Our Sustainability
Environmental, Social and Governance (ESG)
The Board of Hextar Global Berhad (HGB) believes that introducing Environmental, Social and Governance (ESG) considerations in its business decisions is essential to achieve long term business success besides creating value for all its stakeholders, act as a strategic approach to support and empower communities, encourage social inclusivity and improve the environment. In terms of climate change, Hextar is committed to reinforcing the efforts towards decarbonization pathway while ensuring long-term value creation for the organization.
The balancing of ESG with the interests of stakeholders is essential in improving investor perception and public trust that works towards value enhancement for stakeholders in the long run. Climate change, directly and indirectly, affects our profitability and sustainable growth. It is crucial to protect these by mitigating and adapting to climate related risks.
HGB also believes that as a responsible corporate citizen, one would have an obligation in making the earth a better place to live in through responsible investing, besides weighing on an appropriate risk-return profile for its investments. Accordingly, HGB incorporated its principles of sustainability in its ESG policy and in line with our core values of Integrity, Loyalty and Hard Work.
FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index.
Our efforts to be a responsible and sustainable organization have enabled us to be included as a constituent in the FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index since June 2023. FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Hextar Global Berhad has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.
What our Managing Director Say
"Hextar Group is committed to meeting the target of Net Zero Carbon Emissions by 2050, aligned to Malaysia's national aspirations and in support of the Sustainable Development Goals (SDGs) on Climate Action."
"As we look into the future, we hope to achieve the Net Zero target through investing in low-carbon efficient technologies and renewable energy. We hope to continuously report our progress as an organization towards meeting this goal in the future."
ESG AT A GLANCE
ENVIRONMENTAL SUSTAINABILITY GOALS
GHG Emissions Initiatives
To achieve NET ZERO Carbon Emissions by 2050
To generate AT LEAST 10% electricity at manufacturing facilities from renewable energy source by 2030. In FY2022 we successfully installed our first Solar Photovoltaic (“Solar PV”) system at our factory located at Pulau Indah, Selangor. The 183kWp Solar PV began yielding savings starting at the outset of FY2023. In addition to the factory installation, we also installed Solar PV at our corporate office in Kota Bayuemas, Klang, Selangor with design capacity of 20kWp. Both solar PV installation commenced electricity generation in FY2023.
As of 31 December 2023, we successfully generated 211,307 kWh from solar PV, a stark contrast from the previous fiscal year where no solar power was generated in FY2022. This achievement signifies a remarkable leap, with renewable sources contributing 8.38% of our total electricity consumption at our manufacturing facilities. This milestone marks a significant step towards our sustainability targets of achieving 10% reliance on renewable sources by the year 2030.
To reduce Class I product portfolio from current 4.3% to 2.5% and Class II product portfolio from current 24.7% to 17.5% by year 2026.
| Product Class | |||||||
|---|---|---|---|---|---|---|---|
| Class I (Highly Poisonous) | |||||||
| Class II (Poisonous) | |||||||
| Class III (Harmful) | |||||||
| Class IV (Least Toxic) |
We are pleased our target to reduce Class I product in FY2023 achieved above expectation by 16.6%, however Class II, III and IV products did not achieve the targets set for FY2023. We will continue to monitor and improve the performance to achieve the targets set for year 2026.
GHG EMISSIONS
In FY2023, the Group continued to collect the GHG data, excluding all newly acquired companies in FY2023.
Append below is the Group total GHG emission in Metric Tones of CO2 equivalent.
| Scope 1 | Tonnes CO2e | |||
| Scope 2 | Tonnes CO2e | |||
| Scope 3 | ||||
| Employee commuting | Tonnes CO2e | |||
| Business Travel (Land) | Tonnes CO2e | |||
| Business Travel (Air) | Tonnes CO2e | |||
| TOTAL Scope 1+2 | Tonnes CO2e | |||
| TOTAL Scope 3 | Tonnes CO2e | |||
| TOTAL Scope 1+2+3 | Tonnes CO2e | |||
Notes:
- Scope 1: Direct CO2e emitted from sources that are owned by the group, such as company-owned vehicles and machineries
- Scope 2: Total CO2e emitted refers to indirect emissions from purchased electricity using the location-based and market-based methods
- Scope 3: Total CO2e emitted refers to indirect emissions. We are reporting employee commuting and business travel only from data obtained from petrol card users and collected data,
- Carbon emissions from purchased electricity (Scope 2) in Malaysia is calculated based on the emission factors from Grid Emission Factor (GEF) in Malaysia report [https://meih.st.gov.my/documents/10620/fe512535-e765-49a8-a452-3297a3768ed3] reported by the Suruhanjaya Tenaga Malaysian.
- Data for emissions generated was obtained by using the relevant emission factors from the Malaysian Green Technology and Department for Environment, Food and Rural Affairs (Defra) UK GHG Conversion Factors. This is considered the current best practice for corporate or organisational emissions reporting.
We are conscious of the rapidly rising climate change, including both Physical and Transition risks. In response, we proactively identify, and manage risks that materially impact our value creation abilities, including sustainability which is regularly deliberated by the Board and driven by the ESG Committee.
| RISK | OPPORTUNITIES |
|---|---|
| Preparation for future climate related regulation that may cause issues of non-compliance. | Stakeholder trust and perception can be improved through effective emissions management. |
| Reallocation of capital to green investments by financial institutions impacts business funding. | Lower resource consumption contributes to cost savings and better performance. |
| Poor climate change adaptation exposes our agrochemical business activities to severe damage and high financial lose. | Secure positioning and diversify in low carbon solutions market in order to meet increasing demand. |
Additionally, we strive to meet the standards of global sustainability indices to improve our governance and disclosures on sustainability related risks in meeting our stakeholder expectations.
ENVIRONMENTAL COMPLIANCE
Environmental policies are put in place in our operations to govern our environmental management. The criteria for our environmental management are laid forth in ISO 14001 and 45001 Environmental, Health and Safety Management System Standards. In addition to our internal policies, we are committed to adhere to all applicable environmental laws and regulations, which include: -
| Laws and Regulations | Our Commitments |
|---|---|
Wastewater Discharge
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Scrubber System
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Waste Disposal
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Noise Exposure
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Chemical Management
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Poison Management
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SOCIAL SUSTAINABILITY GOALS
30% of the Board are women by year 2024
16.7% women directors in the current Board as at 31 December 2023.
30% of top Management are women by year 2030
ACHIEVED 33.3% top Management are women as at 31 December 2023.
ZERO tolerance to discrimination, harassment, violence, forced labour and child labour in the workplace
ACHIEVED ZERO incidence of discrimination or any violence in labour law in FY2023.
ZERO incidence of fatalities
ACHIEVED ZERO incidence of fatalities in FY2023.
ZERO tolerance to avoidable incidence of work-related injuries
There were 3 minor incidences of work-related injuries in FY2023.
ALL MANUFACTURING COMPANIES to be ISO 45001:2018 certified by 2030
Currently HEXTAR CHEMICALS SDN BHD,
CHEMPRO TECHNOLOGY (M) SDN BHD,
ALPHA AIM (M) SDN BHD and
HEXTAR KIMIA SDN BHD are certified with ISO 45001:2018
Currently 50% of our manufacturing companies are certified with ISO 45001:2018.
LABOUR PRACTICES AND STANDARDS
WORK-RELATED INJURIES (EMPLOYEES)
| Description / Years | ||||
|---|---|---|---|---|
| Hours Worked | ||||
| Work Related Injuries | ||||
| List Time Incident Rate | ||||
| Work Related Fatalities |
WORK-RELATED INJURIES (CONTRACTORS)
| Description / Years | ||||
|---|---|---|---|---|
| Work Related Injuries | ||||
| Work Related Fatalities |
Under our stringent control on occupational safety and health affairs in Hextar Group, We are pleased to inform that we have successfully achieved our goal of having zero incidences of fatalities for Hextar employees and contractors in FY2023. However we had three minor work-related injury in FY2023. We took immediate corrective actions to prevent any similar incidents from happening in the future.
- A worker was exposed to chemical splash near the eye area at our Pulau Indah manufacturing facility. The worker was wearing PPE, but it lacked a visor to fully protect the sides of the face. To address this, we have implemented the mandatory use of PPE with of safety goggle and an additional layer of visor for all personnel involved in chemical handling activities.
- A building maintenance worker sustained a scratch on the hand between the thumb and index finger while operating a grinder in our Indonesia manufacturing facility. We have implemented the mandatory use of grinder covers and anti-scratch hand gloves for all personnel operating grinding tools.
- A utility worker accidentally splashed product into his eyes because he was not wearing safety glasses in our Indonesia manufacturing facility. We have reinforced the importance of proper PPE use and implemented stricter controls and supervision to ensure all workers wear appropriate safety equipment at all times.
Our SHE Committee comprises of employee representatives as we believe in the importance of active participation from relevant stakeholders to monitor and improve the safety and well-being of the organization.
We prioritize the safety and health of our employees in our production and operation management in order to fulfill our corporate social responsibility and contribute to the progress of the economy, the environment, and society.
The Board has approved the appointment of a Board Member, Madam Lee Chooi Keng to oversight the management of health and safety risks and the management of climate change risks. We believe that by including a representative from the Board member with relevant knowledge and experience, it will improve the effectiveness of the Safety, Health & Environment and ESG governance.
Hextar Global Berhad sustainability governance is led by the ESG Committee comprising Senior management team, representative from the Board Member and Senior Executives. We believe the committee is critical for driving the development and implementation of the Company’s ESG strategy.
EQUAL TREATMENT IN WORKFORCE
Labour Rights Policy
To protect employee’s human rights from the areas of forced labour, child labour and discrimination, with the inclusion of clear line of responsibilities for the Board, managers, supervisors and all employees. Hextar is committed to ensuring that priority is given to those from our local communities, geographic locations that are close to our operations/premises especially those from the under privileged community regardless of gender, race, age, marital status, disability, sexual orientation, educational background, social status or political affiliation.
Non-Discrimination Policy
To ensure that all employees are treated equally. Investigation will be conducted for any discrimination reported and disciplinary and corrective action will be taken, where appropriate.
Workplace Harassment Policy
To provide a safe, healthy and harassment-free working environment. Hextar has zero-tolerance to any form of harassment. Disciplinary measure will be taken for any breach of this policy.
Dispute Resolution Policy
To support prompt and fair resolution of all disputes of any nature. Employees should discuss any problems or concerns promptly with their immediate supervisor, or Head of Human Resource, if necessary, to resolve such issue.
These policies are available for reference at the Human Resource Department, or on our website at https://www.hextarglobal.com/ir.php in both English and Malay.
GOVERNANCE SUSTAINABILITY GOALS
ZERO tolerance to bribery or corruption
ACHIEVED ZERO bribery or corruption case in FY2023
ETHICAL AND TRANSPARENT BUSINESS CULTURE AND PRACTICES
In fostering our business towards SDG 16, our people and operations are guided by the following policies implemented across the Group:-
Corporate Code of Conduct & Ethics ("Code")
- Employees are required: -
- To act honestly and legally at all times;
- To avoid any conducts that could risk or damage the Group’s reputation;
- To ensure confidentiality of the Group’s information; and
- To avoid personal interest being ahead of the Group’s interest.
- All applicable laws, rules and regulations must be adhered to accordingly.
- Any conflict of interest must be avoided/ disclosed promptly.
- Disclosure of confidential information to unauthorised personnel and insider trading are strictly prohibited.
- All employees must not engage in any fraudulent or dishonest activity.
- Discrimination and harassment in workplace are prohibited.
Anti-Bribery and Corruption Policy ("ABCP")
- As per the Malaysian Anti-Corruption Commission Act 2009 and the Guidelines on Adequate Procedures issued by the Prime Minister’s Department, the ABC Policy was introduced as part of the Group’s commitment to good corporate governance and to eradicate any form of bribery and corruption.
- The Group has zero-tolerance against all forms of bribery and corruption.
- The Group is committed to acting professionally, fairly and with integrity in all business relationships and dealings.
- Head of Compliance Unit in the Group, Abdul Wahid Bin Abu Bakar has been recognized and commissioned as Certified Integrity Officer (CeIO) by Malaysian Anti-Corruption Academy.
- Due diligence shall be conducted before entering into any formalised relationship.
- "No Gift" policy is implemented.
- Facilitation payments are strictly disallowed.
Whistle Blowing Policy
- To make report for any suspected and/or known fraud or unethical/improper conducts.
- For every disclosure made in good faith, all concerns or complaints raised will be treated fairly and with confidentiality in order to protect the whistleblower.
- The whistleblowing policy has been made aware to all employees under Hextar through mandatory orientation programme which were attended by all employees.
- Investigation will be conducted and appropriate disciplinary actions will be undertaken, if applicable. For year under review, we recorded zero whistleblowing case.
Supply Chain Policy
- The policy acts as a best practice approach to sustainable procurement and sets out the guiding principles in our supplier selection process, which prioritizes suppliers who adopt sustainability practices in their organizations and business dealings especially in the area of :-
- Energy use
- Climate change
- Water use
- Biodiversity impacts
- Pollution
- Waste reduction
- Resource use
- Hextar’s suppliers are expected to comply with all applicable laws, codes or regulations of the countries, states and localities in which they operate.
- Suppliers must also ensure that their own vendors, including temporary labour agencies, are in compliance with such laws and regulations. They must also align their practices with any published standards for their industry.
These policies are available for reference on our website at https://www.hextarglobal.com/ir.php
Hextar Global Berhad is committed to
The United Nations Sustainable Development Goals (UN-SDG) and Malaysia’s Shared Prosperity Vision 2030 (SPV2030) towards decarbonization pathway while ensuring long-term value creation for the organization. As part of our commitment to sustainable and responsible business practices, Hextar Global Berhad has embedded the Ten Principles of the United Nations Global Compact into strategies and operations, and committed to respecting human and labour rights, safeguarding the environment, and working against corruption in all its forms.
End poverty in all its forms everywhere.
End hunger, achieve food security and improved nutrition and promote sustainable agriculture.
Ensure healthy lives and promote well-being for all at all ages.
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
Achieve gender equality and empower all women and girls.
Ensure availability and sustainable management of water and sanitation for all.
Ensure access to affordable, reliable, sustainable and modern energy for all.
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
Reduce inequality within and among countries.
Make cities and human settlements inclusive, safe, resilient and sustainable.
Ensure sustainable consumption and production patterns.
Take urgent action to combat climate change and its impacts.*
Conserve and sustainably use the oceans, seas and marine resources for sustainable development.
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat dessertification, and halt and reverse land degradation and halt biodiversity loss.
Promote peaceful and inclusive societies for sustainable development, proivde access to justice for all and build effective, accountable and inclusive institutions at all levels.
Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development.
