Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• 11% reduction in Greenhouse Gas emissions
• Approximately RM0.8 million cost savings from energy-saving initiatives
• Approximately RM30,000 cost savings from water recycling programmes
• 150 tonnes of general waste recycled
• 250 tonnes of recycled input material utilized in manufacturing operations
• Generated 834.03 GJ energy using solar panel, 5% of total energy consumption at Sungai Petani plant

Social Achievements

• Invested approximately RM1 million in employees’ training programmes
• Average of 17 training hours per employee
• 166 individuals provided with talent development opportunities
• Zero recorded cases of discrimination and labour practices
• Zero workplace fatalities
• Established Pharmaniaga Special COVID-19 Task Force and Crisis Action Plan
• Approximately RM8.8 million invested in corporate responsibility

Governance Achievements

• Enforced ABMS policy and objectives to cover local subsidiaries under Pharmaniaga Group
• Zero graft incidents recorded
• Continue to abide by Anti-Bribery, Anti-Money Laundering, Donation and Gifting Policy
• Revised Anti-Bribery Management Systems Policy and Objectives
• Conducted risk assessment for corruption
• Five manufacturing subsidiaries embarked on a journey towards obtaining the MS ISO 37001: 2016 Anti-Bribery Management Systems (ABMS) certification

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disrupting lives and bringing uncertainty to the business outlook
• Movement Control Order (MCO) restricting customer access to physical stores
• Shortage in local PPE supply due to high market demand

Mitigation Strategies

• Deployed teams to distribute PPE and medical equipment
• Leveraged multiple e-commerce platforms to improve customer access to products
• Established Pharmaniaga Special COVID-19 Task Force and Crisis Action Plan
• Implemented work from home arrangements and work rotations
• Sourced PPE internationally

Supply Chain Management

Supplier Audits: Annual vendor performance evaluation

Responsible Procurement

• Prioritizing local vendors and suppliers
• RoyalePharma Alliances Programme
• Vendor Development Programme

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia’s Sustainability Reporting Guide (2nd Edition), Global Reporting Initiative (GRI) Standards – Core Option, World Business Council for Sustainable Development and World Resources Institute’s GHG Protocol

Certifications: ISO 14001:2015, ISO 45001:2018, MS ISO 37001:2016 (in progress for 5 subsidiaries), Good Distribution Practices

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 8
• SDG 16
• SDG 1
• SDG 4
• SDG 6
• SDG 7
• SDG 9
• SDG 10
• SDG 12
• SDG 17

Pharmaniaga's operations and initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

• Halal vaccines

Awards & Recognition

• Global Halal Excellence Awards (GHEA) 2020 Excellence in Pharmaceutical Award
• Halal Pharmaceutical Excellence Award 2020
• Sustainability & CSR Awards 2020 Company of the Year
• Malaysia’s 100 Leading Graduate Employers Awards 2020
• CXP Best Customer Experience Awards 2020

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainability

Social Achievements

• 46% of Senior Management are women

Governance Achievements

• Established a Whistleblowing Policy
• Adopted an Anti-Bribery and Corruption Policy
• Implemented a Code of Ethics and Conduct
• Regularly reviews corporate governance arrangements and practices

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on global economy and Group’s financial performance, employee health and welfare, potential disruptions to operations and business relationships

Mitigation Strategies

• Developed a COVID-19 response plan including a Business Continuity Plan (BCP)
• Held virtual board meetings during MCO period
• Monitored the impact of the pandemic on operations and maintained a safe working environment for employees

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MCCG (Malaysian Code on Corporate Governance)

Environmental Metrics

ESG Focus Areas

• Sustainability

Social Achievements

• Human rights awareness programme

Governance Achievements

• Established a Code of Ethics and Conduct
• Established a Whistleblowing Policy
• Established a Sustainability Committee and Management Sustainability Committee
• Implemented various measures to drive sustainability in line with its business values and philosophy including environmental-related risks and opportunities

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, FTSE4Good Bursa Malaysia Index’s Environmental, Social and Governance Indicators, United Nations Sustainable Development Goals

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions from 37,503.60 tCO2e in 2019 to 35,658.04 tCO2e in 2023 (Scope 1 & 2).
• Increased renewable energy consumption from 561.42 GJ in 2019 to 749.50 GJ in 2023.

Social Achievements

• Implemented various training and development programs, with a total of 120,351 training hours in 2022.
• Improved health and safety performance, reducing the Lost Time Injury Rate (LTIR) from 0.42 in 2021 to 0.31 in 2023.

Governance Achievements

• Maintained high compliance to concession agreements, with a performance rate of 98.8% in 2023.
• Increased employee training on anti-corruption from 32.6% in 2021 to 48% in 2023.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: External Assurance assessment

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Carbon Emission Reduction
• Sustainability

Environmental Achievements

• Launched Solar PV System Project at six facilities, projected to reduce carbon emissions by 10-20% and save up to RM2.7 million annually on electricity costs.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Cost savings from reduced energy consumption

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 12
• SDG 3

Supporting renewable energy, efficient resource use, and indirectly improving health outcomes by addressing climate-related risks.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed