Sustainability Policy

.

1. INTRODUCTION
 

As one of the major players in the manufacturing and distribution of pipes, valves, fittings, building & construction materials and steel products, property development in Malaysia, Engtex Group Berhad (“Company”) and its subsidiaries companies (“Group”) are mindful of the impacts of their business activities have on the communities in which they operate, especially on the aspects of Environment, Social and Governance (“ESG”).
 

The Board of Directors of the Company (“Board”) recognizes that whilst striving for economic success, responsible corporate behaviours towards ESG issues are important to the long term sustainable success of the Group, thereby creating value for the Company’s shareholders and other stakeholders.

         
         
2. OBJECTIVES
 

The purpose of this policy is to establish a sustainability framework on which Group will incorporate the elements of sustainability in its businesses.
 

This policy aims to strengthen the Group’s endeavour to: 

a)Integrate the principles of sustainability into the Group's strategies, policies and procedures;
b)Promote sustainable practices;
c)Comply with and exceed, where practicable, all applicable legislation, regulations and codes of practice;
d)Ensure that the Board and senior management are involved in implementation of this policy and review the sustainability performance; and
e)Create a culture of sustainability within the Group, and the community, with an emphasis on integrating the environmental, social and governance considerations into decision making and the delivery of outcomes.

       
       
3. SOCIAL SUSTAINABILITY
 

Based on the Group’s nature of businesses and their impacts on the associated social systems in which it operates, the Group is committed:

a)To provide safe and reliable products and services for its customers, especially when they are related to water supply infrastructure and property development which have vast impact on majority of the population;
b)To maintain a safe and healthy working environment for all the employees;
c)To promote employees’ development and training in order to expand their skills and improve their productivity;
d)To minimise any forms of discrimination in the workplace;
e)To prevent sexual harassment and other forms of violence against women at workplace, and to protect their reproductive rights;
f)To prioritise hiring of local citizens over foreign nationals.
g)To promote ethical business dealings.

       
       
4. ENVIRONMENTAL SUSTAINABILITY
 

It is inevitable that the Group’s business activities having adverse effects on the environments, which include usage of non renewable energy and materials, and also waste, emission and affluent from its manufacturing activities.
 

The Group is therefore committed to identify, manage and minimise the environmental impact of business operations: 

a)To minimise usage by ensuring efficient consumption of non-renewable, non-recycled energy and materials;
b)To pursue and encourage the use of renewable resources;
c)To minimise the level of pollutants entering into the air and water from daily business operations; and
d)to comply with environmental regulatory and legal requirements. 

       
       
5. GOVERNANCE SUSTAINABILITY    
 

Governance responsibility is essentially having an effective governance structure to manage risks and avoid conflict of interest situation by having effective control functions. This is important in gaining the confidence of investors, other stakeholders and the public.
 

The Group recognises the important of governance responsibility in enhancing stakeholders’ value in the long term and incorporating it into all functions and processes which include strategic planning, accountability, sustainable planning and development: 

a)To actively engage with the stakeholders;
b)To integrate sustainability into the Company’s long term strategic planning;
c)To enhance sustainability through regular updates of strategies, policies, procedures and provide relevant training;
d)To establish and continue to improve appropriate governance structures and processes;
e)To assess the impacts and outcomes of sustainability; and
f)To plan for long term resources including human and financial. 

       
       
 6. REPORTS AND DISCLOSURES   
  The Company will give attention to environmental, social and governance aspects of business which promote sustainability, and disclose the policies and their implementation in the annual report and the corporate website accordingly.   
       
       
 7. ADMINISTRATION    
  The Board is responsible for the administration, revision, interpretation, and application of this policy. The policy shall be reviewed by the Board at least once every two years.