Sustainability
Statement
ABOUT THIS REPORT
Scope and Boundary
This Statement covers the sustainability performance of SAMEE and its Group of companies
during the financial year ended 31 March 2024. The scope will cover the business operations
of SAMEE in Malaysia, Singapore and Thailand.
We adhere to the Sustainability Listing Requirements outlined by Bursa Malaysia and follow
the guidelines set forth in Bursa Malaysia’s Sustainability Reporting Guide 3rd edition. We
also align our disclosures with the following globally recognised standards – the 2021 Global
Reporting Initiative (“GRI”) Standards and the United Nations’ Sustainable Development
Goals (“UNSDGs”). Recognising the significance of climate risk assessment and disclosure,
we are integrating the Task Force on Climate-related Financial Disclosures (“TCFD”)
recommendations into our Sustainability Framework. This approach underscores our
dedication to enhancing transparency and accountability in managing climate risks, ensuring
our compliance and commitment to best practices.
MESSAGE FROM OUR
CHIEF SUSTAINABILITY OFFICER
As we embark on another year of progress and
commitment to sustainability, it is my honour to present
SAMEE’s seventh annual Sustainability Statement for the
financial year ending 31 March 2024 (“FY2024”).
At SAMEE, sustainability is not just a principle; it is
ingrained in every aspect of our operations. We believe
that sustainable business practices are essential for
the well-being of our planet, our communities, and
future generations. Throughout FY2024, we continued
to prioritise collaboration and engagement with our
stakeholders, recognising their invaluable role in driving
our sustainability agenda forward. Together, we have
worked to ensure that our business activities contribute
positively to the economy, environment, and society.
One of our key achievements this year was the successful
implementation of several sustainability initiatives across
our operations. From the installation of solar panels
at SAM Meerkat (M) Sdn Bhd, which has an estimated
annual carbon reduction capability of 1,178 tCO2
, to
the adoption of water conservation measures and the
transition to more environmentally friendly production
methods such as the full transition to a zirconium
production line in our Thailand operations, each initiative
reflects our unwavering commitment to sustainability.
Furthermore, we have enhanced our focus on social
engagement, fostering employee well-being while
actively giving back to the community through various
initiatives. Whether it’s organising sports tournaments,
participating in environmental cleanups, or supporting
community outreach programs, we remain dedicated
to making a positive impact beyond our organisational
boundaries.
As we reflect on our journey over the past year, it’s clear
that our efforts have not gone unnoticed. We remain
committed to upholding the highest standards of
sustainability reporting, adhering to the latest guidelines
and frameworks set forth by regulatory bodies such as
Bursa Malaysia Securities Bhd and the United Nations
via the UNSDGs.
Looking ahead, we are excited about the opportunities
that lie ahead as we continue to integrate sustainability
into every facet of our business. Our commitment to
sustainability remains unwavering, and we are confident
that through collective effort and shared responsibility,
we can build a brighter, more sustainable future for all.
Thank you for your continued support and partnership as
we strive to create sustainable value for our stakeholders
and communities.
OUR FOCUS ON SUSTAINABILITY
SAMEE is committed to conducting its businesses with the long-term view of achieving sustainable benefits for itself and
its stakeholders. Hence, we are constantly monitoring, learning, deliberating and preparing to thrive on the industry trends,
operating challenges and stakeholder expectations to produce long-term value for the Group’s shareholders, stakeholders
and the community around us. We commit to holding ourselves to the highest standards in our work and being a responsible
steward in protecting our environment and our stakeholders’ interests.
Sustainability Milestones
SAMEE has made significant progress in its sustainability journey over the past few years. SAMEE has set ambitious goals
for FY2023, encompassing several key milestones. Our target over the next 3 years was to reduce 10% of GHG emissions
intensity each year. The Company has launched several new initiatives to enhance our Economic, Environmental, Social and
Governance (“EESG”) performance, including the Water Management Plan, rainwater harvesting, operational reduction,
solar panel installation, carpooling system, recycling programmes and operational sustainability via our newly added
Zirconium line for our Thailand operation. SAMEE also focuses on improving and advancing our employees and their safety
by implementing new policies, such as the Restriction of Hazardous Substance (“RoHs”) Policy and the Employment Policy.
We experienced significant growth in our sustainability efforts and EESG milestones in FY2024 and we will continue to
prioritise our commitment to sustainability and EESG as we grow and innovate.
2015
Sustainability Policy in the Group’s corporate strategies
2016
Strategies to promote sustainability
2017
Our first Sustainability Report which address pillars of Economic, Environment and Social (“EES”) and its initiative
2018
Covered 15 material topics for sustainability
2019
Sustainability Governance Structure and alignment towards UNSDGs
2020
Emphasise on Environmental, Social & Governance as well as UNSDGs
2021
Sustaining Environmental, Social and Governance (“ESG”) and UNSDGs agenda during pandemic COVID-19
2022
Enhancing sustainability material to 16 topics
2023
Target to reduce 10% of GHG emissions intensity per year in the next 3 years
2024
Installed a solar system at SAM Meerkat and successfully transitioned to a zirconium line at our Thailand facilities which utilises non-toxic chemicals and operates at ambient temperature
Figure 1: Sustainability Milestones
Our organisation has established a robust foundation through the implementation of a comprehensive sustainability policy,
the establishment of governance structures, and alignment with the UNSDGs, resulting in notable progress within our
sustainable framework. SAMEE is poised to continue making positive contributions to sustainability efforts in the future,
with a strong focus on addressing ESG concerns and enhancing the quality of our sustainability initiatives. Currently, we
actively demonstrate our values by integrating the sustainability journey into our broader approach to ESG considerations.
Sustainability Strategy and Alignment to UNSDGs
Our sustainability framework is designed to guide our Group’s efforts to operate responsibly, reduce our environmental
impact, and contribute positively to society. SAMEE sustainability framework is built on three core pillars: ESG.
The Sustainable Development Goals (“SDGs”) of the United Nations (“UN”) for 2030 are a worldwide call to action
for addressing urgent global issues, and at SAMEE, we positively embrace them. These 17 goals serve as a roadmap
for fostering collaboration among communities, corporations, and governments to elevate sustainability practices and
collectively address pressing global challenges.
During FY2023, we conducted an internal survey with members of the Sustainability Committee Working Group (“SCWG”)
to re-evaluate the significance of our chosen UNSDGs. This assessment took into account our material matters, business
strategies, principal risks, stakeholder influence, and community impact. As a result, we identified the four SDGs most
aligned with SAMEE’s mission and objectives. Moving forward into FY2024, we affirm that these identified SDGs continue
to hold the same level of relevance to our organisation. The four (4) SDGs that were identified as the most relevant are as
follows:
Table 1: SAMEE’s Top Four (4) SDGs
| Sustainable Development Goals | Definition | Key Stakeholders Impacted | Targets |
|---|---|---|---|
|
Ensure healthy lives and promote well-being for all at all age |
|
|
|
Promote sustainable economic growth, full and productive employment and decent work for all |
|
|
|
Take urgent action to combat climate change and its impacts |
|
|
|
Ensure sustainable consumption and production patterns |
|
|
Sustainability Governance Structure
(GRI 2-9)
At SAMEE, we place utmost importance on fostering a robust and functional governance structure. Our governance
framework is designed to uphold principles of transparency, accountability, and clarity in roles and responsibilities. By
ensuring effective decision-making processes, we empower our teams to develop and implement sustainable strategies
with confidence. This commitment to a strong governance structure not only guides our actions but also reinforces our
dedication to responsible and ethical business practices, ultimately contributing to our organisation’s long-term success
and resilience.
SAMEE acknowledges the significance of sustainable
governance and integrates it into all operations
and procedures. SAMEE’s established governance
framework enhances stakeholder value across business
and sustainability dimensions. We embed sustainability
into our daily strategies, collaborating with employees,
partners, shareholders, government entities, customers,
communities, and the media to drive sustainability
efforts. Our dedication to continue to improve
appropriate governance structures and processes,
ensuring adherence to high moral standards and full
compliance with relevant laws and regulations in all
operational jurisdictions.
Sustainability Approach
(GRI 3-1)
At SAMEE, our Sustainability Policy is anchored on the
principles of the EESG pillars of sustainability. We place
particular emphasis on governance to underscore our
commitment to sustainability. Our approach involves
integrating economic, environmental, social, and
governance considerations into our daily operations.
Moreover, we align our actions with the SDGs, ensuring
that our sustainability initiatives contribute to global
progress towards a more sustainable future.
We involve our stakeholders to achieve our business
goals and sustainability. We are focused on developing
processes towards caring for our environment,
enhancing social inclusivity and good governance for the
betterment of future generations.
In our efforts to promote sustainability internally,
we ensure that all stakeholders are well-informed
about our commitment to sustainability. This includes
organising relevant workshops and talks specifically
tailored for key internal stakeholders, such as heads
of divisions and departments. Furthermore, we have
incorporated our sustainability approach and initiatives
into our orientation program for new employees. This
ensures that from the outset, all staff members have a
comprehensive understanding of SAMEE’s sustainability
goals and initiatives.
We actively promote our sustainability principles
and practices to foster awareness, comprehension,
commitment, action, evaluation, and monitoring among
our leaders and both internal and external stakeholders.
By emphasising these essential steps, we strive to
collectively achieve our sustainable goals.
Sustainability Framework
Board Governance on EESG
Strategy
- EESG Risks and opportunities integrated into SAMEE’s long-term strategy
- EESG performance of monitoring, i.e., milestones and goals
Messaging
- Ensure alignment of EESG messaging and activities with the company’s purpose and shareholders’ interests
Risk Assessment
- Oversight on sustainability materiality
- Allocation of oversight of the risks to full board/individual committees
Reporting
- Communication platform for the company’s EESG disclosure
Figure 3: Sustainability Framework and Board Governance on EESG
Stakeholder Engagement
(GRI 3-1)
Engaging a diverse stakeholder, encompassing businesses, organisations, government authorities and individuals that are
involved in our daily operations and long-term planning is a practice that SAMEE is dedicated to doing continually and
effectively. We firmly believe that transparent communication is the cornerstone of building trust with stakeholders. This
approach allows us to share our vision and unwavering commitment to sustainability, which we consider essential for the
success and resilience of our business as we pursue our growth objectives.
In our journey towards achieving our long-term business objectives, we have assessed, prioritised, and actively engaged
with our stakeholders. This comprehensive approach ensures that we have acknowledged and taken into consideration
all relevant parties in shaping our sustainability initiatives and business strategy. By valuing the input and perspectives of
our stakeholders, we are able to develop a robust plan that aligns with our vision for a sustainable future and drives the
realisation of our business goals.
Our current stakeholder engagement approach is as follows:
Table 2: SAMEE’s Stakeholder Engagement
| Stakeholders | Areas of Interest / Concerns | Engagement Channels | Sub-Group | Frequency |
|---|---|---|---|---|
| Internal Stakeholders | ||||
| Employees / Management / Directors |
|
|
|
|
| Shareholders / Investors |
|
|
|
|
Materiality Assessment
(GRI 3-1)
SAMEE performed a materiality assessment during the financial year ended 31 March 2022. The materiality assessment
ensures that material matters are relevant and will remain relevant until the next materiality assessment. During this period,
material topics were sent to directors and other key stakeholders for review. This approach to managing the sustainability
risks and opportunities posed to our business and helps us in ensuring that we prioritise the issues that have the greatest
impact on the economy, society and the environment.
In FY2024, SAMEE revisited its previously identified material topics to ensure they remain relevant and reflective of
stakeholder concerns through our Sustainability Committee. By periodically refreshing our views on material topics, we
enhance our responsiveness to emerging sustainability risks and opportunities. This iterative approach reinforces our
commitment to transparency and stakeholder engagement in our sustainability reporting practices.
Step 1: Identify
Identified material topics reflecting
their utmost relevance to our business.
Surveys were administered to directors,
key stakeholders, selected suppliers, and
designated employees.
Step 2: Prioritisation
Reviewed and discussed internally
through an internal sustainability
workshop and focused discussion to
determine the material topics aligning
SAMEE’s most relevant and impactful
issues.
Step 3: Validation
Validation of prioritised material topics
with Risk and Sustainability Committee
(“RSC”).
Prioritised material topics presented
to the Board of Directors and sought
approval.
This FY2024, the management has reaffirmed the relevance of the existing 14 material topics, maintaining consistency
with the previous reporting period. This strategic decision underscores our steadfast commitment to addressing the most
pertinent and impactful issues facing our operations. This reaffirmation ensures that our reporting efforts remain aligned with
key areas of concern, demonstrating our dedication to transparency and accountability in addressing critical sustainability
challenges.
- Customer Satisfaction & Relationship
- Product & Service Quality
- Economic Performance
- Supply Chain Management
- Cybersecurity & IT Resource Management (ERP System)
- Technology, Innovation & Development
- Waste & Hazardous Materials Management
- Climate Change & Environmental Issues
- Energy Management
- Employee Well-Being Health & Safety
- Ethics & Compliance
- Labour Practices & Rights
- Attracting, Developing, Rewarding & Retaining Employees
- Employee Learning & Development
Figure 4: Our top 14 material topics
Targets of Our ESG Material Topics
(GRI 3-2, 3-3)
Table 3: ESG Material Topics, Targets and FY2024 Performance
| ESG Material Topics | Our Target | FY2024 Performance |
|---|---|---|
| Employee Well-Being Health & Safety | To reduce the number of man-hour-lost per employee from work hazards by 20% by 2025 and 30% by 2030 |
Lost Time Incident Rate (“LTIR”) of 0.35
SAMEE surpassed the target with a 79% reduction in man-hour-lost compared to a FY2023 baseline |
| Labour Practices & Rights |
To protect labour rights and promote safe and
secure working environments for all workers,
including migrant workers by having enhanced
policy and awareness by complying with RBA
labour rights requirements in the following areas:
|
SAMEE received zero complaints on human rights
during FY2024
SAMEE further enhanced our due diligence on our local & overseas agents to ensure no forced labour throughout our recruitment process of migrant workers SAMEE has provided awareness training on RBA requirements to all its employees and new intakes |
| Climate Change & Environmental Issues | To reduce 10% of GHG emissions intensity per year in the next 3 years |
SAMEE did not achieve this target. This is due
to our Thailand facilities are yet to achieve
economical scale in revenue
The target to install solar panels for FY2024 has been achieved towards the end of FY2024, providing only a one (1) month impact |
| Waste & Hazardous Materials Management |
|
SAMEE has ensured compliance with RoHS and Conflict Mineral regulations |
Table 4: ESG Material Topics and FY2024 Achievements
| ESG Material Topics | FY2024 Achievements |
|---|---|
| Customer Satisfaction & Relationship |
|
| Ethics & Compliance |
Anti-corruption:
|
| Economic Performance | During FY2024, SAMEE contributed a total of RM86,500 in community investments. |
| Attracting, Developing, Rewarding & Retaining Employees | 100% completion of RBA training for all employees including new joiner |
| Energy Management |
|
| Product & Service Quality | Through our Quality Incentive Scheme program, we have achieved an increase of 22% in incentive payouts in FY2024 Q4 vs Q1, and a 15% increase in FY2024 from FY2023. |
| Technology, Innovation & Development |
|
| Employee Learning & Development | SAMEE achieved an average of 60 training hours per employee in FY2024 |
| Supply Chain Management | SAMEE has achieved a total of 47% of their procurement spending towards local suppliers. |
| Cybersecurity & IT Resource Management (ERP System) | In FY2024, there was zero personal data protection incidents and losses of customer data. |