, UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001:2015 (Construction and Commercial Vehicles Divisions)

Third-party Assurance: Internal assurance

UN Sustainable Development Goals

• SDG Target 11.3
• SDG Target 6.3
• SDG Target 11.6
• SDG Target 12.4
• SDG Target 6.4
• SDG Target 12.2
• SDG Target 10.3
• SDG Target 8.8
• SDG Target 16.5

The report details how various initiatives contribute to these SDGs.