Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 11 CHAIRMAN’S MESSAGE (CONT’D) SUSTAINABILITY FOR A BETTER TOMORROW Environmental, Social, and Governance (“ESG”) and Sustainability are our core priorities and play an integral part in our business. We take very seriously our responsibility to our shareholders, and our duty to build a strong, resilient, profitable and sustainable business. E - We are aware of the environmental risks created by business activities and the potential impacts on our air, land, water, ecosystems and health. Our priority have always been to minimise any of these negative impacts by preventing pollution and reducing emissions and climate risk. These include lowering costs and increasing profitability through energy, water and other efficiencies. For example, even though our capacity has increased and processes continue to be more complex, our unit production average power usage was reduced to 9.22 kWh (FY2020 = 10.16 kWh) per part produced; our unit production average water usage was maintained at 0.11 cubic meter per part (FY2020 = 0.12 cubic metre per part). In addition, our unit production average waste produced was maintained at 0.4 kg (FY2020 = 0.4 kg) per part. S - On the social aspect, we have been actively participating in social activities such as promoting health and safety, protecting our employees, human rights, giving back to the society, diversity and inclusion. We begin from within our organisation where we work together as one team while building trust and relationship amongst our employees, customers, suppliers and communities. We believe by treating our employees fairly and respectfully promote productivity and good morale. This in turn translates into reduced turnover and loyalty to the Company. For example, we recorded an employee retention rate of 98.49%, achieving 104% of our target goal. Other aspects that we will continue to work at including making positive changes through our “Corporate Social Responsibilities Project” to achieve a sustainable social impact. G - From the governance perspective, we ensure that every decision made was in the interest of all our stakeholders and that our business continue to be managed in a way that was consistent with the policies that we have put in place. These policies include Code of Conduct, Whistle Blowing Policy and Anti-Bribery & Corruption Policy, amongst others, which are available on our website. The Board maintains our commitments and operates to the highest standards of governance such as ensuring that the rights of shareholders are protected and that the Company practices transparent disclosure. The Board continued to review and strengthen our approach on applying the principles of the Malaysian Code of Corporate Governance. During the year, we have also conducted the annual board independence Board Effectiveness Evaluation to assess the effectiveness of the overall Board of Directors, sub-committee and individual director. We continued to benchmark our sustainability development with that of the GRI Framework, United Nations Sustainable Development Goals (“SDGs”), Responsible Business Alliance Framework (“RBA”) and the Bursa Malaysia FTSE Russel ESG Model Framework. As an example, we are aligned with 12 out of the 17 United Nations SDGs and we aim to achieve more if not all of these goals. In addition, our efforts to date were recognised by our inclusion in the FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index in FY2021. This is an encouragement for us to do better and continue to pursue our long-term goals in this area. We believe we can make a sustainable impact in our business while providing the best value to our stakeholders. Further details on the Group’s Sustainability initiatives and achievements for FY2021 are available at the Sustainability section of this Annual Report and the full report is available on our website at www.frontken.com. Frontken Sustainability Development Full Report FY2021 can be downloaded on our website at www.frontken.com
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