Sustainability Statement

Sustainability Is At Our Core

The establishment and preservation of good sustainability practices is central to our ambitions and aspirations at Scientex. Our vision ‘To Grow the Scientex Community for a Better Tomorrow’ encapsulates our embrace of sustainability as a catalyst to develop a company of the future and for the future.

It is significant that our commitment to sustainability is intrinsically tied to our purpose and success as an organisation. We adopt a cohesive approach to sustainability prefaced on the balancing of the varied needs of our key stakeholders. Our packaging division delivers superior protection, convenience, preservation, hygiene and safety to consumers while our property division provides affordable yet quality homes to Malaysian house buyers. These priorities drive long-term economic, environmental and social benefit, yet meet our growth imperative as a business.

This is particularly relevant within the context of product innovation as we address the increasing demand for recyclable products within the global packaging sector and eco-friendly construction in the property sector.

At the same time, our sustainability approach extends beyond the products we create and is further applied to the harmonising of our activities within the communities in which we operate, the welfare of our people and the many environmentally conscious competences we fulfill.

For FY2020, five key sustainability topics were selected. The five key sustainable topics have furthermore been cross-referenced against selected United Nations Sustainable Development Goals to which the Group is aligned, as detailed below:

A Regulated Yet Flexible Governance Structure

A three-tiered sustainability governance structure ensures that the consideration of economic, environmental and social topics is ingrained in our organisational processes.

The Board of Directors (“BOD”) delegates sustainability tasks to the Sustainability Steering Committee (“SSC”), which comprises members of the Executive Committee (“EXCO”) and is led by Managing Director/CEO Lim Peng Jin. The SSC develops suitable strategies for our various sustainability topics and agendas, which are in turn carried out by the Sustainability Working Group (“SWG”).

Depending on the sustainability topic in question, the SWG may comprise of representatives from both the packaging and property divisions as well as the corporate department. This flexible and dynamic structure enables the relevant divisions/department to have a suitable voice in the implementation of the strategy in question.

The SSC works collaboratively with the SWG, with monthly management meetings allowing for progress to be reviewed and new potential sustainability topics to be highlighted.

While the SSC bears responsibility for tabling potential sustainability topics for the BOD’s consideration and reporting on the results of the SWG, the BOD plays its own role in the oversight, audit and establishment of sustainability data management systems, reporting processes and controls, along with risk management for the purpose of sustainability reporting.

Key Sustainability Focus Area

Our sustainability mainframe outlines five key areas of focus that were identified with careful regard to their impact on our stakeholders and their potential effect on economic, environmental and social outcomes.

 1. Affordable Housing

Scientex’s emphasis on building affordable homes helps us form sustainable relationships with our shareholders, customers and regulatory bodies while providing constructive social and economic outcomes.

Our mission distinctly aligns with the government’s National Housing Policy that promotes affordable housing and offers various incentives that may support our sales and augmenting our fiscal leverage. We adopted the “cross boundary’” strategy, where we continue to acquire land banks across Malaysia in order to provide affordable housing to a wider cross-section of the Malaysian population.

With a focus on optimising speed, cost and quality, we are able to continually provide ownership of quality affordable homes to middle-to-lower-income Malaysians, which creates longer term socio-economic benefit to the

 2. Product Innovation

Our sustainability efforts within the realm of product innovation provide benefit to our customers while supporting government regulations. It also provides significant economic opportunities for Scientex and environmental value on a global scale.

With government mandates and consumer preferences shifting towards fully recyclable packaging, our ability to innovate products in this direction will boost our competitiveness in the fast-moving markets in which we operate, increase goodwill amongst customers and serve to reduce the environmental impact of non-recyclable materials.

We continue to work closely with our customers through collaboration and consultation in the development of highly relevant and demand-ready products that provide timely solutions to the community and enhance the mutual sustainability of our businesses.


 3. Waste Management

Responsible disposal of waste and compliance with environmental laws and regulations are critical components of effective environmental sustainability management. Our efforts in this area serve to enhance our reputation with regulatory bodies, customers and stakeholders.

Our sustainability efforts extend from the facility level where our plants are equipped with systems to reduce waste and our machineries possess in-built recycling capabilities to monthly management meetings to devise plans to monitor and minimise waste occurrence with regular trainings being regularly conducted to instil best practices on waste management. At the Group level, there is a conscious effort to make continuous investments in advanced machinery or technology designed to promote efficiency and reduce wastage is prioritised.

Many of Scientex’s manufacturing facilities have already been granted ISO 14001 certification, thus making them compliant with international standards for Environmental Management Systems.

 4. Occupational Safety & Health

Scientex recognises that quality workforce is at the heart of achieving success that is sustainable. Close compliance with regulations and continual enhancement of our Occupational Safety & Health Administration (“OSHA”) practices not only maximises the well-being of our employees but also helps us attract and retain the best talents.

All employees, contractors and consultants are required to follow a rigorous and detailed occupational safety and health policy at all worksites, while regular spot checks are carried out by joint management-worker OSHA committees.

Guided by our occupational safety and health management systems, we strive to achieve our objectives of reducing risk levels, eliminating or reducing the frequency of undesired incidents and accidents, and improving employee awareness of occupational safety and health practices.

 5. Local Communities

Our ability to positively impact upon the local communities in which we operate drives sustainability in our relationships with customers, shareholders and regulatory bodies, while bringing about long-term social benefits to local populations.

By taking an active role in community involvement, we are also better placed to create awareness of our affordable housing solutions, thereby providing a sustainable source of economic opportunities for our property division. And, as custodian of the land upon which we build and a manufacturer on a global scale, we further recognise our duty to educate the community on environmentally friendly practices and their importance.

To this end, Scientex spearheads a number of community driven projects that are educational, innovative and provide support to those in need.

These include initiatives such as the MPMA-DOW-SCIENTEX School Environmental Challenge 2019, which saw 219 teachers from 217 schools attending a special educational seminar on plastics, waste management and recycling while 11,900 students from 34 primary and secondary schools across Melaka took part in a collaborative recycling challenge with the hashtag #PullingOurWeight. We are proud that the event was acknowledged by the Ministry of Education as a positive case study example of the private sector’s involvement in education programmes.

During the recent COVID-19 pandemic, Scientex also played its role not only via the speedy adoption of internal safety practices but through various monetary and in-kind donations to hospitals and welfare funds, including RM300,000 being donated to University Malaya Medical Centre to support COVID-19 clinical trials and 100,000 head-covers provided to frontliners in partnership with Ministry of International Trade and Industry.

Our sustainability journey is one that will progress and evolve as we face a shifting landscape of challenges, opportunities and circumstances. What will never change is our commitment towards upholding the highest standards of sustainable practices to ensure a better and brighter tomorrow for all.

Click here to view and download the Scientex Integrated Annual Report 2020 and read the full version of our latest sustainability statement.