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SUSTAINABILITY STATEMENT

Environment

At SAMEE, we believe that protecting the environment is a responsibility that we all share. We are committed to reducing our environmental impact, conserving natural resources, and embedding sustainability across our business. The Group adopts an integrated approach to manage its climate change and environmental impacts, aligning operational practices with regulatory requirements and broader sustainability objectives. This includes a focus on resource efficiency, emissions management and responsible use of natural resources across all sites, while supporting alignment with Malaysia’s national sustainability priorities.

This approach is implemented through four core areas:

  1. Emissions Measurement and Reduction
  1. Environmental Monitoring and Performance Tracking
  1. Energy Transition and Efficiency
  1. Stakeholder Engagement and Transparency
Ongoing tracking of Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions, with gradual expansion into relevant Scope 3 categories where data is material and reliable. Monthly monitoring of key indicators, including energy consumption, water use and waste generation, to support performance evaluation and compliance. Deployment of solar photovoltaic (“PV”) systems and site level energy efficiency improvements to reduce operational emissions. Strengthening disclosures in line with Bursa Malaysia requirements and alignment with IFRS S2 and Global Reporting Initiative (“GRI”) standards.

CLIMATE CHANGE AND ENVIRONMENTAL ISSUES

Climate-related and environmental considerations are integrated into SAMEE Group’s operational management framework, guiding the management of emissions, energy, water, waste, and natural resources.
Climate Management
Guided by our Environmental Policy, climate-related and broader environmental risks, including resource constraints, regulatory changes, and ecosystem impacts, are integrated into the Group’s annual Enterprise Risk Management (“ERM”) process. This enables a structured approach to identifying, assessing, and monitoring physical and transition risks while supporting proactive environmental management.
SAMEE continues to strengthen its climate-related disclosures by progressively in alignment with TCFD recommendations, while maintaining IFRS S2 and GRI reporting requirements. Through this, we aim to provide stakeholders with clear, consistent, and decision-useful insights into how we identify, manage, and respond to climate- and environment-related challenges. For more details, please refer to the ISSB Sustainability Statement section on page 76.
The Group’s environmental approach is also supported by participation in key industry associations, including MSIA, FREPENCA, PSDC and MEF, which facilitate engagement on EESG matters, regulatory developments and disclosure practices. The Group reviews alignment between its environmental commitments and the positions of these industry bodies and will take appropriate action should any misalignment arise. For more details, please refer to the Associations and Memberships section on page 38.
In addition, SAMEE Group actively supports public policy initiatives related to environmental management, such as the Penang2030 framework. This commitment is demonstrated through ongoing solar panel installation projects and the gradual rollout of electric vehicle (“EV”) charging infrastructure.

Emissions Scope and Boundary 

The Group measures GHG emissions in accordance with the GHG Protocol, covering Scope 1, Scope 2 and selected Scope 3 categories. This supports the Group’s long-term strategy, carbon management efforts and preparedness for potential regulatory developments, including future carbon taxation.
Scope 1 Direct Emissions
Scope 2 Indirect Emissions
Scope 3 Other Indirect Emissions

Scope 1: Direct Emissions

Scope 1 emissions arise from sources directly owned or controlled by SAMEE, primarily from on-site fuel use.

Data Sources

Fuel purchase records for process heating, equipment, and vehicle fleets, including receipts and invoices for diesel, petrol, and LPG used in company-owned vehicles.

Calculation Methodology

Fuel-based methodology where fuel consumption was multiplied by the corresponding greenhouse gas emission factors provided by UK’s Department for Environment, Food & Rural Affairs (“DEFRA”) (2025/2026).

Data Coverage

FY2024 – 2026

All sites across the Group were covered, representing 100% data coverage across the Group.

Scope 2: Indirect Emissions

Scope 2 emissions result from the electricity purchased and consumed in SAMEE operations.

Data Sources

Monthly electricity bills from utility providers.

Calculation Methodology

Electricity consumption data was multiplied by the corresponding greenhouse gas emission factors for the Malaysia region provided by the Malaysia Energy Information Hub (“MEIH”) (2024), while emission factors for the Singapore and Thailand regions were sourced from Enerdata (2023).

Data Coverage

FY2024 – 2026

All sites across the Group were covered, representing 100% data coverage across the Group.

Scope 3: Other Indirect Emissions

Scope 3 emissions occur from indirect sources across the value chain. The following categories were captured:

Category 6

Business Travel

Data Sources: Flight travel and overnight stay records. Note: Land-based travel is currently excluded as it represents a minimal portion of the Group’s travel footprint.

Calculation Methodology: Distance-based and “stay-in” methodology where travel records were multiplied by the corresponding greenhouse gas emission factors provided by DEFRA 2025 for air travel and country-specific hotel stay factors for overnight stays.

Category 7

Employee Commuting

Data Sources: Employee survey capturing transportation modes and travel distances.

Calculation Methodology: Distance-based methodology where travel records were standardised to distance travelled and multiplied by the corresponding greenhouse gas emission factors provided by DEFRA 2025 based on the mode of transportation.

Data Coverage (Cat 6 & 7)

FY2024 – 2026

All sites across the Group were covered, representing 100% data coverage across the Group.

Emissions Performance and Tracking

Scope 2 GHG emissions constitute the largest share of our total emissions, reflecting the energy-intensive nature of our operations. Variations in GHG emissions levels and intensity across reporting periods are due to changes in production activity, operational expansion, energy consumption patterns, and revenue performance, as emissions intensity is calculated relative to revenue.
The Group has established long-term targets to reduce Scope 2 GHG emissions intensity relative to the FY2023 baseline and to generate 10,000 MWh of renewable energy annually by FY2030. Progress towards the renewable energy target may be influenced by factors such as solar irradiance, weather conditions, system availability, and operational efficiency.
To enhance reporting accuracy and alignment with industry practices, SAMEE refined its Scope 1 and Scope 2 GHG emissions calculation methodology by updating the selection and application of emission factors based on prevailing methodologies adopted by listed utilities and infrastructure companies in Malaysia and comparable regulated markets.
To enable meaningful year-on-year comparison, the Group performed a like-for-like analysis using the prior-year emissions calculation basis. On this comparable basis, Scope 1 GHG emissions decreased by 12% from 246 tCO2e in FY2025 to 217 tCO2e in FY2026, while Scope 2 GHG emissions decreased by 7% from 36,810 tCO2e to 34,111 tCO2e. The FY2026 Scope 2 emissions figure reported in the table differs as it applies the updated FY2026 emission factor methodology disclosed above. These improvements demonstrate the Group’s continued progress in managing emissions while transitioning towards more comprehensive reporting practices.
EXPLORE EMISSION DATA

GHG Emissions Reduction Initiatives

To advance its climate ambitions, SAMEE Group implements emissions reduction initiatives combining operational controls, infrastructure upgrades and engagement programmes. Scope 1 emissions are managed through operational controls across all sites, with particular focus on direct fuel use in manufacturing and facilities operations.

Short-Term Strategy:
Operational Control and Variance Management

Routine monitoring of fuel consumption, reasonability checks, and review of variances against operational drivers such as process changes, facility upgrades or commissioning activities to maintain emissions within expected ranges and identify improvement opportunities.

Long-Term Strategy:
Structural Reduction Through Efficiency and Fuel Optimisation

Reduction of emissions through process efficiency improvements, fuel optimisation and evaluation of opportunities to reduce direct fossil fuel combustion where feasible. Performance is assessed through trend analysis against operational drivers rather than fixed quantitative targets.

ENERGY MANAGEMENT

At SAMEE Group, we are committed to minimising environmental impacts via robust conservation measures and renewable energy integration. We strategically prioritise improving energy efficiency and advance this commitment with energy audits, energy-efficient technologies, and ongoing optimisation of facility designs.

Energy Sources and Operational Footprint

Our business operations, particularly precision manufacturing, are energy-intensive and rely primarily on purchased grid electricity to support manufacturing lines, utilities and office operations. Key uses include machining, thermal processes, HVAC, compressed air, general utilities and lighting.
To enhance energy resilience and diversify our energy mix, we are progressively integrating on-site solar energy generation across selected facilities. In addition, the Group utilises direct fossil fuels, such as diesel, petrol, and liquefied petroleum gas (“LPG”), to support process heating, heavy equipment operations, and logistics vehicle fleets.
EXPLORE ENERGY PERFORMANCE

WATER MANAGEMENT

At SAMEE Group, water is managed as a shared resource in line with operational requirements, regulatory obligations, and the Group’s commitment to resource efficiency, conservation, and pollution prevention.

Water Consumption

As part of our commitment to resource efficiency, we track water usage across all operational sites using meter readings and utility data, enabling continuous monitoring of consumption trends and the effectiveness of water efficiency initiatives.
In FY2026, the Group recorded municipal potable water withdrawal of 277.5 megalitres and a water withdrawal intensity of 0.19 megalitres/RM’mil, no change compared to FY2025. This improvement was primarily driven by ongoing site-specific water efficiency initiatives, which continue to be expanded to further optimise consumption.
MORE ON WATER STEWARDSHIP

WASTE AND HAZARDOUS MATERIALS MANAGEMENT

Waste and hazardous materials management is an integral part of SAMEE Group’s environmental stewardship approach. The Group is committed to minimising environmental impact through waste reduction at source, process optimisation, and compliance with applicable regulations across Malaysia, Singapore, and Thailand.
Operational teams implement site-specific procedures aligned with local regulatory requirements, with emphasis on waste segregation, controlled handling of scheduled waste, and disposal through licensed contractors. These controls ensure full traceability and safeguard environmental and human health.

The Group’s waste management approach is supported by four core pillars:

  • Waste minimisation and source reduction through frontline system upgrades and process redesign;
  • Compliant hazardous waste handling with full traceability;
  • Recycling and resource recovery in collaboration with licensed partners;
  • Employee training and behavioural programmes to strengthen environmental awareness.
The Group also acknowledges that increasing material consumption and production activity can contribute to broader environmental pressures, including resource depletion, waste generation, and associated upstream emissions. These considerations are embedded in our operational decision-making, particularly in process design, material selection, and waste handling strategies.
MORE ON RESPONSIBLE WASTE MANAGEMENT
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