Suria Capital Holdings Bhd.MYX: SURIA

Sustainability Statement 2024

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SUSTAINABILITY STATEMENT

SUSTAINABILITY MATERIAL MATTERS

SuriaGroup recognises that sustainability materiality issues are essential in shaping our ability to create sustainable longterm value for our stakeholders. Our commitment extends beyond financial performance, as we prioritise the welfare of our workforce, the preservation of the environment and the resilience of the communities we serve.

In 2020, we conducted a comprehensive materiality assessment. By 2023, we updated the list of our material matters and previously prioritised Economic, Environmental, Social and Governance factors. Our target remains to conduct a complete materiality assessment every four (4) years.

During the reporting period, we conducted a sustainability materiality validation exercise, which involved the following methods:

  • Benchmarking common issues reported by industry peers and global industry-specific peers

  • Assessing industry and stakeholder expectations

  • Conducting a limited stakeholder engagement to review relevancy and alignment with the current market landscape

    This process was guided by Bursa Malaysia's Sustainability Reporting Guide (3rdEdition), GRI Standards and SASB Standards. The following table presents the details of the exercise:



    IDENTIFY RELEVANT MATTERS

    PRIORITISE MATERIAL MATTERS

    VALIDATION

    Review of External Sources

    • UN SDGs

    • GRI Standards

    • International Association of Ports and Harbors' World Ports Sustainability Programme

    • Bursa Malaysia's Listing Requirements

    • Malaysian Code of Corporate Governance

    • Relevant Regulations and Law

    • Benchmarking of industry peers

      Review of Internal Sources

    • Sustainability Working Group (SWG)

    • Management

    • Business Strategies

    • Approval by Board

    • The recommendation of sustainability material matters is derived from feedback based on the impact on SuriaGroup

      concerning economic, social and governance.

    • Based on an assessment of feedback, the SWG produced and ranked the 16 key sustainability material matters.

      • Review by the Sustainability Steering Committee.

      • Presented the results to the Risk Management & Governance Committee (RMGC) for endorsement and the Board for approval.

        2024 SURIAGROUP MATERIAL MATTERS

        Based on the exercise, we have introduced six (6) new sustainability material matters. Additionally, for clarity purposes, we have refined and renamed previously reported sustainability material matters which remain relevant.

        GOVERNANCE

        SOCIAL

        ENVIRONMENT

        ECONOMY



        We have identified 16 sustainability material matters, as outlined in the table below.

        • Economic Performance

        • Environmental Stewardship

        • Ecological Impacts

        • Ensuring Water Security

        • Waste Management

        • Climate Change

        • Health and Safety

        • Talent Management and Well-Being

        • Equal Opportunity, Diversity and Inclusion

        • Human Rights

        • Community Engagement

        • Cybersecurity and Digitalisation

        • Supply Chain Management

        • Business Ethics

        • Corporate Governance

        • Port Security

          In the Economic pillar, we have renamed and consolidated all our economic disclosures into the Economic Performance material matter, which now stands as the sole topic under this pillar.

          Importance to Stakeholders

          We have streamlined several sustainability material matters In the Environmental pillar, with the latest addition of Climate Change as a key topic. Two (2) previously identified topics have been renamed: Ensuring Water Security (formerly Water Consumption) and Waste Management (previously Scheduled Waste Management). Our commitment to biodiversity conservation is further affirmed by including Ecological Impacts. At the same time, Reduction in Carbon Footprints now comes under Climate Change. Additionally, Environmental Stewardship replaces the previous Green Initiatives to reflect our broader commitment to environmental responsibility.

          The Health and Safety topic remains unchanged for the Social pillar while Caring for Our Community has been renamed Community Engagement. We have also introduced several new material matters in this pillar, including Equal Opportunity, Diversity & Inclusion and Human Rights. The previous Talent Management material matter was renamed Talent Management & Well-being.

          In the Governance pillar, we have added several new material matters: Business Ethics, Cybersecurity and Digitalisation, Supply Chain Management and Port Security. Furthermore, Effective Governance has been renamed to Corporate Governance, reflecting our steadfast commitment to upholding ethical standards and ensuring transparent, responsible operations.

          2024 SURIAGROUP MATERIALITY MATRIX

          12

          ECONOMY

          1. Economic Performance

          10

          8

          4, 5 & 8

          1-3, 7, 9, 14-16

          6

          6

          4

          2

          0

          2

          4

          6

          8

          10

          12

          Importance on Business

          ENVIRONMENT

          1. Environmental Stewardship

          2. Ecological Impact

          3. Ensuring Water Security

          4. Waste Management

          5. Climate Change

            SOCIAL

          6. Health and Safety

          7. Talent Management and Well-being

          8. Equal Opportunity, Diversity and Inclusion

          9. Human Rights

          10. Community Engagement

          GOVERNANCE

          1. Cybersecurity and Digitalisation

          2. Supply Chain Management

          1. Business Ethics

          2. Corporate Governance

          3. Port Security

          10-13

Apart from ranking the newly introduced sustainability materiality matters, the previous material matters priority and ranking in our materiality matrix remain unchanged and have been retained for 2024. All sustainability material matters underwent a thorough review and deliberation before being approved by the RMGC and endorsed by the Suria Board.

SUSTAINABILITY STATEMENT

SUSTAINABILITY GOVERNANCE STRUCTURE

BOARD OF DIRECTORS

Roles and Responsibility

  • Promotes sustainability in business strategy.

  • Accountability and commitment on sustainability consideration in business.

  • Approves/endorses necessary principals, policies and strategies.

    RISK MANAGEMENT & GOVERNANCE COMMITTEE

    Roles and Responsibility

  • Oversees and recommend for approval any necessary principles, policies and strategies.

    SUSTAINABILITY STEERING COMMITTEE (EXCOM)

    Roles and Responsibility

  • Ensure key decisions on the sustainability strategy and direction are made and aligned to the Group's overall business strategy and goals, e.g. Sustainability Roadmap, to plan and identify activities based on Economic, Environment and Social targets that are measurable and to evaluate viability or returns.

  • Ensure sufficient support and resources are made available to achieve the pre-identified goals.

  • Review and report on progress to the Board.

  • Track progress against pre-defined sustainability strategies, plans and goals.

  • Review all materials prior to meetings, and provide constructive feedback and suggestion in the overall improvement of the sustainability journey.

    SUSTAINABILITY PROJECT MANAGEMENT OFFICE (SECRETARIAT) GROUP CORPORATE AFFAIRS & COMMUNICATION

    Roles and Responsibility

  • A project management team to drive, compile data, track and report on the sustainability efforts and progress.

    SUSTAINABILITY WORKING GROUP (SWG)

    Roles and Responsibility

  • Data collection and analysis.

  • Prepares Sustainability Statement and report.

ECONOMY ENVIRONMENT SOCIAL

RISKS AND OPPORTUNITIES RELATED TO OUR MATERIAL MATTERS

Material Matters Risks Opportunities Related UN SDGs



Economic Performance

Failure to sustain or recover business could result in:

  • Business closure.

  • Reduced revenue.

  • Termination of employment contracts.

  • Inability to recoup investments made to improve business operations.

  • Adverse impact on the environment and surrounding community upon exiting operations.

  • High costs associated with mitigating environmental damage caused by current operations.

  • Unsustainable business, financial, and investment performance.

  • Sustainable business operations and stable income.

  • Continuous income for employees.

  • Preservation of existing job opportunities.

  • Innovation in environmentally friendly operations.

  • Implementation of more efficient and productive systems.

  • Improved operational efficiency and productivity.

  • Strategic business collaborations.

  • Creation of new job opportunities.





Climate Change

  • High cost of investing in carbon removal technology.

  • Development and utilisation of environmentally friendly operations and products.





Environmental Stewardship

  • Operational disruptions due to climate events, physical asset damage, rising resource costs, and regulatory noncompliance.

  • Negative impacts of business operations on ecosystems.

  • Introduction and adoption of innovative solutions to mitigate the effects of climate change.

  • Minimisation of environmental impacts through targeted measures, continuous improvement and contributions toward the United Nations Sustainable Development Goals (UN SDGs).





Ecological Impact

  • Negative impact on marine and coastal ecosystems, leading to environmental degradation.

  • Implementation of eco-friendly initiatives to reduce adverse effects on marine

and coastal ecosystems and the broader environment.





Ensuring Water Security

  • Poor water resource management could lead to water supply depletion.

  • Increased utility costs.

  • Development of more efficient technologies and processes to reduce water dependency and improve water usage efficiency.

  • Cost savings through improved water management.





Waste Management

  • Increased operational costs due to potential waste segregation requirements.

  • Opportunities for new products and services arising from enhanced waste management practices.





Health and Safety

  • Workplace accidents and injuries.

  • Non-compliance with the Occupational Safety and Health Act 1994 (Act 514).

  • Legal penalties and sanctions.

  • A safe and conducive working environment enhances employee productivity.



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