Sustainability Report

First page 1 Next page Last page

Animated publication

REPORT

SUSTAINABILITY

FY 2023/2024

ESG ENVIRONMENTAL • SOCIAL • GOVERNANCE

1,150 TCO 2 e GHG EMISSION REDUCTION

At Royal Selangor, we are dedicated to crafting a form of luxury that is both sustainable and desirable. Alongside our team, partners, and stakeholders, we are committed to driving positive change across our operations. We have embraced clear, measurable targets for our environmental and social responsibilities, ensuring that sustainability is at the heart of everything we do.

27.9% WASTE AND EFFLUENT REDUCTION

122 PEOPLE RECRUITED IN 2023

52% EMPLOYEES ARE WOMEN

2040 33.3% further reduction targets for GHG emissions. To reduce by 1,000 TCO2e

2030 33.3% reduction

2050 100% or net zero GHG emissions. To reduce by 1,000 TCO2e

targets for GHG emissions. To reduce by 1,000 TCO2e

KEY MILESTONES

2022 Anugerah Productivity Linked Wage System by HR Ministry, 2nd (SME category)

Anugerah Organisasi Kemakmuran Bersama; 3rd (Big organisation category)

Our journey toward sustainability has been one of steady progress, marked by key milestones that reflect our commitment to environmental responsibility and ethical business practices. We have always recycled and reused our waste, encouraging customers to return unwanted pewterware for recycling in exchange for credits. For years, we have worked with full-service recycling companies, ensuring that recycled pewter oxide, pewter dust, and waste from gold plating are responsibly processed. These initiatives have evolved into a larger goal— achieving net zero GHG emissions by 2050. Along the way, we have taken meaningful steps, including installing solar panels, implementing strong anti corruption and environmental safety policies, and adopting more efficient energy solutions. Each action reinforces our commitment to reducing our carbon footprint and conducting business responsibly.

2020 • Whistleblowing policy • Anti-corruption and Bribery policy • Safety and Health policy • Environmental policy

2021 Concerted effort to use biodegradable and recyclable packaging

2019 Solar panels installation.

Reduced 1,150 TCO2e annually

2017 Energy audit grant by MGTC

2018 PEFC C-o-C System from MTTC for wood purchases and processing

2016 – 2018 Replacing diesel with electricity for pewter casting. Reduced 2,500 TCO2e

2000 Wastewater treatment plant (Comyns)

2015 Efficient Energy policy

1998 Tube well water harvesting

2015 – 2018 Conversion to LED lightings Reduced 126 TCO2e annually

2002 Wastewater treatment plant

STATEMENT FROM THE MANAGING DIRECTOR, DATO’ YONG YOON LI D.P.M.S.

As we look back on 2023, I would like to take a moment to acknowledge the hard work and dedication of everyone at Royal Selangor. Our commitment to the principles of Environmental, Social, and Governance (ESG) is something we hold close to our hearts, and it’s the collective effort of our teams across all departments that has allowed us to make meaningful progress this year. Sustainability is not a trend for us; it has always been a core part of who we are. We do not subscribe to a culture of disposability. Every piece we create is designed to be cherished for generations. In the instance a customer no longer wishes to keep their pewterware, we encourage them to return it to us for recycling—ensuring that none of our products end up in landfills. This philosophy extends to our manufacturing processes as well. We recover and reuse materials from our factory floor, from swarfs and dust to offcuts, returning them to the cauldrons to be melted down and repurposed. Waste is not an afterthought; it is a resource, and through careful stewardship, we continue to minimise our environmental impact. As we look to the future, we know there is always more to learn and improve upon. We will continue to innovate and work closely with our stakeholders to keep moving forward on our sustainability journey. By integrating sustainable practices throughout our operations, we are making steady progress toward our long-term goals, including our target of achieving net-zero emissions by 2050. As we continue this journey, our focus remains on creating a positive impact. We are confident that our commitment to ESG will help us build a more sustainable and responsible future for Royal Selangor, our communities, and the world.

GOVERNANCE

At Royal Selangor, our Board of Directors is committed to guiding the company with a focus on long-term sustainability. Recognising the importance of integrating social and environmental considerations into our decision-making processes, the board’s role includes providing thoughtful oversight of our growth strategies, managing risks, and upholding the rights and responsibilities of our shareholders.

GOVERNANCE & ETHICS

Our Board of Directors and leadership team are committed to guiding the company with integrity and transparency. We have established clear codes of conduct and action principles to ensure that all employees and stakeholders adhere to responsible and ethical practices in every aspect of our business.

BOARD OF DIRECTORS

The Royal Selangor Board of Directors is responsible for shaping the company’s strategic direction, prioritising the enhancement of the company’s value and safeguarding its interests. The board’s core missions include setting key strategic objectives, ensuring their effective implementation, verifying the accuracy and transparency of company information, and protecting Royal Selangor’s corporate assets.

Tan Sri Yong Poh Kon, Chairman Dato’ Yong Yoon Li, Managing Director Chen Tien Yue, Executive Director Peter John Coleman, Director Wong Chin Yoon, Director Joseph Tan, Director

ETHICS & COMPLIANCE

ANTI-CORRUPTION AND ETHICAL CONDUCT

At Royal Selangor, integrity is at the core of our business. We strictly follow anti corruption policies and a code of ethics that ensures transparency and fairness in all our dealings. In line with Section 17A of the Malaysian Anti-Corruption Commission Act 2009 (Amendment 2018), which came into force on 1 June 2020, Royal Selangor implemented the Anti-Bribery Policy. This policy was distributed to all employees, and since its introduction, all new hires are required to read and acknowledge it as part of the onboarding programme.

Every decision and action reflect our deep commitment to ethics and social and environmental responsibility. Upholding the highest standards, we have established clear codes of conduct and guiding principles that shape the daily behaviour of our employees and all stakeholders. These rules ensure that our actions consistently align with our values and responsibilities.

We regularly update the policy to align with evolving standards and best practices, reinforcing our commitment to ethical business conduct.

DIVERSITY, INCLUSION, AND STAKEHOLDER ENGAGEMENT

RISK MANAGEMENT AND REGULATORY COMPLIANCE

We know that diverse perspectives lead to better decisions and a more inclusive culture. That’s why at Royal Selangor, we’re committed to building a leadership team that reflects the diversity of the world around us. We actively promote diversity in terms of gender, ethnicity, and age, not just because it’s the right thing to do, but because it makes us stronger as a company. Beyond our internal team, we engage meaningfully with all our stakeholders— whether they are employees, customers, suppliers, or community members. We listen to their feedback, learn from their experiences, and ensure that their voices are heard in our decision-making processes.

Managing risk effectively is crucial to our long-term success. At Royal Selangor, we’ve implemented comprehensive risk management processes to identify, assess, and mitigate potential risks, whether they are operational, financial, or ESG-related. We also ensure that we comply with all relevant local and international laws and regulations. Compliance isn’t just about ticking boxes for us; it’s about doing what’s right and ensuring that our business operations are above reproach. By staying vigilant and proactive, we protect our company’s future while adhering to the highest standards of legal and ethical conduct.

DATA PRIVACY AND WHISTLEBLOWING

TRANSPARENCY AND ACCOUNTABILITY

In today’s digital age, protecting data is more important than ever. Royal Selangor is committed to safeguarding the personal and business information of our customers, employees, and partners. We have robust data privacy and cybersecurity policies in place to prevent breaches and unauthorised access. Equally important is our whistleblowing policy, which provides a safe and confidential way for employees to report any unethical or illegal behaviour. We ensure that these reports are handled with the utmost discretion and that whistleblowers are protected from retaliation. These measures help us maintain a culture of transparency and integrity, where everyone can feel secure in speaking up.

Transparency and accountability are key to building trust, and we take these principles seriously. We ensure clear communication across all levels of our organisation, so everyone knows what we stand for and where we’re headed. Our governance structures are designed to be robust and transparent, ensuring that decisions are made responsibly and that we remain accountable to our stakeholders. We regularly report on our performance, both financially and in the future, our ESG goals, because we believe in being open about our successes and our challenges. It’s through this transparency that we build and maintain the trust of those we serve.

OUR SOCIAL COMMITMENT

We are committed to preserving our craftsmanship while fostering a supportive work environment where everyone can thrive. Our approach to human resources prioritises fair employment practices and aims to empower our staff by enhancing their skills and capabilities. We believe in supporting local communities and recognise that performance and social responsibility are intertwined, contributing to a sustainable and inclusive future for all.

OUR ESG COMMITMENTS

OUR COMMITMENT TO A SUSTAINABLE ENVIRONMENT

We are dedicated to prioritising sustainability as a vital component of our operations. Our efforts centre on implementing circular economy practices and fostering a stronger connection with nature. Through intentional steps, we aim to minimise our environmental impact, reduce our carbon footprint, and promote responsible stewardship throughout our operations, all while protecting the ecosystems that support us.

OUR COMMITMENT TO HERITAGE, ART & CULTURE

We are dedicated to preserving Malaysian heritage and celebrating creativity through unique, hand finished pieces. We actively support research and the growth of culture and art, fostering a deeper appreciation for the rich traditions of our region. We encourage our staff to explore and learn more about Southeast Asian arts, aiming to inspire imagination and curiosity across generations while sharing the beauty of artistry with the world.

GHG Emissions and Energy Management

We recognise our responsibility to reduce our carbon footprint. We have set clear goals for reducing greenhouse gas (GHG) emissions and are committed to energy efficiency in all our operations. By investing in renewable energy sources like solar power and optimising our energy use, we are not only cutting emissions but also setting the stage for a more sustainable future. Every small step we take in managing our energy consumption contributes to a larger goal: a cleaner, healthier planet for future generations. Royal Selangor began tracking GHG emissions in FY2023/2024, with comparative data from FY2022/2023 to establish a baseline. The table below outlines our GHG emissions for these periods, with detailed information on Scope 1 and Scope 2 emissions provided in the TCFD report.

OUR COMMITMENT TO A SUSTAINABLE ENVIRONMENT

We are dedicated to sustainability with an action plan focused on five key areas: reusing materials, protecting biodiversity, addressing climate challenges, managing water responsibly, and fostering transparency. These pillars are central to guide our efforts to minimise environmental impact and adopt responsible practices. Through initiatives such as reducing greenhouse gas emissions, improving energy use, cutting waste, and advancing digital solutions, we aim to contribute to a greener, more sustainable future.

The reduction in tin purchases stems from elevated prices, prompting a strategic pivot toward producing a higher volume of mixed-media products incorporating eco-composites, wood, glass, and other sustainable materials. Electricity consumption using solar energy and TNB power aligns with a 5.9% increase in production output, as reflected in the difference in total clocking hours, with 343,316.4 hours recorded for FY2023/2024 compared to 324,187.4 hours for FY2022/2023. The steady rise indicates consistent activity without spikes from specific events or activities. A 19% increase in diesel and petrol consumption was recorded in FY2023/2024 compared to FY2022/2023, based on data from three distribution vehicles. This rise reflects increased distribution demands driven by higher sales volumes.

2022/2023

2023/2024

Scope 1 (Diesel and petrol)

271.7 TCO 2 e

325.2 TCO 2 e

Scope 2 (Electricity)

1,849.9 TCO 2 e

2,010.7 TCO 2 e

Mitigation (Tree planting)

3.2 TCO 2 e

Total GHG emissions

2,118.4 TCO 2 e

2,332.7 TCO 2 e

Annual Effluent Generated and Effluent to Production Output

Energy management at Royal Selangor is overseen by the Net Zero Steering Committee, recognising that non-renewable energy is a finite resource that must be conserved responsibly. Our journey began in 2015 with the implementation of efficient energy management practices, followed by the adoption of renewable energy through the installation of solar panels. The table below details energy consumption from Tenaga Nasional Berhad (TNB), solar energy generation, and energy consumed relative to production output.

Energy consumption for FY2023/2024 reached 3,792,582 MWh, marking a 5.15% increase compared to FY2022/2023, which recorded 3,597,096 MWh. This increase corresponds closely to the 5.57% growth in production output, as reflected in the total man hours, rising from 324,187.4 hours in FY2022/2023 to 343,316.4 hours in FY2023/2024. Additionally, recent developments around the visitor centre have, at times, reduced sunlight access to solar panels, subtly affecting solar energy output. Future energy efficiency improvements will focus on adopting advanced technologies and expanding renewable energy solutions.

Waste & effluent management

FY2022/2023

FY2023/2024

1,782 m 3 (100%)

1,285 m 3 (72.1%)

Total volume of effluent generated

Water is a precious resource, and Royal Selangor diligently monitors its monthly usage by volume and cost. Our analysis of water consumption (m³) relative to production output in man-hours highlights key trends, as detailed in the table below. We observed a 36% increase in water consumption in FY2023/2024. This rise was primarily due to a faulty valve that caused an unexpected spike towards the end of the financial year.

We are taking proactive steps to prevent similar issues in the future. As part of our renewed commitment under our ESG initiative, we have implemented daily monitoring of water meters and introduced stringent checks to ensure stable and efficient water consumption. These measures will help us identify and address anomalies promptly, reinforcing our commitment to responsible resource management.

Energy Consumption and Energy to Production Output

Energy management

FY2022/2023

FY2023/2024

2,372 MWh 1,225 MWh 3,597 MWh

2,578 MWh 1,215 MWh 3,793 MWh

Energy from TNB

Annual Water Consumption Production Output

Energy from Solar

Total energy consumption

Water consumption management

FY2022/2023

FY2023/2024

Production output in man-hours

324,187.4 hours

343,316.4 hours

31,262 m 3 (100%)

42,557 m 3 (136%)

Total volume of water consumed

Water Management, Waste, and Effluent

Managing water and waste responsibly remains a top priority for us. We continuously strive to reduce waste generation and ensure that all effluents are treated to minimise environmental impact. Water, as a precious resource, is central to our conservation efforts, and we are committed to implementing efficient water management practices throughout our operations. Our analysis examines wastewater volume (m³) in relation to production output measured in man hours, as outlined in the table below.

We monitor the total volume of effluent generated monthly. Despite an increase in production output in FY2023/2024, effluent discharge decreased by 28%, reflecting improved efficiency. This reduction was largely due to fewer processes requiring water intensive washing.

Royal Selangor is committed to ethical and sustainable business practices, taking significant steps to ensure that our tin is sourced from suppliers and smelters who meet the highest ethical standards. We purchase only MSC-brand tin, produced by Malaysia Smelting Corporation Bhd. (MSC), a conformant smelter recognised by the Responsible Minerals Initiative (RMI). This approach reaffirms our dedication to responsible sourcing and ethical production.

SUSTAINABLE SOURCING AND CIRCULAR ECONOMY

Sourcing materials responsibly is fundamental to Royal Selangor. We partner with suppliers who share our commitment to sustainability, prioritising renewable, recyclable, and low-impact materials. This philosophy extends to our design and operations—we recycle all manufacturing waste and provide customers with the option to return unwanted pewterware for recycling. Beyond sourcing, we’re also embracing circular economy practices by designing products that can be reused, recycled, or repurposed. We believe that by extending the life cycle of our products and materials, we can significantly reduce waste and contribute to a more sustainable economy. The Dodd-Frank Act, enacted in July 2010, mandates the disclosure of the use of conflict minerals—such as tin, tantalum, tungsten, and gold—originating from the Democratic Republic of Congo (DRC) and adjoining countries. The purpose of this requirement is to ensure that the purchase of these minerals does not fund armed conflict or contribute to human rights abuses in the region.

2022/2023 2023/2024 71.5 66

Period

Quantity (metric Tonne)

The above comprises MSC Straits Refined Tin of SN99.85% and SN99.9%

While tin usage has decreased with the expansion of our mixed-media offerings—integrating materials like eco composites, wood, and glass alongside pewter—we have increased production volume. In FY23, we produced 196,252 products, rising to 230,692 pieces in FY24, reflecting our continued growth and innovation.

2022/2023 2023/2024 2,482 2,920

Period

Quantity (gram)

Gold plating solution (potassium gold cyanide) sourced from conflict-free zones:

In line with our ongoing commitment to sustainable sourcing, we procure potassium gold cyanide from suppliers who prioritise sustainable practices throughout their supply chains. We ensure that all waste generated from the use of potassium gold cyanide is disposed of in full compliance with waste management regulations.

In 2017, Royal Selangor implemented the Chain of Custody (C-o-C) System under the Programme for the Endorsement of Forest Certification (PEFC) for our wood sourcing and processing practices. The certification was officially issued by the Malaysian Timber Certification Council (MTCC) in 2018. Recognising the importance of sustainable timber harvesting, we ensure that woods such as Nyatoh, Merbau, Sepetir, and Kulim are sourced from certified Forest Units under the PEFC C-o-C system. Rubberwood, similarly, is procured from PEFC controlled sources. Currently, PEFC-certified wood materials make up 14.9% of our overall wood purchases. When including rubberwood, this ratio increases by an additional 8.5%. The lower percentage is primarily due to the challenges in sourcing PEFC-certified moulded timber, plywood, and MDF board, as our external suppliers often lack PEFC certification.

In 2021, Royal Selangor launched a focused effort to transition to biodegradable and recyclable packaging materials. We have achieved an 80% ratio of biodegradable or recyclable materials in our overall purchases, with the remaining 20% comprising grey foam and styrofoam, which are not eco-friendly. Currently, 58% of our active items are free from non biodegradable content, a remarkable jump from 0% in March 2022. By year-end, we aim to eliminate styrofoam and replace foam wrap with honeycomb paper wrap, increasing the eco-friendly ratio to 67%. This progress has been instrumental in guiding our next steps toward even greater sustainability.

Eco-Friendly Design and Biodiversity

Our commitment to sustainability extends to the very design of our products. At Royal Selangor, we’re mindful of the environmental impact of our products from conception to completion. We prioritise eco-friendly design by using sustainable materials and processes that minimise harm to the environment. Additionally, we’re passionate about preserving biodiversity and support conservation efforts that protect natural habitats and endangered species. Through our actions, we aim to leave a positive legacy for the environment, ensuring that our business practices support rather than harm the world’s ecosystems.

Detailed data on the ratios of certified wood and packaging materials is presented below.

Ratio of wood materials sourced from certified PEFC suppliers (RM) 2022/2023 2023/2024 8.6% 14.9%

Ratio of rubber wood sourced as PEFC controlled mate rial 2022/2023 2023/2024 9.5% 8.5% Ratio of biodegradable/ recyclable packaging materials sourced from certified suppliers (RM) 2023/2024 81% 80% 2022/2023

The Sculptura II and Earth collections spotlight Malaysia’s endangered wildlife, creating awareness about species on the brink of extinction. Through detailed sculptures of animals like the Malayan tiger, orangutan, and leatherback sea turtle, Sculptura II immortalises these creatures while highlighting their precarious existence. The Earth collection, in collaboration with artist Rachel Gray, blends artistic expression with functionality, featuring wildlife-inspired homeware that promotes the beauty and importance of conservation efforts, helping raise awareness of the need to protect these species for future generations.

Sourcing of sustainable materials

Digital Transformation Drive

Royal Selangor has initiated a digital transformation drive, led by the Business Information Department, aimed at simplifying workflows and reducing paper usage. This initiative began on 1 December 2022 and has resulted in several key projects, including the development of dashboards to streamline manual data collection for the Manufacturing, Warehouse, and Sales departments.

As a result, the reduction in man-hours has been significant, from 3,210 in FY2023/2024 compared to 498 in FY2022/2023, as detailed below.

Additionally, the initiative has reduced paper usage in the Manufacturing department in FY2023/2024, eliminating the need for 26,469 pieces of physical forms, equivalent to 95.5 kg of paper.

This marks a significant step in our commitment to minimising physical paper usage. We aim to further eliminate the need for physical copies wherever possible, continuing our efforts toward sustainability.

Royal Selangor’s eco-composite is an innovative, food-safe material crafted from a blend of wood and resin, repurposing sawdust from our woodworking facility. This process reflects our commitment to reducing waste and adopting more sustainable manufacturing practices. The eco-composite’s unique “wood marble” surface effect not only adds aesthetic value but also demonstrates our focus on environmentally responsible materials. With our woodworking facility generating 3,000 kilograms of wood waste annually, we’ve taken significant steps since late 2022 to convert this by-product into eco-composite. This material is produced by pulverising the wood waste, mixing it with resin, and pressing it into moulds. Initially used for photo frame backs, the eco composite is now featured in products like the Reunion travel caddies and blanks for coasters, showcasing its versatility and expanding our efforts in sustainable production.

Impact of the Digital Transformation Drive

Digital transformation drive

2022/2023

3,210 man-hours 2023/2024

Reduction in work content (hours)

498 man-hours

This initiative highlights our dedication to creating environmentally friendly solutions within our manufacturing processes, aligning with broader sustainability goals in waste reduction and material reuse.

2023/2024

Environmental Compliance and Impact

Reduction in paper usage (kg)

95.5kg

Compliance with environmental regulations is not just a requirement for us - it’s a commitment. We make sure that all our operations meet or exceed the environmental laws and standards in the regions where we operate. But we don’t stop at compliance. We’re continuously assessing our environmental impact and looking for ways to minimise it. Whether it’s reducing emissions, conserving water, or managing waste, we’re always striving to improve our environmental performance. It’s our way of ensuring that our business doesn’t just grow, but grows responsibly. We are in compliance with the five listed environmental legislation and regulations:

Environmental Legislation and Regulations

• Uniform Building by Laws 1984 • Occupational Safety and Health (amendment) Act 2022 • Environmental Quality Act 1974 • Fire Service Act 1988 • Poison Act 1952

As the ESG reporting only commenced in 2023, no comparative data is available for FY2022/2023.

INCLUSIVE CULTURE

Our focus on diversity and inclusion spans recruitment, career development, and mentoring programmes, with initiatives centred on gender equity, inclusion of diverse abilities, and fostering a supportive, diverse culture.

OUR SOCIAL COMMITMENT

FAIR LABOUR PRACTICES

At Royal Selangor, our long-term social responsibility strategy is rooted in a commitment to people. We emphasise four key pillars, focusing on improving individuality, creating a safer and healthier workplace, aspiring to achieve excellence in craftsmanship, and contributing positively to society. This approach reflects our dedication to growth and fostering a culture of care and responsibility.

Fair and ethical labour practices are a core part of our operations. We ensure fair wages, safe working conditions, reasonable hours, and uphold transparency in recruitment and HR policies, while fostering a safe and respecful workplace for all.

NURTURING TALENT

We continuously strive to attract, recruit, and nurture passionate, innovative individuals. Through comprehensive learning programmes that embody Royal Selangor’s values, we help our people unlock their full potential and achieve excellence in their craft.

Ethnicity

Occupational Safety And Health

INCLUSIVE CULTURE

FAIR LABOUR PRACTICES

We are dedicated to creating an inclusive environment where respect and collaboration empower our team to innovate and drive long-term success. From recruitment to career development, diversity and inclusion are central to our employee journey. We continually enhance hiring practices through training and evaluations, and we provide opportunities such as mentoring programmes and targeted initiatives to support professional growth. Our Diversity & Inclusion strategy is strengthened by various initiatives across the company, with a focus on gender equity, disability inclusion, and broader diversity topics. Regional employee networks also engage talent on key issues, fostering a culture of inclusion and sparking meaningful action within our markets.

At Royal Selangor, fair and ethical labour practices are fundamental to our operations, ensuring the rights and dignity of every team member. This includes providing fair wages, safe working conditions, reasonable hours, and eradicating child and forced labour. Our recruitment and Human Resources policies uphold transparency and integrity throughout the organisation. The Safety, Health, and Environment team is dedicated to ensuring a safe workplace, offering safety briefings and fire drill training for all new employees. Recent data reflects a significant rise in training sessions and a 46% reduction in work-related injuries between FY2022/2023 and FY2023/2024. The Human Resources department at Royal Selangor is committed to enhancing the skills and development of all employees through comprehensive training programmes. Our focus on continuous learning has led to a significant increase in training engagement. The average training hours per employee have seen a remarkable rise, growing by over 400%, from 0.32 hours in FY2022/2023 to 1.67 hours in FY2023/2024. This growth reflects our ongoing investment in employee development, ensuring that our workforce is well-equipped to contribute to the company’s success and adapt to the evolving demands of our industry. NURTURING TALENT

47%

2022/2023

2023/2024

Malay

46%

Safety induction briefings

324 employees

424 employees

22%

Chinese

24%

Fire drill training

300 employees

755 employees (twice)

26%

Indian

25%

No. of man days of work-related injuries

15 Mandays

8 Mandays

Others

2023/2024

2022/2023

Total Employees

Leadership Development Programme for Managers

Royal Selangor’s Leadership Development Programme for 20 managers, conducted with the Asian School of Business from September to December 2023, focused on leadership excellence, strategic thinking, and problem-solving. The programme strengthened leadership capabilities, fostering a culture of continuous improvement and contributing to the organisation’s long-term success and sustainability.

FY2022/2023 FY2023/2024 48% 48%

FY2022/2023 FY2023/2024 52% 52%

MALE

FEMALE

Leadership Development Programme for High-Potential Employees

Royal Selangor’s Leadership Development Programme for high-potential employees, launched in partnership with Taylor’s University in November 2023, focuses on preparing 24 selected individuals for future leadership roles. The Programme enhances their skills and knowledge, ensuring a strong leadership pipeline to meet the organisation’s future needs.

Total Employees

2022/2023

2023/2024

Average hours of training per annum per employee category

32%

30%

25%

24%

23%

Training Hours

21%

20%

Skill Development Programme

2022/2023

2023/2024

Royal Selangor’s Skill Development Programme, launched to upskill and reskill new hires and existing employees, ensures they meet required skill standards, boosts production output, and offers skill allowances above the national minimum wage to promote employee development and retention.

160 hours

702 hours

Average per employee Average per employee

0.32 hours

1.37 hours

below 30

31 – 40

41 – 50

Above 60

Our collections honour the depth of history, culture, and heritage through thoughtfully designed pieces. The Gembira collection features traditional batik patterns, while the British Museum collection highlights treasures such as the Lewis Chessmen. The Imperial collection, inspired by artefacts from the National Palace Museum, reflects the elegance of oriental art and heritage. The Divinity collection showcases the Ganesha figurine, and the Atiya collection draws on the intricate beauty of Islamic art. The Celestial Odyssey series brings to life characters from Journey to the West, and the Inspired collection interprets artefacts from the V&A Museum, blending timeless history with contemporary design.

OUR COMMITMENT TO HERITAGE, ART & CULTURE

The British Museum

The Inspired

Royal Selangor is committed to the preservation of Malaysian heritage, and fostering the growth of culture and art through research and meaningful initiatives. We are dedicated to expanding opportunities in the arts, encouraging our employees to deepen their understanding of Southeast Asian culture and traditions. Rooted in a rich history of craftsmanship, we bring together artists, thinkers, and innovators to preserve and celebrate our shared cultural legacy.

Divinity

Batik

Celestial Odyssey

Atiya

Imperial

Preserving Pewtersmithing Artistry and Heritage

We are dedicated to preserving the artistry and heritage of pewtersmithing. The Royal Selangor Visitor Centre serves as a gateway to the rich history of tin mining in Malaysia, showcasing our deep-rooted connection to this craft. Through our interactive workshops, the School of Hard Knocks and The Foundry, visitors can engage directly with the art of pewtersmithing, gaining hands-on experience in this centuries-old tradition. Live demonstrations by our skilled artisans further highlight the craftsmanship that continues to shape Royal Selangor, ensuring that this timeless art is passed down and celebrated for generations to come.

SUPPORTING COMMUNITIES

At Royal Selangor, we are committed to making a positive impact through various community-driven initiatives. Our efforts focus on empowering local communities, preserving cultural heritage, and promoting sustainability. Through meaningful collaborations and purposeful projects, we aim to uplift lives and contribute to a better future for all.

The School of Hard Knocks and The Foundry workshops at the Royal Selangor Visitor Centre create awareness of the art of pewtersmithing by offering hands-on experiences that allow participants to engage with this traditional craft.

The Pewter Museum and live pewtersmithing demonstrations at the Royal Selangor Visitor Centre provide visitors with an engaging experience, creating awareness of the rich history of pewter and showcasing the craftsmanship behind this traditional art form in real-time.

From 22-24 September 2023, eight Royal Selangor employees participated in the CAT Walk, a voluntary jungle trekking trip to Taman Negara. This programme, part of MYCAT, is an alliance of wildlife organisations aimed at supporting the National Tiger Conservation Action Plan for Malaysia.

Royal Selangor has partnered with the Malaysian Nature Society (MNS) in 2004 to raise awareness and support the conservation of the endangered Malayan Tiger, with proceeds from their Ark children’s gift collection contributing to MNS’s Habitat Conservation Programme.

On 15 August 2018, Royal Selangor hosted the Marvel Event: A Celebration of Earth’s Mightiest Heroes, unveiling new Marvel collectibles, including a life-size Iron Man and Limited Edition Thanos figurine. The event featured a live auction of Stan Lee signed collectibles, raising RM26,000 for Make-A-Wish Malaysia.

In 2011, Royal Selangor launched the Mia collection, featuring pewter pendants by five renowned Malaysian artists, each reflecting their unique interpretation of life. Proceeds supported Badan Warisan Malaysia, a leading non-governmental organisation dedicated to preserving Malaysia’s architectural and cultural heritage.

Royal Selangor collaborated with Malaysia’s Breast Cancer Welfare Association, by launching Pin, a collection inspired by shells, symbolic of protection and rebirth. Part of the proceeds from the sale of this limited edition benefitted the BCWA.

In 2022, Royal Selangor hosted an exclusive screening of Malaysia’s Last Tigers: The Battle to Save the Malayan Tiger, a documentary by RIMAU and Nuvista Media. The event highlighted the urgent need for tiger conservation, supporting efforts by the Tiger Protection Society of Malaysia and showcasing Royal Selangor’s long-standing commitment to wildlife preservation.

In 2011, Royal Selangor held a donation drive, accepting old pewter items to be melted for a new collection, The Alam Collection. One-third of sales supported the Malaysian Nature Society’s conservation efforts, with special rewards for donors, including a chance to win a trip to Belum Rainforest.

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

Royal Selangor is committed to transparency in addressing climate-related risks and opportunities. In line with Bursa Malaysia’s requirement for public listed companies to include TCFD reporting by December 31, 2025, we have chosen to begin our Task Force on Climate-related Financial Disclosures (TCFD) reporting from FY 2023-2024. This report provides consistent, voluntary disclosures that enhance investor understanding of how climate impacts our business, reinforcing our dedication to sustainability and responsible financial practices.

ENGAGING EMPLOYEES AND ADVOCATING FOR SUSTAINABILITY

Royal Selangor is in the early stages of our ESG journey, and we believe in the power of collective action to address global challenges like climate change. To work towards keeping global warming below 1.5°C and achieving net zero GHG emissions by 2050, we are implementing several initiatives to engage and educate our employees. These include conducting surveys to gauge awareness of ESG efforts, developing educational modules through briefings and seminars, and organising an ESG showcase to highlight our strategy and progress. We aim to foster an environmentally conscious mindset, focusing on areas like waste management, energy, water usage, and sustainable practices. We will showcase our ESG achievements and involve employees in key sustainability events like COPEBEST 24. Royal Selangor is also committed to collaborating with government bodies on climate challenges and opportunities.

Introduction

TCFD Governance

Royal Selangor has long recognised the importance of sustainable practices. Since 2000, we have implemented a wastewater treatment plant and, from 2015, introduced energy efficiency measures to reduce power consumption across our factories. By transitioning from diesel fuel for melting pewter, we have successfully reduced 2,500 TCO2e. In FY 2023 - 2024, we established an ESG committee to guide and oversee the implementation of our sustainability strategy. The Net Zero Steering Committee is tasked to reduce GHG emissions by 33% by 2030, another 33% by 2040, and achieve net zero emissions by 2050.

TCFD governance represents the framework that drives our approach to climate-related matters. It ensures that the processes and are in place to guide the company in addressing the challenges and opportunities posed by climate change. Our governance model defines the strategic direction, objectives, and responsibilities for climate-related risks and opportunities, ensuring that they are integrated into our overall business strategy. We are committed to aligning our climate goals with long term sustainability and corporate responsibility.

Oversight of Climate-Related Risks and Opportunities

Roles and responsibilities of the Royal Selangor’s ESG governance structure

Governance body

Roles & responsibilities

Reporting line

Reporting frequency

Royal Selangor has established a clear governance framework with defined roles, responsibilities, and reporting lines to ensure the effective implementation of our ESG strategy.

Quarterly

Board of Directors Tan Sri Yong Poh Kon, Chairman Dato’ Yong Yoon Li, Managing Director Chen Tien Yue, Executive Director Peter John Coleman, Director Joseph Tan, Director Wong Chin Yoon, Director

Oversees ESG activities Monitors progress of RSI climate commitment

The Board of Directors, Managing Director, ESG committee, Net Zero Steering Committee, Operational Risk Committee, and Heads of Department (HODs) all play crucial roles, as outlined in Figure 10.2.1.

Managing Director Dato’ Yong Yoon Li

Oversees ESG activities Monitors progress of RSI climate commitment Update to Board status of ESG strategy Acts as responsible body for ESG matters Develops, monitors & supports implementation of ESG strategy Endorses & monitors ESG climate commitment targets Prepares ESG report Updates to the MD on ESG matters Shares & reports ESG strategy with net zero steering committee & HODs Updates ESG committee & MD on net zero matters & budgetary requirements Oversees strategy & governance to reduce GHG emissions Tracks progress of RSI GHG emissions Prepares net zero report

BOD

Quarterly

Board of Directors

ESG Committee Keong Joo Dee Hilda Razali Dr Mohd Yusry Mustafa

Managing director

Quarterly

Managing Directors

ESG Committee

Net Zero Steering Committee Ong Chee Shen Zulfaqih Lazim Carson Tan Selvam Subramaniam Rozeta Dollah Operational Risk Committee HR, FAD, SHE, MFG Internal audit

ESG committee

Quarterly

Operational Risk Committee

HODs

Net Zero Committee

Updates ESG committee & MD on risk management system. Oversees strategy & governance to reduce effects of transition and physical risks.

ESG committee

Quarterly

Royal Selangor’s sustainability governance structure

Heads of Departments / Section (HODs)

Submit data for updating ESG strategy

ESG committee

Quarterly

Basis for Transition Analysis

A summary of the risks and opportunities across these transition scenarios can be found in the table below. be found in the table below.

TCFD STRATEGY

The TCFD Strategy defines our approach to managing climate-related risks and their potential impact on Royal Selangor’s business and financial performance. We recognise the importance of addressing environmental challenges and are committed to embedding sustainability into our core strategy. Our focus is on strengthening business resilience, creating value for our stakeholders, and playing our part in global sustainability efforts.

Transition risks and opportunities for Royal Selangor

Transition Risks

Our transition analysis is based on the global shift towards a low-carbon economy. We rely on the International Energy Agency (IEA). The IEA’s comprehensive analysis, policy recommendations, and data on the global energy sector are detailed in their publication, the World Energy Outlook (WEO). For our transition assessment, two scenarios were chosen: the Sustainable Development Scenario (SDS) and the Stated Policies Scenario (STEPS).

The SDS is the most favourable outcome to limit climate change by transforming energy markets and tackling air pollution. The global temperatures are projected to rise by 1°C.

The STEPS scenario is a more conservative approach, analysing existing and developing policies across sectors, including regulatory, market, infrastructure, and financial factors. It provides a realistic benchmark, with global temperature increases to remain below 2°C.

Climate Risks and Opportunities

Time Horizons for Climate-Related Risks and Opportunities

Scenario analysis is a key tool in assessing how different climate-related risks may impact an organisation’s operations and financial performance. By testing our current strategies against various climate scenarios, we can better understand potential future risks and opportunities, enabling us to develop effective contingency plans. The ESG committee conducted a scenario analysis for climate risks and opportunities in FY 2023-2024. It highlighted physical risks such as storms, flooding, heatwaves, and transportation disruptions that could directly affect our business. Opportunities may also arise in the development of energy-efficient products. We anticipate potential challenges from transition risks such as stricter regulations or taxes on GHG emissions, along with increased transportation and material costs. These transitions also present opportunities, including the availability of grants and low-cost loans for electric vehicle (EV) initiatives, which could offset these risks and support future growth.

Risk/ opportunity

Risk description

TCFD category

Time horizon to occur

Affected business

Potential impact on business

Response / action to manage

RCP4.5 scenario 2030-40 Medium term

RCP4.5 scenario 2040-50 Long term

RCP8.5 scenario 2030-40 Medium term

RCP8.5 scenario 2040-50 Long term

The time horizons for assessing climate-related risks and opportunities are divided into three key segments: short-term, medium-term, and long-term, as outlined in table below. Therefore, our analysis primarily focuses on the medium-term and long-term periods to better prepare for potential challenges and opportunities that may arise in the future.

Increased regulations & pricing on GHG emissions

Stricter regulations causing high cost of complying or new carbon tax

Political & legal risks

Medium

All

Greater costs associated with emissions reduction. Reduced investment on other areas

Establishment of net zero committee to to reduce GHG emissions

Moderate risk Moderate impact to company

High risk High impact to company

Increased in transport costs

Greater fuel costs for staff & product transportation

Market risks

Medium

All

Greater fuel costs due to

Reduce packaging weight, usage of public transport & shuttle from MRT station

Moderate risk Moderate impact to company

High risk High impact to company

Time horizon for climate risks and oppurtunities

Period

regulations on GHG emissions

Short term : least significant impacts

2024 – 2030

Increased in cost of raw materials

Greater costs of tin, copper, antimony & bismuth

Market risks

Medium

All

Higher production costs

Reduce weight & wall thickness of products, innovative

Moderate risk Moderate impact to company

High risk High impact to company

2030 – 2040

Medium term : most significant impacts

2040 – 2050

Long term : most significant impacts

design of products

Transition Opportunities

Grants/ inexpensive loan for EV

Reduction in Scope 1 GHG emissions

Products & services

Medium

Warehouse distribution

Reduced GHG emissions & costs

Grab the opportunity when available

Moderate opportunity

Medium opportunity

Moderate opportunity

Moderate impact to company

Basis for Physical Analysis

The summary of the risks, opportunities, and mitigation actions is presented in the table below, allowing us to assess the potential impacts of climate-related risks and opportunities. Changes in rainfall patterns and seasonal temperature fluctuations will likely lead to more frequent flooding and droughts, directly impacting our Kuala Lumpur factory.

Physical risks and opportunities for Royal Selangor

Physical risks

Regulation on temperature requirement due to heat wave

Increasing average temperature in specific months

Environment Chronic physical

Medium

All

Health & safety risks from overheating & higher costs from increased air conditioning.

Consideration of extreme weather risks on future factory set up and business expansion

Low risk Low impact to company

Moderate risk Moderate impact to company

The physical analysis as outlined in the Intergovernmental Panel on Climate Change (IPCC) report. The scenarios are derived from the IPCC’s Representative Concentration Pathway (RCP) model. As of June 2024, atmospheric CO 2 levels stand at 427 ppm. For our analysis, we have selected two scenarios: RCP 4.5 and RCP 8.5.

RCP 4.5 represents an intermediate emissions scenario, with CO 2 level at 650 ppm by 2100. This predicts a global temperature rise of 2.0°C between 2046 and 2065, and 3.7°C between 2081 and 2100, with sea levels rising by 0.26 m and 0.47 m during the same periods.

Disruption to transportation and distribution from extreme weather events

Weather events affecting transportation

Environment acute physical

Medium

All

Revenue loss due to delays in shipment

Delayed to FY 2024-2025

Low risk Low impact to company

High risk High impact to company

Moderate risk Moderate impact to company

High risk High impact to company

RCP 8.5 reflects a high-emissions scenario with CO 2 levels exceeding 1000 ppm by 2100. This predicts a global temperature rise of 2.0°C between 2046 and 2065, and 3.7°C between 2081 and 2100, with sea levels rising by 0.30 m and 0.65 m during the same periods.

Risk/ opportunity

Risk description

TCFD category

Time horizon to occur

Affected business

Potential impact on business

Response / action to manage

RCP4.5 scenario 2030-40 Medium term

RCP4.5 scenario 2040-50 Long term

RCP8.5 scenario 2030-40 Medium term

RCP8.5 scenario 2040-50 Long term

Physical opportunities

Growth in energy efficient products

Development of highly efficient green building / air conditioners

Products & services

Medium

Factory & show rooms

Reduced costs in energy expenditure

Replacements & renovations for cooling of buildings

Moderate opportunity

High opportunity significant impact to company

Moderate opportunity

High opportunity significant impact to company

Moderate impact to company

Damage to group assets from

Extreme weather: tropical storms, flooding

Environment Acute Physical

Medium

Factory Show rooms Staff’s housing

Increased costs, revenue losses due to repair. Increase in insurance

Annual site specific risk assessment by operational risks committee

Low risk Low impact to company

Moderate risk Moderate impact to company

Low risk Low impact to company

High risk High impact to company

extreme weather

Reduced needs for expensive net zero emissions equipments

Low opportunity Low impact to company

Moderate opportunity

Low opportunity Low impact to company

Moderate opportunity

Carbon capture & storage technology

Development of an efficient technology

Products & services

Medium

All

Reduced costs in energy expenditure

Extreme weather:

Medium

Supply chain delivery

Disruption to business

Delayed to FY 2025-2026

Low risk Low impact to company

Moderate risk Moderate impact to company

Low risk Low impact to company

Moderate risk Moderate impact to company

Moderate impact to company

sea level rise

Damage to key supply chain

Extreme weather: tropical storms, flooding

Medium

Supply chain delivery

Revenue loss due to disruption to MFG

Delayed to FY 2024-2025

Low risk Low impact to company

Moderate risk Moderate impact to company

Low risk Low impact to company

High risk High impact to company

Page 2-3 Page 4-5 Page 6-7 Page 8-9 Page 10-11 Page 12-13 Page 14-15 Page 16-17 Page 18-19 Page 20-21 Page 22-23 Page 24-25 Page 26-27 Page 28-29 Page 30-31 Page 32-33 Page 34-35 Page 36-37 Page 38-39 Page 40-41 Page 42-43 Page 44-45 Page 46-47 Page 48-49 Page 50-51 Page 52-53 Page 54-55 Page 56

Made with FlippingBook - professional solution for displaying marketing and sales documents online