Our Sustainability



Sustainability Framework

Sustainability Approach

The Group embarks on its journey towards long-term sound and sustainable growth by adopting this framework to further improve the Group’s culture and performance via operational excellence. As an integral part of the Group’s business strategies and decisions, we emphasise the continuous improvement to deliver the targeted operation outcome, focus on safety and health to enhance moral, productivity and efficiency, observe corporate compliance to ensure business is conducted ethically and responsibly, grow our range of green products as our green initiative, increase engagement on issues related to climate change to assist in addressing global warming and develop our human capital for economic and social growth. The Group believes in the theme “Together we can do it”....


Sustainability Governance

The Board of Directors has oversight on the sustainability matters of the Group. The Sustainability Steering Committee (“SSC”) of the Group plans the sustainability goals, reviews the strategies, manages processes, initiatives, targets and performances in relation to sustainability matters. This nurtures team culture, enables the setting of integrity culture and overall accountability across the Group, along with building stakeholders’ trust that the Group is working towards delivering sustainable stakeholders’ value. 


Governance Structure 

The Group has a well-established governance led from the top, with clear accountabilities for continual implementation of sustainability initiatives with the objective of striving for sound and sustainable growth.


The Group’s SSC comprises senior Head of Department of the relevant operations and is chaired by the Group Managing Director (“GMD”), with the Chief Financial Officer as deputy. The GMD plays the role of Chief Sustainability Officer, reporting directly to the Board on any sustainability matters. The SSC oversees the implementation of the Group’s sustainability initiatives and ensures that key targets are being monitored.


The SSC is assisted by Sustainability Working Committees (“SWC”) comprising key staff from various departments of the operating companies nominated by the SSC. The SWC’s reporting duties include provision of information, collection of feedback from stakeholders, addressing material sustainability issues and driving initiatives approved by the SSC.



 

Stakeholder Engagement

The Group firmly believes that stakeholder engagement is a crucial element of our sustainability strategy. We recognise that our business operations impact a wide range of stakeholders, including the government, customers, employees, shareholders, suppliers, communities and the environment. Therefore, we prioritise stakeholder engagement as a means to foster meaningful dialogue and collaboration, and to ensure that we are meeting the needs and expectations of our stakeholders.


Our stakeholder engagement process is designed to be inclusive, transparent and responsive. We engage with our stakeholders on a regular basis through a variety of channels, including surveys, interviews, focused groups, town hall meetings and online platforms. Through these interactions, we seek to understand the perspectives, concerns and aspirations of our stakeholders, and to use these feedbacks to guide our decision-making process and drive our sustainability initiatives.


Stakeholders
Engagement Channels
Why We Engage

Board of Directors


  • Board meetings

  • To actively engage with the Board of Directors in strategic planning, ensuring alignment of organisational goals and driving effective decision-making processes in sustainability matters.
  • To collaborate with the Board of Directors to review corporate governance practices, ensuring compliance with regulations, ethical standards and best practices in corporate governance.

Employees


  • Town Hall
  • Intranet
  • Events
  • Trainings
  • Virtual meetings
  • Physical meetings
  • Surveys
  • Newsletter
  • To align employees with the Group’s goals and sustainability objectives.
  • To engage employees in sustainability initiatives and foster a sense of ownership.
  • To cultivate a diverse and inclusive workplace for innovation and sustainability.
  • To provide comprehensive training and development opportunities.
  • To enhance employees’ sense of well-being.

Customers



  •  Email communications
  • Telephone calls
  • Physical and virtual meetings
  • Site visits
  • Surveys
  • To build strong customer relationships by consistently meeting and exceeding their expectations in quality and service.
  • To continue to seek customer feedback to improve products and services.

Suppliers


  • Email communications
  • Telephone calls
  • Physical and virtual meetings
  • Site visits
  • Site audits
  • Surveys
  • To proactively engage with suppliers to ensure the best quality, service and effort in meeting our expectations consistently.

  • To establish clear expectations and conducting regular assessments of supplier performance.
  • To encourage efficiency, cost-saving and sustainable practices.

Union



  • Meetings

  • To cultivate a positive relationship with the Union through effective communication.
  • To obtain constructive feedback and concerns regarding Union workers’ welfare.

Shareholders



  • Annual General Meeting
  • Annual report
  • Announcements
  • To precisely and timely disclose sustainability strategies and performance to facilitate decision making by shareholders.

  • To recognise the importance of shareholder engagement for long-term value creation.

Government/ Regulatory Authorities



  • Email communications
  • Telephone calls
  • Consultations
  • Dialogues
  • Audits and inspections
  • To build a strong rapport with government and regulatory authorities to gain support and access to the latest information on regulatory issues relevant to the Group’s activities.
  • To ensure strict compliance with applicable laws and regulations.

Trade association


  • Active participation in the steel association
  • Conferences
  • Meetings
  • To provide constructive inputs in policy making to drive industry-wide benefits and progress.
  • To actively participate in conferences, improvement programs and innovation competitions organised by the association to foster knowledge sharing and collaboration.
  • To engage with industry stakeholders and associations to shape policies, drive innovation and promote continuous improvement within the industry.

Communities



  • Events and campaigns

  • To establish a strong relationship and build trust by actively engaging in corporate social responsibility (“CSR”) activities that benefit local communities.
  • To conduct meaningful CSR initiatives that address the social, environmental and economic needs of the local communities, contributing to their well-being and sustainable development.

 

 

Materiality Assessment

Materiality Assessment

The Group performs biennial materiality assessments to ensure timely and relevant identification of key material issues, which will then be incorporated into our strategies. The material issues discussed in this report are based on SSC’s review of our most recent assessment conducted in FY 2022. Our materiality assessment involves a thorough analysis of stakeholder perspectives obtained through surveys, meetings, emails communications and dialogues. The results enable us to prioritise efforts, allocate resources and monitor progress. Our commitment to a comprehensive and transparent materiality assessment demonstrates our dedication to sustainability and stakeholder engagement. The material issues and action plans are subsequently discussed in SSC meetings. Considering the increased importance of data protection and life cycle approach in sustainability, the SSC has decided to include Data Privacy and Security as well as Life Cycle Perspective to kick-off our pursuit into these avenues under this year’s materiality assessment.

  

Materiality Analysis Process 


Materiality Analysis Result


 

Alignment to the GRI Standard and United Nations’ SDG

We align our sustainability efforts with the GRI Standards and the SDGs. Alignment to GRI Standards enhances transparency and accountability in our sustainability reporting. Guided by our commitment to the SDGs, we take actions to tackle global sustainability challenges and drive positive impact in critical areas such as the environment, social, economic and governance. By leveraging these frameworks, our aim is to create a sustainable future that benefits all.


Category
SSB’s Sustainability Material Issues
Reasons
GRI Indicators
Alignment With SDG
Governance
Risk Review
The Group recognises the increased importance of risk management due to the evolving complexities posed by globalisation, pandemics, warfare, digital technology and climate change. Henceforth, we emphasise on the need for effective risk management to ensure the Group’s long-term sustainability.
GRI 3-3 : Management of material topics



Ethics and integrity
The Group is committed to uphold integrity, accountability and transparency. We recognise the importance of consistently articulating the values we wish to foster in both leaders and employees in tandem with mitigating bribery and corruption risk by refining procedures. The Group is certified to ISO 37001 Anti-Bribery Management System and always encourages genuine reporting of improper or wrongful conduct of any bribery and corruption cases within the workplace.
GRI 205 : Anticorruption 2016
GRI 2-26 : Mechanisms for seeking advice and raising concerns



Data Privacy and Security
The Group understands the concerns of stakeholders on the collection, use and storage of their personal data. With the growing importance of Data Privacy and Security in the digital age, the Group apprehends the need to protect companies’, associates’ and stakeholders’ data from cyber threats by having a comprehensive robust Cyber Security strategy, benchmarking ISO/IEC 27001:2013 Standard to safeguard critical systems and sensitive information.
GRI 418 : Customer Privacy 2016


Economic Sustainability
Customer satisfaction
Customer management is a key driver to our business sustainability. The Group prioritises customer satisfaction to build trust and lasting relationships. The Group implements a strategy that covers marketing, product quality, customer services, e-services and effective communication.  
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Supply chain management
Supply chain management is crucial for our agility. We strive to secure stable supplies at competitive prices, ensuring quality and prompt delivery to meet expectations. Suppliers play a vital role; hence it is essential to ensure suppliers undergo pre-qualification processes and adhere to our Supplier Code of Conduct. Regular performance assessments are conducted as well.
GRI 2-6 : General Disclosure on organisation’s activities, value chain and other business relationships



Innovative culture
The Group believes in continuous innovation for sustainability and encourages innovative thinking at all levels. 
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Product and qualityThe Group maintains a strong commitment to meeting both local and international standards for product quality, as agreed upon with customers. 
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Environment Sustainability
Environmental management
The Group believes in effective environmental management via an organised environment management system. The Group is progressively obtaining ISO 14001 certification across its subsidiary companies since year 2011. 
GRI 2-27 : Compliance with laws and regulations



Response to climate change
In response to the fight against global climate change, the Group continues to improve on its GHG assessment by expanding the scope to include both upstream and downstream operations.  We are also in the transition towards TCFD to enhance our resilience.

As an environmental responsible corporation, the Group is committed to fulfil environmental compliance obligations and pursue continual improvement to consistently control the emission much lower than the limit as stated in the Malaysian Environmental Quality (Clean Air) Regulation 2014. 
GRI 305 : Emissions 2016



Energy management
The Group proactively focuses on energy conservation and efficiency to mitigate climate change, reduce GHG emissions and energy costs. The Energy Management Committee oversees these efforts through innovation, technology utilisation and resource conservation.
GRI 302 : Energy 2016



Water management
Malaysia is projected to face water stress by year 2040, with high-water stress expected in the coastal areas by year 2030, including where the Group is located. As mitigation, we engage and communicate with employees to consume water efficiently. We also implement water management plans to reclaim, treat, recycle and reuse process water.

The Group also treats water (effluent) according to the Environment Quality Industrial Effluent Regulation 2009, Standard B prior to discharge.
GRI 303 : Water and Effluent 2018



Circular economy, waste management and life cycle perspective
The Group embraces a life cycle perspective in our steel production, focusing on controlling and influencing every stage, from development to recycling, to minimise environmental impacts. Recycling steel scrap waste in EAF process is a priority.

The Group also endeavours to manage co-products and waste efficiently, comply with regulations and promote recovering, recycling and reuse to reduce our environmental footprint.
GRI 301 : Material 2016
GRI 306 : Waste 2020


Social Sustainability
Occupational safety and health
The Group prioritises the safety, health as well as welfare of employees via the implementation of safety improvement programs and activities. These efforts aim to create a safe work environment and prevent accidents, ensuring the well-being of its workforce.
GRI 403 : Occupational Health and Safety 2018



Human capital
The Group recognises the significance of human capital development in driving business growth, thus placing considerable emphasis on equipping and developing employees with essential skills over time.
GRI 401 : Employment 2016
GRI 404 : Training and Education 2016



Community engagement 
The Group is committed to making a positive impact and improving the communities where we operate.

The Heart-to-Heart (“H2H”) Club brings together passionate employees who volunteer their time and efforts to support the less fortunate, both within and outside the Group. Through various activities, the H2H Club aims to harness the goodness within individuals and make a meaningful difference in the lives of others.
GRI 413 : Local Communities 2016