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The Materiality Assessment is a stakeholder engagement exercise designed to gauge the Group’s most noteworthy economic, environmental and social impacts that are of importance to its stakeholders. This process helped us identify and prioritise key matters according to its impact on business activities and its importance to our stakeholders’ perspectives.
We engaged a broad cross section of our customers, suppliers, employees, community as well as government stakeholders in this exercise to ensure we have a wide range of diverse feedback on sustainability matters that are important to us. This was conducted via a survey. The material matter assessment was completed by end of Quarter 4 FYE 2020.
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| MATERIALITY ASSESSMENT PROCESS |
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| IDENTIFY POTENTIAL ISSUES |
- Identified and compiled a list of significant areas of the Group’s operations.
- Materiality assessment process was conducted to gather the feedback from stakeholders through electronic surveys as well as physical survey.
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| PRIORITISE ISSUES |
- Develop the materiality matrix based on the scores of the survey which help to isolate, rank and prioritise our sustainability key matters.
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| SENIOR MANAGEMENT VALIDATION |
- The sustainability material matrix was reviewed by the senior management, deliberated and agreed upon.
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The materiality matrix below represents the outcome of the Group’s materiality assessment exercise. Sustainability key matters have been rated on a scale of low, medium and high. To prioritize each key matter, we used a scale of 0% to 40% as low priority and 75% to 100% as high priority. There were 18 sustainability matters shown in the materiality matrix according to the ranking provided by our stakeholders. The material matters are selected to emphasize all 3 Sustainability Pillars namely Economic, Environmental and Social Impact.
We have selected 9 key material matters based on the rankings explained above to focus our efforts and to set targets for the year 2021 and beyond.
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| Order of Significance Ranked by Our Stakeholders |
Top 9 Sustainability Materiality Matters |
Order of Significance Ranked by Our Stakeholders |
Other Sustainability Materiality Matters |
| 1 |
Product Safety |
10 |
Electricity Consumption |
| 2 |
Business Ethics |
11 |
Water Consumption |
| 3 |
Safety at Workplace |
12 |
Smart Manufacturing |
| 4 |
Ethical Sourcing |
13 |
Leadership |
| 5 |
Waste Management |
14 |
Employee Training Development |
| 6 |
Air Quality |
15 |
Product Life Cycle |
| 7 |
Energy & Carbon Emission |
16 |
Succession Plan |
| 8 |
Employee Engagement |
17 |
Foreign Workers |
| 9 |
Diversity & Fair Treatment |
18 |
Freedom of Association |
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| SUSTAINABILITY TARGETS |
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The Board of Directors has approved the following sustainability targets for each of the material matter.
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| Sustainability Pillar |
Key Material Matters |
Sustainability Goals/Targets |
| Economic |
- Product Safety
- Business Ethics
- Ethical Sourcing
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- Zero product recall from packaging material defects
- Zero bribery and corruption cases reported
- Procure from suppliers who are ethically compliant
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| Environmental |
- Waste Management
- Air Quality
- Carbon Emission
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- Minimise waste generation. Scheduled waste management compliant with regulatory framework
- Air emission consistently meet DOE guidelines
- Adoption of solar energy as renewable source for greenfield sites. For Vietnam plant, substitution of coal energy to gas or fuel oil.
- Energy efficiency will be given high consideration for future machinery and equipment investment
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| Social |
- Safety at Workplace
- Diversity & Fair Treatment
- Employee Engagement
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- Zero employees and contractor fatality
- Increase female representation by 10% by 2025
- Increase staff retention rate by 3% by 2025
- Improve staff satisfaction rate by 5% by 2025
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These targets will be measured against the FYE 2020 baseline and progress of achievement will be reported from year 2021 onwards.
Our Sustainability Report is published annually as part of its Annual Report which is available for download on our website under Investors Relations tab or alternatively at Bursa website under company announcements.
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