logo
Loading...

SUSTAINABILITY REPORT

ENVIRONMENTAL

Greatech prioritises energy efficiency as a core strategy to reduce carbon emissions and enhance operational efficiency. This approach also supports Malaysia’s national climate ambitions, which aim to achieve an absolute emission reduction of 15-30 million tCO2 by 2035 following an earlier emissions peak, and to achieve net zero emissions by 2050.
Across our operations, we actively manage energy and water consumption, reduce carbon emissions and expand the use of renewable energy to minimise our environmental footprint. We also implement waste reduction initiatives through reuse and recycling practices across our facilities and broader operations.
To drive accountability and continuous improvement, we set annual environmental targets and monitor performance against key performance indicators (“KPI”). Progress is tracked through Greatech’s quarterly scorecard, which is reviewed by executive leadership to assess performance, identify improvement opportunities and ensure alignment with our climate and operational objectives.

Energy and Greenhouse Gas (“GHG”) Emissions

Electricity represents the dominant source of energy consumption across the Group. We rely heavily on energy to power our operations and support the machines testing processes. In both 2024 and 2025, electricity accounted for approximately 94% and 99% of total energy use respectively, with the remaining consumption attributable to diesel used for fleets and back-up generators, as well as natural gas consumption for heating systems.
Our facility team works with respective functional group to reduce our emissions focusing on:
  • Energy efficiency in manufacturing operations
  • Low-carbon energy investments
  • Transportation fleet efficiency
Explore More

2025 Energy and GHG Performance

Energy Consumption and Operational Footprint

In FY2025, the Group expanded its sustainability reporting boundary to include our newly acquired Slovakia subsidiary, alongside our established operation in Ireland, US and Singapore. This expansion provides a more transparent and holistic view of our global energy footprint.
The primary driver for the increase in total energy consumption and the introduction of natural gas of 723 MWh into our energy profile is the integration of our Ireland, Slovakia and US facilities. These region utilise natural gas for climate control, which were previously outside our reporting scope.
Despite global expansion, our purchased electricity consumption remained stable, decreasing slightly by 0.6%. This reflects our ongoing efforts to implement energy-efficient lighting and smart HVAC systems across our primary manufacturing hubs.
The increase in diesel and petrol consumption from 216 MWh to 334 MWh is attributed to heightened logistical activities and backup power requirements supporting our expanded business activities.
While our absolute energy consumption rose by 4.2% due to the inclusion of our Europe and US sites, our energy consumption per unit of revenue saw a marginal increase of 1.6%.

Renewable Energy

Notes:
  1. RE consumption refers to the direct physical consumption of self-generated renewable electricity within the reporting period. It excludes RE sold to third parties.
  2. RE sold refers to renewable electricity exported to the grid and is therefore not consumed by the Group.
  3. RE generation represents total electricity generated from on-site renewable sources during the reporting period, before any sale to the grid.
  4. RECs represent contractual instruments that convey the environmental attributes of renewable electricity. RECs do not reflect physical electricity generation or physical electricity consumption.
  5. Total RE generated includes RE generation and, where applicable, RECs.
  6. Total RE consumed includes direct RE consumption and, where applicable, RECs.
  7. Percentage of RE generation over total consumption is calculated based on total annual electricity consumption of the Group.
  8. Percentage of RE (including RECs) consumed reflects renewable electricity usage after applying contractual instruments and is calculated against total annual electricity consumption of the Group.
The Group continues to accelerate its transition towards RE as part of its climate strategy and commitment to reduce Scope 1 and Scope 2 GHGs. We are investing in on-site solar photovoltaic (“PV”) systems to increase renewable electricity generation capacity across our global operations, with a targeted installed capacity of 4.0 megawatts (“MW”) across our Penang facilities.
Within the Group’s capital allocation framework, priority is given to capital expenditure that directly supports our climate transition objectives and emission reduction efforts under Scope 1 and Scope 2, where impacts are within our operational control. These investments are integrated into our long-term capital planning to ensure measurable and sustainable decarbonisation outcomes.
In FY2025, the Group completed the installation of an onsite solar PV system with an approximate capacity of 1.40MW at Batu Kawan Facility 2 (“BK 2”), marking a significant milestone expanding our RE footprint in Malaysia. The system expected to materially reduce grid electricity consumption and associated emissions at the facility.
Across the Group, approximately 11.5% of total electricity consumption during the reporting period was sourced from RE. This was achieved through a combination of on site solar generation at the Group’s Malaysian facilities and 100% RE coverage for its Slovakia operations through the procurement of RECs.
The Group will continue to scale RE adoption through further onsite solar installations and other viable RE mechanisms, subject to technical feasibility, regulatory frameworks and economic considerations. These initiatives support our broader climate transition strategy and commitment to responsible energy management.

GHG Footprint

Greatech quantifies and report its GHG footprint in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. Our emissions are categorised into three scopes to provide a transparent view of our climate impact across our global operations.

Scope 1: Direct emissions

Scope 1 encompasses direct CO2 emissions from sources owned or controlled by the Group:
  • Stationary Combustion: Natural gas utilised across our offices and production floors in Ireland, Slovakia and the US and diesel consumed by stationary emergency generators for back-up power infrastructure.
  • Mobile Combustion: Diesel and petrol consumed by company-owned vehicles, lorries and material handling equipment such as forklifts.

Scope 2: Indirect Emissions (Purchased Energy)

Scope 2 emissions account for indirect CO2 emissions from the generation of purchased electricity consumed at Greatech’s facilities:
  • Location-Based Method: In alignment with the GHG Protocol, we report emissions using location-based emission factors, which reflect the average emissions factors of the area where the electricity consumption takes place e.g., Malaysia, US, Ireland and Singapore.
  • Market-Based Method: For Slovakia, Scope 2 emissions are reported using the market-based method, which reflects emissions from the specific electricity products procured through RECs, where available.

Scope 3: Other Indirect Emissions

Scope 3 emissions are a consequence of the Group’s activities but occur from sources not owned or controlled by Greatech. Currently, our Scope 3 reporting boundary includes:
  • Category 6: Business Travel: Emissions arising from employee business-related air travel.
  • Category 7: Employee Commuting: Emissions resulting from the transportation of employees between their homes and worksites.
Explore More

Water Management

Greatech recognises that water availability and quality may present physical climate-related risks to operation. While the Group’s activities are not water-intensive compared to heavy manufacturing industries, we proactively monitor water use and assess water stress as part of our broader climate-related physical risk management and environmental stewardship approach.
Water consumption within the Group primarily supports fabrication processes and building operations including washrooms, pantries, drinking water supply and fire protection systems. Our production processes do not rely on continuous or high-volume water abstraction, resulting in relatively lower water intensity and limited exposure to water-related physical risks.
The Group complies with the Environmental Quality (Industrial Effluent) Regulations 2009 under the Environmental Quality Act 1974, which prescribe minimum standards for industrial effluent discharge in Malaysia. The Group’s operations are subject to Standard B discharge limits, which apply to discharges into less sensitive receiving environments. These standards define permissible thresholds for key parameters including pH, temperature, biochemical oxygen demand, chemical oxygen demand, total suspended solids, oil and greases and selected heavy metals.
All wastewater generated from operations is monitored regularly to ensure compliance with the applicable Standard B limits prior to discharge, supporting effective water management and regulatory adherence.
Across foreign subsidiaries, water usage and waste water generation are minimal and operationally non-intensive. As such water-related risks are currently assessed as low. Regulatory compliance is maintained through reliance on public utilities and adherence to local laws. The subsidiaries are not subject to water usage restrictions. Given the nature and scale of operations, good water stewardship practices are applied operationally, including use of water efficient appliances and general adherence to environmentally responsible practices.
In FY2025, the Group assessed water-related risks across its operating locations using the Water Resources Institute’s (“WRI”) Aqueduct Water Risk Atlas. The assessment indicated that water stress levels at the Group’s key operating locations, including Malaysia, Ireland and Slovakia, are categorised as low. Based on this assessment, the Group’s operations do not pose a material risk to local water availability.
Notwithstanding the current low water risk profile, the Group adopts a precautionary and responsible water stewardship approach focusing on:
  • mproving water efficiency through conservation measures, preventive maintenance and water efficient fixtures;
  • Managing water discharges responsibly to prevent adverse impacts on human health and the environment;
  • Promoting water conservation awareness among employees through internal communications and behavioural initiatives; and
  • Applying consistent water management practices across the Group, including the use of water-saving fittings such as low flush systems.
The Group will continue to monitor changes in water stress conditions and reassess potential physical risks should operating locations, production profiles or climate conditions change.
Apart from routine maintenance, repairs and incremental upgrades to water-related fixtures, the Group did not incur any material costs arising from water-related risks during the reporting period. This includes cost associated with disruptions to water supply by local water authorities.
To enhance resilience against potential future water supply disruptions and reduce reliance on treated water sources, the Group has invested in rainwater harvesting and storage systems at its Bayan Lepas and Batu Kawan facilities in Penang. These systems support non-potable uses, such as cleaning and landscape maintenance, and contribute to improved water efficiency and operational resilience.
Explore More

Waste Management 

The Group recognises that waste generation is an inherent aspect of its operations and is committed to minimising associated environmental impacts through waste reduction, reuse and recycling where practicable.
Waste reduction is achieved through effective operational planning, procurement discipline and inventory management. By optimising purchasing based on actual needs and closely monitoring storage conditions, the Group reduces waste arising from over-procurement, obsolescence and improper handling. As a result, waste generation per unit of product is currently limited, with minimal opportunities for further reduction in the near term.
Where feasible, the Group prioritises the use of environmentally preferable materials, including biodegradable products and inputs sourced from recycled or sustainable sources. While adoption is currently constrained by operational requirements, the Group continues to explore viable alternatives to further reduce waste impacts.
The Group’s waste management practices are aligned with Malaysia’s National Solid Waste Management Policy and comply with all applicable waste disposal regulations prescribed by the DOE. An overview of the waste generated is as follows:
Explore Table

2025 Energy and GHG Performance

Hazardous Waste Management

Most of Greatech’s products are non-hazardous. For operations involving hazardous materials, primarily cutting oils and cooling lubricants used in metal fabrication, environmental risks are managed through proper labelling, technical guidance and established handling, storage and disposal procedures. Contaminated metal chips and spent fluids are classified as scheduled wastes due to their potential risk to health and the environment.
Greatech engages licensed/ certified waste management companies to collect, treat and recover these wastes in compliance with applicable local environmental regulations. Employee safety and environmental protection are reinforced through mandatory training for new hires and annual refreshers for relevant staffs, covering waste segregation, safe handling, emergency response and regulatory compliance.
In FY2025, both the absolute quantity and revenue-intensity ratio of scheduled waste SW422 and SW307 declined, reflecting improved process control, enhanced material utilisation and more efficient management of chemical-related inputs, including tighter inventory controls and waste segregation practices.
Conversely, the total volume of other hazardous waste increased from 22 tonnes to 27 tonnes during the reporting period. This increase was primarily attributable to an expanded reporting boundary in FY2025, which now includes the Group’s operation in Slovakia and Ireland. The Slovakia facility operates an on-site canteen and expanded employee welfare facilities, resulting in higher generation of ancillary hazardous waste streams, particularly water-based cleaning solutions.

The table below showcases summary based on scheduled waste code:

Waste Diverted from Disposal

Explore More

Climate-Related Disclosures (S2)

Introduction and basis of preparation

Introduction 

Greatech is committed to addressing climate change in a manner that safeguards our communities, the environment and the long-term resilience of our business. As climate-related risks and opportunities (“CROs”) increasingly influence enterprise value, we embed sustainability and climate considerations into our operations and value chain to inform strategic decision-making and long-term business continuity.
We support the objectives of the 2015 Paris Agreement and recognise the importance of coordinated global action to limit the increase in global average temperatures to well below 2°C above pre-industrial levels, with efforts to pursue a 1.5°C pathway. Our climate strategy continues to evolve in response to advances in science, regulation and stakeholder expectations, and our approach to managing CROs will adapt as climate methodologies and data improve over time. The accelerating impacts of climate change, with recent years among the warmest on record, highlight a new era of climate extremes and reinforce the urgency for decisive action by both governments and businesses to mitigate greenhouse gas (“GHG”) emissions and strengthen climate resilience. As a leading sustainable automation solutions provider, Greatech recognises both the risks posed by climate change and the commercial opportunities arising from the transition to a low-carbon and circular economy. Our automation solutions support customers in improving energy efficiency, reducing waste and advancing their own decarbonisation objectives.

The Global and Domestic Regulatory Landscape

In June 2023, the ISSB issued IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures), establishing a global baseline for high-quality, decision-useful sustainability financial disclosures. In response, the Securities Commission Malaysia (“SC”) launched the NSRF on 24 September 2024 to align domestic reporting with these international standards.
As a Large Category issuer (Main Market listed issuers with a market capitalisation of RM2 billion and above), Greatech is mandated to align its sustainability disclosures with the IFRS Sustainability Disclosure Standards for annual reporting periods beginning on or after 1 January 2025.
In 2024, we aligned our sustainability reporting with the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”). Following the establishment of the ISSB and its assumption of the TCFD mandate, we continue to enhance the consistency, comparability and decision-usefulness of our disclosures in accordance with the ISSB IFRS.
Explore More
×
Scroll to Top