Alam Flora Group Communication on Progress 2022

Our compactors or fleets contribute to the large carbon footprint. To improve our fleet utilisation, our Geographical Information System (GIS) team has been using the integrated development environment (IDE) software to construct spatial data comprehensively that covers plan and plot route optimization to optimise delivery routes and schedules, reducing fleet maintenance costs and fuel consumption. Picking up the waste at point of collection on schedules leads to better customer satisfaction and experiences. - Air quality / pollution- Incinerator technology
Management of solid waste is a complex and crucial procedure. The most effective approach to dispose of solid waste is through a thermal treatment facility (incinerator), which requires less space than a landfill and has fewer issues with methane gas emission, odour and leachate.
However, the high moisture of waste in Malaysia leads to a challenge in operating the incinerators effectively. Additionally, they harm the environment by emitting gases, hazardous compounds, and liquids that leach from trash.
Due to size, location, and landscape constraints, it is more difficult to ensure the sustainability of solid waste management in tourist destinations like Pangkor Island and Cameron Highlands. *Investing in technology and green assets
The technology utilised in the two plants operated AFES successfully overcomes majority of the issues, and could therefore be implemented in incinerator plants across the nation. More interestingly, the technology was developed by local experts under the direction of AFES Advisor, Dr. Muhd Noor Muhd Yunus, who was formerly the Deputy Director General of the Malaysian Nuclear Agency. The team applied their expertise to produce a new incinerator design scientifically, using simulation methods and computer models. The new design converts the gas cooler to a hybrid innovative heat exchanger and water cooling system (water quencher), successfully overcoming the issue of choking and blockage in existing gas coolers. Besides meeting the requirements of Department of Environment (DOE), an outstanding zero liquid waste discharge is achieved by reusing treated leachate water for quenching purposes. - Water quality/pollution
The demand for clean water pressures on municipal water supply. In response Alam Flora is committed to mitigating our impact on the environment by encouraging the proactive water initiatives such as install of low-flow faucet aerators in toilets and rainwater harvesting for floor cleaning as well as water supply for lorry tankers. *Rainwater harvest
We started our rainwater harvest projects in year 2016. The investment cost was around RM111,742 to install the systems at location below:
i. Mustering Point (MP) Jalan Bunus, WPKL
Date of completion: 29 February 2016
Usage: For washing
ii. Mustering Point (MP) Bandar, Kuantan
Date of completion: 26 October 2018
Usage: For washing
iii. Mustering Point (MP) Tiong Nam, WPKL
Date of completion: 16 May 2019
Usage: For washing
iv. Depoh Batu Muda, WPKL
Date of completion: 1 September 2019
Usage: Water supply for lorry tankers
v. Fasiliti Inovasi Kitar Semula (FIKS), Putrajaya
Date of completion: 20 February 2020
Usage: For toilet flushing and washing
vi. Mustering Point (MP) Taman Gelora, Kuantan
Date of completion: 7 June 2020
Usage: For washing
vii. Mustering Point (MP) Kampung Baru, WPKL
Date of completion: 10 November 2018 (Dismantle and relocate to Lot 513A)
Usage: For toilet flushing and washing
viii. Mustering Point (MP) Kampung Baru, WPKL
Date of completion: 24 May 2022
Usage: For toilet flushing and washing

• Measurement of outcomes
• Description of how the company monitors and evaluates environmental performance.
• This section should be read in conjunction with Malakoff’s Annual Integrated Report for the same reporting cycle. Carbon footprint is the standard way of measuring and reporting the environmental impact from our operations including fleets and offices. One strategy to lessen the carbon footprint and operation cost is to lower the use of energy. As of September 2022, we see a reduction of the energy consumption by 13% compared to 2021 for two mini incinerators in Cameron Highlands, Pahang and Pulau Pangkor, Perak. The carbon emission also reduces 3.3% per waste tonnage. Our technology built for the incinerators met Department of Environment’s standards. The mini incinerators are operating with mix energy, which are diesel and electricity. In 2022, the fuel consumption was recorded at 164,238 litres (2021: 233,538 litres), emitting 10,415 tCO2e (2021: 10,699 tCO2e) which reduced by 29.7% and 2.7% respectively. In 2022, the electricity consumption was recorded at 1,292,625 kWh (2021: 1,439,219 kWh), emitting 897 tCO2e (2021: 999 tCO2e), both reduced by 10.2%. In 2022, we are able to see the reduction of GHG emission for energy by 3.2% per waste tonnage. The total GHG emission recorded a decrease by 3.3% with 11,312 tCO2e in 2022 (2021: 11,698 tCO2e). The GHG emitted around 0.61 tCO2e in 2022 and 0.63 tCO2e in 2021 per waste tonnage. (GRI 302-1 Energy consumption within the organization, GRI 305-1 Direct (Scope 1) GHG emissions, GRI 305-2 Energy indirect (Scope 2) GHG emissions, GRI 302-4 Reduction of energy consumption) Our technology such as AD contributes 35m³ of biogas or the renewable energy which could be used to operate the internal facility-conveyor belts for four hours of consumption. Our food waste was around 44% of the overall total waste collected and it will continue to increase. Through AD technology, food waste from Putrajaya is collected and screened to remove the impurities that can damage the AD. The 500kg of food waste per day is converted into biogas that becomes a source of renewable energy for the internal electricity consumption. As of September 2022, AD consumed 10,520 of non-renewable energy to generate 1,014 m³ of biogas. AD emitted a total of 7.63 tCO2e of greenhouse gases in 2022, with 0.53 tCO2e per tonne of food waste. (GRI 302-1 Energy consumption within the organization, GRI305-2 Energy indirect (Scope 2) GHG emissions) As of September 2022, the electricity consumption for office operations in Alam Flora group was recorded at 2,945,556 kWh (2021: 2,856,259 kWh), emitting 2,044 tCO2e (2021: 1,982 tCO2e) which accounted for 3.1% increase. The total GHG emission recorded an increase by 3.1% with 2,044 tCO2e in 2022 (2021: 1,982 tCO2e). The GHG emitted was around 0.67 tCO2e in 2022 and 0.65 tCO2e in 2021 per employee. (GRI 302-1 Energy consumption within the organization, GRI 305-2 Energy indirect (Scope 2) GHG emissions) We started our electric vehicle (EV) pilot project to our support vehicle and equipment such as mini road sweeper, blower and grass cutter. In 2022, we budgeted around RM500 million to upgrade our fleet’s engine that estimated to reduce 20-30% of GHG emission per litre. Maintain our asset's and facility’s maintenance programme to ensure the efficiency of energy consumption. As of September 2022, the diesel consumption of Alam Flora group was recorded at 5,358,455.16 litres (2021: 5,763,446.03), emitting 16,808.67 tCO2e (2021: 18,079.07 tCO2e), showing a decrease of 7%. We can see a 3.2% increase in petrol consumption with 153,620.70 litres (2021: 148,840.17 litres), emitting 386.73 tCO2e (2021: 374.69 tCO2e). (GRI 302-1 a. Energy consumption within the organization, GRI 305-1 Direct (Scope 1) GHG emissions) Sustainable Value Chain
  We ensure that all new vendors and suppliers are screened based on environmental criteria (i.e., ISO 9001 Quality Management, ISO 14001 Environmental Management and ISO 45001 Occupational Health & Safety certifications). (GRI 308-1 Percentage of new suppliers that were screened using environmental criteria) The demand for clean water pressures on municipal water supply. In response Alam Flora is committed to mitigating our impact on the environment by encouraging the proactive water initiatives such as install of low-flow faucet aerators in toilets and rainwater harvesting for floor cleaning as well as water supply for lorry tankers. (GRI 303-1 Interactions with water as a shared source)
  As of September 2022, water consumption in Alam Flora group was recorded at 122,074 m³ (2021: 201,238 m³), showing a reduction of 39.3%. The water consumptions were around 40 m³ in 2022 and 66 m³ in 2021 per employee. (GRI 303-5 Water consumption)
  We have 7 rainwater harvest systems with the overall capacity of 28,033 litres. In 2022, the potential water collected, withdrawn and consumed approximately 5,009,882 litres. (GRI 303-3 Water withdrawal, GRI 303-4 Water discharge). The biggest system is in Depoh Batu Muda due to high water supply requirement for high pressure water jetters, and the system is part of our water security for clean water. Our incinerators technology has zero leachate discharge.
  We benefit our stakeholders, especially the local community via supporting biodiversity in our local communities operate. Leachate that discharges from the MSW causes significant threat to surface water and groundwater. Besides that, the leachate also caused an awful smell and contributes to bad health and well-being.
  Leachate can be defined as a liquid that passes through a landfill and has extracted dissolved and suspended matter from it. Leachate results from precipitation entering the landfill from moisture that exists in the waste when it is composed.
  Our incinerators technology has zero leachate discharge as the leachates are being treated and reused for flue gas cooling process in water quenching system. The treated leachate from the treatment plant is used as one of the water supplies to lower the flue gas temperature to approximate 200°C from 850°C-1000°C after combustions. Our circularity measures, to prevent waste generation and to manage significant impacts from waste generated are: (GRI 306-1 Waste generation and significant waste-related impacts, 306-2 Management of significant waste-related impacts)
  (1) collaboration in the value chain and business model innovation via policies for procurement from suppliers that have sound waste prevention and waste management criteria;
  (2) end-of-life interventions by establishing and improving facilities for waste management, including facilities for the collection and sorting of waste. The net waste handled in Alam Flora group was 1,030,502 tonnages in 2022 and 1,131,000 tonnages in 2021. We also measure the recycling activity within our operations via 3R (Reduce, Reuse and Recycle) programme. This 3Rs is embedded to our employees’ KPI with the individual target of not less than 45kg of recycled waste per year. Net Zero Carbon Emissions goal by 2050
  As part of the Malakoff Corporation Berhad (MCB) Group, we are guided by MCB Group’s Net Zero Carbon Emissions goal by 2050 using science-based targets and by setting clear goals to increase revenue contribution from renewable energy and environmental solutions as well as to reduce waste.
  The new Sustainability Framework, which was established at the beginning of 2022, will enable us to track and improve our sustainability performance. Nine impact areas have been identified, with three impact areas in each pillar, addressing issues from climate change to employee safety and well-being as well as corporate governance. Tracking the performance that aligning with the MCB’s framework:
  a) Climate Change
  Reducing our Greenhouse Gas (GHG) emissions and moving towards a low-carbon system by transitioning to Renewable Energy (RE) & Environmental Solutions
  b) Circular Economy
  Reducing overconsumption, designing out waste & regenerating the ecosystem
  c) Water Security
  Improving the efficiency of water usage & long-term supply of water in water-stressed regions

• Assessment, policy and goals
• Description of the relevance of anti-corruption for the company (i.e. anti-corruption risk-assessment). Description of policies, public commitments and company goals on anti-corruption.
• Alam Flora Sdn. Bhd. (Alam Flora or Group) is a subsidiary of Malakoff Corporation Berhad (MCB), Malaysia’s leading Independent Power Producer (IPP) listed on the main market of Bursa Malaysia. We have a zero-tolerance policy towards any form of bribery by, or of, its employees or any persons or companies acting for or on behalf of Alam Flora Group. Our Anti-Bribery Policy & Framework is in line with international guidelines and established in accordance with the Guidelines on Adequate Procedures issued by the Malaysian Anti-Corruption Commission (MACC) pursuant to Subsection (5) of Section 17A of the Act. We value honesty, integrity, and fairness in all aspects of our business and expect the same from those with whom we do business. We are committed to combating bribery and unethical business practises in the jurisdictions in which we operate. As a result, employees and any parties acting for or on behalf of the Group are strictly prohibited from directly or indirectly soliciting, accepting or offering bribes in relation to AFSB Group’s businesses and operations. Our Anti-Bribery Policy Statement is implemented at all levels within the Company and sets the right “tone from the top”. It is available on our corporate website. We conducted our materiality matters research assessment on 17 companies, including the top 15 waste management companies in the world. According to our findings, the majority of companies prioritised anti-corruption and business ethics. Under the governance pillar, our materiality ranked the following items: (1) anti-corruption; (2) business ethics; (3) supporting and respecting human rights, (4) public disclosures of policy and practices; (5) data privacy and security; (6) supply chain management; (7); and (8) political advocacy and contribution.

• Measurement of outcomes
• Description of how the company monitors and evaluates anti-corruption performance.
• This section should be read in conjunction with Malakoff’s Annual Integrated Report for the same reporting cycle. The Board of Directors and Top Management are committed to implementing and enforcing effective and robust policies and procedures to prevent, monitor and eliminate bribery, and to continually improve AFSB Group’s Anti-Bribery Management System. Corruption Risk Assessment (CRA) is conducted within Alam Flora Group and its subsidiary by each respective department to identify any significant risk related to all operations. (GRI 205-1 Operations assessed for risks related to corruption) In regard to the communication and training, the Anti-Bribery Policy was communicated to all employees via emails and a survey was conducted across the Group’s material businesses which are in HQ, Shah Alam, Selangor, Pahang, Kuala Lumpur and Putrajaya. The results of the survey will be used to focus interventions on specific areas required to enhance our programme further. On 27 September 2022 a briefing session on Section 17A Corporate Liability Malaysian Anti-Corruption Commission was conducted at Glenmarie Golf & Country Club, Glenmarie, Shah Alam. There were 89 of participants including the Top Management attended to the briefing. Our Chairman, Tan Sri Abu Kassim bin Mohamed, accompanied by our CEO, Dato’ Haji Mohd Zain bin Haji Hassan were also presented to the session. The briefing was conducted by Tn. Jayantha Kumar Sen Gupta, the Deputy Head of Private Sector Management at the Community Education Division from Malaysia Anti-Corruption Commission (MACC). RMID conducted awareness sessions with 41 vendors and suppliers from Kuala Lumpur, Putrajaya and also in Kuantan during the recent Vendors' Interface Townhall 2022, organised by the Fleet & Engine Department on 23 August and 5 September 2022. (GRI 205-2 Communication and training about anti-corruption policies and procedures) Whistleblowing mechanism
  The Board Audit Committee has the overall responsibility over this policy and shall oversee the implementation of this policy. The Head of the Internal Audit Department is responsible for the administration, implementation of this policy and will include but not limited to establishing relevant Standard Operating Procedures to support the effective implementation of this policy. This policy and the provisions herein may be reviewed and amended whenever necessary to ensure its effective implementation. Any amendment to this policy shall be made by the Head of Internal Audit Department, subject to approval by the Board of Directors. (GRI 2-26 Mechanisms for seeking advice and raising concerns)

Note: Responsibility for the content of participants" public communication related to the Ten Principles of the UN Global Compact and their implementation lies with participants themselves and not with the UN Global Compact.