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MEWAH INTERNATIONAL INC.SUSTAINABILITY REPORT 2017
JOURNEY IN SUSTAINABILITY
02 Board of Directors’ Statement03 About Mewah Group04 CorporateProfile05 MewahGroupManufacturingCapabilities
&GlobalPresence
06 Overview of Mewah Sustainability Guide
08 Focus Area 1: Minimizing our Environmental Footprint 09 CoreArea1:EnergyEfficiency/
Carbon Footprint10 CoreArea2:WaterManagement/
Water Footprint 12 CoreArea3:WasteManagement/
Waste Footprint
15 Focus Area 2: Responsible Supply Chain16 CoreArea1:MewahSustainable
PalmOilPolicy17 CoreArea2:Towardsfulltraceability22 CoreArea3:SupplierEngagement26 Core Area 4: Grievance Procedure
28 Focus Area 3: Product Quality and Safety29 Core Area 1: Our Commitment to
Buyers30 CoreArea2:Certificationatour
Manufacturing Sites
33 Focus Area 4: Valuing Our People35 CoreArea1:LabourPolicy&Codeof
Ethics 36 Core Area 2: Sedex Smeta
Compliance36 Core Area 3: Training &
Development38 CoreArea4:Health&Safety
41 Focus Area 5: Community Support44 CoreArea1:ActiveVolunteerismof
ourEmployee47 Core Area 2: Supporting Our Next
Generation 49 CoreArea3:DisasterRelief
CONTENTS
1.We sought to apply the guidance ofGlobal Reporting Initiative (GRI) index,G4 Guidelines for the boundary settings,focusing on performance data and reporting on aspects which are most significant, asreflectedinMewahSustainabilityGuidelinesandMewahSustainablePalmOilPolicy.
2.Asa start,wehavechosen to concentrateon our Group’s refinery business inMalaysia,whichisthecorebusinessoftheGroup,whererelevantdataismorereadilyavailable.Weexpecttoextendthescopeofreporting to cover other business segments and jurisdictions more comprehensivelyin forthcoming reports on a progressive basisaswebuildupourreportingcapacity.Ultimately, our aim through this reportis to provide our stakeholders with acomprehensive understanding of the essenceofoursustainabilitycommitments,particularlyonourapproachinhandlingallrelevantmaterialissuesinourbusiness.
3.Toascertainthecontentsofthisreport,weconducted an informal survey around ourstakeholders and identified our main riskareas.Wethenstartedcollectingdataandcameupwith improvementplanssoas toimprove our performance year after year.
4.InrelationtoourCrudePalmOil(CPO)andCrudePalmKernelOil(CPKO)supplychain,we are reporting at policy-level on ourpolicies,traceabilitymilestonesandprogressin Traceability to Mill (TTM) & Traceabilityto Plantation (TTP). The performancedatawill focuson identifyingmaterialESG(environmental,social,governance) factorsinourrefineryoperations.
REPORTING SCOPE AND BOUNDARIES:
01
JOURNEY INSUSTAINABILITY
BOARD OF DIRECTORS’ STATEMENT
Our“JourneyInSustainability”(“JIS”)programprimarilyfocuseson5keyareas:(1)MinimizingOurEnvironmentalFootprint, (2)ResponsibleSupply Chain, (3) ProductQuality, (4) ValuingOurPeopleand(5)CommunitySupport.Thisisthe framework by which the Board and Senior Managementfocusondevelopingpoliciesandpractices, setting performance targets andaction plans in order to create sustainablevalueforallshareholders.
With the support of the Senior Management and Mewah Group Sustainability Team, theBoard continues to provide oversight to ensureallmaterialEnvironmental,SocialandGovernance (“ESG”) topics are reviewed andalignedwithourJISprogram.
With the recent introduction of SGX Listing Rule 711A, the Board continues to believe inbuilding sustainable business practices anddisclosures. We are committed to do ourbesttoensuresustainablebusinesspracticesthroughout our business operations.
MINIMIZING OUR ENVIRONMENTAL FOOTPRINTThe focus covers our impact on various environmental footprints in terms of carbondioxideemissions(iegreenhousegas“GHG”),water consumption and waste management at our manufacturing premises.
RESPONSIBLE SUPPLY CHAINOur aim is to provide our stakeholders witha comprehensive understanding of our commitment toasustainablepalmoilpolicy,full traceability milestones with regard toTraceability to Mill (“TMM”) and Traceabilityto Plantation (“TTP”), Supplier EngagementProgram,andlastlyGrievanceProcedures.
PRODUCT QUALITY Weareplacingourconsumersasourhighestimportance by building trust through ourqualitativeandsustainableproductofferingswithazero-defectandno-wasteattitudewhilemakingthisassuranceagroup-wideobjective.
VALUING OUR PEOPLEOur employees remain a top priority as wework hard to strengthen labour practices inareassuchaswagesandemployment,healthand safety, labour relations, code of ethics,traininganddevelopmentandalsocomplyingto SEDEX SMETA by banning forced & childlabourandhumantrafficking.
COMMUNITY SUPPORTWebelieveinbeinggoodcorporatecitizensinthe community in which we operate. We are always contributing to charities, caring foryoung,oldanddisabledandengaginginsocialevents.
Mewah’sBoardofDirectorsisfirmlycommittedto building and advancing our sustainabilityagenda and program for the benefit of ourGroup, our Shareholders, our StakeholdersandourCommunities.We,therefore,wanttoexpressourprofoundgratitudetoallwhoareparticipating in this journey with us as we work towardsourgoalsandcommitments.
BOARD OF DIRECTORSMEWAH INTERNATIONAL INC.
02
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
ABOUT MEWAH GROUP
Mewah Group is an integrated agri-business focusedonedibleoils and fats andheadquartered in Singapore.
Weareoneofthelargestedibleoilprocessorsintheworldbycapacity.Ourbusinessactivitiesinclude edible oil refining, specialty fats andbiodiesel. Featuring integrated operationsthroughouttheedibleoilsandfatsvaluechain,fromsourcingandprocessingofrawmaterialstopacking,branding,merchandising,shippingand distribution of the products.
Mewah’s portfolio of high quality processedagricultural products is the preferred choiceofthefoodmanufacturingindustry,aswellastheindustrialandconsumerfoodbusinesses.Mewah’s products occupy a leading share initstargetedmarketshavingsoldtocustomersin more than 100 countries, duly supportedby its wide range of brands including longestablishedandwellrecognizedOKIandMOIbrands. We are growing at an impressive ratewithmore than 2,000 employees underMewah’s wings.
03
JOURNEY INSUSTAINABILITY
CORPORATEPROFILE
An INTEGRATED AGRI-BUSINESS focused onedibleoilsandfats
Our operations are integrated throughout the value chain from sourcing of raw materials, refining, processing, packing, branding to marketing and distribution to end customers under our own brands.
• Plantation• Milling
Upstream
Customers
• Refiningpalmoil• Specialtyfats• Applications
developments
Midstream
• Consumer packs• Branding• PrivateLabel• Sale/marketing• Distribution
Downstream
Long establishedandwellrecognised brands – Oki and Moi
Productsaresoldto customers in
SALES AND MARKETING OFFICESMalaysia,Singapore,Australia,China,Russia,Turkey,India,IvoryCoast,Thailand,USA,
Benin and Ghana
more than
countries100
Totalrefiningcapacity of
million MT annually3.5
of operations
Over
years60
Malaysia
Singapore
4 refineries and processing plants
2 packing plants
1 biodiesel plant
1 dairy manufacturing facility
1 packing plant
04
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
BULK SEGMENT
CONSUMER PACK SEGMENT
Sourcing of raw
materials
Sourcing of refinedproducts
Refiningand
processing
Sales,marketing & distribution
Packing and branding
Refinedproducts
CONSUMER PRODUCTS RANGE
Producesandsellsvegetable-basededibleoilandfat
productsinbulkformprimarilyto distributors and factories involvedintheproductionof
confectionery,bakeryproductsand other food items.
Ourrangeofconsumerproductsincludecookingoils,margarine,rice,sweetenedcondensedcreamer,evaporatedmilk,cheese,soap,detergentandpremixpowder.
Wearecontinuouslyworkingonexpandingtheproductsrange.
Producesvegetable-basededibleoilandfatproducts,inconsumerpackformandsellunderownbrands and under the brands ofthirdparties,primarilyto
importers and distributors at destination markets.
Bulk
CUSTOMERS
Consumer Pack
SUPPLIERS
05
JOURNEY INSUSTAINABILITY
OVERVIEW OF MEWAH SUSTAINABILITY GUIDE
AtMewah,sustainabilityispartofeverythingwedoandbuildinga sustainablebusiness ispartofourvalueproposition.
The five (5) focus areas and thirteen (13) core areas of Mewah Sustainability Roadmap:
Mewah’s sustainability roadmap is divided into 5 focus areas:
I. MinimizingourEnvironmentalFootprintII. ResponsibleSupplyChainIII. ProductQualityandSafetyIV. ValuingourPeopleV. Community Support
IMinimizing Our Environmental
Footprint
IIResponsible Supply Chain
IIIProduct Quality
and Safety
IVValuing Our
People
VCommunity
Support
Energy Efficiency/
Carbon Footprint
SustainablePalmOilPolicy
Our Commitment
to Buyers
Sedex Smeta Compliance
Active Volunteerism
of Our Employee
Water Management
Traceability
Mewah’s QualityPolicy
Recruitment,Training &
DevelopmentSupporting
the Next Generation
Waste Management
SupplierEngagement
Certificationat our
Manufacturing Site
Code of Ethics
DisasterReliefHealthandSafety
Grievance Procedure
06
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
MINIMIZING OUR ENVIRONMENTAL FOOTPRINT
CO2 CH4
N2O
O3
CARBONFOOTPRINT
WASTEFOOTPRINT
WATERFOOTPRINT
Electricity
Chemical
NaturalGas
Rainwater Harvesting
4R
07
JOURNEY TOWARDSSUSTAINABILITY
FOCUS AREA 1: MINIMIZING OUR ENVIRONMENTAL
FOOTPRINT
ThisfocusareacoversMewah’simpactonvariousenvironmentalfootprintsintermsofcarbondioxideemissions,waterconsumptionand waste management in our manufacturing premises.
Through the years, we proactively work to minimise ourmanufacturing emissions and improved our environmentalfootprint per metric-ton of product produced. We also drivecollaborationthroughoutoursupplychaininanefforttoreduceemissions associated with our raw materials processing tilldeliveringourproductstothehandsofourbuyers.
Thethreeidentifiedcoreemissionareas:
1) Energy efficiency/ Carbon footprint2) Water management/ Water footprint3) Waste management/ Waste footprint The processing of edible oils is both complex and energy-intensive.Mewah’sprocessingplantsdifferincapacity,capabilityandrangeofvalue-addedproducts.Thiswillbringaboutdifferentenvironmentalfootprintindifferentfacilities.However,wecontinuetorelentlessdrivereductionofgreenhousegas(GHG),waterandwaste emissions within our own manufacturing operations.
08
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
CORE AREA 1: ENERGYEFFICIENCY/ CARBON FOOTPRINT
Carbonfootprintisdefinedasthetotalamountof greenhouse gas (GHG) emission thatassociated with our manufacturing activities. The standard unit of measurement for carbon footprint is carbon dioxide equivalents(CO2e).GHGEmissionsisanall-encompassingmeasurement for the carbon footprint and energyefficiencyinourproduction.
At Mewah, we are mindful that increasingcarbon footprint is having profound effectson the environment. The rising temperature in ourplanetcanpossiblyleadtorisingsealevelswhere warmer water occupies more space thancoolerwater.
The primary contributing factors to GHG in our production sites are:
i. Electricityconsumption,ii. Chemicalsconsumption,iii. Fuelconsumption.
AllMewah’sproductionsitesactively identifytheir GHG emission sources and have a standardmethodology tomeasure our GHGemissions from our production activity. These numbers are compiled on a monthly basis,evaluatedandprojectsareinplacetofurtherimprovetheseconsumptionfigures.
1.1.1 GHG EMISSIONS IN OUR PRODUCTION SITESOur greenhouse gas emissions (GHG) indexshows the quantity of GHGs emitted per metric-tonofproductprocessedorpackedinour manufacturing premises. This is measured inkilogramsofcarbondioxide-equivalentpermetric ton of product (kg CO2e/MT). In year2017,we sawaminor increase in theoverallGHG emission that was mainly driven byincreaseinourproductioncapacity.Ourgoalis to reduce the carbon footprint of Mewah’s production sites by 10% by year 2025.
Year 2013-2017Overall Group GHG Emission Summary
Year
Year
GH
G E
mis
sion
(kgCO
2/M
Tprod
uct)
ElectricityCo
nsum
ption
Intensity(kWh/MTProd
uct)
Year 2013-2017Overall Group Electricity Consumption Summary
11.96 12.23 13.23 12.53
15.20
0.00
5.00
10.00
15.00
20.00
25.00
30.00
2013 2014 2015 2016 2017
36.30 36.45 37.23 36.15 39.10
20.00
30.00
40.00
50.00
2013 2014 2015 2016 2017
09
JOURNEY INSUSTAINABILITY
0.14 0.15 0.18 0.19 0.19
0.00
0.10
0.20
0.30
0.40
0.50
2013 2014 2015 2016 2017
CORE AREA 2: WATERMANAGEMENT/ WATER FOOTPRINT
1.2.1 OUR FOCUS & ACTION PLANWefocusoureffortsonkeyareaswhereourportfolioandbusinessscaleallowustohavethe biggest impact that offer the biggestopportunities for our business.
Our action plan in reducing our waterconsumptionincludes:
i. Consistently assessing water-relatedimpacts and risks across our supplychain.
ii. Identify uses of water in our factories and set targets to reduce fresh water use.
iii. Continuetoimproveconservationefforts(water-savingefforts)atourfactories.
There was a rising trend on water consumption between the years 2013 to 2017 in our production sites that primarily drivenbyourbusinessgrowth.Inourrefineryplants,proactive projects have been implementedto improve our water footprint. The water consumption efficiency has improved from0.39 m3/MTproductinyear2015to0.18m3/MTproductinyear2017,throughrecyclingofwaterin the refineries. We also capture rainwaterthat fall onto our refineries and utilise thewater in various parts of the factories.
Year 2013-2017 Overall Group Water Consumption
Year
Year
WaterCon
sumptionEffi
cien
cy
(m³/MTProd
uct)
WaterCon
sumptionEffi
cien
cy(m
3 /MTProd
uct)
Year 2013-2017Refineries Water Consumption
0.140.19
0.39
0.20 0.18
0
0.1
0.2
0.3
0.4
0.5
2013 2014 2015 2016 2017
10
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
At Mewah-Oils, our main focus in reducing water usage is through utilization of condensate water or condensate recovery. We are constantly working to increase condensate return to boiler, instead of disposing it to drain. Condensate is the treated hot water produced as saturated steam releases its heat energy. It’s a valuable resource that contains around 25% of the useful energy in the original steam. By recovering hot condensate water, there will be water saving as well as energy saving as the amount of natural gas required for boiler fuel will reduce. An effective condensate recovery system is essential as we are working our best to improve our footprint by using less natural gas and consuming less water in our production processes.
LEE CHUN SINGMaintenanceManager,Mewah-OilsSdnBhd
11
JOURNEY TOWARDSSUSTAINABILITY
CORE AREA 3: WASTEMANAGEMENT/ WASTE FOOTPRINT
Wastemanagementplanning isanenormous taskthatinvolveslogisticalplanning,scientificknowledgeandunderstanding inorder tobalancethe impactonour environment and the cost effectivenessofthe process.
We continue to assure sustainable wastemanagement by developing action plan in all ourproduction sites.
AtMewah,weassuresustainablewastemanagementbydevelopingactionplaninallourproductionsites.
1) Wastearedividedinto4maincategories:
Category Type of WasteA GeneralWaste
B Scrap Waste
C Production Waste
D ScheduleWaste
2) The amount of waste generated by eachcategory is monitored and attention is brought to the amount generated.
3) Identify the 4R’ components in managing waste:Reduce,Reuse,RecoverandRecycle.
i. Reduce: Focus to improve efficiency. Toestablish practices that are capable toreduce the amount of waste we generate tohelptheenvironment.
ii. Reuse: Practice to reuse materialswithout changewhether for theoriginalor a different application instead ofthrowing them away, or pass thoseunusedmaterialsontootherswhocoulduse them.
iii. Recover: To set up ways to recover the energyvaluescontainedwithinthewastematerial.
iv. Recycle: Many of the things we use every day can be recycled. Recycled itemsare put through a process that makes it possible to create new products out ofthematerialsfromtheoldones.
1.3.1 RECYCLING SPENT BLEACHING EARTHSpent Bleaching Earth (SBE) is the majorsource of waste generated from palm oilrefining process. It contains 20-25% ofresidual oil. Due to the high oil content inthe Spent Bleaching Earth, its disposal canbe considered an environmental hazard, asit is highly flammable. At Mewah, 100% ofour SBE generated from our refineries arerecycled either as raw material for anothermanufacturer or used as biomass.
(Note:Bleachingearthisanadsorptivecleansingagentused in bleaching process to remove impurities andcolourpigmentsintheCPO.)
1.3.2 REUSING SCRAP WASTEReusing scrap metal offers huge benefits inprotecting the earth and saving energy. At Mewah, 100 % of scrap wastes produced,including mild steel, tin, zinc, and etc., arereused inour factoriesbeforebeing sold forrecycling.Thiscost-effectivepracticeensuresthat thesenatural resourcesare fullyutilizedbefore being disposed.
REDUCE
RECYCLE
REUSERECOVER
General Waste
Scrap Waste
Schedule Waste
Production Waste
12
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
In our business as bulk vegetable oil exporter-cum-importer,
pigging plays a very important role. Since day one of our operation,
most of our oils are moved from factory to port installation through
pipelines for shipments; likewise most of our imports are moved
from port installation tanks back to factory through pipelines.
Pigging ensures that our oil is transferred from one location to
another location with minimal losses via recovery of product that
remains in the pipeline.
Through the adoption of pigging system plus dedicated pipeline
transfer lines, we have significantly reduced the usage of cleaning
agents and water, which in turn had lowered the amount of waste
water going into our effluent plant. In short, besides cost efficiency,
the adoption of pigging system also helps towards sustainability
and brings about a positive environment impact.
NUR SHAHRIL AZMAN BIN ABDUL RAHIMShippingDepartment,MewaholeoIndustriesSdn.Bhd.
13
JOURNEY INSUSTAINABILITY
OVERVIEW: FOCUS AREA 1 MINIMIZING OUR ENVIRONMENTAL FOOTPRINT
CORE AREA TO FOCUS
• Energy efficiency / Carbon Footprint
• Water Management / Water Footprint
• Waste Management / Waste Footprint
OUR GOAL• To achieve consistent reduction
of greenhouse gas, water and waste impacts within our own manufacturing and operations.
OURCOMMITMENT
• To reduce electricity consumption, water consumption in our manufacturing and operations.
• To continuously improve waste management.
14
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
PENINSULAR MALAYSIA
SINGAPORE
SABAH
FOCUS AREA 2: RESPONSIBLE SUPPLY CHAIN
On August 2014, Mewah announced a Sustainable Palm OilPolicywithsustainabilitycommitmentsentailingthecompany’sentirepalmoilsupplychain.ThePolicyestablishesmechanismsto ensure that palmoil inMewah’s supply chainwill be freefromlinkstodeforestation,orexploitationofhumanrightsofworkers.
MewahOils,Selangor
MewaholeoIndustries,Johor
MewahDatu,Sabah
NgoChewHong,Selangor
15
JOURNEY TOWARDSSUSTAINABILITY
CORE AREA 1: SUSTAINABLE PALM OIL POLICY
The Mewah’s Sustainable Palm Oil policycommitments:
1. To build a traceable and transparentsupplychain.
2. To continue the journey of no deforestation andtocommitnoburning,protectionofhighconservationvalue (HCV)areasandhighcarbonstock(HCS)areas.
3. To reject new oil palm development inforested peatland plantation after May2015.
4. To ensure protection of the rights of workers, indigenous peoples and localcommunities.
16
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
CORE AREA 2: TOWARDS FULL TRACEABILITY
Transparency in the supply chain is a criticalaspectofsustainabilityasitallowsustotracetheoriginofourrawmaterial.
For every ton of palm oil and palm kerneloil received into our factory, we trace tothe exact location of the palm oil mills andtheparticulars of FFB suppliers to thepalmoil mills that supplying to us. Traceability
data isnecessaryas itallowsus toevaluateour suppliers’ performance against ourSustainable Palm Oil Policy. At the sametime, we are establishing engagement withoursupplierswiththeobjectivesto improvethe sustainability standards in our supplychain. This is done through traceabilitydata collection, suppliers’ assessment andeducationalworkshops.
2.2.1 OVERVIEW OF MEWAH’S CPO/CPKO SUPPLY CHAIN
FFB CPO/CPKO DELIVERY REFINED PO/PKO
END CONSUMER
Plantations Ingredient Manufacturers
Road TankerThird Party
Mills
Kernels
Kernel Crushing
Plants
Smallholders Product Manufacturers
Refineries
Shipment
Dealers RetailsPort Tank
Installation
17
JOURNEY INSUSTAINABILITY
2.2.2 MEWAH’S TRACEABILITY TO MILL (TTM) APPROACH Inordertoregisterandcontinuouslymonitorallsuppliers,weseektoensurethatwecollectthefollowinginformation.
“TraceabletoMill”CPOmustfulfilallfive(5)keycriteria.Ifanyofthisinformationisincomplete;the volume received from the particularsupplierwillbetreatedas“untraceable”.
The traceability score of our refineries iscomputedinproportionsofthetotalvolume
The key criteria in our TTM approach are: I. ParentCompanyNameofMillPartyII. MillNameIII. MillAddressIV. GPSCoordinatesofMillPartyV. VolumesofCPOreceivedintoourrefinery
TRACEABILITYTO MILL
Parent Company Name
Volume Received into Refinery
Mill Location (With actual GPS
Coordinate)
Mill Name
MillAddress
received by the refinery. A refinery canreceiveCPOsuppliesfromindividualpalmoilmills, third-partyrefinery, tradersorbulkinginstallation. We can be more precisely intracking the physical flows of our oil bytracking traceability through a volumetricapproach.
18
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
TRACEABILITY TO PLANTATION:
The key criteria in our TTP approach are: I. Volume of FFB suppliedII. Availability of MPOB licenseIII. Validity of MPOB license
19
JOURNEY INSUSTAINABILITY
2.2.3 MEWAH TRACEABILITY TO PLANTATION (TTP) APPROACH It is vital to take note that the definition oftraceable to plantation, or fresh fruit bunch(FFB)traceability,isthesubjectofconsiderabledebate because there is no common consensus in the industry at present.
Mewah’s current approach on traceabilityto plantations establish on ensuring theavailability and validity of Malaysia Palm
2.2.4 COMMITMENT TOWARDS 100% TRACEABILITY We set out the CPO/CPKO traceabilitymilestone alongside our Sustainable PalmOilPolicy inAugust2014.Themilestonessetmarkspecificpointsalongourjourneytofullysustainablesupplychain.Thesepointssignal
Oil Board (MPOB) operating license fromFFB suppliers. The rationale behind ourrequirement is to make sure that all FFBsupplied to the palm oil mills are sourcedlegally.
The key criteria in our TTP approach are:
I. VolumeofFFBsuppliedII. AvailabilityofMPOBlicenseIII. ValidityofMPOBlicense
Traceability to Plantation
Volume FFB Supplied
Availability of MPOB License
Validity of MPOB License
Estate/Plantation
Smallholders
Dealers
anchors in every period of our traceabilitytargets thatwestrive tocommit toourpalmoilBuyers.
At Mewah, we have set ambitious target toachieve100%traceabletoplantationforCPOandCPKOthatwesourcebyendof2018.
2016
100%AllourCPOistraceabletomill.
100%AllCPOistraceabletoplantation.
100%Sourcing RSPO orequivalentstand(e.g.,
MSPO of CPO.Company
GoalSustainable
business that createequal
valueinplanet,peopleandprofits.
50%50% of our CPO istraceabletoplantation.
Traceabletoplantation
start.
2017
2018
2020
COMMITMENT TOWARDS 100% TRACEABILITY
20
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
2.2.5 YEAR 2017 CPO & CPKO TRACEABILITY SCORE The launch of our Traceability to Mill(TTM) exercise in 2014 and Traceability toPlantation (TTP)exercise in2016enablingustoreachouttoagreaternumberofsuppliersincludingmillers,estates’owners,dealersandsmallholders. The traceability data collectedfrom TTM and TTP exercise allowed us tomapall thepalmoilmills thatsupplyCPOtoour four refineries and the estates, dealersandsmallholdersthatsupplyFFBtothemills.ThroughtheTTMexercise,wehaveidentified229 palm oil millers and 36 palm kernelcrushersinoursupplychain.
Inyear2017,weachievedmajorbreakthroughin TTP where we had successfully attainedour pre-setmilestones – 53.56% of the CPOand 54.84% of CPKO supplied to Mewah’srefineriesaretraceabletoplantation.
229CPO Suppliers
70Audited Mills
36CPKO Suppliers
18RSPO Certified Kernel
Crushing Plants
65RSPO Certified Mills
19ISCC Certified Mills
49MSPO Certified Mills
YEAR 2017 MEWAH GROUP SUPPLY CHAIN STATISTICS
Group Traceability Statistic (%)
CPO
CPKO
Traceability toMill
94.71%
TraceabilitytoMill
100%
TraceabilitytoKernelCrushingPlant
100%
Traceability toPlantation
53.56%
Traceability toPlantation
54.84%
21
JOURNEY INSUSTAINABILITY
CORE AREA 3: SUPPLIER ENGAGEMENT
2.3.1 SUPPLY CHAIN ASSESSMENT TO HIGH-RISK MILLSWeactivelyengageoursupplierbase.Wecarryout field assessment by auditing the millsthat supply toour refineries.Westarted thisprocess by first conducting field assessmentat mills located in high risk areas based ongeospatialanalysis.
The primary purposes of carrying out millassessment:
1) To understand the context in the FFBsupplybaseinpalmoilmill.
2) Toworkwith suppliers to create sharedvaluethroughsupplychaintomakesurethere is nomajor issuewith the supplychain.
The supplier audits focus on two majorareas: Mill operation and Field assessment.Three basic assessment techniques used are: interview, spot observation and documentation review.
The major audit areas during our assessment topalmoilmillare: A. Chemical stores – Storage, herbicide
mixing areas, personal protectiveequipment(PPE),ventilationandsecurity.
B. Fieldinspections–Herbicideapplication,harvesting sites, fertilizing operations,first aiders and boxes, and fieldobservation of all operations arefollowingtheSOP.
C. Workshop – Safe working environment,environmentalwastemanagement.
D. Worker interviews – Safety and Health,religious, wages/pay and contracts,forcedandchildlabour,firstaid.
E. Line sites – Wastewater qualitymonitoring & improvement plan, alignwithBODrequirementBOD<100p.p.m.,inspection of water discharge points.
F. Social impact audits – throughcontributions made, employmentopportunities and grievance procedure.
2.3.2 MEWAH’S SUSTAINABILITY DASHBOARDIn June 2016, we enhanced our supplychain transparency by launching an onlinedashboardinourcorporatewebsitewhereallrelevantstakeholderscanaccessdetailsofoursupplychain.
The full listofourCPO&CPKOmill sources,policyimplementation,CPO/CPKOtraceabilityscores and grievance procedure can be viewed on our dashboard.
22
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
SUPPLIER ENGAGEMENT PROGRAM
Suppliers are keys in the journey to improve sustainability standard.
23
JOURNEY INSUSTAINABILITY
2.3.3 MEWAH’S SUPPLIER ENGAGEMENT PROGRAMTheMewah’sSustainablePalmOilPolicyhasresulted in a greater engagement with oursuppliers.
Weaimtoraisethefloorofthepalmoilindustryby sharing the experience, expertise, andknowledgebyprovidingtrainingandtechnicalassistance to ensure that our suppliers havethe right skills andmotivation to deliver ourgoals.
We see three crucial benefits from SupplierEngagement Program:
i. Multi-stakeholders approach - Theopportunity to socializeour SustainablePalmOilPolicywithourdirectsuppliers.
ii. Aplatformtodiscusstheimplicationsandrequirementofadoptingsimilarpolicies.
iii. A platform to create awareness ofthe market demands for the need to delink our palm oil supply chain fromdeforestation, oil palm development ofpeatlandandhumanrightsabuses.
Supplier engagement is beyond traceabilityexercise. The main objectives of supplierengagement are to create awareness to our upstream suppliers, to increase interactionbetween our suppliers & buyers, to spreadresponsible palm oil practices and to buildup supplier capacity to adapt sustainabilitypractices.
In Year 2017, we hosted two major SupplierEngagement Workshops in our refineries,Mewah-Oils Sdn. Bhd. and MewaholeoIndustries Sdn. Bhd. The workshops were well-attended with over 80 palm oil millersand more than 100 participants turning up for the event.
24
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
We were delighted to have the opportunity to collaborate with our esteem
buyer in hosting Supplier Engagement Workshop at our refineries.
These workshops bring together leading local palm oil millers,
representatives from Malaysia Palm Oil Board (MPOB) and Malaysia Palm
Oil Refiners Association (PORAM) and the industry Sustainability Specialist
to a roundtable platform for Sustainability discussion, with the aim to
positively influence the millers on adopting right approach to improve
corporate social responsibility practices. This is no ordinary discussion; it
is a dynamic dialogue platform between all stakeholders – to show that
the possibility of embracing sustainable milling practices is there.
It is an awesomely great experience to see the diverse stakeholder groups
as a whole to share knowledge, skills and expertise. We believe this is
certainly a priceless achievement for us and our stakeholders who always
seek to building sustainability in its supply chain.
DANNY CHUAMewahGroupSustainabilityTeamLead
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JOURNEY INSUSTAINABILITY
CORE AREA 4: GRIEVANCE PROCEDURE
The palm oil supply chain can be long andcomplex. Although we have set up actionplantocarryoutsupplychainassessmenttoensurethatoursuppliersarefullycommittoourSustainablePalmOilPolicy;werecognizethatpolicybreachesmaygounnoticedgiventhelargescaleofouroperationespeciallyforthird-partysuppliersthatdonotfeeddirectlyintooursupplychain.
In June 2016, we established the GrievanceProcedure for the implementation of ourSustainable Palm Oil Policy with the aim to
provide a transparent, open and inclusivechannelof communicationwithstakeholdersto raise a grievance relating to theimplementation of our Sustainable Palm OilPolicy.Thisprocedureservesasaplatformforallstakeholdersinoursupplychaintoaddressconcernsorcomplaints.
Our methodology included an extensivereview of the grievance raised to brainstorm on all potential resolution and to decidewhether an on-site field assessment isnecessary.
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
AtMewah,wearefirmbelieverinsustainability.We understand that it is very important to havealong-termapproachinordertosustainabalancedeconomicviabilityinourbusiness.As a result, we have carefully defined 5 keyelements that incorporated into our MewahSustainability Concept with aim to achievesustainablegrowthinourbusiness.
OVERVIEW: FOCUS AREA 2 RESPONSIBLE SUPPLY CHAIN
The 5 key elements in Mewah SustainabilityConcept are:
I. Sustainable Palm Oil Policy: Ourcommitment.Actionplan
II. TraceabilityMilestonesIII. Quality Certification: e.g., ISO, HACCP,
Codex IV. Sustainability Certification e.g., RSPO,
ISCC,MSPOV. GrievanceProcedure: In-placegrievance
platformforallstakeholders
SUSTAINABLE PALM OIL POLICYCommitment, Action Plan Supplier Engagement
QUALITY CERTIFICATION SEDEX, ISO, HACCP
Codex, GMP.
SUSTAINABILITYCERTIFICATION RSPO Supply Chain
Certification (or equivalent) & ISCC
Certification
TRACEABILITY MILESTONESCPO & CPKO Traceability
GRIEVANCE PROCEDUREIn-place Grievance Platform for all stakeholders
MEWAHSUSTAINABILITY
CONCEPT
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JOURNEY INSUSTAINABILITY
Product Quality & Safety is always our top priority for our consumers.
FOCUS AREA 3: PRODUCTQUALITY
AND SAFETY
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
CORE AREA 1: OUR COMMITMENT TO BUYERS
ProductQualityandSafetyforourconsumersarealwaysourtoppriority.
We are committed to ensuring our product qualityandfoodsafetythrough:
1. Building trust by offering productsand services that match consumer expectation and preference.
2. Complyingwithall internalandexternalfood safety, regulatory and qualityrequirements
3. Gainingazero-defect,no-wasteattitudeby everyone in our company
4. Making quality assurance a group-wideobjective.
Our processing sites are complying withall essential quality and sustainabilitycertification requirements. We undertake tofocus on continuous improvement of these management systems by ensuring:
• Continualimprovementoftheoperation& processes
• Competent workforce that foster innovationinworkplace
• Stringentrawmaterialsourcing• Clean,hygienic&excellentprocessing• Efficienttransportationanddelivery• Prompt and responsive customer service• Compliance to applicable laws and
regulations• Safe working climate with minimum
impact on environment
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JOURNEY INSUSTAINABILITY
CORE AREA 2: CERTIFICATION AT OUR MANUFACTURING SITES
Certification marks the evidence that aproduct conforms to applicable standards,and that there is a program of ongoing factory inspections.
As a responsible food producer, we makesure all our factories are certified to one ormore internationally recognized food safety
standardssuchasFSSC22000,ISO22000andGMP+.
In addition, ourmain refineries are certifiedwith RSPO Supply Chain Certification, ISCCCertification and amember of Sedex havingpassedtheethicalauditSMETA.
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
CertificationstatusofMewah’smanufacturingsites:
Mewah Group Factories Location Factory Certification Status
NgoChewHongOils&Fats Sdn Bhd Semenyih,Selangor.
RSPO SCC
ISO22000:2005,ISO9001:2015
HACCPCodex,GMP
Halal,Kosher
MewaholeoIndustriesSdn Bhd PasirGudang,Johor.
RSPO SCC
ISCCCertifiedRefineryandTraderwithstorage
SEDEX Smeta
FSSC22000,ISO14001:2004,ISO9001:2008
HACCPCodex,GMP.
Halal,Kosher
Mewah-OilsSdnBhd WestPortKlang,Selangor.
RSPO SCC
SEDEX Smeta
ISCCCertifiedRefineryandTraderwithstorage
FSSC22000,ISO9001:2008
HACCPCodex,GMP.
Halal,Kosher
Mewah Datu Sdn Bhd LahadDatu,Sabah.
ISCCCertifiedRefineryandTraderwithstorage
RSPO SCC
ISO 9001: 2008
HACCPCodex,GMP
Halal,Kosher
MOIFoodsMalaysiaSdnBhd
WestPortKlang,Selangor.
RSPO SCC
FSSC22000(equivalenttoISO22000)
HACCPCodex,HACCPMOH,GMP.
NgoChewHongEdibleOilPteLtd Singapore
RSPO SCC
HACCP(SS590:2013)
Mewah Dairies Sdn Bhd WestPortKlang,Selangor.
HACCP Codex
VHM(VeterinaryHealthMark)
BremfieldSdnBhd WestPortKlang,Selangor.
RSPO SCC
ISCCCertifiedBiodieselPlant
ISO9001:2008,INSCertifiedBiofuels
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JOURNEY INSUSTAINABILITY
ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO)RSPO, founded in year 2004, is a multi-stakeholder organization that unitesstakeholders from 7 sectors of the palm oilindustry (oil palm producers, processors ortraders, consumer goods manufacturers,retailers, bank/investors, environmental andsocial non-governmental organisations) todevelop and implement global standardsfor sustainable palm oil. RSPO has been amajor driving force behind the developmentof better management practices and a more precisefocusonsustainability.
Mewah has been an active member of RSPO sinceyear2008.AllourrefineriesarecertifiedunderRSPOSupplyChainCertificationScheme(SCCS).OurpalmproductsaredeliveredunderSegregation (SG) and Mass Balance (MB)supplychainmodels.
HAZARD ANALYSIS AND CRITICAL CONTROL POINTS (HACCP)AtMewah, we seek to ensure our product quality and foodsafety standards. All our manufacturing sites are complyingwith HACCP certification standard. The HACCP certificationstandardaddresseschemical,physicalandbiologicalhazardsas a preventative measure from raw material production,procurementandhandling,tomanufacturing,distributionandfinishedproduct.SevenbasicprinciplesareintroducedinHACCPplans in order to prevent hazards, includinghazard analysis,Critical Control Point (CCP) identification, establishing criticallimits,monitoringprocedures, corrective actions, verificationprocedures,andrecord-keepinganddocumentation.
ISO 9001:2008ISO9001isaninternationallyrecognizedQualityManagementSystem (QMS) to assure our customers that our qualitymanagementsystemsareconstantlyassessedandapprovedby the accredited certification body. By implementing aneffectiveISO9001asasoundfoundationinourbusiness,weareconstantlystrivingtoimprovetheefficiencyandproductivityinour manufacturing processes.
FSSC 22000All our refineries are FSSC22000 certified. FSSC22000 is anISO-basedfoodsafetymanagementsystemthatisrecognizedbyGlobalFoodSafetyInitiative(GFSI).Itprovidesaframeworkfor effectively managing our food safety responsibilities. AllourrefineriesareFSSC22000certifiedthatdemonstratesthatall ourmanufacturing sites are having a robust Food SafetyManagementSysteminplacethatmeetstherequirementsofour customers.
INTERNATIONAL SUSTAINABILITY & CARBON CERTIFICATION (ISCC) The International Sustainability & CarbonCertification (ISCC) is an internationalcertificationsystemcoveringall kindsofbio-basedfeedstocksandrenewables tocater tovariousmarketssuchasthebio-energy,food,feed, and chemicals sectors. It incorporatessustainability criteria such as reduction ofgreenhouse gas emissions, sustainable useof land,protectionofnaturalbiospheresandsocialsustainability.
Our main refineries and biodiesel plantare ISCC-certified with compliance to therequirementsofEuropeanUnion’sRenewableEnergyDirective(RED).
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
FOCUS AREA 4: VALUING OUR PEOPLE
People are the most important resources to grow our business.
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JOURNEY TOWARDSSUSTAINABILITY
Mewah recognizes that people are ourmostimportant resources to grow our business,driven by our approach to attract, developandretainthebestpeopleandtoassureouremployees have solid career developmentopportunities.
In recognising the effectiveness of ourapproach,wedividethisfocusareainto4sub-sections:LabourPolicy&CodeofEthics,SedexSmeta Compliance, Training & Development,andHealth&Safety.
TRAINING & DEVELOPMENTImproveemployees’competencies and maximizetheirpotentialforcareerdevelopment.
LABOUR POLICY & CODE OF ETHICSProvideguidelinesto
ouremployeestohelpthem conduct their
actions in accordance with the company
primaryvaluesandethicalstandards.
SEDEX SMETA COMPLIANCE
Eliminateforcedandchildlabour,and
humantrafficking.
HEALTH & SAFETYImproveHealthandSafetyofemployeesand contractors
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
CORE AREA 1: LABOUR POLICY & CODE OF ETHICS
At Mewah, we believe in fair and equitableemployment. We have developed a LabourPolicy and Code of Ethics by which ouremployment policies and practices arecomplying to. These policies are applicableto all our employees, foreign workers andcontractors.
B. CODE OF ETHICS
We have in placed Code of Ethics to helpour employees to act in accordance withthe company primary values and ethicalstandards:
i. Complywithlaws,rulesandregulations.ii. To maintain confidential, proprietary
information iii. Tohavenoconflictofinterestiv. Fairdealingv. No insider trading vi. Cannotacceptgifts,bribesandkickbacks
indealingswithstakeholders.
The Code of Conduct is codified in ouremployeehandbook.
WHISTLE BLOWING POLICYMewah Group is committed to achieving highest standard of corporate compliancesand ethical standards in its dealings. Weencourageouremployeestoplaytheirpartinimprovingoveralleffectivenessandsuccessofthe organization. By creating an atmosphereof openness and trust, we encourage theemployees to use internal mechanism forreporting of any malpractice, illegal acts oromissions by any of our employees or ex-employees.
We have also set-up a whistle-blowingcommittee that is led by the SeniorManagementteam.Allmattersreportedwillbe reviewedand if required, investigatedbythecommittee.Meanwhile,the investigationand the identity of whistle-blower will bekeptunderthetermsofstrictconfidentiality.We will not tolerate any harassment orvictimizationofthewhistle-blower.
A. LABOUR POLICY
Free Choice of Employment
• Noforced,bondedlabour• Donotallowslaveryortraffickingof
persons.
Non-Discrimination in Employment
• Equalopportunityregardlessofrace,colour,age,sexualorientation,ethnicity,disability,pregnancy,religion,politicalaffliction,unionmembershipormaritalstatus.
Non-exploitation of Child Labour
Freedom of Association
• Recognizerightsofemployeestoconductcollectivebargainingprocesspursuanttolocallabourpractices.
• Recognizeopencommunication.
Compliance of Local Laws and Regulations
Humane Treatment
• Donotolerateanyformorthreatandinhumanetreatmentincludingsexualharassment,sexualabuse,corporalpunishment,physicalormentalcoercionorverbalabuse
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JOURNEY INSUSTAINABILITY
CORE AREA 3: TRAINING & DEVELOPMENT
CORE AREA 2: SEDEX SMETA COMPLIANCE
Sedex (Supplier Ethical Data Exchange) is anot-for-profit, membership organization thatworks with buyers and suppliers to deliverimprovements in responsible and ethicalbusinesspracticesinglobalsupplychains.
It is an audit methodology, uses the EthicalTradingInitiative(ETI)BaseCodeandthelocallawas itsmonitoringstandards.The4PillarsSMETA are:
i. LabourStandards,ii. Health&Safety,iii. EnvironmentalSustainabilityiv. Business Ethics.
Sedexcertification isaglobalbenchmark forhuman right. Our main refineries are longcertifiedbySedexasallourmajorBuyersareentrustedinthiscertification.
ATTRACT • Branding
• Recruiting
• Selecting
• Onboarding
ENGAGE • Communication
• Direct Engagement
• Team Engagement
• Recognition
DEVELOP • Performance
Management
• Competencies
• Leadership Development
RETAIN • Career
progression
• Succession planning
• Talentreviews
REWARD • Intrinsic
Reward System
• Totalreward
• Pay for performance
• Grading
• Salarystructure
Training & Development
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
Human talent is one of the most importantresources that the company has.We believethatourpeopleareourmostpowerfulcatalystfor growth. By developing and investing inour employees, we are creating importantpropellers and foundations for our futuregrowth. The company will only succeed byhaving employees who are willing to investtheir time and energy into the growth of the company.
Mewahiscommittedtogrowwithourpeopleandmake the company a vibrantworkplace.We provide our employee with a workenvironment that supports professional andpersonaldevelopment,offeravarietyofcareeropportunities and create high-performanceandcollaborativeteam.
4.3.1 RECRUITMENTOur recruitment focus not just base on job skills but on positive personal attributes.Personal attributes describe how we dosomething,suchasmanageour jobsandthebehaviourswe use such as decisionmaking,information gathering and wider thinking.
4.3.2 RECOGNIZING AND REWARDING PERFORMANCEWe recognize every employee is vital to thegrowth and progress of the company. Our recognition and reward framework aim to retainandmotivatethetalentneededtogrowand sustain our business.
We constantly seek to establish clearcommunication between managers and employees aboutwhat they are expected toaccomplish. The performance-based systemis a continuous process where managers and employees set goals through annualtasks & objectives (T&O) exercise. The T&Oset is thentranslated intodepartmentalT&Oand individual employee T&O so that everyemployeeknowingthattheyarerespectedasindividualsatworkandeveryonecanfeeltheimpact of their work.
4.3.3 TRAINING AND EDUCATIONLearning and career development is the keydrivers of engagement with our people. Wewant to develop our people to their utmostpotential and provide them with a fulfillingcareer.
Wesupportouremployees inachievingtheirworkandcareergoalsby identifying trainingneeds and development opportunities.Training and education are provided for improving performance to ensure that our employees work plans support the strategicdirection of the company. The Managers are responsible to identify areas of poorperformanceandestablishplansforimprovingperformance.
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JOURNEY INSUSTAINABILITY
CORE AREA 4: HEALTH & SAFETY
Mewah’semployeesare the company’smostimportantresources.Ensuringthehealthandsafetyofouremployees isourresponsibility.We strive to take care of our employee’ssafety,physicalandmentalhealth,toremainanattractiveworkplaceforouremployeeandtomake sure that everybody is healthy andsafe.
Workplace safety is everybody’s concern.Every life is valued and precious. Any work-related injury or loss of life is obviouslyunacceptable. To this, we are committed toengageouremployeesforaconduciveworkingenvironment by adopting the followingpractices:
A. Every production site must have a system inplacetomeasurethesafetyrecord.
B. Communication with all employees –
Every production site hosts a least onehealth, safety and environment (HSE)campaign every year.
Weensurethateveryincidentcaseisfollowedup in collaboration with the Departmentof Safety, Health & Environment throughidentification of unsafe act and unsafecondition to reduce risk of recurrence. We recognize the significant increase inour LostTime Injury Rate from year 2016 – 2017 (per200,000workinghours).Thiswaslargelyduetorecruitment of a new set of contractors in one of our manufacturing sites. Therefore training was greatly increased to bring about greatersafety awareness in the factory concerned. We are also continuously working with ourSHEManagers to improvesystemanalysis toprevent these incidents from happening as wellasincreasedfieldauditstoensurethatallcontractors follow thesafety ruleswhichareinplace.
Mewah Group Year 2016-2017 Lost time Injury Rate
2016 2017
0.0
0.5
1.0
1.5
2.0
2.52.4
1.0
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
4.4.1 HEALTH, SAFETY & ENVIRONMENT (HSE) CAMPAIGN IN ALL PRODUCTION SITESTo keep abreast of the health & safetyawareness in our employees, we holdregular safety trainings in all productionsites. Inaddition,everysitewillholdaweek-long HSE Campaign Program annually. Theprimary objective of this campaign is to create organized efforts and procedures foridentifying workplace hazards that aims toreduce accidents and exposure to adverse situations.
Italsoprovidestrainingofpersonnelinaccidentprevention, accident response, emergencypreparedness,anduseofprotective clothingand equipment.
FireDrillatourManufacturingSite
FirstAidDrillatourManufacturingSite
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JOURNEY INSUSTAINABILITY
4.4.2 HEALTHIER LIFESTYLE BEGINS FROM WORKPLACE We are committed to make certain our people stay safe and health as it is directlylinked to their productivity and satisfactionto work with us. Health and wellbeing arepromoted through formal programmes in allmanufacturingsitestoouremployees.
Company health programs:
• Stress Management Program• HealthScreening• HealthTalkonHealthyDiet&etc.
Company sport activities:
• Footballtournament• Badminton tournament• Fishing Competition• WeeklyFitnessClass&etc.
We offer a suite of health initiatives to helpour peoplemaintain a healthy lifestyle suchas health awareness programs and sportactivities. Annual health screening event,healthtalksandcompanysportactivitiesarealso part of our efforts in increasing healthawarenessandpromotinghealthierlifestyle.
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
FOCUS AREA 5: COMMUNITY SUPPORT
Alone we can do so little, together we can do so much.
HELEN KELLER
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JOURNEY TOWARDSSUSTAINABILITY
AtMewah,webelieve inbeingagoodcitizenand proactively engage with the communitywhich we operate in. Contributing to, andbeingpartof,thecommunityinwhichMewahoperatesisessentialformaintainingapositiverelationship with our neighbours. We findregular engagement is very effective forkeeping pulse on what is happening on theground and what concerns and priorities our stakeholdershave.
At every place that we operate, Mewahpartnerswiththelocalcommunitiestosupportthe particular needs of the community. Wecontribute regularly to local charities. Ourpeople organise and participate in socialevents to support and bring joy to the lessfortunateinournearbycommunity.Ourgoalistoenrichthelivesofthepeoplearoundthetouchpointsthatwehaveestablished.
RecognitionawardsaregiventoappreciatealleffortsandtimecontributedbyourdedicatedCSRcommittees,volunteersandemployees.
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
Our community objectives are:
A. ActiveVolunteerismofourEmployeeB. Supporting the Next GenerationC. DisasterRelief
YEAR 2017 – SUMMARY OF MEWAH’S CSR ACHIEVEMENT
Supporting the Next Generation
Disaster Relief – Supporting our Neighbours
Active Volunteerism of Our Employee
Support
>350SpecialChildren&Orphanages
Collaborationswith
9Non-ProfitOrganisations¹
Support
>5,200UnderprivilagedFamilies
LocalCommunity&IndigenousPeopleEngagement
4 Villages²&1,276 Beneficiaries
ChildrenEducationfor
450beneficiaries
Aid
>2,000Flood&FireVictims
BloodDonationfrom
>320Donors
Remarks:1 Non-ProfitOrganisationsincludeXiLeErSpecialChildrenCareCenter,CareHavenChildrenHome,KecharaSoupKitchen(KSK),
CerbralPalsyAssociation,SherunOldFolksHome&Handicap,YayasanPasirGudang,WillingHeart@SoupKitchen(Singpaore),MelroseHomeChildrenAidSociety(Singapore),andChildrenCharitiesAssociation(CCA)(Singapore).
2 LocalCommunitiesEngagementsincludeKampungRinchingHulu(Selangor),KampungPasirPutih,KampungTelokKabong,andKampungKualaMasai( Johor).
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JOURNEY INSUSTAINABILITY
CORE AREA 1: ACTIVE VOLUNTEERISM OF OUR EMPLOYEE – TO CREATE POSITIVE IMPACT IN OUR COMMUNITIES
Webelievethateveryonecancontributeandmakeadifferencetothecommunityandlivesofothers.Weencourageourstafftovolunteerand give back to the community.We believethat active employee volunteerism not onlyhelps the community but contributes to theholisticdevelopmentofouremployeeintermsof compassion, perspective and characterbuilding. Therefore we hold companywidecommunity volunteer events so that themajority of our staff can find it easier tovolunteertogivebacktocommunity.
CSR PROGRAM: CULTIVATION OF READING CULTURE AMONG THE CHILDREN IN JOHOR BAHRU INDIGENOUS PEOPLE KINDERGARTENSWe seek to empower local communitiesand create positive impacts through active volunteerismofouremployee.Ourapproachis to ensure thatwe bring directmeaningfuland long-lasting benefits to our neighboursand local communities that live near to ourfactories.
SinceYear2016,wehavecontinuallycontributedto development in villages of indigenouspeopleinKampungPasirPutih,KampungTelokKabong,andKampungKualaMasai,Johor.Withtheaimtopromotereadingcultureandincreaseawareness of education importance among thechildren inthevillage,wesetupa“Study Corner” for each of the village. Furthermore,throughouractiveengagementwiththe localcommunities, we comprehend their needsand concern of lack of educational materialsand facilities. To support and improve theirquality of education,we donated educationalmaterials,suchasstationary,DVDplayersandstory books.
We cannot all do great things, but we
can do small things with great love.
MOTHER TERESA
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
Thank you very much for the teaching aid and tools donated and
housekeeping activities conducted.
With the used of teaching tools and aid, the children can have better learning
process. They can use the tools for colouring, drawing and writing and even
reading the donated storybook.
Moreover, the classroom is more organized and in order as a results of the
house-keeping activities.
In additional, children are more excited to attend class with the aid of
educational learning DVDs and DVD player. They learn to sing, to recognize
the letter and number through the educational DVDs.
Your assistance and kind attention towards the children is highly appreciated.
ROZAIDA BINTI ABD.RADZIZGuruTabikaKemas(JAKOA),TelukKabung
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JOURNEY INSUSTAINABILITY
CSR PROGRAM: ANNUAL BLOOD DONATION DRIVE AT OUR FACTORIES (IN COLLABORATION WITH MEDICAL TRANSFUSION UNIT HOSPITAL SULTAN ISMAIL, JOHOR AND HOSPITAL TENGKU AMPUAN RAHIMAH, KLANG)Since year 2012, we launched a series ofawareness campaign with an objective to encourageouremployeesforvoluntaryblooddonation. Our approach includes apprisingouremployeesabouttheimportanceofblood
donation and encourages them to join the cause.
Annualblooddonationcampaignwasbroughtinto our manufacturing site with one common objective in mind and in the true spirit of caring,sharingandgiving.
Inyear2017,morethan320ofouremployeeshavemade successfulblooddonation in theannualblooddonationcampaign.
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
CORE AREA 2: SUPPORTING OUR NEXT GENERATION
Webelievethateverychilddeservesachanceata lifefilledwith love, laughter, friendsandfamily. Every year, a number of fund raisingactivitieswillbeheldinternallyandexternallytodistributefunds,groceriesandstationeriesto the children charitable organization. Oureffortsarenotonlydirectedatalleviatingthedisablement of the less fortune children butalsoatgivingthechildahopeforthefuture.
CSR PROGRAM: DONATION TOWARDS CARE HAVEN ORPHANAGE HOME, JOHOR.Care Haven Children Home is a charitableorganization that provides care, assistsupbringing aswell as full-lodging for the less
fortunate children and teenagers. Currently,CareHavenChildrenHomeprovidesassistancefor30childrenandteenagers,including10girlsand20boysthatrangefrom2to23yearsold.
Inordertomeetthecenterbasicdailyneeds,education fee and transport fee, our CSRcommitteemembersandvolunteerstooktheirkind action and contributed to Care Haven quarterlysinceYear2013.Throughthedonationand interaction with the children, we firmlybelievethatthechildrencanbefinanciallyandmentally supported with care and love fromouremployees.
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JOURNEY INSUSTAINABILITY
We are pleased with the provision and caring that Mewah provided.
We really appreciate for your regular support. Your good deeds have
taught our children onto study of kindness attitudes and sharing. By
helping, you not only give prosperity but also hope and joy to children.
Once again, I wish to express my gratitude because of your support on
our charity night every year. Your presence and subscription in Care
Haven Charity Night helps to build up our kids’ dreaming home. Thank
you so much for being with us every three months, your visit to our
children home brings positive changes in our children’s lives. May God
give you the best things that you deserve.
ROZAIDA BINTI ABD.RADZIZGuruTabikaKemas(JAKOA),TelukKabung
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
CORE AREA 3: DISASTER RELIEF
We wish to support the communities that operate in. One of the most important initiatives is to help our neighbours in theirtimeofneed.Whentherearenaturaldisastersin our neighbourhood, we raise money anddonate other necessities to support victims of naturaldisasters.
MEWAH’S CSR COMMITTEE PRESENTED THE DONATIONS TO KELAB RUKUN TETANGGA TAMAN WARISAN.On 1stJuly2017,amassiveblazehappenedatKampung Hidayat, Tawau. It was estimated
about 200 houses destroyed leaving about1000 people homeless. On 4th August 2017,our CSR committees and staff providedsupport and helped the poor victims tocontinuetheirlivingthroughdonationofsomebasic necessities such as clothes, basic foodsuppliessuchasrice,cookingoil,flour,sugar,drinking water and canned food. We strive not only to support the victim; but also to instilgoodness and generosity in our employees.Helpingpeopleinneedespeciallyvictimsfromunpredictable disaster is what define us ashuman.
CSR PROGRAM: DONATION FOR FIRE VICTIMS IN TAWAU, SABAH
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JOURNEY INSUSTAINABILITY
GLOBAL REPORTING INITIATIVES (GRI) INDEX
GENERAL STANDARD DISCLOSURES
KEY ELEMENTS Page Section/ Reason for omission
Organizational Profile
G4-3 Nameoforganization 03 About Mewah Group
G4-4 Primarybrands,productsandservices 04-05 CorporateProfile
G4-5 Headquarterslocation 03 About Mewah Group
G4-6 Countries of operation 04-05 CorporateProfile
G4-7 Natureofownershipandlegalform 03 About Mewah Group
G4-8 Markets served 04-05 CorporateProfile
G4-9 Scaleoftheorganization 04-05 CorporateProfile
G4-10 Organization'sworkforce 03 About Mewah Group
G4-11 Totalemployeescoveredbycollectivebargainingagreements
03 About Mewah Group
G4-12 Organization'ssupplychain 15-27 ResponsibleSupplyChain
G4-13 Sufficientchangesduringthereportingperiodregardingsize,structure,ownershiporitssupplychain
04-05,08-09,10-11,12-13,21,38,43
CorporateProfile,EnergyEfficiency/CarbonFootprint,WaterManagement/WaterFootprint,WasteManagement/WasteFootprint,Year2017CPO&CPKOTraceabilityScore,Health&Safety,Year2017-SummaryofMewah’sCSR Achievement
G4-14 Explanationofwhetherandhowtheprecautionaryapproachorprinciplesisaddressedbytheorganization
06 OverviewofMewahSustainabilityGuide
G4-15 Externallydevelopedeconomic,environmentalandsocialcharters,principlesorotherinitiatives
06 OverviewofMewahSustainabilityGuide
G4-16 Membershipsofassociationsandnational/internationaladvocacyorganizations
30-32 CertificationatOurManufacturing Sites
Identified Material Aspects and Boundaries
G4-17 Entitiesincludedintheorganization'sconsolidatedfinancialstatementsorequivalentdocuments
1, 55
Reporting Scope and BoundariesAbout This Report
G4-18 ProcessfordefiningreportcontentandtheAspectBoundaries
1, 55
Reporting Scope and BoundariesAbout This Report
G4-19 MaterialAspectsidentifiedintheprocessfordefiningreportcontent
55 About This Report
50
MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
G4-20 AspectBoundarywithintheorganization 55 About This Report
G4-21 AspectBoundaryoutsidetheorganization 55 About This Report
G4-22 Restatements of information provided in previous reports
Not Applicable
ThisistheFirstSustainabilityReport
G4-23 SignificantchangesfrompreviousreportingintheScope and Aspect Boundaries
Not Applicable
ThisistheFirstSustainabilityReport
Stakeholder Engagement
G4-24 Listofstakeholdergroupsengagedbytheorganization
1,15-27,
2941-49
ReportingScopeandBoundaries,ResponsibleSupplyChain,OurCommitmenttoBuyers,Community Support.
G4-25 Basisforidentificationandselectionofstakeholderswithwhomtoengage
1,15-27,
2941-49
ReportingScopeandBoundaries,ResponsibleSupplyChain,OurCommitmenttoBuyers,Community Support.
G4-26 Approachtostakeholderengagement,includingfrequency of engagement by type and by stakeholdergroup
1,15-27,
2941-49
ReportingScopeandBoundaries,ResponsibleSupplyChain,OurCommitmenttoBuyers,Community Support.
G4-27 Keytopicsandconcernsthathavebeenraisedthroughstakeholderengagement,andhowtheorganizationhasrespondedtothosekeytopicsandconcerns,includingthroughitreporting
1,15-27,
2941-49
ReportingScopeandBoundaries,ResponsibleSupplyChain,OurCommitmenttoBuyers,Community Support.
Report Profile
G4-28 Reporting period 55 About This Report
G4-29 Date of most recent previous report Not Applicable
ThisistheFirstSustainabilityReport
G4-30 Reportingcycle 55 About This Report
G4-31 Contact point 55 & Back Cover
Contact and Feedback
G4-32 GRI content index 50-53 GRI Index
G4-33 Externalassurance 55 About this Report
Governance
G4-34 Organization’sgovernancestructure AnnualReport
2017:29-42
Corporate Governance
Ethics and Integrity
G4-56 Organization'svalues,principles,standardsandnorms of behaviours
34-36 LabourPolicy&CodeofEthics
SPECIFIC STANDARD DISCLOSURES
Category: Economic
Aspect: Economic
Genericdisclosureonmanagementapproach AnnualReport 2017
Directeconomicvaluegeneratedanddistributed AnnualReport 2017
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Category: Environmental
Aspect: Energy
Genericdisclosureonmanagementapproach 08 MinimizingOurEnvironmentalFootprint
Energyconsumptionwithintheorganization 09 EnergyEfficiency/CarbonFootprint
Aspect: Emissions
Genericdisclosureonmanagementapproach 09 EnergyEfficiency/CarbonFootprint
Directgreenhousegas("GHG")emissions(Scope1) 09 EnergyEfficiency/CarbonFootprint
Aspect: Effluents and Waste
Genericdisclosureonmanagementapproach 12-13 WasteManagement/WasteFootprint
Totalwaterdischargebyqualityanddestination 12-13 WasteManagement/WasteFootprint
Aspect: Water
Genericdisclosureonmanagementapproach 10-11 WaterManagement/WaterFootprint
Totalwaterwithdrawalbysource 10-11 WaterManagement/WaterFootprint
Aspect: Compliance
Genericdisclosureonmanagementapproach 08-14 MinimizingOurEnvironmentalFootprint
Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornon-compliancewithenvironmentallawsandregulations
Nofinesfornon-
complianceinrelationtolocallaws
Category: Social
Sub-category: Labour Practices
Aspect: Occupational Safety and Health
Genericdisclosureonmanagementapproach 38-40 Health&Safety
Typeofinjuryandratesofinjury,occupationaldiseases,lostdays,andabsenteeism,andtotalnumberofwork-relatedfatalities,byregionandbygender
38-40 Health&Safety
Aspect: Training and Development
Genericdisclosureonmanagementapproach 36 Training&Development
Programsforskillsmanagementandlifelonglearningthatsupportthecontinuedemployabilityofemployeesandassisttheminmanagingcareerendings.
Nofinesfornon-
complianceinrelationtolocallaws
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
Aspect: Human Rights
Genericdisclosureonmanagementapproach 34-36 LabourPolicy&CodeofEthics
Sub-category: Human Rights
Aspect: Child labour
Operationsandsuppliersidentifiedashavingsignificantriskforincidentsofchildlabour,andmeasurestakentocontributetotheeffectiveabolitionofchildlabour
34-36 LabourPolicy&CodeofEthics
Aspect: Forced or compulsory labour
Operationsandsuppliersidentifiedashavingsignificantriskforincidentsofforcedorcompulsorylabour,andmeasurestocontributetotheeliminationofallformsofforcedorcompulsorylabour.
34-36 LabourPolicy&CodeofEthics
Sub-category: Society
Aspect: Anti-corruption
Communicationandtrainingonanti-corruptionpoliciesandprocedures
35 Code of Ethics
Aspect: Forced or compulsory labour
Operationsandsuppliersidentifiedashavingsignificantriskforincidentsofforcedorcompulsorylabour,andmeasurestocontributetotheeliminationofallformsofforcedorcompulsorylabour.
34-36 LabourPolicy&CodeofEthics
Sub-category: Product Responsibility
Aspect: Compliance
Genericdisclosureonmanagementapproach 28-32 ProductQuality&Safety
Monetaryvalueofsignificantfinesfornon-compliancewithlawsandregulationsconcerningthe provision and use of products and services.
Nofinesfornon-
complianceinrelationtolocallaws
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GLOSSARYBIOLOGICAL OXYGEN DEMAND (BOD)The amount of oxygen used when organic matter undergoes decomposition by micro-organisms in agiven water sample at certain temperature over aspecifictimeperiod.
CARBON DIOXIDE EQUIVALENTS Carbondioxideequivalents(CO2e)provideauniversalstandard of measurement against which the impacts of releasingdifferentgreenhousegasescanbeevaluated.
EFFLUENTS Water discharged from one source into a separate bodyofwater,suchastherefineryplantprocesswater. FRESH FRUIT BUNCH (FFB) Fruitbunchthatharvestedfromtheoilpalmtree.Theweight of the fruit bunch ranges between 10kg to 40kg dependsonthesizeandage.
GLOBAL REPORTING INITIATIVE (GRI) A multi-stakeholder standard for sustainabilityreporting, providing guidance on determining reportcontent and indicators.
GREENHOUSE GAS (GHG) GHGreferstogasesthathavetheabilitytotrapheatin the atmosphere and keep the planet warm. Theprimary greenhouse gases in our atmosphere are CarbonDioxide,Methane,WaterVapor,etc.
GREENHOUSE GAS EMISSIONS GHGEmissions isanall-encompassingmeasurementfor thecarbon footprintandenergyefficiency inourproduction.
HIGH CONSERVATION VALUES (HCV)TheconceptofHighConservationValueForests(HCVF)wasfirstdevelopedbytheForestStewardshipCouncil(FSC)in1999astheirninthprinciple.TheFSCdefinedHCVFasforestsofoutstandingandcriticalimportancedue to their environmental, socio-economic andculturalbiodiversityandlandscapevalue.
HIGH CARBON STOCK (HCS) Thehighcarbonstock(HCS)approachisamethodologyto avoid deforestation in land development. ThemethodologywasinitiallydevelopedinapartnershipbetweenGreenpeace,TFTandGoldenAgriResources.Theapproachstratifiesthevegetationonareaoflandintodifferentclassesusinganalysesofsatelliteimagesand field plot measurements. Each vegetation classis validated through calibrating it with carbon stockestimatesintheabove-groundtreebiomass.
INTERNATIONAL SUSTAINABILITY AND CARBON CERTIFICATION (ISCC) ISCC is a sustainability certification system coveringthe entire supply chain and all kinds of bio-basedfeedstocksandrenewables. It isofficiallyrecognizedby the European Commission under the European EnergyDirective(“RED”).
MASS BALANCE (MB) Themass balance systemallows formixing of RSPOcertifiedandnon-certifiedpalmoilatanystageinthesupplychainprovidedthatoverallcompanyquantitiesare controlled. Themass balancemodel is designedin such way that volumes of RSPO certified productshippedwillneverexceedvolumereceivedbytheend-user.
NON-GOVERNMENTAL ORGANIZATION (NGO) The term of NGO used in this report refer to grassrootsandcampaigningorganizationsfocusedonenvironmentalorsocialissues.
PEAT Peatisanaccumulationofpartiallydecayedvegetationmatter.Peatformsinwetlandsorpeatlands,variouslycalledbogs,moors,muskegs,pocosinandpeatswampforests.
ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) RSPO is amulti-stakeholder organization that unitesstakeholders from7 sectorsof thepalmoil industryincluding the oil palm producers, processors ortraders, consumer goods manufacturers, retailers,bank,environmentalNGOandsocialNGOtodevelopandimplementglobalstandardsforsustainablepalmoil.
SEGREGATION (SG) The Segregation supply chain model assures thatsustainable palm oil from different certified sourcesiskeptseparatefromordinary/conventionalpalmoilthroughoutsupplychain.
STAKEHOLDERS Stakeholders in this report refer to any group orindividual who are affected by or can affect thecompany’s operations.
SUSTAINABILITY Atermexpressingalong-termbalancebetweensocial,economicandenvironmentalobjectives.
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MEWAH INTERNATIONAL INC. SUSTAINABILITY REPORT 2017
ABOUT THIS REPORT
SCOPE OF THE REPORTThis isthefirstMewahGroup’sSustainabilityReport, using the Global Reporting Initiative(GRI) G4 guidelines. It focuses on Mewah’ssustainability strategies and practices,highlightingtheeconomic,environmental,andsocialaspectsoftheCompany’sactivitiesanddevelopments.
The report covers all sustainability issuesdeemedmaterialbyMewah.Wehavechosento focus our reporting on our downstream operations as this is our core business in Malaysia. It provides an overview of ourapproach,priorities and targets, aswell as abaseline performance review in several keyareas.ThisReportsupplementour2018annualreport that can be found on http://www.mewahgroup.com/upload/AnnualReports/
The reportbrings togetherour sustainabilityinitiatives, including current and futuredirection.Itisintendedtobeusefultoallourstakeholders – our customers, employees,shareholders, communities as well as beinga communication tool to various interestedpartiesaboutourapproachtothesocialandenvironmentaldevelopment.
COMPLETENESS We have attempted to provide a completeoverview of our operations within the established scope.However, since this is ourfirst report, data availability and consistencyacrosssitesmaynotbefullyalignedandmaybe subjected to corrections and restatements in subsequent reports.
Data in this report covers 1 Jan – 31 Dec 2017. Where possible, we have sought to includehistoricaldataasabenchmark.Webelievethatthe data presented are a fair representation of performance,andhaveincludeddetailednotesinrelevantsectionstoensuretransparency.
ASSURANCE As this is our first report, we have decidedto consider external assurance for a laterreportingperiodandnotforthisreport.Wewillconduct a review of our processes and identify gapsintheproductionofthefirstreport.Wewillalsousethisreporttoengagestakeholdersand understand what form of assurance they wouldliketoseeinoursubsequentreports.
CONTACT AND FEEDBACK
We welcome any feedback or questions:
Mewah Group Sustainability TeamMewah Building, 5, International Business Park, Singapore 609914 Tel: +65 – 68295107 Email: [email protected]
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MEWAH INTERNATIONAL INC.5InternationalBusinessPark,
#05-00MewahBuildingSingapore 609914