MSM Malaysia Holdings Berhad Annual Report 2019

SUSTAINABILITY REPORT Recycled and Reused (%) Natural Gas Usage (mmBTU) Diesel Consumed (litres) WATER USAGE GRI-303:Water & Effluents Key Points: Vast water quantities are used in the sugar refining process. Sustained water management measures have been adopted to ensure the efficiency of water usage within our operations. The amount of water used and reused in our daily operations are constantly measured and monitored. ENERGY OPTIMISATION GRI-302: Energy We have adopted an energy savings approach to monitor the progress of carbon footprint reduction, waste management and utilisation of clean and renewable energy sources within our operations. We have invested heavily in back pressure turbines to generate approximately half of our energy requirements by channeling exhaust steam back to the heating process. We also recycle our process condensate for boiler steam generation. Where necessary, we use clean natural gas as an energy source at both refineries to reduce production of carbon soot and sulphur emissions. In addition, we employ an innovative system that combines functionalities of our Mechanical Vapour ReCompressor (MVR) evaporator and Vertical Crystallisation Tower (VKT) to dramatically reduce the amount of steam required during the sugar-boiling processes. Natural Gas The increase of 18.1% in natural gas usage was expected in 2019 due to MSM Johor’s operational consumption for one full year as compared to only six months in 2018. At the other two refineries, energy consumption was lower compared to 2018. TotalWaterWithdrawal by Source (cubic metre (m 3 )/year) Recycled and Reused Water Volume (m 3 /year) 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2,403,875 2,908,232 3,341,358 524,742.8 409,554.5 418,812.6 21.8 3,630,510 277,463 14.1 4,115,823 713,872 12.5 4,858,897 360,800 Diesel Diesel consumption lowered dramatically across the refineries during the year due to cost saving initiatives such as direct melting, production based on demand and MSM Perlis’s installation of a power factor improvement capacitor. Water usage increased by 14.9% during 2019 as consumption factored in MSM Johor’s full year of operations (as compared to only six months of operations in 2018). River flushing activities at MSM Perlis to mitigate a low performing industrial effluent treatment system also contributed to the increase. MSM Malaysia Holdings Berhad | Annual Report 2019 52