Hartalega ESG 2015 2015 has been a seminal year for Hartalega with the commissioning of its much anticipated NGC (Next Generation Integrated Rubber Glove Manufacturing Complex or Next Generation Complex in short) which is set to triple Hartalega’s capacity to 42 billion pieces and drive forward its leadership in nitrile rubber gloves. The NGC is a project long in the planning with the genesis of the seed idea first sprouted in 2011 with the intention to drive economies of scale, transition a smooth workflow in a conducive working environment and creating a thriving complex where every facility is in its logical place to work synergistically together for the greater output and to enable a thriving community. Located in a lush environment of 112 acres in the burgeoning satellite city of Sepang about 10 minutes- drive from Malaysian international airports, the NGC is set to commission 6 plants comprising 72 high technology production lines running at the average speed of 45,000 pieces per hour combined with facilities and amenities like designer-built offices, dormitories, sports complex, training centre of excellence and R&D centre to be completed by 2022. We at Hartalega are committed to providing a comfortable and conducive environment to ensure that our workers can constantly work and live with efficiency and ease. We are committed not just towards sustainable market share and earnings growth but also to protecting the environment and welfare of our workers and surrounding community. We believe in preempting issues and proactively adopting holistic values and approaches to attain our targets. The bottomline is not just our focus. Thus it comes as not a surprise when Hartalega was inducted into the FTSE4Good Bursa Malaysia Index list of Index constituents for ESG (Environment, Social Responsibility and Corporate Governance) as well as admission to MSCI Index and Hijrah Shariah Index in 2015. The RM2.2 billion NGC project will be progressively built and ensure that Hartalega will continue to maintain and grow its market share and sales revenues. We will not only up the stakes and ante by growing our economies of scale but also continue to improve our productivity via new and increased automation leveraged by our investment in the power of IT connectivity. Today our sales footprint spans across the major continents and over 40 nations particularly to quality conscious customers who value our consistent quality and delivery service. During the last one year, it is imperative that we have not just maintained financial growth but also maintained relationships with all our stakeholders and enhanced our reputation as a reliable and consistent manufacturer of quality gloves. This year 2015, we have not only embedded Overall Equipment Effectiveness as our main KPI and business priority but we have also included sustainability factors like Health, Safety and Environment to our Performance Measures. These KPI’s together with our core values of SHIELD (Synergy, Honesty, Innovation, Excellence, Learning, Dedication) will further create value-add/aggregate values for all stakeholders and improve our revenue growth.
Transcript
Hartalega ESG 2015
2015 has been a seminal year for Hartalega with the commissioning of its much anticipated NGC (Next
Generation Integrated Rubber Glove Manufacturing Complex or Next Generation Complex in short)
which is set to triple Hartalega’s capacity to 42 billion pieces and drive forward its leadership in nitrile
rubber gloves.
The NGC is a project long in the planning with the genesis of the seed idea first sprouted in 2011 with
the intention to drive economies of scale, transition a smooth workflow in a conducive working
environment and creating a thriving complex where every facility is in its logical place to work
synergistically together for the greater output and to enable a thriving community.
Located in a lush environment of 112 acres in the burgeoning satellite city of Sepang about 10 minutes-
drive from Malaysian international airports, the NGC is set to commission 6 plants comprising 72 high
technology production lines running at the average speed of 45,000 pieces per hour combined with
facilities and amenities like designer-built offices, dormitories, sports complex, training centre of
excellence and R&D centre to be completed by 2022.
We at Hartalega are committed to providing a comfortable and conducive environment to ensure that
our workers can constantly work and live with efficiency and ease. We are committed not just towards
sustainable market share and earnings growth but also to protecting the environment and welfare of
our workers and surrounding community. We believe in preempting issues and proactively adopting
holistic values and approaches to attain our targets. The bottomline is not just our focus. Thus it comes
as not a surprise when Hartalega was inducted into the FTSE4Good Bursa Malaysia Index list of Index
constituents for ESG (Environment, Social Responsibility and Corporate Governance) as well as
admission to MSCI Index and Hijrah Shariah Index in 2015.
The RM2.2 billion NGC project will be progressively built and ensure that Hartalega will continue to
maintain and grow its market share and sales revenues. We will not only up the stakes and ante by
growing our economies of scale but also continue to improve our productivity via new and increased
automation leveraged by our investment in the power of IT connectivity.
Today our sales footprint spans across the major continents and over 40 nations particularly to quality
conscious customers who value our consistent quality and delivery service.
During the last one year, it is imperative that we have not just maintained financial growth but also
maintained relationships with all our stakeholders and enhanced our reputation as a reliable and
consistent manufacturer of quality gloves.
This year 2015, we have not only embedded Overall Equipment Effectiveness as our main KPI and
business priority but we have also included sustainability factors like Health, Safety and Environment to
our Performance Measures. These KPI’s together with our core values of SHIELD (Synergy, Honesty,
Innovation, Excellence, Learning, Dedication) will further create value-add/aggregate values for all
stakeholders and improve our revenue growth.
We have consistently applied our Four Core Pillars of Growth namely Productivity, Innovation, Human
Resource and Branding throughout all our endeavours in a holistic manner to positively make an impact
on our sector and society and this year 2015, we have added another key pillar (Five Collar Pillars of
Growth) namely Information Technology to leverage on the power of IT to coordinate and control
various different departments and plants to be more efficient and cost effective.
At NGC, we recognized the importance of building sustainable and ample long term infrastructure for
utilities – we have to-date build several of our own water treatment plants and water reserves resulting
in certified sustainable technology for water treatment for the use of our dormitories and plants. By
doing so, we will not only be able to conserve the cost of water usage but also control the quality of
water involved in our manufacturing process which can to a certain extent determine the quality of the
finished product.
We are cognizant of the importance of maintaining high standards of environmental controls to meet
standards set by the Malaysian Department of Environment (DOE) and have inputted at corporate and
departmental level the relevant KPI’s to ensure sustainability. We have worked to reduce carbon
emission as follows:
Years Annual emission reduction in ton of CO₂ₑ
2008 58,426
2009 72,181
2010 126,516
2011 145,504
2012 158,233
2013 166,765
2014 172,484
2015 174,254
Total reductions (tons CO₂ₑ) 1,074,363
We will continue to focus on reducing carbon emission as part of KPI. We will step up to the plate by
improving energy efficiency by re-designing our production lines to reduce energy costs and installing
biomass energy plants at NGC. Our current biomass plant at Batang Berjuntai has consistently met DOE
minimum dust particulate emission levels and we proactively work to reduce levels of emission
whenever levels start to increase as evident in year 2014 in the chart below:
Our chlorine scrubbers which operate to filter and remove toxic chlorine emission from the environment
have also met the DOE minimum stack flue emission levels and we again proactively work to reduce
levels to permissible levels whenever it exceeds the minimum standards.
We are also in the process of investing Ringgit millions in additional sustainable water treatment plants
to ensure the quality of our water will constantly exceed DOE minimum standards. Our waste water
sediment are desiccated and transported to official landfills in Selangor. The following tables indicate
some of the KPI targets and standard of waste water discharge which meets and exceeds DOE minimum
We are also in the midst of our initiative in sourcing sustainably. We recognized that it takes times to
fully implement the Supplier Ethical Code across all Operators but nevertheless we will hand in tow
guide our suppliers to practice responsible sourcing which has a positive impact on the environment.
We also continue to make advances in our R&D by improving the biodegradability of our nitrile synthetic
rubber gloves and simultaneously managing to maintain the premium quality and functionality of our
rubber gloves.
Throughout the last few years, we have conducted Health and Safety Awareness Campaign on an annual
basis to encourage safe work habits and practices and instill proactive approach towards health and
safety at work. This has resulted in zero fatalities and low number of accidents. We will continue to
encourage behavioural change and foster better work practices to create a zero accident work culture.
As a company which aspires towards global standards and having international geographic outreach, we
do not have uniform and simple solutions towards our challenges. We rely on teamwork and multiple
parties to help us troubleshoot. We recognize the importance of a holistic approach and comprehensive
solution whenever we face issues and challenges.
We are responsible not just towards the society we work in but also for the posterity we will leave
behind, hence we do not perceive the challenges we face today as one-offs but constant challenges
which continue to recur in its myriad permutations that need to be addressed at intelligently and
profoundly dealt with long term solutions as we scale upwards and progress onwards.
We will continue to be proactive and constantly adopt a holistic approach towards sustainability to
ensure a robust corporation which could self-operate for generations on solid fundamentals and
foundations. We will continue to ensure high standards of governance and accountability across our
value chain, promote ethical and responsible business practices and manage our environment.
ABOUT HARTALEGA
Hartalega celebrated its 25th anniversary in 2014 posting 25 consecutive years of continuous topline
growth and continuing to grow its sales revenues year on year. We continue not only to grow economies
of scale, improve our efficiency and high quality, but we also continue to improve and innovate as well
as provide solutions to meet the expectations of our employees and other stakeholders.
We manufacture and sell our gloves to over 40 countries and are committed to expanding our wide
repertoire of rubber gloves which includes natural latex and nitrile synthetic gloves and in the past, we
have manufactured medical examination glove, surgical glove, laboratory glove, industrial glove,
cleanroom glove, food grade glove, specialty and custom made glove. We are renowned for the quality
of our gloves and low reject rates in the industry and we focus mainly on selling to the quality conscious
market.
We have set out to build a corporate foundation capable of delivering sustained and repeated value to
our stakeholders not just in terms of financials but also to attain holistic aims of protecting the
environment, nurturing the community and taking care of our employees welfare. We view our people
as our greatest asset and will continue to invest in continuous recruitment, training and retention of
dedicated and capable staff. To this end, the Company has come out with the second round of ESOS
(Employee Share Option Scheme) distribution to incentivize dedicated and loyal employees.
Based upon the foundation of long term sustainability, the Company aims to invest in more innovative
and efficient plants. With the NGC, the Company aims to not only grow economies of scale but also
improve automation, quality of working environment, smoother workflow transition, reduced cost per
unit of glove and as well as create visible corporate branding.
By retrofitting and replacing existing manufacturing facilities and expanding others, the Company is
working towards increasing revenue, improving quality consistency and reducing cost. The Company will
continue to focus on product rationalization and productivity improvements applying Overall Equipment
Effectiveness as its main KPI target and seeking continuously to find ways to reduce energy and labour
costs pre-empting market expectations of future higher costs for these two major components.
Our strategic focus is very clear – it is based on continuous focus and efforts on our four pillars of
productivity, innovation, human resource and branding.
We believe that continuous focus on these four core areas applied to sustainable use of resources,
investment in our community, employees and supply chain will contribute substantially to long term
sustainability.
We are committed to doing business in a responsible and sustainable way investing in our people, our
company and communities where we operate to position ourselves for long term sustainable growth.
The principles of responsible business and commitment towards sustainable practice underscores the
heart and core of Hartalega business practice.
Our Vision and Mission are very clear which is to build a long term sustainable business which is
responsible to all our stakeholders.
Our Vision - To be the Number One glove company that produces and delivers the best and most
innovative gloves in the world; and to be recognized as a caring company to the community and
environment.
Our Mission - To deliver the best possible protection to people who work with their hands in exposed
and challenging environments by providing consistently superior, safer, and more convenient gloves in
chosen product markets.
At Hartalega, sustainability is central to our business.
As we focused our hearts and minds on fulfilling our Vision and Mission, we are working diligently to
position Hartalega as a responsible and caring corporate citizen that cares for the community and
environment as well as move progressively towards sustainable business practice and growth. We
inculcate our Core Values of SHIELD in all our business policies and practices and ensure every effort to
impact positively on all stakeholders in a balanced and sustainable way and preserve the environment.
Our Core Values in summary are:
S for Synergy of Teamwork representing the synergistic benefits of teamwork over individual efforts and
the social bonding of teamwork.
H for Honesty which is the intrinsic attribute expected of all employees of the Company; Honesty is part
of Integrity which stands not just for integrity of self but also integrity of work
I for Innovation which is the superior competitive advantage to sustain the Company’s growth
E for Excellence which is the level of product, service and job performance which employees of the
Company strive to achieve
L for Learning which is the constant effort to acquire understanding and knowledge to attain expertise
and skills in one’s vocation
D for Dedication which is the diligence, focus and commitment which employees of the Company
consistently put into their work to achieve excellence
The Core Values of the Company will be communicated and explained to all employees at regular
interval trainings to ensure that employees fully understand the Hartalega culture of uncompromising
integrity, holistic sustainability and excellent performance.
For more information on our Core Values, please contact the Human Resource Department.
The Core Values also form an integral basis of our Balance Scorecard contributing 40% of KPI.
There are many challenges which lie ahead for Hartalega
Hartalega is very serious about commitment towards long term sustainability and embracing our duty to
society.
To this end, Hartalega shall always be committed to maintaining the following policy and practices:
• Hartalega will not engage or support the use of child labour and complies with Malaysian or
local labour laws on minimum age and requirements
• Hartalega will not engage or support the use of forced or compulsory labour and shall not
require staff to lodge “deposits” or identity papers upon commencing employment with Hartalega; in
this respect, the terms and conditions of employment will be communicated to all staff prior to
recruitment who shall be provided with the Employee Handbook
• Hartalega shall provide a safe, healthy and conducive environment and shall take effective steps
to prevent potential health and safety incidents and occupational injury or illness arising or occurring in
the course of work. Hartalega has appointed a manager and department in charge of Health, Safety and
Environment as its representative responsible for all staff and accountable for implementation of health,
safety and environment standards; Hartalega shall make continuous efforts to reduce energy
consumption and wastage and shall provide continuous training and conduct campaigns to highlight the
importance of health and safety practices and measures
• Hartalega shall provide personal protective equipment and first aid at all times to all staff and
guests when necessary
• Hartalega shall provide to all employees on a regular basis effective health and safety training
including on-site and job-specific training. Such training shall be repeated for new and reassigned staff
when incidents have occurred and when changes in technology and new machinery present new risks
and designated and qualified trainer(s) shall be engaged in-house for this purpose
• Hartalega shall establish documented procedures to respond to potential risks to health, safety
and environment and maintain written records of all health and safety incidents; Hartalega shall conduct
regular risk assessment surveys and proactively act to mitigate potential risk elements identified
• Hartalega respects the freedom of association and right to collective bargaining – Hartalega
enables representative(s) of employees to have access and engage with management
• Hartalega shall ensure that an environment always exists that all staff and stakeholders are
treated with respect and dignity. The workforce shall be able to work in a professional atmosphere
promoting teamwork and attainment of Hartalega’s objectives and vision. Illegal and improper
interference with employee work shall be taken seriously and dealt with
• Hartalega shall not engage in or support discrimination in hiring, remuneration, access to
training, promotion, termination or retirement based on race, national or territorial or social origin,
caste, birth, religion, disability, gender, sexual orientation, family responsibilities, marital status, political
opinions, age or any other condition that could give rise to discrimination; Hartalega encourages
diversity of workforce and talents at the Board and Corporation level regardless of gender, race,
nationality, belief and religion believing that diversity of experience and background will contribute
towards diversity and generation of ideas, creativity and innovation
• Hartalega shall not allow any personnel behavior that is threatening, abusive, exploitative or
sexually coercive, including gestures, language and physical contact in its premises or during work hours
• Hartalega shall remunerate employees with wages, salaries and benefits that meet or exceed
the legally required minimum. Hartalega will not dock or withhold remuneration for disciplinary or
punitive reasons. Hartalega will treat all employees with dignity and respect. The Corporation shall not
engage in or tolerate the use of corporal punishment, harsh or inhumane treatment, mental or physical
coercion or verbal abuse of employees
• Hartalega will comply with all local labour laws, applicable rules and industry standards on
working hours and time of work. The normal work week, not including overtime, shall not exceed 48
hours. All overtime work shall be voluntary, shall not exceed 12 hours per week and shall not be
requested on a regular basis. Hartalega undertakes to ensure that workers will not work excessive hours
• Hartalega is committed to providing internship, graduate placement, youth development and
apprenticeship programmes to nurture young talents
• Hartalega will set aside annual budget for provision of internal and/or external training
programmes for the personal development and training of human resource
• Hartalega will perform a risk assessment and analysis prior to any major projects to be
undertaken - employee welfare will be a paramount consideration in any risk assessment of major
projects
• Management of Hartalega and relevant staff shall participate in workshops or meetings on
labour standards and human resource best practices and be committed to continuous development and
improvement on human resource best practices
• Hartalega shall provide ready access and avenues for whistleblowing and grievances to all
employees and make known such availability
• As a public listed company, Hartalega prohibits all bribery and corruption practices in any form
or guise. Decisions related to the activities of the Corporation are made exclusively for the benefit of the
Corporation and not to the benefit of any individual person. If any of these policies have been violated,
the offending party will be investigated and may be disciplined for non-compliance with penalties up to
and including removal from office or dismissal. Such penalties may include written notices to the
individual involved that a violation has been determined, a reprimand or censure, demotion or re-
assignment of the individual or suspension. Violation of anti-bribery and anti-corruption policy may also
constitute violation of law and may result in criminal penalties and civil liabilities for the covered party
and the Corporation. All parties involved are expected to cooperate in internal investigation of
misconduct
• Todate as at 30th September 2015, Hartalega has met and qualified for ISO 9001: 2008 for
quality management system, ISO 14001: 2004 for environment management system and various other
medical equipment standards; as recent as 2016, we have successfully acquired OHSAS 18001
certification.
• Hartalega shall continuously review the social accountability policies and practices to ensure
that they are in line with and adhere to the latest changes and developments in international
conventions, rules, regulations and frameworks on labour and human resources
We are not just committed to building a sustainable corporate infrastructure and working environment
but we are also committed to:
Protecting water resources
We aim to go for almost total self-water treatment for our plants and dormitories as we believe
that by doing so, we can control the quality of our water and to an extent control the quality of
our products. We have invested substantially in water treatment plants to the tune of over
RM20 million.
We aim to drive water efficiency in producing every unit of glove
Reducing Energy and Carbon Footprint
Reducing energy usage per unit of glove produced, seek and invest in alternative energy
sources, proactively manage and reduce carbon footprint
Health & Safety at the Workplace
Instill and cultivate a strong culture of health and safety precaution at workplace to all
employees and stakeholders
Procurement
Encourage green sourcing as much as possible using best and ethical practices in sourcing
Business Conduct and Employment Practice
Compliance to local laws and universal best practices
Community Investment
Be proactive in communal work and contribute to community social welfare
Product Safety & Compliance
Manufacture products to specifications, customer requirements and meeting all standard
regulatory requirements
Responsible Marketing
Market products in a responsible, accountable and honest manner
Adherence to Government Regulations
Comply with all standard regulatory requirements on product, manufacturing process,
organizational structure, infrastructure, corporate regulations and environmental controls
In managing our business in a sustainable way, we have adopted a holistic approach which observes
sustainable practice being adopted across the supply and value chain from raw material suppliers to end
users. As we continue in our roadmap towards sustainability, we will continuously observe and seek out
good industry practices and innovation to inspire us. We hope that you will also be inspired to practice
sustainable ways after reading this report.
For the last year, we continued to enhance quality of life by implementing sustainable practices in the
areas of community, marketplace, workplace and environment. We are pleased to report on our journey
towards sustainability.
i. Community The community in the vicinity of our manufacturing plants in Bestari Jaya and Sepang, Selangor benefits from various community based programmes organized by Hartalega on a regular basis including:
Charity events & charity drives
Festive Visits
Healthcare carnivals
Sporting events
Visits to orphanages and old folks’ homes
Campaigns to promote protection of environment, healthy and ethical lifestyle
Scholarships and educational assistance Caring for the community is a continuous effort by Hartalega and a collective effort by every employee: the vision is clear - to give back to the community in whatever ways we can.
ii. Marketplace Our deliberate execution and attention to detail throughout all steps of manufacturing process is as foundational to our brand’s signature today as it was when the Company was founded in 1988. We not only consider the manufacturing process but also the entire supply and value chain. We work hard to make better products and smarter choices – we collaborate with both our suppliers and customers to deliver what the market truly demands in the most efficient and efficacious way. We consider our vendors, suppliers and customers as part of the extended Hartalega Family and include them to take part in our programmes to strengthen bonds and improve ties:
Sports and Recreational Activity Events
Goodwill Initiatives We also consider the requirements and requests of our customers of utmost importance and always try our best to meet their high demands. We sell mainly to quality demanding customers in North America, Europe and Japan. Hence, we ensure that our quality and quality control are of the highest standards and do not fall into FDA’s auto-detention.
Hartalega’s improvements in production not only improve efficiency, but are also able to deliver consistent quality products. Some of the differences can be found below from our peers:
HARTALEGA INDUSTRIAL NORM
Latex is evenly distributed over the gloves Inconsistent latex distribution with bad flow marks
Online packing( neat and less contamination due to minimal human intervention)
Offline packing (crumpled glove with higher chance of contamination)
Small lot size (better traceability) Bigger lot size
Stretchy & elastic, yet strong Soft but under cured
Form fitting with excellent stress retention Looses form when stretched
Minimal change in physical properties Gloves may turn harder over time
Tighter in-house quality check of AQL 1.0 In-house quality check of AQL1.5 and above
Hartalega products conform to all internationally recognized standards such as:
Good Manufacturing Practices (GMP) Acceptable Quality Level Standards under the Food and Drug Administration of the USA American Society of Testing and Materials (ASTM) European Committee for Standardization (CEN) Japanese Institute of Standards (JIS) Australia and New Zealand AS/NZS standard
The Company has been ISO certified since 1996 and is currently accredited to:
ISO 9001:2008 by TUV Management Service GmbH ISO 14001:2004 by TUV SUD Asia Pacific TUV SUD Group ISO 13485:2003 (CMDCAS) by TUV America EN ISO 13485:2012 by TUV Product Service GmbH EC Certificate by TUV Product Service GmbH OHSAS 18001
Hartalega was also admitted to the FTSE4Good Bursa Malaysia Index in recognition of our dedication towards good environmental, social and corporate governance practices. Due to the demands of the marketplace and customers, we have come out with many product innovations namely: polymer coated latex gloves, thin gauge nitrile gloves, anti-bacterial gloves and various coatings to our gloves etc.
iii. Workplace Each and every one of our staff members enjoy the opportunity to improve skills, acquire new knowledge and train to excel in their chosen career paths including:
Education Assistance Scheme
On-the-job Training
Seminars
Team building activities such as paintball competitions and Family Days
Sports Clubs
Social Events such as Movie Nights, Durian Fest and Sports Carnivals We invested in a training department and engaged Learning & Development Manager and trainees to ensure that our staff is well equipped with knowledge and skills. Other than the above, Hartalega Sdn Bhd ensures that the welfare of its workers is always looked into.
Examples of benefits given to employees (all levels) include free medical treatment at our in-house
clinic, in-house ambulance, group personal accident insurance coverage, and education assistance
scheme for employees’ children and a competitive salary & benefits package. Gratuitous lunch is
provided once a week to workers. In addition, the company has provided employee stock options (ESOS)
that can be exercised over a period of 5 years and continues with a third tranche.
(a) Health, Safety & Environment
At Hartalega, we aim to be an industry leader with dedicated efforts in Health, Safety and Environment
(HSE) issues. We are committed to continuously improve, adapt and monitor all aspects of our
operations to ensure sustainable growth and development. We will also innovate to reduce energy cost
via production re-design, automation and inculcated work habits.
Some of the key aspects in our HSE policy include:
Compliance with all applicable health, safety and environmental law and regulations
Continual improvement in health, safety and the environment with the goal of zero
occupational ill health, zero accident and zero environmental pollution
Designing, operating and maintaining of all plants and machineries in a way that protects health,
safety and environment
Promote safety consciousness and discipline
Efficient usage of natural resources and energy – concerted efforts to reduce carbon emission,
water and energy usage
Establish and maintain contingency procedures to minimize harm from accidents, in the unlikely
event that they occur
Ongoing HSE campaign to educate staff and enhance awareness on importance of adhering to
safety procedures and taking necessary precautions at all times
Establishing OHSAS (Occupational Health and Safety Management System) which includes
health checks for employees, first aid and emergency response training, chemical safety and
equipment safety training, periodic checks on air, noise and water quality
Continuously innovating and improving ways to reduce energy consumption – we focus on re-
engineering of production line and automation to reduce energy cost and conserve energy
Health
The health and welfare of our workforce are among Hartalega’s prime concerns. There are dedicated
programmes in place to ensure our people live a healthy, happy lifestyle.
Health Screening
Health Insurance
Health & Safety Campaign
Nutritious and Balanced Canteen Food
On-site clinic
Safety
On-site safety is one of our top priorities, and we’ve made it a must for employees to nurture a safe
work environment and look out for each other.
Emergency Response Plan (ERP) Training
First-aid Training
Ambulance Training
Evacuation Drill
Fire-fighting Training
Chlorine Training
Safety Patrol
Regular awareness campaigns
In tandem with efforts to ensure safety protocols are maintained, we established the Occupational
Health and Safety Management System (OHSAS). Some of the more prominent OHSAS initiatives would
include:
Health checks for employees
Emergency response team training
Chemicals and equipment safety training
Periodic checks on air, noise and water quality
Fire drills
We are constantly upgrading OHSAS with a view of ensuring absolute safety of our workers as
paramount importance.
(b) Environment
Constant monitoring of our manufacturing output and processes has helped keep our operations well
under the parameters of emission levels and environmental compliance.
Air Emissions
Water Discharge
Stack Flue Monitoring
Sewerage Servicing
Hartalega has always adopted a pro-active approach in protecting the environment through proper
management of waste and energy.
To reinforce our proactive stance in managing environmental controls, we continue to successfully
surpass the guidelines set by JAS (Jabatan Alam Sekitar) and other regulators. We are now setting a new
benchmark in the industry by upgrading ourselves to the more rigorous standards of Schedule A from
the conventional standards of Schedule B.
Hartalega has successfully applied for the ISO 14001 environmental management systems certification,
further underlining our commitment towards care for the environment.
Waste Water Treatment System and Biomass Energy Plants
Hartalega takes pride in innovative product and process designs but we take technological leadership a
step further. How we impact the environment is not only important to us but also crucial to the interests
of our future generations.
Effluent water treatment plants
No less than RM20 million has been expended on the construction of effluent water treatment plants,
ensuring effluent that we discharge is harmless to the environment. Cost of the operation and
maintaining the waste water treatment plants are approximately RM6 million per annum. The latest
treatment plants operate on an advanced dissolved air flotation technology from Austria.
We have also incorporated scrubber towers to de-chlorinate the excess chlorine used in our production
lines – these scrubber towers each cost in excess of RM5.2 million and are attached to every plant of our
Biomass Energy Plants
These plants are a technological feat that is unprecedented in Malaysia converting waste that is
otherwise useless to valuable renewable energy resource. This avoids emission of greenhouse gases
such as carbon monoxide and methane from anaerobic decay of the waste.
Our biomass energy plants go a long way back to 2004 where we invested about RM16 million in a fully
automatic plant under computerized monitoring system (SCADA or Supervisory Control and Data
Acquisition System) operating with good combustion and emission controls.
Hartalega marked another milestone when her biomass energy plants were the first successfully
registered to the United Nations Framework Convention on Climate Change (UNFCCC) or Kyoto Protocol
in 2007 enabling her to trade carbon credits.
Biomass, a renewable energy source as alternative to fossil fuels, have been effective in converting oil
palm waste into valuable source of energy and avoid emission of greenhouse gases hence combating
climactic change and global warming. Biomass will play a more prominent role with rising cost inflation,
increasing scarcity of fuel sources and imminent natural gas price hikes in line with the Government’s
subsidy rationalization programme and policies.
Hartalega intends to double the commissioning of biomass plants increasing from 26 megawatts to 58
megawatts in its expansion plan recognizing the importance of reducing carbon footprints.
Sustainability Governance
Governance keeps sustainability on track and Hartalega is right on-track with formalizing and
institutionalizing governance as a key framework infrastructure to contain malpractices and improve
accountability.
We have formalized the following instruments of corporate governance:
Board Charter
Terms of Reference for Nomination Committee
Code of Conduct for Board of Directors
Code of Conduct for Employees
Whistleblowing Policy
Social Accountability Policy
We will continue to refine and improve the terms of reference of these various policy documents with
more experience and perspective. We have previously incorporated Risk Assessment Committee and is
in the process of setting up a Corporate Sustainability Governance Group.
We intend to put in place a governance model at global and local level. At every subsidiary or company
will be a personnel designated for reporting matters related to sustainability and governance.
Ultimately, they will report to the designated personnel at Human Resources who will collate all records
and who will in turn report to the Managing Director.
