Chemical Company of Malaysia Berhad Annual Report 2019

Energy Reduction through Electrolyser and Membrane Efficiency For some years now, we have been reaping the benefits of energy reduction through electrolyser and membrane efficiency at the PGW 1 plant. One such project involved upgrading the electrolyser from an NCS electrolyser to an NCH electrolyser. By using the NCH electrolyser, it has led to significant reduction in power consumption and hence carbon emissions. The project, which began in 2014 and was fully completed in 2016, focused on the augmentation of electrolyser technology by optimising membrane performance. Tapping Excess Hydrogen via the Dual-Fuel Boiler Project Hydrogen gas is one of the gasses produced in the chlor-alkali manufacturing process. Apart from using it to produce hydrochloric acid, there is usually excess hydrogen in the manufacturing process that is released into the atmosphere. PGW has embarked on a dual-fuel boiler project by utilising excess hydrogen as an alternative fuel source for boiler operations instead of using natural gas alone. In tapping this approach, the natural gas consumption for the boiler fuel source has been reduced by 26% in 2019. By consuming the excess hydrogen from our plants as fuel instead of just emitting it into the atmosphere, we have successfully helped reduced energy costs and the Group’s carbon footprint. OUR COMMITMENT TO SUSTAINABLE SOCIAL PRACTICES Here at CCM, our policies and targets are shared across the entire Group. This not only enables us to establish and run safe and stable operations, it also ensures that we embed safe, environmentally friendly and healthy elements throughout the lifecycle of our products. We also leverage on our policies and targets to maintain high standards and continuously improve on the quality of products and services that we deliver. For more details of our social performance, please refer to CCM’s Sustainability Report 2019. ENSURING CUSTOMER HEALTH AND SAFETY At our Chemicals Division, 100% of our products are assessed for their health and safety impact under the Chemical Health Risk Assessment (CHRA) criteria; 57% under the Restriction of Hazardous Substance (RoHS) compliance guide; 14% under the Global Product Strategy (GPS) and approximately 28.6% of our products are assessed for compliance with the Control of Industrial Major Hazard (CIMAH) regulations. CCM Chemicals also offers stakeholders a host of communication channels including its customer complaint system. Its toll-free number is exhibited on road tankers, cargo lorries, hazardous chemical (HAZCHEM) signs and product labels as well as its Safety Data Sheet and the Company website. The company’s office contact number is made available on the Safety Data Sheet, lorry HAZCHEM signs and product labels as well as during the Community Awareness Programme held for the community and neighbouring facilities. SAFEGUARDING COMMUNITIES Being a strong advocate of greater safety within the chemical industry, we are committed to ensuring a safer environment for our employees, customers and the communities that we operate in. Our subsidiary, CCM Chemicals Sdn Bhd, has trained professional Chemical Emergency Service (CES) teams that provide advice on safety measures and the remedial actions to be taken when a chemical emergency occurs. At the same time, the CES teams are proactively collaborating with parties such as the Fire and Rescue Department Malaysia and the Pasir Gudang Emergency Mutual Aid (PAGEMA) team to respond to emergency situations as and when required. 39 ANNUAL REPORT 2019 BUSINESS OVERVIEW GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION