MSM Malaysia Holdings Berhad Annual Report 2021

RESOURCE MANAGEMENT Waste Management MSM’s approach in dealing with waste reduction and the process flow of inputs, activities and outputs that impact waste production are guided by the Group Sustainability Policy, the Environmental Policy and respective waste management control procedures established under each theMSMoperations in order to comply with the relevant regulations such as the Environmental Quality (Scheduled Waste) Regulations 2005 (Scheduled Waste Regulations 2005). We record the hazardous waste generated in our operations as Scheduled Waste and all other non-hazardous waste, including by-products, are categorised as Non-Scheduled Waste. This categorisation determines how waste is stored, handled and disposed, in the value chain from production to packaging to distribution stage. Some of the types of Scheduled Waste generated and tracked from MSM’s own activities at each of its operations include waste containing materials such as mercury, metal with copper, zinc and chromium as well as containers, bags or equipment contaminated with chemicals, pesticides. Scheduled waste is strictly tracked and monitored at our operations, by competent certified persons, with pertinent details recorded in the internal database as well as at the DOE website, as per the Scheduled Waste Regulations 2005. Scheduled Waste is outsourced to a supplier licensed by the DOE to collect, transport, process and dispose waste in accordance with local regulations and standards. Non-Scheduled Waste includes materials such as plastic, paper boxes, office and general waste, spillage and refining by-products such as mudcake and molasses. To minimise disposal and to divert Non-Scheduled Waste from being sent to landfills, MSM is looking at more efficient recycling and reselling opportunities with appropriate third party partners. ActionsTaken to MitigateWaste Reduction: Mudcake: Turning Waste to Fertiliser Replicating the success achieved in the sale of molasses by-product as animal feed, MSM is making inroads turning mudcake waste into useful fertiliser. Mudcake is a compressed sugar refining waste by-product that is produced in both MSM refineries. The DOE previously categorised mudcakes as Scheduled Waste which was required to be handled, stored properly and to be removed from site by a licensed DOE contractor. In FY2021, the DOE had agreed and approved that mudcakes generated as by-products by the refineries are no longer termed as Scheduled Waste. Research was conducted on MSM’s mudcake waste and it was discovered that it reduces acidity in soil making it viable for use as fertiliser. This led to a trial programme between MSM Johor and FGV Fertiliser in October 2021 to turn mudcake into fertilisers. Based on the trial, the parties are in discussions on whether all of the mudcakes generated by MSM Johor and MSM Prai can be taken up by FGV Fertiliser and if successful, a joint venture on this initiative is in the pipeline. Potential collaborations with third party to supply mudcakes for the cement industry are also being explored at this stage. The possibilities are exciting not just for MSM but for the refining industry and environmental authorities at large. MSM is also exploring opportunities to work with higher education institutions to conduct research on other potential benefits and use of mudcakes. The total waste generated and tracked by the MSM Group as ScheduledWaste (Hazardous) and Non-ScheduledWaste (Non-Hazardous Waste) in FY2021 is 20,109.57 metric tonnes. Out of which, a total of 146.83 metric tonnes of hazardous waste were generated from our operations. SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 133

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