MSM Malaysia Holdings Berhad Annual Report 2021

Board Statement on Sustainability The MSM Group is advancing a significant step-up of the Environmental, Social and Governance (ESG) framework in business and operations to reset our sustainability journey. The step-up action signifies our firm commitment in infusing sustainability in our operations and strategies which coincides with our strategy to broaden our global exposure. Additionally, the COVID-19 pandemic has made us realise the importance of steadfastly withstanding unforeseen challenges. While we actively engage in sponsoring and supporting various charity programmes, food banks, and individuals impacted by COVID-19, staying safe also encompasses the safety of business resilience and sustainability in the present business environment. As part of this step-up plan, as of this year’s reporting, we are committed to work towards meeting FTSE4Good Bursa Malaysia Index standards; align our disclosures with internationally-recognised Global Reporting Initiative (GRI) standards; as well as focus on promoting relevant United Nations (UN) Sustainable Development Goals (SDGs) into our long-term strategies. A key achievement this year was the establishment of a dedicated sustainability working group within the Corporate Strategy and Investor Relations department that will henceforth take the lead in expanding our sustainability efforts. Working with an external consultant, a culture of Review, Reflect and Respond (3R) has also been initiated within the Group to inculcate sustainability in our strategies and in our operations. At the same time, we are remapping the material matters to be more relevant to current business operations and future strategy. We target to improve our sustainability reporting and disclosures this year and emerge with a more fortified sustainability framework and targets from FY2022 onwards. We are escalating the Group’s commitment to providing safe, condusive and healthy workplaces. To date, MSM Prai and Sungai Buloh Warehouse have been issued the ISO 45001: Occupational Health & Safety System certificate, and MSM Johor is in the process of being certified. Awareness for green initiatives is also being ramped up, especially at MSM Prai, with the signing of a certificate of collaboration (COC) with Penang’s Department of Environment (DOE) enabling green initiatives in preserving and conserving the environment. Participation in a household e-waste recycling competition and Mangrove Tree Planting programme are some initiatives towards the Company’s Sweet Sustenance in a Responsible, Sustainable and MindfulWay We are remapping the material matters to be more relevant to current business operations and future strategy.We target to improve our sustainability reporting and disclosures this year and emerge with a more fortified sustainability framework and targets from FY2022 onwards. WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 118

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