ENVIRONMENTAL
Air Emissions
We recognises the critical importance of air quality management due to the significant environmental impact associated with industrial emissions. Thus, we have prioritised the vigilant monitoring of air emissions to ensure strict compliance with environmental regulations, aligning with the Malaysian Environmental Quality (Clean Air) Regulations 2014 set forth by the DOE. Since 2021, Masteel has implemented a sophisticated Continuous Emissions Monitoring System (“CEMS”) at our Bukit Raja plant, reinforcing our commitment to environmental stewardship and sustainable industrial operations.
The CEMS system is designed with strategically placed analysers throughout the facility to meticulously track, measure, and record ambient air emissions in real-time. This state- of-the-art system enhances our ability to gather precise, reliable data, serving as a foundation for continuous environmental assurance. The CEMS enables us to identify discrepancies or technical anomalies early by providing real-time monitoring, allowing for immediate corrective actions to minimise environmental impact and operational risks. Additionally, the system ensures that our emission levels remain within permissible limits, facilitating proactive regulatory compliance. Beyond compliance, our commitment to advanced emissions monitoring reflects Masteel’s broader sustainability vision, ensuring that we uphold the highest industry standards in air quality management while reducing our overall environmental footprint.
Masteel’s rigorous air emissions monitoring has consistently confirmed that all emissions from our operations remain well within regulatory limits, leading to zero penalties for air emissions violations over the past three years. This achievement highlights our strong commitment to environmental responsibility, reinforced by our strategic investments in advanced monitoring technologies such as the CEMS. By leveraging real-time data tracking and proactive compliance measures, we ensure that our emissions adhere to the stringent standards set by the authority.
Maintaining full compliance with air quality regulations not only protects the natural environment but also strengthens Masteel’s reputation as a responsible industry leader. Our commitment to sustainability extends beyond compliance through continuous process optimisation, emission reduction initiatives, and advanced monitoring systems. We actively minimise our environmental footprint while enhancing operational efficiency by integrating best environmental practices into our core business strategy. Masteel sets a benchmark for responsible and sustainable industrial operations, ensuring that we uphold the highest standards of environmental stewardship now and into the future.
GHG Emissions
Masteel has remained dedicated to transparent and comprehensive greenhouse gas (“GHG”) reporting, covering Scope 1, Scope 2, and Scope 3 emissions in 2024. Our approach aligns with the IFRS S2 Climate-related Disclosures and international climate action frameworks such as the Paris Climate Agreement (2015) and the United Nations’ sustainability initiatives. Climate change poses both risks and opportunities that directly impact Masteel’s long-term resilience, operational efficiency, and market competitiveness. As a renowned steel manufacturer, our processes are energy- intensive and carbon-emitting, making us highly exposed to evolving environmental regulations, stakeholder expectations, and global decarbonisation trends. The increasing urgency to reduce greenhouse gas emissions is reshaping the global steel industry, with governments introducing carbon pricing mechanisms, such as the EU’s Carbon Border Adjustment Mechanism (“CBAM”), and investors demanding greater climate-related disclosures. Failure to act may result in higher compliance costs, restricted market access, and reputational risks. At the same time, climate action presents an opportunity for Masteel to lead in green steel innovation, attract sustainability focused investors, and align with the growing demand for low-carbon materials in infrastructure and construction. By integrating climate considerations into our strategy, we future proof our business, enhance operational efficiency, and create long term value for stakeholders.
Masteel’s Scope 1 emissions arise from direct operations, mainly the combustion of natural gas and diesel in manufacturing. These are closely monitored and reported to enhance efficiency and reduce environmental impact. Since FY2023, we’ve adopted ISO 14064 for accurate and standardised carbon calculations. To decarbonise further, we’ve implemented technology upgrades to lower electricity and gas use, and continue exploring alternative fuels and process innovations.
Scope 2 emissions stem from purchased electricity used in our operations. Our commitment to reducing Scope 2 emissions is evident in our energy management initiatives, such as:
- Optimising electricity use by directly charging billets from the Continuous Casting Machine (“CCM”) to reduce reheating energy.
- Enhancing renewable energy integration, with solar panel installations being a key component of our sustainability roadmap.
- Implementing ISO 50001:2018 Energy Management Systems, ensuring continuous improvement in energy performance and efficiency.
Scope 3 emissions are often the most complex to quantify, as they encompass indirect emissions that occur outside our direct control but within our broader value chain. To enhance transparency and accountability, Masteel actively tracks and reports five key Scope 3 categories, specifically in Category 6: Business Travel, Category 7: Employee Commuting, Category 8: Upstream Leased Assets, Category 9: Downstream Transportation and Distribution and Category 13: Downstream Leased Assets.
Our total GHG emissions in FY2024 from our Bukit Raja plant reflect our continuous efforts in carbon intensity reduction, with a recorded process carbon intensity of 0.489 tCO2e/mt for the steelmaking plant and 0.112 tCO2e/mt for the rolling mill plant. We have implemented strategic initiatives aimed at reducing our GHG emissions such as process optimisation, energy efficiency initiatives, and sustainable manufacturing practices. Our target commitment milestones include a 10% reduction in GHG emissions by 2026, followed by an additional 15% reduction by 2031. These initiatives underscore our responsibility to climate action, positioning Masteel as a leader in sustainable and responsible manufacturing. For a detailed breakdown and analysis of our Scope 1, Scope 2, and Scope 3 emissions, we direct stakeholders to pages 151 of our IFRS S1 & S2 report, which provides deeper insights into our carbon reduction strategies, emissions calculations, and long-term sustainability commitments.
