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Our Journey into Sustainability

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Sustainability Highlights 2023


7

Key policies to support sustainability with best practices


80

of our suppliers are local, of which 75% are Johor-based


71

of our workforce comprises of members of local communities


65

of our workforce consists of permanent employees


2373

aggregated training hours for all employess


FSSC 22000 v5.1

awarded internationally recognised food safety certification


44

of production waste (excluding scheduled waste) were recycled


35

metric tonnes of scheduled waste (SW 302 & SW 409) disposed of in accordance with regulations


Message from our Managing Director

Context Image
Lee Kwee Heng

Managing Director

Tomypak Flexible Packaging Sdn Bhd

Dear Reader,

It gives me immense pleasure to present the Sustainability Report for Tomypak encompassing our performance and activities in the financial year 2023. As a leading player in the flexible manufacturing industry, our responsibility extends beyond the boundaries of our facilities and spreads into the communities and ecosystems that we are a part of.

Sustainability is not just a buzzword for us; it is a business imperative that guides our operations and future development. In this report, we have taken steps to be transparent about our efforts to achieve a sustainable and resilient business model.We have structured this report in line with Bursa Malaysia’s Sustainability Reporting Guide, and believe that we are accountable to our shareholders, stakeholders, and a broader community concerned with sustainability.

Being in the manufacturing sector, we are aware of the challenges we face in the areas of waste management, energy consumption, and greenhouse gas emissions. Our team has worked diligently to ensure that we adhere to the environmental regulations, not merely as a compliance measure but as a commitment to ecological responsibility.

On the social front, we have initiated various community engagements and employee well-being programs that stand testament to our dedication towards enriching lives. Our focus on creating a diverse and inclusive workplace has given us an edge in fostering innovation and enhancing productivity.

I would like to extend my deepest appreciation to our employees, partners, stakeholders, and the community at large for their support and trust to help us contribute towards sustainability development.

Thank you for taking the time to read this report, and for being part of our sustainability journey.

Sustainability Governance

GOVERNANCE STRUCTURE

Tomypak upholds strong governance. Under the Board’s leadership, headed by Mr. Yong Kwet On, sustainability matters are reviewed at least bi-annually. The Sustainability Committee, led by Mr. Lee Kwee Heng, is advised by En. Azmi Bin Arshad who is our Executive Vice Chairman and acertified sustainability professional.

ROLES AND RESPONSIBILITIES

Role

Key Responsibilities

Board of Directors

  • Approve overarching sustainability strategies.
  • Ensure compliance with legal and regulatory requirements.
  • Make high-level decisions related to ESG
    (Environmental, Social, Governance) issues and delegates responsibilities to Sustainability Committee.
  • Review reports and updates from the Sustainability Committee.
  • Ultimate accountability for the company’s sustainability performance.

Sustainability Committee

  • Collaborate with internal departments and external partners on sustainability efforts.
  • Develop and propose sustainability strategies to the Board.
  • Ensure alignment with relevant frameworks, standards and guidelines.
  • Execute approved sustainability initiatives and projects.
  • Gather and analyse sustainability data.
  • Monitor and report on key sustainability
    metrics.

Advisor

  • Ensure alignment with Business Plan.
  • Provide expert counsel on sustainability matters and reporting.
  • Prevent greenwashing.

BOARD OVERSIGHT

The Board is committed to providing strategic direction and rigorous governance for the company. As part of its oversight role, the Board regularly reviews performance metrics, operational efficiencies, financial integrity, and the company’s impact on climate change to ensure that the company is aligned with its goals and adheres to relevant legal, health and safety, and human rights standards.

RISK MANAGEMENT AND STRATEGIC INTEGRATION

The Board takes an active role in risk management including ESG considerations towards achieving our objectives as set out in our roadmap.

CORPORATE GOVERNANCE

The company is guided by the Malaysian Code on Corporate Governance which includes sustainability related governance. Please refer to the Corporate Governance Overview statement in the Annual Report.

DIVERSITY AND INCLUSION IN BOARD COMPOSITION

While the Board recognizes that diversity can bring fresh perspectives in deliberations, Board decisions are made objectively in the best interests of the Group taking into account diverse perspectives and insights. At the same time, the Board is of the view that it is important to recruit and retain the best available talent regardless of gender and ethnicity to maximize the effectiveness of the Board.

Board Composition

60 years old and below

More than 60 years old
Total

Proportion

Male 3 1 4 80%
Female 1 0 1 20%
Total 4 1 5 100%

Sustainability Report 2023



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Sustainability Report FY23 Supplementary Information

Climate Change Risk and Opportunities to Tomypak

Tomypak’s strategic approach to sustainability acknowledges the dual nature of climate change as a source of both risk and opportunity. We are proactive in mitigating risks associated with operational costs, supply chain vulnerabilities, regulatory pressures, and changing market dynamics. Concurrently, we embrace opportunities to enhance efficiency, bolster resilience, gain competitive advantages, and strengthen our brand through dedicated sustainability efforts.

The table below outlines the key risks and opportunities climate change presents to our operations, alongside the initiatives we are undertaking to address them:

Aspect

Climate Change Risk

Opportunity

Operational

Increased costs due to transitioning to energy-efficient infrastructure. Potential disruptions from
extreme weather events.

Long-term cost savings anticipated from operational efficiencies and reduced waste, in line with ISO 14001
and ISO 45001 certifications expected by FY2028.

Supply Chain

Risk of disruptions from climate-related events impacting suppliers. Increased cost of raw materials.

Building a resilient supply chain through ongoing supplier audits and adherence to sustainability
standards, aiming for robustness by FY2028.

Regulatory Compliance

Stricter environmental regulations requiring adaptation, potential penalties for non-compliance.

Securing a competitive advantage by early compliance with TCFD by FY2025, leading to access to new markets
with stringent environmental standards.

Product Demand

Decrease in demand for non-sustainable products.

Capturing the growing market for sustainable and environmentally friendly products, with Tomypak’s
innovations poised to meet rising demand by FY2028.

Reputational

Negative public perception and potential loss of customer trust for non-compliance with environmental
standards.

Strengthening brand value and customer loyalty through commitment to sustainability and active community
engagement, contributing to brand equity by FY2028.

Financial

Increase in costs from investments in sustainable practices and technologies. Risk of asset stranding.

Anticipating long-term financial benefits and new funding opportunities from sustainable operations, with
progress towards TCFD reporting framework by FY2025.

Near-Term and Long-Term Targets for GHG Emissions Reduction

Tomypak is committed to advancing our environmental sustainability practices with a clear focus on achieving specific carbon emission reduction targets.

Our near-team and long term targets for GHG Emissions Reduction are:

  • By FY2025, Tomypak aims to reduce carbon emissions by 3% per unit of revenue from the FY2024 baseline.
  • Looking further ahead to FY2030, our goal is to achieve a 20% reduction in carbon emissions per unit of revenue from the FY2024 baseline.

This aligns with the ambitions of the Twelfth Malaysia Plan on Malaysia’s greenhouse gas (GHG) emissions reduction.

Results and Specific Actions Taken on Non-Compliance by Suppliers

Our supplier audits were aimed at assessing suppliers’ compliance with Tomypak’s sustainability standards, focusing on environmental performance, ESG criteria, and human rights adherence. These audits, including on-site evaluations, were designed to ensure suppliers aligned with both Tomypak’s sustainability objectives and regulatory requirements. As a result of these thorough assessments, there were no instances of non-compliance by suppliers, and therefore, no specific actions were required.

Communication and Training of Suppliers on Environmental Matters                                       

Our Supplier Code of Conduct mandates compliance with our environmental standards. All suppliers have been informed about this Code which is accessible on our company’s website. Our suppliers can reach out to our Procurement department should they need further explanation regarding the Code.

Water Withdrawn

FY 2020

FP 2022

FY 2023

Water Withdrawn (m3)

39,559

80,382

15,752

Revenue (RM)

150,929,203

152,574,414

49,169,848

Water Withdrawn (m3) per RM 100,000

26.21

52.68

32.04

Scheduled Waste (Hazardous Waste) Generation

FY 2020

FP 2022

FY 2023

Scheduled Waste SW 322** (MT)

158.48

243.54

29.98

MT per RM 100,000

0.11

0.16

0.06

Scheduled Waste SW 409*** (MT)

17.30

36.83

5.35

MT per RM 100,000

0.01

0.02

0.01

Revenue (RM)

150,929,203

152,574,414

49,169,848

*MT denotes metric tonnes.

**SW 322 refers to waste on non-halogenated organic solvent (waste solvent).

*** SW 409 refers to disposed containers, bag or equipment contaminated with chemicals, pesticide, mineral oil or scheduled wastes (contaminated containers).

Environmental Fines and Penalties

There were no environmental fines or penalties incurred during FY2023.

Health and Safety Incidents

Incident Number

Summary

Actions Taken

1

A contractor who had to remove his safety helmet due to limited space while installing equipment under a
lamaination machine sustained a minor head injury.

Enforced SOP of wearing of appropriate personal protective equipment.

2

A contractor fell from a roof while replacing a tile when he accidently tripped on his tools.

The Standard Operating Procedure was enhanced to mandate the presence of a secondary worker during task
execution.

3

A worker in Slitting department suffered a cut to his left thumb and index finger with a cutter knife
while slitting a jumbo roll.

Anti-cut gloves were provided as a safety measure.

4

A worker in Prnting department sustained a serious forearm injury from a doctor blade while cleaning a
machine.

The Standard Operating Procedure has been revised to prevent similar accidents in the future, and a
briefing about the incident has been conducted for all printing department workers.

5

A Quality Control department worker, while aiding a Printing department colleague with a penknife on
non-conforming (NC) materials, accidentally sustained a cut to his left thumb.

Anti-cut gloves have been provided for NC cutting tasks, and a briefing on the accident along with
correct knife handling methods has been conducted for all workers

Risk Assessment on Health and Safety

As part of the Safety and Health Management Review, we conducted inspections of the First Aid Box on a monthly basis by first aiders, in accordance with documented operational controls to ensure adherence to regulatory requirements.

Employee Involvement in Health and Safety Improvements

In FY2023, 2 union meetings were held discuss labour issues and provide updates to members. While safety issues were not addressed, they will be included in the agenda for future union meetings.

Number of Work-Related Employee Fatalities

Period Count
FY2020 0
FP2022 0
FY2023 0

Number of Work-Related Contractor Fatalities

Period Count
FY2020 0
FP2022 0
FY2023 0

Percentage of global staff with a disability

At Tomypak, we value diversity and inclusivity within our workforce. Currently, 0.5% of our global workforce is made up of individuals with disabilities.

Risk Management Framework

We work alongside our internal auditors to proactively identify, assess, and mitigate risks to ensure the long-term resilience and success of our business by following the ISO 31000 risk management framework. A record of the risks is maintained in Tomypak’s Risk Register.

Regular Rotation of Auditors/ Audit Partners

As part of our enterprise risk management, we engage a reputable audit firm, KPMG. KPMG adheres to international requirements by rotating audit partners once every seven years, ensuring a fresh perspective and an unbiased evaluation of our financial operations. This practice contributes to a robust risk management strategy. The Board closely monitors the relationship with our auditors to maintain objectivity and independence.

Development

Our innovation is embedded into our core value as we believe it is key to sustained success. Focusing on creating better solution to tackle emerging new challenges, efforts and investments are strategically placed to ensure we meet customers and consumers everchanging demands.

Strive to improve our environmental impact while meeting customers’ needs, efforts are taken in designing flexible packaging solutions aiming for life cycle in circular economy. These solutions are designed to be eco-friendly with reduced carbon footprint while still achieving the mechanical properties and barrier performance, without compromising food safety.

Our development efforts in support of circular economy within consumer packaging category:

  1. Design for Recycle Packaging
    • High Barrier Performance Transparent Packaging
    • Superior Metallizing Technology Packaging
  2. Responsibly Sourced Fibre Based Packaging
    • High Performance Fibre Packaging
    • Heavy Weight Application Fibre Packaging

 

Sustainable Packaging

Avinya

Click here to learn more about Avinya, Malaysia’s first Barrier VMPE/PE packaging