ENVIRONMENTAL
AIR EMISSIONS
Masteel being a steel manufacturing entity, vigilant monitoring of air emissions is crucial due to their significant role as primary pollutants emerge from our operations. Recognising this critical need, since 2021, we have implemented a sophisticated Continuous Emissions Monitoring System (“CEMS”) at our Bukit Raja plant. This initiative involves the strategic placement of analysers throughout the facility to meticulously track ambient air emissions. The deployment of CEMS underscores our commitment to environmental stewardship by ensuring that our emissions adhere to the permissible limits set forth by the DOE under the Malaysian Environmental Quality (Clean Air) Regulation 2014.
This state-of-the-art system enhances our capability to gather precise and reliable emission data, offering a solid foundation for our environmental assurance strategies. It not only facilitates accurate tracking but also the recording of our emissions, enabling us to maintain compliance with stringent regulatory standards. Furthermore, the CEMS is instrumental in providing real-time data, which is invaluable for the early detection of any discrepancies or technical failures that may arise. This proactive approach allows us to address potential issues promptly, minimising environmental impact and ensuring continuous compliance.
In the last three years, our diligent monitoring has confirmed that all types of air emissions from our operations have stayed within regulatory limits, resulting in zero penalties for air emissions. This success underscores our commitment to environmental management and our investment in advanced technologies such as the CEMS. By consistently meeting strict environmental standards, we protect the environment and strengthen our reputation as a responsible industry leader dedicated to sustainability.
In FY2023, Masteel has continued our practice of transparently reporting our GHG across Scope 1, Scope 2, and Scope 3, specifically addressing 5 of the 15 categories outlined under Scope 3. This commitment reflects our proactive approach to combating climate change, demonstrating alignment with global efforts such as the Paris Climate Agreement of 2015 and initiatives by the United Nations.
Scope 1 emissions at Masteel are direct emissions from our operational activities from the combustion of carbon-based fuel sources, including natural gas. These emissions are a direct result of our manufacturing processes and are meticulously monitored to ensure efficiency and minimal environmental impact. However, we are shifting to newer technology and minimising our natural gas consumption. In FY2023, there was a significant decrease in our scope 1 emissions, attributed to our adoption of a new calculation methodology. This development is part of our efforts to achieve ISO14064 certification.
Our Scope 2 emissions, on the other hand, represent the indirect GHG emissions associated with the electricity we purchase and consume from the grid. This category underscores the importance of sourcing cleaner, more sustainable energy options to reduce our overall carbon footprint.
Scope 3 emissions, often the most complex to quantify, include indirect emissions not directly controlled by Masteel but related to our broader value chain. Within this scope, we focus on categories such as Category 6: Business Travel, Category 7: Employee Commuting, Category 8: Upstream Leased Assets, Category 11: Use of Sold Products and Category 13: Downstream Leased Assets.
The total GHG emissions from our Bukit Raja plant are detailed below, providing a comprehensive overview of our environmental impact. We recorded a process carbon intensity of 0.497 tCO 2 e/mt for the steel making plant and 0.147 tCO2 e/mt for the rolling mill plant. For an in-depth breakdown and analysis of each category of GHG emissions, we direct stakeholders to pages 120-123 of our TCFD & ISSB report.
By maintaining transparency in our GHG emissions reporting and actively working to reduce our environmental footprint, Masteel reaffirms its dedication to sustainability and responsible corporate citizenship. Our efforts to measure, report, and mitigate GHG emissions across all scopes of our operation are integral to our environmental strategy and our contribution towards a more sustainable future.
ASSURANCE STATEMENT
To enhance the trustworthiness and reliability of our Sustainability and TCFD reporting, we have undertaken rigorous reviews through two distinct but complementary processes:-
- Our internal auditors conduct detailed reviews of our reports to ensure they are accurate, consistent, and aligned with our sustainability objectives. Furthermore, our adherence to ISO 14001:2015 and ISO 45001:2018 standards guarantees that our operations not only meet but aim to surpass global benchmarks in environmental management and workplace safety.
- An independent external assurance, TUV NORD (Malaysia) Sdn Bhd specifically adheres to the ISO14064-1:2018 and ISO14404-2:2013 standards and focuses on GHG Emissions.