Sustainability Report

STRATEGY, METRICS & TARGETS

Royal Selangor has set a target to reduce 1,000 tCO₂e of greenhouse gas emissions by FY2029–2030 as part of its net-zero carbon initiative. The primary reduction strategy is the adoption of energy-efficient technologies, selected for their cost-effectiveness and ability to generate savings that help finance implementation. Electricity-intensive operations, particularly the hot cast and cold cast divisions, have been identified as key areas for improvement. Air-conditioning systems also account for a significant share of electricity consumption. Upgrading to VRV-based air-conditioning units is projected to lower power usage by 15–42%, depending on operating conditions and system configuration.

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

Additional reductions will be pursued by transitioning to energy sources with lower emission factors, contributing to the decrease of Scope 1 and Scope 2 emissions.

The table below outlines the proposed projects within Royal Selangor’s net-zero roadmap. Several initiatives are currently in the conceptual assessment stage.

Royal Selangor remains committed to transparent disclosure of climate-related risks and opportunities. Anticipating Bursa Malaysia’s requirement for all public-listed companies to adopt TCFD reporting by December 31, 2025, we commenced our Task Force on Climate-related Financial Disclosures (TCFD) reporting in FY2024–2025. Through this report, we provide consistent voluntary disclosures that strengthen investor insight into climate impacts on our business and affirm our dedication to sustainability and sound financial governance. This TCFD report provides an updated overview of how we manage climate-related risks and opportunities. The metrics presented help assess the potential impacts of climate change on our operations and strategic direction. Through these disclosures, we aim to strengthen our risk management practices while enhancing transparency and accountability across the organisation.

Methodology

Period: 2025-2030

Scope 1 ICE to EV

Convert current internal combustion engine (ICE) vehicles i.e. forklifts (17.2 MtCO₂e) and shuttle vans (121.7 MtCO₂e), to electric vehicles (EVs). Royal Selangor has excess solar energy to support these EVs in FY2024–2025, providing 274 MWh or 213 MtCO₂e.

Scope 2 Reduction in electricity

Install voltage stabilisers in the CNC room and F4C3/F4C4 to reduce high TNB voltage (424–5 V) to 411 V, achieving an overall power consumption reduction of 9%.

Install timers to switch off fans and lighting in specific areas at designated times.

Optimise the operating time of electric pots to minimise power wastage when operators are absent.

Scope 2 Higher efficiency (equipment)

Install VRV air conditioners with higher energy efficiency in the planning office and showrooms (pending budget approval), with estimated power savings of 15–42% compared with conventional air conditioners and 18–33% compared with HVAC systems.

Scope 2 Higher efficiency (processes)

Use castable bricks and rockwool with improved insulation properties for casting pots.

Apply thermal insulating coatings inside cast iron casting cauldrons.

Install pot covers over casting pots to reduce heat loss.

Use an oven for selective mould heating to improve energy efficiency.

Implement twin-roller sheet casting using a mouldless concept to minimise mould heating requirements.

Employ thinner moulds with reduced weight to lower heating and cooling energy needs.

Incorporate titanium in mixed-material moulds to strengthen them and reduce mould leakage.

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