Sustainability - Tomypak

Dear Stakeholders,

We believe sustainability is essential to driving our business forward and is deeply ingrained in our company culture.

I am pleased to present the Group’s Sustainability Report for FY2024. This report reflects our ongoing comittment to sustainability and provides an overview of our progress in integrating sustainable practices into our business operations and organisation culture.

Over the past year, we have enhanced our environmental performance. Our efforts to reduce waste, conserve energy, and minimise our carbon footprint are documented in this report. The retrofit of our Tampoi plant with energy-efficient machinery and the installation of solar-ready infrastructure are examples of our commitment to environmental stewardship. While we are pleased with our progress, we recognize that sustainability is an ongoing journey. We remain dedicated to continuous improvement and innovation in sustainable practices.

In November 2023, the Group, through Tomypak Flexible Sdn Bhd, acquired a 70% stake in EB Packaging Sdn Bhd. This acquisition is expected to bring about significant synergies, enhancing both our production capabilities and market reach. However, as this acquisition was recent, full-year sustainability-related data for EB Packaging is not available. We are preparing for full disclosure of EB Packaging’s sustainability performance in the Sustainability Report for FY2025.

As part of our strategic focus on flexible packaging, we are in the process of divesting our 51% subsidiary, SP Plastics Sdn Bhd, which is undergoing a members’ voluntary winding-up. This move aligns with our commitment to streamline operations and strengthen our core competencies in flexible packaging solutions. As a result, this report excludes the sustainability performance of SP Plastics. We believe this strategic realignment will allow us to better achieve our sustainability goals and deliver long-term value.

Our people remain our greatest asset, and we are committed to creating a safe, inclusive, and supportive work environment for all our employees. This year, we expanded our training programmes, enhanced our health and safety protocols, and increased our efforts to promote diversity and inclusion within our workforce. Additionally, our community engagement initiatives have strengthened our relationships with local communities, reinforcing our dedication to social responsibility.

Strong governance and ethical practices are the foundations of our sustainability strategy. Our Board of Directors and Sustainability Committee play crucial roles in overseeing our sustainability efforts and ensuring adherence to the highest standards of corporate governance. We have also reinforced our policies on anti-bribery and anti-corruption, and human rights to ensure that our business operations are conducted with integrity and transparency.

We are also pleased to announce that we achieved an FTSE4Good ESG Score of 2.9 this year, meeting one of the criteria for inclusion in the FTSE4Good Bursa Malaysia Index Series. In addition, we are honoured to have received the Silver Award at The Edge ESG Awards 2024 for Most Improved ESG Performance Over Three Years (Below RM 300M Market Capitalisation which recognises our ongoing dedication to ESG practices. Our future goals include obtaining Forest Stewardship Council (FSC), International Sustainability & Carbon Certification (ISCC PLUS), ISO 14001 and ISO 45001 certifications, increasing our use of renewable energy, and further reducing our environmental impact.

Our journey towards sustainability is a collective effort. I want to take this opportunity to express my heartfelt gratitude to our employees, partners, stakeholders, and the community for their unwavering support and dedication. Together, we will continue to drive meaningful progress in sustainability for Tomypak.

Thank you for your continued trust and support.

GOVERNANCE STRUCTURE

Sustainability governance is embedded within our corporate framework to ensure sustainability is integrated throughout the organisation. The Board holds ultimate responsibility for the Group’s strategic direction on sustainability, with support from the Board Committees through delegated authority.

The Board delegates sustainability management to the Sustainability Committee, chaired by the MD of TFP and supported by an Advisor from the Board of Directors. The committee is responsible for managing sustainability/ESG matters, formulating strategies, and implementing Board-approved initiatives. The MD of TFP has been designated to provide dedicated to provide dedicated focus to manage sustainability strategically, including the integration of sustainability considerations in the operations of the Company.

ROLES AND RESPONSIBILITIES

Role	Key Responsibilities
Board of Directors	Strategic Oversight Approve overarching sustainability strategies. Ensure compliance with legal and regulatory requirements. Make high-level decisions related to ESG (Environmental, Social, Governance) issues and delegates responsibilities to Sustainability Committee. Ultimate accountability for the company’s sustainability performance. Compliance and Risk Management Stay informed on sustainability, including management of climate-related risks and opportunities, via regular capacity-building programmes. Oversee company’s impact on climate change and opportunities. Review reports and updates from the Sustainability Committee.
Sustainability Committee	Implementation of Sustainability Initiatives Collaborate with internal departments and external partners on sustainability efforts Develop and propose sustainability strategies to the Board. Execute approved sustainability initiatives and projects, including climate change-related risk responses. Gather and analyse sustainability data. Monitor and report on key sustainability metrics. Monitoring and Reporting Assess and monitor company’s impact on climate change. Ensure alignment with relevant frameworks, standards and guidelines.
Advisor	Alignment and Integrity Ensure alignment with Business Plan. Provide expert counsel on sustainability matters and reporting. Prevent greenwashing.

BOARD OVERSIGHT

The Board is committed to providing strategic direction and rigorous governance for the company. As part of its oversight role, the Board regularly reviews performance metrics, operational efficiencies, financial integrity, and the company’s impact on climate change to ensure that the company is aligned with its goals and adheres to relevant legal, health and safety, and human rights standards.