Sustainability Statement Sustainability Statement In line with QL’s business and sustainability objectives, QL has broadened our business scope by investing in BM Greentech Berhad, a company specialising in solar and biomass renewable energy engineering, as well as water treatment systems and emission control. This strategic expansion allows us to provide a wider array of clean energy solutions to both our Group and customers. In the reporting year, we facilitated the installation of: • Approximately 26.0 megawatt peak (MWp) of solar panel capacity across a total of 800 projects. • 6 wastewater treatment plants at customers’ sites which treated approximately 1.6 million m3 wastewater. • 21 new water treatment systems at customers’ facilities with an approximate treatment capacity of 1.6 million m3 raw water. Sustainable Environmental Solutions Enabler Chicken Manure Recovery (000 MT) Organice Fertiliser Other Usage 123.43 10.89 We address food waste issue in accordance with the principles of the food waste hierarchy. Prioritising in directing surplus food to vulnerable communities as our next preferred strategy, we divert cosmetically imperfect food from landfills and redistribute it to those in need through Kechara Soup Kitchen. In FY2024, we donated a total of 6,335.55 kg of food to underprivileged groups. This food redistribution programme reduces our food waste contributing to environmental sustainability by conserving resources and reducing greenhouse gas emissions. Biodiversity • Planted 2,000 mangrove seedlings with 95% survival rate after seven months • Our palm oil estates and mill in Malaysia are MSPO certified • 88.2% of palm oil produced is certified with MSPO Biodiversity is the sustenance of life that includes the diversity of species, populations, and ecosystems. Alterations in land use, and industrialisation have adversely affected biodiversity. As a responsible agro-based enterprise, QL acknowledges the profound impact of these issues on balance of ecosystem. Therefore, we are dedicated to revitalising this balance through biodiversity regeneration and enhancement. Performance Our Approach B Mangrove Conservation Programme Recognised as one of the top three ecosystems for carbon sequestration, mangroves sustain a rich diversity of flora and fauna while providing economic benefits to local communities. Restoration and conservation of mangrove forests can help in combating climate change and its impacts. In partnership with Wetlands International for the third consecutive year, QL and BM Greentech Berhad carried out a mangrove reforestation and rehabilitation activity at Banjar Utara Forest Reserve, Tanjung Karang, on 14 October 2023. A total of 122 participants were involved in the planting activity, consisting of 92 employees and family members, along with 15 representatives from the forestry department and 15 volunteers. In total, 2,000 mangrove seedlings were planted. Notably, the survival rate of these seedlings reached an impressive 95% after seven months. Mangrove Planting at Tanjung Karang Mangrove saplings showing healthy growing condition after seven months Commitment Towards Sustainable Palm Oil Our commitment towards sustainable palm oil is evidenced by securing the Malaysian Sustainable Palm Oil (MSPO) certification for QL palm oil estates and mill. MSPO is a national certification standard created by the Malaysian government in the palm oil industry. To ensure sustainable palm oil production, this certification requires QL adhere to good agricultural practices such as responsible protection of high conservation value areas and high carbon stock forests, avoidance of deforestation and illegal land clearing, responsible land management, traceability of palm oil products throughout the supply chain. In FY2024, 88.2% of palm oil produced by QL is certified with MSPO. Guiding Principles for Environmentally Responsible Supply Chain QL has crafted a Supply Chain Policy to establish a set of guidelines governing procurement activities of QL and our suppliers who conduct business with us and on behalf of QL for implementation of a sound supplier management process. Aimed at promoting environmental stewardship, social equity and regulatory compliance, the policy outlines QL’s commitments in working with our suppliers on environmental and social sustainability aspects. While QL strives to reduce our ecological footprint of operations, our suppliers are similarly expected to conduct their operations in an environmentally responsible manner. They are encouraged to sustainably manage the use of energy, water and other resources; proactively reduce environmental issues such as pollution, waste, climate change and biodiversity impacts. Bolstering Biosecurity Measures Biosecurity remains paramount at QL farms to safeguard the health and well-being of poultry and mitigate the spread of diseases. Our biosecurity initiatives undertaken in FY2024 focused on quality assurance, training, and groundwork for laboratory accreditation. Building upon the successful implementation of the quality assurance programme at layer farms in previous fiscal year, we expanded the programme to include breeder and broiler farms in FY2024. In terms of training and development, QL Poultry Academy was inaugurated at two farms to enhance employees’ comprehension and adherence to biosecurity protocols. Additionally, as part of our commitment to ensuring the quality and reliability of our laboratories, we commenced preparatory work for laboratory accreditation. Supply Chain (Environment) • 49 biosecurity audits in 20 farms • 5.2% increase in biosecurity audit average score from previous year Effective management of ESG factors is essential for ensuring sustainable supply chain operations. This approach not only enhances our business value and growth but also benefits the environment and society. Therefore, QL strives to practice a responsible supply chain management process that minimises environmental impacts and at the same time fosters socially responsible management of suppliers and procurement activities. Performance Our Approach SCE QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2024 48 49 SUSTAINABILITY STATEMENT 5 SEC.
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