INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD INTEGRATED ANNUAL REPORT 2025 • QL RESOURCES BERHAD pg.48 pg.49 03 04 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 03 04 05 06 07 08 01 ABOUT THIS REPORT QL AT A GLANCE CHAIRMAN’S STATEMENT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT LEADERSHIP & GOVERNANCE FINANCIAL STATEMENTS APPENDICES 02 SUSTAINABILITY STATEMENT SUSTAINABILITY STATEMENT Mangrove Conservation Programme Mangroves play a crucial role in supporting biodiversity, acting as natural habitats for numerous marine and terrestrial species while protecting coastlines and maintaining ecological balance. In line with our commitment to conservation of important ecosystem, we set a Group-wide target in FY2022 to plant 10,000 mangrove saplings. Continuing our efforts, on 19 October 2024, we planted an additional 2,000 saplings in collaboration with the Selangor State Forestry Department and Wetlands International. This brought the cumulative total under our mangrove planting initiative to 7,000 saplings. The planting involved 133 participants, including 113 QL employees and their family members, along with 20 representatives from the Selangor State Forestry Department. After six months, the survival rate stood at 97%. To further support the healthy development of these mangroves, we have increased our monitoring frequency from biannual to monthly. This proactive approach allows us to promptly address any emerging issues, ensuring the saplings thrive and deliver long-term environmental benefits. At East Malaysia, our long-standing mangrove conservation work in Sabah has also made a significant impact. Since 2015, we have been working with the Sabah State Forestry Department on mangrove restoration initiative in Kudat. Over the years, it successfully resulted in the planting of more than 10,300 saplings, significantly contributing to shoreline protection and the rehabilitation of critical coastal ecosystems. Mangrove Planting at Sabak Bernam Biodiversity Performance • Planted 2,000 mangrove seedlings with 97% survival rate after six months • 92.9% of palm oil produced is certified with MSPO Our Approach Biodiversity, encompassing a wide range of species, populations, and ecosystems, is vital to sustaining life. However, anthropogenic activities and climate change have cause urbanisation, land use changes, and industrialisations, leading to adverse impacts on natural habitats. As a responsible agro-based enterprise, QL recognises the importance of conserving biodiversity such as fish stock or livestock as the species and genetic conservation is key to maintaining ecological balance. A thriving environment with rich self-regenerating natural resources is a crucial determining factor in sustaining our business in the long run. B Commitment Towards Sustainable Palm Oil In FY2025, 92.9% of the palm oil produced by QL was certified under the Malaysian Sustainable Palm Oil (MSPO) certification scheme. This reflects our commitment to responsible palm oil production practices, ensuring that our operations meet national sustainability standards related to environmental protection, social responsibility, and economic viability. Commitment to Sustainable Seafood: MSC Certification In FY2025, QL Foods has obtained the Marine Stewardship Council (MSC) certification, reflecting our commitment to sustainable seafood sourcing. This certification assures that our seafood products come from well-managed fisheries that meet rigorous environmental standards. As the MSC endorses responsible fishing practices that protect the future of our oceans and fish stocks, this aligns with our sustainability aspiration of conserving fishery resources while offering our customers with trusted products. Strengthening Environmental Accountability Across Our Supply Chain In alignment with our Supply Chain Policy, we have reinforced our commitment to managing ESG risks throughout our supply chain by revising the Code of Business Ethics for Suppliers and Business Associates. The updated code outlines clearer expectations for environmental accountability, including pollution prevention, resource efficiency, and environmental impact mitigation. Suppliers are encouraged to identify, monitor, and minimise their environmental and carbon footprint. To ensure the code is effectively implemented, we introduced a self-assessment form designed to evaluate suppliers’ environmental practices. This initiative was first rolled out to a group of identified high-risk suppliers, of which 80.8% met the environmental requirements outlined in the code. Bolstering Biosecurity Measures Biosecurity continues to be a cornerstone of our farm operations, ensuring the health and welfare of our poultry while minimising disease risks. Building on the progress made in previous financial year, our biosecurity initiatives in FY2025 focused on advancing infrastructure and driving innovation. To enhance on-farm biosecurity controls, QL began preparatory work to upgrade vehicle spray and shower facilities to improve the effectiveness and efficiency of disinfection procedures for all incoming and outgoing traffic. This work is an essential measure to reduce the risk of external contamination. Additionally, we initiated planning and site preparation for a crate washing facility to support the depopulation of chickens, ensuring that transport equipment used during disease outbreaks can be thoroughly cleaned and sanitised. Furthermore, ozone disinfection trials were launched to support higher hygiene standards and enhance operational resilience. Supply Chain (Environment) Performance • 50 biosecurity audits in 20 farms • 0.02% increase in biosecurity audit average score from previous year Our Approach Effectively managing ESG factors is critical to maintaining a sustainable and resilient supply chain. By integrating this principle, we do not only support long-term business growth and value creation but also contribute positively to the environment and society. As such, QL is committed to implementing responsible supply chain practices that reduce environmental impact while promoting ethical and socially responsible supplier and procurement management. SCE
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