Environment

Environment

Minimising our environmental impact through sustainable practices and responsible resource management.

resource and waste
management

resource and waste
management

Driving sustainable resource utilisation and waste reduction through responsible practices to reduce environmental impact.

We seek to consume resources ethically and responsibly. We strive to promote the 3R (reduce, reuse, recycle) concept, with a focus on recycling resources such as water and materials used in our manufacturing processes.

We aim to reduce the environmental impact of waste, effluence and emissions from our operations. An effective Environmental Management System (ISO14001:2015) has been established to manage the environmental issues, its impacts and identifying the appropriate action plans and, targets as we remain vigilant in reducing pollution and waste.

Our wastewater discharge is treated by our industrial wastewater treatment plant (IWWTP) before being discharged into the drainage system in accordance with the Environmental Quality Act 1974.

We strive for responsible water management by reducing water consumption and enhancing efficiency across our operations. Our initiatives focus on water recycling, efficiency upgrades, and safeguarding this essential resource.

We recognise standards and guidelines on the use of non-hazardous materials. We strive to use sustainable sources of materials in our products where possible.

We are focused on managing our waste responsibly. We adhere to prevailing laws and guidelines on proper disposal of waste.

HLI operating companies rely on municipal water supplies for manufacturing processes and have implemented water recycling systems to minimise use of water resources.

None of HLI’s operations are located in water-stressed areas.

HLYM has initiated a rainwater harvesting project with a 1,000-liter capacity for cleaning and irrigation and other external uses at the office, reducing dependency on potable water usage.

WHAT'S NEW

Water stress occurs when the demand for water exceeds its availability or when poor quality limits its use. According to the Aqueduct Water Risk Atlas by the World Resources Institute, most parts of the country are projected to experience low water stress, while much of the west coast of Peninsular Malaysia is expected to face medium water stress by 2050. HLYM and Guocera’s plants are located outside these water-stressed areas.

WHAT'S NEW

Our operational processes produce waste, which is treated in accordance with regulatory requirements before discharge. This includes both hazardous (scheduled) and non-hazardous (non-scheduled) waste. We engage licensed operators to collect, transport, and dispose of waste at authorised waste management facilities.

Note: Waste data includes information from both HLYM and Guocera plants. HYM disposes of its waste through the HLYM facility. Waste directed to disposal is also referred to as non-recycled waste. Waste diverted from disposal are recycled waste. Waste data were amended due to reclassification of waste and the inclusion of additional production wastages.

Our operating companies ensure that water is not discharged into the ocean, subsurface/well, or off-site wastewater treatment facilities. Instead, onsite treated effluent is discharged as surface water.

HLI monitors the quality of our discharged water to meet the Malaysian Standard B requirements outlined in the Fifth Schedule of the Environmental Quality (“Industrial Effluent”) Regulations 2009. There is no incident of non-compliance with water quality/quantity permits, standards and regulations in FY2024.

Our water is sourced from municipal supplies, mainly from Air Selangor and Syarikat Air Johor for manufacturing operations. There is no water withdrawal from surface water, groundwater, seawater, quarry water, external wastewater. However, we have initiated a pilot project on rainwater harvesting at HLYM in 2023.

HLYM and Guocera are on track to meet their FY2025 targets, sourcing water exclusively from municipal suppliers, Air Selangor and Syarikat Air Johor, while working towards reducing water intensity by 5% and 3%, respectively, from the FY2022 baseline.

Our operating companies, HLYM and Guocera, have implemented water management plans, including water recycling systems, in 100% of our plants.

climate change

climate change

Taking proactive steps to mitigate climate risks, reduce carbon emissions, and drive sustainable solutions for a resilient and low-carbon future.

We recognise climate change risk as a key element of our sustainability management and address it through our initiatives. This includes managing resources responsibly through reduction, reuse, and recycling efforts, implementing energy-saving initiatives, deploying renewable energy solutions like solar projects and collaborating with our supply chain to minimise our overall environmental impact.

We seek to consume energy responsibly and efficiently.

We focus on energy saving initiatives and consider implementation of renewable energy sources.

We aim to leverage on product innovation to increase our sustainable product offerings.

We continually track and improve our GHG emissions periodically.

We strive to reduce the impact of greenhouse gas emissions from our manufacturing processes and products, in line with the Malaysian government’s target to achieve carbon neutrality by 2050.

WHAT'S NEW

HLI Berhad has tracked greenhouse gas (GHG) emissions since FY2019. To enhance accuracy and consistency, we engaged a third-party consultant in FY2024 to conduct a thorough verification of our Scope 1 and 2 GHG emissions.

For more details, refer to GHG Emissions Management on pages 43-44 of the 2024 Annual Report.

HLI’s current target, set in FY2022, is to achieve a 30% reduction in energy intensity and carbon emissions intensity by FY2026 and 40% by FY2035 against the baseline year of FY2019.

product safety

product safety

Ensuring the highest safety standards through rigorous testing, compliance, and innovation to deliver products that are reliable, sustainable, and environmentally responsible.

We are focused on delivering safe and reliable products that meet international safety and quality standards.

We strive to adopt best practices throughout the product design/planning, production and supply stages.

We seek to eliminate or control the use of environmental hazardous substances (EHS) in our products based on laws, guidelines and standards.

Supply chain management (environment)

Supply chain management (environment)

Encouraging sustainable supply chain practices by engaging with responsible suppliers, reducing environmental impact, and ensuring ethical sourcing for a greener future.

Our Supplier Code of Conduct and Ethics highlights our dedication to social and environmental responsibility.

Important aspects, including HLYM's Environmental Policy, Environmental Procedures for Suppliers & Contractors, Green Procurement Guidelines, and Guocera's Environment, Health and Safety Policy, are communicated to suppliers and highlighted during the ESG awareness sessions.

WHAT'S NEW

Through supplier assessment and monitoring, HLI's operating companies have found no occurrences of non-compliance among their suppliers in FY2024.

Initiatives

Initiatives

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