Sustainability Report

Sustainability Statement

The Tomypak Group fully subscribes to and is fully committed to optimising the environmental, economic and social impact of its business activities and the Group is pleased to provide in this report its efforts in this respect.

The Tomypak Group believes and subscribes to the motto of not only growing stakeholder value through growth in our core business but also to achieve such growth in a sustainable manner that contributes and works for the betterment of the environment, community and our workplace.

This report by the Tomypak Group is prepared and guided by the Sustainability Reporting Guide issued by Bursa Malaysia. Tomypak Group have identified material sustainability matters based on Tomypak Group's assessment of its operations, key risks and opportunities. We selected key material sustainability matters from a range of key factors that could have significant impact on our ability to deliver sustainably to our shareholders and key stakeholders. We prioritised and present those matters that could have the greatest relevance and highest potential impact to our business and relationship with stakeholders.

The information in this report covers our actions taken to manage the key issues, and where applicable the results and performance in the areas of environment, employment and our contribution to the local communities at large. It must be recognize that our efforts in improving sustainability initiatives is an on-going process and will continuously be improved as we expand our business and we look forward to improving our deliverables in these areas in the near future.

In this respect, we are also pleased to advise that to ensure we have the appropriate resources available within our organization to manage and deliver these important deliverables, we have now created a specific positions within our organization structure to manage our sustainability issues and is in the process of recruiting a dedicated team who will be responsible for developing a comprehensive program and ensuring that these programs are presented to the Board for approval and subsequently to be implemented.


Structure To Achieve

Our sustainability strategy is developed and directed by the senior management of the Group based on guidelines provided by the Board. A comprehensive program will be drawn up and will be presented to the Board of Directors for their final inputs as well as approval and this program will be reviewed and updated on a continuing basis. The team will be led by the Managing Director and is tasked to develop a set of comprehensive sustainability targets and goals as well as the appropriate strategies and action plans to achieve such targets. It is the intention that this will become one of the standard agenda item for discussion at future Board of Directors meetings.


Material Environment, Social And Governence Factoes ("ESG")

The following ESG factors which are deemed material to the Group's business and stakeholders was first developed in FY2017, and was further reviewed and improved upon by Management in FY2018:
i) Employment
ii) Environment
iii) Employment

Employment

The Tomypak Group believes that people are the key central component to the achievement of our business strategies and our employees are our most valued assets.

Equal Opportunities

The Group is committed to the following :

a. provide fair work opportunities to all irrespective of age group, ethnicity , gender or qualifications ;

b. provide our employees with equal opportunities for career advancement based on meritocracy, performance and qualification; and

c. as the Tomypak Group continues to build our organizational capacity and capabilities to achieve the company's objectives especially in relation to our expansion program, the Tomypak Group has initiated a plan to continuously enhance and upgrade employees' skills, knowledge and experience . This continuous HR development program enhances the employees' competencies and performance to work efficiently and effectively. In FY2018, more comprehensive and intensive internal in house and external training were provided to all level of staff


Fair Compensation and Benefits

The Tomypak Group ensures that the welfare of all employees are appropriately looked after and compensation for all employees are on fair and equitable terms. The Group also complies with the Malaysian statutory requirement to contribute to the Employees' Provident Fund and the Social Security Organization. In addition to this, the Group provides personal accident insurance for executive employees.

The Tomypak Group provides to its employees medical benefits such as outpatient, specialist and dental treatment. The Group also provides Hospitalization and Surgical Insurance Coverage to local employees and the immediate family members of management staff.

In addition, the Tomypak Group makes contribution to a defined benefit plan that provides for lump sum benefits for certain category of employees upon retirement.


Health and Safety

Ensuring that the health and safety of all our employees, particularly those who work within the factory environment, is the prime concern of the Group.

The Tomypak Group's Safety and Health Committee is responsible for the occupational safety and health of our employees. The Committee prescribes the policies, implements and monitors the various ongoing safety and health programs for all level of employees to improve and enhance awareness amongst staff.

The Tomypak Group, through the deployment of a Safety Officer, seeks to promote continual improvement on the standards of the safety and health, and compliance with statutory requirement , codes, guidelines and standards for occupational safety and health. The Safety Officer carries out daily inspections , liaise with all the related government bodies, regulatory agencies and conducts frequent safety related audit. Spot checks on employees are also carried out all the time and immediate actions, including training, will be taken against those who have breached the company's rules and policies.


Continuous Training

The Tomypak Group recognizes that continuous training and upgrading of the knowledge and skills of the employees are important in discharging their responsibilities effectively and efficiently.

During the financial year, the Group provided both internal training and also sent employees for external training in relevant functional areas, to increase the competency of our staff, improve their awareness and provide refresher courses. In addition to the annual refresher courses in Good Manufacturing Practices ("GMP"), Food Safety and Security Certification ("FSSC") as well as Hazard Analysis And Critical Control Points ("HACCP"), a total of 14 other training courses were provided to our employees, ranging from basic training in forklift safety to team building to occupation first aid skills and radiation safety & health training. For purposes of securing the FSSC certification for our new Senai plant, there was continuous training for new recruits as well as refresher courses for those who have been trained before, so that our new Senai plant can secure the certification.


Employee Share Option Scheme ("ESOS")

The ESOS which was approved by shareholders in FY 2016 continued to be implemented in FY 2018. This ESOS provide our employees an opportunity to have equity participation in the Group. This scheme is an integral plan to retain and incentivize our current employees and allows our employees to have a sense of "ownership" and participation in the financial performance of the Group. In FY 2018, a total of 6,634,100 shares was granted to all eligible employees. As at end of FY 2018, the total ESOS granted to all directors and staff was 22,193,478 shares.


ENVIRONMENT

The Tomypak Group's business invariably involves materials such as plastic films, aluminum foils and liquid discharges such as ink and solvent, that directly and indirectly have an impact on the environment at large. Recognizing this, the Group adopts a code of conduct which emphasizes on coexistence with the environment and also adheres to all environmental laws and regulations stringently and strictly. Currently, the Group monitors where these wastes are sent to by our appointed suitably qualified and approved contractors, and how they are disposed.

Having taken cognizance of the need to put in place a more comprehensive waste management program given the types of waste our factories discharge, the Group in FY 2018 ensured that specific department was tasked to ensure full compliance by the Group on all laws and regulations and to ensure that any changes in the environmental laws and regulations are constantly monitored and updated with the appropriate action plans put in place to meet these new requirements. In addition , another of the key role of this department is to develop a more comprehensive environment management program for the next few years given our proposed expansion program, by researching and learning from other countries how such wastes are managed effectively beyond just letting a waste management company collect such waste for disposal.

In the meantime, the Tomypak Group has continued with these activities throughout the FY 2018 year to enhance our commitment to the preservation of the environment. These include:
a) Recycled what we cannot re-use ourselves but which can be used by others by selling these waste substances to licensed waste collectors. This include investment into a recycling machine to convert plastic waste into resin pallets for sale to third party users.

b) Reviewed and enhanced the energy savings program to reduce electricity usage further by converting the use of electricity to natural gas. This include more robust and efficient production planning to consolidate production schedule which will lead to a reduction for overtime works and hence reduce the consumption of electricity;

c) Stack Emission Monitoring that allows the Tomypak Group to be able to evaluate the characteristics of industrial waste gas stream emissions that are released from the factory chimneys into the atmosphere;

d) Enhance the usage of electronic file sharing and storage within the company's servers to reduce the usage of paper, recycling of used papers for printing purposes;

e) Different types of contingencies implemented within the factory to prevent/minimise chemical spillage within the factory surroundings;

f) The re-use of materials within our production processes such as the reuse of waste solvents, reuse of paper spools etc; and

ENVIRONMENT

The Tomypak Group plays its role as a socially responsible corporate citizen in the community and continues to support the needs of the community in various forms .

In line with the Tomypak Group's support to the community, the Group continues to offer internships to a number of undergraduates who are required to fulfill their practical training requirements. These undergraduates have the opportunity to gain practical experience from their attachments to Group's daily operations. The Group believes that offering internships to students is a good way of allowing young individuals to gain hands-on opportunities to work in their desired fields. These young adults gain the chance to be able to learn how their course of study can be applied to the real world and also create valuable experience that allow them to become strong candidates for jobs after graduation. Moreover, successful interns will be provided with the opportunity to join the Tomypak Group upon graduation.

In FY 2018, a total of 19 interns were provided the opportunity to be attached to the Group . A comprehensive 3 months program which allows these interns the opportunities to be exposed and learn throughout the entire value chain of the Group's production process, was developed and they were rotated through various area of operations to give them the necessary exposure.

To enhance this internship program, the Group has signed memorandum of understanding with Entrepreneurial, Incubation & Career Centre of Southern University College, and is in the midst of discussion with regard to cooperation with UTM to further encapsulate the Group's commitment to provide internship opportunities to relevant students from these premier institutions.

In addition to the internship program, the Group also participated in career fairs organized by various universities . These fairs are not only to serve as potential employment opportunities for graduating students but it also allows the students to engage with experienced professionals from the Group for them to gain better perspective of the technical and management aspects of working in such type of entities.

As a part of our contribution to society, during the financial year, the Tomypak Group made cash donations to the Rotary Club of Kulai Foundation to assist the Foundation in providing hemodialysis services to the community. The Group will continue to work with the Foundation to continue to provide further cash assistance to support this noble activity .

Other similar activities that the Group participated in FY 2018 was "Nature Fun Walk And Ride 2018" which was co­ sponsored by OCBC Bank and Rotary Club of Kulai with the objective to raise funds for Rotary Hemodialysis Centre of Kulai.