Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented rainwater harvesting for water conservation
• Installed timers, motion sensors, and LED lighting to improve energy efficiency
• Achieved ISO 14001:2015 (Environmental Management System) certification
• Collected baseline data for Scope 1 and Scope 2 emissions

Social Achievements

• Increased average training hours per employee from 3.51 in FPE 2021 to 22.25 in FPE 2023
• Prioritized local community recruitment
• Collaborated with SOCSO to recruit local community members who lost jobs
• Organized community outreach programs (gotong royong, health checks)
• Contributed RM7,700 to local communities

Governance Achievements

• Established a Sustainability, Compliance and Certification Department
• Became a member of the UN Global Compact
• Adopted ESG Management System (PDCA model)
• Implemented policies on Whistleblowing, Anti-Bribery and Anti-Corruption, Boardroom Diversity, and Gender Diversity
• Established an ESG Compliance Committee and a Safety, Health and Environment Committee

Climate Goals & Targets

Environmental Challenges

• Strong headwinds from the start of operations coinciding with a rapid downturn in the glove manufacturing industry
• Market oversupply and lower post-pandemic demand for gloves
• Rapidly falling average selling prices (ASPs)
• Escalation of operating costs due to global supply chain disruptions and increased energy and labor costs
• Inability to secure new orders at ASPs above production costs

Mitigation Strategies

• Concentrating on building customer relationships and sales/marketing efforts
• Controlling costs and improving internal processes and efficiencies at the Kamunting Factory
• Fine-tuning the integration of ERP, SCADA, and ASRS systems
• Improving data-driven decision-making
• Enhancing automation of manufacturing processes
• Training and upskilling employees

Supply Chain Management

Supplier Audits: Pilot program established in FPE 2023; aiming for biennial audits of high-risk suppliers

Responsible Procurement

• Prioritizing local suppliers (95% in FPE 2023)
• Supplier assessment program to determine compliance levels

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia Securities Berhad’s Main Market Listing Requirements, Bursa Malaysia Sustainability Reporting Guide, UN SDGs (Goals 8, 11, 12, 13)

Certifications: ISO 9001:2015, ISO 13485:2016, ISO 14001:2015, ISO 45001:2018, FDA establishment and FDA 510k registrations, EU PPE Cat III (Module C2) certification

UN Sustainable Development Goals

• SDG 8
• SDG 11
• SDG 12
• SDG 13

Initiatives align with UN SDGs 8 (Decent Work and Economic Growth), 11 (Sustainable Cities and Communities), 12 (Responsible Consumption and Production), and 13 (Climate Action).

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 emissions from 17,038.90 tCO2e to 4,831.11 tCO2e (FPE 2023 to FYE 2024). Note: Reduction attributed to lower capacity utilization.
• Reduced Scope 2 emissions from 7,955.28 tCO2e to 2,979.69 tCO2e (FPE 2023 to FYE 2024). Note: Reduction attributed to lower capacity utilization.
• Implemented energy reduction initiatives (retrofit of lighting systems with LEDs, installation of controlled timer and temperature settings to air conditioning system, segregation of high temperature and low temperature processes, optimization of boiler operation).
• Implemented energy efficient initiatives (installation of inverters and optimization of space utilization, recycling of hot water in production process, reduction of motor speed of chiller system, improvement of oven efficiency in production process).
• Brought the management and operation of the Industrial Effluent Treatment System (IETS) in-house.
• Maintained Standard B for water quality related parameters (BOD, COD, TSS).

Social Achievements

• Increased average training hours per employee from 22.25 hours (FPE 2023) to 28.26 hours (FYE 2024).
• More than 81% of procurement budget disbursed to local suppliers in FYE 2024.
• Organised community outreach and enrichment programs (gotong royong), collaborated with SOCSO to recruit local community members, supported 9 local student internships, and made food donations to the local community.

Governance Achievements

• Established a Sustainability, Compliance and Certification (SCC) department.
• Implemented an in-house designed ESG Management System (ESG-MS) based on the PDCA framework.
• Conducted 189.3 hours of training on the Anti-Bribery and Anti-Corruption (ABAC) policy for 220 employees, resulting in zero bribery or corruption cases.

Climate Goals & Targets

Environmental Challenges

• Increased industry consolidation, intense market competition, soft Average Selling Prices (ASPs), eroding operating margins, and increased operating costs (labour and utilities).

Mitigation Strategies

• Completed an internal reorganisation, focusing resources on the Kamunting Factory.
• Accelerated efforts to reduce production costs (streamlining production, increasing automation, proactive maintenance, energy-efficient modifications).
• Completed a rights issue with warrants exercise to support working capital and capital expenditure.
• Proposed a debt settlement exercise to reduce indebtedness.

Supply Chain Management

Supplier Audits: Pilot program converted to permanent program to evaluate supplier compliance regularly. Goal to assess all high-risk suppliers at least biennially.

Responsible Procurement

• Prioritising local suppliers (81% of procurement budget in FYE 2024)
• Supplier Code of Conduct emphasizing ethical, social, and environmental standards, including zero tolerance for modern slavery.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia Securities Berhad’s Main Market Listing Requirements and the Bursa Malaysia Sustainability Reporting Guide, UN SDGs (Goals 8, 11, 12, and 13)

Certifications: ISO 9001:2015, ISO 13485:2016, ISO 14001:2015, ISO 45001:2018, FDA establishment and FDA 510k registrations, EN ISO 374 PPE Cat III (Module C2; type B)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 8
• SDG 11
• SDG 12
• SDG 13

Initiatives align with UN SDGs through good governance, safe and sustainable settlements, sustainable consumption and production, and urgent action to combat climate change.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed