Environment



Environmental Management

ISO 14001 maps out a framework that allows an organisation to follow in setting up their organised environment management system to demonstrate compliance with current statutory and regulatory requirement and improve environmental performance through efficient use of resources and reduction of waste.


To support our journey in reducing environmental footprint and achieve environmental sustainability, the Group has been getting all its subsidiary companies to progressively obtain ISO 14001 certification starting from SSB in year 2011. Although the downstream operations in the Group have less impact on the environment when compared to the upstream business, the Group strongly believes that every single effort placed for environment sustainability will in one way or another contribute to the betterment of the environment. With the commitment, hard work and dedication, 67% of the companies in the Group are now certified with ISO 14001 with the exception of SPIM and SSP, which are currently preparing for their audit and certification.


The Group is of the opinion that protecting the environment is the responsibility of everyone. We have included Environmental Awareness Training as part of the onboarding program for newly recruited staff and contractors, so that they are well informed before commencing their work. We also conduct refresher training for ISO 14001 Environmental Management System to build long-term retention in the minds of the staff and to keep the whole environmental culture in place.


All the ISO 14001 certified companies in the Group undergo annual internal audit by our internal environmental auditors and external audit by the external certification body to ensure that the management system is effectively implemented and continual environmental improvement process is in place.


The dedication in environmental management and concerted effort of the Group is paid-off when the Group retained zero environmental fines and penalties for FY 2023.


Among the companies in the Group, the processes in SSB comparatively have far more impact on the environment. In view of this, SSB has diligently planned and practiced monthly environmental Genba walk and raised observation points to operational personnel with the objective to enhance environmental sustainability through continuous monitoring and follow up.


Environmental Observations

Scheduled Waste Genba walk/Audit on 23rd February 2023 (Rolling Mill 2), 23rd March 2023 (Rolling Mill 4) and 28th April 2023 (Steel Making Plant 1)

No
Area
 Before
Action Taken
PIC & Deadline
Status
 After
1

RM2 SW305

Used lubrication oil

Good practices with temporary oil lubrication drums put inside a tray (new fabricated) to contain oil spillage on the floor, if happened. Previously, this area need to be cleaned up with saw dust.

Not requiredNot applicable
Keep it up Not applicable
2 RM4 SW204 Sludge storage area

Inventories were properly kept in schedule waste storage area and completed with label which follow Scheduled Waste Regulation.

Not required
Not applicable
Keep it up
Not applicable
3 SMP1 Wind breaker netting

Low layer of wind breaker netting damaged due to durability issue.

Replaced the netting with better material
Heng CH / 2 Months
Closed

Done installed with wall cladding at low layer area.


Response to Climate Change

Climate change is an issue of concern that needs immediate attention and mitigation actions by all stakeholders. This issue is further exacerbated by industries that emit huge amounts of carbon dioxide into the atmosphere which includes steel manufacturing activities.


The Group apprehends the importance of climate change and aspires to contribute in mitigating climate change by reducing our environmental footprint as stated in our environmental policy statement. SSB is the key focus of the Group as more than 90% of the GHG emissions of the Group are from SSB.


Our GHG Emissions

In FY 2022, the Group took its first step in GHG emissions reporting by disclosing Scope 1 and Scope 2 emissions of SSB’s operations only. For FY 2023, we proudly announced that we have managed to achieve our last year’s aim to expand the scope of reporting to include our subsidiary companies. Our GHG emissions calculations now cover 100% of our sites in Malaysia.


The Group refers to ISO 14404 (Calculation method of carbon dioxide emissions intensity from iron and steel production) and World Business Council for Sustainable Development and World Resources Institute (“WBCSD/ WRI”) GHG Protocol to calculate the GHG emissions. Both standards are internationally accepted standards with credible emission factors and are recognised (parts as applicable) by certification programs such as ResponsibleSteel. For upstream operations, the Group uses ISO 14404 to measure Scope 1 and Scope 2 emissions while for downstream operations, the Group uses GHG protocol to quantify Scope 1 and Scope 2 emissions.


For the calculation of Scope 2 emissions in FY 2022, the Group utilised the Grid electricity Emission Factor (“GEF”) of Peninsular Malaysia which was reported in ‘2017 Clean Development Mechanism (“CDM”) Baseline for Malaysia’. The report was prepared by Malaysian Green Technology Corporation (“GreenTech Malaysia”). For FY 2023, we changed our grid emission factor reference to Peninsular GEF (2017-2019) released by Malaysia Energy Information Hub (“MEIH”) in 2022. MEIH is a portal managed by the Energy Commissions (“EC”) of Malaysia. Due to the new GEF being higher than the previous value, we have also revised our calculations for FY 2021 and FY 2022.



The graphs below show the Scope 1 and Scope 2 GHG emissions of SSB, the Group’s upstream operations. Being a steel making company which only utilises EAF in its production of steel, SSB’s GHG emissions are mainly contributed by indirect emissions from purchased electricity (Scope 2). Our Scope 2 emissions account for more than 50% of the total emissions for upstream.



The graph below shows the Scope 1 and Scope 2 GHG emissions of the Group’s downstream (SSM, SPIM & SSP and SPC) operations:


Our Initiatives

The GHG emissions of scrap based EAF is comparatively 2 to 4 times lower than steel mills that utilise blast furnace (“BF”) or blast oxygen furnace (“BOF”). The shift from BF-based to EAF-based steel making is currently part of the industry’s decarbonisation drive and strategy around the globe. As of today, scrap based EAF remains as a greener option among the available iron and steel making technologies. EAF can use up to more than 90% of recycled steel scrap, depending on the availability of raw materials and requirements of the finished products.


SSB, as a responsible steel maker, demonstrates our support to mitigate climate change by continuing to utilise EAF for steel making. As described in section 5.3.6, SSB is practising circular economy by using EAF steel making to maximise the use of steel scrap and reduce depletion of natural resources, thereby contributing to the reduction of global GHG emissions.


As the operations in the Group normalised in the 2nd half of year 2021, SSB has selected FY 2022 as the baseline year for GHG emissions and set a target to reduce GHG emissions intensity by 12% by FY 2025. 


The graph below shows the GHG emissions intensity of SSB. The calculation of the GHG emission intensity is guided by ISO 14404-4, Boundary 2.


SSB’s GHG emission in FY 2023 increased by 5.9% as compared to base year FY 2022 due to the increase in production output, however, we managed to reduce our GHG emissions intensity by 17.8%. This is attributed by steel making product mix which enables the use of 94% of steel scrap with a small quantity of coal material replacement and process optimisation projects which combined in-depth steel making experience and automation technology.


Though SSB has achieved the target to reduce GHG emissions intensity by 12% in FY 2023, SSB plans to sustain its GHG emissions intensity until the next target review as steel scrap is becoming scarce as a result of dynamic shift of demand of steel scrap and changing market requirement, where product mix will change accordingly.


For downstream, electricity is also the biggest contributor for our GHG emissions. The Group has selected FY 2023 as the baseline year of GHG emission and is currently exploring transition into green energy.


The Group has also put in place a group wide energy management program as described in section 5.3.4 to reduce energy consumption via various internal efforts. In addition, we make concerted efforts to disseminate climate change awareness amongst the employees by conducting ‘GHG Emissions Awareness Training’ to all employees including the management team. The Group also sends representatives to attend seminars/webinars regarding sustainability hosted by Federation of Malaysian Manufacturers (“FMM”) or Malaysian Iron and Steel Industry Federation (“MISIF”), of which the Group is a member.


Aside from that, the Group continues to improve on the monitoring of its GHG and air emissions, water management and waste management to reduce the impact of climate change. The Group is also looking into preparing for the reporting of Scope 3 emissions. We are starting to prepare for the data collection of 2 categories of Scope 3, which are Employees’ Commute and Business Travel. Both categories are included in Bursa Malaysia’s Enhanced Sustainability Reporting Framework.


SSB, as the biggest GHG emitter in the Group, also participated and became a part of global effort to mitigate climate change by contributing information for the preparation of Malaysia’s Fourth Biennial Update Report (“BUR4”) and participated in UNIDO’s Online Discussion on Industry Deep Decarbonisation in FY 2023. SSB also signed up to become a supporter for TCFD, committed to take action against climate change and considering the impact of climate change on SSB’s business.


Transition Towards TCFD

FY 2023 marked a new milestone for the Group’s commitment in climate change. In the 3rd quarter of FY 2023, the SSC has formed a Working Committee (“WC”) to understand and work on the disclosure according to the recommendations of TCFD. TCFD is a global consultative body established in year 2015 to disclose climate change-related information.


The WC has studied the 4 pillars of TCFD framework and performed initial climate related risks and opportunities assessment as well as initial scenario analysis for SSB, the biggest GHG emitter of the Group.


a)   Risk Management

SSB conducted climate-related risk assessment utilising the same process as described in section 5.1.1. In the transition to use TCFD framework, SSB has classified the identified climate related risks into transition risks, physical risks and opportunities over the period of short to medium term and long-term. Transition risks are further categorised into Policy and Legal, Technology, Market and Reputation whilst physical risks are categorised into Acute and Chronic types. Opportunities are assessed in terms of sustainable financing, environmental performance and products & services. The potential impacts on our business and operations are listed down followed by risk rating, action plans and monitoring. The identified risk and opportunities are then integrated into the existing SSB’s Environmental Risk and Opportunities Register.


b)   Strategy

For the strategy pillar, SSB focused on identifying our climate-related risks as well as opportunities arising from the transition to a low-carbon economy. We evaluated our resilience to climate change impacts and derived corresponding strategies to address them.


The scenario analysis of SSB is currently focusing on addressing the identified significant and major risks. SSB adopts Intergovernmental Panel on Climate Change (“IPCC”)’s guideline and International Energy Agency (“IEA”) for scenario analysis. SSB uses IPCC’s Representative Concentration Pathways (“RCP”) and selects scenario RCP 8.5 for physical risk. As for transition risks, SSB uses IEA and selects Stated Policy Scenario (“SPS”) for transition risks and opportunities.

 


Resource and Circular Economy

Steel scrap is the discarded steel generated from manufacturing and also recovered steel in buildings, infrastructure, equipment, vehicles and products discarded at their end of life. Steel scraps are collected and recycled repeatedly, hence a good model of circular economy.


Steel scrap is the key resource for EAF steel making at SSB. SSB recycles substantial quantity of steel scrap, which is an approach to support global circularity economy. SSB’s EAF converts steel scrap into valuable semi-finished product billets, which are then hot rolled into steel bars and wire rods to be supplied to construction industry and steel processing industry. When the useful life of the products from construction and steel industries end, steel scrap will be recovered and recycled. The involvement of the Group in the circularity of the steel is illustrated in the figures below.


The use of steel scrap reduces the need for iron ore-based products and hence, reduces the depletion of natural iron ore resource. SSB always makes an effort to enhance circularity through maximisation of steel scrap usage in EAF whilst ensuring product quality meets the customers’ requirements. The recycling business model of SSB is imperative for environmental sustainability, which enables preservation of natural resources.


EAF steelmaking is expected to grow as the industry focuses on carbon neutrality. It is apparent that a dynamic shift in demand of steel scraps will take place. As the result of this, SSB is endeavouring to set and retain the target to use > 85% of steel scrap for steel making. In FY 2023, SSB managed to achieve 9% higher in the use of steel scrap than the target as shown in table below.


The raw material used by SSB is tabulated as below:


All the steel scrap generated by the Group is used as part of the raw material for recycling in EAF of SSB. There is a change in the reported quantity for FY 2021 and FY 2022 due to some quantity of home scrap was incorrectly computed during the compilation process.


Water and Effluent

Water stress occurs when the demand for water exceeds the available amount during a certain period or when poor quality restricts its use. Malaysia is classified as one of the countries with low to medium water stress by year 2040 (Source: World Resource Institute via The Economic Intelligent Unit). The projection done by National Water Research Institute Malaysia shows that coastal area along the west coast of Peninsular Malaysia will have high-water stress by year 2030.


The Group is located at coastal area along the west coast of Peninsular Malaysia where high-water stress is projected. All the operation facilities of the Group are expected to be affected by water stress in which greatest impacts will be on SSB and SPIM as the nature of the operations require vast usage of water.


Our Approach 

The Group believes that communication can change people’s behaviour in consuming water, from the position of unaware of water security issue to that of consuming water more efficiently. The Group engages and communicates the commitment on conservation and use of water efficiently along with reclaim, recycle and retreat approach in our Environmental Policy Statement to employees and public through intranet, website, internal training and meetings.


The Group has analysed its water withdrawal data and found that more than 95% of the water is consumed by SSB and SPIM. In our long-term water management plan, the key focus will be on SSB, which consumes around 80% of the water used by the Group.


In SSB, water is used mainly for the cooling of products, processes and equipment. Water is also used for other purposes, such as rinsing of products and cleaning. SSB collaborates and works with water treatment contractors to treat the processed water for continuous circulation for its beneficial purposes. The long-term water management plan of SSB is to progressively set up closed loop recycle water treatment plant (“RWTP”).




SSB had already set up 2 closed loop RWTP in year 2007 and 2009 respectively to treat, recycle and reuse the processed water in steel making plant and hot rolling mills. In order to further conserve precious water resources and at the same time, reducing operational costs, SSB is currently investing RM3 million to build another closed loop RWTP. The new facility is expected to be ready in 1st quarter of FY 2024.


The Group has set the target for SSB to reduce water use by 70 megaliters from FY 2020 to FY 2025. The cumulative reduction in water use at the end of FY 2023 is 31 megaliters.


Water Withdrawal, Consumption and Discharge

The source of water for the operations in the Group is freshwater from municipal potable water, namely Perbadanan Bekalan Air Pulau Pinang (“PBAPP”) and Air Selangor. The monthly water withdrawal (usage) data is recorded independently by PBAPP and Air Selangor, where the Group will be billed according to the amount of water consumed.


PBAPPAir Selangor
Freshwater from municipal potable water
96%4%


The Group does not have any water withdrawal from surface water, groundwater, seawater and rain harvested rain water, used quarry water and external waste water.


The 3 years’ record of water withdrawal, water consumption and water discharge of the Group is illustrated in the graph below. SPIM Butterworth is the only company in the Group that discharges onsite treated water (effluent) as surface water into drainage.


Effluent

The pipe making process in SPIM produces effluent (water). The effluent (water) as mentioned earlier is treated onsite according to the Environment Quality Industrial Effluent Regulation 2009, Standard B prior to discharge. The amount of treated effluent (water) discharged is tabulated below:


FY 2021FY 2022FY 2023
Onsite treated effluent (water) discharge by SPIM Butterworth as surface water, megaliters 
7.48.27.6


The test result of the treated effluent (water) is as below:

ParameterFY 2021FY 2022FY 2023Standard B, Fifth Schedule Environmental Quality (Industrial effluent) Regulations 2009
Biochemical Oxygen Demand (mg/l)
131122
Chemical Oxygen Demand (mg/l)
673372
Suspended Solids (mg/l)
637
Zinc (mg/l)
0.460.580.29
Iron (mg/l)
0.340.420.32


Compliance

There is no incident of non-compliance with water quality/quantity permits, standards and regulations in FY 2023.


Energy Management

The iron and steel industry is one of the most energy intensive industrial sectors in Malaysia. As a diligent corporation, the Group strives to pragmatically manage energy utilisation. The Group has an energy policy statement which demonstrates the commitment of the Group to improving energy efficiency, performance and consumption while complying with the applicable legal, regulatory and other requirements.


Electricity is the key energy resource of the Group. Electricity consumption account for more than 50% of our GHG emissions. Reducing energy consumption reduces the demand for fossil fuel which is used to generate electricity. This in turn, lowers the carbon emission to the atmosphere. In view of this, the Group recognises the importance of dedicated energy management to abate GHG emissions and reduce our energy costs.


The electricity consumption of the Group is mainly attributed by upstream operations. The total electricity consumption of the Group is as shown below.


 As a huge electricity consumer, SSB has appointed Registered Electrical Energy Manager (“REEM”) in line with the requirements of Efficient Management of Electrical Energy Regulations, 2008 to ensure efficient management of electrical energy. The REEM submits energy reports to Energy Commission of Malaysia on a half-yearly basis.


The Group has an established Energy Management Committee to focus on reducing energy consumption. The Energy Management Committee is tasked to plan, monitor and review the energy management activities in accordance with the Group’s Energy Policy, such as the staggered upgrading of inverter controls, conversion to energy savings light and automation of temperature control. The objective of the committee is to conserve resources by improving efficiency in energy consumption through utilisation of technology, which then contributes to the abatement of GHG emissions as well as reduction in utility costs. 


The Group’s effort in energy management for both upstream (SSB) and downstream (SSM, SPIM & SSP and SPC) operations are as below:


Operations
FY 2021FY 2022FY 2023
Annualised energy savings per employee (kWh/employee)
Upstream operations6731761,924

Downstream operations**1,288

* Energy saving projects of downstream operations were not captured in the past


As the Group is moving out of the adverse Covid-19 pandemic impact, we have ramped up our energy management activities. The Group has actively executed 10 energy saving projects as compared to 1 project in previous financial year.


Projects and respective energy savings achieved in FY 2023 are listed as below:

Project
Description
Estimated/Actual savings in kWh per month
Company
Inverter controlUpgraded 700kW main fan 1 motor starter to inverter control.
80,515SSB
LED spotlightReplaced bucket area 400W spotlight to LED spotlight.
1,152SSB
Inverter control
Upgraded air compressor from star delta starter to inverter control.
16,880SSB
Manually stop start stand motor during breakdownReduced electricity energy wastage by stop all stand motor if breakdown > 10 minutes.
24,469SSB
Inverter control
Upgraded Mill Return Flash Pump 1 30KW star delta starter to inverter control system.
1,578SSB
Inverter control
Upgraded 7.5kW CT2 Circulation Motor starter to inverter control.
2,950SPC
LED lightingReplaced 43 units of energy saving high bay lights to LED high bay lights.
1,425SSM
Cladding transparent sheetInstalled cladding transparent sheet.
300SSM
Quenching water pumpConverted TM5 quenching water pump (stop TM5 pump).
88,132SPIM
Cooling water pumpMerged TM5 and TM7 cooling water pump (stop TM5 pump).
16,499SPIM

 

Air Emissions

The Iron and Steel Industry is a highly energy intensive industry in which air pollution is an important environmental concern. The Group, as an environmental responsible corporation, has expressed our commitment to fulfill environment compliance obligations and pursue continual improvements to enhance environment performance as stated in our Environmental Policy Statement.


SSB complies to Malaysian Environmental Quality (Clean Air) Regulation 2014. SSB has taken various proactive steps as the approach to ensure compliance. In May 2013, the steel making plant in SSB installed Continuous Emission Monitoring System (“CEMS”) to sample, condition, analyse and record pollutant at the interval of 3 minutes. The concentration of the pollutant can be visualised at both the steel making plant and the Department of Environment, enable continuous monitoring against requirement of the regulation. The trend of the pollutant concentration also enables the certified competent person of our steel making plant to analyse, predict and plan the maintenance of the bag house dust removal and collection system.


The reheating furnaces in hot rolling mills of SSB emit pollutants from the burning fuel. The reheating furnaces are equipped with recuperator system to recycle part of the heat energy from the hot waste gas prior to releasing the gas via the chimney. The approach of SSB is to engage accredited laboratories to perform stack emission measurement with the target to ensure that the emissions are independently monitored for compliance with the regulation. As part of the move to protect the environment, the long-term and short-term targets of SSB are to control the emissions from the reheating furnace at the level of 30% below the limit stated in the regulations. SSB has taken proactive steps in year 2006 to convert the fuel from medium oil to natural gas, which is the cleaner fuel, so that SSB consistently emit pollutants lower than the emission limit as stated in the regulation. The measurement of key pollutant emission indicators as illustrated show that from FY 2021 to FY 2023, SSB managed to control the pollutant emissions to 50% or lower than the emission limit as stated in the regulation. SSB will retain the same target for next financial year.




Waste Management

The manufacturing processes in the Group generate co-product or waste. The generation of waste in the Group is as shown below:

1701336999_25uaFG.png

Note: General waste data is captured for FY 2023 with exclusion of SSM Rawang and SSM Klang due to incomplete weight data.


The Group's approach on co-product or waste is to recycle, reuse and recover the waste as much as possible. The Group compiles and monitors the generation as well as disposal of co-products or waste in the Group. The Group has set a target to avoid total waste that is directed to disposal at a maximum of 3%. For FY 2023, the total waste diverted from disposal is 99.5%.

Waste disposalMaximum Target (%)FY 2021FY 2022FY 2023
Directed to disposal30.10.10.5


The total wastes diverted from disposal and directed to disposal are listed as below:


Note: Non-scheduled waste directed to disposal in FY 2021 and FY 2022 was an estimation and hence, not included in this report.


Scheduled Waste

The Group classifies the waste or co-products based on their characteristic and potential to adversely affect public’s health and environment and into scheduled and non-scheduled waste. The scheduled wastes are recorded, stored and disposed in accordance with the Environment Quality Act, 1974.


According to the First Schedule of the Environment Quality (Scheduled Waste) Regulations, 2005, the maximum scheduled waste quantity that can be stored at premises is 20Mt and the storage duration shall not exceed 180 days. The type of scheduled waste generated in the Group is as listed below:


The Group’s scheduled waste generation is as listed below:


The Group is always mindful of complying with the Environment Quality (Scheduled Waste) Regulations, 2005 followed by, where possible, accomplishing beyond regulatory requirements. The Group also endeavours to maximise the resource value of co-product or waste through research and development in tandem with collaboration with external parties as well as promotion in the recycle and reuse of both scheduled and nonscheduled waste and co-product. The efforts of the Group thus far are as elaborated below:

a) The steel making plant of SSB generates EAF dust, a co-product under the classification of Scheduled Wastes Code, SW104. EAF dust has a high zinc compound which can be recovered. SSB has collaborated and developed a local licensed recycler, which is nearby to us to recycle the EAF dust and extract valuable zinc compound which is then processed into zinc ingot for industrial application.


SSB seeks to accomplish beyond regulatory requirement in terms of storage duration and quantity of scheduled waste. SSB collaborated with the long-term local licensed recycler and we had spent approximately RM1.2 million to modify the EAF dust collection facility in the 4th quarter of FY 2019. The modification enabled the loading of generated EAF dust directly onto trucks for the licensed recycler to collect for subsequent recycling in their plant. The collaboration and investment enabled the Group to set the target for closing inventory of EAF dust at a maximum of 15Mt. 


b) Zinc ash and zinc dross generated by SPIM is another co-product classified under the Scheduled Wastes Code, SW104. SPIM has set the target to control its maximum quantity of zinc dross and zinc ash to 20Mt with storage duration of not exceeding 100 days. SPIM disposes zinc ash and zinc dross to licensed collectors and recyclers on monthly basis for recycling into products, such as zinc ingot. By doing so, SPIM is able to comply with regulatory requirements as well as achieving a shorter storage time than the regulated 180 days in FY 2023. In the next 3 financial years, SPIM will work on further reducing the storage time to below 60 days with a maximum storage quantity of 20Mt.

c) The Group engages external licensed contractors to collect the waste as our obligation to comply with the regulatory requirement. The licensed contractors will treat the scheduled wastes in the following manner:

The breakdown of scheduled waste diverted from disposal are listed as below:


The breakdown of waste directed to disposal via disposal operation are listed as below:




Non-Scheduled Waste

The Group believes that effective management of waste helps to reduce waste that goes to the general waste stream and hence, reduces the potential impact to the environment. The Group puts in concerted effort in reducing waste through reuse, recycling and recovery as far as possible through research and development as well as collaboration with external parties. The venture of the Group in waste management until now is as set out below:

a) The steel making plant in SSB generates EAF slag in its steel scrap melting process. EAF slag is a nonmetallic co-product, which is classified as a non-scheduled waste. EAF slag is used as an alternative to rock fragments, which is commonly used as an aggregate for landfill and also replacement of granite

aggregate. The strategy of SSB is to treat EAF slag in-house to recover the metallic waste before further processing the slag for intended applications. The metallic waste recovered will then be reused in EAF as an input material for steel making. The in-house treatment and processing process has reduced the need

for external transportation and hence, reduced carbon emissions. Currently, 100% of the treated EAF slag is used as alternative rock fragments. 

b) The steel making plant in SSB also generates ladle furnace slag and used refractory material, a nonmetallic co-product that forms during steel refining process at ladle furnace. Ladle furnace slag together with other used refractory materials are disposed to bricks maker to produce cement bricks. The used refractory can also be crushed for reuse in EAF to improve the protection of the EAF. Currently, all the generated ladle furnace slag and used refractory material are used for the above stated purpose. 

c) The general waste in the Group is further segregated according to 3R (Reduce, Recycle and Reuse) prior to final disposal. Old newspapers, shredded paper, magazines, malfunction computers and electrical appliances are among the items that are being segregated before disposal of general waste. 

The breakdown of non-scheduled waste diverted from disposal are listed as below:


The breakdown of waste directed to disposal by operations are listed as below:


Note: Non-scheduled waste directed to disposal in FY 2021 and FY 2022 was an estimation and hence, not included in this report.


Steel Scrap

Steel scrap generated by the Group is sent to SSB as resource for recycling in EAF as described in section 5.3.6. Though steel scrap is a key resource for SSB’s EAF, the Group puts in effort to reduce the generation of steel scrap through our subsidiary, SSM. SSM is able to provide a service to the construction industry by cutting the steel bar into required length or forming into the required shape prior to delivering to the construction site. With such a service, steel wastage at construction sites is being reduced.



Life Cycle Perspective

The life cycle perspective provides information on how the Group controls or influences the way the products in the Group are developed, manufactured, distributed, used and recycled to manage environmental impacts within the life cycle, which is essential to long-term sustainable development.


1701337418_fIQuAS.png


Development

The Group develops product specification by referring to the input requirement from customers. The Group aspires to influence and control the recycling content of the products to enhance circularity without sacrificing the quality despite having limited influence on the products’ requirement.


Procurement

The Group procures steel scrap, raw materials and supporting material from approved vendors. The Group strives to influence the vendor through periodical assessment as described in section Supply Chain Management.


Steel Production

The core activity of EAF steel making plant in SSB is recycling of steel scrap to produce billets, which is then hot rolled into steel bar and wire rods. The subsidiaries in the Group produce steel mesh, prestressed concrete steel wire & strand, steel pipes and provide cut and bend services. Electricity is one of the key resources used in steel production. The electricity and respective emissions are managed as described in sections Our GHG Emissions, Air Emissions and Energy Management. The production in the Group generates steel scraps waste and other scheduled and non-scheduled waste. The steel scrap waste will be collected and recycled in our EAF. The management of scheduled waste and non-scheduled waste is as described in section Waste Management. 


Distribution

The distribution mode in the local market is via road transport using trucks. The Group uses approved transporters for local delivery. 


Sea transport via vessel is the common distribution mode for export markets though occasionally, trucks are used due to geographically feasibility and as specified by customers. The Group has limited influence on the sea transport as our customers usually prescribes the delivery details.


Use

The products of the Group are mainly used in construction sector and manufacturing industries. Though the Group has limited influence on the way our products are used, the Group endeavours to facilitate the construction sector through one of the subsidiaries, SSM which provides services by cutting the steel bar into required length or forming into the required shape prior to delivering to construction sites. With such services, the generation of steel scrap waste at construction sites is being reduced.


Steel Recycling

The Group recycles substantial quantity of steel scrap, which is an approach to support global circularity economy. The management of the steel scraps waste is described in section Circular Economy.