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MASTEEL’S APPROACH
TO SUSTAINABILITY

Message From Deputy Chairman/CEO

DATO’ SRI TAI HEAN LENG
@ TEK HEAN LENG

Deputy Chairman/CEO

In 2023, Masteel is continuing its steadfast vocation to imbue our steel business with ever more thorough disclosures to underscore our company’s commitment to ESG and sustainability best practices and compliance.

We are hearten by our extensive corporate wide adaption of ESG framework such as Global Reporting Initiative, United Nations Sustainable Development Goals, Task Force on Climate-Related Financial Disclosures, International Sustainability Standards Board and Bursa Malaysia Sustainability Reporting Guide (3rd Edition) which has improved not only the calibre of our management but also the competitiveness of our company.

2023 has been a pivotal year where our efforts on corporate sustainability have been recognised by Bursa Malaysia and government ministries and agencies such as Ministry of Natural Resources, Environment and Climate Change (“NRECC”), Ministry of Finance (“MOF”), Malaysian Investment Development Authority (“MIDA”) and Malaysian Green Technology and Climate Change (“MGTC”) in addition to national level associations and platforms such as Federation of Malaysian Manufacturers (“FMM”), Malaysia Steel Association (“MSA”) and 28th Conference of the Parties to the UN Framework Convention on Climate Change (“COP28”) by our participation and policies inputs.

We are equally proud to announce our acceptance as a member of The United Nations Global Compact, reflecting our firm dedication to sustainability and tackling climate change. The drive for ESG implementation at Masteel originates from the top, with the Board of Directors holding primary oversight and accountability for our sustainability strategy, risks, opportunities, and initiatives. Additionally, the Board also holds ultimate accountability for managing and addressing climate-related risks and opportunities.

Our organisation’s dedicated commitment to tackling climate change initiatives has been honoured with prestigious awards. Masteel has been distinguished with a 4-star rating, placing us in the top 25% for ESG performance by the FTSE Bursa Malaysia EMAS index. Moreover, our significant improvement over the past three years has been recognised with a Gold award in the Equity Category for companies with a market capitalisation below RM300M, by The Edge Malaysia ESG Awards.

This year marks a significant step forward in our sustainability journey, as we undertook an in-depth evaluation of our materiality assessment to further identify and validate the sustainability topics most pertinent to our business and stakeholders. Demonstrating our Board of Directors’ commitment, the Safety and Health Committee is now overseen by Executive Director Ms Shirley Ng, while the Sustainability Committee is led by Chief Sustainability Officer, Mr Smith Yong. Additionally, we have proactively enhanced our reporting in line with the TCFD, adapting to the new ISSB guidelines. This proactive approach ensures we provide a thorough disclosure of climate-related risks and opportunities, positioning Masteel to thrive in the face of climate change challenges.

The significant difference / achievement between 2022 and 2023.

Masteel is dedicated to reinforcing our commitment to carbon management by having TÜV NORD (Malaysia) Sdn Bhd as our independent external verifier of our GHG emissions data. We are currently also on the path to securing the ISO14064 certification for GHG verification. In FY2023, our approach includes monitoring GHG emissions on carbon intensity basis and we reported our process carbon intensity across various operations, highlighting direct and indirect emissions: 0.497 tCO e/mt at our steelmaking plant and 0.147 tCO e/mt at our rolling mill plant using an induction heater. Furthermore, we have achieved significant reductions in key air emissions especially, with NO emissions dropping by 3.05% and SO emissions by 41.35%. Our green initiatives, like the implementation of rainwater harvesting systems at our own plants, have also prevented approximately 7.37 tCO e in GHG emissions. We remain steadfast in our efforts to reduce our carbon footprint, aiming for a 10% reduction by 2026 and an additional 15% by 2031.

Masteel’s Corporate Green Awards 2023

The Masteel’s Corporate Green Awards 2023 aims to acknowledge and inspire our suppliers and contractors, fostering their engagement in sustainability efforts. This initiative is key to collaboratively reducing our carbon footprint, steering us towards the ambitious objective of attaining net-zero carbon emissions by 2050. Thus, this award serves as a crucial incentive for them to adopt more sustainable practices within their operations, recognising their vital role in our supply chain’s environmental impact.

Our Human Rights Policy

This year, we undertook an extensive evaluation of our Human Rights Policy with our stakeholders. It’s gratifying to report that a remarkable 84% of respondents showed a definitive comprehension and recognition of the principles detailed in our Human Rights Policy. Our commitment to maintaining strict adherence to these standards remains unwavering, ensuring no tolerance for any human rights infringements, including those involving our affiliated third parties.

FY2023 has marked a thrilling chapter in Masteel’s corporate saga, marked by the successful outcome of sustained dedication, hard work, and capital investment from both the Board and management. This approach has led to significant advancements in ESG practices. Masteel is committed to not only fulfilling but surpassing all regulatory standards for sustainability practices. Our goal is to emerge as an industry frontrunner in achieving net-zero carbon emissions, setting our sights on accomplishing this milestone well ahead of the 2050 target.

Sustainability Highlights 2023

Sustainability & TCFD Report