Wah Seong Corporation Berhad Annual Report 2021 24 Managing Climate Change Risks and Opportunities Wasco’s commitment to producing in a way that helps protect people, the environment and the communities where it operates includes mitigating the risks of climate change. We recognise the devastating effects and associated short- and long-term business risks that climate change presents. Wasco has a solid commitment to addressing this issue and avoiding the impact of climate change by improving the efficiency of operations. Our climate change strategy includes working with employees and supply chain partners on energy-saving processes and a complete climate change risk assessment. Our management team, overseen by Mr. Teoh Chuen Seng, Senior Manager ESG devises strategies to manage and minimise our environmental footprint. Progress reports and proposals on energy management, climate change and pollution reduction, supported by financial indicators and Return on Investment (ROI) calculations, are presented to the Board. In 2021, strategic topics included a deep dive on decarbonisation, emerging business models in the electricity transition, resource storage opportunities and emerging climate-related risks. Climate change risk is reviewed explicitly by the Sustainability Committees. Climate-related risks and opportunities are identified, assessed and managed using Wasco’s Risk Management Framework in the same way as all other risks. The Board and senior management consider, review and monitor climaterelated risks and opportunities as part of our strategic planning process, investment decisions, and regular financial and operational performance reviews throughout the year. Wasco has integrated climate-related risk management into the company-wide risk scorecard. It is part of the foundation in formulating our business strategy, deciding on future R&D as well as technology investments. Wasco’s climate risk management process includes mitigation efforts to reduce greenhouse emissions, climate engineering and increasing knowledge of climate systems. In 2021, we invested RM356,000 on: l Mitigating climate change, including planting 30,000 trees in Maran, Pahang; and l Consultancy in reviewing our GHG Baseline Inventory. Inevitably, climate change impacts operating expenses (OPEX) and capital expenditure (CAPEX), which increases product prices. Climate change reduces efficiencies and increases operating costs (OPEX). Capital expenditure (CAPEX) is needed to retrofit existing assets to cope with new climatic conditions. We are committed to addressing the issue of climate change and improving efficiency through adaptation by adopting new and green technology in developments and implementing fuel efficiency measures. Specifically, we have adopted a tracking system for emissions, energy use, water use and waste in our manufacturing. Wasco is an active member of the Malaysian Oil & Gas Services Council (MOGSC) and continues to address climaterelated issues, specifically how it affects the Energy sector. Our role and involvement in this membership include: l Identifying pressing environmental issues in climate change, water and waste; and l Collaborating on solutions that drive improvement within Wasco and its supply chains. We contribute to driving change management through knowledge and information sharing, especially public policy and regulation. The Council also examines various opportunities, such as hydrogen technology. We continue to ensure consistency between our climate change policy and the position we advocate at trade associations of which we are members. When opinions contradict, we respond by identifying gaps and initiating a process that alerts the Company to new areas of good business practice. Consolidation method in carbon footprint calculation Operational Organisational boundary in carbon footprint calculation Accounts for 100% of GHG emissions where Wasco has the authority to implement operational policies Independent verification of operational GHG data Our process in calculating and measuring GHG is guided and verified by the MGTC. SUSTAINABILITY STATEMENT
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