Integrated Annual Report 2023

Sustainability Statement Sustainability Statement Wastewater Treatment Solutions Besides water treatment services, QL POCE business pillar also provides industrial wastewater treatment solutions through Boilermech. The solutions help our customers meeting environmental regulatory standards for their discharged wastewater. In FY2023, we successfully installed four wastewater treatment plants at customer’ sites which treated approximately 0.3 million m3 wastewater. People are the core of QL business and our people centric approach starts with our employees. Employees are the most valuable asset in QL. We build and grow our human capital by equipping them with skills and knowledge that are essential for contribution to the socio-economy of the nation alongside QL’s business growth. Upholding fair labour practices, QL is committed to nurturing a positive work culture and creating a safe, healthy and conducive work environment for our workforce. We extend our people focus to other stakeholders and the communities around us. We strengthen our business resilience to assure long-term shared value creation for our stakeholders such as suppliers and customers. Our prosperity co-depends on each other by upholding the same values. QL plays an active role in giving back to society by making a positive impact on the lives of our beneficiaries and creating an equitable future for all. One fatality and LTIFR improvement of 22.6% from FY2022 Assisted 11,942 beneficiaries via our Corporate Philanthropy collaborations at an investment of over RM835,600 Over 179,000 employee development hours Upgraded the fishing tools of 924 fishermen via RM21.84 million interest-free Fishermen Financial Assistance Scheme (FFAS) S O C I A L R E S P O N S I B I L I T Y Progress Across the Years Material Matters FY2021 FY2022 FY2023 Growing Our Business • Year-on-year increase in investing based on strategic business objectives Food Quality, Safety and Nutrition • Established a Health and Nutrition Committee • Formalised a Health and Nutrition Statement • Upheld Health and Nutrition Statement Biosecurity • Enhanced biosecurity audits to strengthen biosecurity practices • Increased biosecurity audit frequency • Strengthened product handling and logistics process • Implemented quality assurance programme • Introduced digitalised audit monitoring system • Developed of poultry academy framework Fair Labour Practices • Established Migrant Workers’ Recruitment and Treatment Guidelines • Incorporate the Human Rights and Labour Standards Policy into the Suppliers and Business Associates Code of Conduct • Employee briefings on Human Rights and Labour Standards Policy • Established Internal HR Social Compliance and Audit Checklist • Force Labour Training for HR Professionals • Commenced internal human rights due diligence audits • Reinforced “Zero Recruitment Fees” commitment when hiring migrant workers Talent Management • Commenced second batch of Accelerated Learning Process Programme • Enhanced LEAD Programme framework • Quality and quantity of employee upskilling programmes improved • Commenced third batch of the Accelerated Learning Process Programme • Continuously enhanced quality and quantity of learning and development programmes • Introduced differentiated learning approaches to all participants of the Accelerated Learning Process Programme Mangrove Conservation Programme As one of the top three carbon-capturing ecosystems, mangroves support a myriad of flora and fauna while providing economic value to riparian community. Replanting and conserving mangrove forests can help mitigate climate change issue. In collaboration with Wetlands International for the second year, QL implemented mangrove reforestation and rehabilitation programme at Banjar Utara Forest Reserve, Tanjung Karang on 3 December 2022. There were 130 participants involved in the planting activity, which comprising 80 QL employees from the headquarters and subsidiaries, 25 family members and 25 volunteers. We planted a total of 2,000 mangrove seedlings, doubled the number of seedlings in FY2022. The survival rate of the seedlings was 99% after four months. BIODIVERSITY Performance • Planted 2,000 mangrove seedlings in Banjar Utara Forest Reserve, Tanjung Karang • 99% survival rate after four months Our Approach Biodiversity is the foundation of life that includes the diversity of species, populations, and ecosystems. Urbanisation, land use and industrialisation have resulted in negative impacts on biodiversity. As a responsible agro-based enterprise, QL is aware of the profound impacts of these issues on the balance of ecosystem. Hence, we are dedicated to restoring the balance through regeneration and enhancement of biodiversity. Food & Feed Waste Generated Food & Feed Waste Converted Conversion Rate FY2021 8.89 8.68 FY2022 7.87 7.47 FY2023 9.07 8.44 97.7% 94.9% 93.0% Food & Feed Waste Generation (‘000 MT) and Conversion Rate (%) Food and feed waste generated from our manufacturing processes are recovered by our contractors. In FY2023, 8,437.36 MT of food and feed waste was converted into animal feeds or fertiliser, which is 1.8% less than the amount converted in FY2022. Mangrove planting at Tanjung Karang QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2023 SEC. SUSTA I N A B I L I TY STATEMENT 5 043 042 PG. PG.

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